diff --git a/src/main/java/picocli/AutoComplete.java b/src/main/java/picocli/AutoComplete.java
index a956cad68..c80dadaac 100644
--- a/src/main/java/picocli/AutoComplete.java
+++ b/src/main/java/picocli/AutoComplete.java
@@ -296,7 +296,7 @@ private static class CommandDescriptor {
         final String parentWithoutTopLevelCommand;
         final String commandName;
         final CommandLine commandLine;
-        
+
         CommandDescriptor(String functionName, String parentWithoutTopLevelCommand, String commandName, CommandLine commandLine) {
             this.functionName = functionName;
             this.parentWithoutTopLevelCommand = parentWithoutTopLevelCommand;
@@ -719,6 +719,7 @@ private static String generatePositionalParamsCases(List<PositionalParamSpec> po
                 buff.append(format("%s      positionals=$( compgen -W \"$%s_pos_param_args\" -- \"%s\" )\n", indent, paramName, currWord));
             } else if (type.equals(File.class) || "java.nio.file.Path".equals(type.getName())) {
                 buff.append(format("%s    %s (( currIndex >= %d && currIndex <= %d )); then\n", indent, ifOrElif, min, max));
+                buff.append(format("%s      local IFS=$'\\n'\n", indent));
                 buff.append(format("%s      compopt -o filenames\n", indent));
                 buff.append(format("%s      positionals=$( compgen -f -- \"%s\" ) # files\n", indent, currWord));
             } else if (type.equals(InetAddress.class)) {
@@ -763,6 +764,7 @@ private static String generateOptionsCases(List<OptionSpec> argOptionFields, Str
                 buff.append(format("%s      ;;\n", indent));
             } else if (type.equals(File.class) || "java.nio.file.Path".equals(type.getName())) {
                 buff.append(format("%s    %s)\n", indent, concat("|", option.names()))); // "    -f|--file)\n"
+                buff.append(format("%s      local IFS=$'\\n'\n", indent));
                 buff.append(format("%s      compopt -o filenames\n", indent));
                 buff.append(format("%s      COMPREPLY=( $( compgen -f -- \"%s\" ) ) # files\n", indent, currWord));
                 buff.append(format("%s      return $?\n", indent));
diff --git a/src/test/java/picocli/AutoCompleteTest.java b/src/test/java/picocli/AutoCompleteTest.java
index a50718f87..f47eb3279 100644
--- a/src/test/java/picocli/AutoCompleteTest.java
+++ b/src/test/java/picocli/AutoCompleteTest.java
@@ -779,6 +779,7 @@ private String expectedCompletionScriptForAutoCompleteApp() {
                 "      return\n" +
                 "      ;;\n" +
                 "    -o|--completionScript)\n" +
+                "      local IFS=$'\\n'\n" +
                 "      compopt -o filenames\n" +
                 "      COMPREPLY=( $( compgen -f -- \"${curr_word}\" ) ) # files\n" +
                 "      return $?\n" +
diff --git a/src/test/resources/picocompletion-demo-help_completion.bash b/src/test/resources/picocompletion-demo-help_completion.bash
index a362c97ca..52ee49dc1 100644
--- a/src/test/resources/picocompletion-demo-help_completion.bash
+++ b/src/test/resources/picocompletion-demo-help_completion.bash
@@ -257,6 +257,7 @@ function _picocli_picocompletion-demo-help_sub2() {
       return
       ;;
     --directory|-d)
+      local IFS=$'\n'
       compopt -o filenames
       COMPREPLY=( $( compgen -f -- "${curr_word}" ) ) # files
       return $?
@@ -480,6 +481,7 @@ function _picocli_picocompletion-demo-help_sub2_subsub3() {
     if (( currIndex >= 0 && currIndex <= 0 )); then
       positionals=$( compgen -W "$cands_pos_param_args" -- "${curr_word}" )
     elif (( currIndex >= 1 && currIndex <= 2 )); then
+      local IFS=$'\n'
       compopt -o filenames
       positionals=$( compgen -f -- "${curr_word}" ) # files
     elif (( currIndex >= 3 && currIndex <= 2147483647 )); then
diff --git a/src/test/resources/picocompletion-demo_completion.bash b/src/test/resources/picocompletion-demo_completion.bash
index a6db9ffa9..a66ca6bd4 100644
--- a/src/test/resources/picocompletion-demo_completion.bash
+++ b/src/test/resources/picocompletion-demo_completion.bash
@@ -255,6 +255,7 @@ function _picocli_picocompletion-demo_sub2() {
       return
       ;;
     --directory|-d)
+      local IFS=$'\n'
       compopt -o filenames
       COMPREPLY=( $( compgen -f -- "${curr_word}" ) ) # files
       return $?
@@ -461,6 +462,7 @@ function _picocli_picocompletion-demo_sub2_subsub3() {
     if (( currIndex >= 0 && currIndex <= 0 )); then
       positionals=$( compgen -W "$cands_pos_param_args" -- "${curr_word}" )
     elif (( currIndex >= 1 && currIndex <= 2 )); then
+      local IFS=$'\n'
       compopt -o filenames
       positionals=$( compgen -f -- "${curr_word}" ) # files
     elif (( currIndex >= 3 && currIndex <= 2147483647 )); then