diff --git a/src/box/lua/console.lua b/src/box/lua/console.lua
index 69d9d992109d..bd8d331fbc16 100644
--- a/src/box/lua/console.lua
+++ b/src/box/lua/console.lua
@@ -606,7 +606,10 @@ local function local_read(self)
         if buf:sub(1, 1) == '\\' then
             break
         end
-        if delim == "" then
+        if delim == "" and line:endswith("\\") then
+            buf = buf:sub(1, -2)
+            -- Continue reading.
+        elseif delim == "" then
             local lang = box.session.language
             if not lang or lang == 'lua' then
                 -- stop once a complete Lua statement is entered
@@ -642,9 +645,12 @@ local function local_print(self, output)
 end
 
 --
--- Read command from connected client console.listen()
+-- Read a line or a chunk from connected client console.listen().
 --
-local function client_read(self)
+-- The value is returned without delimiter (if any) and trailing
+-- newline character.
+--
+local function client_read_line(self)
     --
     -- Byte sequences that come over the network and come from
     -- the local client console may have a different terminal
@@ -665,6 +671,30 @@ local function client_read(self)
     return buf:sub(1, -#self.delimiter-2)
 end
 
+--
+-- Read a command from connected client console.listen().
+--
+local function client_read(self)
+    local buf = ""
+    while true do
+        local line = client_read_line(self)
+        if line == nil then
+            -- EOF or error.
+            --
+            -- Note: Even if `buf` is not empty, skip unfinished
+            -- command.
+            return nil
+        end
+        buf = buf .. line
+        if self.delimiter == "" and line:endswith("\\") then
+            buf = buf:sub(1, -2)
+        else
+            break
+        end
+    end
+    return buf
+end
+
 --
 -- Print result to connected client from console.listen()
 --
diff --git a/test/CMakeLists.txt b/test/CMakeLists.txt
index 729baa93889a..5d030e3e2559 100644
--- a/test/CMakeLists.txt
+++ b/test/CMakeLists.txt
@@ -68,6 +68,14 @@ add_subdirectory(box-tap)
 add_subdirectory(box-luatest)
 add_subdirectory(sql-tap)
 add_subdirectory(sql-luatest)
+# Build a library with isatty() that always returns 1.
+#
+# It is needed to test the local tarantool console. Consider an
+# example:
+#
+# echo 42 | LD_PRELOAD=test/libisatty.so ./src/tarantool
+add_library(isatty SHARED ./app-tap/isatty.c)
+
 if(ENABLE_FUZZER)
     add_subdirectory(fuzz)
 endif()
diff --git a/test/app-luatest/gh_4317_console_backslash_test.lua b/test/app-luatest/gh_4317_console_backslash_test.lua
new file mode 100644
index 000000000000..cea6586fa334
--- /dev/null
+++ b/test/app-luatest/gh_4317_console_backslash_test.lua
@@ -0,0 +1,57 @@
+local t = require('luatest')
+local g = t.group()
+local console = require('console')
+local socket = require('socket')
+local tap = require('tap')
+local fio = require('fio')
+local log = require('log')
+
+local result_str =  [[tarantool> local a = 0 \
+         > for i = 1, 10 do
+         > a = a + i
+         > end \
+         > print(a)
+55
+---
+...
+
+tarantool> ]]
+
+g.test_local_console = function()
+    t.skip_if(jit.os == 'OSX', "LD_PRELOAD doesn't work on OSX")
+
+    -- libisatty.so provides isatty() that always returns 1.
+    local binary = arg[-1]
+    local isatty_lib_path = binary:gsub('tarantool$', '../test/libisatty.so')
+    assert(isatty_lib_path:match('libisatty.so$'), 'Failed to locate libisatty.so')
+    local tarantool_command = "local a = 0 \\\nfor i = 1, 10 do\na = a + i\nend \\\nprint(a)"
+
+    local cmd = ([[printf '%s\n' | LD_PRELOAD='%s' tarantool 2>/dev/null]]):format(tarantool_command, isatty_lib_path)
+    local fh = io.popen(cmd, 'r')
+
+    -- Readline on CentOS 7 produces \e[?1034h escape sequence before tarantool> prompt, remove it.
+    local result = fh:read('*a'):gsub('\x1b%[%?1034h', '')
+
+    fh:close()
+    t.assert_equals(result, result_str)
+end
+
+g.test_remote_console = function()
+    -- Suppress console log messages
+    log.level(4)
+    local CONSOLE_SOCKET = fio.pathjoin(fio.cwd(), 'tarantool-test-console.sock')
+    local IPROTO_SOCKET  = fio.pathjoin(fio.cwd(), 'tarantool-test-iproto.sock')
+    local EOL = "\n...\n"
+    local server = console.listen(CONSOLE_SOCKET)
+    local client = socket.tcp_connect("unix/", CONSOLE_SOCKET)
+    local cmd = 'local a = 0 \\\nfor i = 1, 10 do\\\n a = a + i \\\n end \\\n print(a)'
+
+    client = socket.tcp_connect("unix/", CONSOLE_SOCKET)
+    client:read(128)
+    client:write(('%s\n'):format(cmd))
+    local result = client:read(EOL)
+    t.assert_not_str_contains(result, 'error')
+    client:close()
+    os.remove(CONSOLE_SOCKET)
+    os.remove(IPROTO_SOCKET)
+end
diff --git a/test/app-tap/isatty.c b/test/app-tap/isatty.c
new file mode 100644
index 000000000000..f716d2903739
--- /dev/null
+++ b/test/app-tap/isatty.c
@@ -0,0 +1,5 @@
+int
+isatty(int fd)
+{
+	return 1;
+}