diff --git a/src/calibre/ebooks/txt/input.py b/src/calibre/ebooks/txt/input.py
index 3781a7f74a..493fdf3967 100644
--- a/src/calibre/ebooks/txt/input.py
+++ b/src/calibre/ebooks/txt/input.py
@@ -6,7 +6,7 @@ __docformat__ = 'restructuredtext en'
 
 import os
 
-from calibre.customize.conversion import InputFormatPlugin
+from calibre.customize.conversion import InputFormatPlugin, OptionRecommendation
 from calibre.ebooks.txt.processor import txt_to_markdown
 
 class TXTInput(InputFormatPlugin):
@@ -16,6 +16,13 @@ class TXTInput(InputFormatPlugin):
     description = 'Convert TXT files to HTML'
     file_types  = set(['txt'])
 
+    options = set([
+        OptionRecommendation(name='single_line_paras', recommended_value=False,
+            help=_('Normally calibre treats blank lines as paragraph markers. '
+                'With this option it will assume that every line represents '
+                'a paragraph instead.')),
+    ])
+
     def convert(self, stream, options, file_ext, log,
                 accelerators):
         ienc = stream.encoding if stream.encoding else 'utf-8'
@@ -24,6 +31,11 @@ class TXTInput(InputFormatPlugin):
         log.debug('Reading text from file...')
         txt = stream.read().decode(ienc, 'replace')
 
+        if options.single_line_paras:
+            txt = txt.replace('\r\n', '\n')
+            txt = txt.replace('\r', '\n')
+            txt = txt.replace('\n', '\n\n')
+
         log.debug('Running text though markdown conversion...')
         try:
             html = txt_to_markdown(txt)
diff --git a/src/calibre/gui2/convert/txt_input.py b/src/calibre/gui2/convert/txt_input.py
new file mode 100644
index 0000000000..71dbbe1fe2
--- /dev/null
+++ b/src/calibre/gui2/convert/txt_input.py
@@ -0,0 +1,19 @@
+# -*- coding: utf-8 -*-
+
+__license__ = 'GPL 3'
+__copyright__ = '2009, John Schember <john@nachtimwald.com>'
+__docformat__ = 'restructuredtext en'
+
+from calibre.gui2.convert.txt_input_ui import Ui_Form
+from calibre.gui2.convert import Widget
+
+class PluginWidget(Widget, Ui_Form):
+
+    TITLE = _('TXT Input')
+    HELP = _('Options specific to')+' TXT '+_('input')
+
+    def __init__(self, parent, get_option, get_help, db=None, book_id=None):
+        Widget.__init__(self, parent, 'txt_input',
+            ['single_line_paras'])
+        self.db, self.book_id = db, book_id
+        self.initialize_options(get_option, get_help, db, book_id)
diff --git a/src/calibre/gui2/convert/txt_input.ui b/src/calibre/gui2/convert/txt_input.ui
new file mode 100644
index 0000000000..191e749833
--- /dev/null
+++ b/src/calibre/gui2/convert/txt_input.ui
@@ -0,0 +1,41 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<ui version="4.0">
+ <class>Form</class>
+ <widget class="QWidget" name="Form">
+  <property name="geometry">
+   <rect>
+    <x>0</x>
+    <y>0</y>
+    <width>400</width>
+    <height>300</height>
+   </rect>
+  </property>
+  <property name="windowTitle">
+   <string>Form</string>
+  </property>
+  <layout class="QGridLayout" name="gridLayout">
+   <item row="1" column="0">
+    <spacer name="verticalSpacer">
+     <property name="orientation">
+      <enum>Qt::Vertical</enum>
+     </property>
+     <property name="sizeHint" stdset="0">
+      <size>
+       <width>20</width>
+       <height>213</height>
+      </size>
+     </property>
+    </spacer>
+   </item>
+   <item row="0" column="0">
+    <widget class="QCheckBox" name="opt_single_line_paras">
+     <property name="text">
+      <string>Treat each &amp;line as a paragraph</string>
+     </property>
+    </widget>
+   </item>
+  </layout>
+ </widget>
+ <resources/>
+ <connections/>
+</ui>