diff --git a/core/quill.js b/core/quill.js
index ceaaa8a1a2..47716d116f 100644
--- a/core/quill.js
+++ b/core/quill.js
@@ -258,14 +258,16 @@ class Quill {
 
   setContents(delta, source = Emitter.sources.API) {
     return modify.call(this, () => {
-      delta = new Delta(delta).slice();
-      let lastOp = delta.ops[delta.ops.length - 1];
-      // Quill contents must always end with newline
-      if (lastOp == null || lastOp.insert[lastOp.insert.length-1] !== '\n') {
-        delta.insert('\n');
+      let length = this.getLength();
+      let deleted = this.editor.deleteText(0, length);
+      let applied = this.editor.applyDelta(delta);
+      let lastOp = applied.ops[applied.ops.length - 1];
+      if (lastOp != null && lastOp.insert[lastOp.insert.length-1] === '\n') {
+        this.editor.deleteText(this.getLength() - 1, 1);
+        applied.delete(1);
       }
-      delta.delete(this.getLength());
-      return this.editor.applyDelta(delta);
+      let ret = deleted.compose(applied);
+      return ret;
     }, source);
   }
 
diff --git a/docs/_includes/standalone/snow.html b/docs/_includes/standalone/snow.html
index ca04b04800..eec8961312 100644
--- a/docs/_includes/standalone/snow.html
+++ b/docs/_includes/standalone/snow.html
@@ -22,8 +22,7 @@
 <script type="text/javascript">
   var quill = new Quill('#snow-container', {
     placeholder: 'Compose an epic...',
-    theme: 'snow',
-    debug: true
+    theme: 'snow'
   });
 </script>
 <!-- script -->
\ No newline at end of file
diff --git a/test/unit/core/quill.js b/test/unit/core/quill.js
index b5dd2d021b..234c9d6446 100644
--- a/test/unit/core/quill.js
+++ b/test/unit/core/quill.js
@@ -257,6 +257,14 @@ describe('Quill', function() {
       quill.setContents(new Delta().insert('0123'));
       expect(quill.getContents()).toEqual(new Delta().insert('0123\n'));
     });
+
+    it('inline formatting', function() {
+      let quill = this.initialize(Quill, '<p><strong>Bold</strong></p><p>Not bold</p>');
+      let contents = quill.getContents();
+      let delta = quill.setContents(contents);
+      expect(quill.getContents()).toEqual(contents);
+      expect(delta).toEqual(contents.delete(contents.length()));
+    });
   });
 
   describe('setText()', function() {