diff --git a/main-command/src/main/scala/sbt/BasicCommands.scala b/main-command/src/main/scala/sbt/BasicCommands.scala
index 318c9b763..4be061c7e 100644
--- a/main-command/src/main/scala/sbt/BasicCommands.scala
+++ b/main-command/src/main/scala/sbt/BasicCommands.scala
@@ -88,13 +88,17 @@ object BasicCommands {
   def templateCommand = Command.make(TemplateCommand, templateBrief, templateDetailed)(templateCommandParser)
   def templateCommandParser(state: State) =
     {
-      val p = token(Space).* ~> repsep(StringBasic, token(Space))
+      val p = (token(Space) ~> repsep(StringBasic, token(Space))) | (token(EOF) map { case _ => Nil })
       val trs = (state get templateResolvers) match {
         case Some(trs) => trs.toList
         case None      => Nil
       }
       applyEffect(p)({ inputArg =>
-        val arguments = inputArg.toList ++ state.remainingCommands
+        val arguments = inputArg.toList ++
+          (state.remainingCommands.toList match {
+            case "shell" :: Nil => Nil
+            case xs             => xs
+          })
         trs find { tr =>
           tr.isDefined(arguments.toArray)
         } match {