diff --git a/LUFA/DoxygenPages/ChangeLog.txt b/LUFA/DoxygenPages/ChangeLog.txt
index c1dcef9558..2994270919 100644
--- a/LUFA/DoxygenPages/ChangeLog.txt
+++ b/LUFA/DoxygenPages/ChangeLog.txt
@@ -13,6 +13,8 @@
   *     when a pipe configuration failed (thanks to Helge Suess)
   *   - Fixed incorrect LED driver definitions for the Arduino Leonardo board (thanks to Zoltán Szőke)
   *   - Fixed incorrect XMEGA DFLL reference frequency (thanks to Martin Aakerberg)
+  *  - Library Applications:
+  *   - Fixed spurious 0xFE USART byte sent in the USBtoSerial project when the baud rate is changed (thanks to Carl Kjeldsen)
   *
   *  \section Sec_ChangeLog140302 Version 140302
   *  <b>New:</b>
diff --git a/Projects/USBtoSerial/USBtoSerial.c b/Projects/USBtoSerial/USBtoSerial.c
index 758e30ca68..1c791d95d3 100644
--- a/Projects/USBtoSerial/USBtoSerial.c
+++ b/Projects/USBtoSerial/USBtoSerial.c
@@ -232,6 +232,9 @@ void EVENT_CDC_Device_LineEncodingChanged(USB_ClassInfo_CDC_Device_t* const CDCI
 			break;
 	}
 
+	/* Keep the TX line held high (idle) while the USART is reconfigured */
+	PORTD |= (1 << 3);
+
 	/* Must turn off USART before reconfiguring it, otherwise incorrect operation may occur */
 	UCSR1B = 0;
 	UCSR1A = 0;
@@ -244,5 +247,8 @@ void EVENT_CDC_Device_LineEncodingChanged(USB_ClassInfo_CDC_Device_t* const CDCI
 	UCSR1C = ConfigMask;
 	UCSR1A = (1 << U2X1);
 	UCSR1B = ((1 << RXCIE1) | (1 << TXEN1) | (1 << RXEN1));
+
+	/* Release the TX line after the USART has been reconfigured */
+	PORTD &= ~(1 << 3);
 }