--- a/networking/telnetd.c
+++ b/networking/telnetd.c
@@ -313,6 +313,7 @@ make_new_session(
 
 	/* Restore default signal handling ASAP */
 	bb_signals((1 << SIGCHLD) + (1 << SIGPIPE), SIG_DFL);
+	signal(SIGINT, SIG_DFL);
 
 	if (ENABLE_FEATURE_UTMP) {
 		len_and_sockaddr *lsa = get_peer_lsa(sock);