diff --git a/CHANGES.markdown b/CHANGES.markdown
--- a/CHANGES.markdown
+++ b/CHANGES.markdown
@@ -1,4 +1,7 @@
-Changes in 0.25.0.1
+Changes in 0.25.0.2
+  - Fix a bug with `--no-magic` handling which was introduced with `0.25.0.1`.
+
+Changes in 0.25.0.1 (deprecated)
   - Discard `--interactive` from response files.  This fixes a critical bug
     introduced with `0.25.0` (see #487).
 
diff --git a/doctest.cabal b/doctest.cabal
--- a/doctest.cabal
+++ b/doctest.cabal
@@ -5,7 +5,7 @@
 -- see: https://github.com/sol/hpack
 
 name:           doctest
-version:        0.25.0.1
+version:        0.25.0.2
 synopsis:       Test interactive Haskell examples
 description:    `doctest` is a tool that checks [examples](https://www.haskell.org/haddock/doc/html/ch03s08.html#idm140354810775744)
                 and [properties](https://www.haskell.org/haddock/doc/html/ch03s08.html#idm140354810771856)
diff --git a/src/Options.hs b/src/Options.hs
--- a/src/Options.hs
+++ b/src/Options.hs
@@ -122,11 +122,13 @@
   | on "--info" = Output info
   | on interactiveFlag = runRunOptionsParser (discardInteractiveFlag args) defaultRun $ do
       commonRunOptions
+      parseFlag "--no-magic" (setMagicMode False)
   | on `any` nonInteractiveGhcOptions = ProxyToGhc args
   | on "--help" = Output usage
   | on "--version" = Output versionInfo
   | any isResponseFile args = runRunOptionsParser args defaultRun $ do
       commonRunOptions
+      parseFlag "--no-magic" (setMagicMode False)
   | otherwise = runRunOptionsParser args defaultRun {runMagicMode = True} $ do
       commonRunOptions
       parseFlag "--no-magic" (setMagicMode False)