diff --git a/src/nvim/api/vim.c b/src/nvim/api/vim.c
index a39ee5d038..21cba96ba7 100644
--- a/src/nvim/api/vim.c
+++ b/src/nvim/api/vim.c
@@ -1283,8 +1283,6 @@ theend:
   api_free_array(args);
   if (cancel || phase == -1 || phase == 3) {  // End of paste-stream.
     draining = false;
-    // XXX: Tickle main loop to ensure cursor is updated.
-    loop_schedule_deferred(&main_loop, event_create(loop_dummy_event, 0));
   }
 
   return !cancel;
diff --git a/src/nvim/lua/executor.c b/src/nvim/lua/executor.c
index 3de1b531e6..f51aa3c6d4 100644
--- a/src/nvim/lua/executor.c
+++ b/src/nvim/lua/executor.c
@@ -269,7 +269,9 @@ static int nlua_state_init(lua_State *const lstate) FUNC_ATTR_NONNULL_ALL
 #endif
 
   // vim
-  if (luaL_dostring(lstate, (char *)&vim_module[0])) {
+  const char *code = (char *)&vim_module[0];
+  if (luaL_loadbuffer(lstate, code, strlen(code), "@vim.lua")
+      || lua_pcall(lstate, 0, LUA_MULTRET, 0)) {
     nlua_error(lstate, _("E5106: Error while creating vim module: %.*s"));
     return 1;
   }
diff --git a/src/nvim/tui/input.c b/src/nvim/tui/input.c
index 1f67e6ce13..c6c9527dd9 100644
--- a/src/nvim/tui/input.c
+++ b/src/nvim/tui/input.c
@@ -106,17 +106,15 @@ static void tinput_wait_enqueue(void **argv)
   RBUFFER_UNTIL_EMPTY(input->key_buffer, buf, len) {
     const String keys = { .data = buf, .size = len };
     if (input->paste) {
-      Error err = ERROR_INIT;
-      // Paste phase: "continue" (unless handler canceled).
-      input->paste = !nvim_paste(keys, true, input->paste, &err)
-        ? 0 : (1 == input->paste ? 2 : input->paste);
+      String copy = copy_string(keys);
+      multiqueue_put(main_loop.events, tinput_paste_event, 3,
+                     copy.data, copy.size, (intptr_t)input->paste);
+      if (input->paste == 1) {
+        // Paste phase: "continue"
+        input->paste = 2;
+      }
       rbuffer_consumed(input->key_buffer, len);
       rbuffer_reset(input->key_buffer);
-      if (ERROR_SET(&err)) {
-        // TODO(justinmk): emsgf() does not display, why?
-        msg_printf_attr(HL_ATTR(HLF_E)|MSG_HIST, "paste: %s", err.msg);
-        api_clear_error(&err);
-      }
     } else {
       const size_t consumed = input_enqueue(keys);
       if (consumed) {
@@ -134,6 +132,33 @@ static void tinput_wait_enqueue(void **argv)
   uv_mutex_unlock(&input->key_buffer_mutex);
 }
 
+static void tinput_paste_event(void **argv)
+{
+  static bool canceled = false;
+
+  String keys = { .data = argv[0], .size = (size_t)argv[1] };
+  intptr_t phase = (intptr_t)argv[2];
+
+  if (phase == -1 || phase == 1) {
+    canceled = false;
+  }
+
+  Error err = ERROR_INIT;
+  if (!canceled) {
+    if (!nvim_paste(keys, true, phase, &err)) {
+      // paste failed, ingore further segments of the same paste
+      canceled = true;
+    }
+  }
+
+  if (ERROR_SET(&err)) {
+    emsgf("paste: %s", err.msg);
+    api_clear_error(&err);
+  }
+
+  api_free_string(keys);
+}
+
 static void tinput_flush(TermInput *input, bool wait_until_empty)
 {
   size_t drain_boundary = wait_until_empty ? 0 : 0xff;
diff --git a/test/functional/terminal/tui_spec.lua b/test/functional/terminal/tui_spec.lua
index 8d8c0e3647..07c91d43e1 100644
--- a/test/functional/terminal/tui_spec.lua
+++ b/test/functional/terminal/tui_spec.lua
@@ -352,15 +352,23 @@ describe('TUI', function()
     ]]}
     -- Start pasting...
     feed_data('\027[200~line 1\nline 2\n')
-    expect_child_buf_lines({'foo',''})
-    screen:expect{any='paste: Error executing lua'}
+    screen:expect{grid=[[
+      foo                                               |
+                                                        |
+      {5:                                                  }|
+      {8:paste: Error executing lua: [string "<nvim>"]:2: f}|
+      {8:ake fail}                                          |
+      {10:Press ENTER or type command to continue}{1: }          |
+      {3:-- TERMINAL --}                                    |
+    ]]}
     -- Remaining chunks are discarded after vim.paste() failure.
     feed_data('line 3\nline 4\n')
     feed_data('line 5\nline 6\n')
     feed_data('line 7\nline 8\n')
     -- Stop paste.
     feed_data('\027[201~')
-    feed_data('\n')  -- <Enter>
+    feed_data('\n')  -- <CR>
+    expect_child_buf_lines({'foo',''})
     --Dot-repeat/redo is not modified by failed paste.
     feed_data('.')
     screen:expect{grid=[[
@@ -388,7 +396,7 @@ describe('TUI', function()
       vim.paste = _G.save_paste_fn
     ]], {})
     feed_data('\027[200~line A\nline B\n\027[201~')
-    feed_data('\n')  -- <Enter>
+    feed_data('\n')  -- <CR>
     screen:expect{grid=[[
       foo                                               |
       typed input...line A                              |
@@ -414,7 +422,15 @@ describe('TUI', function()
   it("paste: 'nomodifiable' buffer", function()
     child_session:request('nvim_command', 'set nomodifiable')
     feed_data('\027[200~fail 1\nfail 2\n\027[201~')
-    screen:expect{any='Vim:E21'}
+    screen:expect{grid=[[
+                                                        |
+      {4:~                                                 }|
+      {5:                                                  }|
+      {8:paste: Error executing lua: vim.lua:194: Vim:E21: }|
+      {8:Cannot make changes, 'modifiable' is off}          |
+      {10:Press ENTER or type command to continue}{1: }          |
+      {3:-- TERMINAL --}                                    |
+    ]]}
     feed_data('\n')  -- <Enter>
     child_session:request('nvim_command', 'set modifiable')
     feed_data('\027[200~success 1\nsuccess 2\n\027[201~')