diff --git a/coverage/cmdline.py b/coverage/cmdline.py
index d5f8e6f31..4c8508013 100644
--- a/coverage/cmdline.py
+++ b/coverage/cmdline.py
@@ -731,6 +731,8 @@ def command_line(self, argv):
             # value, so we can get fail_under from the config file.
             if options.fail_under is not None:
                 self.coverage.set_option("report:fail_under", options.fail_under)
+            if options.precision is not None:
+                self.coverage.set_option("report:precision", options.precision)
 
             fail_under = self.coverage.get_option("report:fail_under")
             precision = self.coverage.get_option("report:precision")
diff --git a/tests/test_cmdline.py b/tests/test_cmdline.py
index a10bdc5f0..d4fe830a4 100644
--- a/tests/test_cmdline.py
+++ b/tests/test_cmdline.py
@@ -1136,6 +1136,9 @@ def lcov_report(self, *args_unused, **kwargs_unused):
     ((20, 30, 40, 50, 60), 61, "lcov", 2),
     # Command-line overrides configuration.
     ((20, 30, 40, 50, 60), 19, "report --fail-under=21", 2),
+    # Precision defined
+    ((20, 30, 40, 50, 60), None, "report --fail-under=20.1 --precision=1", 2),
+    ((20, 30, 40, 50, 60), None, "report --fail-under=19.9 --precision=1", 0),
 ])
 def test_fail_under(results, fail_under, cmd, ret):
     cov = CoverageReportingFake(*results)