diff --git a/bin/test_mousemodes.js b/bin/test_mousemodes.js
index 6a547ab1..b73cd455 100644
--- a/bin/test_mousemodes.js
+++ b/bin/test_mousemodes.js
@@ -123,19 +123,19 @@ const ENC = {
       row: report[5] - 32
     })
   ],
-  'UTF8' : [
-    '\x1b[?1005h',
-    // format: CSI M <button + 32> <row + 32> <col + 32>
-    //         + utf8 encoding on row/col
-    report => {
-      const sReport = report.toString(); // decode with utf8
-      return {
-        state: evalButtonCode(sReport.charCodeAt(3) - 32),
-        col: sReport.charCodeAt(4) - 32,
-        row: sReport.charCodeAt(5) - 32
-      };
-    }
-  ],
+  // 'UTF8' : [
+  //   '\x1b[?1005h',
+  //   // format: CSI M <button + 32> <row + 32> <col + 32>
+  //   //         + utf8 encoding on row/col
+  //   report => {
+  //     const sReport = report.toString(); // decode with utf8
+  //     return {
+  //       state: evalButtonCode(sReport.charCodeAt(3) - 32),
+  //       col: sReport.charCodeAt(4) - 32,
+  //       row: sReport.charCodeAt(5) - 32
+  //     };
+  //   }
+  // ],
   'SGR'  : [
     '\x1b[?1006h',
     // format: CSI < Pbutton ; Prow ; Pcol M
@@ -150,14 +150,28 @@ const ENC = {
       return {state, row, col};
     }
   ],
-  'URXVT': [
-    '\x1b[?1015h',
-    // format: CSI <button + 32> ; Prow ; Pcol M 
+  // 'URXVT': [
+  //   '\x1b[?1015h',
+  //   // format: CSI <button + 32> ; Prow ; Pcol M 
+  //   report => {
+  //     // strip off introducer + M
+  //     const sReport = report.toString().slice(2, -1);
+  //     const [button, col, row] = sReport.split(';');
+  //     return {state: evalButtonCode(button - 32), row, col};
+  //   }
+  // ],
+  'SGR_PIXELS'  : [
+    '\x1b[?1016h',
+    // format: CSI < Pbutton ; Prow ; Pcol M
     report => {
       // strip off introducer + M
-      const sReport = report.toString().slice(2, -1);
-      const [button, col, row] = sReport.split(';');
-      return {state: evalButtonCode(button - 32), row, col};
+      const sReport = report.toString().slice(3, -1);
+      const [buttonCode, col, row] = sReport.split(';');
+      const state = evalButtonCode(buttonCode);
+      if (report[report.length - 1] === 'm'.charCodeAt(0)) {
+        state.action = 'release';
+      }
+      return {state, row, col};
     }
   ]
 }
@@ -205,7 +219,9 @@ function applyReportData(data) {
   let {state, row, col} = ENC[Object.keys(ENC)[activeEnc]][1](data);
   console.log('\x1b[2KButton:', state.button, 'Action:', state.action, 'Modifier:', state.modifier, 'row:', row, 'col:', col);
   // apply to cursor position
-  process.stdout.write(`\x1b[${row};${col}H`);
+  if (Object.keys(ENC)[activeEnc] !== 'SGR_PIXELS') {
+    process.stdout.write(`\x1b[${row};${col}H`);
+  }
 }
 
 printMenu();
diff --git a/src/browser/Terminal.ts b/src/browser/Terminal.ts
index e45d2355..d3e62ac9 100644
--- a/src/browser/Terminal.ts
+++ b/src/browser/Terminal.ts
@@ -645,7 +645,7 @@ export class Terminal extends CoreTerminal implements ITerminal {
     // send event to CoreMouseService
     function sendEvent(ev: MouseEvent | WheelEvent): boolean {
       // get mouse coordinates
-      const pos = self._mouseService!.getRawByteCoords(ev, self.screenElement!, self.cols, self.rows);
+      const pos = self._mouseService!.getMouseReportCoords(ev, self.screenElement!, self.cols, self.rows);
       if (!pos) {
         return false;
       }
@@ -699,8 +699,10 @@ export class Terminal extends CoreTerminal implements ITerminal {
       }
 
       return self.coreMouseService.triggerMouseEvent({
-        col: pos.x - 33, // FIXME: why -33 here?
-        row: pos.y - 33,
+        col: pos.col,
+        row: pos.row,
+        x: pos.x,
+        y: pos.y,
         button: but,
         action,
         ctrl: ev.ctrlKey,
diff --git a/src/browser/TestUtils.test.ts b/src/browser/TestUtils.test.ts
index a3b5fdb0..c99b0255 100644
--- a/src/browser/TestUtils.test.ts
+++ b/src/browser/TestUtils.test.ts
@@ -359,7 +359,7 @@ export class MockMouseService implements IMouseService {
     throw new Error('Not implemented');
   }
 
-  public getRawByteCoords(event: MouseEvent, element: HTMLElement, colCount: number, rowCount: number): { x: number, y: number } | undefined {
+  public getMouseReportCoords(event: MouseEvent, element: HTMLElement, colCount: number, rowCount: number): { col: number, row: number, x: number, y: number } | undefined {
     throw new Error('Not implemented');
   }
 }
diff --git a/src/browser/input/Mouse.ts b/src/browser/input/Mouse.ts
index 6c377edb..c34e8370 100644
--- a/src/browser/input/Mouse.ts
+++ b/src/browser/input/Mouse.ts
@@ -48,17 +48,3 @@ export function getCoords(window: Pick<Window, 'getComputedStyle'>, event: {clie
 
   return coords;
 }
-
-/**
- * Gets coordinates within the terminal for a particular mouse event, wrapping
- * them to the bounds of the terminal and adding 32 to both the x and y values
- * as expected by xterm.
- */
-export function getRawByteCoords(coords: [number, number] | undefined): { x: number, y: number } | undefined {
-  if (!coords) {
-    return undefined;
-  }
-
-  // xterm sends raw bytes and starts at 32 (SP) for each.
-  return { x: coords[0] + 32, y: coords[1] + 32 };
-}
diff --git a/src/browser/services/MouseService.ts b/src/browser/services/MouseService.ts
index 69123ba3..951272a3 100644
--- a/src/browser/services/MouseService.ts
+++ b/src/browser/services/MouseService.ts
@@ -4,7 +4,7 @@
  */
 
 import { ICharSizeService, IRenderService, IMouseService } from './Services';
-import { getCoords, getRawByteCoords } from 'browser/input/Mouse';
+import { getCoords, getCoordsRelativeToElement } from 'browser/input/Mouse';
 
 export class MouseService implements IMouseService {
   public serviceBrand: undefined;
@@ -29,8 +29,31 @@ export class MouseService implements IMouseService {
     );
   }
 
-  public getRawByteCoords(event: MouseEvent, element: HTMLElement, colCount: number, rowCount: number): { x: number, y: number } | undefined {
-    const coords = this.getCoords(event, element, colCount, rowCount);
-    return getRawByteCoords(coords);
+  public getMouseReportCoords(event: MouseEvent, element: HTMLElement, colCount: number, rowCount: number): { col: number, row: number, x: number, y: number } | undefined {
+    const pixelCoords = getCoordsRelativeToElement(window, event, element);
+
+    // due to rounding issue in zoom state pixel values might be negative at the edges
+    // simply ignore the event effectively narrowing the active mouse area
+    if (pixelCoords[0] < 0 || pixelCoords[1] < 0) {
+      return undefined;
+    }
+    // also ignore if we exceed real pixel area
+    if (pixelCoords[0] >= this._renderService.dimensions.canvasWidth || pixelCoords[1] >= this._renderService.dimensions.canvasHeight) {
+      return undefined;
+    }
+
+    pixelCoords[0] = Math.round(pixelCoords[0]);
+    pixelCoords[1] = Math.round(pixelCoords[1]);
+
+    const cellCoords = this.getCoords(event, element, colCount, rowCount);
+    if (!cellCoords) {
+      return undefined;
+    }
+    return {
+      col: cellCoords[0] - 1,
+      row: cellCoords[1] - 1,
+      x: pixelCoords[0],
+      y: pixelCoords[1]
+    };
   }
 }
diff --git a/src/browser/services/Services.ts b/src/browser/services/Services.ts
index 165d0c7e..039f4672 100644
--- a/src/browser/services/Services.ts
+++ b/src/browser/services/Services.ts
@@ -35,7 +35,7 @@ export interface IMouseService {
   serviceBrand: undefined;
 
   getCoords(event: {clientX: number, clientY: number}, element: HTMLElement, colCount: number, rowCount: number, isSelection?: boolean): [number, number] | undefined;
-  getRawByteCoords(event: MouseEvent, element: HTMLElement, colCount: number, rowCount: number): { x: number, y: number } | undefined;
+  getMouseReportCoords(event: MouseEvent, element: HTMLElement, colCount: number, rowCount: number): { col: number, row: number, x: number, y: number } | undefined;
 }
 
 export const IRenderService = createDecorator<IRenderService>('RenderService');
diff --git a/src/common/InputHandler.ts b/src/common/InputHandler.ts
index 5a0725a4..51ebd6c0 100644
--- a/src/common/InputHandler.ts
+++ b/src/common/InputHandler.ts
@@ -1989,6 +1989,9 @@ export class InputHandler extends Disposable implements IInputHandler {
         case 1015: // urxvt ext mode mouse - removed in #2507
           this._logService.debug('DECSET 1015 not supported (see #2507)');
           break;
+        case 1016: // sgr pixels mode mouse
+          this._coreMouseService.activeEncoding = 'SGR_PIXELS';
+          break;
         case 25: // show cursor
           this._coreService.isCursorHidden = false;
           break;
@@ -2210,6 +2213,9 @@ export class InputHandler extends Disposable implements IInputHandler {
         case 1015: // urxvt ext mode mouse - removed in #2507
           this._logService.debug('DECRST 1015 not supported (see #2507)');
           break;
+        case 1006: // sgr pixels mode mouse
+          this._coreMouseService.activeEncoding = 'DEFAULT';
+          break;
         case 25: // hide cursor
           this._coreService.isCursorHidden = true;
           break;
diff --git a/src/common/Types.d.ts b/src/common/Types.d.ts
index 129f8e1b..7d15d6a1 100644
--- a/src/common/Types.d.ts
+++ b/src/common/Types.d.ts
@@ -281,6 +281,9 @@ export interface ICoreMouseEvent {
   col: number;
   /** row (zero based). */
   row: number;
+  /** xy pixel positions. */
+  x: number;
+  y: number;
   /**
    * Button the action occured. Due to restrictions of the tracking protocols
    * it is not possible to report multiple buttons at once.
diff --git a/src/common/services/CoreMouseService.test.ts b/src/common/services/CoreMouseService.test.ts
index bb49ecd2..34710897 100644
--- a/src/common/services/CoreMouseService.test.ts
+++ b/src/common/services/CoreMouseService.test.ts
@@ -34,7 +34,7 @@ describe('CoreMouseService', () => {
   });
   it('default encodings - DEFAULT, SGR', () => {
     const cms = new CoreMouseService(bufferService, coreService);
-    assert.deepEqual(Object.keys((cms as any)._encodings), ['DEFAULT', 'SGR']);
+    assert.deepEqual(Object.keys((cms as any)._encodings), ['DEFAULT', 'SGR', 'SGR_PIXELS']);
   });
   it('protocol/encoding setter, reset', () => {
     const cms = new CoreMouseService(bufferService, coreService);
@@ -82,68 +82,68 @@ describe('CoreMouseService', () => {
       coreService.triggerBinaryEvent = (data: string) => reports.push(data);
     });
     it('NONE', () => {
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), false);
     });
     it('X10', () => {
       cms.activeProtocol = 'X10';
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), false);
     });
     it('VT200', () => {
       cms.activeProtocol = 'VT200';
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), false);
     });
     it('DRAG', () => {
       cms.activeProtocol = 'DRAG';
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), true);
     });
     it('ANY', () => {
       cms.activeProtocol = 'ANY';
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE }), true);
       // should not report in any case
       // invalid button + action combinations
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.MOVE }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.DOWN }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.UP }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.MOVE }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.UP }), false);
       // invalid coords
-      assert.equal(cms.triggerMouseEvent({ col: -1, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 500, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: -1, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 500, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: -1, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 500, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: -1, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 500, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), false);
     });
     describe('coords', () => {
       it('DEFAULT encoding', () => {
         cms.activeProtocol = 'ANY';
         for (let i = 0; i < bufferService.cols; ++i) {
-          assert.equal(cms.triggerMouseEvent({ col: i, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
+          assert.equal(cms.triggerMouseEvent({ col: i, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
           if (i > 222) {
             // supress mouse reports if we are out of addressible range (max. 222)
             assert.deepEqual(toBytes(reports.pop()), []);
@@ -156,46 +156,54 @@ describe('CoreMouseService', () => {
         cms.activeProtocol = 'ANY';
         cms.activeEncoding = 'SGR';
         for (let i = 0; i < bufferService.cols; ++i) {
-          assert.equal(cms.triggerMouseEvent({ col: i, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
+          assert.equal(cms.triggerMouseEvent({ col: i, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
           assert.deepEqual(reports.pop(), `\x1b[<0;${i + 1};1M`);
         }
       });
+      it('SGR_PIXELS encoding', () => {
+        cms.activeProtocol = 'ANY';
+        cms.activeEncoding = 'SGR_PIXELS';
+        for (let i = 0; i < 500; ++i) {
+          assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: i, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN }), true);
+          assert.deepEqual(reports.pop(), `\x1b[<0;${i};0M`);
+        }
+      });
     });
     it('eventCodes with modifiers (DEFAULT encoding)', () => {
       // TODO: implement AUX button tests
       cms.activeProtocol = 'ANY';
       cms.activeEncoding = 'DEFAULT';
       // all buttons + down + no modifer
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.DOWN, ctrl: false, alt: false, shift: false }), true);
       assert.deepEqual(reports, ['\x1b[M !!', '\x1b[M!!!', '\x1b[M"!!', '\x1b[Ma!!']);
       reports = [];
 
       // all buttons + up + no modifier
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.WHEEL, action: CoreMouseAction.UP, ctrl: false, alt: false, shift: false }), true);
       assert.deepEqual(reports, ['\x1b[M#!!', '\x1b[M#!!', '\x1b[M#!!', '\x1b[M`!!']);
       reports = [];
 
       // all buttons + move + no modifier
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.LEFT, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.MIDDLE, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.RIGHT, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: false }), true);
       assert.deepEqual(reports, ['\x1b[M@!!', '\x1b[MA!!', '\x1b[MB!!', '\x1b[MC!!']);
       reports = [];
 
       // button none + move + modifiers
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: true, alt: false, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: true, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: true }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: true, alt: true, shift: false }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: true, shift: true }), true);
-      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: true, alt: true, shift: true }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: true, alt: false, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: true, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: false, shift: true }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: true, alt: true, shift: false }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: false, alt: true, shift: true }), true);
+      assert.equal(cms.triggerMouseEvent({ col: 0, row: 0, x: 0, y: 0, button: CoreMouseButton.NONE, action: CoreMouseAction.MOVE, ctrl: true, alt: true, shift: true }), true);
       assert.deepEqual(reports, ['\x1b[MS!!', '\x1b[MK!!', '\x1b[MG!!', '\x1b[M[!!', '\x1b[MO!!', '\x1b[M_!!']);
       reports = [];
     });
diff --git a/src/common/services/CoreMouseService.ts b/src/common/services/CoreMouseService.ts
index 0b0dc366..54e991f8 100644
--- a/src/common/services/CoreMouseService.ts
+++ b/src/common/services/CoreMouseService.ts
@@ -9,7 +9,7 @@ import { ICoreMouseProtocol, ICoreMouseEvent, CoreMouseEncoding, CoreMouseEventT
 /**
  * Supported default protocols.
  */
-const DEFAULT_PROTOCOLS: {[key: string]: ICoreMouseProtocol} = {
+const DEFAULT_PROTOCOLS: { [key: string]: ICoreMouseProtocol } = {
   /**
    * NONE
    * Events: none
@@ -117,7 +117,7 @@ const S = String.fromCharCode;
 /**
  * Supported default encodings.
  */
-const DEFAULT_ENCODINGS: {[key: string]: CoreMouseEncoding} = {
+const DEFAULT_ENCODINGS: { [key: string]: CoreMouseEncoding } = {
   /**
    * DEFAULT - CSI M Pb Px Py
    * Single byte encoding for coords and event code.
@@ -142,6 +142,10 @@ const DEFAULT_ENCODINGS: {[key: string]: CoreMouseEncoding} = {
   SGR: (e: ICoreMouseEvent) => {
     const final = (e.action === CoreMouseAction.UP && e.button !== CoreMouseButton.WHEEL) ? 'm' : 'M';
     return `\x1b[<${eventCode(e, true)};${e.col};${e.row}${final}`;
+  },
+  SGR_PIXELS: (e: ICoreMouseEvent) => {
+    const final = (e.action === CoreMouseAction.UP && e.button !== CoreMouseButton.WHEEL) ? 'm' : 'M';
+    return `\x1b[<${eventCode(e, true)};${e.x};${e.y}${final}`;
   }
 };
 
@@ -162,8 +166,8 @@ const DEFAULT_ENCODINGS: {[key: string]: CoreMouseEncoding} = {
  * To send a mouse event call `triggerMouseEvent`.
  */
 export class CoreMouseService implements ICoreMouseService {
-  private _protocols: {[name: string]: ICoreMouseProtocol} = {};
-  private _encodings: {[name: string]: CoreMouseEncoding} = {};
+  private _protocols: { [name: string]: ICoreMouseProtocol } = {};
+  private _encodings: { [name: string]: CoreMouseEncoding } = {};
   private _activeProtocol: string = '';
   private _activeEncoding: string = '';
   private _onProtocolChange = new EventEmitter<CoreMouseEventType>();
@@ -241,7 +245,7 @@ export class CoreMouseService implements ICoreMouseService {
   public triggerMouseEvent(e: ICoreMouseEvent): boolean {
     // range check for col/row
     if (e.col < 0 || e.col >= this._bufferService.cols
-        || e.row < 0 || e.row >= this._bufferService.rows) {
+      || e.row < 0 || e.row >= this._bufferService.rows) {
       return false;
     }
 
@@ -260,8 +264,11 @@ export class CoreMouseService implements ICoreMouseService {
     e.col++;
     e.row++;
 
-    // debounce move at grid level
-    if (e.action === CoreMouseAction.MOVE && this._lastEvent && this._compareEvents(this._lastEvent, e)) {
+    // debounce move events at grid or pixel level
+    if (e.action === CoreMouseAction.MOVE
+      && this._lastEvent
+      && this._equalEvents(this._lastEvent, e, this._activeEncoding === 'SGR_PIXELS')
+    ) {
       return false;
     }
 
@@ -286,7 +293,7 @@ export class CoreMouseService implements ICoreMouseService {
     return true;
   }
 
-  public explainEvents(events: CoreMouseEventType): {[event: string]: boolean} {
+  public explainEvents(events: CoreMouseEventType): { [event: string]: boolean } {
     return {
       down: !!(events & CoreMouseEventType.DOWN),
       up: !!(events & CoreMouseEventType.UP),
@@ -296,9 +303,14 @@ export class CoreMouseService implements ICoreMouseService {
     };
   }
 
-  private _compareEvents(e1: ICoreMouseEvent, e2: ICoreMouseEvent): boolean {
-    if (e1.col !== e2.col) return false;
-    if (e1.row !== e2.row) return false;
+  private _equalEvents(e1: ICoreMouseEvent, e2: ICoreMouseEvent, pixels: boolean): boolean {
+    if (pixels) {
+      if (e1.x !== e2.x) return false;
+      if (e1.y !== e2.y) return false;
+    } else {
+      if (e1.col !== e2.col) return false;
+      if (e1.row !== e2.row) return false;
+    }
     if (e1.button !== e2.button) return false;
     if (e1.action !== e2.action) return false;
     if (e1.ctrl !== e2.ctrl) return false;