diff --git a/package.json b/package.json
index 4aaac342..2887d56a 100644
--- a/package.json
+++ b/package.json
@@ -30,7 +30,7 @@
     "jsdoc": "3.4.3",
     "jsdom": "^11.11.0",
     "merge-stream": "^1.0.1",
-    "node-pty": "^0.7.2",
+    "node-pty": "0.7.6",
     "nodemon": "1.10.2",
     "npm-run-all": "^4.1.2",
     "nyc": "^11.8.0",
diff --git a/src/Terminal.integration.ts b/src/Terminal.integration.ts
index 7b7cdbdd..f37d7840 100644
--- a/src/Terminal.integration.ts
+++ b/src/Terminal.integration.ts
@@ -88,7 +88,7 @@ if (os.platform() !== 'win32') {
   /** some helpers for pty interaction */
   // we need a pty in between to get the termios decorations
   // for the basic test cases a raw pty device is enough
-  primitivePty = pty.native.open(cols, rows);
+  primitivePty = (<any>pty).native.open(cols, rows);
 
   /** tests */
   describe('xterm output comparison', () => {
diff --git a/src/Terminal.test.ts b/src/Terminal.test.ts
index 0745ddda..0ea854e2 100644
--- a/src/Terminal.test.ts
+++ b/src/Terminal.test.ts
@@ -120,6 +120,17 @@ describe('term.js addons', () => {
     });
   });
 
+  describe('reset', () => {
+    it('should not affect cursorState', () => {
+      term.cursorState = 1;
+      term.reset();
+      assert.equal(term.cursorState, 1);
+      term.cursorState = 0;
+      term.reset();
+      assert.equal(term.cursorState, 0);
+    });
+  });
+
   describe('clear', () => {
     it('should clear a buffer equal to rows', () => {
       const promptLine = term.buffer.lines.get(term.buffer.ybase + term.buffer.y);
diff --git a/src/Terminal.ts b/src/Terminal.ts
index 0bbbe673..81127f9c 100644
--- a/src/Terminal.ts
+++ b/src/Terminal.ts
@@ -1830,9 +1830,11 @@ export class Terminal extends EventEmitter implements ITerminal, IDisposable, II
     this.options.cols = this.cols;
     const customKeyEventHandler = this._customKeyEventHandler;
     const inputHandler = this._inputHandler;
+    const cursorState = this.cursorState;
     this._setup();
     this._customKeyEventHandler = customKeyEventHandler;
     this._inputHandler = inputHandler;
+    this.cursorState = cursorState;
     this.refresh(0, this.rows - 1);
     if (this.viewport) {
       this.viewport.syncScrollArea();