diff --git a/src/browser/public/Terminal.ts b/src/browser/public/Terminal.ts
index 33aa9024..64c65fe9 100644
--- a/src/browser/public/Terminal.ts
+++ b/src/browser/public/Terminal.ts
@@ -170,7 +170,7 @@ export class Terminal implements ITerminalApi {
     this._core.paste(data);
   }
   public getOption(key: 'bellSound' | 'bellStyle' | 'cursorStyle' | 'fontFamily' | 'logLevel' | 'rendererType' | 'termName' | 'wordSeparator'): string;
-  public getOption(key: 'allowTransparency' | 'cancelEvents' | 'convertEol' | 'cursorBlink' | 'disableStdin' | 'macOptionIsMeta' | 'rightClickSelectsWord' | 'popOnBell' | 'visualBell'): boolean;
+  public getOption(key: 'allowTransparency' | 'altClickMovesCursor' | 'cancelEvents' | 'convertEol' | 'cursorBlink' | 'disableStdin' | 'macOptionIsMeta' | 'rightClickSelectsWord' | 'popOnBell' | 'visualBell'): boolean;
   public getOption(key: 'cols' | 'fontSize' | 'letterSpacing' | 'lineHeight' | 'rows' | 'tabStopWidth' | 'scrollback'): number;
   public getOption(key: 'fontWeight' | 'fontWeightBold'): FontWeight;
   public getOption(key: string): any;
@@ -182,7 +182,7 @@ export class Terminal implements ITerminalApi {
   public setOption(key: 'logLevel', value: 'debug' | 'info' | 'warn' | 'error' | 'off'): void;
   public setOption(key: 'bellStyle', value: 'none' | 'visual' | 'sound' | 'both'): void;
   public setOption(key: 'cursorStyle', value: 'block' | 'underline' | 'bar'): void;
-  public setOption(key: 'allowTransparency' | 'cancelEvents' | 'convertEol' | 'cursorBlink' | 'disableStdin' | 'macOptionIsMeta' | 'rightClickSelectsWord' | 'popOnBell' | 'visualBell', value: boolean): void;
+  public setOption(key: 'allowTransparency' | 'altClickMovesCursor' | 'cancelEvents' | 'convertEol' | 'cursorBlink' | 'disableStdin' | 'macOptionIsMeta' | 'rightClickSelectsWord' | 'popOnBell' | 'visualBell', value: boolean): void;
   public setOption(key: 'fontSize' | 'letterSpacing' | 'lineHeight' | 'tabStopWidth' | 'scrollback', value: number): void;
   public setOption(key: 'theme', value: ITheme): void;
   public setOption(key: 'cols' | 'rows', value: number): void;
diff --git a/src/browser/services/SelectionService.ts b/src/browser/services/SelectionService.ts
index 81e72087..a3d8d12c 100644
--- a/src/browser/services/SelectionService.ts
+++ b/src/browser/services/SelectionService.ts
@@ -667,7 +667,7 @@ export class SelectionService extends Disposable implements ISelectionService {
 
     this._removeMouseDownListeners();
 
-    if (this.selectionText.length <= 1 && timeElapsed < ALT_CLICK_MOVE_CURSOR_TIME && event.altKey) {
+    if (this.selectionText.length <= 1 && timeElapsed < ALT_CLICK_MOVE_CURSOR_TIME && event.altKey && this._optionsService.getOption('altClickMovesCursor')) {
       if (this._bufferService.buffer.ybase === this._bufferService.buffer.ydisp) {
         const coordinates = this._mouseService.getCoords(
           event,
diff --git a/src/common/services/OptionsService.ts b/src/common/services/OptionsService.ts
index 6c43c303..b7a1c58e 100644
--- a/src/common/services/OptionsService.ts
+++ b/src/common/services/OptionsService.ts
@@ -50,7 +50,7 @@ export const DEFAULT_OPTIONS: ITerminalOptions = Object.freeze({
   windowOptions: {},
   windowsMode: false,
   wordSeparator: ' ()[]{}\',"`',
-
+  altClickMovesCursor: true,
   convertEol: false,
   termName: 'xterm',
   cancelEvents: false
diff --git a/src/common/services/Services.ts b/src/common/services/Services.ts
index 0ea7a308..c733e73e 100644
--- a/src/common/services/Services.ts
+++ b/src/common/services/Services.ts
@@ -184,6 +184,7 @@ export type LogLevel = 'debug' | 'info' | 'warn' | 'error' | 'off';
 export type RendererType = 'dom' | 'canvas';
 
 export interface IPartialTerminalOptions {
+  altClickMovesCursor?: boolean;
   allowTransparency?: boolean;
   bellSound?: string;
   bellStyle?: 'none' | 'sound' /* | 'visual' | 'both' */;
@@ -220,6 +221,7 @@ export interface IPartialTerminalOptions {
 export interface ITerminalOptions {
   allowProposedApi: boolean;
   allowTransparency: boolean;
+  altClickMovesCursor: boolean;
   bellSound: string;
   bellStyle: 'none' | 'sound' /* | 'visual' | 'both' */;
   cols: number;
diff --git a/typings/xterm.d.ts b/typings/xterm.d.ts
index b5a736a7..d860ddfa 100644
--- a/typings/xterm.d.ts
+++ b/typings/xterm.d.ts
@@ -44,6 +44,12 @@ declare module 'xterm' {
      */
     allowTransparency?: boolean;
 
+    /**
+     * If enabled, alt + click will move the prompt cursor to position
+     * underneath the mouse. The default is true.
+     */
+    altClickMovesCursor?: boolean;
+
     /**
      * A data uri of the sound to use for the bell when `bellStyle = 'sound'`.
      */