diff --git a/addons/addon-webgl/src/CursorBlinkStateManager.ts b/addons/addon-webgl/src/CursorBlinkStateManager.ts
index c5bb0870..688aee7b 100644
--- a/addons/addon-webgl/src/CursorBlinkStateManager.ts
+++ b/addons/addon-webgl/src/CursorBlinkStateManager.ts
@@ -3,12 +3,15 @@
  * @license MIT
  */
 
+import { RendererConstants } from 'browser/renderer/shared/Constants';
 import { ICoreBrowserService } from 'browser/services/Services';
 
-/**
- * The time between cursor blinks.
- */
-const BLINK_INTERVAL = 600;
+const enum Constants {
+  /**
+   * The time between cursor blinks.
+   */
+  BLINK_INTERVAL = 600,
+}
 
 export class CursorBlinkStateManager {
   public isCursorVisible: boolean;
@@ -16,6 +19,8 @@ export class CursorBlinkStateManager {
   private _animationFrame: number | undefined;
   private _blinkStartTimeout: number | undefined;
   private _blinkInterval: number | undefined;
+  private _idleTimeout: number | undefined;
+  private _isIdlePaused: boolean = false;
 
   /**
    * The time at which the animation frame was restarted, this is used on the
@@ -31,6 +36,7 @@ export class CursorBlinkStateManager {
     this.isCursorVisible = true;
     if (this._coreBrowserService.isFocused) {
       this._restartInterval();
+      this._resetIdleTimer();
     }
   }
 
@@ -49,9 +55,16 @@ export class CursorBlinkStateManager {
       this._coreBrowserService.window.cancelAnimationFrame(this._animationFrame);
       this._animationFrame = undefined;
     }
+    if (this._idleTimeout) {
+      this._coreBrowserService.window.clearTimeout(this._idleTimeout);
+      this._idleTimeout = undefined;
+    }
   }
 
   public restartBlinkAnimation(): void {
+    if (this._isIdlePaused) {
+      this._resetIdleTimer();
+    }
     if (this.isPaused) {
       return;
     }
@@ -67,7 +80,7 @@ export class CursorBlinkStateManager {
     }
   }
 
-  private _restartInterval(timeToStart: number = BLINK_INTERVAL): void {
+  private _restartInterval(timeToStart: number = Constants.BLINK_INTERVAL): void {
     // Clear any existing interval
     if (this._blinkInterval) {
       this._coreBrowserService.window.clearInterval(this._blinkInterval);
@@ -82,7 +95,7 @@ export class CursorBlinkStateManager {
       // Check if another animation restart was requested while this was being
       // started
       if (this._animationTimeRestarted) {
-        const time = BLINK_INTERVAL - (Date.now() - this._animationTimeRestarted);
+        const time = Constants.BLINK_INTERVAL - (Date.now() - this._animationTimeRestarted);
         this._animationTimeRestarted = undefined;
         if (time > 0) {
           this._restartInterval(time);
@@ -103,7 +116,7 @@ export class CursorBlinkStateManager {
         if (this._animationTimeRestarted) {
           // calc time diff
           // Make restart interval do a setTimeout initially?
-          const time = BLINK_INTERVAL - (Date.now() - this._animationTimeRestarted);
+          const time = Constants.BLINK_INTERVAL - (Date.now() - this._animationTimeRestarted);
           this._animationTimeRestarted = undefined;
           this._restartInterval(time);
           return;
@@ -115,12 +128,13 @@ export class CursorBlinkStateManager {
           this._renderCallback();
           this._animationFrame = undefined;
         });
-      }, BLINK_INTERVAL);
+      }, Constants.BLINK_INTERVAL);
     }, timeToStart);
   }
 
   public pause(): void {
     this.isCursorVisible = true;
+    this._isIdlePaused = false;
     if (this._blinkInterval) {
       this._coreBrowserService.window.clearInterval(this._blinkInterval);
       this._blinkInterval = undefined;
@@ -133,6 +147,10 @@ export class CursorBlinkStateManager {
       this._coreBrowserService.window.cancelAnimationFrame(this._animationFrame);
       this._animationFrame = undefined;
     }
+    if (this._idleTimeout) {
+      this._coreBrowserService.window.clearTimeout(this._idleTimeout);
+      this._idleTimeout = undefined;
+    }
   }
 
   public resume(): void {
@@ -141,6 +159,47 @@ export class CursorBlinkStateManager {
 
     this._animationTimeRestarted = undefined;
     this._restartInterval();
+    this._resetIdleTimer();
     this.restartBlinkAnimation();
   }
+
+  /**
+   * Resets the idle timer. If the terminal is idle for the idle timeout period,
+   * the cursor blinking will stop.
+   */
+  private _resetIdleTimer(): void {
+    this._isIdlePaused = false;
+    if (this._idleTimeout) {
+      this._coreBrowserService.window.clearTimeout(this._idleTimeout);
+    }
+    this._idleTimeout = this._coreBrowserService.window.setTimeout(() => {
+      this._stopBlinkingDueToIdle();
+    }, RendererConstants.CURSOR_BLINK_IDLE_TIMEOUT);
+  }
+
+  /**
+   * Stops cursor blinking due to idle timeout.
+   */
+  private _stopBlinkingDueToIdle(): void {
+    // Make cursor visible and stop blinking
+    this.isCursorVisible = true;
+    this._isIdlePaused = true;
+    if (this._blinkInterval) {
+      this._coreBrowserService.window.clearInterval(this._blinkInterval);
+      this._blinkInterval = undefined;
+    }
+    if (this._blinkStartTimeout) {
+      this._coreBrowserService.window.clearTimeout(this._blinkStartTimeout);
+      this._blinkStartTimeout = undefined;
+    }
+    if (this._animationFrame) {
+      this._coreBrowserService.window.cancelAnimationFrame(this._animationFrame);
+      this._animationFrame = undefined;
+    }
+    // Clear the idle timeout as we've already acted on it
+    this._coreBrowserService.window.clearTimeout(this._idleTimeout);
+    this._idleTimeout = undefined;
+    // Trigger a render to show the cursor in its final visible state
+    this._renderCallback();
+  }
 }
diff --git a/addons/addon-webgl/src/WebglRenderer.ts b/addons/addon-webgl/src/WebglRenderer.ts
index fb14b3c0..987d587c 100644
--- a/addons/addon-webgl/src/WebglRenderer.ts
+++ b/addons/addon-webgl/src/WebglRenderer.ts
@@ -136,6 +136,8 @@ export class WebglRenderer extends Disposable implements IRenderer {
       this._observerDisposable.value = observeDevicePixelDimensions(this._canvas, w, (w, h) => this._setCanvasDevicePixelDimensions(w, h));
     }));
 
+    this._register(addDisposableListener(this._coreBrowserService.mainDocument, 'mousedown', () => this._cursorBlinkStateManager.value?.restartBlinkAnimation()));
+
     this._core.screenElement!.appendChild(this._canvas);
 
     [this._rectangleRenderer.value, this._glyphRenderer.value] = this._initializeWebGLState();
diff --git a/src/browser/renderer/dom/DomRenderer.ts b/src/browser/renderer/dom/DomRenderer.ts
index 1c271797..b1c136f2 100644
--- a/src/browser/renderer/dom/DomRenderer.ts
+++ b/src/browser/renderer/dom/DomRenderer.ts
@@ -5,7 +5,7 @@
 
 import { DomRendererRowFactory, RowCss } from 'browser/renderer/dom/DomRendererRowFactory';
 import { WidthCache } from 'browser/renderer/dom/WidthCache';
-import { INVERTED_DEFAULT_COLOR } from 'browser/renderer/shared/Constants';
+import { INVERTED_DEFAULT_COLOR, RendererConstants } from 'browser/renderer/shared/Constants';
 import { createRenderDimensions } from 'browser/renderer/shared/RendererUtils';
 import { createSelectionRenderModel } from 'browser/renderer/shared/SelectionRenderModel';
 import { IRenderDimensions, IRenderer, IRequestRedrawEvent, ISelectionRenderModel } from 'browser/renderer/shared/Types';
@@ -15,6 +15,7 @@ import { color } from 'common/Color';
 import { Disposable, toDisposable } from 'vs/base/common/lifecycle';
 import { IBufferService, ICoreService, IInstantiationService, IOptionsService } from 'common/services/Services';
 import { Emitter } from 'vs/base/common/event';
+import { addDisposableListener } from 'vs/base/browser/dom';
 
 
 const TERMINAL_CLASS_PREFIX = 'xterm-dom-renderer-owner-';
@@ -23,6 +24,7 @@ const FG_CLASS_PREFIX = 'xterm-fg-';
 const BG_CLASS_PREFIX = 'xterm-bg-';
 const FOCUS_CLASS = 'xterm-focus';
 const SELECTION_CLASS = 'xterm-selection';
+const CURSOR_BLINK_IDLE_CLASS = 'xterm-cursor-blink-idle';
 
 let nextTerminalId = 1;
 
@@ -42,6 +44,7 @@ export class DomRenderer extends Disposable implements IRenderer {
   private _selectionContainer: HTMLElement;
   private _widthCache: WidthCache;
   private _selectionRenderModel: ISelectionRenderModel = createSelectionRenderModel();
+  private _cursorBlinkStateManager: CursorBlinkStateManager;
 
   public dimensions: IRenderDimensions;
 
@@ -89,6 +92,10 @@ export class DomRenderer extends Disposable implements IRenderer {
     this._register(this._linkifier2.onShowLinkUnderline(e => this._handleLinkHover(e)));
     this._register(this._linkifier2.onHideLinkUnderline(e => this._handleLinkLeave(e)));
 
+    this._cursorBlinkStateManager = new CursorBlinkStateManager(this._rowContainer, this._coreBrowserService);
+    this._register(addDisposableListener(this._document, 'mousedown', () => this._cursorBlinkStateManager.restartBlinkAnimation()));
+    this._register(toDisposable(() => this._cursorBlinkStateManager.dispose()));
+
     this._register(toDisposable(() => {
       this._element.classList.remove(TERMINAL_CLASS_PREFIX + this._terminalClass);
 
@@ -225,6 +232,10 @@ export class DomRenderer extends Disposable implements IRenderer {
       `${this._terminalSelector} .${ROW_CONTAINER_CLASS}.${FOCUS_CLASS} .${RowCss.CURSOR_CLASS}.${RowCss.CURSOR_BLINK_CLASS}.${RowCss.CURSOR_STYLE_BLOCK_CLASS} {` +
       ` animation: ${blinkAnimationBlockId} 1s step-end infinite;` +
       `}` +
+      // Disable cursor blinking when idle
+      `${this._terminalSelector} .${ROW_CONTAINER_CLASS}.${CURSOR_BLINK_IDLE_CLASS} .${RowCss.CURSOR_CLASS}.${RowCss.CURSOR_BLINK_CLASS} {` +
+      ` animation: none !important;` +
+      `}` +
       // !important helps fix an issue where the cursor will not render on top of the selection,
       // however it's very hard to fix this issue and retain the blink animation without the use of
       // !important. So this edge case fails when cursor blink is on.
@@ -328,11 +339,13 @@ export class DomRenderer extends Disposable implements IRenderer {
 
   public handleBlur(): void {
     this._rowContainer.classList.remove(FOCUS_CLASS);
+    this._cursorBlinkStateManager.pause();
     this.renderRows(0, this._bufferService.rows - 1);
   }
 
   public handleFocus(): void {
     this._rowContainer.classList.add(FOCUS_CLASS);
+    this._cursorBlinkStateManager.resume();
     this.renderRows(this._bufferService.buffer.y, this._bufferService.buffer.y);
   }
 
@@ -406,7 +419,8 @@ export class DomRenderer extends Disposable implements IRenderer {
   }
 
   public handleCursorMove(): void {
-    // No-op, the cursor is drawn when rows are drawn
+    // Reset idle timer on cursor movement (which happens on input)
+    this._cursorBlinkStateManager.restartBlinkAnimation();
   }
 
   private _handleOptionsChanged(): void {
@@ -540,3 +554,60 @@ export class DomRenderer extends Disposable implements IRenderer {
     }
   }
 }
+
+class CursorBlinkStateManager {
+  private _idleTimeout: number | undefined;
+  private _isIdlePaused: boolean = false;
+
+  constructor(
+    private readonly _rowContainer: HTMLElement,
+    private readonly _coreBrowserService: ICoreBrowserService
+  ) {
+    if (this._coreBrowserService.isFocused) {
+      this._resetIdleTimer();
+    }
+  }
+
+  public dispose(): void {
+    this._clearIdleTimer();
+  }
+
+  public restartBlinkAnimation(): void {
+    if (this._isIdlePaused) {
+      this._rowContainer.classList.remove(CURSOR_BLINK_IDLE_CLASS);
+    }
+    this._resetIdleTimer();
+  }
+
+  public pause(): void {
+    this._isIdlePaused = false;
+    this._clearIdleTimer();
+  }
+
+  public resume(): void {
+    this._isIdlePaused = false;
+    this._rowContainer.classList.remove(CURSOR_BLINK_IDLE_CLASS);
+    this._resetIdleTimer();
+  }
+
+  private _resetIdleTimer(): void {
+    this._isIdlePaused = false;
+    this._clearIdleTimer();
+    this._idleTimeout = this._coreBrowserService.window.setTimeout(() => {
+      this._stopBlinkingDueToIdle();
+    }, RendererConstants.CURSOR_BLINK_IDLE_TIMEOUT);
+  }
+
+  private _clearIdleTimer(): void {
+    if (this._idleTimeout) {
+      this._coreBrowserService.window.clearTimeout(this._idleTimeout);
+      this._idleTimeout = undefined;
+    }
+  }
+
+  private _stopBlinkingDueToIdle(): void {
+    this._rowContainer.classList.add(CURSOR_BLINK_IDLE_CLASS);
+    this._isIdlePaused = true;
+    this._idleTimeout = undefined;
+  }
+}
diff --git a/src/browser/renderer/shared/Constants.ts b/src/browser/renderer/shared/Constants.ts
index 4bc4f985..5b6665c9 100644
--- a/src/browser/renderer/shared/Constants.ts
+++ b/src/browser/renderer/shared/Constants.ts
@@ -4,3 +4,10 @@
  */
 
 export const INVERTED_DEFAULT_COLOR = 257;
+
+export const enum RendererConstants {
+  /**
+   * The idle time after which cursor blinking stops.
+   */
+  CURSOR_BLINK_IDLE_TIMEOUT = 5 * 60 * 1000
+}
diff --git a/typings/xterm-headless.d.ts b/typings/xterm-headless.d.ts
index 819a46d9..2f304604 100644
--- a/typings/xterm-headless.d.ts
+++ b/typings/xterm-headless.d.ts
@@ -49,7 +49,9 @@ declare module '@xterm/headless' {
     convertEol?: boolean;
 
     /**
-     * Whether the cursor blinks.
+     * Whether the cursor blinks. The blinking will stop after 5 minutes of idle
+     * time (refreshed by clicking, focusing or the cursor moving). The default
+     * is false.
      */
     cursorBlink?: boolean;
 
diff --git a/typings/xterm.d.ts b/typings/xterm.d.ts
index 6afdf48e..959b4afe 100644
--- a/typings/xterm.d.ts
+++ b/typings/xterm.d.ts
@@ -58,7 +58,9 @@ declare module '@xterm/xterm' {
     convertEol?: boolean;
 
     /**
-     * Whether the cursor blinks.
+     * Whether the cursor blinks. The blinking will stop after 5 minutes of idle
+     * time (refreshed by clicking, focusing or the cursor moving). The default
+     * is false.
      */
     cursorBlink?: boolean;