diff --git a/demo/main.js b/demo/main.js
index 86fbd314..7425c051 100644
--- a/demo/main.js
+++ b/demo/main.js
@@ -27,7 +27,9 @@ function setTerminalSize () {
 colsElement.addEventListener('change', setTerminalSize);
 rowsElement.addEventListener('change', setTerminalSize);
 
-optionElements.cursorBlink.addEventListener('change', createTerminal);
+optionElements.cursorBlink.addEventListener('change', function () {
+  term.setOption('cursorBlink', optionElements.cursorBlink.checked);
+});
 
 createTerminal();
 
diff --git a/src/xterm.js b/src/xterm.js
index b6c659c3..482d69a1 100644
--- a/src/xterm.js
+++ b/src/xterm.js
@@ -407,6 +407,9 @@ Terminal.prototype.setOption = function(key, value) {
   }
   this[key] = value;
   this.options[key] = value;
+  switch (key) {
+    case 'cursorBlink': this.refresh(this.y, this.y); break;
+  }
 };
 
 /**