diff --git a/addons/addon-webgl/src/CursorBlinkStateManager.ts b/addons/addon-webgl/src/CursorBlinkStateManager.ts
index c5bb0870..36f2a909 100644
--- a/addons/addon-webgl/src/CursorBlinkStateManager.ts
+++ b/addons/addon-webgl/src/CursorBlinkStateManager.ts
@@ -10,12 +10,19 @@ import { ICoreBrowserService } from 'browser/services/Services';
  */
 const BLINK_INTERVAL = 600;
 
+/**
+ * The idle time after which cursor blinking stops (2 minutes).
+ */
+const IDLE_TIMEOUT = 5000; //2 * 60 * 1000;
+
 export class CursorBlinkStateManager {
   public isCursorVisible: boolean;
 
   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 +38,7 @@ export class CursorBlinkStateManager {
     this.isCursorVisible = true;
     if (this._coreBrowserService.isFocused) {
       this._restartInterval();
+      this._resetIdleTimer();
     }
   }
 
@@ -49,9 +57,16 @@ 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;
     }
@@ -121,6 +136,7 @@ export class CursorBlinkStateManager {
 
   public pause(): void {
     this.isCursorVisible = true;
+    this._isIdlePaused = false;
     if (this._blinkInterval) {
       this._coreBrowserService.window.clearInterval(this._blinkInterval);
       this._blinkInterval = undefined;
@@ -133,6 +149,10 @@ 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 +161,47 @@ export class CursorBlinkStateManager {
 
     this._animationTimeRestarted = undefined;
     this._restartInterval();
+    this._resetIdleTimer();
     this.restartBlinkAnimation();
   }
+
+  /**
+   * Resets the idle timer. If the terminal is idle for IDLE_TIMEOUT, 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();
+    }, 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..454adb1f 100644
--- a/src/browser/renderer/dom/DomRenderer.ts
+++ b/src/browser/renderer/dom/DomRenderer.ts
@@ -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 +24,12 @@ 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';
+
+/**
+ * The idle time after which cursor blinking stops (2 minutes).
+ */
+const IDLE_TIMEOUT = 5000; // 2 * 60 * 1000;
 
 let nextTerminalId = 1;
 
@@ -42,6 +49,7 @@ export class DomRenderer extends Disposable implements IRenderer {
   private _selectionContainer: HTMLElement;
   private _widthCache: WidthCache;
   private _selectionRenderModel: ISelectionRenderModel = createSelectionRenderModel();
+  private _idleTimeout: number | undefined;
 
   public dimensions: IRenderDimensions;
 
@@ -89,6 +97,8 @@ 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._register(addDisposableListener(this._document, 'mousedown', () => this._resetIdleTimer()));
+
     this._register(toDisposable(() => {
       this._element.classList.remove(TERMINAL_CLASS_PREFIX + this._terminalClass);
 
@@ -99,6 +109,7 @@ export class DomRenderer extends Disposable implements IRenderer {
       this._widthCache.dispose();
       this._themeStyleElement.remove();
       this._dimensionsStyleElement.remove();
+      this._clearIdleTimer();
     }));
 
     this._widthCache = new WidthCache(this._document, this._helperContainer);
@@ -225,6 +236,10 @@ 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 +343,14 @@ export class DomRenderer extends Disposable implements IRenderer {
 
   public handleBlur(): void {
     this._rowContainer.classList.remove(FOCUS_CLASS);
+    this._clearIdleTimer();
     this.renderRows(0, this._bufferService.rows - 1);
   }
 
   public handleFocus(): void {
     this._rowContainer.classList.add(FOCUS_CLASS);
+    this._rowContainer.classList.remove(CURSOR_BLINK_IDLE_CLASS);
+    this._resetIdleTimer();
     this.renderRows(this._bufferService.buffer.y, this._bufferService.buffer.y);
   }
 
@@ -406,7 +424,8 @@ 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._resetIdleTimer();
   }
 
   private _handleOptionsChanged(): void {
@@ -539,4 +558,37 @@ export class DomRenderer extends Disposable implements IRenderer {
       );
     }
   }
+
+  /**
+   * Resets the idle timer. If the terminal is idle for IDLE_TIMEOUT, cursor
+   * blinking will stop.
+   */
+  private _resetIdleTimer(): void {
+    if (!this._coreBrowserService.isFocused) {
+      return;
+    }
+    this._clearIdleTimer();
+    this._rowContainer.classList.remove(CURSOR_BLINK_IDLE_CLASS);
+    this._idleTimeout = this._coreBrowserService.window.setTimeout(() => {
+      this._stopBlinkingDueToIdle();
+    }, IDLE_TIMEOUT);
+  }
+
+  /**
+   * Clears the idle timer.
+   */
+  private _clearIdleTimer(): void {
+    if (this._idleTimeout) {
+      this._coreBrowserService.window.clearTimeout(this._idleTimeout);
+      this._idleTimeout = undefined;
+    }
+  }
+
+  /**
+   * Stops cursor blinking due to idle timeout.
+   */
+  private _stopBlinkingDueToIdle(): void {
+    this._rowContainer.classList.add(CURSOR_BLINK_IDLE_CLASS);
+    this._idleTimeout = undefined;
+  }
 }