diff --git a/source/main.cpp b/source/main.cpp
index a7b2b6fad4..fa785b6a11 100644
--- a/source/main.cpp
+++ b/source/main.cpp
@@ -90,6 +90,18 @@ static InReaction MainInputHandler(const SDL_Event_* ev)
 {
 	switch(ev->ev.type)
 	{
+	case SDL_ACTIVEEVENT:
+		if (ev->ev.active.state == SDL_APPMOUSEFOCUS)
+		{
+			// Tell renderer not to render cursor if mouse focus is lost
+			//	this restores system cursor, until/if focus is regained
+			if (!ev->ev.active.gain)
+				RenderCursor(false);
+			else
+				RenderCursor(true);
+		}
+		break;
+
 	case SDL_QUIT:
 		kill_mainloop();
 		break;
diff --git a/source/ps/GameSetup/GameSetup.cpp b/source/ps/GameSetup/GameSetup.cpp
index 43a231342d..5ec7b6ad0f 100644
--- a/source/ps/GameSetup/GameSetup.cpp
+++ b/source/ps/GameSetup/GameSetup.cpp
@@ -114,6 +114,7 @@ ERROR_TYPE(System, RequiredExtensionsMissing);
 
 bool g_DoRenderGui = true;
 bool g_DoRenderLogger = true;
+bool g_DoRenderCursor = true;
 
 static const int SANE_TEX_QUALITY_DEFAULT = 5;	// keep in sync with code
 
@@ -273,15 +274,18 @@ void Render()
 	ogl_WarnIfError();
 
 	// Draw the cursor (or set the Windows cursor, on Windows)
-	CStrW cursorName = g_CursorName;
-	if (cursorName.empty())
+	if (g_DoRenderCursor)
 	{
-		cursor_draw(g_VFS, NULL, g_mouse_x, g_yres-g_mouse_y);
-	}
-	else
-	{
-		if (cursor_draw(g_VFS, cursorName.c_str(), g_mouse_x, g_yres-g_mouse_y) < 0)
-			LOGWARNING(L"Failed to draw cursor '%ls'", cursorName.c_str());
+		CStrW cursorName = g_CursorName;
+		if (cursorName.empty())
+		{
+			cursor_draw(g_VFS, NULL, g_mouse_x, g_yres-g_mouse_y);
+		}
+		else
+		{
+			if (cursor_draw(g_VFS, cursorName.c_str(), g_mouse_x, g_yres-g_mouse_y) < 0)
+				LOGWARNING(L"Failed to draw cursor '%ls'", cursorName.c_str());
+		}
 	}
 
 	// restore
@@ -884,6 +888,11 @@ void RenderLogger(bool RenderingState)
 	g_DoRenderLogger = RenderingState;
 }
 
+void RenderCursor(bool RenderingState)
+{
+	g_DoRenderCursor = RenderingState;
+}
+
 static bool Autostart(const CmdLineArgs& args)
 {
 	/*
diff --git a/source/ps/GameSetup/GameSetup.h b/source/ps/GameSetup/GameSetup.h
index 60073e8871..4e78f47cca 100644
--- a/source/ps/GameSetup/GameSetup.h
+++ b/source/ps/GameSetup/GameSetup.h
@@ -51,6 +51,12 @@ enum InitFlags
 extern void RenderGui(bool RenderingState);
 extern void RenderLogger(bool RenderingState);
 
+/**
+ * enable/disable rendering of the cursor - this does not hide cursor, but reverts to OS style
+ */
+extern void RenderCursor(bool RenderingState);
+
+
 class CmdLineArgs;
 extern void Init(const CmdLineArgs& args, int flags);
 extern void InitGraphics(const CmdLineArgs& args, int flags);