diff --git a/src/terminal.c b/src/terminal.c
index 0c7630c..4e62253 100644
--- a/src/terminal.c
+++ b/src/terminal.c
@@ -1953,6 +1953,8 @@
 {
     term_T		 *term = in_terminal_loop;
     static cursorentry_T entry;
+    int			 id;
+    guicolor_T		term_fg, term_bg;
 
     vim_memset(&entry, 0, sizeof(entry));
     entry.shape = entry.mshape =
@@ -1966,9 +1968,24 @@
 	entry.blinkon = 400;
 	entry.blinkoff = 250;
     }
-    *fg = gui.back_pixel;
+
+    /* The "Terminal" highlight group overrules the defaults. */
+    id = syn_name2id((char_u *)"Terminal");
+    if (id != 0)
+    {
+	syn_id2colors(id, &term_fg, &term_bg);
+	*fg = term_bg;
+    }
+    else
+	*fg = gui.back_pixel;
+
     if (term->tl_cursor_color == NULL)
-	*bg = gui.norm_pixel;
+    {
+	if (id != 0)
+	    *bg = term_fg;
+	else
+	    *bg = gui.norm_pixel;
+    }
     else
 	*bg = color_name2handle(term->tl_cursor_color);
     entry.name = "n";