diff --git a/src/gui.c b/src/gui.c
index ff81d0b..63625bf 100644
--- a/src/gui.c
+++ b/src/gui.c
@@ -1051,8 +1051,12 @@
     int		cur_width = 0;
     int		cur_height = 0;
     int		old_hl_mask;
-    int		idx;
+    cursorentry_T *shape;
     int		id;
+#ifdef FEAT_TERMINAL
+    guicolor_T	shape_fg = INVALCOLOR;
+    guicolor_T	shape_bg = INVALCOLOR;
+#endif
     guicolor_T	cfg, cbg, cc;	/* cursor fore-/background color */
     int		cattr;		/* cursor attributes */
     int		attr;
@@ -1094,20 +1098,35 @@
 
 	/*
 	 * How the cursor is drawn depends on the current mode.
+	 * When in a terminal window use the shape/color specified there.
 	 */
-	idx = get_shape_idx(FALSE);
-	if (State & LANGMAP)
-	    id = shape_table[idx].id_lm;
+#ifdef FEAT_TERMINAL
+	if (use_terminal_cursor())
+	    shape = term_get_cursor_shape(&shape_fg, &shape_bg);
 	else
-	    id = shape_table[idx].id;
+#endif
+	    shape = &shape_table[get_shape_idx(FALSE)];
+	if (State & LANGMAP)
+	    id = shape->id_lm;
+	else
+	    id = shape->id;
 
 	/* get the colors and attributes for the cursor.  Default is inverted */
 	cfg = INVALCOLOR;
 	cbg = INVALCOLOR;
 	cattr = HL_INVERSE;
-	gui_mch_set_blinking(shape_table[idx].blinkwait,
-			     shape_table[idx].blinkon,
-			     shape_table[idx].blinkoff);
+	gui_mch_set_blinking(shape->blinkwait,
+			     shape->blinkon,
+			     shape->blinkoff);
+#ifdef FEAT_TERMINAL
+	if (shape_bg != INVALCOLOR)
+	{
+	    cattr = 0;
+	    cfg = shape_fg;
+	    cbg = shape_bg;
+	}
+	else
+#endif
 	if (id > 0)
 	{
 	    cattr = syn_id2colors(id, &cfg, &cbg);
@@ -1202,7 +1221,7 @@
 	}
 
 	old_hl_mask = gui.highlight_mask;
-	if (shape_table[idx].shape == SHAPE_BLOCK
+	if (shape->shape == SHAPE_BLOCK
 #ifdef FEAT_HANGULIN
 		|| composing_hangul
 #endif
@@ -1242,16 +1261,14 @@
 	     * First draw the partial cursor, then overwrite with the text
 	     * character, using a transparent background.
 	     */
-	    if (shape_table[idx].shape == SHAPE_VER)
+	    if (shape->shape == SHAPE_VER)
 	    {
 		cur_height = gui.char_height;
-		cur_width = (gui.char_width * shape_table[idx].percentage
-								  + 99) / 100;
+		cur_width = (gui.char_width * shape->percentage + 99) / 100;
 	    }
 	    else
 	    {
-		cur_height = (gui.char_height * shape_table[idx].percentage
-								  + 99) / 100;
+		cur_height = (gui.char_height * shape->percentage + 99) / 100;
 		cur_width = gui.char_width;
 	    }
 #ifdef FEAT_MBYTE
@@ -1259,7 +1276,7 @@
 				    LineOffset[gui.row] + screen_Columns) > 1)
 	    {
 		/* Double wide character. */
-		if (shape_table[idx].shape != SHAPE_VER)
+		if (shape->shape != SHAPE_VER)
 		    cur_width += gui.char_width;
 # ifdef FEAT_RIGHTLEFT
 		if (CURSOR_BAR_RIGHT)
@@ -1728,7 +1745,7 @@
     void
 gui_update_cursor_later(void)
 {
- OUT_STR(IF_EB("\033|s", ESC_STR "|s"));
+    OUT_STR(IF_EB("\033|s", ESC_STR "|s"));
 }
 
     void
diff --git a/src/proto/syntax.pro b/src/proto/syntax.pro
index a7f6f54..7247c51 100644
--- a/src/proto/syntax.pro
+++ b/src/proto/syntax.pro
@@ -32,6 +32,7 @@
 void hl_set_font_name(char_u *font_name);
 void hl_set_bg_color_name(char_u *name);
 void hl_set_fg_color_name(char_u *name);
+guicolor_T color_name2handle(char_u *name);
 int get_cterm_attr_idx(int attr, int fg, int bg);
 int get_tgc_attr_idx(int attr, guicolor_T fg, guicolor_T bg);
 int get_gui_attr_idx(int attr, guicolor_T fg, guicolor_T bg);
diff --git a/src/proto/terminal.pro b/src/proto/terminal.pro
index a004d35..8f2bcd5 100644
--- a/src/proto/terminal.pro
+++ b/src/proto/terminal.pro
@@ -6,6 +6,8 @@
 int term_in_normal_mode(void);
 void term_enter_job_mode(void);
 int send_keys_to_term(term_T *term, int c, int typed);
+int use_terminal_cursor(void);
+cursorentry_T *term_get_cursor_shape(guicolor_T *fg, guicolor_T *bg);
 int term_use_loop(void);
 int terminal_loop(void);
 void term_job_ended(job_T *job);
diff --git a/src/syntax.c b/src/syntax.c
index 2b06b46..4c0fa3f 100644
--- a/src/syntax.c
+++ b/src/syntax.c
@@ -103,7 +103,6 @@
 
 #if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
 static void gui_do_one_color(int idx, int do_menu, int do_tooltip);
-static guicolor_T color_name2handle(char_u *name);
 #endif
 #ifdef FEAT_GUI
 static int  set_group_colors(char_u *name, guicolor_T *fgp, guicolor_T *bgp, int do_menu, int use_norm, int do_tooltip);
@@ -8622,7 +8621,7 @@
  * Return the handle for a color name.
  * Returns INVALCOLOR when failed.
  */
-    static guicolor_T
+    guicolor_T
 color_name2handle(char_u *name)
 {
     if (STRCMP(name, "NONE") == 0)
diff --git a/src/terminal.c b/src/terminal.c
index 020271a..6d01a29 100644
--- a/src/terminal.c
+++ b/src/terminal.c
@@ -1163,11 +1163,57 @@
     }
 }
 
+#if defined(FEAT_GUI) || defined(PROTO)
+/*
+ * Return TRUE when the cursor of the terminal should be displayed.
+ */
+    int
+use_terminal_cursor()
+{
+    return in_terminal_loop != NULL;
+}
+
+    cursorentry_T *
+term_get_cursor_shape(guicolor_T *fg, guicolor_T *bg)
+{
+    term_T		 *term = in_terminal_loop;
+    static cursorentry_T entry;
+
+    vim_memset(&entry, 0, sizeof(entry));
+    entry.shape = entry.mshape =
+	term->tl_cursor_shape == VTERM_PROP_CURSORSHAPE_UNDERLINE ? SHAPE_HOR :
+	term->tl_cursor_shape == VTERM_PROP_CURSORSHAPE_BAR_LEFT ? SHAPE_VER :
+	SHAPE_BLOCK;
+    entry.percentage = 20;
+    if (term->tl_cursor_blink)
+    {
+	entry.blinkwait = 700;
+	entry.blinkon = 400;
+	entry.blinkon = 250;
+    }
+    *fg = gui.back_pixel;
+    if (term->tl_cursor_color == NULL)
+	*bg = gui.norm_pixel;
+    else
+	*bg = color_name2handle(term->tl_cursor_color);
+    entry.name = "n";
+    entry.used_for = SHAPE_CURSOR;
+
+    return &entry;
+}
+#endif
+
 static int did_change_cursor = FALSE;
 
     static void
 may_set_cursor_props(term_T *term)
 {
+#ifdef FEAT_GUI
+    /* For the GUI the cursor properties are obtained with
+     * term_get_cursor_shape(). */
+    if (gui.in_use)
+	return;
+#endif
     if (in_terminal_loop == term)
     {
 	did_change_cursor = TRUE;
@@ -1184,6 +1230,10 @@
     static void
 may_restore_cursor_props(void)
 {
+#ifdef FEAT_GUI
+    if (gui.in_use)
+	return;
+#endif
     if (did_change_cursor)
     {
 	did_change_cursor = FALSE;
@@ -1241,6 +1291,8 @@
 	if (!term_use_loop())
 	    /* job finished while waiting for a character */
 	    break;
+	if (c == K_IGNORE)
+	    continue;
 
 #ifdef UNIX
 	may_send_sigint(c, curbuf->b_term->tl_job->jv_pid, 0);
@@ -1447,7 +1499,10 @@
 
 	case VTERM_PROP_CURSORCOLOR:
 	    vim_free(term->tl_cursor_color);
-	    term->tl_cursor_color = vim_strsave((char_u *)value->string);
+	    if (*value->string == NUL)
+		term->tl_cursor_color = NULL;
+	    else
+		term->tl_cursor_color = vim_strsave((char_u *)value->string);
 	    may_set_cursor_props(term);
 	    break;
 
diff --git a/src/version.c b/src/version.c
index 3758ab9..72cd083 100644
--- a/src/version.c
+++ b/src/version.c
@@ -770,6 +770,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    921,
+/**/
     920,
 /**/
     919,