diff --git a/macos/Ghostty.xcodeproj/project.pbxproj b/macos/Ghostty.xcodeproj/project.pbxproj
index 111c9aeef..ea866e430 100644
--- a/macos/Ghostty.xcodeproj/project.pbxproj
+++ b/macos/Ghostty.xcodeproj/project.pbxproj
@@ -59,6 +59,7 @@
 		A5A1F8852A489D6800D1E8BC /* terminfo in Resources */ = {isa = PBXBuildFile; fileRef = A5A1F8842A489D6800D1E8BC /* terminfo */; };
 		A5B30539299BEAAB0047F10C /* Assets.xcassets in Resources */ = {isa = PBXBuildFile; fileRef = A5B30538299BEAAB0047F10C /* Assets.xcassets */; };
 		A5CBD0562C9E65B80017A1AE /* DraggableWindowView.swift in Sources */ = {isa = PBXBuildFile; fileRef = A5CBD0552C9E65A50017A1AE /* DraggableWindowView.swift */; };
+		A5CBD0582C9F30960017A1AE /* Cursor.swift in Sources */ = {isa = PBXBuildFile; fileRef = A5CBD0572C9F30860017A1AE /* Cursor.swift */; };
 		A5CC36132C9CD72D004D6760 /* SecureInputOverlay.swift in Sources */ = {isa = PBXBuildFile; fileRef = A5CC36122C9CD729004D6760 /* SecureInputOverlay.swift */; };
 		A5CC36152C9CDA06004D6760 /* View+Extension.swift in Sources */ = {isa = PBXBuildFile; fileRef = A5CC36142C9CDA03004D6760 /* View+Extension.swift */; };
 		A5CDF1912AAF9A5800513312 /* ConfigurationErrors.xib in Resources */ = {isa = PBXBuildFile; fileRef = A5CDF1902AAF9A5800513312 /* ConfigurationErrors.xib */; };
@@ -128,6 +129,7 @@
 		A5B30538299BEAAB0047F10C /* Assets.xcassets */ = {isa = PBXFileReference; lastKnownFileType = folder.assetcatalog; path = Assets.xcassets; sourceTree = "<group>"; };
 		A5B3053D299BEAAB0047F10C /* Ghostty.entitlements */ = {isa = PBXFileReference; lastKnownFileType = text.plist.entitlements; path = Ghostty.entitlements; sourceTree = "<group>"; };
 		A5CBD0552C9E65A50017A1AE /* DraggableWindowView.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = DraggableWindowView.swift; sourceTree = "<group>"; };
+		A5CBD0572C9F30860017A1AE /* Cursor.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = Cursor.swift; sourceTree = "<group>"; };
 		A5CC36122C9CD729004D6760 /* SecureInputOverlay.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = SecureInputOverlay.swift; sourceTree = "<group>"; };
 		A5CC36142C9CDA03004D6760 /* View+Extension.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = "View+Extension.swift"; sourceTree = "<group>"; };
 		A5CDF1902AAF9A5800513312 /* ConfigurationErrors.xib */ = {isa = PBXFileReference; lastKnownFileType = file.xib; path = ConfigurationErrors.xib; sourceTree = "<group>"; };
@@ -212,6 +214,7 @@
 			children = (
 				A5CEAFFE29C2410700646FDA /* Backport.swift */,
 				A5333E1B2B5A1CE3008AEFF7 /* CrossKit.swift */,
+				A5CBD0572C9F30860017A1AE /* Cursor.swift */,
 				A5D0AF3C2B37804400D21823 /* CodableBridge.swift */,
 				8503D7C62A549C66006CFF3D /* FullScreenHandler.swift */,
 				A59630962AEE163600D64628 /* HostingWindow.swift */,
@@ -527,6 +530,7 @@
 				A51BFC2B2B30F6BE00E92F16 /* UpdateDelegate.swift in Sources */,
 				AEE8B3452B9AA39600260C5E /* NSPasteboard+Extension.swift in Sources */,
 				A53426352A7DA53D00EBB7A2 /* AppDelegate.swift in Sources */,
+				A5CBD0582C9F30960017A1AE /* Cursor.swift in Sources */,
 				A5333E222B5A2128008AEFF7 /* SurfaceView_AppKit.swift in Sources */,
 				A5CDF1952AAFA19600513312 /* ConfigurationErrorsView.swift in Sources */,
 				A55B7BBC29B6FC330055DE60 /* SurfaceView.swift in Sources */,
diff --git a/macos/Sources/Features/ClipboardConfirmation/ClipboardConfirmationView.swift b/macos/Sources/Features/ClipboardConfirmation/ClipboardConfirmationView.swift
index 8a4f24678..1a7272e16 100644
--- a/macos/Sources/Features/ClipboardConfirmation/ClipboardConfirmationView.swift
+++ b/macos/Sources/Features/ClipboardConfirmation/ClipboardConfirmationView.swift
@@ -34,6 +34,9 @@ struct ClipboardConfirmationView: View {
     /// Optional delegate to get results. If this is nil, then this view will never close on its own.
     weak var delegate: ClipboardConfirmationViewDelegate? = nil
 
+    /// Used to track if we should rehide on disappear
+    @State private var cursorHiddenCount: UInt = 0
+
     var body: some View {
         VStack {
             HStack {
@@ -65,6 +68,25 @@ struct ClipboardConfirmationView: View {
             }
             .padding(.bottom)
         }
+        .onAppear {
+            // I can't find a better way to handle this. There is no API to detect
+            // if the cursor is hidden and OTHER THINGS do unhide the cursor. So we
+            // try to unhide it completely here and hope for the best. Issue #1516.
+            cursorHiddenCount = Cursor.unhideCompletely()
+
+            // If we didn't unhide anything, we just send an unhide to be safe.
+            // I don't think the count can go negative on NSCursor so this handles
+            // scenarios cursor is hidden outside of our own NSCursor usage.
+            if (cursorHiddenCount == 0) {
+                _ = Cursor.unhide()
+            }
+        }
+        .onDisappear {
+            // Rehide if we unhid
+            for _ in 0..<cursorHiddenCount {
+                Cursor.hide()
+            }
+        }
     }
 
     private func onCancel() {
diff --git a/macos/Sources/Ghostty/SurfaceView.swift b/macos/Sources/Ghostty/SurfaceView.swift
index e4839e707..e4c9de1fd 100644
--- a/macos/Sources/Ghostty/SurfaceView.swift
+++ b/macos/Sources/Ghostty/SurfaceView.swift
@@ -59,6 +59,21 @@ extension Ghostty {
 
         @EnvironmentObject private var ghostty: Ghostty.App
 
+        // The visibility state of the mouse pointer
+        private var pointerVisibililty: BackportVisibility {
+            // If our window or surface loses focus we always bring it back
+            if (!windowFocus || !surfaceFocus) {
+                return .visible
+            }
+
+            // If we have window focus then it depends on surface state
+            if (surfaceView.pointerVisible) {
+                return .visible
+            } else {
+                return .hidden
+            }
+        }
+
         var body: some View {
             let center = NotificationCenter.default
 
@@ -82,7 +97,7 @@ extension Ghostty {
                         .focusedValue(\.ghosttySurfaceView, surfaceView)
                         .focusedValue(\.ghosttySurfaceCellSize, surfaceView.cellSize)
                     #if canImport(AppKit)
-                        .backport.pointerVisibility(surfaceView.pointerVisible ? .visible : .hidden)
+                        .backport.pointerVisibility(pointerVisibililty)
                         .backport.pointerStyle(surfaceView.pointerStyle)
                         .onReceive(pubBecomeKey) { notification in
                             guard let window = notification.object as? NSWindow else { return }
diff --git a/macos/Sources/Helpers/Cursor.swift b/macos/Sources/Helpers/Cursor.swift
new file mode 100644
index 000000000..fe4a148b5
--- /dev/null
+++ b/macos/Sources/Helpers/Cursor.swift
@@ -0,0 +1,38 @@
+import Cocoa
+
+/// This helps manage the stateful nature of NSCursor hiding and unhiding. 
+class Cursor {
+    private static var counter: UInt = 0
+
+    static var isVisible: Bool {
+        counter == 0
+    }
+
+    static func hide() {
+        counter += 1
+        NSCursor.hide()
+    }
+
+    /// Unhide the cursor. Returns true if the cursor was previously hidden.
+    static func unhide() -> Bool {
+        // Its always safe to call unhide when the counter is zero because it
+        // won't go negative.
+        NSCursor.unhide()
+
+        if (counter > 0) {
+            counter -= 1
+            return true
+        }
+
+        return false
+    }
+
+    static func unhideCompletely() -> UInt {
+        let counter = self.counter
+        for _ in 0..<counter {
+            assert(unhide())
+        }
+        assert(self.counter == 0)
+        return counter
+    }
+}