diff --git a/render.c b/render.c
index d7cc9dfb..b0b1ec32 100644
--- a/render.c
+++ b/render.c
@@ -4271,7 +4271,9 @@ render_xcursor_update(struct seat *seat)
     xassert(seat->pointer.cursor != NULL);
 
 #if defined(HAVE_CURSOR_SHAPE)
-    if (seat->pointer.shape_device != NULL) {
+    if (seat->pointer.shape_device != NULL &&
+        seat->pointer.shape != CURSOR_SHAPE_CUSTOM)
+    {
         LOG_DBG("setting cursor shape using cursor-shape-v1");
         wp_cursor_shape_device_v1_set_shape(
             seat->pointer.shape_device,
@@ -4449,7 +4451,8 @@ render_refresh_urls(struct terminal *term)
 }
 
 bool
-render_xcursor_set(struct seat *seat, struct terminal *term, enum cursor_shape shape)
+render_xcursor_set(struct seat *seat, struct terminal *term,
+                   enum cursor_shape shape)
 {
     if (seat->pointer.theme == NULL)
         return false;
@@ -4469,7 +4472,9 @@ render_xcursor_set(struct seat *seat, struct terminal *term, enum cursor_shape s
 
     /* TODO: skip this when using server-side cursors */
     if (shape != CURSOR_SHAPE_HIDDEN) {
-        const char *const xcursor = cursor_shape_to_string(shape);
+        const char *const xcursor = shape == CURSOR_SHAPE_CUSTOM
+            ? term->mouse_user_cursor
+            : cursor_shape_to_string(shape);
         const char *const fallback =
             cursor_shape_to_string(CURSOR_SHAPE_TEXT_FALLBACK);
 
diff --git a/terminal.c b/terminal.c
index 3591040b..3f2c9095 100644
--- a/terminal.c
+++ b/terminal.c
@@ -3126,19 +3126,24 @@ term_xcursor_update_for_seat(struct terminal *term, struct seat *seat)
     enum cursor_shape shape = CURSOR_SHAPE_NONE;
 
     switch (term->active_surface) {
-    case TERM_SURF_GRID: {
-        bool have_custom_cursor =
-            render_xcursor_is_valid(seat, term->mouse_user_cursor);
+    case TERM_SURF_GRID:
+        if (seat->pointer.hidden)
+            shape = CURSOR_SHAPE_HIDDEN;
 
-        shape = seat->pointer.hidden ? CURSOR_SHAPE_HIDDEN
-            : have_custom_cursor ? CURSOR_SHAPE_CUSTOM //term->mouse_user_cursor
-            : term->is_searching ? CURSOR_SHAPE_LEFT_PTR
-            : (seat->mouse.col >= 0 &&
-               seat->mouse.row >= 0 &&
-               term_mouse_grabbed(term, seat)) ? CURSOR_SHAPE_TEXT
-            : CURSOR_SHAPE_LEFT_PTR;
+        else if (render_xcursor_is_valid(seat, term->mouse_user_cursor))
+            shape = CURSOR_SHAPE_CUSTOM;
+
+        else if (seat->mouse.col >= 0 &&
+                 seat->mouse.row >= 0 &&
+                 term_mouse_grabbed(term, seat))
+        {
+            shape = CURSOR_SHAPE_TEXT;
+        }
+
+        else
+            shape = CURSOR_SHAPE_LEFT_PTR;
         break;
-    }
+
     case TERM_SURF_TITLE:
     case TERM_SURF_BUTTON_MINIMIZE:
     case TERM_SURF_BUTTON_MAXIMIZE: