diff --git a/src/cursor.c b/src/cursor.c
index 81d527ad..6c93f317 100644
--- a/src/cursor.c
+++ b/src/cursor.c
@@ -302,15 +302,19 @@ process_cursor_motion(struct server *server, uint32_t time)
 		 * events to the focused surface so we can keep scrolling
 		 * or selecting text even if the cursor moves outside of
 		 * the surface.
-		 *
-		 * TODO: This seems to miss calculations for invisible CSD borders.
-		 *       Tracked at https://github.com/labwc/labwc/issues/340
 		 */
 		view = server->seat.pressed.view;
 		sx = server->seat.cursor->x - view->x;
 		sy = server->seat.cursor->y - view->y;
 		sx = sx < 0 ? 0 : (sx > view->w ? view->w : sx);
 		sy = sy < 0 ? 0 : (sy > view->h ? view->h : sy);
+		if (view->type == LAB_XDG_SHELL_VIEW && view->xdg_surface) {
+			/* Take into account invisible CSD borders */
+			struct wlr_box geo;
+			wlr_xdg_surface_get_geometry(view->xdg_surface, &geo);
+			sx += geo.x;
+			sy += geo.y;
+		}
 		wlr_seat_pointer_notify_motion(server->seat.seat, time, sx, sy);
 	} else if (surface && !input_inhibit_blocks_surface(
 			&server->seat, surface->resource)) {