diff --git a/src/server/headless.rs b/src/server/headless.rs
index 337bbec7..7bd7abce 100644
--- a/src/server/headless.rs
+++ b/src/server/headless.rs
@@ -1962,6 +1962,40 @@ mod tests {
         );
     }
 
+    #[tokio::test]
+    async fn virtual_render_hides_focused_pane_cursor_while_scrolled_back() {
+        let mut state = AppState::test_new();
+        let mut ws = crate::workspace::Workspace::test_new("test");
+        let pane_id = ws.tabs[0].root_pane;
+        let mut bytes = Vec::new();
+        for line in 0..80 {
+            bytes.extend_from_slice(format!("line {line:02}\r\n").as_bytes());
+        }
+        let runtime = crate::pane::PaneRuntime::test_with_scrollback_bytes(20, 5, 4096, &bytes);
+        ws.tabs[0].runtimes.insert(pane_id, runtime);
+
+        state.workspaces = vec![ws];
+        state.active = Some(0);
+        state.selected = 0;
+        state.mode = crate::app::Mode::Terminal;
+
+        let area = Rect::new(0, 0, 80, 24);
+        let _ = crate::server::render_stream::render_virtual(&mut state, area, true);
+        let runtime = state.workspaces[0]
+            .runtime(pane_id)
+            .expect("pane runtime after initial render");
+        runtime.scroll_up(6);
+        assert!(crate::ui::pane_is_scrolled_back(runtime));
+
+        let (_buffer, cursor) =
+            crate::server::render_stream::render_virtual(&mut state, area, true);
+
+        assert!(
+            cursor.as_ref().is_none_or(|cursor| !cursor.visible),
+            "cursor: {cursor:?}"
+        );
+    }
+
     #[test]
     fn latest_active_client_drives_shared_size_theme_and_fallback() {
         let mut server = test_headless_server();
diff --git a/src/server/render_stream.rs b/src/server/render_stream.rs
index f1749657..45542a7a 100644
--- a/src/server/render_stream.rs
+++ b/src/server/render_stream.rs
@@ -257,11 +257,11 @@ fn focused_terminal_cursor(app_state: &AppState) -> Option<CursorState> {
         .pane_infos
         .iter()
         .find(|info| info.is_focused)?;
-    let rt = ws.runtimes.get(&info.id)?;
+    let rt = ws.runtime(info.id)?;
     let cursor = rt.cursor_state(info.inner_rect, true)?;
     Some(CursorState {
         x: cursor.x,
         y: cursor.y,
-        visible: cursor.visible,
+        visible: cursor.visible && !crate::ui::pane_is_scrolled_back(rt),
     })
 }
diff --git a/src/ui.rs b/src/ui.rs
index 83a9d987..aac94a63 100644
--- a/src/ui.rs
+++ b/src/ui.rs
@@ -63,6 +63,7 @@ pub(crate) use self::{
         mobile_switcher_areas, mobile_switcher_max_scroll, mobile_switcher_target_at,
         mobile_switcher_workspace_doc_range, MobileSwitcherTarget,
     },
+    panes::pane_is_scrolled_back,
     tabs::compute_tab_bar_view,
     widgets::{centered_popup_rect, modal_stack_areas},
 };
diff --git a/src/ui/panes.rs b/src/ui/panes.rs
index 20ac9165..818ee9fd 100644
--- a/src/ui/panes.rs
+++ b/src/ui/panes.rs
@@ -13,6 +13,11 @@ use crate::app::{AppState, Mode};
 use crate::layout::PaneInfo;
 use crate::pane::PaneRuntime;
 
+pub(crate) fn pane_is_scrolled_back(rt: &PaneRuntime) -> bool {
+    rt.scroll_metrics()
+        .is_some_and(|metrics| metrics.offset_from_bottom > 0)
+}
+
 fn stable_terminal_inner_rect(pane_inner: Rect) -> Rect {
     if pane_inner.width <= 4 {
         return pane_inner;
@@ -176,7 +181,8 @@ pub(super) fn render_panes(app: &AppState, frame: &mut Frame, area: Rect) {
                 frame.render_widget(block, info.rect);
             }
 
-            rt.render(frame, info.inner_rect, info.is_focused && terminal_active);
+            let show_cursor = info.is_focused && terminal_active && !pane_is_scrolled_back(rt);
+            rt.render(frame, info.inner_rect, show_cursor);
             render_pane_scrollbar(app, frame, info, rt);
 
             let should_dim = !info.is_focused && multi_pane && !terminal_active;