diff --git a/docs/changelog.rst b/docs/changelog.rst
index c3742eb2d..96e963875 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -14,6 +14,10 @@ To update |kitty|, :doc:`follow the instructions <binary>`.
 
 - Document the kitty remote control protocol (:iss:`1646`)
 
+- Add a new option :opt:`pointer_shape_when_grabbed` that allows you to control
+  the mouse pointer shape when the terminal programs grabs the pointer
+  (:iss:`1808`)
+
 - Add an option :opt:`terminal_select_modifiers` to control which modifiers
   are used to override mouse selection even when a terminal application has
   grabbed the mouse (:iss:`1774`)
diff --git a/kitty/config_data.py b/kitty/config_data.py
index 76ed0ca3c..4dd961bd1 100644
--- a/kitty/config_data.py
+++ b/kitty/config_data.py
@@ -472,6 +472,10 @@ o('focus_follows_mouse', False, long_text=_('''
 Set the active window to the window under the mouse when
 moving the mouse around'''))
 
+o('pointer_shape_when_grabbed', 'arrow', option_type=choices('arrow', 'beam', 'hand'), long_text=('''
+The shape of the mouse pointer when the program running in the terminal grabs the mouse.
+'''))
+
 # }}}
 
 g('performance')  # {{{
diff --git a/kitty/mouse.c b/kitty/mouse.c
index 509635928..8079b2b1d 100644
--- a/kitty/mouse.c
+++ b/kitty/mouse.c
@@ -243,6 +243,11 @@ get_url_sentinel(Line *line, index_type url_start) {
     return sentinel;
 }
 
+static inline void
+set_mouse_cursor_for_screen(Screen *screen) {
+    mouse_cursor_shape = screen->modes.mouse_tracking_mode == NO_TRACKING ? BEAM : OPT(pointer_shape_when_grabbed);
+}
+
 static inline void
 detect_url(Screen *screen, unsigned int x, unsigned int y) {
     bool has_url = false;
@@ -261,7 +266,7 @@ detect_url(Screen *screen, unsigned int x, unsigned int y) {
         extend_url(screen, line, &url_end, &y_extended, sentinel);
         screen_mark_url(screen, url_start, y, url_end, y_extended);
     } else {
-        mouse_cursor_shape = BEAM;
+        set_mouse_cursor_for_screen(screen);
         screen_mark_url(screen, 0, 0, 0, 0);
     }
 }
@@ -491,9 +496,12 @@ focus_in_event() {
     bool in_tab_bar;
     unsigned int window_idx = 0;
     mouse_cursor_shape = BEAM;
-    set_mouse_cursor(BEAM);
     Window *w = window_for_event(&window_idx, &in_tab_bar);
-    if (w && w->render_data.screen) screen_mark_url(w->render_data.screen, 0, 0, 0, 0);
+    if (w && w->render_data.screen) {
+        screen_mark_url(w->render_data.screen, 0, 0, 0, 0);
+        set_mouse_cursor_for_screen(w->render_data.screen);
+    }
+    set_mouse_cursor(mouse_cursor_shape);
 }
 
 void
diff --git a/kitty/state.c b/kitty/state.c
index 83e6d5e87..f5f233d28 100644
--- a/kitty/state.c
+++ b/kitty/state.c
@@ -324,6 +324,18 @@ convert_mods(PyObject *obj) {
     return resolve_mods(PyLong_AsLong(obj));
 }
 
+static MouseShape
+pointer_shape(PyObject *shape_name) {
+    const char *name = PyUnicode_AsUTF8(shape_name);
+    switch(name[0]) {
+        case 'a': return ARROW;
+        case 'h': return HAND;
+        case 'b': return BEAM;
+        default: break;
+    }
+    return BEAM;
+}
+
 static inline void
 set_special_keys(PyObject *dict) {
     dict_iter(dict) {
@@ -410,6 +422,7 @@ PYWRAP1(set_options) {
     S(tab_bar_min_tabs, PyLong_AsUnsignedLong);
     S(disable_ligatures, PyLong_AsLong);
     S(resize_draw_strategy, PyLong_AsLong);
+    S(pointer_shape_when_grabbed, pointer_shape);
 
     GA(tab_bar_style);
     global_state.tab_bar_hidden = PyUnicode_CompareWithASCIIString(ret, "hidden") == 0 ? true: false;
diff --git a/kitty/state.h b/kitty/state.h
index f7f4ebf7a..162da143e 100644
--- a/kitty/state.h
+++ b/kitty/state.h
@@ -44,6 +44,7 @@ typedef struct {
     bool window_alert_on_bell;
     bool debug_keyboard;
     double resize_debounce_time;
+    MouseShape pointer_shape_when_grabbed;
 } Options;
 
 typedef struct {