diff --git a/parseraction.cpp b/parseraction.cpp
index a234e98..d329247 100644
--- a/parseraction.cpp
+++ b/parseraction.cpp
@@ -68,5 +68,6 @@ void OSC_End::act_on_terminal( Terminal::Emulator *emu )
 
 void UserByte::act_on_terminal( Terminal::Emulator *emu )
 {
-  emu->dispatch.terminal_to_host.append( emu->user.input( this ) );
+  emu->dispatch.terminal_to_host.append( emu->user.input( this,
+							  emu->fb.ds.application_mode_cursor_keys ) );
 }
diff --git a/termemu.cpp b/termemu.cpp
index 8b9e1ad..43f3e94 100644
--- a/termemu.cpp
+++ b/termemu.cpp
@@ -127,28 +127,32 @@ void emulate_terminal( int fd, int debug_fd )
   pollfds[ 1 ].fd = fd;
   pollfds[ 1 ].events = POLLIN;
 
+  swrite( STDOUT_FILENO, terminal.open().c_str() );
+
   while ( 1 ) {
     int active_fds = poll( pollfds, 2, -1 );
     if ( active_fds <= 0 ) {
       perror( "poll" );
-      return;
+      break;
     }
 
     if ( pollfds[ 0 ].revents & POLLIN ) {
       if ( termemu( fd, STDIN_FILENO, true, debug_fd, &parser, &terminal ) < 0 ) {
-	return;
+	break;
       }
     } else if ( pollfds[ 1 ].revents & POLLIN ) {
       if ( termemu( fd, fd, false, debug_fd, &parser, &terminal ) < 0 ) {
-	return;
+	break;
       }
     } else if ( (pollfds[ 0 ].revents | pollfds[ 1 ].revents)
 		& (POLLERR | POLLHUP | POLLNVAL) ) {
-      return;
+      break;
     } else {
       fprintf( stderr, "poll mysteriously woken up\n" );
     }
   }
+
+  swrite( STDOUT_FILENO, terminal.close().c_str() );
 }
 
 int termemu( int host_fd, int src_fd, bool user, int debug_fd,
diff --git a/terminal.cpp b/terminal.cpp
index 55218c5..711b4b3 100644
--- a/terminal.cpp
+++ b/terminal.cpp
@@ -183,3 +183,15 @@ void Emulator::debug_printout( int fd )
 
   swrite( fd, screen.c_str() );
 }
+
+std::string Emulator::open( void )
+{
+  char appmode[ 6 ] = { 0x1b, '[', '?', '1', 'h', 0 };
+  return std::string( appmode );
+}
+
+std::string Emulator::close( void )
+{
+  char ansimode[ 6 ] = { 0x1b, '[', '?', '1', 'l', 0 };
+  return std::string( ansimode );
+}
diff --git a/terminal.hpp b/terminal.hpp
index 5877d85..fa838df 100644
--- a/terminal.hpp
+++ b/terminal.hpp
@@ -43,6 +43,9 @@ namespace Terminal {
     std::string read_octets_to_host( void );
 
     void debug_printout( int fd );
+
+    std::string open( void ); /* put user cursor keys in application mode */
+    std::string close( void ); /* restore user cursor keys */
   };
 }
 
diff --git a/terminalframebuffer.cpp b/terminalframebuffer.cpp
index 4ea7a88..17f1a07 100644
--- a/terminalframebuffer.cpp
+++ b/terminalframebuffer.cpp
@@ -47,7 +47,7 @@ DrawState::DrawState( int s_width, int s_height )
     scrolling_region_top_row( 0 ), scrolling_region_bottom_row( height - 1 ),
     renditions(), save(),
     next_print_will_wrap( false ), origin_mode( false ), auto_wrap_mode( true ),
-    insert_mode( false ), cursor_visible( true )
+    insert_mode( false ), cursor_visible( true ), application_mode_cursor_keys( false )
 {
   for ( int i = 0; i < width; i++ ) {
     tabs[ i ] = ( (i % 8) == 0 );
@@ -346,6 +346,8 @@ void Framebuffer::soft_reset( void )
 {
   ds.insert_mode = false;
   ds.origin_mode = false;
+  ds.cursor_visible = true; /* per xterm and gnome-terminal */
+  ds.application_mode_cursor_keys = false;
   ds.set_scrolling_region( 0, ds.get_height() - 1 );
   ds.clear_renditions();
   ds.clear_saved_cursor();
diff --git a/terminalframebuffer.hpp b/terminalframebuffer.hpp
index e141309..99509a1 100644
--- a/terminalframebuffer.hpp
+++ b/terminalframebuffer.hpp
@@ -70,6 +70,8 @@ namespace Terminal {
     bool insert_mode;
     bool cursor_visible;
 
+    bool application_mode_cursor_keys;
+
     /* bold, etc. */
 
     void move_row( int N, bool relative = false );
diff --git a/terminalfunctions.cpp b/terminalfunctions.cpp
index 2c59b25..186c587 100644
--- a/terminalfunctions.cpp
+++ b/terminalfunctions.cpp
@@ -208,6 +208,8 @@ static Function func_CSI_TBC( CSI, "g", CSI_TBC );
 
 static bool *get_DEC_mode( int param, Framebuffer *fb ) {
   switch ( param ) {
+  case 1: /* cursor key mode */
+    return &(fb->ds.application_mode_cursor_keys);
   case 3: /* 80/132 */
     /* clear screen */
     fb->ds.move_row( 0 );
diff --git a/terminaluserinput.cpp b/terminaluserinput.cpp
index a858f93..e59d100 100644
--- a/terminaluserinput.cpp
+++ b/terminaluserinput.cpp
@@ -2,7 +2,8 @@
 
 using namespace Terminal;
 
-std::string UserInput::input( Parser::UserByte *act )
+std::string UserInput::input( Parser::UserByte *act,
+			      bool application_mode_cursor_keys )
 {
   char translated_str[ 2 ] = { act->c, 0 };
 
@@ -12,7 +13,7 @@ std::string UserInput::input( Parser::UserByte *act )
 
   /* We don't need lookahead to do this for 7-bit. */
 
-  if ( (!application_mode_cursor)
+  if ( (!application_mode_cursor_keys)
        && (last_byte == 0x1b) /* ESC */
        && (act->c == 'O') ) { /* ESC O = 7-bit SS3 = application mode */
     translated_str[ 0 ] = '[';
@@ -21,6 +22,8 @@ std::string UserInput::input( Parser::UserByte *act )
   /* This doesn't handle the 8-bit SS3 C1 control, which would be
      two octets in UTF-8. Fortunately nobody seems to send this. */
 
+  last_byte = act->c;
+
   act->handled = true;
 
   return std::string( translated_str );
diff --git a/terminaluserinput.hpp b/terminaluserinput.hpp
index 37cec66..6672408 100644
--- a/terminaluserinput.hpp
+++ b/terminaluserinput.hpp
@@ -7,17 +7,15 @@
 namespace Terminal {
   class UserInput {
   private:
-    bool last_byte;
-    bool application_mode_cursor;
+    short last_byte;
 
   public:
     UserInput()
-      : last_byte( 0 ),
-	application_mode_cursor( false )
+      : last_byte( -1 )
     {}
 
-    std::string input( Parser::UserByte *act );
-    void set_cursor_application_mode( bool mode ) { application_mode_cursor = mode; }
+    std::string input( Parser::UserByte *act,
+		       bool application_mode_cursor_keys );
   };
 }