diff --git a/app/index.js b/app/index.js
index ae761ea6..bfa7dbdd 100644
--- a/app/index.js
+++ b/app/index.js
@@ -121,7 +121,8 @@ app.on('ready', () => installDevExtensions(isDev).then(() => {
       // HYPERTERM_DEBUG for backwards compatibility with hyperterm
       show: process.env.HYPER_DEBUG || process.env.HYPERTERM_DEBUG || isDev,
       x: startX,
-      y: startY
+      y: startY,
+      acceptFirstMouse: true
     };
     const browserOptions = plugins.getDecoratedBrowserOptions(browserDefaults);
 
diff --git a/lib/components/term.js b/lib/components/term.js
index 9ab873b4..43b7f3f2 100644
--- a/lib/components/term.js
+++ b/lib/components/term.js
@@ -13,15 +13,18 @@ export default class Term extends Component {
     super(props);
     this.handleWheel = this.handleWheel.bind(this);
     this.handleMouseDown = this.handleMouseDown.bind(this);
+    this.handleMouseUp = this.handleMouseUp.bind(this);
     this.handleScrollEnter = this.handleScrollEnter.bind(this);
     this.handleScrollLeave = this.handleScrollLeave.bind(this);
     this.handleFocus = this.handleFocus.bind(this);
+    this.onHyperCaret = this.onHyperCaret.bind(this);
     props.ref_(this);
   }
 
   componentDidMount() {
     const {props} = this;
     this.term = props.term || new hterm.Terminal(uuid.v4());
+    this.term.onHyperCaret(this.hyperCaret);
 
     // the first term that's created has unknown size
     // subsequent new tabs have size
@@ -77,6 +80,7 @@ export default class Term extends Component {
       // emit onTitle event when hterm instance
       // wants to set the title of its tab
       this.term.setWindowTitle = props.onTitle;
+      this.term.focusHyperCaret();
     };
     this.term.decorate(this.termRef);
     this.term.installKeyboard();
@@ -87,7 +91,7 @@ export default class Term extends Component {
     const iframeWindow = this.getTermDocument().defaultView;
     iframeWindow.addEventListener('wheel', this.handleWheel);
 
-    this.getScreenNode().addEventListener('focus', this.handleFocus);
+    this.getScreenNode().addEventListener('mouseup', this.handleMouseUp);
   }
 
   handleWheel(e) {
@@ -122,6 +126,22 @@ export default class Term extends Component {
     // called, which is unecessary.
     // Should investigate if it matters.
     this.props.onActive();
+    this.term.focusHyperCaret();
+  }
+
+  handleMouseUp() {
+    this.props.onActive();
+    // this makes sure that we focus the hyper caret only
+    // if a click on the term does not result in a selection
+    // otherwise, if we focus without such check, it'd be
+    // impossible to select a piece of text
+    if (this.term.document_.getSelection().type !== 'Range') {
+      this.term.focusHyperCaret();
+    }
+  }
+
+  onHyperCaret(caret) {
+    this.hyperCaret = caret;
   }
 
   write(data) {
@@ -129,7 +149,7 @@ export default class Term extends Component {
   }
 
   focus() {
-    this.term.focus();
+    this.term.focusHyperCaret();
   }
 
   clear() {
@@ -185,6 +205,14 @@ export default class Term extends Component {
 
   getStylesheet(css) {
     const blob = new Blob([`
+      .hyper-caret {
+        outline: none;
+        display: inline-block;
+        color: transparent;
+        text-shadow: 0 0 0 black;
+        font-family: ${this.props.fontFamily};
+        font-size: ${this.props.fontSize}px;
+      }
       .cursor-node[focus="false"] {
         border-width: 1px !important;
       }
@@ -237,6 +265,7 @@ export default class Term extends Component {
 
     if (this.props.fontSize !== nextProps.fontSize) {
       prefs.set('font-size', nextProps.fontSize);
+      this.hyperCaret.style.fontSize = nextProps.fontSize + 'px';
     }
 
     if (this.props.foregroundColor !== nextProps.foregroundColor) {
@@ -245,6 +274,7 @@ export default class Term extends Component {
 
     if (this.props.fontFamily !== nextProps.fontFamily) {
       prefs.set('font-family', nextProps.fontFamily);
+      this.hyperCaret.style.fontFamily = nextProps.fontFamily;
     }
 
     if (this.props.fontSmoothing !== nextProps.fontSmoothing) {
@@ -315,11 +345,15 @@ export default class Term extends Component {
             height: '100%'
           }}
           /> :
-            <div
-              className={css('scrollbarShim')}
-              onMouseEnter={this.handleScrollEnter}
-              onMouseLeave={this.handleScrollLeave}
-              />
+        [
+          <div key="hyper-caret" contentEditable className="hyper-caret" ref={this.onHyperCaret}/>,
+          <div // eslint-disable-line react/jsx-indent
+            key="scrollbar"
+            className={css('scrollbarShim')}
+            onMouseEnter={this.handleScrollEnter}
+            onMouseLeave={this.handleScrollLeave}
+            />
+        ]
       }
       { this.props.customChildren }
     </div>);
diff --git a/lib/hterm.js b/lib/hterm.js
index ff2deb16..d56febdf 100644
--- a/lib/hterm.js
+++ b/lib/hterm.js
@@ -42,69 +42,6 @@ const oldKeyDown = hterm.Keyboard.prototype.onKeyDown_;
 hterm.Keyboard.prototype.onKeyDown_ = function (e) {
   const modifierKeysConf = this.terminal.modifierKeys;
 
-  /**
-   * Add fixes for U.S. International PC Keyboard layout
-   * These keys are sent through as 'Dead' keys, as they're used as modifiers.
-   * Ignore that and insert the correct character.
-   */
-  if (e.key === 'Dead') {
-    if (e.code === 'Quote' && e.shiftKey === false) {
-      this.terminal.onVTKeystroke('\'');
-      return;
-    }
-    if (e.code === 'Quote' && e.shiftKey === true) {
-      this.terminal.onVTKeystroke('"');
-      return;
-    }
-    if ((e.code === 'IntlBackslash' || e.code === 'Backquote') && e.shiftKey === true) {
-      this.terminal.onVTKeystroke('~');
-      return;
-    }
-    // This key is also a tilde on all tested keyboards
-    if (e.code === 'KeyN' && e.altKey === true && modifierKeysConf.altIsMeta === false) {
-      this.terminal.onVTKeystroke('~');
-      return;
-    }
-    if ((e.code === 'IntlBackslash' || e.code === 'Backquote') && e.shiftKey === false) {
-      this.terminal.onVTKeystroke('`');
-      return;
-    }
-    if (e.code === 'Digit6') {
-      this.terminal.onVTKeystroke('^');
-      return;
-    }
-    // German keyboard layout
-    if (e.code === 'Equal' && e.shiftKey === false) {
-      this.terminal.onVTKeystroke('´');
-      return;
-    }
-    if (e.code === 'Equal' && e.shiftKey === true) {
-      this.terminal.onVTKeystroke('`');
-      return;
-    }
-    // Italian keyboard layout
-    if (e.code === 'Digit9' && e.altKey === true && modifierKeysConf.altIsMeta === false) {
-      this.terminal.onVTKeystroke('`');
-      return;
-    }
-    if (e.code === 'Digit8' && e.altKey === true && modifierKeysConf.altIsMeta === false) {
-      this.terminal.onVTKeystroke('´');
-      // To fix issue with changing the terminal prompt
-      e.preventDefault();
-      return;
-    }
-    // French keyboard layout
-    if (e.code === 'BracketLeft') {
-      this.terminal.onVTKeystroke('^');
-      return;
-    }
-    if (e.code === 'Backslash') {
-      this.terminal.onVTKeystroke('`');
-      return;
-    }
-    console.warn('Uncaught dead key on international keyboard', e);
-  }
-
   if (e.altKey &&
       e.which !== 16 && // Ignore other modifer keys
       e.which !== 17 &&
@@ -132,7 +69,9 @@ hterm.Keyboard.prototype.onKeyDown_ = function (e) {
   if (e.metaKey || e.altKey || (e.ctrlKey && e.code === 'Tab')) {
     return;
   }
-  if ((!e.ctrlKey || e.code !== 'ControlLeft') && !e.shiftKey && e.code !== 'CapsLock') {
+  if ((!e.ctrlKey || e.code !== 'ControlLeft') &&
+      !e.shiftKey && e.code !== 'CapsLock' &&
+      e.key !== 'Dead') {
     //  Test for valid keys in order to clear the terminal selection
     selection.clear(this.terminal);
   }
@@ -212,6 +151,102 @@ hterm.ScrollPort.prototype.setBackgroundColor = function () {
   this.screen_.style.backgroundColor = 'transparent';
 };
 
+// will be called by the <Term/> right after the `hterm.Terminal` is instantiated
+hterm.Terminal.prototype.onHyperCaret = function (caret) {
+  this.hyperCaret = caret;
+  let ongoingComposition = false;
+
+  caret.addEventListener('compositionstart', () => {
+    ongoingComposition = true;
+  });
+
+  // we can ignore `compositionstart` since chromium always fire it with ''
+  caret.addEventListener('compositionupdate', () => {
+    this.cursorNode_.style.backgroundColor = 'yellow';
+    this.cursorNode_.style.borderColor = 'yellow';
+  });
+
+  // at this point the char(s) is ready
+  caret.addEventListener('compositionend', () => {
+    ongoingComposition = false;
+    this.cursorNode_.style.backgroundColor = '';
+    this.setCursorShape(this.getCursorShape());
+    this.cursorNode_.style.borderColor = this.getCursorColor();
+    caret.innerText = '';
+  });
+
+  // if you open the `Emoji & Symbols` (ctrl+cmd+space)
+  // and select an emoji, it'll be inserted into our caret
+  // and stay there until you star a compositon event.
+  // to avoid that, we'll just check if there's an ongoing
+  // compostion event. if there's one, we do nothing.
+  // otherwise, we just remove the emoji and stop the event
+  // propagation.
+  // PS: this event will *not* be fired when a standard char
+  // (a, b, c, 1, 2, 3, etc) is typed – only for composed
+  // ones and `Emoji & Symbols`
+  caret.addEventListener('input', e => {
+    if (!ongoingComposition) {
+      caret.innerText = '';
+      e.stopPropagation();
+      e.preventDefault();
+    }
+  });
+
+  // we need to capture pastes, prevent them and send its contents to the terminal
+  caret.addEventListener('paste', e => {
+    e.stopPropagation();
+    e.preventDefault();
+    const text = e.clipboardData.getData('text');
+    this.onVTKeystroke(text);
+  });
+
+  // here we replicate the focus/blur state of our caret on the `hterm` caret
+  caret.addEventListener('focus', () => {
+    this.cursorNode_.setAttribute('focus', true);
+    this.restyleCursor_();
+  });
+  caret.addEventListener('blur', () => {
+    this.cursorNode_.setAttribute('focus', false);
+    this.restyleCursor_();
+  });
+
+  // this is necessary because we need to access the `document_` and the hyperCaret
+  // on `hterm.Screen.prototype.syncSelectionCaret`
+  this.primaryScreen_.terminal = this;
+  this.alternateScreen_.terminal = this;
+};
+
+// ensure that our contenteditable caret is injected
+// inside the term's cursor node and that it's focused
+hterm.Terminal.prototype.focusHyperCaret = function () {
+  if (!this.hyperCaret.parentNode !== this.cursorNode_) {
+    this.cursorNode_.appendChild(this.hyperCaret);
+  }
+  this.hyperCaret.focus();
+};
+
+hterm.Screen.prototype.syncSelectionCaret = function () {
+  const p = this.terminal.hyperCaret;
+  const doc = this.terminal.document_;
+  const win = doc.defaultView;
+  const s = win.getSelection();
+  const r = doc.createRange();
+  r.selectNodeContents(p);
+  s.removeAllRanges();
+  s.addRange(r);
+};
+
+// fixes a bug in hterm, where the cursor goes back to `BLOCK`
+// after the bell rings
+const oldRingBell = hterm.Terminal.prototype.ringBell;
+hterm.Terminal.prototype.ringBell = function () {
+  oldRingBell.call(this);
+  setTimeout(() => {
+    this.restyleCursor_();
+  }, 200);
+};
+
 // fixes a bug in hterm, where the shorthand hex
 // is not properly converted to rgb
 lib.colors.hexToRGB = function (arg) {