diff --git a/src/i_video.c b/src/i_video.c
index f8a7d698..6fc4b742 100644
--- a/src/i_video.c
+++ b/src/i_video.c
@@ -200,33 +200,20 @@ static void UpdateGrab(void)
 
     if (!grab && currently_grabbed)
     {
+        int w, h;
+
         SetShowCursor(true);
+
+        SDL_GetWindowSize(screen, &w, &h);
+        SDL_WarpMouseInWindow(screen, 3 * w / 4, 4 * h / 5);
     }
 
     currently_grabbed = grab;
 }
 
-void I_ShowMouseCursor(boolean on)
+void I_ShowMouseCursor(boolean toggle)
 {
-    static boolean state = true;
-
-    if (state == on)
-    {
-        return;
-    }
-    else
-    {
-        state = on;
-    }
-
-    if (on)
-    {
-        int w, h;
-        SDL_GetWindowSize(screen, &w, &h);
-        SDL_WarpMouseInWindow(screen, w / 2, h / 2);
-    }
-
-    SDL_ShowCursor(on);
+    SDL_ShowCursor(toggle);
 }
 
 void I_ResetRelativeMouseState(void)
diff --git a/src/i_video.h b/src/i_video.h
index 1daf216d..29ca37b5 100644
--- a/src/i_video.h
+++ b/src/i_video.h
@@ -109,7 +109,7 @@ void *I_GetSDLRenderer(void);
 
 void I_InitWindowIcon(void);
 
-void I_ShowMouseCursor(boolean on);
+void I_ShowMouseCursor(boolean toggle);
 void I_ResetRelativeMouseState(void);
 
 #endif
diff --git a/src/mn_menu.c b/src/mn_menu.c
index ca755001..370ea62d 100644
--- a/src/mn_menu.c
+++ b/src/mn_menu.c
@@ -2327,7 +2327,7 @@ static boolean ShortcutResponder(const event_t *ev)
     return false;
 }
 
-menu_input_mode_t menu_input;
+menu_input_mode_t menu_input, old_menu_input;
 
 static int mouse_state_x, mouse_state_y;
 
@@ -2442,6 +2442,23 @@ static boolean SaveLoadResponder(menu_action_t action, int ch)
     return false;
 }
 
+void MN_ResetMouseCursor(void)
+{
+    static boolean state;
+
+    if (menu_input == mouse_mode && !state)
+    {
+        state = true;
+        I_ShowMouseCursor(true);
+    }
+    else if (menu_input != mouse_mode && state)
+    {
+        state = false;
+        ClearHighlightedItems();
+        I_ShowMouseCursor(false);
+    }
+}
+
 static boolean MouseResponder(void)
 {
     if (!menuactive || messageToPrint)
@@ -2449,7 +2466,7 @@ static boolean MouseResponder(void)
         return false;
     }
 
-    I_ShowMouseCursor(true);
+    MN_ResetMouseCursor();
 
     if (setup_active)
     {
@@ -2533,6 +2550,8 @@ boolean M_Responder(event_t *ev)
     static menu_action_t repeat = MENU_NULL;
     menu_action_t action = MENU_NULL;
 
+    old_menu_input = menu_input;
+
     ch = 0; // will be changed to a legit char if we're going to use it here
 
     switch (ev->type)
@@ -2581,10 +2600,6 @@ boolean M_Responder(event_t *ev)
             return false;
 
         case ev_keydown:
-            if (menu_input == mouse_mode && M_InputActivated(input_menu_escape))
-            {
-                break;
-            }
             menu_input = key_mode;
             ch = ev->data1;
             break;
@@ -2619,19 +2634,6 @@ boolean M_Responder(event_t *ev)
             return false;
     }
 
-    if (menuactive)
-    {
-        if (menu_input == mouse_mode)
-        {
-            I_ShowMouseCursor(true);
-        }
-        else
-        {
-            ClearHighlightedItems();
-            I_ShowMouseCursor(false);
-        }
-    }
-
     if (M_InputActivated(input_menu_up))
     {
         action = MENU_UP;
@@ -2791,6 +2793,11 @@ boolean M_Responder(event_t *ev)
         return true;
     }
 
+    if (menuactive)
+    {
+        MN_ResetMouseCursor();
+    }
+
     // From here on, these navigation keys are used on the BIG FONT menus
     // like the Main Menu.
 
@@ -2885,6 +2892,8 @@ boolean M_Responder(event_t *ev)
         }
         MN_ClearMenus();
         M_StartSound(sfx_swtchx);
+        menu_input = old_menu_input;
+        MN_ResetMouseCursor();
         return true;
     }
 
@@ -2925,6 +2934,8 @@ boolean M_Responder(event_t *ev)
             MN_ClearMenus();
             M_StartSound(sfx_swtchx);
         }
+        menu_input = old_menu_input;
+        MN_ResetMouseCursor();
         return true;
     }
 
diff --git a/src/mn_setup.c b/src/mn_setup.c
index 6eb1661f..5bfdd1fc 100644
--- a/src/mn_setup.c
+++ b/src/mn_setup.c
@@ -3058,6 +3058,8 @@ static boolean ChangeEntry(menu_action_t action, int ch)
 
         SelectDone(current_item); // phares 4/17/98
         setup_gather = false;     // finished gathering keys, if any
+        menu_input = old_menu_input;
+        MN_ResetMouseCursor();
         return true;
     }
 
@@ -3090,6 +3092,9 @@ static boolean ChangeEntry(menu_action_t action, int ch)
         // allow backspace, and return to original value if bad
         // value is entered).
 
+        menu_input = old_menu_input;
+        MN_ResetMouseCursor();
+
         if (action == MENU_ENTER)
         {
             if (gather_count) // Any input?
@@ -3162,6 +3167,9 @@ static boolean BindInput(void)
         return false;
     }
 
+    menu_input = old_menu_input;
+    MN_ResetMouseCursor();
+
     setup_menu_t *current_item = current_menu + set_item_on;
 
     int input_id =
@@ -3281,7 +3289,8 @@ boolean MN_SetupResponder(menu_action_t action, int ch)
         current_menu[highlight_item].m_flags &= ~S_HILITE;
     }
 
-    setup_menu_t *current_item = current_menu + set_item_on;
+    int index = (old_menu_input == mouse_mode ? highlight_item : set_item_on);
+    setup_menu_t *current_item = current_menu + index;
 
     // phares 4/19/98:
     // Catch the response to the 'reset to default?' verification
@@ -3354,6 +3363,8 @@ boolean MN_SetupResponder(menu_action_t action, int ch)
         }
 
         SelectDone(current_item); // phares 4/17/98
+        menu_input = old_menu_input;
+        MN_ResetMouseCursor();
         return true;
     }
 
diff --git a/src/mn_setup.h b/src/mn_setup.h
index aab8e6ff..41af3a4f 100644
--- a/src/mn_setup.h
+++ b/src/mn_setup.h
@@ -45,7 +45,9 @@ typedef enum
     key_mode
 } menu_input_mode_t;
 
-extern menu_input_mode_t menu_input;
+extern menu_input_mode_t menu_input, old_menu_input;
+void MN_ResetMouseCursor(void);
+
 extern boolean setup_active;
 extern short whichSkull; // which skull to draw (he blinks)
 extern int saved_screenblocks;