diff --git a/src/features/terminal/Terminal.module.css b/src/features/terminal/Terminal.module.css
index 15c9bdac0..e9bc90e9c 100644
--- a/src/features/terminal/Terminal.module.css
+++ b/src/features/terminal/Terminal.module.css
@@ -67,6 +67,16 @@
 .pane :global(.xterm) {
   height: 100%;
 }
+/* xterm's DOM renderer stretches the cursor cell over the whole row (line height
+   included); keep it to the font's own height, centred like the glyphs. */
+.pane :global(.xterm-rows .xterm-cursor) {
+  position: relative;
+  top: 50%;
+  height: auto;
+  max-height: 100%;
+  line-height: normal;
+  transform: translateY(-50%);
+}
 .pane :global(.xterm-viewport) {
   background-color: var(--bg-island, var(--bg-app)) !important;
 }