diff --git a/src/common/win32/EmuShared.cpp b/src/common/win32/EmuShared.cpp
index cca37b254..0f6dd5b4a 100644
--- a/src/common/win32/EmuShared.cpp
+++ b/src/common/win32/EmuShared.cpp
@@ -152,9 +152,9 @@ EmuShared::EmuShared()
 	m_bDebugging = false;
 	m_bEmulating_status = false;
 	m_bFirstLaunch = false;
+	m_bClipCursor = false;
 
 	// Reserve space (default to 0)
-	m_bReserved2 = false;
 	m_bReserved3 = false;
 	m_bReserved4 = false;
 	m_Reserved5 = 0;
diff --git a/src/common/win32/EmuShared.h b/src/common/win32/EmuShared.h
index f00fb99e2..dcad678a2 100644
--- a/src/common/win32/EmuShared.h
+++ b/src/common/win32/EmuShared.h
@@ -244,6 +244,12 @@ class EmuShared : public Mutex
 		void GetStorageLocation(char *path) { Lock(); strncpy(path, m_core.szStorageLocation, MAX_PATH); Unlock(); }
 		void SetStorageLocation(const char *path) { Lock(); strncpy(m_core.szStorageLocation, path, MAX_PATH); Unlock(); }
 
+		// ******************************************************************
+		// * ClipCursor flag Accessors
+		// ******************************************************************
+		void GetClipCursorFlag(bool *value) { Lock(); *value = m_bClipCursor; Unlock(); }
+		void SetClipCursorFlag(const bool *value) { Lock(); m_bClipCursor = *value; Unlock(); }
+
 		// ******************************************************************
 		// * Reset specific variables to default for kernel mode.
 		// ******************************************************************
@@ -292,7 +298,7 @@ class EmuShared : public Mutex
 		int          m_Reserved7[4];
 #endif
 		bool         m_bFirstLaunch;
-		bool         m_bReserved2;
+		bool         m_bClipCursor;
 		bool         m_bReserved3;
 		bool         m_bReserved4;
 		unsigned int m_dwKrnlProcID; // Only used for kernel mode level.
diff --git a/src/core/hle/D3D8/Direct3D9/Direct3D9.cpp b/src/core/hle/D3D8/Direct3D9/Direct3D9.cpp
index d193ccd4d..27a1a3bd2 100644
--- a/src/core/hle/D3D8/Direct3D9/Direct3D9.cpp
+++ b/src/core/hle/D3D8/Direct3D9/Direct3D9.cpp
@@ -1856,6 +1856,7 @@ static LRESULT WINAPI EmuMsgProc(HWND hWnd, UINT msg, WPARAM wParam, LPARAM lPar
     {
         case WM_DESTROY:
         {
+            CxbxReleaseCursor();
             DeleteObject(g_hBgBrush);
             PostQuitMessage(0);
             return D3D_OK; // = 0
@@ -1943,6 +1944,7 @@ static LRESULT WINAPI EmuMsgProc(HWND hWnd, UINT msg, WPARAM wParam, LPARAM lPar
             else if (wParam == VK_F3)
             {
                 g_bClipCursor = !g_bClipCursor;
+                g_EmuShared->SetClipCursorFlag(&g_bClipCursor);
 
                 if (g_bClipCursor) {
                     CxbxClipCursor(hWnd);
@@ -2037,6 +2039,7 @@ static LRESULT WINAPI EmuMsgProc(HWND hWnd, UINT msg, WPARAM wParam, LPARAM lPar
         break;
 
         case WM_CLOSE:
+            CxbxReleaseCursor();
             DestroyWindow(hWnd);
 			CxbxKrnlShutDown();
             break;
diff --git a/src/core/kernel/init/CxbxKrnl.cpp b/src/core/kernel/init/CxbxKrnl.cpp
index d8debf2a9..0312491c3 100644
--- a/src/core/kernel/init/CxbxKrnl.cpp
+++ b/src/core/kernel/init/CxbxKrnl.cpp
@@ -681,6 +681,9 @@ void CxbxKrnlEmulate(unsigned int reserved_systems, blocks_reserved_t blocks_res
 		//g_EmuShared->SetIsReady(true);
 	}
 
+	/* Initialize ClipCursor flag from EmuShared */
+	g_EmuShared->GetClipCursorFlag(&g_bClipCursor);
+
 	/* Initialize popup message management from kernel side. */
 	log_init_popup_msg();