diff --git a/src/xenia/app/emulator_window.cc b/src/xenia/app/emulator_window.cc
index 5d2ec6970..e32e99111 100644
--- a/src/xenia/app/emulator_window.cc
+++ b/src/xenia/app/emulator_window.cc
@@ -141,6 +141,20 @@ bool EmulatorWindow::Initialize() {
     e->set_handled(handled);
   });
 
+  window_->on_mouse_move.AddListener([this](MouseEvent* e) {
+    if (window_->is_fullscreen() && (e->dx() > 2 || e->dy() > 2)) {
+      if (!window_->is_cursor_visible()) {
+        window_->set_cursor_visible(true);
+      }
+
+      cursor_hide_time_ = Clock::QueryHostSystemTime() + 30000000;
+    }
+
+    e->set_handled(false);
+  });
+
+  window_->on_paint.AddListener([this](UIEvent* e) { CheckHideCursor(); });
+
   // Main menu.
   // FIXME: This code is really messy.
   auto main_menu = MenuItem::Create(MenuItem::Type::kNormal);
@@ -277,6 +291,17 @@ void EmulatorWindow::FileOpen() {
   }
 }
 
+void EmulatorWindow::CheckHideCursor() {
+  if (!window_->is_fullscreen()) {
+    // Only hide when fullscreen.
+    return;
+  }
+
+  if (Clock::QueryHostSystemTime() > cursor_hide_time_) {
+    window_->set_cursor_visible(false);
+  }
+}
+
 void EmulatorWindow::CpuTimeScalarReset() {
   Clock::set_guest_time_scalar(1.0);
   UpdateTitle();
@@ -320,6 +345,12 @@ void EmulatorWindow::GpuClearCaches() {
 
 void EmulatorWindow::ToggleFullscreen() {
   window_->ToggleFullscreen(!window_->is_fullscreen());
+
+  // Hide the cursor after a second if we're going fullscreen
+  cursor_hide_time_ = Clock::QueryHostSystemTime() + 30000000;
+  if (!window_->is_fullscreen()) {
+    window_->set_cursor_visible(true);
+  }
 }
 
 void EmulatorWindow::ShowHelpWebsite() { LaunchBrowser("http://xenia.jp"); }
diff --git a/src/xenia/app/emulator_window.h b/src/xenia/app/emulator_window.h
index c493ef414..6a3b5e2e3 100644
--- a/src/xenia/app/emulator_window.h
+++ b/src/xenia/app/emulator_window.h
@@ -43,6 +43,7 @@ class EmulatorWindow {
   bool Initialize();
 
   void FileOpen();
+  void CheckHideCursor();
   void CpuTimeScalarReset();
   void CpuTimeScalarSetHalf();
   void CpuTimeScalarSetDouble();
@@ -56,6 +57,7 @@ class EmulatorWindow {
   std::unique_ptr<ui::Loop> loop_;
   std::unique_ptr<ui::Window> window_;
   std::wstring base_title_;
+  uint64_t cursor_hide_time_ = 0;
 };
 
 }  // namespace app
diff --git a/src/xenia/ui/window_win.cc b/src/xenia/ui/window_win.cc
index a02becc75..c81ac5e18 100644
--- a/src/xenia/ui/window_win.cc
+++ b/src/xenia/ui/window_win.cc
@@ -57,7 +57,7 @@ bool Win32Window::OnCreate() {
     wcex.hInstance = hInstance;
     wcex.hIcon = LoadIcon(hInstance, L"MAINICON");
     wcex.hIconSm = LoadIcon(hInstance, L"MAINICON");
-    wcex.hCursor = LoadCursor(nullptr, IDC_ARROW);
+    wcex.hCursor = nullptr;
     wcex.hbrBackground = (HBRUSH)(COLOR_WINDOW + 1);
     wcex.lpszMenuName = nullptr;
     wcex.lpszClassName = L"XeniaWindowClass";
@@ -105,6 +105,8 @@ bool Win32Window::OnCreate() {
   ShowWindow(hwnd_, SW_SHOWNORMAL);
   UpdateWindow(hwnd_);
 
+  arrow_cursor_ = LoadCursor(nullptr, IDC_ARROW);
+
   // Initial state.
   if (!is_cursor_visible_) {
     ShowCursor(FALSE);
@@ -254,9 +256,10 @@ void Win32Window::set_cursor_visible(bool value) {
   if (is_cursor_visible_ == value) {
     return;
   }
+  is_cursor_visible_ = value;
+
   if (value) {
     ShowCursor(TRUE);
-    SetCursor(nullptr);
   } else {
     ShowCursor(FALSE);
   }
@@ -483,8 +486,8 @@ bool Win32Window::HandleMouse(UINT message, WPARAM wParam, LPARAM lParam) {
   }
 
   MouseEvent::Button button = MouseEvent::Button::kNone;
-  int32_t dx = 0;
-  int32_t dy = 0;
+  int32_t dx = x - last_mouse_pos_.x;
+  int32_t dy = y - last_mouse_pos_.y;
   switch (message) {
     case WM_LBUTTONDOWN:
     case WM_LBUTTONUP:
@@ -524,6 +527,8 @@ bool Win32Window::HandleMouse(UINT message, WPARAM wParam, LPARAM lParam) {
       return true;
   }
 
+  last_mouse_pos_ = {x, y};
+
   auto e = MouseEvent(this, button, x, y, dx, dy);
   switch (message) {
     case WM_LBUTTONDOWN:
diff --git a/src/xenia/ui/window_win.h b/src/xenia/ui/window_win.h
index 3240650c6..eae68b2ce 100644
--- a/src/xenia/ui/window_win.h
+++ b/src/xenia/ui/window_win.h
@@ -73,8 +73,10 @@ class Win32Window : public Window {
   HICON icon_ = nullptr;
   bool closing_ = false;
   bool fullscreen_ = false;
+  HCURSOR arrow_cursor_ = nullptr;
 
   WINDOWPLACEMENT windowed_pos_ = {0};
+  POINT last_mouse_pos_ = {0};
 };
 
 class Win32MenuItem : public MenuItem {