diff --git a/include/rfb/rfb.h b/include/rfb/rfb.h
index 6cfac6d4..42c88470 100644
--- a/include/rfb/rfb.h
+++ b/include/rfb/rfb.h
@@ -277,7 +277,7 @@ typedef struct _rfbScreenInfo
     rfbBool neverShared;
     rfbBool dontDisconnect;
     struct _rfbClientRec* clientHead;
-    struct _rfbClientRec* pointerClient;  /**< "Mutex" for pointer events */
+    struct _rfbClientRec* pointerClient;  /**< "Mutex" for pointer drag events */
 
 
     /* cursor */
@@ -378,6 +378,14 @@ typedef struct _rfbScreenInfo
     /** where the cursor is shown */
     int underCursorBufferX, underCursorBufferY;
     RWLOCK(showCursorRWLock);
+
+    /* The client that last moved the pointer
+       Other clients will automatically receive cursor updates via the traditional
+       mechanism of drawing the cursor into the framebuffer (AKA "server-side
+       cursor rendering") so they can track the pointer's movement regardless of
+       whether cursor shape updates (AKA "client-side cursor rendering") are
+       enabled. */
+    struct _rfbClientRec* pointerOwner;
 } rfbScreenInfo, *rfbScreenInfoPtr;
 
 
@@ -722,7 +730,9 @@ typedef struct _rfbClientRec {
 
 #define FB_UPDATE_PENDING(cl)                                              \
      (((cl)->enableCursorShapeUpdates && (cl)->cursorWasChanged) ||        \
-     (((cl)->enableCursorShapeUpdates == FALSE &&                          \
+     ((                                                                    \
+       ((cl)->enableCursorShapeUpdates == FALSE ||                         \
+        (cl)->screen->pointerOwner != (cl)) &&                             \
        ((cl)->cursorX != (cl)->screen->cursorX ||                          \
 	(cl)->cursorY != (cl)->screen->cursorY))) ||                       \
      ((cl)->useNewFBSize && (cl)->newFBSizePending) ||                     \
diff --git a/src/libvncserver/cursor.c b/src/libvncserver/cursor.c
index 51008bde..fd9e43af 100644
--- a/src/libvncserver/cursor.c
+++ b/src/libvncserver/cursor.c
@@ -781,7 +781,7 @@ void rfbSetCursor(rfbScreenInfoPtr rfbScreen,rfbCursorPtr c)
   if(rfbScreen->cursor) {
     iterator=rfbGetClientIterator(rfbScreen);
     while((cl=rfbClientIteratorNext(iterator)))
-	if(!cl->enableCursorShapeUpdates)
+	if(!cl->enableCursorShapeUpdates || (cl->screen->pointerOwner && cl->screen->pointerOwner != cl))
 	  rfbRedrawAfterHideCursor(cl,NULL);
     rfbReleaseClientIterator(iterator);
 
@@ -794,8 +794,11 @@ void rfbSetCursor(rfbScreenInfoPtr rfbScreen,rfbCursorPtr c)
   iterator=rfbGetClientIterator(rfbScreen);
   while((cl=rfbClientIteratorNext(iterator))) {
     cl->cursorWasChanged = TRUE;
-    if(!cl->enableCursorShapeUpdates)
+    if(!cl->enableCursorShapeUpdates || (cl->screen->pointerOwner && cl->screen->pointerOwner != cl))
       rfbRedrawAfterHideCursor(cl,NULL);
+    LOCK(cl->updateMutex);
+    TSIGNAL(cl->updateCond);
+    UNLOCK(cl->updateMutex);
   }
   rfbReleaseClientIterator(iterator);
 
diff --git a/src/libvncserver/main.c b/src/libvncserver/main.c
index a8e9a581..132ef1fb 100644
--- a/src/libvncserver/main.c
+++ b/src/libvncserver/main.c
@@ -732,11 +732,26 @@ rfbDefaultPtrAddEvent(int buttonMask, int x, int y, rfbClientPtr cl)
     if (cl->enableCursorPosUpdates)
       cl->cursorWasMoved = FALSE;
 
+    /* Will become the pointer owner, need to hide the server-side cursor. */
+    if (!cl->screen->pointerOwner) {
+        rfbRedrawAfterHideCursor(cl, NULL);
+        LOCK(cl->updateMutex);
+        TSIGNAL(cl->updateCond);
+        UNLOCK(cl->updateMutex);
+    }
+
     /* But inform all remaining clients about this cursor movement. */
     iterator = rfbGetClientIterator(s);
     while ((other_client = rfbClientIteratorNext(iterator)) != NULL) {
-      if (other_client != cl && other_client->enableCursorPosUpdates) {
-	other_client->cursorWasMoved = TRUE;
+      if (other_client != cl) {
+        if (other_client->enableCursorPosUpdates) {
+	  other_client->cursorWasMoved = TRUE;
+        }
+        if (other_client != cl->screen->pointerOwner) {
+          LOCK(other_client->updateMutex);
+          TSIGNAL(other_client->updateCond);
+          UNLOCK(other_client->updateMutex);
+        }
       }
     }
     rfbReleaseClientIterator(iterator);
@@ -1001,6 +1016,8 @@ rfbScreenInfoPtr rfbGetScreen(int* argc,char** argv,
    screen->underCursorBufferY = 0;
    INIT_RWLOCK(screen->showCursorRWLock);
 
+   screen->pointerOwner = NULL;
+
    if(!rfbProcessArguments(screen,argc,argv)) {
      free(screen);
      return NULL;
diff --git a/src/libvncserver/rfbserver.c b/src/libvncserver/rfbserver.c
index cd3952b6..8849a49f 100644
--- a/src/libvncserver/rfbserver.c
+++ b/src/libvncserver/rfbserver.c
@@ -627,6 +627,9 @@ rfbClientConnectionGone(rfbClientPtr cl)
     if (cl->screen->pointerClient == cl)
         cl->screen->pointerClient = NULL;
 
+    if (cl->screen->pointerOwner == cl)
+        cl->screen->pointerOwner = NULL;
+
     sraRgnDestroy(cl->modifiedRegion);
     sraRgnDestroy(cl->requestedRegion);
     sraRgnDestroy(cl->copyRegion);
@@ -2688,6 +2691,14 @@ rfbProcessClientNormalMessage(rfbClientPtr cl)
 	    cl->screen->pointerClient = cl;
 
 	if(!cl->viewOnly) {
+	    /* If the pointer was most recently moved by another client, we set
+	       pointerOwner to NULL here so that the client that is currently
+	       moving the pointer (cl), assuming it understands cursor shape
+	       updates, will receive a cursor shape update with the last known
+	       pointer position. */
+            if (cl->screen->pointerOwner != cl)
+                cl->screen->pointerOwner = NULL;
+
 	    if (msg.pe.buttonMask != cl->lastPtrButtons ||
 		    cl->screen->deferPtrUpdateTime == 0) {
 		cl->screen->ptrAddEvent(msg.pe.buttonMask,
@@ -2700,6 +2711,8 @@ rfbProcessClientNormalMessage(rfbClientPtr cl)
 		cl->lastPtrY = ScaleY(cl->scaledScreen, cl->screen, Swap16IfLE(msg.pe.y));
 		cl->lastPtrButtons = msg.pe.buttonMask;
 	    }
+
+            cl->screen->pointerOwner = cl;
       }      
       return;
 
@@ -3158,8 +3171,9 @@ rfbSendFramebufferUpdate(rfbClientPtr cl,
     }
     
     /*
-     * If this client understands cursor shape updates, cursor should be
-     * removed from the framebuffer. Otherwise, make sure it's put up.
+     * If this client understands cursor shape updates and owns the pointer or is
+     * about to own the pointer, then the cursor should be removed from the
+     * framebuffer.  Otherwise, make sure it's drawn.
      */
 
     if (cl->enableCursorShapeUpdates) {
@@ -3264,7 +3278,7 @@ rfbSendFramebufferUpdate(rfbClientPtr cl,
     sraRgnOr(updateRegion,cl->copyRegion);
     if(!sraRgnAnd(updateRegion,cl->requestedRegion) &&
        sraRgnEmpty(updateRegion) &&
-       (cl->enableCursorShapeUpdates ||
+       ((cl->enableCursorShapeUpdates && (!cl->screen->pointerOwner || cl->screen->pointerOwner == cl)) ||
 	(cl->cursorX == cl->screen->cursorX && cl->cursorY == cl->screen->cursorY)) &&
        !sendCursorShape && !sendCursorPos && !sendKeyboardLedState &&
        !sendSupportedMessages && !sendSupportedEncodings && !sendServerIdentity) {
@@ -3319,7 +3333,7 @@ rfbSendFramebufferUpdate(rfbClientPtr cl,
    
      UNLOCK(cl->updateMutex);
    
-    if (!cl->enableCursorShapeUpdates) {
+    if (!cl->enableCursorShapeUpdates || (cl->screen->pointerOwner && cl->screen->pointerOwner != cl)) {
       if(cl->cursorX != cl->screen->cursorX || cl->cursorY != cl->screen->cursorY) {
 	rfbRedrawAfterHideCursor(cl,updateRegion);
 	LOCK(cl->screen->cursorMutex);
@@ -3576,8 +3590,8 @@ rfbSendFramebufferUpdate(rfbClientPtr cl,
 	result = FALSE;
     }
 
-    if (!cl->enableCursorShapeUpdates) {
-      rfbHideCursor(cl);
+    if (!cl->enableCursorShapeUpdates || (cl->screen->pointerOwner && cl->screen->pointerOwner != cl)) {
+      rfbHideCursor(cl->screen);
     }
     RWUNLOCK(cl->screen->showCursorRWLock);