diff --git a/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java b/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java
index f99ab594b89..e20f0fe1d01 100644
--- a/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java
+++ b/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java
@@ -24,6 +24,7 @@
  * Martin Oberhuber (Wind River) - [204796] Terminal should allow setting the encoding to use
  * Michael Scharf (Wind River) - [237398] Terminal get Invalid Thread Access when the title is set
  * Martin Oberhuber (Wind River) - [240745] Pressing Ctrl+F1 in the Terminal should bring up context help
+ * Michael Scharf (Wind River) - [240098] The cursor should not blink when the terminal is disconnected
  *******************************************************************************/
 package org.eclipse.tm.internal.terminal.emulator;
 
@@ -951,6 +952,22 @@ public class VT100TerminalControl implements ITerminalControlForText, ITerminalC
 	public void setState(TerminalState state) {
 		fState=state;
 		fTerminalListener.setState(state);
+		// enable the (blinking) cursor if the terminal is connected
+		runInDisplayThread(new Runnable() {
+			public void run() {
+				if(fCtlText!=null && !fCtlText.isDisposed())
+					fCtlText.setCursorEnabled(isConnected());
+			}});
+	}
+	/**
+	 * @param runnable run in display thread
+	 */
+	private void runInDisplayThread(Runnable runnable) {
+		if(Display.findDisplay(Thread.currentThread())!=null)
+			runnable.run();
+		else if(PlatformUI.isWorkbenchRunning())
+			PlatformUI.getWorkbench().getDisplay().syncExec(runnable);
+		// else should not happen and we ignore it...
 	}
 
 	public String getSettingsSummary() {
diff --git a/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/textcanvas/TextCanvas.java b/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/textcanvas/TextCanvas.java
index f11f8925341..349a189d0af 100644
--- a/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/textcanvas/TextCanvas.java
+++ b/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/textcanvas/TextCanvas.java
@@ -7,6 +7,7 @@
  *
  * Contributors:
  * Michael Scharf (Wind River) - initial API and implementation
+ * Michael Scharf (Wind River) - [240098] The cursor should not blink when the terminal is disconnected
  *******************************************************************************/
 package org.eclipse.tm.internal.terminal.textcanvas;
 
@@ -41,6 +42,7 @@ public class TextCanvas extends GridCanvas {
 	private ResizeListener fResizeListener;
 	private int fMinColumns=20;
 	private int fMinLines=4;
+	private boolean fCursorEnabled;
 	/**
 	 * Create a new CellCanvas with the given SWT style bits.
 	 * (SWT.H_SCROLL and SWT.V_SCROLL are automatically added).
@@ -65,9 +67,10 @@ public class TextCanvas extends GridCanvas {
 				scrollToEnd();
 			}
 		});
+		// let the cursor blink if the text canvas gets the focus...
 		addFocusListener(new FocusListener(){
 			public void focusGained(FocusEvent e) {
-				fCellCanvasModel.setCursorEnabled(true);
+				fCellCanvasModel.setCursorEnabled(fCursorEnabled);
 			}
 			public void focusLost(FocusEvent e) {
 				fCellCanvasModel.setCursorEnabled(false);
@@ -305,5 +308,23 @@ public class TextCanvas extends GridCanvas {
 		redraw();
 	}
 
+	/**
+	 * @return true if the cursor is enabled (blinking). By default the cursor is not enabled.
+	 */
+	public boolean isCursorEnabled() {
+		return fCursorEnabled;
+	}
+
+	/**
+	 * @param enabled enabling means that the cursor blinks
+	 */
+	public void setCursorEnabled(boolean enabled) {
+		if(enabled!=fCursorEnabled) {
+			fCursorEnabled=enabled;
+			fCellCanvasModel.setCursorEnabled(fCursorEnabled);
+		}
+		
+	}
+
 }