diff --git a/app/streaming/input/input.cpp b/app/streaming/input/input.cpp
index f962eece..cdff4b0b 100644
--- a/app/streaming/input/input.cpp
+++ b/app/streaming/input/input.cpp
@@ -14,6 +14,8 @@ SdlInputHandler::SdlInputHandler(StreamingPreferences& prefs, NvComputer*, int s
       m_GamepadMouse(prefs.gamepadMouse),
       m_MouseMoveTimer(0),
       m_MousePositionLock(0),
+      m_MouseWasInVideoRegion(false),
+      m_PendingMouseButtonsAllUpOnVideoRegionLeave(false),
       m_FakeCaptureActive(false),
       m_LongPressTimer(0),
       m_StreamWidth(streamWidth),
diff --git a/app/streaming/input/input.h b/app/streaming/input/input.h
index 4cf55cf7..f882e81b 100644
--- a/app/streaming/input/input.h
+++ b/app/streaming/input/input.h
@@ -5,6 +5,9 @@
 
 #include <SDL.h>
 
+#define SDL_CODE_HIDE_CURSOR 1
+#define SDL_CODE_SHOW_CURSOR 2
+
 struct GamepadState {
     SDL_GameController* controller;
     SDL_JoystickID jsId;
@@ -125,6 +128,8 @@ private:
         int windowWidth, windowHeight;
     } m_MousePositionReport;
     SDL_atomic_t m_MousePositionUpdated;
+    bool m_MouseWasInVideoRegion;
+    bool m_PendingMouseButtonsAllUpOnVideoRegionLeave;
 
     int m_GamepadMask;
     GamepadState m_GamepadState[MAX_GAMEPADS];
diff --git a/app/streaming/input/mouse.cpp b/app/streaming/input/mouse.cpp
index 3adc4360..feb6d67b 100644
--- a/app/streaming/input/mouse.cpp
+++ b/app/streaming/input/mouse.cpp
@@ -13,7 +13,8 @@ void SdlInputHandler::handleMouseButtonEvent(SDL_MouseButtonEvent* event)
         return;
     }
     else if (!isCaptureActive()) {
-        if (event->button == SDL_BUTTON_LEFT && event->state == SDL_RELEASED) {
+        if (event->button == SDL_BUTTON_LEFT && event->state == SDL_RELEASED &&
+                isMouseInVideoRegion(event->x, event->y)) {
             // Capture the mouse again if clicked when unbound.
             // We start capture on left button released instead of
             // pressed to avoid sending an errant mouse button released
@@ -25,6 +26,10 @@ void SdlInputHandler::handleMouseButtonEvent(SDL_MouseButtonEvent* event)
         // Not capturing
         return;
     }
+    else if (m_AbsoluteMouseMode && !isMouseInVideoRegion(event->x, event->y) && event->state == SDL_PRESSED) {
+        // Ignore button presses outside the video region, but allow button releases
+        return;
+    }
 
     switch (event->button)
     {
@@ -105,6 +110,15 @@ void SdlInputHandler::handleMouseWheelEvent(SDL_MouseWheelEvent* event)
         return;
     }
 
+    if (m_AbsoluteMouseMode) {
+        int mouseX, mouseY;
+        SDL_GetMouseState(&mouseX, &mouseY);
+        if (!isMouseInVideoRegion(mouseX, mouseY)) {
+            // Ignore scroll events outside the video region
+            return;
+        }
+    }
+
     if (event->y != 0) {
         LiSendScrollEvent((signed char)event->y);
     }
@@ -150,6 +164,7 @@ Uint32 SdlInputHandler::mouseMoveTimerCallback(Uint32 interval, void *param)
         // the mouse position. We'll pick up the new position next time.
         if (SDL_AtomicTryLock(&me->m_MousePositionLock)) {
             SDL_Rect src, dst;
+            bool mouseInVideoRegion;
 
             src.x = src.y = 0;
             src.w = me->m_StreamWidth;
@@ -162,6 +177,11 @@ Uint32 SdlInputHandler::mouseMoveTimerCallback(Uint32 interval, void *param)
             // Use the stream and window sizes to determine the video region
             StreamUtils::scaleSourceToDestinationSurface(&src, &dst);
 
+            mouseInVideoRegion = me->isMouseInVideoRegion(me->m_MousePositionReport.x,
+                                                          me->m_MousePositionReport.y,
+                                                          me->m_MousePositionReport.windowWidth,
+                                                          me->m_MousePositionReport.windowHeight);
+
             // Clamp motion to the video region
             short x = qMin(qMax(me->m_MousePositionReport.x - dst.x, 0), dst.w);
             short y = qMin(qMax(me->m_MousePositionReport.y - dst.y, 0), dst.h);
@@ -169,8 +189,36 @@ Uint32 SdlInputHandler::mouseMoveTimerCallback(Uint32 interval, void *param)
             // Release the spinlock to unblock the main thread
             SDL_AtomicUnlock(&me->m_MousePositionLock);
 
-            // Send the mouse position update
-            LiSendMousePositionEvent(x, y, dst.w, dst.h);
+            // Send the mouse position update if one of the following is true:
+            // a) it is in the video region now
+            // b) it just left the video region (to ensure the mouse is clamped to the video boundary)
+            // c) a mouse button is still down from before the cursor left the video region (to allow smooth dragging)
+            Uint32 buttonState = SDL_GetMouseState(nullptr, nullptr);
+            if (buttonState == 0) {
+                me->m_PendingMouseButtonsAllUpOnVideoRegionLeave = false;
+            }
+            if (mouseInVideoRegion || me->m_MouseWasInVideoRegion || me->m_PendingMouseButtonsAllUpOnVideoRegionLeave) {
+                LiSendMousePositionEvent(x, y, dst.w, dst.h);
+            }
+
+            // Adjust the cursor visibility if applicable
+            if (mouseInVideoRegion ^ me->m_MouseWasInVideoRegion) {
+                // We must push an event for the main thread to process, because it's not safe
+                // to directly can SDL_ShowCursor() on the arbitrary thread on which this timer
+                // executes.
+                SDL_Event event;
+                event.type = SDL_USEREVENT;
+                event.user.code = mouseInVideoRegion ? SDL_CODE_HIDE_CURSOR : SDL_CODE_SHOW_CURSOR;
+                SDL_PushEvent(&event);
+
+                if (!mouseInVideoRegion && buttonState != 0) {
+                    // If we still have a button pressed on leave, wait for that to come up
+                    // before we stop sending mouse position events.
+                    me->m_PendingMouseButtonsAllUpOnVideoRegionLeave = true;
+                }
+            }
+
+            me->m_MouseWasInVideoRegion = mouseInVideoRegion;
         }
     }
 
diff --git a/app/streaming/session.cpp b/app/streaming/session.cpp
index 4ee57d92..5838432b 100644
--- a/app/streaming/session.cpp
+++ b/app/streaming/session.cpp
@@ -1195,8 +1195,19 @@ void Session::exec(int displayOriginX, int displayOriginY)
             goto DispatchDeferredCleanup;
 
         case SDL_USEREVENT:
-            SDL_assert(event.user.code == SDL_CODE_FRAME_READY);
-            m_VideoDecoder->renderFrameOnMainThread();
+            switch (event.user.code) {
+            case SDL_CODE_FRAME_READY:
+                m_VideoDecoder->renderFrameOnMainThread();
+                break;
+            case SDL_CODE_HIDE_CURSOR:
+                SDL_ShowCursor(SDL_DISABLE);
+                break;
+            case SDL_CODE_SHOW_CURSOR:
+                SDL_ShowCursor(SDL_ENABLE);
+                break;
+            default:
+                SDL_assert(false);
+            }
             break;
 
         case SDL_WINDOWEVENT: