diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2fa883bc..ba70bd7f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -18,6 +18,10 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 - Regex terminal hints ([see features.md](./docs/features.md#hints))
 - macOS keybinding (cmd+alt+H) hiding all windows other than Alacritty
 
+### Changed
+
+- The vi mode cursor is now created in the top-left if the terminal cursor is invisible
+
 ### Fixed
 
 - Alacritty failing to start on X11 with invalid DPI reported by XRandr
diff --git a/alacritty_terminal/src/term/mod.rs b/alacritty_terminal/src/term/mod.rs
index 8d0fc0f8..c4425916 100644
--- a/alacritty_terminal/src/term/mod.rs
+++ b/alacritty_terminal/src/term/mod.rs
@@ -612,8 +612,15 @@ impl<T> Term<T> {
         self.mode ^= TermMode::VI;
 
         if self.mode.contains(TermMode::VI) {
-            // Reset vi mode cursor position to match primary cursor.
-            self.vi_mode_cursor = ViModeCursor::new(self.grid.cursor.point);
+            let display_offset = self.grid.display_offset() as i32;
+            if self.grid.cursor.point.line > self.bottommost_line() - display_offset {
+                // Move cursor to top-left if terminal cursor is not visible.
+                let point = Point::new(Line(-display_offset), Column(0));
+                self.vi_mode_cursor = ViModeCursor::new(point);
+            } else {
+                // Reset vi mode cursor position to match primary cursor.
+                self.vi_mode_cursor = ViModeCursor::new(self.grid.cursor.point);
+            }
         }
 
         // Update UI about cursor blinking state changes.