diff --git a/helix-term/src/application.rs b/helix-term/src/application.rs
index a1685fcfa956..55b743d1fc16 100644
--- a/helix-term/src/application.rs
+++ b/helix-term/src/application.rs
@@ -394,6 +394,13 @@ impl Application {
         // the configuration.
         self.editor.refresh_config();
 
+        match self.refresh_mouse(self.config.load().editor.mouse) {
+            Ok(_) => {}
+            Err(err) => {
+                self.editor.set_error(err.to_string());
+            }
+        }
+
         // reset view position in case softwrap was enabled/disabled
         let scrolloff = self.editor.config().scrolloff;
         for (view, _) in self.editor.tree.views_mut() {
@@ -402,6 +409,17 @@ impl Application {
         }
     }
 
+    /// refresh mouse state after config change
+    fn refresh_mouse(&self, enabled: bool) -> Result<(), Error> {
+        if enabled {
+            execute!(stdout(), EnableMouseCapture)
+                .map_err(|err| anyhow::anyhow!("Failed to enable mouse: {}", err))
+        } else {
+            execute!(stdout(), DisableMouseCapture)
+                .map_err(|err| anyhow::anyhow!("Failed to disable mouse: {}", err))
+        }
+    }
+
     /// refresh language config after config change
     fn refresh_language_config(&mut self) -> Result<(), Error> {
         let syntax_config = helix_core::config::user_syntax_loader()