diff --git a/addons/xterm-addon-webgl/src/WebglRenderer.ts b/addons/xterm-addon-webgl/src/WebglRenderer.ts
index 43de1c98b2..6dcd306141 100644
--- a/addons/xterm-addon-webgl/src/WebglRenderer.ts
+++ b/addons/xterm-addon-webgl/src/WebglRenderer.ts
@@ -46,13 +46,14 @@ export class WebglRenderer extends Disposable implements IRenderer {
 
   private _canvas: HTMLCanvasElement;
   private _gl: IWebGL2RenderingContext;
-  private _rectangleRenderer: RectangleRenderer;
-  private _glyphRenderer: GlyphRenderer;
+  private _rectangleRenderer!: RectangleRenderer;
+  private _glyphRenderer!: GlyphRenderer;
 
   public dimensions: IRenderDimensions;
 
   private _core: ITerminal;
   private _isAttached: boolean;
+  private _contextRestorationTimeout: number | undefined;
 
   private _onChangeTextureAtlas = new EventEmitter<HTMLCanvasElement>();
   public get onChangeTextureAtlas(): IEvent<HTMLCanvasElement> { return this._onChangeTextureAtlas.event; }
@@ -108,16 +109,34 @@ export class WebglRenderer extends Disposable implements IRenderer {
       throw new Error('WebGL2 not supported ' + this._gl);
     }
 
-    this.register(addDisposableDomListener(this._canvas, 'webglcontextlost', (e) => { this._onContextLoss.fire(e); }));
+    this.register(addDisposableDomListener(this._canvas, 'webglcontextlost', (e) => {
+      console.log('webglcontextlost event received');
+      // Prevent the default behavior in order to enable WebGL context restoration.
+      e.preventDefault();
+      // Wait a few seconds to see if the 'webglcontextrestored' event is fired.
+      // If not, dispatch the onContextLoss notification to observers.
+      this._contextRestorationTimeout = setTimeout(() => {
+        this._contextRestorationTimeout = undefined;
+        console.warn('webgl context not restored; firing onContextLoss');
+        this._onContextLoss.fire(e);
+      }, 3000 /* ms */);
+    }));
+    this.register(addDisposableDomListener(this._canvas, 'webglcontextrestored', (e) => {
+      console.warn('webglcontextrestored event received');
+      clearTimeout(this._contextRestorationTimeout);
+      this._contextRestorationTimeout = undefined;
+      // The texture atlas and glyph renderer must be fully reinitialized
+      // because their contents have been lost.
+      removeTerminalFromCache(this._terminal);
+      this._initializeWebGLState();
+      this._requestRedrawViewport();
+    }));
+
     this.register(observeDevicePixelDimensions(this._canvas, (w, h) => this._setCanvasDevicePixelDimensions(w, h)));
 
     this._core.screenElement!.appendChild(this._canvas);
 
-    this._rectangleRenderer = this.register(new RectangleRenderer(this._terminal, this._colors, this._gl, this.dimensions));
-    this._glyphRenderer = this.register(new GlyphRenderer(this._terminal, this._colors, this._gl, this.dimensions));
-
-    // Update dimensions and acquire char atlas
-    this.onCharSizeChanged();
+    this._initializeWebGLState();
 
     this._isAttached = document.body.contains(this._core.screenElement!);
   }
@@ -235,6 +254,21 @@ export class WebglRenderer extends Disposable implements IRenderer {
     this._refreshCharAtlas();
   }
 
+  /**
+   * Initializes members dependent on WebGL context state.
+   */
+  private _initializeWebGLState(): void {
+    // Dispose any previous rectangle and glyph renderers before creating new ones.
+    this._rectangleRenderer?.dispose();
+    this._glyphRenderer?.dispose();
+
+    this._rectangleRenderer = new RectangleRenderer(this._terminal, this._colors, this._gl, this.dimensions);
+    this._glyphRenderer = new GlyphRenderer(this._terminal, this._colors, this._gl, this.dimensions);
+
+    // Update dimensions and acquire char atlas
+    this.onCharSizeChanged();
+  }
+
   /**
    * Refreshes the char atlas, aquiring a new one if necessary.
    * @param terminal The terminal.
diff --git a/demo/client.ts b/demo/client.ts
index 3593004a35..2557fb44ea 100644
--- a/demo/client.ts
+++ b/demo/client.ts
@@ -606,7 +606,7 @@ function htmlSerializeButtonHandler(): void {
 }
 
 function addTextureAtlas(e: HTMLCanvasElement) {
-  document.querySelector('#texture-atlas').appendChild(e);
+  document.querySelector('#texture-atlas').replaceChildren(e);
 }
 
 function writeCustomGlyphHandler() {