diff --git a/ui/cocoa.m b/ui/cocoa.m
index 1a626e2..06951d0 100644
--- a/ui/cocoa.m
+++ b/ui/cocoa.m
@@ -256,7 +256,7 @@ static int cocoa_keycode_to_qemu(int keycode)
     BOOL isMouseGrabbed;
     BOOL isFullscreen;
     BOOL isAbsoluteEnabled;
-    BOOL isTabletEnabled;
+    BOOL isMouseDeassociated;
 }
 - (void) switchSurface:(DisplaySurface *)surface;
 - (void) grabMouse;
@@ -264,8 +264,21 @@ static int cocoa_keycode_to_qemu(int keycode)
 - (void) toggleFullScreen:(id)sender;
 - (void) handleEvent:(NSEvent *)event;
 - (void) setAbsoluteEnabled:(BOOL)tIsAbsoluteEnabled;
+/* The state surrounding mouse grabbing is potentially confusing.
+ * isAbsoluteEnabled tracks qemu_input_is_absolute() [ie "is the emulated
+ *   pointing device an absolute-position one?"], but is only updated on
+ *   next refresh.
+ * isMouseGrabbed tracks whether GUI events are directed to the guest;
+ *   it controls whether special keys like Cmd get sent to the guest,
+ *   and whether we capture the mouse when in non-absolute mode.
+ * isMouseDeassociated tracks whether we've told MacOSX to disassociate
+ *   the mouse and mouse cursor position by calling
+ *   CGAssociateMouseAndMouseCursorPosition(FALSE)
+ *   (which basically happens if we grab in non-absolute mode).
+ */
 - (BOOL) isMouseGrabbed;
 - (BOOL) isAbsoluteEnabled;
+- (BOOL) isMouseDeassociated;
 - (float) cdx;
 - (float) cdy;
 - (QEMUScreen) gscreen;
@@ -613,14 +626,12 @@ QemuCocoaView *cocoaView;
         case NSMouseMoved:
             if (isAbsoluteEnabled) {
                 if (![self screenContainsPoint:p] || ![[self window] isKeyWindow]) {
-                    if (isTabletEnabled) { // if we leave the window, deactivate the tablet
-                        [NSCursor unhide];
-                        isTabletEnabled = FALSE;
+                    if (isMouseGrabbed) {
+                        [self ungrabMouse];
                     }
                 } else {
-                    if (!isTabletEnabled) { // if we enter the window, activate the tablet
-                        [NSCursor hide];
-                        isTabletEnabled = TRUE;
+                    if (!isMouseGrabbed) {
+                        [self grabMouse];
                     }
                 }
             }
@@ -659,16 +670,9 @@ QemuCocoaView *cocoaView;
             mouse_event = true;
             break;
         case NSLeftMouseUp:
-            if (isTabletEnabled) {
-                    mouse_event = true;
-            } else if (!isMouseGrabbed) {
-                if ([self screenContainsPoint:p]) {
-                    [self grabMouse];
-                } else {
-                    [NSApp sendEvent:event];
-                }
-            } else {
-                mouse_event = true;
+            mouse_event = true;
+            if (!isMouseGrabbed && [self screenContainsPoint:p]) {
+                [self grabMouse];
             }
             break;
         case NSRightMouseUp:
@@ -678,13 +682,11 @@ QemuCocoaView *cocoaView;
             mouse_event = true;
             break;
         case NSScrollWheel:
-            if (isTabletEnabled || isMouseGrabbed) {
+            if (isMouseGrabbed) {
                 buttons |= ([event deltaY] < 0) ?
                     MOUSE_EVENT_WHEELUP : MOUSE_EVENT_WHEELDN;
-                mouse_event = true;
-            } else {
-                [NSApp sendEvent:event];
             }
+            mouse_event = true;
             break;
         default:
             [NSApp sendEvent:event];
@@ -702,12 +704,20 @@ QemuCocoaView *cocoaView;
             qemu_input_update_buttons(dcl->con, bmap, last_buttons, buttons);
             last_buttons = buttons;
         }
-        if (isTabletEnabled) {
-            qemu_input_queue_abs(dcl->con, INPUT_AXIS_X, p.x, screen.width);
-            qemu_input_queue_abs(dcl->con, INPUT_AXIS_Y, p.y, screen.height);
-        } else if (isMouseGrabbed) {
-            qemu_input_queue_rel(dcl->con, INPUT_AXIS_X, (int)[event deltaX]);
-            qemu_input_queue_rel(dcl->con, INPUT_AXIS_Y, (int)[event deltaY]);
+        if (isMouseGrabbed) {
+            if (isAbsoluteEnabled) {
+                /* Note that the origin for Cocoa mouse coords is bottom left, not top left.
+                 * The check on screenContainsPoint is to avoid sending out of range values for
+                 * clicks in the titlebar.
+                 */
+                if ([self screenContainsPoint:p]) {
+                    qemu_input_queue_abs(dcl->con, INPUT_AXIS_X, p.x, screen.width);
+                    qemu_input_queue_abs(dcl->con, INPUT_AXIS_Y, screen.height - p.y, screen.height);
+                }
+            } else {
+                qemu_input_queue_rel(dcl->con, INPUT_AXIS_X, (int)[event deltaX]);
+                qemu_input_queue_rel(dcl->con, INPUT_AXIS_Y, (int)[event deltaY]);
+            }
         } else {
             [NSApp sendEvent:event];
         }
@@ -726,7 +736,10 @@ QemuCocoaView *cocoaView;
             [normalWindow setTitle:@"QEMU - (Press ctrl + alt to release Mouse)"];
     }
     [NSCursor hide];
-    CGAssociateMouseAndMouseCursorPosition(FALSE);
+    if (!isAbsoluteEnabled) {
+        isMouseDeassociated = TRUE;
+        CGAssociateMouseAndMouseCursorPosition(FALSE);
+    }
     isMouseGrabbed = TRUE; // while isMouseGrabbed = TRUE, QemuCocoaApp sends all events to [cocoaView handleEvent:]
 }
 
@@ -741,13 +754,17 @@ QemuCocoaView *cocoaView;
             [normalWindow setTitle:@"QEMU"];
     }
     [NSCursor unhide];
-    CGAssociateMouseAndMouseCursorPosition(TRUE);
+    if (isMouseDeassociated) {
+        CGAssociateMouseAndMouseCursorPosition(TRUE);
+        isMouseDeassociated = FALSE;
+    }
     isMouseGrabbed = FALSE;
 }
 
 - (void) setAbsoluteEnabled:(BOOL)tIsAbsoluteEnabled {isAbsoluteEnabled = tIsAbsoluteEnabled;}
 - (BOOL) isMouseGrabbed {return isMouseGrabbed;}
 - (BOOL) isAbsoluteEnabled {return isAbsoluteEnabled;}
+- (BOOL) isMouseDeassociated {return isMouseDeassociated;}
 - (float) cdx {return cdx;}
 - (float) cdy {return cdy;}
 - (QEMUScreen) gscreen {return screen;}
