diff --git a/term/src/terminalstate.rs b/term/src/terminalstate.rs
index e4f82d557..b1588c9ca 100644
--- a/term/src/terminalstate.rs
+++ b/term/src/terminalstate.rs
@@ -707,13 +707,20 @@ impl TerminalState {
         pixel_width: usize,
         pixel_height: usize,
     ) {
+        // Compute the change in the height of the viewport;
+        // we'll use this to adjust the cursor position below.
+        let y_delta = (physical_rows as i64) - (self.screen().physical_rows as i64);
         self.screen.resize(physical_rows, physical_cols);
         self.scroll_region = 0..physical_rows as i64;
         self.pixel_height = pixel_height;
         self.pixel_width = pixel_width;
         self.tabs.resize(physical_cols);
-        // Ensure that the cursor is within the new bounds of the screen
-        self.set_cursor_pos(&Position::Relative(0), &Position::Relative(0));
+        // Ensure that the cursor is within the new bounds of the screen.
+        // If we made the window smaller then we will have scrolled the
+        // viewport contents up by the delta.
+        // If we've made it larger then we do not want to adjust the
+        // cursor position
+        self.set_cursor_pos(&Position::Relative(0), &Position::Relative(y_delta.min(0)));
     }
 
     /// Clear the dirty flag for all dirty lines