diff --git a/src/mode/modeHandler.ts b/src/mode/modeHandler.ts
index f2b194ad8814..1eb451b28d1c 100644
--- a/src/mode/modeHandler.ts
+++ b/src/mode/modeHandler.ts
@@ -191,23 +191,6 @@ export class ModeHandler implements vscode.Disposable {
     private _configuration: Configuration;
     private _vimState: VimState;
 
-    // Caret Styling
-    private _caretDecoration = vscode.window.createTextEditorDecorationType(
-    {
-        dark: {
-            // used for dark colored themes
-            backgroundColor: 'rgba(224, 224, 224, 0.4)',
-            borderColor: 'rgba(240, 240, 240, 0.8)'
-        },
-        light: {
-            // used for light colored themes
-            backgroundColor: 'rgba(32, 32, 32, 0.4)',
-            borderColor: 'rgba(16, 16, 16, 0.8)'
-        },
-        borderStyle: 'solid',
-        borderWidth: '1px'
-    });
-
     private get currentModeName(): ModeName {
         return this.currentMode.name;
     }
@@ -248,6 +231,14 @@ export class ModeHandler implements vscode.Disposable {
 
             mode.isActive = (mode.name === modeName);
         }
+        // Draw block cursor.
+        // The reason we make a copy of options is because it's a
+        // getter/setter and it won't trigger it's event if we modify
+        // the object in place
+        const options = vscode.window.activeTextEditor.options;
+        options.cursorStyle = modeName === ModeName.Insert ?
+            vscode.TextEditorCursorStyle.Line : vscode.TextEditorCursorStyle.Block;
+        vscode.window.activeTextEditor.options = options;
 
         const statusBarText = (this.currentMode.name === ModeName.Normal) ? '' : ModeName[modeName];
         this.setupStatusBarItem(statusBarText ? `-- ${statusBarText.toUpperCase()} --` : '');
@@ -379,16 +370,6 @@ export class ModeHandler implements vscode.Disposable {
                 }
             }
 
-            // Draw block cursor.
-
-            if (this.currentMode.name !== ModeName.Insert) {
-                let range = new vscode.Range(stop, stop.getRight());
-                vscode.window.activeTextEditor.revealRange(range, vscode.TextEditorRevealType.InCenterIfOutsideViewport);
-                vscode.window.activeTextEditor.setDecorations(this._caretDecoration, [range]);
-            } else {
-                vscode.window.activeTextEditor.setDecorations(this._caretDecoration, []);
-            }
-
             // Draw selection (or cursor)
 
             if (this.currentMode.name === ModeName.Visual) {
diff --git a/test/mode/modeHandler.test.ts b/test/mode/modeHandler.test.ts
index c9ea770cb427..a64d179ea431 100644
--- a/test/mode/modeHandler.test.ts
+++ b/test/mode/modeHandler.test.ts
@@ -1,6 +1,7 @@
 "use strict";
 
 import * as assert from 'assert';
+import * as vscode from 'vscode';
 import {setupWorkspace, cleanUpWorkspace} from './../testUtils';
 import {ModeName} from '../../src/mode/mode';
 import {ModeHandler} from '../../src/mode/modeHandler';
@@ -32,4 +33,14 @@ suite("Mode Handler", () => {
         assert.equal(modeHandler.currentMode.Name, ModeName.Visual);
         */
     });
+
+    test("Uses correct cursor style depending on mode", async () => {
+        const modeHandler = new ModeHandler();
+
+        modeHandler.setCurrentModeByName(ModeName.Normal);
+        assert.equal(vscode.window.activeTextEditor.options.cursorStyle, vscode.TextEditorCursorStyle.Block);
+
+        modeHandler.setCurrentModeByName(ModeName.Insert);
+        assert.equal(vscode.window.activeTextEditor.options.cursorStyle, vscode.TextEditorCursorStyle.Line);
+    });
 });