diff --git a/.tmux.conf b/.tmux.conf
index 260397d..e724be0 100644
--- a/.tmux.conf
+++ b/.tmux.conf
@@ -71,3 +71,5 @@ bind-key -r J resize-pane -D 2
 bind-key -r K resize-pane -U 2
 bind-key -r H resize-pane -L 10
 bind-key -r L resize-pane -R 10
+
+set-option -g terminal-overrides '*88col*:colors=88,*256col*:colors=256,xterm*:XT:Ms=\E]52;%p1%s;%p2%s\007:Cs=\E]12;%p1%s\007:Cr=\E]112\007:Ss=\E]50;CursorShape=%?%p1%{3}%<%t%{0}%e%p1%{2}%-%;%d\007'
diff --git a/.vimrc b/.vimrc
index a82f3cf..7bba089 100644
--- a/.vimrc
+++ b/.vimrc
@@ -261,3 +261,9 @@ let g:ctrlp_prompt_mappings = {
 
 " Auto-open a split pane with an applicable diff for git commits
 autocmd FileType gitcommit DiffGitCached | wincmd L | wincmd p | vertical resize 83
+
+" Change cursor shape between insert and normal mode in iTerm2.app
+if $TERM_PROGRAM =~ "iTerm"
+    let &t_SI = "\<Esc>Ptmux;\<Esc>\<Esc>]50;CursorShape=1\x7\<Esc>\\" " Vertical bar in insert mode
+    let &t_EI = "\<Esc>Ptmux;\<Esc>\<Esc>]50;CursorShape=0\x7\<Esc>\\" " Block in normal mode
+endif
diff --git a/.zshrc b/.zshrc
index 031ece0..65a63ec 100644
--- a/.zshrc
+++ b/.zshrc
@@ -138,16 +138,54 @@ precmd () {
 local git='$vcs_info_msg_0_'
 
 # Custom status line
-PS1="[`hostname | sed 's/\..*//'`] $(active_virtualenv)${git}${fg_lblue}%~ ${fg_white}$ "
+PS1="[`hostname | sed 's/\..*//'`] $(active_virtualenv)${git}${fg_lblue}%~ ${fg_white}"
+
+# Show a different cursor for different vim modes
+function zle-keymap-select zle-line-init
+{
+    # change cursor shape in iTerm2
+    if [[ $TMUX != "" ]]
+    then
+        case $KEYMAP in
+            vicmd)      print -n -- "\033Ptmux;\033\E]50;CursorShape=0\C-G\033\\";;  # block cursor
+            viins|main) print -n -- "\033Ptmux;\033\E]50;CursorShape=1\C-G\033\\";;  # line cursor
+        esac
+    else
+        case $KEYMAP in
+            vicmd)      print -n -- "\E]50;CursorShape=0\C-G";;  # block cursor
+            viins|main) print -n -- "\E]50;CursorShape=1\C-G";;  # line cursor
+        esac
+    fi
 
-# Show a green $ on the status line when vim mode is -- INSERT --
-function zle-line-init zle-keymap-select {
-    PS1="[`hostname | sed 's/\..*//'`] $(active_virtualenv)${git}${fg_lblue}%~ ${fg_lgreen}${${KEYMAP/vicmd/}/(main|viins)/$}${fg_white}${${KEYMAP/vicmd/$}/(main|viins)/}${fg_white} "
     zle reset-prompt
+    zle -R
 }
+
+function zle-line-finish
+{
+    if [[ $TMUX != "" ]]
+    then
+        print -n -- "\033Ptmux;\033\E]50;CursorShape=0\C-G\033\\"
+    else
+        print -n -- "\E]50;CursorShape=0\C-G"
+    fi
+}
+
 zle -N zle-line-init
+zle -N zle-line-finish
 zle -N zle-keymap-select
 
+# # 10ms for key sequences
+KEYTIMEOUT=1
+
+# init cursor, apparently only needed for tmux, but left the conditional for consistency
+if [[ $TMUX != "" ]]
+then
+    print -n -- "\033Ptmux;\033\E]50;CursorShape=0\C-G\033\\"
+else
+    print -n -- "\E]50;CursorShape=0\C-G"
+fi
+
 # -----------------------------------------------
 # Set up zsh-specifics
 # -----------------------------------------------