diff --git a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/CodeCompletionWindow.cs b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/CodeCompletionWindow.cs
index 9c616fafde..dc8e8a1fee 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/CodeCompletionWindow.cs
+++ b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/CodeCompletionWindow.cs
@@ -79,6 +79,7 @@ namespace ICSharpCode.XmlEditor
 			
 			declarationViewWindow = new DeclarationViewWindow(parentForm);
 			SetDeclarationViewLocation();
+			declarationViewWindow.MouseMove += ControlMouseMove;
 			declarationViewWindow.ShowDeclarationViewWindow();
 			control.Focus();
 			CodeCompletionListViewSelectedItemChanged(this, EventArgs.Empty);
diff --git a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/AbstractCompletionWindow.cs b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/AbstractCompletionWindow.cs
index c139e53acd..6e07fb7905 100644
--- a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/AbstractCompletionWindow.cs
+++ b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/AbstractCompletionWindow.cs
@@ -125,6 +125,10 @@ namespace ICSharpCode.TextEditor.Gui.CompletionWindow
 			control.ActiveTextAreaControl.Caret.PositionChanged       += new EventHandler(CaretOffsetChanged);
 			control.ActiveTextAreaControl.TextArea.LostFocus          += new EventHandler(this.TextEditorLostFocus);
 			control.Resize += new EventHandler(ParentFormLocationChanged);
+			
+			foreach (Control c in Controls) {
+				c.MouseMove += ControlMouseMove;
+			}
 		}
 		
 		void ParentFormLocationChanged(object sender, EventArgs e)
@@ -168,6 +172,10 @@ namespace ICSharpCode.TextEditor.Gui.CompletionWindow
 			// take out the inserted methods
 			parentForm.LocationChanged -= new EventHandler(ParentFormLocationChanged);
 			
+			foreach (Control c in Controls) {
+				c.MouseMove -= ControlMouseMove;
+			}
+			
 			if (control.ActiveTextAreaControl.VScrollBar != null) {
 				control.ActiveTextAreaControl.VScrollBar.ValueChanged -= new EventHandler(ParentFormLocationChanged);
 			}
@@ -181,5 +189,25 @@ namespace ICSharpCode.TextEditor.Gui.CompletionWindow
 			control.Resize -= new EventHandler(ParentFormLocationChanged);
 			Dispose();
 		}
+		
+		protected override void OnMouseMove(MouseEventArgs e)
+		{
+			base.OnMouseMove(e);
+			ControlMouseMove(this, e);
+		}
+		
+		/// <summary>
+		/// Invoked when the mouse moves over this form or any child control.
+		/// Shows the mouse cursor on the text area if it has been hidden.
+		/// </summary>
+		/// <remarks>
+		/// Derived classes should attach this handler to the MouseMove event
+		/// of all created controls which are not added to the Controls
+		/// collection.
+		/// </remarks>
+		protected void ControlMouseMove(object sender, MouseEventArgs e)
+		{
+			control.ActiveTextAreaControl.TextArea.ShowHiddenCursor(false);
+		}
 	}
 }
diff --git a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/CodeCompletionWindow.cs b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/CodeCompletionWindow.cs
index fd44816ad1..f984f85ad6 100644
--- a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/CodeCompletionWindow.cs
+++ b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/CompletionWindow/CodeCompletionWindow.cs
@@ -79,6 +79,7 @@ namespace ICSharpCode.TextEditor.Gui.CompletionWindow
 			}
 			SetDeclarationViewLocation();
 			declarationViewWindow.ShowDeclarationViewWindow();
+			declarationViewWindow.MouseMove += ControlMouseMove;
 			control.Focus();
 			CodeCompletionListViewSelectedItemChanged(this, EventArgs.Empty);
 			
diff --git a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextArea.cs b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextArea.cs
index 10addd8b38..44a1fdc40c 100644
--- a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextArea.cs
+++ b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextArea.cs
@@ -29,12 +29,12 @@ namespace ICSharpCode.TextEditor
 	[ToolboxItem(false)]
 	public class TextArea : Control
 	{
-		internal bool HiddenMouseCursor = false;
+		bool hiddenMouseCursor = false;
 		/// <summary>
 		/// The position where the mouse cursor was when it was hidden. Sometimes the text editor gets MouseMove
 		/// events when typing text even if the mouse is not moved.
 		/// </summary>
-		internal Point MouseCursorHidePosition;
+		Point mouseCursorHidePosition;
 		
 		Point virtualTop        = new Point(0, 0);
 		TextAreaControl         motherTextAreaControl;
@@ -315,6 +315,20 @@ namespace ICSharpCode.TextEditor
 			}
 		}
 		
+		/// <summary>
+		/// Shows the mouse cursor if it has been hidden.
+		/// </summary>
+		/// <param name="forceShow"><c>true</c> to always show the cursor or <c>false</c> to show it only if it has been moved since it was hidden.</param>
+		internal void ShowHiddenCursor(bool forceShow)
+		{
+			if (hiddenMouseCursor) {
+				if (mouseCursorHidePosition != Cursor.Position || forceShow) {
+					Cursor.Show();
+					hiddenMouseCursor = false;
+				}
+			}
+		}
+		
 		
 		// static because the mouse can only be in one text area and we don't want to have
 		// tooltips of text areas from inactive tabs floating around.
@@ -576,10 +590,10 @@ namespace ICSharpCode.TextEditor
 				return;
 			}
 			
-			if (!HiddenMouseCursor && TextEditorProperties.HideMouseCursor) {
+			if (!hiddenMouseCursor && TextEditorProperties.HideMouseCursor) {
 				if (this.ClientRectangle.Contains(PointToClient(Cursor.Position))) {
-					MouseCursorHidePosition = Cursor.Position;
-					HiddenMouseCursor = true;
+					mouseCursorHidePosition = Cursor.Position;
+					hiddenMouseCursor = true;
 					Cursor.Hide();
 				}
 			}
diff --git a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextAreaMouseHandler.cs b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextAreaMouseHandler.cs
index e19e30f98e..7bf8d1c678 100644
--- a/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextAreaMouseHandler.cs
+++ b/src/Libraries/ICSharpCode.TextEditor/Project/Src/Gui/TextAreaMouseHandler.cs
@@ -91,23 +91,26 @@ namespace ICSharpCode.TextEditor
 			}
 		}
 		
-		void ShowHiddenCursor(bool forceShow)
+		void ShowHiddenCursorIfMovedOrLeft()
 		{
-			if (textArea.HiddenMouseCursor) {
-				if (textArea.MouseCursorHidePosition != Cursor.Position) {
-					Cursor.Show();
-					textArea.HiddenMouseCursor = false;
-				}
-			}
+			textArea.ShowHiddenCursor(!textArea.Focused ||
+			                          !textArea.ClientRectangle.Contains(textArea.PointToClient(Cursor.Position)));
 		}
 		
 		void TextAreaLostFocus(object sender, EventArgs e)
 		{
-			ShowHiddenCursor(true);
+			// The call to ShowHiddenCursorIfMovedOrLeft is delayed
+			// until pending messages have been processed
+			// so that it can properly detect whether the TextArea
+			// has really lost focus.
+			// For example, the CodeCompletionWindow gets focus when it is shown,
+			// but immediately gives back focus to the TextArea.
+			textArea.BeginInvoke(new MethodInvoker(ShowHiddenCursorIfMovedOrLeft));
 		}
+		
 		void OnMouseLeave(object sender, EventArgs e)
 		{
-			ShowHiddenCursor(true);
+			ShowHiddenCursorIfMovedOrLeft();
 			gotmousedown = false;
 			mousedownpos = nilPoint;
 		}
@@ -157,7 +160,7 @@ namespace ICSharpCode.TextEditor
 					break;
 
 			}
-			ShowHiddenCursor(false);
+			textArea.ShowHiddenCursor(false);
 			if (dodragdrop) {
 				dodragdrop = false;
 				return;