diff --git a/assets/settings/default.json b/assets/settings/default.json
index 23ce584c96..946c1847b5 100644
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -164,8 +164,8 @@
   //
   // Default: not set, defaults to "bar"
   "cursor_shape": null,
-  // Determines whether the mouse cursor is hidden when typing in an editor or input box.
-  "hide_mouse_while_typing": true,
+  // Determines when the mouse cursor should be hidden in an editor or input box.
+  "hide_mouse": "on_typing_and_movement",
   // How to highlight the current line in the editor.
   //
   // 1. Don't highlight the current line:
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index a2b720a4b1..85eb34416c 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -62,7 +62,8 @@ use display_map::*;
 pub use display_map::{DisplayPoint, FoldPlaceholder};
 use editor_settings::GoToDefinitionFallback;
 pub use editor_settings::{
-    CurrentLineHighlight, EditorSettings, ScrollBeyondLastLine, SearchSettings, ShowScrollbar,
+    CurrentLineHighlight, EditorSettings, HideMouseMode, ScrollBeyondLastLine, SearchSettings,
+    ShowScrollbar,
 };
 pub use editor_settings_controls::*;
 use element::{layout_line, AcceptEditPredictionBinding, LineWithInvisibles, PositionMap};
@@ -292,6 +293,11 @@ enum DisplayDiffHunk {
     },
 }
 
+pub enum HideMouseCursorOrigin {
+    TypingAction,
+    MovementAction,
+}
+
 pub fn init_settings(cx: &mut App) {
     EditorSettings::register(cx);
 }
@@ -805,7 +811,7 @@ pub struct Editor {
     serialize_selections: Task<()>,
     serialize_folds: Task<()>,
     mouse_cursor_hidden: bool,
-    hide_mouse_while_typing: bool,
+    hide_mouse_mode: HideMouseMode,
 }
 
 #[derive(Copy, Clone, Debug, PartialEq, Eq, Default)]
@@ -1586,9 +1592,9 @@ impl Editor {
             text_style_refinement: None,
             load_diff_task: load_uncommitted_diff,
             mouse_cursor_hidden: false,
-            hide_mouse_while_typing: EditorSettings::get_global(cx)
-                .hide_mouse_while_typing
-                .unwrap_or(true),
+            hide_mouse_mode: EditorSettings::get_global(cx)
+                .hide_mouse
+                .unwrap_or_default(),
         };
         if let Some(breakpoints) = this.breakpoint_store.as_ref() {
             this._subscriptions
@@ -1722,6 +1728,20 @@ impl Editor {
         key_context
     }
 
+    pub fn hide_mouse_cursor(&mut self, origin: &HideMouseCursorOrigin) {
+        self.mouse_cursor_hidden = match origin {
+            HideMouseCursorOrigin::TypingAction => {
+                matches!(
+                    self.hide_mouse_mode,
+                    HideMouseMode::OnTyping | HideMouseMode::OnTypingAndMovement
+                )
+            }
+            HideMouseCursorOrigin::MovementAction => {
+                matches!(self.hide_mouse_mode, HideMouseMode::OnTypingAndMovement)
+            }
+        };
+    }
+
     pub fn edit_prediction_in_conflict(&self) -> bool {
         if !self.show_edit_predictions_in_menu() {
             return false;
@@ -3049,7 +3069,7 @@ impl Editor {
             return;
         }
 
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
 
         let selections = self.selections.all_adjusted(cx);
         let mut bracket_inserted = false;
@@ -3455,7 +3475,7 @@ impl Editor {
     }
 
     pub fn newline(&mut self, _: &Newline, window: &mut Window, cx: &mut Context<Self>) {
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             let (edits, selection_fixup_info): (Vec<_>, Vec<_>) = {
                 let selections = this.selections.all::<usize>(cx);
@@ -3571,7 +3591,7 @@ impl Editor {
     }
 
     pub fn newline_above(&mut self, _: &NewlineAbove, window: &mut Window, cx: &mut Context<Self>) {
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
 
         let buffer = self.buffer.read(cx);
         let snapshot = buffer.snapshot(cx);
@@ -3630,7 +3650,7 @@ impl Editor {
     }
 
     pub fn newline_below(&mut self, _: &NewlineBelow, window: &mut Window, cx: &mut Context<Self>) {
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
 
         let buffer = self.buffer.read(cx);
         let snapshot = buffer.snapshot(cx);
@@ -4493,6 +4513,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Option<Task<Result<()>>> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.do_completion(action.item_ix, CompletionIntent::Complete, window, cx)
     }
 
@@ -4502,6 +4523,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Option<Task<Result<()>>> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.do_completion(action.item_ix, CompletionIntent::Compose, window, cx)
     }
 
@@ -4845,6 +4867,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Option<Task<Result<()>>> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let actions_menu =
             if let CodeContextMenu::CodeActions(menu) = self.hide_context_menu(window, cx)? {
                 menu
@@ -7842,7 +7866,7 @@ impl Editor {
     }
 
     pub fn backspace(&mut self, _: &Backspace, window: &mut Window, cx: &mut Context<Self>) {
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.select_autoclose_pair(window, cx);
             let mut linked_ranges = HashMap::<_, Vec<_>>::default();
@@ -7941,7 +7965,7 @@ impl Editor {
     }
 
     pub fn delete(&mut self, _: &Delete, window: &mut Window, cx: &mut Context<Self>) {
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
                 let line_mode = s.line_mode;
@@ -7960,18 +7984,22 @@ impl Editor {
     }
 
     pub fn backtab(&mut self, _: &Backtab, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         if self.move_to_prev_snippet_tabstop(window, cx) {
             return;
         }
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
         self.outdent(&Outdent, window, cx);
     }
 
     pub fn tab(&mut self, _: &Tab, window: &mut Window, cx: &mut Context<Self>) {
-        if self.move_to_next_snippet_tabstop(window, cx) || self.read_only(cx) {
+        if self.move_to_next_snippet_tabstop(window, cx) {
+            self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
             return;
         }
-        self.mouse_cursor_hidden = self.hide_mouse_while_typing;
+        if self.read_only(cx) {
+            return;
+        }
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let mut selections = self.selections.all_adjusted(cx);
         let buffer = self.buffer.read(cx);
         let snapshot = buffer.snapshot(cx);
@@ -8052,6 +8080,7 @@ impl Editor {
         if self.read_only(cx) {
             return;
         }
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let mut selections = self.selections.all::<Point>(cx);
         let mut prev_edited_row = 0;
         let mut row_delta = 0;
@@ -8156,6 +8185,7 @@ impl Editor {
         if self.read_only(cx) {
             return;
         }
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let selections = self.selections.all::<Point>(cx);
         let mut deletion_ranges = Vec::new();
@@ -8229,6 +8259,7 @@ impl Editor {
         if self.read_only(cx) {
             return;
         }
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let selections = self
             .selections
             .all::<usize>(cx)
@@ -8247,6 +8278,7 @@ impl Editor {
     }
 
     pub fn delete_line(&mut self, _: &DeleteLine, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let selections = self.selections.all::<Point>(cx);
 
@@ -8395,6 +8427,7 @@ impl Editor {
     }
 
     pub fn join_lines(&mut self, _: &JoinLines, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.join_lines_impl(true, window, cx);
     }
 
@@ -8456,6 +8489,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let mut buffer_ids = HashSet::default();
         let snapshot = self.buffer().read(cx).snapshot(cx);
         for selection in self.selections.all::<usize>(cx) {
@@ -8472,6 +8506,7 @@ impl Editor {
     }
 
     pub fn git_restore(&mut self, _: &Restore, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let selections = self
             .selections
             .all(cx)
@@ -8854,6 +8889,8 @@ impl Editor {
     ) where
         Fn: FnMut(&mut Vec<&str>),
     {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let buffer = self.buffer.read(cx).snapshot(cx);
 
@@ -9092,6 +9129,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let buffer = &display_map.buffer_snapshot;
         let selections = self.selections.all::<Point>(cx);
@@ -9176,6 +9215,8 @@ impl Editor {
     }
 
     pub fn move_line_up(&mut self, _: &MoveLineUp, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let buffer = self.buffer.read(cx).snapshot(cx);
 
@@ -9281,6 +9322,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let buffer = self.buffer.read(cx).snapshot(cx);
 
@@ -9371,6 +9414,7 @@ impl Editor {
     }
 
     pub fn transpose(&mut self, _: &Transpose, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let text_layout_details = &self.text_layout_details(window);
         self.transact(window, cx, |this, window, cx| {
             let edits = this.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
@@ -9429,6 +9473,7 @@ impl Editor {
     }
 
     pub fn rewrap(&mut self, _: &Rewrap, _: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.rewrap_impl(RewrapOptions::default(), cx)
     }
 
@@ -9644,11 +9689,13 @@ impl Editor {
     }
 
     pub fn cut(&mut self, _: &Cut, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let item = self.cut_common(window, cx);
         cx.write_to_clipboard(item);
     }
 
     pub fn kill_ring_cut(&mut self, _: &KillRingCut, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.change_selections(None, window, cx, |s| {
             s.move_with(|snapshot, sel| {
                 if sel.is_empty() {
@@ -9666,6 +9713,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let (text, metadata) = if let Some(KillRing(item)) = cx.try_global() {
             if let Some(ClipboardEntry::String(kill_ring)) = item.entries().first() {
                 (kill_ring.text().to_string(), kill_ring.metadata_json())
@@ -9854,6 +9902,7 @@ impl Editor {
     }
 
     pub fn paste(&mut self, _: &Paste, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         if let Some(item) = cx.read_from_clipboard() {
             let entries = item.entries();
 
@@ -9878,6 +9927,8 @@ impl Editor {
             return;
         }
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         if let Some(transaction_id) = self.buffer.update(cx, |buffer, cx| buffer.undo(cx)) {
             if let Some((selections, _)) =
                 self.selection_history.transaction(transaction_id).cloned()
@@ -9906,6 +9957,8 @@ impl Editor {
             return;
         }
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         if let Some(transaction_id) = self.buffer.update(cx, |buffer, cx| buffer.redo(cx)) {
             if let Some((_, Some(selections))) =
                 self.selection_history.transaction(transaction_id).cloned()
@@ -9939,6 +9992,7 @@ impl Editor {
     }
 
     pub fn move_left(&mut self, _: &MoveLeft, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             let line_mode = s.line_mode;
             s.move_with(|map, selection| {
@@ -9953,12 +10007,14 @@ impl Editor {
     }
 
     pub fn select_left(&mut self, _: &SelectLeft, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| (movement::left(map, head), SelectionGoal::None));
         })
     }
 
     pub fn move_right(&mut self, _: &MoveRight, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             let line_mode = s.line_mode;
             s.move_with(|map, selection| {
@@ -9973,6 +10029,7 @@ impl Editor {
     }
 
     pub fn select_right(&mut self, _: &SelectRight, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| (movement::right(map, head), SelectionGoal::None));
         })
@@ -9988,6 +10045,8 @@ impl Editor {
             return;
         }
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let text_layout_details = &self.text_layout_details(window);
         let selection_count = self.selections.count();
         let first_selection = self.selections.first_anchor();
@@ -10030,6 +10089,8 @@ impl Editor {
             return;
         }
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let text_layout_details = &self.text_layout_details(window);
 
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
@@ -10066,6 +10127,8 @@ impl Editor {
             return;
         }
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let text_layout_details = &self.text_layout_details(window);
 
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
@@ -10093,6 +10156,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let text_layout_details = &self.text_layout_details(window);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, goal| {
@@ -10107,6 +10171,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let text_layout_details = &self.text_layout_details(window);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, goal| {
@@ -10125,6 +10190,8 @@ impl Editor {
             return;
         };
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let text_layout_details = &self.text_layout_details(window);
 
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
@@ -10163,6 +10230,8 @@ impl Editor {
             return;
         };
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let autoscroll = if action.center_cursor {
             Autoscroll::center()
         } else {
@@ -10191,6 +10260,7 @@ impl Editor {
     }
 
     pub fn select_up(&mut self, _: &SelectUp, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let text_layout_details = &self.text_layout_details(window);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, goal| {
@@ -10207,6 +10277,8 @@ impl Editor {
             return;
         }
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let text_layout_details = &self.text_layout_details(window);
         let selection_count = self.selections.count();
         let first_selection = self.selections.first_anchor();
@@ -10244,6 +10316,8 @@ impl Editor {
             return;
         };
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let text_layout_details = &self.text_layout_details(window);
 
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
@@ -10282,6 +10356,8 @@ impl Editor {
             return;
         };
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let autoscroll = if action.center_cursor {
             Autoscroll::center()
         } else {
@@ -10309,6 +10385,7 @@ impl Editor {
     }
 
     pub fn select_down(&mut self, _: &SelectDown, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let text_layout_details = &self.text_layout_details(window);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, goal| {
@@ -10367,6 +10444,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_cursors_with(|map, head, _| {
                 (
@@ -10383,6 +10461,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_cursors_with(|map, head, _| {
                 (
@@ -10399,6 +10478,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10415,6 +10495,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10431,6 +10512,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.select_autoclose_pair(window, cx);
             this.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
@@ -10456,6 +10538,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.select_autoclose_pair(window, cx);
             this.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
@@ -10477,6 +10560,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_cursors_with(|map, head, _| {
                 (movement::next_word_end(map, head), SelectionGoal::None)
@@ -10490,6 +10574,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_cursors_with(|map, head, _| {
                 (movement::next_subword_end(map, head), SelectionGoal::None)
@@ -10503,6 +10588,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (movement::next_word_end(map, head), SelectionGoal::None)
@@ -10516,6 +10602,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (movement::next_subword_end(map, head), SelectionGoal::None)
@@ -10529,6 +10616,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
                 let line_mode = s.line_mode;
@@ -10553,6 +10641,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
                 s.move_with(|map, selection| {
@@ -10572,6 +10661,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_cursors_with(|map, head, _| {
                 (
@@ -10593,6 +10683,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10614,6 +10705,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
                 s.move_with(|_, selection| {
@@ -10639,6 +10731,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_cursors_with(|map, head, _| {
                 (
@@ -10655,6 +10748,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10671,6 +10765,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.select_to_end_of_line(
                 &SelectToEndOfLine {
@@ -10689,6 +10784,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             this.select_to_end_of_line(
                 &SelectToEndOfLine {
@@ -10711,7 +10807,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_with(|map, selection| {
                 selection.collapse_to(
@@ -10732,7 +10828,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_with(|map, selection| {
                 selection.collapse_to(
@@ -10753,7 +10849,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10774,7 +10870,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10795,7 +10891,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_with(|map, selection| {
                 selection.collapse_to(
@@ -10845,7 +10941,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_with(|map, selection| {
                 selection.collapse_to(
@@ -10870,7 +10966,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_with(|map, selection| {
                 selection.collapse_to(
@@ -10895,7 +10991,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10916,7 +11012,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10937,7 +11033,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10958,7 +11054,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_heads_with(|map, head, _| {
                 (
@@ -10979,7 +11075,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.select_ranges(vec![0..0]);
         });
@@ -10993,7 +11089,7 @@ impl Editor {
     ) {
         let mut selection = self.selections.last::<Point>(cx);
         selection.set_head(Point::zero(), SelectionGoal::None);
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.select(vec![selection]);
         });
@@ -11004,7 +11100,7 @@ impl Editor {
             cx.propagate();
             return;
         }
-
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let cursor = self.buffer.read(cx).read(cx).len();
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.select_ranges(vec![cursor..cursor])
@@ -11061,6 +11157,7 @@ impl Editor {
     }
 
     pub fn select_to_end(&mut self, _: &SelectToEnd, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let buffer = self.buffer.read(cx).snapshot(cx);
         let mut selection = self.selections.first::<usize>(cx);
         selection.set_head(buffer.len(), SelectionGoal::None);
@@ -11070,6 +11167,7 @@ impl Editor {
     }
 
     pub fn select_all(&mut self, _: &SelectAll, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let end = self.buffer.read(cx).read(cx).len();
         self.change_selections(None, window, cx, |s| {
             s.select_ranges(vec![0..end]);
@@ -11077,6 +11175,7 @@ impl Editor {
     }
 
     pub fn select_line(&mut self, _: &SelectLine, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let mut selections = self.selections.all::<Point>(cx);
         let max_point = display_map.buffer_snapshot.max_point();
@@ -11147,6 +11246,8 @@ impl Editor {
     }
 
     fn add_selection(&mut self, above: bool, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let mut selections = self.selections.all::<Point>(cx);
         let text_layout_details = self.text_layout_details(window);
@@ -11427,6 +11528,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Result<()> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         self.push_to_selection_history();
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
 
@@ -11512,6 +11615,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Result<()> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.push_to_selection_history();
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         self.select_next_match_internal(
@@ -11530,6 +11634,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Result<()> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.push_to_selection_history();
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let buffer = &display_map.buffer_snapshot;
@@ -11676,6 +11781,7 @@ impl Editor {
         if self.read_only(cx) {
             return;
         }
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let text_layout_details = &self.text_layout_details(window);
         self.transact(window, cx, |this, window, cx| {
             let mut selections = this.selections.all::<MultiBufferPoint>(cx);
@@ -11975,6 +12081,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let buffer = self.buffer.read(cx).snapshot(cx);
         let old_selections = self.selections.all::<usize>(cx).into_boxed_slice();
 
@@ -12036,6 +12144,8 @@ impl Editor {
             return;
         }
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         let display_map = self.display_map.update(cx, |map, cx| map.snapshot(cx));
         let buffer = self.buffer.read(cx).snapshot(cx);
 
@@ -12144,6 +12254,8 @@ impl Editor {
             return;
         };
 
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
+
         if let Some((mut selections, scroll_behavior, is_selection_reversed)) =
             self.select_syntax_node_history.pop()
         {
@@ -12337,6 +12449,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
             s.move_offsets_with(|snapshot, selection| {
                 let Some(enclosing_bracket_ranges) =
@@ -12397,6 +12510,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.end_selection(window, cx);
         self.selection_history.mode = SelectionHistoryMode::Undoing;
         if let Some(entry) = self.selection_history.undo_stack.pop_back() {
@@ -12417,6 +12531,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.end_selection(window, cx);
         self.selection_history.mode = SelectionHistoryMode::Redoing;
         if let Some(entry) = self.selection_history.redo_stack.pop_back() {
@@ -12539,6 +12654,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.go_to_diagnostic_impl(Direction::Next, window, cx)
     }
 
@@ -12548,6 +12664,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         self.go_to_diagnostic_impl(Direction::Prev, window, cx)
     }
 
@@ -12694,6 +12811,7 @@ impl Editor {
     }
 
     fn go_to_next_hunk(&mut self, _: &GoToHunk, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let snapshot = self.snapshot(window, cx);
         let selection = self.selections.newest::<Point>(cx);
         self.go_to_hunk_before_or_after_position(
@@ -12754,6 +12872,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::MovementAction);
         let snapshot = self.snapshot(window, cx);
         let selection = self.selections.newest::<Point>(cx);
         self.go_to_hunk_before_or_after_position(
@@ -13238,6 +13357,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Option<Task<Result<Navigated>>> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let selection = self.selections.newest::<usize>(cx);
         let multi_buffer = self.buffer.read(cx);
         let head = selection.head();
@@ -13712,6 +13833,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Option<Task<Result<()>>> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let project = match &self.project {
             Some(project) => project.clone(),
             None => return None,
@@ -13732,6 +13855,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Option<Task<Result<()>>> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let project = match &self.project {
             Some(project) => project.clone(),
             None => return None,
@@ -13829,6 +13954,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) -> Option<Task<Result<()>>> {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let project = match &self.project {
             Some(project) => project.clone(),
             None => return None,
@@ -15073,6 +15199,8 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
+
         let buffers = self.buffer.read(cx).all_buffers();
         for branch_buffer in buffers {
             branch_buffer.update(cx, |branch_buffer, cx| {
@@ -15091,6 +15219,7 @@ impl Editor {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         let snapshot = self.snapshot(window, cx);
         let hunks = snapshot.hunks_for_ranges(self.selections.ranges(cx));
         let mut ranges_by_buffer = HashMap::default();
@@ -15964,6 +16093,7 @@ impl Editor {
     }
 
     fn insert_uuid(&mut self, version: UuidVersion, window: &mut Window, cx: &mut Context<Self>) {
+        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);
         self.transact(window, cx, |this, window, cx| {
             let edits = this
                 .selections
@@ -16757,11 +16887,7 @@ impl Editor {
             self.scroll_manager.vertical_scroll_margin = editor_settings.vertical_scroll_margin;
             self.show_breadcrumbs = editor_settings.toolbar.breadcrumbs;
             self.cursor_shape = editor_settings.cursor_shape.unwrap_or_default();
-            self.hide_mouse_while_typing = editor_settings.hide_mouse_while_typing.unwrap_or(true);
-
-            if !self.hide_mouse_while_typing {
-                self.mouse_cursor_hidden = false;
-            }
+            self.hide_mouse_mode = editor_settings.hide_mouse.unwrap_or_default();
         }
 
         if old_cursor_shape != self.cursor_shape {
diff --git a/crates/editor/src/editor_settings.rs b/crates/editor/src/editor_settings.rs
index 30c1eae5fb..5622c0c398 100644
--- a/crates/editor/src/editor_settings.rs
+++ b/crates/editor/src/editor_settings.rs
@@ -39,7 +39,7 @@ pub struct EditorSettings {
     #[serde(default)]
     pub go_to_definition_fallback: GoToDefinitionFallback,
     pub jupyter: Jupyter,
-    pub hide_mouse_while_typing: Option<bool>,
+    pub hide_mouse: Option<HideMouseMode>,
 }
 
 #[derive(Copy, Clone, Debug, Serialize, Deserialize, PartialEq, Eq, JsonSchema)]
@@ -225,6 +225,21 @@ pub enum GoToDefinitionFallback {
     FindAllReferences,
 }
 
+/// Determines when the mouse cursor should be hidden in an editor or input box.
+///
+/// Default: on_typing_and_movement
+#[derive(Copy, Clone, Debug, Default, Serialize, Deserialize, PartialEq, Eq, JsonSchema)]
+#[serde(rename_all = "snake_case")]
+pub enum HideMouseMode {
+    /// Never hide the mouse cursor
+    Never,
+    /// Hide only when typing
+    OnTyping,
+    /// Hide on both typing and cursor movement
+    #[default]
+    OnTypingAndMovement,
+}
+
 #[derive(Clone, Default, Serialize, Deserialize, JsonSchema)]
 pub struct EditorSettingsContent {
     /// Whether the cursor blinks in the editor.
@@ -236,10 +251,10 @@ pub struct EditorSettingsContent {
     ///
     /// Default: None
     pub cursor_shape: Option<CursorShape>,
-    /// Determines whether the mouse cursor should be hidden while typing in an editor or input box.
+    /// Determines when the mouse cursor should be hidden in an editor or input box.
     ///
-    /// Default: true
-    pub hide_mouse_while_typing: Option<bool>,
+    /// Default: on_typing_and_movement
+    pub hide_mouse: Option<HideMouseMode>,
     /// How to highlight the current line in the editor.
     ///
     /// Default: all
diff --git a/crates/migrator/src/migrations.rs b/crates/migrator/src/migrations.rs
index e4b9894ae0..a0a070051c 100644
--- a/crates/migrator/src/migrations.rs
+++ b/crates/migrator/src/migrations.rs
@@ -31,3 +31,9 @@ pub(crate) mod m_2025_03_06 {
 
     pub(crate) use keymap::KEYMAP_PATTERNS;
 }
+
+pub(crate) mod m_2025_03_29 {
+    mod settings;
+
+    pub(crate) use settings::SETTINGS_PATTERNS;
+}
diff --git a/crates/migrator/src/migrations/m_2025_03_29/settings.rs b/crates/migrator/src/migrations/m_2025_03_29/settings.rs
new file mode 100644
index 0000000000..367929c713
--- /dev/null
+++ b/crates/migrator/src/migrations/m_2025_03_29/settings.rs
@@ -0,0 +1,65 @@
+use std::ops::Range;
+use tree_sitter::{Query, QueryMatch};
+
+use crate::patterns::SETTINGS_ROOT_KEY_VALUE_PATTERN;
+use crate::MigrationPatterns;
+
+pub const SETTINGS_PATTERNS: MigrationPatterns = &[
+    (SETTINGS_ROOT_KEY_VALUE_PATTERN, replace_setting_name),
+    (SETTINGS_ROOT_KEY_VALUE_PATTERN, replace_setting_value),
+];
+
+fn replace_setting_value(
+    contents: &str,
+    mat: &QueryMatch,
+    query: &Query,
+) -> Option<(Range<usize>, String)> {
+    let setting_capture_ix = query.capture_index_for_name("name")?;
+    let setting_name_range = mat
+        .nodes_for_capture_index(setting_capture_ix)
+        .next()?
+        .byte_range();
+    let setting_name = contents.get(setting_name_range.clone())?;
+
+    if setting_name != "hide_mouse_while_typing" {
+        return None;
+    }
+
+    let value_capture_ix = query.capture_index_for_name("value")?;
+    let value_range = mat
+        .nodes_for_capture_index(value_capture_ix)
+        .next()?
+        .byte_range();
+    let value = contents.get(value_range.clone())?;
+
+    let new_value = if value.trim() == "true" {
+        "\"on_typing_and_movement\""
+    } else if value.trim() == "false" {
+        "\"never\""
+    } else {
+        return None;
+    };
+
+    Some((value_range, new_value.to_string()))
+}
+
+fn replace_setting_name(
+    contents: &str,
+    mat: &QueryMatch,
+    query: &Query,
+) -> Option<(Range<usize>, String)> {
+    let setting_capture_ix = query.capture_index_for_name("name")?;
+    let setting_name_range = mat
+        .nodes_for_capture_index(setting_capture_ix)
+        .next()?
+        .byte_range();
+    let setting_name = contents.get(setting_name_range.clone())?;
+
+    let new_setting_name = if setting_name == "hide_mouse_while_typing" {
+        "hide_mouse"
+    } else {
+        return None;
+    };
+
+    Some((setting_name_range, new_setting_name.to_string()))
+}
diff --git a/crates/migrator/src/migrator.rs b/crates/migrator/src/migrator.rs
index 75b471bad6..8c1227c58a 100644
--- a/crates/migrator/src/migrator.rs
+++ b/crates/migrator/src/migrator.rs
@@ -116,6 +116,10 @@ pub fn migrate_settings(text: &str) -> Result<Option<String>> {
             migrations::m_2025_01_30::SETTINGS_PATTERNS,
             &SETTINGS_QUERY_2025_01_30,
         ),
+        (
+            migrations::m_2025_03_29::SETTINGS_PATTERNS,
+            &SETTINGS_QUERY_2025_03_29,
+        ),
     ];
     run_migrations(text, migrations)
 }
@@ -182,6 +186,10 @@ define_query!(
     SETTINGS_QUERY_2025_01_30,
     migrations::m_2025_01_30::SETTINGS_PATTERNS
 );
+define_query!(
+    SETTINGS_QUERY_2025_03_29,
+    migrations::m_2025_03_29::SETTINGS_PATTERNS
+);
 
 // custom query
 static EDIT_PREDICTION_SETTINGS_MIGRATION_QUERY: LazyLock<Query> = LazyLock::new(|| {
diff --git a/crates/migrator/src/patterns/settings.rs b/crates/migrator/src/patterns/settings.rs
index 107b781699..e8624c7f9f 100644
--- a/crates/migrator/src/patterns/settings.rs
+++ b/crates/migrator/src/patterns/settings.rs
@@ -2,7 +2,7 @@ pub const SETTINGS_ROOT_KEY_VALUE_PATTERN: &str = r#"(document
     (object
         (pair
             key: (string (string_content) @name)
-            value: (_)
+            value: (_)  @value
         )
     )
 )"#;
diff --git a/docs/src/configuring-zed.md b/docs/src/configuring-zed.md
index 2e700b988d..e77615c12b 100644
--- a/docs/src/configuring-zed.md
+++ b/docs/src/configuring-zed.md
@@ -553,11 +553,11 @@ List of `string` values
 "cursor_shape": "hollow"
 ```
 
-## Hide Mouse While Typing
+## Hide Mouse
 
-- Description: Determines whether the mouse cursor should be hidden while typing in an editor or input box.
-- Setting: `hide_mouse_while_typing`
-- Default: `true`
+- Description: Determines when the mouse cursor should be hidden in an editor or input box.
+- Setting: `hide_mouse`
+- Default: `on_typing_and_movement`
 
 **Options**