diff --git a/docs/src/configuring-zed.md b/docs/src/configuring-zed.md
index 91a39d1ccd..cc4800fd6d 100644
--- a/docs/src/configuring-zed.md
+++ b/docs/src/configuring-zed.md
@@ -2698,6 +2698,54 @@ List of `integer` column numbers
 }
 ```
 
+### Terminal: Cursor Shape
+
+- Description: Whether or not selecting text in the terminal will automatically copy to the system clipboard.
+- Setting: `cursor_shape`
+- Default: `null` (defaults to block)
+
+**Options**
+
+1. A block that surrounds the following character
+
+```json
+{
+  "terminal": {
+    "cursor_shape": "block"
+  }
+}
+```
+
+2. A vertical bar
+
+```json
+{
+  "terminal": {
+    "cursor_shape": "bar"
+  }
+}
+```
+
+3. An underline / underscore that runs along the following character
+
+```json
+{
+  "terminal": {
+    "cursor_shape": "underline"
+  }
+}
+```
+
+4. A box drawn around the following character
+
+```json
+{
+  "terminal": {
+    "cursor_shape": "hollow"
+  }
+}
+```
+
 ### Terminal: Keep Selection On Copy
 
 - Description: Whether or not to keep the selection in the terminal after copying text.
diff --git a/docs/src/visual-customization.md b/docs/src/visual-customization.md
index ad38b86406..197c9b80f8 100644
--- a/docs/src/visual-customization.md
+++ b/docs/src/visual-customization.md
@@ -448,7 +448,7 @@ See [Zed AI Documentation](./ai/overview.md) for additional non-visual AI settin
 
     // Set the cursor blinking behavior in the terminal (on, off, terminal_controlled)
     "blinking": "terminal_controlled",
-    // Default cursor shape for the terminal (block, bar, underline, hollow)
+    // Default cursor shape for the terminal cursor (block, bar, underline, hollow)
     "cursor_shape": "block",
 
     // Environment variables to add to terminal's process environment