diff --git a/spec/app/editor-spec.coffee b/spec/app/editor-spec.coffee
index dcb5a17ca..9c512ae52 100644
--- a/spec/app/editor-spec.coffee
+++ b/spec/app/editor-spec.coffee
@@ -2446,7 +2446,7 @@ describe "Editor", ->
 
         expect(editor.getCursorBufferPosition()).toEqual [3, 0]
 
-    describe "when a cursor is on a fold placeholder line", ->
+    describe "when the unfold event is triggered when the cursor is on a fold placeholder line", ->
       it "removes the associated fold and places the cursor at its beginning", ->
         editor.getSelection().setBufferRange(new Range([3, 0], [9, 0]))
         editor.trigger 'fold-selection'
@@ -2461,7 +2461,7 @@ describe "Editor", ->
         expect(editor.getCursorBufferPosition()).toEqual [3, 0]
 
     describe "when a selection starts/stops intersecting a fold", ->
-      it "adds/removes the 'selected' class to the fold's line element", ->
+      it "adds/removes the 'selected' class to the fold's line element and hides the cursor if it is on the fold line", ->
         editor.createFold(2, 4)
 
         editor.setSelectionBufferRange([[1, 0], [2, 0]], reverse: true)
@@ -2478,6 +2478,10 @@ describe "Editor", ->
 
         editor.setCursorScreenPosition([2,0])
         expect(editor.lineElementForScreenRow(2)).toMatchSelector('.fold.selected')
+        expect(editor.find('.cursor').css('display')).toBe 'none'
+
+        editor.setCursorScreenPosition([3,0])
+        expect(editor.find('.cursor').css('display')).toBe 'block'
 
     describe "when a selected fold is scrolled into view (and the fold line was not previously rendered)", ->
       it "renders the fold's line element with the 'selected' class", ->
diff --git a/src/app/cursor.coffee b/src/app/cursor.coffee
index 6bfcef620..a3fc37abd 100644
--- a/src/app/cursor.coffee
+++ b/src/app/cursor.coffee
@@ -177,4 +177,9 @@ class Cursor extends View
     if this == _.last(@editor.getCursors())
       @editor.scrollTo(pixelPosition)
 
+    if @editor.isFoldedAtScreenRow(screenPosition.row)
+      @hide()
+    else
+      @show()
+
     @selection.updateAppearance()
diff --git a/src/app/editor.coffee b/src/app/editor.coffee
index 2cecb9487..044478a2b 100644
--- a/src/app/editor.coffee
+++ b/src/app/editor.coffee
@@ -343,7 +343,6 @@ class Editor extends View
         screenRow = @firstRenderedScreenRow + i
         element = @lineElementForScreenRow(screenRow)
         if @compositeSelection.intersectsBufferRange(fold.getBufferRange())
-          
           element.addClass('selected')
         else
           element.removeClass('selected')
@@ -363,6 +362,9 @@ class Editor extends View
   getLastScreenRow: ->
     @screenLineCount() - 1
 
+  isFoldedAtScreenRow: (screenRow) ->
+    @screenLineForRow(screenRow).fold?
+
   destroyFoldsContainingBufferRow: (bufferRow) ->
     @renderer.destroyFoldsContainingBufferRow(bufferRow)