diff --git a/src/browser/services/ThemeService.ts b/src/browser/services/ThemeService.ts
index 0dc7fcbf0d..cd85e0fff8 100644
--- a/src/browser/services/ThemeService.ts
+++ b/src/browser/services/ThemeService.ts
@@ -83,7 +83,7 @@ export class ThemeService extends Disposable implements IThemeService {
     colors.foreground = parseColor(theme.foreground, DEFAULT_FOREGROUND);
     colors.background = parseColor(theme.background, DEFAULT_BACKGROUND);
     colors.cursor = color.blend(colors.background, parseColor(theme.cursor, DEFAULT_CURSOR));
-    colors.cursorAccent = parseColor(theme.cursorAccent, DEFAULT_CURSOR_ACCENT);
+    colors.cursorAccent = color.blend(colors.background, parseColor(theme.cursorAccent, DEFAULT_CURSOR_ACCENT));
     colors.selectionBackgroundTransparent = parseColor(theme.selectionBackground, DEFAULT_SELECTION);
     colors.selectionBackgroundOpaque = color.blend(colors.background, colors.selectionBackgroundTransparent);
     colors.selectionInactiveBackgroundTransparent = parseColor(theme.selectionInactiveBackground, colors.selectionBackgroundTransparent);
diff --git a/test/playwright/SharedRendererTests.ts b/test/playwright/SharedRendererTests.ts
index b0c5c49986..1d37b5c169 100644
--- a/test/playwright/SharedRendererTests.ts
+++ b/test/playwright/SharedRendererTests.ts
@@ -1256,6 +1256,16 @@ export function injectSharedRendererTests(ctx: ISharedRendererTestContext): void
       await ctx.value.proxy.focus();
       await pollFor(ctx.value.page, () => getCellColor(ctx.value, 1, 1), [128, 0, 0, 255]);
     });
+    test('#5241 cursorAccent with alpha should blend color with background color', async () => {
+      const theme: ITheme = {
+        cursorAccent: '#FF000080'
+      };
+      await ctx.value.page.evaluate(`window.term.options.theme = ${JSON.stringify(theme)};`);
+      await ctx.value.proxy.focus();
+      await ctx.value.proxy.write('■');
+      await ctx.value.proxy.write('\x1b[1D');
+      await pollFor(ctx.value.page, () => getCellColor(ctx.value, 1, 1), [128, 0, 0, 255]);
+    });
   });
 }