--- src/vte.c~	2014-05-17 15:53:13.000000000 -0600
+++ src/vte.c	2014-05-17 16:48:35.400000022 -0600
@@ -7743,6 +7748,7 @@ vte_terminal_focus_out(GtkWidget *widget
 		vte_terminal_match_hilite_hide (terminal);
 		/* Mark the cursor as invisible to disable hilite updating */
 		terminal->pvt->mouse_cursor_visible = FALSE;
+		terminal->pvt->mouse_last_button = 0;
 	}
 
 	terminal->pvt->has_focus = FALSE;
