diff --git a/backend/drm/drm.c b/backend/drm/drm.c
index dc512151..70089e06 100644
--- a/backend/drm/drm.c
+++ b/backend/drm/drm.c
@@ -537,8 +537,8 @@ static void drm_connector_transform(struct wlr_output *output,
 }
 
 static bool drm_connector_set_cursor(struct wlr_output *output,
-		const uint8_t *buf, int32_t stride, uint32_t width, uint32_t height,
-		int32_t hotspot_x, int32_t hotspot_y, bool update_pixels) {
+		struct wlr_texture *texture, int32_t hotspot_x, int32_t hotspot_y,
+		bool update_texture) {
 	struct wlr_drm_connector *conn = (struct wlr_drm_connector *)output;
 	struct wlr_drm_backend *drm = (struct wlr_drm_backend *)output->backend;
 	struct wlr_drm_renderer *renderer = &drm->renderer;
@@ -567,11 +567,6 @@ static bool drm_connector_set_cursor(struct wlr_output *output,
 		ret = drmGetCap(drm->fd, DRM_CAP_CURSOR_HEIGHT, &h);
 		h = ret ? 64 : h;
 
-		if (width > w || height > h) {
-			wlr_log(L_INFO, "Cursor too large (max %dx%d)", (int)w, (int)h);
-			return false;
-		}
-
 		if (!init_drm_surface(&plane->surf, renderer, w, h,
 				GBM_FORMAT_ARGB8888, 0)) {
 			wlr_log(L_ERROR, "Cannot allocate cursor resources");
@@ -612,14 +607,22 @@ static bool drm_connector_set_cursor(struct wlr_output *output,
 		wlr_output_update_needs_swap(output);
 	}
 
-	if (!update_pixels) {
+	if (!update_texture) {
 		// Don't update cursor image
 		return true;
 	}
 
-	plane->cursor_enabled = buf != NULL;
+	plane->cursor_enabled = false;
+	if (texture != NULL) {
+		int width, height;
+		wlr_texture_get_size(texture, &width, &height);
+
+		if (width > (int)plane->surf.width || height > (int)plane->surf.height) {
+			wlr_log(L_ERROR, "Cursor too large (max %dx%d)",
+				(int)plane->surf.width, (int)plane->surf.height);
+			return false;
+		}
 
-	if (buf != NULL) {
 		uint32_t bo_width = gbm_bo_get_width(plane->cursor_bo);
 		uint32_t bo_height = gbm_bo_get_height(plane->cursor_bo);
 
@@ -635,13 +638,6 @@ static bool drm_connector_set_cursor(struct wlr_output *output,
 
 		struct wlr_renderer *rend = plane->surf.renderer->wlr_rend;
 
-		struct wlr_texture *texture = wlr_texture_from_pixels(rend,
-			WL_SHM_FORMAT_ARGB8888, stride, width, height, buf);
-		if (texture == NULL) {
-			wlr_log(L_ERROR, "Unable to create texture");
-			return false;
-		}
-
 		wlr_renderer_begin(rend, plane->surf.width, plane->surf.height);
 		wlr_renderer_clear(rend, (float[]){ 0.0, 0.0, 0.0, 0.0 });
 		wlr_render_texture(rend, texture, plane->matrix, 0, 0, 1.0f);
@@ -652,8 +648,9 @@ static bool drm_connector_set_cursor(struct wlr_output *output,
 
 		swap_drm_surface_buffers(&plane->surf, NULL);
 
-		wlr_texture_destroy(texture);
 		gbm_bo_unmap(plane->cursor_bo, bo_data);
+
+		plane->cursor_enabled = true;
 	}
 
 	if (!drm->session->active) {
diff --git a/backend/wayland/backend.c b/backend/wayland/backend.c
index 15d8feab..dc50cf23 100644
--- a/backend/wayland/backend.c
+++ b/backend/wayland/backend.c
@@ -164,8 +164,16 @@ struct wlr_backend *wlr_wl_backend_create(struct wl_display *display,
 		goto error_registry;
 	}
 
+	static EGLint config_attribs[] = {
+		EGL_SURFACE_TYPE, EGL_WINDOW_BIT,
+		EGL_RED_SIZE, 1,
+		EGL_GREEN_SIZE, 1,
+		EGL_BLUE_SIZE, 1,
+		EGL_ALPHA_SIZE, 1,
+		EGL_NONE,
+	};
 	if (!wlr_egl_init(&backend->egl, EGL_PLATFORM_WAYLAND_EXT,
-			backend->remote_display, NULL, WL_SHM_FORMAT_ARGB8888)) {
+			backend->remote_display, config_attribs, WL_SHM_FORMAT_ARGB8888)) {
 		wlr_log(L_ERROR, "Could not initialize EGL");
 		goto error_egl;
 	}
diff --git a/backend/wayland/output.c b/backend/wayland/output.c
index 209b060f..c498fc4e 100644
--- a/backend/wayland/output.c
+++ b/backend/wayland/output.c
@@ -9,6 +9,7 @@
 #include <wayland-client.h>
 #include <wlr/interfaces/wlr_output.h>
 #include <wlr/render/wlr_renderer.h>
+#include <wlr/types/wlr_matrix.h>
 #include <wlr/util/log.h>
 #include "backend/wayland.h"
 #include "util/signal.h"
@@ -72,8 +73,8 @@ static void output_transform(struct wlr_output *_output,
 }
 
 static bool output_set_cursor(struct wlr_output *_output,
-		const uint8_t *buf, int32_t stride, uint32_t width, uint32_t height,
-		int32_t hotspot_x, int32_t hotspot_y, bool update_pixels) {
+		struct wlr_texture *texture, int32_t hotspot_x, int32_t hotspot_y,
+		bool update_texture) {
 	struct wlr_wl_output *output =
 		(struct wlr_wl_output *)_output;
 	struct wlr_wl_backend *backend = output->backend;
@@ -82,76 +83,47 @@ static bool output_set_cursor(struct wlr_output *_output,
 	output->cursor.hotspot_x = hotspot_x;
 	output->cursor.hotspot_y = hotspot_y;
 
-	if (!update_pixels) {
+	if (!update_texture) {
 		// Update hotspot without changing cursor image
 		update_wl_output_cursor(output);
 		return true;
 	}
-	if (!buf) {
-		// Hide cursor
-		if (output->cursor.surface) {
-			wl_surface_destroy(output->cursor.surface);
-			munmap(output->cursor.data, output->cursor.buf_size);
-			output->cursor.surface = NULL;
-			output->cursor.buf_size = 0;
-		}
-		update_wl_output_cursor(output);
-		return true;
-	}
 
-	if (!backend->shm || !backend->pointer) {
-		wlr_log(L_INFO, "cannot set cursor: no wl_shm or wl_pointer");
-		return false;
-	}
-
-	if (!output->cursor.surface) {
+	if (output->cursor.surface == NULL) {
 		output->cursor.surface =
-			wl_compositor_create_surface(output->backend->compositor);
+			wl_compositor_create_surface(backend->compositor);
 	}
+	struct wl_surface *surface = output->cursor.surface;
 
-	uint32_t size = stride * height;
-	if (output->cursor.buf_size != size) {
-		if (output->cursor.buffer) {
-			wl_buffer_destroy(output->cursor.buffer);
-		}
+	if (texture != NULL) {
+		int width, height;
+		wlr_texture_get_size(texture, &width, &height);
 
-		if (size > output->cursor.buf_size) {
-			if (output->cursor.pool) {
-				wl_shm_pool_destroy(output->cursor.pool);
-				output->cursor.pool = NULL;
-				munmap(output->cursor.data, output->cursor.buf_size);
-			}
+		if (output->cursor.egl_window == NULL) {
+			output->cursor.egl_window =
+				wl_egl_window_create(surface, width, height);
 		}
+		wl_egl_window_resize(output->cursor.egl_window, width, height, 0, 0);
 
-		if (!output->cursor.pool) {
-			int fd = os_create_anonymous_file(size);
-			if (fd < 0) {
-				wlr_log_errno(L_INFO,
-					"creating anonymous file for cursor buffer failed");
-				return false;
-			}
-
-			output->cursor.data = mmap(NULL, size, PROT_READ | PROT_WRITE,
-				MAP_SHARED, fd, 0);
-			if (output->cursor.data == MAP_FAILED) {
-				close(fd);
-				wlr_log_errno(L_INFO, "mmap failed");
-				return false;
-			}
-
-			output->cursor.pool = wl_shm_create_pool(backend->shm, fd, size);
-			close(fd);
-		}
+		EGLSurface egl_surface =
+			wlr_egl_create_surface(&backend->egl, output->cursor.egl_window);
 
-		output->cursor.buffer = wl_shm_pool_create_buffer(output->cursor.pool,
-			0, width, height, stride, WL_SHM_FORMAT_ARGB8888);
-		output->cursor.buf_size = size;
-	}
+		wlr_egl_make_current(&backend->egl, egl_surface, NULL);
 
-	memcpy(output->cursor.data, buf, size);
-	wl_surface_attach(output->cursor.surface, output->cursor.buffer, 0, 0);
-	wl_surface_damage(output->cursor.surface, 0, 0, width, height);
-	wl_surface_commit(output->cursor.surface);
+		float matrix[9];
+		wlr_matrix_projection(matrix, width, height, WL_OUTPUT_TRANSFORM_NORMAL);
+
+		wlr_renderer_begin(backend->renderer, width, height);
+		wlr_renderer_clear(backend->renderer, (float[]){ 0.0, 0.0, 0.0, 0.0 });
+		wlr_render_texture(backend->renderer, texture, matrix, 0, 0, 1.0);
+		wlr_renderer_end(backend->renderer);
+
+		wlr_egl_swap_buffers(&backend->egl, egl_surface, NULL);
+		wlr_egl_destroy_surface(&backend->egl, egl_surface);
+	} else {
+		wl_surface_attach(surface, NULL, 0, 0);
+		wl_surface_commit(surface);
+	}
 
 	update_wl_output_cursor(output);
 	return true;
@@ -166,16 +138,9 @@ static void output_destroy(struct wlr_output *wlr_output) {
 
 	wl_list_remove(&output->link);
 
-	if (output->cursor.buf_size != 0) {
-		assert(output->cursor.data);
-		assert(output->cursor.buffer);
-		assert(output->cursor.pool);
-
-		wl_buffer_destroy(output->cursor.buffer);
-		munmap(output->cursor.data, output->cursor.buf_size);
-		wl_shm_pool_destroy(output->cursor.pool);
+	if (output->cursor.egl_window != NULL) {
+		wl_egl_window_destroy(output->cursor.egl_window);
 	}
-
 	if (output->cursor.surface) {
 		wl_surface_destroy(output->cursor.surface);
 	}
diff --git a/include/backend/wayland.h b/include/backend/wayland.h
index 38c7ee32..fec328ba 100644
--- a/include/backend/wayland.h
+++ b/include/backend/wayland.h
@@ -40,25 +40,22 @@ struct wlr_wl_output {
 	struct wlr_output wlr_output;
 
 	struct wlr_wl_backend *backend;
+	struct wl_list link;
+
 	struct wl_surface *surface;
+	struct wl_callback *frame_callback;
 	struct zxdg_surface_v6 *xdg_surface;
 	struct zxdg_toplevel_v6 *xdg_toplevel;
 	struct wl_egl_window *egl_window;
-	struct wl_callback *frame_callback;
+	EGLSurface egl_surface;
+
+	uint32_t enter_serial;
 
 	struct {
-		struct wl_shm_pool *pool;
-		void *buffer; // actually a (client-side) struct wl_buffer *
-		uint32_t buf_size;
-		uint8_t *data;
 		struct wl_surface *surface;
+		struct wl_egl_window *egl_window;
 		int32_t hotspot_x, hotspot_y;
 	} cursor;
-
-	uint32_t enter_serial;
-
-	void *egl_surface;
-	struct wl_list link;
 };
 
 struct wlr_wl_input_device {
diff --git a/include/wlr/interfaces/wlr_output.h b/include/wlr/interfaces/wlr_output.h
index c9ddf615..d8c54067 100644
--- a/include/wlr/interfaces/wlr_output.h
+++ b/include/wlr/interfaces/wlr_output.h
@@ -13,9 +13,8 @@ struct wlr_output_impl {
 		int32_t height, int32_t refresh);
 	void (*transform)(struct wlr_output *output,
 		enum wl_output_transform transform);
-	bool (*set_cursor)(struct wlr_output *output, const uint8_t *buf,
-		int32_t stride, uint32_t width, uint32_t height,
-		int32_t hotspot_x, int32_t hotspot_y, bool update_pixels);
+	bool (*set_cursor)(struct wlr_output *output, struct wlr_texture *texture,
+		int32_t hotspot_x, int32_t hotspot_y, bool update_texture);
 	bool (*move_cursor)(struct wlr_output *output, int x, int y);
 	void (*destroy)(struct wlr_output *output);
 	bool (*make_current)(struct wlr_output *output, int *buffer_age);
diff --git a/types/wlr_output.c b/types/wlr_output.c
index a8361ead..4ba7c9db 100644
--- a/types/wlr_output.c
+++ b/types/wlr_output.c
@@ -698,6 +698,27 @@ static void output_cursor_update_visible(struct wlr_output_cursor *cursor) {
 	cursor->visible = visible;
 }
 
+static bool output_cursor_attempt_hardware(struct wlr_output_cursor *cursor) {
+	struct wlr_texture *texture = cursor->texture;
+	if (cursor->surface != NULL) {
+		texture = cursor->surface->texture;
+	}
+
+	struct wlr_output_cursor *hwcur = cursor->output->hardware_cursor;
+	if (cursor->output->impl->set_cursor && (hwcur == NULL || hwcur == cursor)) {
+		if (cursor->output->impl->move_cursor && hwcur != cursor) {
+			cursor->output->impl->move_cursor(cursor->output,
+				(int)cursor->x, (int)cursor->y);
+		}
+		if (cursor->output->impl->set_cursor(cursor->output, texture,
+				cursor->hotspot_x, cursor->hotspot_y, true)) {
+			cursor->output->hardware_cursor = cursor;
+			return true;
+		}
+	}
+	return false;
+}
+
 bool wlr_output_cursor_set_image(struct wlr_output_cursor *cursor,
 		const uint8_t *pixels, int32_t stride, uint32_t width, uint32_t height,
 		int32_t hotspot_x, int32_t hotspot_y) {
@@ -713,33 +734,26 @@ bool wlr_output_cursor_set_image(struct wlr_output_cursor *cursor,
 	cursor->hotspot_y = hotspot_y;
 	output_cursor_update_visible(cursor);
 
-	struct wlr_output_cursor *hwcur = cursor->output->hardware_cursor;
-	if (cursor->output->impl->set_cursor && (hwcur == NULL || hwcur == cursor)) {
-		if (cursor->output->impl->move_cursor && hwcur != cursor) {
-			cursor->output->impl->move_cursor(cursor->output,
-				(int)cursor->x, (int)cursor->y);
-		}
-		int ok = cursor->output->impl->set_cursor(cursor->output, pixels,
-			stride, width, height, hotspot_x, hotspot_y, true);
-		if (ok) {
-			cursor->output->hardware_cursor = cursor;
-			return true;
+	wlr_texture_destroy(cursor->texture);
+	cursor->texture = NULL;
+
+	cursor->enabled = false;
+	if (pixels != NULL) {
+		cursor->texture = wlr_texture_from_pixels(renderer,
+			WL_SHM_FORMAT_ARGB8888, stride, width, height, pixels);
+		if (cursor->texture == NULL) {
+			return false;
 		}
+		cursor->enabled = true;
 	}
 
-	wlr_log(L_DEBUG, "Falling back to software cursor");
-	output_cursor_damage_whole(cursor);
-
-	cursor->enabled = pixels != NULL;
-	if (!cursor->enabled) {
+	if (output_cursor_attempt_hardware(cursor)) {
 		return true;
 	}
 
-	wlr_texture_destroy(cursor->texture);
-
-	cursor->texture = wlr_texture_from_pixels(renderer, WL_SHM_FORMAT_ARGB8888,
-		stride, width, height, pixels);
-	return cursor->texture != NULL;
+	wlr_log(L_DEBUG, "Falling back to software cursor");
+	output_cursor_damage_whole(cursor);
+	return true;
 }
 
 static void output_cursor_commit(struct wlr_output_cursor *cursor) {
@@ -752,15 +766,15 @@ static void output_cursor_commit(struct wlr_output_cursor *cursor) {
 	cursor->width = cursor->surface->current->width * cursor->output->scale;
 	cursor->height = cursor->surface->current->height * cursor->output->scale;
 
-	if (cursor->output->hardware_cursor != cursor) {
-		output_cursor_damage_whole(cursor);
-	} else {
-		// TODO: upload pixels
-
+	if (output_cursor_attempt_hardware(cursor)) {
 		struct timespec now;
 		clock_gettime(CLOCK_MONOTONIC, &now);
 		wlr_surface_send_frame_done(cursor->surface, &now);
+		return;
 	}
+
+	// Fallback to software cursor
+	output_cursor_damage_whole(cursor);
 }
 
 static void output_cursor_handle_commit(struct wl_listener *listener,
@@ -800,7 +814,7 @@ void wlr_output_cursor_set_surface(struct wlr_output_cursor *cursor,
 
 		if (cursor->output->hardware_cursor == cursor &&
 				cursor->output->impl->set_cursor) {
-			cursor->output->impl->set_cursor(cursor->output, NULL, 0, 0, 0,
+			cursor->output->impl->set_cursor(cursor->output, NULL,
 				hotspot_x, hotspot_y, false);
 		}
 		return;
@@ -808,15 +822,6 @@ void wlr_output_cursor_set_surface(struct wlr_output_cursor *cursor,
 
 	output_cursor_reset(cursor);
 
-	// Disable hardware cursor for surfaces
-	// TODO: support hardware cursors
-	if (cursor->output->hardware_cursor == cursor &&
-			cursor->output->impl->set_cursor) {
-		cursor->output->impl->set_cursor(cursor->output, NULL, 0, 0, 0, 0, 0,
-			true);
-		cursor->output->hardware_cursor = NULL;
-	}
-
 	cursor->surface = surface;
 	cursor->hotspot_x = hotspot_x;
 	cursor->hotspot_y = hotspot_y;
@@ -833,7 +838,10 @@ void wlr_output_cursor_set_surface(struct wlr_output_cursor *cursor,
 		cursor->width = 0;
 		cursor->height = 0;
 
-		// TODO: if hardware cursor, disable cursor
+		if (cursor->output->hardware_cursor == cursor &&
+				cursor->output->impl->set_cursor) {
+			cursor->output->impl->set_cursor(cursor->output, NULL, 0, 0, false);
+		}
 	}
 }
 
@@ -896,8 +904,7 @@ void wlr_output_cursor_destroy(struct wlr_output_cursor *cursor) {
 	if (cursor->output->hardware_cursor == cursor) {
 		// If this cursor was the hardware cursor, disable it
 		if (cursor->output->impl->set_cursor) {
-			cursor->output->impl->set_cursor(cursor->output, NULL, 0, 0, 0, 0,
-				0, true);
+			cursor->output->impl->set_cursor(cursor->output, NULL, 0, 0, true);
 		}
 		cursor->output->hardware_cursor = NULL;
 	}