diff --git a/runtime/doc/nvim_terminal_emulator.txt b/runtime/doc/nvim_terminal_emulator.txt
index 5ad69d1122..e83b17f9a0 100644
--- a/runtime/doc/nvim_terminal_emulator.txt
+++ b/runtime/doc/nvim_terminal_emulator.txt
@@ -53,7 +53,7 @@ next key is sent unless it is <C-N>. Use <C-\><C-N> to return to normal-mode.
 
 Terminal-mode forces these local options:
 
-    'nocursorline'
+    'cursorlineopt' = number
     'nocursorcolumn'
     'scrolloff' = 0
     'sidescrolloff' = 0
@@ -171,7 +171,7 @@ program window	A terminal window for the executed program.  When "run" is
 
 The current window is used to show the source code.  When gdb pauses the
 source file location will be displayed, if possible.  A sign is used to
-highlight the current position, using highlight group debugPC.	 
+highlight the current position, using highlight group debugPC.
 
 If the buffer in the current window is modified, another window will be opened
 to display the current gdb position.
@@ -222,7 +222,7 @@ Put focus on the gdb window and type: >
 	run
 Vim will start running in the program window. Put focus there and type: >
 	:help gui
-Gdb will run into the ex_help breakpoint.  The source window now shows the 
+Gdb will run into the ex_help breakpoint.  The source window now shows the
 ex_cmds.c file.  A red "1 " marker will appear in the signcolumn where the
 breakpoint was set.  The line where the debugger stopped is highlighted.  You
 can now step through the program.  You will see the highlighting move as the
diff --git a/src/nvim/terminal.c b/src/nvim/terminal.c
index 6f19a9209e..07d668ba5b 100644
--- a/src/nvim/terminal.c
+++ b/src/nvim/terminal.c
@@ -358,11 +358,21 @@ void terminal_enter(void)
   // Disable these options in terminal-mode. They are nonsense because cursor is
   // placed at end of buffer to "follow" output. #11072
   win_T *save_curwin = curwin;
-  int save_w_p_cul = curwin->w_p_cul;
+  bool save_w_p_cul = curwin->w_p_cul;
+  char_u *save_w_p_culopt = NULL;
+  char_u save_w_p_culopt_flags = curwin->w_p_culopt_flags;
   int save_w_p_cuc = curwin->w_p_cuc;
   long save_w_p_so = curwin->w_p_so;
   long save_w_p_siso = curwin->w_p_siso;
-  curwin->w_p_cul = false;
+  if (curwin->w_p_cul && curwin->w_p_culopt_flags & CULOPT_NBR) {
+    if (strcmp((char *)curwin->w_p_culopt, "number")) {
+      save_w_p_culopt = curwin->w_p_culopt;
+      curwin->w_p_culopt = (char_u *)xstrdup("number");
+    }
+    curwin->w_p_culopt_flags = CULOPT_NBR;
+  } else {
+    curwin->w_p_cul = false;
+  }
   curwin->w_p_cuc = false;
   curwin->w_p_so = 0;
   curwin->w_p_siso = 0;
@@ -386,9 +396,16 @@ void terminal_enter(void)
 
   if (save_curwin == curwin) {  // save_curwin may be invalid (window closed)!
     curwin->w_p_cul = save_w_p_cul;
+    if (save_w_p_culopt) {
+      xfree(curwin->w_p_culopt);
+      curwin->w_p_culopt = save_w_p_culopt;
+    }
+    curwin->w_p_culopt_flags = save_w_p_culopt_flags;
     curwin->w_p_cuc = save_w_p_cuc;
     curwin->w_p_so = save_w_p_so;
     curwin->w_p_siso = save_w_p_siso;
+  } else if (save_w_p_culopt) {
+    xfree(save_w_p_culopt);
   }
 
   // draw the unfocused cursor
diff --git a/test/functional/terminal/buffer_spec.lua b/test/functional/terminal/buffer_spec.lua
index 103ae59b8e..5442724644 100644
--- a/test/functional/terminal/buffer_spec.lua
+++ b/test/functional/terminal/buffer_spec.lua
@@ -22,14 +22,28 @@ describe(':terminal buffer', function()
 
   it('terminal-mode forces various options', function()
     feed([[<C-\><C-N>]])
-    command('setlocal cursorline cursorcolumn scrolloff=4 sidescrolloff=7')
-    eq({ 1, 1, 4, 7 }, eval('[&l:cursorline, &l:cursorcolumn, &l:scrolloff, &l:sidescrolloff]'))
+    command('setlocal cursorline cursorlineopt=both cursorcolumn scrolloff=4 sidescrolloff=7')
+    eq({ 'both', 1, 1, 4, 7 }, eval('[&l:cursorlineopt, &l:cursorline, &l:cursorcolumn, &l:scrolloff, &l:sidescrolloff]'))
     eq('n', eval('mode()'))
 
     -- Enter terminal-mode ("insert" mode in :terminal).
     feed('i')
     eq('t', eval('mode()'))
-    eq({ 0, 0, 0, 0 }, eval('[&l:cursorline, &l:cursorcolumn, &l:scrolloff, &l:sidescrolloff]'))
+    eq({ 'number', 1, 0, 0, 0 }, eval('[&l:cursorlineopt, &l:cursorline, &l:cursorcolumn, &l:scrolloff, &l:sidescrolloff]'))
+  end)
+
+  it('terminal-mode does not change cursorlineopt if cursorline is disabled', function()
+    feed([[<C-\><C-N>]])
+    command('setlocal nocursorline cursorlineopt=both')
+    feed('i')
+    eq({ 0, 'both' }, eval('[&l:cursorline, &l:cursorlineopt]'))
+  end)
+
+  it('terminal-mode disables cursorline when cursorlineopt is only set to "line', function()
+    feed([[<C-\><C-N>]])
+    command('setlocal cursorline cursorlineopt=line')
+    feed('i')
+    eq({ 0, 'line' }, eval('[&l:cursorline, &l:cursorlineopt]'))
   end)
 
   describe('when a new file is edited', function()