diff --git a/Source/DiabloUI/diabloui.cpp b/Source/DiabloUI/diabloui.cpp
index d61e04e0e..c090c2d27 100644
--- a/Source/DiabloUI/diabloui.cpp
+++ b/Source/DiabloUI/diabloui.cpp
@@ -666,11 +666,7 @@ void LoadBackgroundArt(const char *pszFile, int frames)
 	fadeTc = 0;
 	fadeValue = 0;
 
-	if (IsHardwareCursorEnabled() && ArtCursor.surface != nullptr && GetCurrentCursorInfo().type() != CursorType::UserInterface) {
-#if SDL_VERSION_ATLEAST(2, 0, 0)
-		SDL_SetSurfacePalette(ArtCursor.surface.get(), Palette.get());
-		SDL_SetColorKey(ArtCursor.surface.get(), 1, 0);
-#endif
+	if (IsHardwareCursorEnabled() && ArtCursor.surface != nullptr && ControlDevice == ControlTypes::KeyboardAndMouse && GetCurrentCursorInfo().type() != CursorType::UserInterface) {
 		SetHardwareCursor(CursorInfo::UserInterfaceCursor());
 	}
 
@@ -757,7 +753,7 @@ void UiPollAndRender(std::function<bool(SDL_Event &)> eventHandler)
 
 	// Must happen after the very first UiFadeIn, which sets the cursor.
 	if (IsHardwareCursor())
-		SetHardwareCursorVisible(ControlMode == ControlTypes::KeyboardAndMouse);
+		SetHardwareCursorVisible(ControlDevice == ControlTypes::KeyboardAndMouse);
 
 #ifdef __3DS__
 	// Keyboard blocks until input is finished
@@ -1082,7 +1078,7 @@ bool UiItemMouseEvents(SDL_Event *event, const std::vector<std::unique_ptr<UiIte
 
 void DrawMouse()
 {
-	if (ControlMode != ControlTypes::KeyboardAndMouse || IsHardwareCursor())
+	if (ControlDevice != ControlTypes::KeyboardAndMouse || IsHardwareCursor())
 		return;
 
 	DrawArt(MousePosition, &ArtCursor);
diff --git a/Source/controls/plrctrls.cpp b/Source/controls/plrctrls.cpp
index c5722ae3f..fcae1c1bf 100644
--- a/Source/controls/plrctrls.cpp
+++ b/Source/controls/plrctrls.cpp
@@ -4,6 +4,10 @@
 #include <cstdint>
 #include <list>
 
+#ifdef USE_SDL1
+#include "utils/sdl2_to_1_2_backports.h"
+#endif
+
 #include "automap.h"
 #include "control.h"
 #include "controls/controller_motion.h"
@@ -30,12 +34,14 @@
 #include "stores.h"
 #include "towners.h"
 #include "trigs.h"
+#include "utils/log.hpp"
 
 #define SPLICONLENGTH 56
 
 namespace devilution {
 
 ControlTypes ControlMode = ControlTypes::None;
+ControlTypes ControlDevice = ControlTypes::None;
 int pcurstrig = -1;
 Missile *pcursmissile = nullptr;
 quest_id pcursquest = Q_INVALID;
@@ -1467,7 +1473,7 @@ ControlTypes GetInputTypeFromEvent(const SDL_Event &event)
 
 float rightStickLastMove = 0;
 
-bool ContinueSimulatingMouse(const SDL_Event &event, const ControllerButtonEvent &gamepadEvent)
+bool ContinueSimulatedMouseEvent(const SDL_Event &event, const ControllerButtonEvent &gamepadEvent)
 {
 	if (IsAutomapActive())
 		return false;
@@ -1491,12 +1497,51 @@ bool ContinueSimulatingMouse(const SDL_Event &event, const ControllerButtonEvent
 	return false;
 }
 
+bool IsNextMouseButtonClickEventSimulated = false;
+
+void LogControlDeviceAndModeChange(ControlTypes newControlDevice, ControlTypes newControlMode)
+{
+	if (SDL_LOG_PRIORITY_DEBUG < SDL_LogGetPriority(SDL_LOG_CATEGORY_APPLICATION))
+		return;
+	if (newControlDevice == ControlDevice && newControlMode == ControlMode)
+		return;
+	constexpr auto DebugChange = [](ControlTypes before, ControlTypes after) -> std::string {
+		if (before == after)
+			return std::string { ControlTypeToString(before) };
+		return fmt::format("{} -> {}", ControlTypeToString(before), ControlTypeToString(after));
+	};
+	LogDebug("Control: device {}, mode {}", DebugChange(ControlDevice, newControlDevice), DebugChange(ControlMode, newControlMode));
+}
+
 } // namespace
 
+void NextMouseButtonClickEventIsSimulated()
+{
+	IsNextMouseButtonClickEventSimulated = true;
+}
+
+string_view ControlTypeToString(ControlTypes controlType)
+{
+	switch (controlType) {
+	case ControlTypes::None:
+		return "None";
+	case ControlTypes::KeyboardAndMouse:
+		return "KeyboardAndMouse";
+	case ControlTypes::Gamepad:
+		return "Gamepad";
+	case ControlTypes::VirtualGamepad:
+		return "VirtualGamepad";
+	}
+	return "Invalid";
+}
+
 void DetectInputMethod(const SDL_Event &event, const ControllerButtonEvent &gamepadEvent)
 {
 	ControlTypes inputType = GetInputTypeFromEvent(event);
 
+	if (inputType == ControlTypes::None)
+		return;
+
 #ifdef __vita__
 	if (inputType == ControlTypes::VirtualGamepad) {
 		inputType = ControlTypes::Gamepad;
@@ -1509,22 +1554,42 @@ void DetectInputMethod(const SDL_Event &event, const ControllerButtonEvent &game
 	}
 #endif
 
-	if (ControlMode == ControlTypes::KeyboardAndMouse && inputType == ControlTypes::Gamepad && ContinueSimulatingMouse(event, gamepadEvent)) {
-		return;
+	ControlTypes newControlDevice = inputType;
+	ControlTypes newControlMode = inputType;
+	const bool isSimulatedMouseButtonEvent = IsNextMouseButtonClickEventSimulated
+	    && (event.type == SDL_MOUSEBUTTONUP || event.type == SDL_MOUSEBUTTONDOWN)
+	    && ControlDevice != ControlTypes::KeyboardAndMouse;
+	if (isSimulatedMouseButtonEvent) {
+		IsNextMouseButtonClickEventSimulated = false;
+
+		// `inputType` here will be `KeyboardAndMouse` because this is a (simulated) mouse event.
+		// Restore it to the original control device.
+		newControlDevice = ControlDevice;
 	}
 
-	if (inputType != ControlTypes::None && inputType != ControlMode) {
-		ControlMode = inputType;
+	if (isSimulatedMouseButtonEvent) {
+		newControlMode = ControlTypes::KeyboardAndMouse;
+	} else if (ContinueSimulatedMouseEvent(event, gamepadEvent)) {
+		newControlMode = ControlMode;
+	}
+
+	LogControlDeviceAndModeChange(newControlDevice, newControlMode);
+
+	if (newControlDevice != ControlDevice) {
+		ControlDevice = newControlDevice;
 
 #ifndef USE_SDL1
-		if (ControlMode != ControlTypes::KeyboardAndMouse) {
+		if (ControlDevice != ControlTypes::KeyboardAndMouse) {
 			if (IsHardwareCursor())
 				SetHardwareCursor(CursorInfo::UnknownCursor());
 		} else {
 			ResetCursor();
 		}
 #endif
+	}
 
+	if (newControlMode != ControlMode) {
+		ControlMode = newControlMode;
 		CalculatePanelAreas();
 	}
 }
@@ -1566,9 +1631,11 @@ void HandleRightStickMotion()
 		static int lastMouseSetTick = 0;
 		const int now = SDL_GetTicks();
 		if (now - lastMouseSetTick > 0) {
-			ControlMode = ControlTypes::KeyboardAndMouse;
 			ResetCursor();
 			SetCursorPos({ x, y });
+			LogControlDeviceAndModeChange(ControlDevice, ControlTypes::KeyboardAndMouse);
+
+			ControlMode = ControlTypes::KeyboardAndMouse;
 			lastMouseSetTick = now;
 		}
 	}
diff --git a/Source/controls/plrctrls.h b/Source/controls/plrctrls.h
index 6da51becb..34543b1ca 100644
--- a/Source/controls/plrctrls.h
+++ b/Source/controls/plrctrls.h
@@ -3,6 +3,8 @@
 
 #include <cstdint>
 
+#include <SDL.h>
+
 #include "controls/controller.h"
 #include "player.h"
 
@@ -20,8 +22,25 @@ enum class ControlTypes : uint8_t {
 	VirtualGamepad,
 };
 
+string_view ControlTypeToString(ControlTypes controlType);
+
+/**
+ * @brief Call this after sending a simulated mouse button click event.
+ */
+void NextMouseButtonClickEventIsSimulated();
+
 extern ControlTypes ControlMode;
 
+/**
+ * @brief Controlling device type.
+ *
+ * While simulating a mouse, `ControlMode` is set to `KeyboardAndMouse`,
+ * even though a gamepad is used to control it.
+ *
+ * This value is always set to the actual active device type.
+ */
+extern ControlTypes ControlDevice;
+
 // Runs every frame.
 // Handles menu movement.
 void plrctrls_every_frame();
diff --git a/Source/cursor.cpp b/Source/cursor.cpp
index e63d673b3..8d2ca036f 100644
--- a/Source/cursor.cpp
+++ b/Source/cursor.cpp
@@ -7,6 +7,8 @@
 
 #include <fmt/format.h>
 
+#include "DiabloUI/art.h"
+#include "DiabloUI/diabloui.h"
 #include "control.h"
 #include "controls/plrctrls.h"
 #include "doom.h"
@@ -183,8 +185,16 @@ void NewCursor(int cursId)
 	pcurs = cursId;
 	cursSize = GetInvItemSize(cursId);
 	SetICursor(cursId);
-	if (IsHardwareCursorEnabled() && ControlMode == ControlTypes::KeyboardAndMouse && GetCurrentCursorInfo() != CursorInfo::GameCursor(cursId) && cursId != CURSOR_NONE) {
-		SetHardwareCursor(CursorInfo::GameCursor(cursId));
+
+	if (IsHardwareCursorEnabled() && ControlDevice == ControlTypes::KeyboardAndMouse) {
+		if (ArtCursor.surface == nullptr && cursId == CURSOR_NONE)
+			return;
+
+		const CursorInfo newCursor = ArtCursor.surface == nullptr
+		    ? CursorInfo::GameCursor(cursId)
+		    : CursorInfo::UserInterfaceCursor();
+		if (newCursor != GetCurrentCursorInfo())
+			SetHardwareCursor(newCursor);
 	}
 }
 
diff --git a/Source/hwcursor.cpp b/Source/hwcursor.cpp
index 5f7c38072..8ef286b07 100644
--- a/Source/hwcursor.cpp
+++ b/Source/hwcursor.cpp
@@ -145,6 +145,8 @@ void SetHardwareCursor(CursorInfo cursorInfo)
 		// ArtCursor is null while loading the game on the progress screen,
 		// called via palette fade from ShowProgress.
 		if (ArtCursor.surface != nullptr) {
+			SDL_SetSurfacePalette(ArtCursor.surface.get(), Palette.get());
+			SDL_SetColorKey(ArtCursor.surface.get(), 1, 0);
 			CurrentCursorInfo.SetEnabled(
 			    IsCursorSizeAllowed(Size { ArtCursor.surface->w, ArtCursor.surface->h })
 			    && SetHardwareCursor(ArtCursor.surface.get(), HotpointPosition::TopLeft));
diff --git a/Source/miniwin/misc_msg.cpp b/Source/miniwin/misc_msg.cpp
index ddf0ec081..73f8e9b76 100644
--- a/Source/miniwin/misc_msg.cpp
+++ b/Source/miniwin/misc_msg.cpp
@@ -68,7 +68,7 @@ void SetMouseButtonEvent(SDL_Event &event, uint32_t type, uint8_t button, Point
 
 void SetCursorPos(Point position)
 {
-	if (ControlMode != ControlTypes::KeyboardAndMouse) {
+	if (ControlDevice != ControlTypes::KeyboardAndMouse) {
 		MousePosition = position;
 		return;
 	}
@@ -398,6 +398,7 @@ void ProcessGamepadEvents(GameAction &action)
 		Uint8 simulatedButton = action.send_mouse_click.button == GameActionSendMouseClick::LEFT ? SDL_BUTTON_LEFT : SDL_BUTTON_RIGHT;
 		SDL_Event clickEvent;
 		SetMouseButtonEvent(clickEvent, action.send_mouse_click.up ? SDL_MOUSEBUTTONUP : SDL_MOUSEBUTTONDOWN, simulatedButton, MousePosition);
+		NextMouseButtonClickEventIsSimulated();
 		SDL_PushEvent(&clickEvent);
 		break;
 	}
diff --git a/Source/movie.cpp b/Source/movie.cpp
index e9ec6ba6d..5ef3191d5 100644
--- a/Source/movie.cpp
+++ b/Source/movie.cpp
@@ -31,7 +31,7 @@ void play_movie(const char *pszMovie, bool userCanClose)
 	stream_stop();
 	effects_play_sound("Sfx\\Misc\\blank.wav");
 
-	if (IsHardwareCursorEnabled() && ControlMode == ControlTypes::KeyboardAndMouse) {
+	if (IsHardwareCursorEnabled() && ControlDevice == ControlTypes::KeyboardAndMouse) {
 		SetHardwareCursorVisible(false);
 	}