diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 611e9a0e..85313a81 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -982,6 +982,10 @@ for %s (%s)' % (name, urlplugin.__class__.__name__))
         """Inform other parts of the application when focus is received"""
         self.emit('focus-in')
 
+    def on_window_focus_out(self):
+        """Update our UI when the window loses focus"""
+        self.titlebar.update('window-focus-out')
+
     def scrollbar_jump(self, position):
         """Move the scrollbar to a particular row"""
         self.scrollbar.set_value(position)
diff --git a/terminatorlib/titlebar.py b/terminatorlib/titlebar.py
index 1921535b..5f26b50d 100755
--- a/terminatorlib/titlebar.py
+++ b/terminatorlib/titlebar.py
@@ -127,7 +127,13 @@ class Titlebar(gtk.EventBox):
                     default_bg = True
                 group_fg = self.config['title_inactive_fg_color']
                 group_bg = self.config['title_inactive_bg_color']
+            elif other == 'window-focus-out':
+                title_fg = self.config['title_inactive_fg_color']
+                title_bg = self.config['title_inactive_bg_color']
+                icon = '_receive_off'
+                default_bg = True
             else:
+                # We're the active terminal
                 title_fg = self.config['title_transmit_fg_color']
                 title_bg = self.config['title_transmit_bg_color']
                 if terminator.groupsend == terminator.groupsend_type['all']:
diff --git a/terminatorlib/window.py b/terminatorlib/window.py
index 42c51b2f..88712ce0 100755
--- a/terminatorlib/window.py
+++ b/terminatorlib/window.py
@@ -186,8 +186,8 @@ class Window(Container, gtk.Window):
 
     def on_focus_out(self, window, event):
         """Focus has left the window"""
-        # FIXME: Cause the terminal titlebars to update here
-        pass
+        for terminal in self.get_visible_terminals():
+            terminal.on_window_focus_out()
 
     def on_focus_in(self, window, event):
         """Focus has entered the window"""