diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 156f8b9a..44b5b097 100644
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -6,6 +6,7 @@
 import os
 import signal
 import gi
+import cairo
 from gi.repository import GLib, GObject, Pango, Gtk, Gdk, GdkPixbuf
 gi.require_version('Vte', '2.91')  # vte-0.38 (gnome-3.14)
 from gi.repository import Vte
@@ -31,6 +32,25 @@ from . import plugin
 from terminatorlib.layoutlauncher import LayoutLauncher
 from . import regex
 
+class Overpaint(Vte.Terminal):
+    def __init__(self):
+        Vte.Terminal.__init__(self)
+        self.config = Config()
+        self.dim_p = float(self.config['inactive_color_offset'])
+        self.dim_l = round(1.0 - self.dim_p,3) 
+    def dim(self,b):
+        self.overpaint = b
+
+    def do_draw(self,cr):
+        bgc = Vte.Terminal.get_color_background_for_draw(self)
+        Vte.Terminal.do_draw(self,cr)
+        if self.overpaint:
+            bgc.alpha = self.dim_l
+            cr.set_operator(cairo.Operator.OVER)
+            Gdk.cairo_set_source_rgba(cr,bgc)
+            cr.rectangle(0.0,0.0,self.get_allocated_width(),self.get_allocated_height())
+            cr.paint()
+
 # pylint: disable-msg=R0904
 class Terminal(Gtk.VBox):
     """Class implementing the VTE widget and its wrappings"""
@@ -102,10 +122,8 @@ class Terminal(Gtk.VBox):
     directory = None
 
     fgcolor_active = None
-    fgcolor_inactive = None
     bgcolor = None
     palette_active = None
-    palette_inactive = None
 
     composite_support = None
 
@@ -135,7 +153,9 @@ class Terminal(Gtk.VBox):
 
         self.pending_on_vte_size_allocate = False
 
-        self.vte = Vte.Terminal()
+        self.vte = Overpaint()
+        self.vte.dim(False)
+        self.queue_draw()
         self.background_image = None
         if self.config['background_image'] != '':
             self.vte.set_clear_background(False)
@@ -731,58 +751,23 @@ class Terminal(Gtk.VBox):
         else:
             self.bgcolor.alpha = 1
 
-        factor = self.config['inactive_color_offset']
-        if factor > 1.0:
-          factor = 1.0
-        self.fgcolor_inactive = self.fgcolor_active.copy()
-        dbg(("fgcolor_inactive set to: RGB(%s,%s,%s)", getattr(self.fgcolor_inactive, "red"),
-                                                      getattr(self.fgcolor_inactive, "green"),
-                                                      getattr(self.fgcolor_inactive, "blue")))
-
-        for bit in ['red', 'green', 'blue']:
-            setattr(self.fgcolor_inactive, bit,
-                    getattr(self.fgcolor_inactive, bit) * factor)
-
-        dbg(("fgcolor_inactive set to: RGB(%s,%s,%s)", getattr(self.fgcolor_inactive, "red"),
-                                                      getattr(self.fgcolor_inactive, "green"),
-                                                      getattr(self.fgcolor_inactive, "blue")))
         colors = self.config['palette'].split(':')
         self.palette_active = []
+
         for color in colors:
             if color:
                 newcolor = Gdk.RGBA()
                 newcolor.parse(color)
                 self.palette_active.append(newcolor)
-        if len(colors) == 16:
-            # RGB values for indices 16..255 copied from vte source in order to dim them
-            shades = [0, 95, 135, 175, 215, 255]
-            for r in range(0, 6):
-                for g in range(0, 6):
-                    for b in range(0, 6):
-                        newcolor = Gdk.RGBA()
-                        setattr(newcolor, "red",   shades[r] / 255.0)
-                        setattr(newcolor, "green", shades[g] / 255.0)
-                        setattr(newcolor, "blue",  shades[b] / 255.0)
-                        self.palette_active.append(newcolor)
-            for y in range(8, 248, 10):
-                newcolor = Gdk.RGBA()
-                setattr(newcolor, "red",   y / 255.0)
-                setattr(newcolor, "green", y / 255.0)
-                setattr(newcolor, "blue",  y / 255.0)
-                self.palette_active.append(newcolor)
-        self.palette_inactive = []
-        for color in self.palette_active:
-            newcolor = Gdk.RGBA()
-            for bit in ['red', 'green', 'blue']:
-                setattr(newcolor, bit,
-                        getattr(color, bit) * factor)
-            self.palette_inactive.append(newcolor)
-        if self.terminator.last_focused_term == self:
-            self.vte.set_colors(self.fgcolor_active, self.bgcolor,
+        self.vte.set_colors(self.fgcolor_active, self.bgcolor,
                                 self.palette_active)
+
+        if self.terminator.last_focused_term == self:
+            self.vte.dim(False)
+            self.queue_draw()
         else:
-            self.vte.set_colors(self.fgcolor_inactive, self.bgcolor,
-                                self.palette_inactive)
+            self.vte.dim(True)
+            self.queue_draw()
         profiles = self.config.base.profiles
         terminal_box_style_context = self.terminalbox.get_style_context()
         for profile in list(profiles.keys()):
@@ -1293,9 +1278,8 @@ class Terminal(Gtk.VBox):
 
     def on_vte_focus_in(self, _widget, _event):
         """Inform other parts of the application when focus is received"""
-        self.vte.set_colors(self.fgcolor_active, self.bgcolor,
-                            self.palette_active)
-        self.set_cursor_color()
+        self.vte.dim(False)
+        self.queue_draw()
         if not self.terminator.doing_layout:
             self.terminator.last_focused_term = self
             if self.get_toplevel().is_child_notebook():
@@ -1309,9 +1293,8 @@ class Terminal(Gtk.VBox):
 
     def on_vte_focus_out(self, _widget, _event):
         """Inform other parts of the application when focus is lost"""
-        self.vte.set_colors(self.fgcolor_inactive, self.bgcolor,
-                            self.palette_inactive)
-        self.set_cursor_color()
+        self.vte.dim(True)
+        self.queue_draw()
         self.emit('focus-out')
 
     def on_window_focus_out(self):