diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 4f6af869..0ee7c21b 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -677,8 +677,12 @@ class Terminal(gtk.VBox):
                             getattr(newcolor_inactive, bit) * factor)
                 self.palette_active.append(newcolor)
                 self.palette_inactive.append(newcolor_inactive)
-        self.vte.set_colors(self.fgcolor_active, self.bgcolor,
-                            self.palette_active)
+        if self.terminator.last_focused_term == self:
+            self.vte.set_colors(self.fgcolor_active, self.bgcolor,
+                                self.palette_active)
+        else:
+            self.vte.set_colors(self.fgcolor_inactive, self.bgcolor,
+                                self.palette_inactive)
         self.set_cursor_color()
         if hasattr(self.vte, 'set_cursor_shape'):
             self.vte.set_cursor_shape(getattr(vte, 'CURSOR_SHAPE_' +
diff --git a/terminatorlib/terminator.py b/terminatorlib/terminator.py
index 5508d406..525748f4 100755
--- a/terminatorlib/terminator.py
+++ b/terminatorlib/terminator.py
@@ -25,6 +25,7 @@ class Terminator(Borg):
     groups = None
     config = None
     keybindings = None
+    last_focused_term = None
 
     origcwd = None
     dbus_path = None