diff --git a/kitty/screen.py b/kitty/screen.py
index 42a39e77e..0b8e88a2c 100644
--- a/kitty/screen.py
+++ b/kitty/screen.py
@@ -49,6 +49,7 @@ class Screen(QObject):
     title_changed = pyqtSignal(object)
     icon_changed = pyqtSignal(object)
     write_to_child = pyqtSignal(object)
+    change_default_color = pyqtSignal(object, object)
     _notify_cursor_position = True
 
     def __init__(self, opts, tracker, columns: int=80, lines: int=24, parent=None):
@@ -983,14 +984,29 @@ class Screen(QObject):
         else:  # DECLL
             pass
 
-    def set_cursor_color(self, color_name):
+    def set_dynamic_color(self, base, color_names=None):
+        # See http://invisible-island.net/xterm/ctlseqs/ctlseqs.html#h2-Operating-System-Commands
         try:
-            color_name = color_name.decode('utf-8') if color_name else None
+            color_names = color_names.decode('utf-8') if color_names else ''
         except Exception:
             return
-        old, self.cursor.color = self.cursor.color, color_name
-        if old != self.cursor.color:
-            self.cursor_changed(self.cursor)
+
+        def handle_val(val, param=None):
+            val %= 100
+            if val == 10:  # foreground
+                self.change_default_color.emit('fg', param)
+            elif val == 11:  # background
+                self.change_default_color.emit('bg', param)
+            elif val == 12:  # cursor color
+                old, self.cursor.color = self.cursor.color, param
+                if old != self.cursor.color:
+                    self.cursor_changed(self.cursor)
+
+        if color_names:
+            for i, cn in enumerate(filter(None, color_names.split(';'))):
+                handle_val(base + i, cn)
+        else:
+            handle_val(base)
 
     def normal_keypad_mode(self):
         pass  # Useless for us, since Qt takes care of handling the numpad
diff --git a/kitty/term.py b/kitty/term.py
index c60fffe32..05caff858 100644
--- a/kitty/term.py
+++ b/kitty/term.py
@@ -62,7 +62,7 @@ class TerminalWidget(QWidget):
         self.tracker.dirtied.connect(self.update_screen)
         sclass = DebugStream if dump_commands else Stream
         self.screen = Screen(opts, self.tracker, parent=self)
-        for s in 'write_to_child title_changed icon_changed'.split():
+        for s in 'write_to_child title_changed icon_changed change_default_color'.split():
             getattr(self.screen, s).connect(getattr(self, s))
         self.stream = sclass(self.screen)
         self.feed = self.stream.feed
@@ -87,8 +87,8 @@ class TerminalWidget(QWidget):
         pal.setColor(pal.Window, QColor(opts.background))
         pal.setColor(pal.WindowText, QColor(opts.foreground))
         self.setPalette(pal)
-        self.default_bg = pal.color(pal.Window)
-        self.default_fg = pal.color(pal.WindowText).getRgb()[:3]
+        self.default_bg = self.original_bg = pal.color(pal.Window)
+        self.default_fg = self.original_fg = pal.color(pal.WindowText).getRgb()[:3]
         build_ansi_color_tables(opts)
         self.current_font = f = QFont(opts.font_family)
         f.setPointSizeF(opts.font_size)
@@ -102,6 +102,20 @@ class TerminalWidget(QWidget):
         c.setAlphaF(opts.cursor_opacity)
         self.do_layout()
 
+    def change_default_color(self, which, val):
+        if which in ('fg', 'bg'):
+            if not val:
+                setattr(self, 'default_' + which, getattr(self, 'original_' + which))
+                self.update()
+            else:
+                val = QColor(val)
+                if val.isValid():
+                    if which == 'fg':
+                        self.default_fg = val.getRgb()[:3]
+                    else:
+                        self.default_bg = val
+                    self.update()
+
     def do_layout(self):
         previous, self.cells_per_line = self.cells_per_line, self.width() // self.cell_width
         previousl, self.lines_per_screen = self.lines_per_screen, self.height() // self.cell_height
diff --git a/pyte/streams.py b/pyte/streams.py
index 6ee6f8995..ec2aed939 100644
--- a/pyte/streams.py
+++ b/pyte/streams.py
@@ -127,7 +127,7 @@ class Stream(object):
     events = frozenset(itertools.chain(
         basic.values(), escape.values(), sharp.values(), csi.values(),
         ["define_charset", "select_other_charset"],
-        ["set_icon", "set_title", 'set_cursor_color'],  # OSC.
+        ["set_icon", "set_title", 'set_dynamic_color'],  # OSC.
         ["draw", "debug"]))
 
     #: A regular expression pattern matching everything what can be
@@ -338,14 +338,21 @@ class Stream(object):
                             param.extend(char)
 
                 param = bytes(param)
-                if code in b"01":
-                    listener.set_icon_name(param)
-                if code in b"02":
+                try:
+                    code = int(code)
+                except Exception:
+                    code = None
+                if code == 0:
                     listener.set_title(param)
-                elif code == b"12":
-                    listener.set_cursor_color(param)
-                elif code == b"112":
-                    listener.set_cursor_color(b'')
+                    listener.set_icon_name(param)
+                elif code == 1:
+                    listener.set_icon_name(param)
+                elif code == 2:
+                    listener.set_title(param)
+                elif 9 < code < 20:
+                    listener.set_dynamic_color(code, param)
+                elif 109 < code < 120:
+                    listener.set_dynamic_color(code)
             elif char == DCS:
                 # See http://invisible-island.net/xterm/ctlseqs/ctlseqs.html#h2-Device-Control-functions
                 code = yield