diff --git a/src/terminal/terminal.c b/src/terminal/terminal.c
index c12df4b9..1984185d 100644
--- a/src/terminal/terminal.c
+++ b/src/terminal/terminal.c
@@ -1954,15 +1954,16 @@ void guac_terminal_apply_color_scheme(guac_terminal* terminal,
         display->default_palette);
 
     /* Reinitialize default attributes of buffer and display */
-    terminal->buffer->default_character = *default_char;
+    guac_terminal_display_reset_palette(display);
     display->default_foreground = default_char->attributes.foreground;
     display->default_background = default_char->attributes.background;
 
-    /* Redraw background with new color */
+    /* Redraw terminal text and background */
     guac_terminal_repaint_default_layer(terminal, client->socket);
+    __guac_terminal_redraw_rect(terminal, 0, 0,
+            terminal->term_height - 1,
+            terminal->term_width - 1);
 
-    /* Force reset of terminal state */
-    guac_terminal_reset(terminal);
     guac_terminal_notify(terminal);
 
 }
diff --git a/src/terminal/terminal/terminal.h b/src/terminal/terminal/terminal.h
index 6de984bf..28085f67 100644
--- a/src/terminal/terminal/terminal.h
+++ b/src/terminal/terminal/terminal.h
@@ -1074,9 +1074,8 @@ int guac_terminal_available_scroll(guac_terminal* term);
 
 /**
  * Immediately applies the given color scheme to the given terminal, overriding
- * the color scheme provided when the terminal was created. Applying the color
- * scheme implicitly clears the display and resets the terminal state. Valid
- * color schemes are those accepted by guac_terminal_parse_color_scheme().
+ * the color scheme provided when the terminal was created. Valid color schemes
+ * are those accepted by guac_terminal_parse_color_scheme().
  *
  * @param terminal
  *     The terminal to apply the color scheme to.