diff --git a/src/Terminal.ts b/src/Terminal.ts
index 2cb1dcf08..391cd991f 100644
--- a/src/Terminal.ts
+++ b/src/Terminal.ts
@@ -183,6 +183,7 @@ export class Terminal extends EventEmitter implements ITerminal, IDisposable, II
 
   // user input states
   public writeBuffer: string[];
+  public writeBufferUtf8: Uint8Array[];
   private _writeInProgress: boolean;
 
   /**
@@ -340,6 +341,7 @@ export class Terminal extends EventEmitter implements ITerminal, IDisposable, II
 
     // user input states
     this.writeBuffer = [];
+    this.writeBufferUtf8 = [];
     this._writeInProgress = false;
 
     this._xoffSentToCatchUp = false;
@@ -1366,20 +1368,85 @@ export class Terminal extends EventEmitter implements ITerminal, IDisposable, II
   }
 
   /**
-   * Writes utf8 data to the terminal.
-   * TODO: This currently does no flow control.
+   * Writes raw utf8 bytes to the terminal.
+   * @param data The text to write to the terminal.
    */
   public writeUtf8(data: Uint8Array): void {
+    // Ensure the terminal isn't disposed
     if (this._isDisposed) {
       return;
     }
-    this._refreshStart = this.buffer.y;
-    this._refreshEnd = this.buffer.y;
 
-    this._inputHandler.parseUtf8(data);
+    // Ignore falsy data values (including the empty string)
+    if (!data) {
+      return;
+    }
 
-    this.updateRange(this.buffer.y);
-    this.refresh(this._refreshStart, this._refreshEnd);
+    this.writeBufferUtf8.push(data);
+
+    // Send XOFF to pause the pty process if the write buffer becomes too large so
+    // xterm.js can catch up before more data is sent. This is necessary in order
+    // to keep signals such as ^C responsive.
+    if (this.options.useFlowControl && !this._xoffSentToCatchUp && this.writeBufferUtf8.length >= WRITE_BUFFER_PAUSE_THRESHOLD) {
+      // XOFF - stop pty pipe
+      // XON will be triggered by emulator before processing data chunk
+      this.handler(C0.DC3);
+      this._xoffSentToCatchUp = true;
+    }
+
+    if (!this._writeInProgress && this.writeBufferUtf8.length > 0) {
+      // Kick off a write which will write all data in sequence recursively
+      this._writeInProgress = true;
+      // Kick off an async innerWrite so more writes can come in while processing data
+      setTimeout(() => {
+        this._innerWriteUtf8();
+      });
+    }
+  }
+
+  protected _innerWriteUtf8(bufferOffset: number = 0): void {
+    // Ensure the terminal isn't disposed
+    if (this._isDisposed) {
+      this.writeBufferUtf8 = [];
+    }
+
+    const startTime = Date.now();
+    while (this.writeBufferUtf8.length > bufferOffset) {
+      const data = this.writeBufferUtf8[bufferOffset];
+      bufferOffset++;
+
+      // If XOFF was sent in order to catch up with the pty process, resume it if
+      // we reached the end of the writeBuffer to allow more data to come in.
+      if (this._xoffSentToCatchUp && this.writeBufferUtf8.length === bufferOffset) {
+        this.handler(C0.DC1);
+        this._xoffSentToCatchUp = false;
+      }
+
+      this._refreshStart = this.buffer.y;
+      this._refreshEnd = this.buffer.y;
+
+      // HACK: Set the parser state based on it's state at the time of return.
+      // This works around the bug #662 which saw the parser state reset in the
+      // middle of parsing escape sequence in two chunks. For some reason the
+      // state of the parser resets to 0 after exiting parser.parse. This change
+      // just sets the state back based on the correct return statement.
+
+      this._inputHandler.parseUtf8(data);
+
+      this.updateRange(this.buffer.y);
+      this.refresh(this._refreshStart, this._refreshEnd);
+
+      if (Date.now() - startTime >= WRITE_TIMEOUT_MS) {
+        break;
+      }
+    }
+    if (this.writeBufferUtf8.length > bufferOffset) {
+      // Allow renderer to catch up before processing the next batch
+      setTimeout(() => this._innerWriteUtf8(bufferOffset), 0);
+    } else {
+      this._writeInProgress = false;
+      this.writeBufferUtf8 = [];
+    }
   }
 
   /**