diff --git a/src/test/test.js b/src/test/test.js
index 1644e5800..12cd9dc24 100644
--- a/src/test/test.js
+++ b/src/test/test.js
@@ -377,6 +377,11 @@ describe('xterm.js', function() {
       stopPropagation: function() {},
       type: 'keydown'
     }
+    var evKeyPress = {
+      preventDefault: function() {},
+      stopPropagation: function() {},
+      type: 'keypress'
+    }
 
     beforeEach(function() {
       xterm.handler = function() {};
@@ -387,6 +392,11 @@ describe('xterm.js', function() {
           bind: function() {
             return function () { return true; }
           }
+        },
+        keypress: {
+          bind: function() {
+            return function () { return true; }
+          }
         }
       }
     });
@@ -403,13 +413,30 @@ describe('xterm.js', function() {
       assert.equal(xterm.keyDown(Object.assign({}, evKeyDown, { keyCode: 77 })), false);
     });
 
+    it('should process the keypress event based on what the handler returns', function () {
+      assert.equal(xterm.keyPress(Object.assign({}, evKeyPress, { keyCode: 77 })), true);
+      xterm.attachCustomKeypressHandler(function (ev) {
+        return ev.keyCode === 77;
+      });
+      assert.equal(xterm.keyPress(Object.assign({}, evKeyPress, { keyCode: 77 })), true);
+      xterm.attachCustomKeypressHandler(function (ev) {
+        return ev.keyCode !== 77;
+      });
+      assert.equal(xterm.keyPress(Object.assign({}, evKeyPress, { keyCode: 77 })), false);
+    });
+
     it('should alive after reset(ESC c Full Reset (RIS))', function () {
       xterm.attachCustomKeydownHandler(function (ev) {
         return ev.keyCode !== 77;
       });
+      xterm.attachCustomKeypressHandler(function (ev) {
+        return ev.keyCode !== 77;
+      });
       assert.equal(xterm.keyDown(Object.assign({}, evKeyDown, { keyCode: 77 })), false);
+      assert.equal(xterm.keyPress(Object.assign({}, evKeyPress, { keyCode: 77 })), false);
       xterm.reset();
       assert.equal(xterm.keyDown(Object.assign({}, evKeyDown, { keyCode: 77 })), false);
+      assert.equal(xterm.keyPress(Object.assign({}, evKeyPress, { keyCode: 77 })), false);
     });
   });
 
diff --git a/src/xterm.js b/src/xterm.js
index 0abcbeaeb..647d0c6dc 100644
--- a/src/xterm.js
+++ b/src/xterm.js
@@ -168,6 +168,7 @@ function Terminal(options) {
   this.scrollTop = 0;
   this.scrollBottom = this.rows - 1;
   this.customKeydownHandler = null;
+  this.customKeypressHandler = null;
   this.cursorBlinkInterval = null;
 
   // modes
@@ -1316,6 +1317,18 @@ Terminal.prototype.attachCustomKeydownHandler = function(customKeydownHandler) {
   this.customKeydownHandler = customKeydownHandler;
 }
 
+/**
+ * Attaches a custom keypress handler which is run before keys are processed, giving consumers of
+ * xterm.js ultimate control as to what keys should be processed by the terminal and what keys
+ * should not.
+ * @param {function} customKeypressHandler The custom KeyboardEvent handler to attach. This is a
+ *   function that takes a KeyboardEvent, allowing consumers to stop propogation and/or prevent
+ *   the default action. The function returns whether the event should be processed by xterm.js.
+ */
+Terminal.prototype.attachCustomKeypressHandler = function(customKeypressHandler) {
+  this.customKeypressHandler = customKeypressHandler;
+}
+
 /**
  * Attaches a http(s) link handler, forcing web links to behave differently to
  * regular <a> tags. This will trigger a refresh as links potentially need to be
@@ -1777,6 +1790,10 @@ Terminal.prototype.setgCharset = function(g, charset) {
 Terminal.prototype.keyPress = function(ev) {
   var key;
 
+  if (this.customKeypressHandler && this.customKeypressHandler(ev) === false) {
+    return false;
+  }
+
   this.cancel(ev);
 
   if (ev.charCode) {
@@ -1802,7 +1819,7 @@ Terminal.prototype.keyPress = function(ev) {
   this.showCursor();
   this.handler(key);
 
-  return false;
+  return true;
 };
 
 /**
@@ -2236,9 +2253,11 @@ Terminal.prototype.reset = function() {
   this.options.rows = this.rows;
   this.options.cols = this.cols;
   var customKeydownHandler = this.customKeydownHandler;
+  var customKeypressHandler = this.customKeypressHandler; 
   var cursorBlinkInterval = this.cursorBlinkInterval;
   Terminal.call(this, this.options);
   this.customKeydownHandler = customKeydownHandler;
+  this.customKeypressHandler = customKeypressHandler;
   this.cursorBlinkInterval = cursorBlinkInterval;
   this.refresh(0, this.rows - 1);
   this.viewport.syncScrollArea();