diff --git a/src/test/test.js b/src/test/test.js
index 1644e5800f..cad1dfc416 100644
--- a/src/test/test.js
+++ b/src/test/test.js
@@ -371,12 +371,17 @@ describe('xterm.js', function() {
     });
   });
 
-  describe('attachCustomEventHandler', function () {
+  describe('attachCustomKeyEventHandler', function () {
     var evKeyDown = {
       preventDefault: function() {},
       stopPropagation: function() {},
       type: 'keydown'
     }
+    var evKeyPress = {
+      preventDefault: function() {},
+      stopPropagation: function() {},
+      type: 'keypress'
+    }
 
     beforeEach(function() {
       xterm.handler = function() {};
@@ -387,29 +392,39 @@ describe('xterm.js', function() {
           bind: function() {
             return function () { return true; }
           }
+        },
+        keypress: {
+          bind: function() {
+            return function () { return true; }
+          }
         }
       }
     });
 
-    it('should process the keydown event based on what the handler returns', function () {
+    it('should process the keydown/keypress event based on what the handler returns', function () {
       assert.equal(xterm.keyDown(Object.assign({}, evKeyDown, { keyCode: 77 })), true);
-      xterm.attachCustomKeydownHandler(function (ev) {
+      assert.equal(xterm.keyPress(Object.assign({}, evKeyPress, { keyCode: 77 })), true);
+      xterm.attachCustomKeyEventHandler(function (ev) {
         return ev.keyCode === 77;
       });
       assert.equal(xterm.keyDown(Object.assign({}, evKeyDown, { keyCode: 77 })), true);
-      xterm.attachCustomKeydownHandler(function (ev) {
+      assert.equal(xterm.keyPress(Object.assign({}, evKeyPress, { keyCode: 77 })), true);
+      xterm.attachCustomKeyEventHandler(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);
     });
 
     it('should alive after reset(ESC c Full Reset (RIS))', function () {
-      xterm.attachCustomKeydownHandler(function (ev) {
+      xterm.attachCustomKeyEventHandler(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 cb060755e0..a16a4ac778 100644
--- a/src/xterm.js
+++ b/src/xterm.js
@@ -167,7 +167,7 @@ function Terminal(options) {
   this.queue = '';
   this.scrollTop = 0;
   this.scrollBottom = this.rows - 1;
-  this.customKeydownHandler = null;
+  this.customKeyEventHandler = null;
   this.cursorBlinkInterval = null;
 
   // modes
@@ -1329,15 +1329,27 @@ Terminal.prototype.writeln = function(data) {
 };
 
 /**
- * Attaches a custom keydown 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.
+ * DEPRECATED: only for backward compatibility. Please use attachCustomKeyEventHandler() instead.
  * @param {function} customKeydownHandler 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.attachCustomKeydownHandler = function(customKeydownHandler) {
-  this.customKeydownHandler = customKeydownHandler;
+  let message = 'attachCustomKeydownHandler() is DEPRECATED and will be removed soon. Please use attachCustomKeyEventHandler() instead.';
+  console.warn(message);
+  this.attachCustomKeyEventHandler(customKeydownHandler);
+}
+
+/**
+ * Attaches a custom key event 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.attachCustomKeyEventHandler = function(customKeyEventHandler) {
+  this.customKeyEventHandler = customKeyEventHandler;
 }
 
 /**
@@ -1436,7 +1448,7 @@ Terminal.prototype.selectAll = function() {
  * @param {KeyboardEvent} ev The keydown event to be handled.
  */
 Terminal.prototype.keyDown = function(ev) {
-  if (this.customKeydownHandler && this.customKeydownHandler(ev) === false) {
+  if (this.customKeyEventHandler && this.customKeyEventHandler(ev) === false) {
     return false;
   }
 
@@ -1801,6 +1813,10 @@ Terminal.prototype.setgCharset = function(g, charset) {
 Terminal.prototype.keyPress = function(ev) {
   var key;
 
+  if (this.customKeyEventHandler && this.customKeyEventHandler(ev) === false) {
+    return false;
+  }
+
   this.cancel(ev);
 
   if (ev.charCode) {
@@ -1826,7 +1842,7 @@ Terminal.prototype.keyPress = function(ev) {
   this.showCursor();
   this.handler(key);
 
-  return false;
+  return true;
 };
 
 /**
@@ -2259,10 +2275,10 @@ Terminal.prototype.reverseIndex = function() {
 Terminal.prototype.reset = function() {
   this.options.rows = this.rows;
   this.options.cols = this.cols;
-  var customKeydownHandler = this.customKeydownHandler;
+  var customKeyEventHandler = this.customKeyEventHandler;
   var cursorBlinkInterval = this.cursorBlinkInterval;
   Terminal.call(this, this.options);
-  this.customKeydownHandler = customKeydownHandler;
+  this.customKeyEventHandler = customKeyEventHandler;
   this.cursorBlinkInterval = cursorBlinkInterval;
   this.refresh(0, this.rows - 1);
   this.viewport.syncScrollArea();