diff --git a/examples/defaultScripts.js b/examples/defaultScripts.js
index 35af5f4eae..2c024c5bf0 100644
--- a/examples/defaultScripts.js
+++ b/examples/defaultScripts.js
@@ -22,3 +22,4 @@ Script.load("grab.js");
 Script.load("directory.js");
 Script.load("dialTone.js");
 Script.load("attachedEntitiesManager.js");
+Script.load("depthReticle.js");
diff --git a/examples/depthReticle.js b/examples/depthReticle.js
index 4b649f49b6..14a5ba5ff3 100644
--- a/examples/depthReticle.js
+++ b/examples/depthReticle.js
@@ -5,6 +5,8 @@
 //  Copyright 2016 High Fidelity, Inc.
 //
 //  When used in HMD, this script will make the reticle depth track to any clickable item in view.
+//  This script also handles auto-hiding the reticle after inactivity, as well as having the reticle
+//  seek the look at position upon waking up.
 //
 //  Distributed under the Apache License, Version 2.0.
 //  See the accompanying file LICENSE or http://www.apache.org/licenses/LICENSE-2.0.html
@@ -17,8 +19,89 @@ var desiredDepth = APPARENT_2D_OVERLAY_DEPTH;
 var TIME_BETWEEN_DEPTH_CHECKS = 100;
 var MINIMUM_DEPTH_ADJUST = 0.01;
 var NON_LINEAR_DIVISOR = 2;
+var MINIMUM_SEEK_DISTANCE = 0.01;
 
-Script.update.connect(function(deltaTime) {
+var lastMouseMove = Date.now();
+var lastMouseX = Reticle.position.x;
+var lastMouseY = Reticle.position.y;
+var HIDE_STATIC_MOUSE_AFTER = 3000; // 3 seconds
+var shouldSeekToLookAt = false;
+var fastMouseMoves = 0;
+var averageMouseVelocity = 0;
+var WEIGHTING = 1/20; // simple moving average over last 20 samples
+var ONE_MINUS_WEIGHTING = 1 - WEIGHTING;
+var AVERAGE_MOUSE_VELOCITY_FOR_SEEK_TO = 50;
+
+Controller.mouseMoveEvent.connect(function(mouseEvent) {
+    var now = Date.now();
+
+    // if the reticle is hidden, show it...
+    if (!Reticle.visible) {
+        Reticle.visible = true;
+        if (HMD.active) {
+            shouldSeekToLookAt = true;
+        }
+    } else {
+        // even if the reticle is visible, if we're in HMD mode, and the person is moving their mouse quickly (shaking it)
+        // then they are probably looking for it, and we should move into seekToLookAt mode
+        if (HMD.active && !shouldSeekToLookAt) {
+            var dx = Reticle.position.x - lastMouseX;
+            var dy = Reticle.position.y - lastMouseY;
+            var dt = Math.max(1, (now - lastMouseMove)); // mSecs since last mouse move
+            var mouseMoveDistance = Math.sqrt((dx*dx) + (dy*dy));
+            var mouseVelocity = mouseMoveDistance / dt;
+            averageMouseVelocity = (ONE_MINUS_WEIGHTING * averageMouseVelocity) + (WEIGHTING * mouseVelocity);
+            if (averageMouseVelocity > AVERAGE_MOUSE_VELOCITY_FOR_SEEK_TO) {
+                shouldSeekToLookAt = true;
+            }
+        }
+    }
+    lastMouseMove = now;
+    lastMouseX = mouseEvent.x;
+    lastMouseY = mouseEvent.y;
+});
+
+function seekToLookAt() {
+    // if we're currently seeking the lookAt move the mouse toward the lookat
+    if (shouldSeekToLookAt) {
+        averageMouseVelocity = 0; // reset this, these never count for movement...
+        var lookAt2D = HMD.getHUDLookAtPosition2D();
+        var currentReticlePosition = Reticle.position;
+        var distanceBetweenX = lookAt2D.x - Reticle.position.x;
+        var distanceBetweenY = lookAt2D.y - Reticle.position.y;
+        var moveX = distanceBetweenX / NON_LINEAR_DIVISOR;
+        var moveY = distanceBetweenY / NON_LINEAR_DIVISOR;
+        var newPosition = { x: Reticle.position.x + moveX, y: Reticle.position.y + moveY };
+        var closeEnoughX = false;
+        var closeEnoughY = false;
+        if (moveX < MINIMUM_SEEK_DISTANCE) {
+            newPosition.x = lookAt2D.x;
+            closeEnoughX = true;
+        }
+        if (moveY < MINIMUM_SEEK_DISTANCE) {
+            newPosition.y = lookAt2D.y;
+            closeEnoughY = true;
+        }
+        Reticle.position = newPosition;
+        if (closeEnoughX && closeEnoughY) {
+            shouldSeekToLookAt = false;
+        }
+    }
+}
+
+function autoHideReticle() {
+    // if we haven't moved in a long period of time, and we're not pointing at some
+    // system overlay (like a window), then hide the reticle
+    if (Reticle.visible && !Reticle.pointingAtSystemOverlay) {
+        var now = Date.now();
+        var timeSinceLastMouseMove = now - lastMouseMove;
+        if (timeSinceLastMouseMove > HIDE_STATIC_MOUSE_AFTER) {
+            Reticle.visible = false;
+        }
+    }
+}
+
+function checkReticleDepth() {
     var now = Date.now();
     var timeSinceLastDepthCheck = now - lastDepthCheckTime;
     if (timeSinceLastDepthCheck > TIME_BETWEEN_DEPTH_CHECKS) {
@@ -56,6 +139,9 @@ Script.update.connect(function(deltaTime) {
         }
     }
 
+}
+
+function moveToDesiredDepth() {
     // move the reticle toward the desired depth
     if (desiredDepth != Reticle.depth) {
 
@@ -69,4 +155,13 @@ Script.update.connect(function(deltaTime) {
 
         Reticle.setDepth(newDepth);
     }
+}
+
+Script.update.connect(function(deltaTime) {
+    autoHideReticle(); // auto hide reticle for desktop or HMD mode
+    if (HMD.active) {
+        seekToLookAt(); // handle moving the reticle toward the look at
+        checkReticleDepth(); // make sure reticle is at correct depth
+        moveToDesiredDepth(); // move the fade the reticle to the desired depth
+    }
 });
diff --git a/interface/src/ui/ApplicationCompositor.cpp b/interface/src/ui/ApplicationCompositor.cpp
index 59d794d7cb..e8e6a0a956 100644
--- a/interface/src/ui/ApplicationCompositor.cpp
+++ b/interface/src/ui/ApplicationCompositor.cpp
@@ -212,19 +212,21 @@ void ApplicationCompositor::displayOverlayTexture(RenderArgs* renderArgs) {
         geometryCache->renderUnitQuad(batch, vec4(vec3(1), _alpha));
 
         //draw the mouse pointer
-        // Get the mouse coordinates and convert to NDC [-1, 1]
-        vec2 canvasSize = qApp->getCanvasSize(); // desktop, use actual canvas...
-        vec2 mousePosition = toNormalizedDeviceScale(vec2(qApp->getMouse()), canvasSize);
-        // Invert the Y axis
-        mousePosition.y *= -1.0f;
+        if (getReticleVisible()) {
+            // Get the mouse coordinates and convert to NDC [-1, 1]
+            vec2 canvasSize = qApp->getCanvasSize(); // desktop, use actual canvas...
+            vec2 mousePosition = toNormalizedDeviceScale(vec2(qApp->getMouse()), canvasSize);
+            // Invert the Y axis
+            mousePosition.y *= -1.0f;
 
-        Transform model;
-        model.setTranslation(vec3(mousePosition, 0));
-        vec2 mouseSize = CURSOR_PIXEL_SIZE / canvasSize;
-        model.setScale(vec3(mouseSize, 1.0f));
-        batch.setModelTransform(model);
-        bindCursorTexture(batch);
-        geometryCache->renderUnitQuad(batch, vec4(1));
+            Transform model;
+            model.setTranslation(vec3(mousePosition, 0));
+            vec2 mouseSize = CURSOR_PIXEL_SIZE / canvasSize;
+            model.setScale(vec3(mouseSize, 1.0f));
+            batch.setModelTransform(model);
+            bindCursorTexture(batch);
+            geometryCache->renderUnitQuad(batch, vec4(1));
+        }
     });
 }