diff --git a/options-table.c b/options-table.c
index 5e21c692..089a9b86 100644
--- a/options-table.c
+++ b/options-table.c
@@ -61,6 +61,11 @@ const struct options_table_entry server_options_table[] = {
 	  .default_num = 20
 	},
 
+	{ .name = "default-terminal",
+	  .type = OPTIONS_TABLE_STRING,
+	  .default_str = "screen"
+	},
+
 	{ .name = "escape-time",
 	  .type = OPTIONS_TABLE_NUMBER,
 	  .minimum = 0,
@@ -143,11 +148,6 @@ const struct options_table_entry session_options_table[] = {
 	  .default_str = _PATH_BSHELL
 	},
 
-	{ .name = "default-terminal",
-	  .type = OPTIONS_TABLE_STRING,
-	  .default_str = "screen"
-	},
-
 	{ .name = "destroy-unattached",
 	  .type = OPTIONS_TABLE_FLAG,
 	  .default_num = 0
diff --git a/server-fn.c b/server-fn.c
index 85067a87..0e6e4d46 100644
--- a/server-fn.c
+++ b/server-fn.c
@@ -36,7 +36,7 @@ server_fill_environ(struct session *s, struct environ *env)
 	long	pid;
 
 	if (s != NULL) {
-		term = options_get_string(&s->options, "default-terminal");
+		term = options_get_string(&global_options, "default-terminal");
 		environ_set(env, "TERM", term);
 
 		idx = s->id;
diff --git a/tmux.1 b/tmux.1
index 5bf77829..a7f5f3ef 100644
--- a/tmux.1
+++ b/tmux.1
@@ -2266,6 +2266,19 @@ Available server options are:
 Set the number of buffers; as new buffers are added to the top of the stack,
 old ones are removed from the bottom if necessary to maintain this maximum
 length.
+.It Ic default-terminal Ar terminal
+Set the default terminal for new windows created in this session - the
+default value of the
+.Ev TERM
+environment variable.
+For
+.Nm
+to work correctly, this
+.Em must
+be set to
+.Ql screen ,
+.Ql tmux
+or a derivative of them.
 .It Ic escape-time Ar time
 Set the time in milliseconds for which
 .Nm
@@ -2405,18 +2418,6 @@ or
 This option should be configured when
 .Nm
 is used as a login shell.
-.It Ic default-terminal Ar terminal
-Set the default terminal for new windows created in this session - the
-default value of the
-.Ev TERM
-environment variable.
-For
-.Nm
-to work correctly, this
-.Em must
-be set to
-.Ql screen
-or a derivative of it.
 .It Xo Ic destroy-unattached
 .Op Ic on | off
 .Xc
diff --git a/tty.c b/tty.c
index ee52d038..f6db8e20 100644
--- a/tty.c
+++ b/tty.c
@@ -34,6 +34,7 @@
 void	tty_read_callback(struct bufferevent *, void *);
 void	tty_error_callback(struct bufferevent *, short, void *);
 
+void	tty_set_italics(struct tty *);
 int	tty_try_256(struct tty *, u_char, const char *);
 
 void	tty_colours(struct tty *, const struct grid_cell *);
@@ -456,6 +457,21 @@ tty_putn(struct tty *tty, const void *buf, size_t len, u_int width)
 	tty->cx += width;
 }
 
+void
+tty_set_italics(struct tty *tty)
+{
+	const char	*s;
+
+	if (tty_term_has(tty->term, TTYC_SITM)) {
+		s = options_get_string(&global_options, "default-terminal");
+		if (strcmp(s, "screen") != 0 && strncmp(s, "screen-", 7) != 0) {
+			tty_putcode(tty, TTYC_SITM);
+			return;
+		}
+	}
+	tty_putcode(tty, TTYC_SMSO);
+}
+
 void
 tty_set_title(struct tty *tty, const char *title)
 {
@@ -1396,12 +1412,8 @@ tty_attributes(struct tty *tty, const struct grid_cell *gc,
 		tty_putcode(tty, TTYC_BOLD);
 	if (changed & GRID_ATTR_DIM)
 		tty_putcode(tty, TTYC_DIM);
-	if (changed & GRID_ATTR_ITALICS) {
-		if (tty_term_has(tty->term, TTYC_SITM))
-			tty_putcode(tty, TTYC_SITM);
-		else
-			tty_putcode(tty, TTYC_SMSO);
-	}
+	if (changed & GRID_ATTR_ITALICS)
+		tty_set_italics(tty);
 	if (changed & GRID_ATTR_UNDERSCORE)
 		tty_putcode(tty, TTYC_SMUL);
 	if (changed & GRID_ATTR_BLINK)