diff --git a/src/msw/dialog.cpp b/src/msw/dialog.cpp
index d199ae278b..7ce0760d50 100644
--- a/src/msw/dialog.cpp
+++ b/src/msw/dialog.cpp
@@ -430,34 +430,6 @@ WXLRESULT wxDialog::MSWWindowProc(WXUINT message, WXWPARAM wParam, WXLPARAM lPar
                 ::InvalidateRect(GetHwnd(), NULL, false /* erase bg */);
             }
             break;
-
-#ifndef __WXMICROWIN__
-        case WM_SETCURSOR:
-            // we want to override the busy cursor for modal dialogs:
-            // typically, wxBeginBusyCursor() is called and then a modal dialog
-            // is shown, but the modal dialog shouldn't have hourglass cursor
-            if ( IsModal() && wxIsBusy() )
-            {
-                // set our cursor for all windows (but see below)
-                wxCursor cursor = m_cursor;
-                if ( !cursor.IsOk() )
-                    cursor = wxCURSOR_ARROW;
-
-                ::SetCursor(GetHcursorOf(cursor));
-
-                // in any case, stop here and don't let wxWindow process this
-                // message (it would set the busy cursor)
-                processed = true;
-
-                // but return false to tell the child window (if the event
-                // comes from one of them and not from ourselves) that it can
-                // set its own cursor if it has one: thus, standard controls
-                // (e.g. text ctrl) still have correct cursors in a dialog
-                // invoked while wxIsBusy()
-                rc = false;
-            }
-            break;
-#endif // __WXMICROWIN__
     }
 
     if ( !processed )
diff --git a/src/msw/window.cpp b/src/msw/window.cpp
index 21a5a71613..0e3f79e4db 100644
--- a/src/msw/window.cpp
+++ b/src/msw/window.cpp
@@ -34,6 +34,7 @@
     #include "wx/dc.h"
     #include "wx/dcclient.h"
     #include "wx/dcmemory.h"
+    #include "wx/dialog.h"
     #include "wx/utils.h"
     #include "wx/app.h"
     #include "wx/layout.h"
@@ -4198,7 +4199,20 @@ bool wxWindowMSW::HandleSetCursor(WXHWND WXUNUSED(hWnd),
     //  3. if still no cursor but we're in a TLW, set the global cursor
 
     HCURSOR hcursor = 0;
+
+    // Check for "business" is complicated by the fact that modal dialogs shown
+    // while busy cursor is in effect shouldn't show it as they are active and
+    // accept input from the user, unlike all the other windows.
+    bool isBusy = false;
     if ( wxIsBusy() )
+    {
+        wxDialog* const
+            dlg = wxDynamicCast(wxGetTopLevelParent(this), wxDialog);
+        if ( !dlg || !dlg->IsModal() )
+            isBusy = true;
+    }
+
+    if ( isBusy )
     {
         hcursor = wxGetCurrentBusyCursor();
     }