diff --git a/src/cascadia/TerminalApp/AppAppearanceConfig.cpp b/src/cascadia/TerminalApp/AppAppearanceConfig.cpp
index 29845d8eb5b..df2aaf5fcff 100644
--- a/src/cascadia/TerminalApp/AppAppearanceConfig.cpp
+++ b/src/cascadia/TerminalApp/AppAppearanceConfig.cpp
@@ -12,4 +12,11 @@ using namespace winrt::Microsoft::Terminal::TerminalControl;
 
 namespace winrt::TerminalApp::implementation
 {
+    void AppAppearanceConfig::ApplyColorScheme(const Microsoft::Terminal::Settings::Model::ColorScheme& scheme)
+    {
+        _DefaultForeground = til::color{ scheme.Foreground() };
+        _DefaultBackground = til::color{ scheme.Background() };
+        _SelectionBackground = til::color{ scheme.SelectionBackground() };
+        _CursorColor = til::color{ scheme.CursorColor() };
+    }
 }
diff --git a/src/cascadia/TerminalApp/AppAppearanceConfig.h b/src/cascadia/TerminalApp/AppAppearanceConfig.h
index 9900d28fec7..a26a81e53cc 100644
--- a/src/cascadia/TerminalApp/AppAppearanceConfig.h
+++ b/src/cascadia/TerminalApp/AppAppearanceConfig.h
@@ -12,6 +12,7 @@ namespace winrt::TerminalApp::implementation
     struct AppAppearanceConfig : AppAppearanceConfigT<AppAppearanceConfig>
     {
         AppAppearanceConfig() = default;
+        void ApplyColorScheme(const Microsoft::Terminal::Settings::Model::ColorScheme& scheme);
 
         GETSET_PROPERTY(hstring, ColorSchemeName);
         GETSET_PROPERTY(uint32_t, DefaultForeground, DEFAULT_FOREGROUND_WITH_ALPHA);
diff --git a/src/cascadia/TerminalApp/TerminalSettings.cpp b/src/cascadia/TerminalApp/TerminalSettings.cpp
index 83d07ce47d3..48c6cd30c7d 100644
--- a/src/cascadia/TerminalApp/TerminalSettings.cpp
+++ b/src/cascadia/TerminalApp/TerminalSettings.cpp
@@ -161,8 +161,14 @@ namespace winrt::TerminalApp::implementation
         {
             auto unfocusedConfig = winrt::make_self<implementation::AppAppearanceConfig>();
 
-            unfocusedConfig->ColorSchemeName(profile.UnfocusedConfig().ColorSchemeName());
             unfocusedConfig->CursorShape(profile.UnfocusedConfig().CursorShape());
+            if (!profile.UnfocusedConfig().ColorSchemeName().empty())
+            {
+                if (const auto scheme = schemes.TryLookup(profile.UnfocusedConfig().ColorSchemeName()))
+                {
+                    unfocusedConfig->ApplyColorScheme(scheme);
+                }
+            }
             if (profile.UnfocusedConfig().Background())
             {
                 unfocusedConfig->DefaultBackground(til::color{ profile.UnfocusedConfig().Background().Value() });
@@ -181,7 +187,7 @@ namespace winrt::TerminalApp::implementation
             }
             if (!profile.UnfocusedConfig().BackgroundImagePath().empty())
             {
-                unfocusedConfig->BackgroundImage(profile.UnfocusedConfig().BackgroundImagePath());
+                unfocusedConfig->BackgroundImage(profile.UnfocusedConfig().ExpandedBackgroundImagePath());
             }
             _UnfocusedConfig = *unfocusedConfig;
         }
diff --git a/src/cascadia/TerminalControl/TermControl.cpp b/src/cascadia/TerminalControl/TermControl.cpp
index 9612eadf9bb..b4efc67bec4 100644
--- a/src/cascadia/TerminalControl/TermControl.cpp
+++ b/src/cascadia/TerminalControl/TermControl.cpp
@@ -337,6 +337,28 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
                 co_return;
             }
 
+            if (!newAppearance.BackgroundImage().empty())
+            {
+                Windows::Foundation::Uri imageUri{ newAppearance.BackgroundImage() };
+
+                // Note that BitmapImage handles the image load asynchronously,
+                // which is especially important since the image
+                // may well be both large and somewhere out on the
+                // internet.
+                Media::Imaging::BitmapImage image(imageUri);
+                BackgroundImage().Source(image);
+
+                // Apply stretch, opacity and alignment settings
+                BackgroundImage().Stretch(_settings.BackgroundImageStretchMode());
+                BackgroundImage().Opacity(_settings.BackgroundImageOpacity());
+                BackgroundImage().HorizontalAlignment(_settings.BackgroundImageHorizontalAlignment());
+                BackgroundImage().VerticalAlignment(_settings.BackgroundImageVerticalAlignment());
+            }
+            else
+            {
+                BackgroundImage().Source(nullptr);
+            }
+
             // Update our control settings
             COLORREF bg = newAppearance.DefaultBackground();
             _BackgroundColorChanged(bg);
diff --git a/src/cascadia/TerminalCore/Terminal.cpp b/src/cascadia/TerminalCore/Terminal.cpp
index 244b6c6756f..44b24ed0033 100644
--- a/src/cascadia/TerminalCore/Terminal.cpp
+++ b/src/cascadia/TerminalCore/Terminal.cpp
@@ -188,6 +188,36 @@ void Terminal::UpdateAppearance(IAppearance appearance)
 {
     _defaultFg = appearance.DefaultForeground();
     _defaultBg = appearance.DefaultBackground();
+
+    CursorType cursorShape = CursorType::VerticalBar;
+    switch (appearance.CursorShape())
+    {
+    case CursorStyle::Underscore:
+        cursorShape = CursorType::Underscore;
+        break;
+    case CursorStyle::FilledBox:
+        cursorShape = CursorType::FullBox;
+        break;
+    case CursorStyle::EmptyBox:
+        cursorShape = CursorType::EmptyBox;
+        break;
+    case CursorStyle::Vintage:
+        cursorShape = CursorType::Legacy;
+        break;
+    default:
+    case CursorStyle::Bar:
+        cursorShape = CursorType::VerticalBar;
+        break;
+    }
+
+    if (_buffer)
+    {
+        _buffer->GetCursor().SetStyle(GetCursorHeight(),
+                                      GetCursorColor(),
+                                      cursorShape);
+    }
+
+    _defaultCursorShape = cursorShape;
 }
 
 // Method Description:
diff --git a/src/cascadia/TerminalSettingsModel/AppearanceConfig.cpp b/src/cascadia/TerminalSettingsModel/AppearanceConfig.cpp
index 031cb5a44d4..6c20e74e893 100644
--- a/src/cascadia/TerminalSettingsModel/AppearanceConfig.cpp
+++ b/src/cascadia/TerminalSettingsModel/AppearanceConfig.cpp
@@ -33,3 +33,33 @@ void AppearanceConfig::LayerJson(const Json::Value& json)
     JsonUtils::GetValueForKey(json, CursorShapeKey, _CursorShape);
     JsonUtils::GetValueForKey(json, BackgroundImageKey, _BackgroundImagePath);
 }
+
+// NOTE: This is just placeholder for now, eventually the path will no longer be expanded in the settings model
+winrt::hstring AppearanceConfig::ExpandedBackgroundImagePath()
+{
+    const auto path{ BackgroundImagePath() };
+    if (path.empty())
+    {
+        return path;
+    }
+    // checks if the user would like to copy their desktop wallpaper
+    // if so, replaces the path with the desktop wallpaper's path
+    else if (path == L"desktopWallpaper")
+    {
+        WCHAR desktopWallpaper[MAX_PATH];
+
+        // "The returned string will not exceed MAX_PATH characters" as of 2020
+        if (SystemParametersInfo(SPI_GETDESKWALLPAPER, MAX_PATH, desktopWallpaper, SPIF_UPDATEINIFILE))
+        {
+            return winrt::hstring{ (desktopWallpaper) };
+        }
+        else
+        {
+            return winrt::hstring{ L"" };
+        }
+    }
+    else
+    {
+        return winrt::hstring{ wil::ExpandEnvironmentStringsW<std::wstring>(path.c_str()) };
+    }
+}
diff --git a/src/cascadia/TerminalSettingsModel/AppearanceConfig.h b/src/cascadia/TerminalSettingsModel/AppearanceConfig.h
index ee18f223c40..bb06f636c9a 100644
--- a/src/cascadia/TerminalSettingsModel/AppearanceConfig.h
+++ b/src/cascadia/TerminalSettingsModel/AppearanceConfig.h
@@ -17,6 +17,7 @@ namespace winrt::Microsoft::Terminal::Settings::Model::implementation
         AppearanceConfig();
 
         void LayerJson(const Json::Value& json);
+        winrt::hstring ExpandedBackgroundImagePath();
 
         GETSET_SETTING(hstring, ColorSchemeName, L"Campbell");
         GETSET_NULLABLE_SETTING(Windows::UI::Color, Foreground, nullptr);
diff --git a/src/cascadia/TerminalSettingsModel/AppearanceConfig.idl b/src/cascadia/TerminalSettingsModel/AppearanceConfig.idl
index 1cea97606cb..84d21b14da1 100644
--- a/src/cascadia/TerminalSettingsModel/AppearanceConfig.idl
+++ b/src/cascadia/TerminalSettingsModel/AppearanceConfig.idl
@@ -33,5 +33,6 @@ namespace Microsoft.Terminal.Settings.Model
         Boolean HasBackgroundImagePath();
         void ClearBackgroundImagePath();
         String BackgroundImagePath;
+        String ExpandedBackgroundImagePath { get; };
     }
 }