diff --git a/crates/bevy_winit/src/cursor.rs b/crates/bevy_winit/src/cursor.rs
index 2dbcb12d7c..6e601f2429 100644
--- a/crates/bevy_winit/src/cursor.rs
+++ b/crates/bevy_winit/src/cursor.rs
@@ -8,7 +8,7 @@ use crate::{
 use crate::{
     custom_cursor::{
         calculate_effective_rect, extract_and_transform_rgba_pixels, extract_rgba_pixels,
-        CustomCursorPlugin,
+        transform_hotspot, CustomCursorPlugin,
     },
     state::{CustomCursorCache, CustomCursorCacheKey},
     WinitCustomCursor,
@@ -124,10 +124,13 @@ fn update_cursors(
                     let (rect, needs_sub_image) =
                         calculate_effective_rect(&texture_atlases, image, texture_atlas, rect);
 
-                    let maybe_rgba = if *flip_x || *flip_y || needs_sub_image {
-                        extract_and_transform_rgba_pixels(image, *flip_x, *flip_y, rect)
+                    let (maybe_rgba, hotspot) = if *flip_x || *flip_y || needs_sub_image {
+                        (
+                            extract_and_transform_rgba_pixels(image, *flip_x, *flip_y, rect),
+                            transform_hotspot(*hotspot, *flip_x, *flip_y, rect),
+                        )
                     } else {
-                        extract_rgba_pixels(image)
+                        (extract_rgba_pixels(image), *hotspot)
                     };
 
                     let Some(rgba) = maybe_rgba else {
diff --git a/crates/bevy_winit/src/custom_cursor.rs b/crates/bevy_winit/src/custom_cursor.rs
index cc5854e7ed..fe6538b915 100644
--- a/crates/bevy_winit/src/custom_cursor.rs
+++ b/crates/bevy_winit/src/custom_cursor.rs
@@ -17,8 +17,14 @@ pub struct CustomCursorImage {
     /// An optional texture atlas used to render the image.
     pub texture_atlas: Option<TextureAtlas>,
     /// Whether the image should be flipped along its x-axis.
+    ///
+    /// If true, the cursor's `hotspot` automatically flips along with the
+    /// image.
     pub flip_x: bool,
     /// Whether the image should be flipped along its y-axis.
+    ///
+    /// If true, the cursor's `hotspot` automatically flips along with the
+    /// image.
     pub flip_y: bool,
     /// An optional rectangle representing the region of the image to render,
     /// instead of rendering the full image. This is an easy one-off alternative
@@ -29,6 +35,10 @@ pub struct CustomCursorImage {
     pub rect: Option<URect>,
     /// X and Y coordinates of the hotspot in pixels. The hotspot must be within
     /// the image bounds.
+    ///
+    /// If you are flipping the image using `flip_x` or `flip_y`, you don't need
+    /// to adjust this field to account for the flip because it is adjusted
+    /// automatically.
     pub hotspot: (u16, u16),
 }
 
@@ -184,6 +194,28 @@ pub(crate) fn extract_and_transform_rgba_pixels(
     Some(sub_image_data)
 }
 
+/// Transforms the `hotspot` coordinates based on whether the image is flipped
+/// or not. The `rect` is used to determine the image's dimensions.
+pub(crate) fn transform_hotspot(
+    hotspot: (u16, u16),
+    flip_x: bool,
+    flip_y: bool,
+    rect: Rect,
+) -> (u16, u16) {
+    let hotspot_x = hotspot.0 as f32;
+    let hotspot_y = hotspot.1 as f32;
+    let (width, height) = (rect.width(), rect.height());
+
+    let hotspot_x = if flip_x { width - hotspot_x } else { hotspot_x };
+    let hotspot_y = if flip_y {
+        height - hotspot_y
+    } else {
+        hotspot_y
+    };
+
+    (hotspot_x as u16, hotspot_y as u16)
+}
+
 #[cfg(test)]
 mod tests {
     use bevy_app::App;
@@ -542,4 +574,48 @@ mod tests {
             0, 255, 255, 255, // Cyan
         ]
     );
+
+    #[test]
+    fn test_transform_hotspot_no_flip() {
+        let hotspot = (10, 20);
+        let rect = Rect {
+            min: Vec2::ZERO,
+            max: Vec2::new(100.0, 200.0),
+        };
+        let transformed = transform_hotspot(hotspot, false, false, rect);
+        assert_eq!(transformed, (10, 20));
+    }
+
+    #[test]
+    fn test_transform_hotspot_flip_x() {
+        let hotspot = (10, 20);
+        let rect = Rect {
+            min: Vec2::ZERO,
+            max: Vec2::new(100.0, 200.0),
+        };
+        let transformed = transform_hotspot(hotspot, true, false, rect);
+        assert_eq!(transformed, (90, 20));
+    }
+
+    #[test]
+    fn test_transform_hotspot_flip_y() {
+        let hotspot = (10, 20);
+        let rect = Rect {
+            min: Vec2::ZERO,
+            max: Vec2::new(100.0, 200.0),
+        };
+        let transformed = transform_hotspot(hotspot, false, true, rect);
+        assert_eq!(transformed, (10, 180));
+    }
+
+    #[test]
+    fn test_transform_hotspot_flip_both() {
+        let hotspot = (10, 20);
+        let rect = Rect {
+            min: Vec2::ZERO,
+            max: Vec2::new(100.0, 200.0),
+        };
+        let transformed = transform_hotspot(hotspot, true, true, rect);
+        assert_eq!(transformed, (90, 180));
+    }
 }