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This question already has an answer here:

In its document (https://www.iterm2.com/documentation-one-page.html), it reads "If enabled, option-click will move the cursor to where the mouse pointer is. If you install shell integration, this will be well-behaved at the shell prompt by not sending up and down arrow keys." But it seems like when I do Options-Click it just goes to last command (arrow up).

This answer here is no longer a solution - deprecated, and the source code is removed (Option + click in iTerm), and the thread should be removed/archived.

marked as duplicate by Graham Miln, nohillside Nov 13 '17 at 8:10

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