This document describes an interactive cord with integrated light sources. An interactive cord includes a cable, a cover that covers the cable, and a plurality of light sources integrated into the cover. The cover includes capacitive touchpoints that enable reception of touch input that causes a change in capacitance to one or more conductive threads effective to trigger a function at a computing device. Different conductive threads can be used at different capacitive touchpoints to trigger different functions. The light sources are configured to indicate a position of a respective capacitive touchpoint on the cover.