diff --git a/apps/server/src/terminal/Manager.test.ts b/apps/server/src/terminal/Manager.test.ts
index 1cf7e8dffec..4cd42edf988 100644
--- a/apps/server/src/terminal/Manager.test.ts
+++ b/apps/server/src/terminal/Manager.test.ts
@@ -1702,3 +1702,61 @@ it.layer(
     }).pipe(Effect.provide(TestClock.layer())),
   );
 });
+
+const MOUSE_ENABLED_HISTORY = "$ lazygit\r\n\u001b[?1002h\u001b[?1006h";
+
+it("clears mouse reporting from a replayed history once the shell is idle", () => {
+  const replayed = TerminalManager.replaySafeTerminalHistory(MOUSE_ENABLED_HISTORY, false);
+
+  expect(replayed.startsWith(MOUSE_ENABLED_HISTORY)).toBe(true);
+  expect(replayed.slice(MOUSE_ENABLED_HISTORY.length)).toBe(
+    "\u001b[?9l\u001b[?1000l\u001b[?1001l\u001b[?1002l\u001b[?1003l\u001b[?1006l\u001b[?1015l\u001b[?1016l",
+  );
+});
+
+it("leaves mouse reporting alone while a child process can still consume it", () => {
+  assert.equal(
+    TerminalManager.replaySafeTerminalHistory(MOUSE_ENABLED_HISTORY, true),
+    MOUSE_ENABLED_HISTORY,
+  );
+});
+
+it("detects mouse reporting enabled through a combined DECSET", () => {
+  const history = "$ lazygit\r\n\u001b[?1002;1006h";
+
+  expect(TerminalManager.replaySafeTerminalHistory(history, false)).not.toBe(history);
+});
+
+it("detects mouse reporting enabled through an 8-bit CSI introducer", () => {
+  const history = "$ lazygit\r\n\u009b?1003h";
+
+  expect(TerminalManager.replaySafeTerminalHistory(history, false)).not.toBe(history);
+});
+
+it("detects the X10 tracking mode", () => {
+  const history = "$ some-tui\r\n\u001b[?9h";
+
+  expect(TerminalManager.replaySafeTerminalHistory(history, false)).not.toBe(history);
+});
+
+it("ignores an encoding mode that cannot make the terminal report on its own", () => {
+  const history = "$ echo hi\r\n\u001b[?1006h";
+
+  expect(TerminalManager.replaySafeTerminalHistory(history, false)).toBe(history);
+});
+
+it("resets every mouse mode it recognises as an enable", () => {
+  const reset = TerminalManager.replaySafeTerminalHistory("\u001b[?1002h", false).slice(
+    "\u001b[?1002h".length,
+  );
+
+  for (const mode of [9, 1000, 1001, 1002, 1003, 1006, 1015, 1016]) {
+    expect(reset).toContain(`\u001b[?${mode}l`);
+  }
+});
+
+it("does not touch a history that never enabled mouse reporting", () => {
+  const history = "$ echo hello\r\nhello\r\n\u001b[?2004h";
+
+  assert.equal(TerminalManager.replaySafeTerminalHistory(history, false), history);
+});
diff --git a/apps/server/src/terminal/Manager.ts b/apps/server/src/terminal/Manager.ts
index caa5106bb9f..98e5a1faac3 100644
--- a/apps/server/src/terminal/Manager.ts
+++ b/apps/server/src/terminal/Manager.ts
@@ -323,6 +323,46 @@ function terminalWireLabel(session: TerminalSessionState): string {
   return truncateTerminalWireLabel(getTerminalLabel(session.terminalId));
 }
 
+/** Only a tracking mode makes a terminal emit reports; an encoding just shapes them. */
+const MOUSE_TRACKING_MODES: ReadonlyArray<number> = [9, 1000, 1001, 1002, 1003];
+const MOUSE_ENCODING_MODES: ReadonlyArray<number> = [1006, 1015, 1016];
+const MOUSE_REPORTING_RESET = [...MOUSE_TRACKING_MODES, ...MOUSE_ENCODING_MODES]
+  .map((mode) => `\u001b[?${mode}l`)
+  .join("");
+// A DECSET can carry several parameters at once (`ESC[?1002;1006h`) and may use the
+// 7-bit `ESC [` or the 8-bit `\u009b` introducer, so match the shape of the sequence
+// rather than a handful of single-parameter spellings.
+// eslint-disable-next-line no-control-regex -- matching DECSET requires its control introducer.
+const DECSET_PATTERN = /(?:\u001b\[|\u009b)\?([\d;]*)h/g;
+
+function enablesMouseReporting(history: string): boolean {
+  DECSET_PATTERN.lastIndex = 0;
+  for (
+    let match = DECSET_PATTERN.exec(history);
+    match !== null;
+    match = DECSET_PATTERN.exec(history)
+  ) {
+    const parameters = (match[1] ?? "").split(";");
+    if (parameters.some((parameter) => MOUSE_TRACKING_MODES.includes(Number(parameter)))) {
+      return true;
+    }
+  }
+  return false;
+}
+
+/**
+ * Mouse reporting is terminal state, not text. Replaying a history whose TUI was
+ * killed before it could restore the mode re-arms reporting on the fresh terminal,
+ * and every pointer move then echoes into the shell as a literal `ESC[<…M`. A live
+ * child process may still legitimately want the mode, so only clear it for an
+ * idle shell, where nothing is left to read the reports.
+ */
+export function replaySafeTerminalHistory(history: string, hasRunningSubprocess: boolean): string {
+  if (hasRunningSubprocess) return history;
+  if (!enablesMouseReporting(history)) return history;
+  return `${history}${MOUSE_REPORTING_RESET}`;
+}
+
 function snapshot(session: TerminalSessionState): TerminalSessionSnapshot {
   return {
     threadId: session.threadId,
@@ -331,7 +371,7 @@ function snapshot(session: TerminalSessionState): TerminalSessionSnapshot {
     worktreePath: session.worktreePath,
     status: session.status,
     pid: session.pid,
-    history: session.history,
+    history: replaySafeTerminalHistory(session.history, session.hasRunningSubprocess),
     exitCode: session.exitCode,
     exitSignal: session.exitSignal,
     label: terminalWireLabel(session),
@@ -2370,6 +2410,11 @@ export const makeWithOptions = Effect.fn("TerminalManager.makeWithOptions")(func
         return attachEvent ? listener(attachEvent) : Effect.void;
       });
 
+      // The cached subprocess flag is only refreshed by a poller, so gating the replay
+      // on it would use state up to one interval old. Refresh first: a TUI that just
+      // started must keep its mouse reporting, and one that just exited must not leave
+      // it armed.
+      yield* pollSubprocessActivity();
       const initialSnapshot = yield* openOrAttachForStream(input);
 
       yield* listener({