4 files changed, 67 insertions, 2 deletions
diff --git a/src/app/input/mod.rs b/src/app/input/mod.rs
index a2e6597b..3d20adcd 100644
--- a/src/app/input/mod.rs
+++ b/src/app/input/mod.rs
@@ -464,7 +464,9 @@ impl App {
         let Some(bytes) = bytes else {
             return;
         };
-        rt.scroll_reset();
+        if !matches!(mouse.kind, MouseEventKind::Moved) {
+            rt.scroll_reset();
+        }
         if let Err(err) = rt.try_send_bytes(Bytes::from(bytes)) {
             warn!(err = %err, kind = ?mouse.kind, "failed to forward popup mouse event");
         }
diff --git a/src/app/mod.rs b/src/app/mod.rs
index c2d479b3..e9aa24b6 100644
--- a/src/app/mod.rs
+++ b/src/app/mod.rs
@@ -5762,6 +5762,45 @@ last_pane = "prefix+tab"
     }
 
     #[tokio::test]
+    async fn popup_mouse_motion_preserves_scrollback() {
+        let mut app = test_app();
+        app.state.mode = Mode::Terminal;
+        app.state.view.terminal_area = ratatui::layout::Rect::new(0, 0, 80, 24);
+        let (popup_runtime, mut popup_rx) = TerminalRuntime::test_with_channel_and_scrollback_bytes(
+            40,
+            2,
+            1024,
+            b"one\r\ntwo\r\nthree\r\n\x1b[?1003h\x1b[?1006h",
+            4,
+        );
+        popup_runtime.scroll_up(1);
+        assert!(popup_runtime
+            .scroll_metrics()
+            .is_some_and(|metrics| metrics.offset_from_bottom > 0));
+        app.install_test_popup_runtime(popup_runtime);
+        let (_, inner) =
+            crate::ui::popup_pane_rects(&app.state, app.state.view.terminal_area).unwrap();
+
+        app.route_client_events(
+            vec![crate::raw_input::RawInputEvent::Mouse(
+                crossterm::event::MouseEvent {
+                    kind: crossterm::event::MouseEventKind::Moved,
+                    column: inner.x + 1,
+                    row: inner.y,
+                    modifiers: crossterm::event::KeyModifiers::NONE,
+                },
+            )],
+            true,
+        );
+
+        assert!(popup_rx.try_recv().is_ok());
+        assert!(app
+            .popup_runtime()
+            .and_then(TerminalRuntime::scroll_metrics)
+            .is_some_and(|metrics| metrics.offset_from_bottom > 0));
+    }
+
+    #[tokio::test]
     async fn route_client_events_routes_popup_mouse_when_global_capture_is_disabled() {
         let mut app = test_app();
         let mut workspace = Workspace::test_new("tiled");
diff --git a/src/app/runtime.rs b/src/app/runtime.rs
index 180c3cef..bd7830b9 100644
--- a/src/app/runtime.rs
+++ b/src/app/runtime.rs
@@ -167,13 +167,15 @@ impl App {
                 true
             }
             crate::raw_input::RawInputEvent::Mouse(mouse) => {
+                let changes_view = !matches!(mouse.kind, crossterm::event::MouseEventKind::Moved)
+                    || self.state.mode.mouse_motion_changes_view();
                 if self.state.popup_pane.is_some() || self.state.mouse_capture {
                     self.handle_mouse(mouse);
                 } else {
                     self.state
                         .handle_pane_mouse_only(&self.terminal_runtimes, mouse);
                 }
-                true
+                changes_view
             }
             crate::raw_input::RawInputEvent::OuterFocusGained => {
                 self.send_outer_focus_event(crate::ghostty::FocusEvent::Gained);
@@ -809,6 +811,24 @@ mod tests {
     }
 
     #[tokio::test]
+    async fn passive_mouse_motion_does_not_request_monolithic_render() {
+        let (mut app, _) = test_app_with_pane();
+        app.state.mode = crate::app::Mode::Terminal;
+        let motion = || {
+            crate::raw_input::RawInputEvent::Mouse(crossterm::event::MouseEvent {
+                kind: crossterm::event::MouseEventKind::Moved,
+                column: 10,
+                row: 5,
+                modifiers: crossterm::event::KeyModifiers::empty(),
+            })
+        };
+
+        assert!(!app.handle_raw_input_event(motion()).await);
+        app.state.mode = crate::app::Mode::GlobalMenu;
+        assert!(app.handle_raw_input_event(motion()).await);
+    }
+
+    #[tokio::test]
     async fn raw_input_batch_does_not_start_pending_agent_resume_before_render() {
         let (mut app, pane_id) = test_app_with_pane();
         app.state.ensure_test_terminals();
diff --git a/src/app/state.rs b/src/app/state.rs
index a3d15a8b..6069b8a6 100644
--- a/src/app/state.rs
+++ b/src/app/state.rs
@@ -814,6 +814,10 @@ pub enum Mode {
 }
 
 impl Mode {
+    pub(crate) fn mouse_motion_changes_view(self) -> bool {
+        matches!(self, Self::GlobalMenu | Self::ContextMenu | Self::Navigator)
+    }
+
     /// Whether keys in this mode are commands/navigation (an ASCII input source is wanted) rather
     /// than free text. This is an explicit **allowlist** of the prefix command/navigation realm:
     /// any mode NOT listed defaults to leaving the user's IME alone (the safe default), so adding a