diff --git a/src/bin/dosh-client.rs b/src/bin/dosh-client.rs
index 3554d3b..b2660d2 100644
--- a/src/bin/dosh-client.rs
+++ b/src/bin/dosh-client.rs
@@ -7434,7 +7434,10 @@ fn should_reconnect_before_input_for_local_sleep(
 }
 
 fn should_strip_unowned_terminal_reports(alternate_screen: bool, mouse_tracking: bool) -> bool {
-    !alternate_screen && !mouse_tracking
+    // Only a full-screen app that explicitly enabled mouse reporting owns these
+    // bytes. In every other state, local terminal mouse reports are stale UI
+    // noise and forwarding them can type SGR fragments at a normal shell prompt.
+    !(alternate_screen && mouse_tracking)
 }
 
 fn strip_unowned_terminal_reports(
@@ -10257,10 +10260,11 @@ mod tests {
     }
 
     #[test]
-    fn unowned_mouse_reports_are_stripped_only_outside_terminal_mouse_mode() {
+    fn unowned_mouse_reports_are_stripped_unless_tui_owns_mouse() {
         assert!(should_strip_unowned_terminal_reports(false, false));
-        assert!(!should_strip_unowned_terminal_reports(false, true));
-        assert!(!should_strip_unowned_terminal_reports(true, false));
+        assert!(should_strip_unowned_terminal_reports(false, true));
+        assert!(should_strip_unowned_terminal_reports(true, false));
+        assert!(!should_strip_unowned_terminal_reports(true, true));
     }
 
     #[test]
@@ -11549,19 +11553,24 @@ mod tests {
     }
 
     #[test]
-    fn unowned_terminal_mouse_reports_strip_only_without_mouse_owner() {
+    fn unowned_terminal_mouse_reports_strip_unless_tui_owns_mouse() {
         let input = b"\x1b[<35;10;1Mcmd\r".to_vec();
 
         let (stripped, changed) = strip_unowned_terminal_reports(input.clone(), false, false);
         assert!(changed);
         assert_eq!(stripped, b"cmd\r");
 
-        let (preserved, changed) = strip_unowned_terminal_reports(input.clone(), false, true);
-        assert!(!changed);
-        assert_eq!(preserved, input);
+        let (stripped, changed) = strip_unowned_terminal_reports(input.clone(), false, true);
+        assert!(changed);
+        assert_eq!(stripped, b"cmd\r");
+
+        let (stripped, changed) =
+            strip_unowned_terminal_reports(b"\x1b[<35;10;1M".to_vec(), true, false);
+        assert!(changed);
+        assert!(stripped.is_empty());
 
         let (preserved, changed) =
-            strip_unowned_terminal_reports(b"\x1b[<35;10;1M".to_vec(), true, false);
+            strip_unowned_terminal_reports(b"\x1b[<35;10;1M".to_vec(), true, true);
         assert!(!changed);
         assert_eq!(preserved, b"\x1b[<35;10;1M");
     }