diff --git a/Sources/TerminalWindowPortal.swift b/Sources/TerminalWindowPortal.swift
index c0ba5066e47e..589c97bc38b6 100644
--- a/Sources/TerminalWindowPortal.swift
+++ b/Sources/TerminalWindowPortal.swift
@@ -217,7 +217,20 @@ final class WindowTerminalHostView: NSView {
             in: self,
             eventType: eventType
         ) else { return false }
-        return decision.result
+        guard decision.result else { return false }
+        return hostedTerminalHitView(at: point) == nil
+    }
+
+    private func hostedTerminalHitView(at point: NSPoint) -> NSView? {
+        for subview in subviews.reversed() {
+            guard let hostedView = subview as? GhosttySurfaceScrollView,
+                  !hostedView.isHidden,
+                  hostedView.alphaValue > 0,
+                  hostedView.frame.contains(point) else { continue }
+
+            return hostedView.hitTest(point) ?? hostedView
+        }
+        return nil
     }
 
     private func shouldPassThroughToChrome(at point: NSPoint, eventType: NSEvent.EventType?) -> Bool {
diff --git a/cmuxTests/TerminalAndGhosttyTests.swift b/cmuxTests/TerminalAndGhosttyTests.swift
index c143a41971ae..b37ee8e5a9ae 100644
--- a/cmuxTests/TerminalAndGhosttyTests.swift
+++ b/cmuxTests/TerminalAndGhosttyTests.swift
@@ -2257,6 +2257,54 @@ final class WindowTerminalHostViewTests: XCTestCase {
         )
     }
 
+    func testHostViewKeepsTerminalTopRowClickableWhenTabStripRegionOverlapsContent() {
+        let window = NSWindow(
+            contentRect: NSRect(x: 0, y: 0, width: 420, height: 260),
+            styleMask: [.titled, .closable],
+            backing: .buffered,
+            defer: false
+        )
+        defer { window.orderOut(nil) }
+        guard let contentView = window.contentView,
+              let container = contentView.superview else {
+            XCTFail("Expected window content container")
+            return
+        }
+
+        let hostFrame = container.convert(contentView.bounds, from: contentView)
+        let host = WindowTerminalHostView(frame: hostFrame)
+        host.autoresizingMask = [.width, .height]
+
+        let terminalFrame = host.bounds.insetBy(dx: 0, dy: 32)
+        let hostedView = makeHostedTerminalView(frame: terminalFrame)
+        host.addSubview(hostedView)
+        container.addSubview(host, positioned: .above, relativeTo: contentView)
+
+        let tabStripOverlap: CGFloat = 2
+        let terminalTopInContent = contentView.convert(hostedView.frame, from: host).maxY
+        let tabStrip = FakeTabBarBackgroundNSView(
+            frame: NSRect(
+                x: 0,
+                y: terminalTopInContent - tabStripOverlap,
+                width: contentView.bounds.width,
+                height: 44
+            )
+        )
+        tabStrip.autoresizingMask = [.width, .minYMargin]
+        contentView.addSubview(tabStrip)
+
+        let pointInHostedView = NSPoint(x: hostedView.bounds.midX, y: hostedView.bounds.maxY - 0.5)
+        let pointInWindow = hostedView.convert(pointInHostedView, to: nil)
+        let pointInHost = host.convert(pointInWindow, from: nil)
+        let event = makeMouseDownEvent(at: pointInWindow, window: window)
+
+        assertHitFallsInsideHostedTerminal(
+            host.performHitTest(at: pointInHost, currentEvent: event),
+            hostedView: hostedView,
+            message: "The absolute top row of terminal content should own mouse-down hit-testing even if chrome hit regions overlap it"
+        )
+    }
+
     func testHostViewPassesThroughWhenNoTerminalSubviewIsHit() {
         let host = WindowTerminalHostView(frame: NSRect(x: 0, y: 0, width: 200, height: 120))