diff --git a/macos/Sources/Features/Terminal/TerminalView.swift b/macos/Sources/Features/Terminal/TerminalView.swift
index 1aab8f497..697009579 100644
--- a/macos/Sources/Features/Terminal/TerminalView.swift
+++ b/macos/Sources/Features/Terminal/TerminalView.swift
@@ -47,9 +47,8 @@ struct TerminalView<ViewModel: TerminalViewModel>: View {
     // An optional delegate to receive information about terminal changes.
     weak var delegate: (any TerminalViewDelegate)?
 
-    // The most recently focused surface, equal to focusedSurface when
-    // it is non-nil.
-    @State private var lastFocusedSurface: Weak<Ghostty.SurfaceView> = .init()
+    /// The most recently focused surface, equal to `focusedSurface` when it is non-nil.
+    @State private var lastFocusedSurface: Weak<Ghostty.SurfaceView>?
 
     // This seems like a crutch after switching from SwiftUI to AppKit lifecycle.
     @FocusState private var focused: Bool
@@ -84,6 +83,7 @@ struct TerminalView<ViewModel: TerminalViewModel>: View {
                         tree: viewModel.surfaceTree,
                         action: { delegate?.performSplitAction($0) })
                         .environmentObject(ghostty)
+                        .ghosttyLastFocusedSurface(lastFocusedSurface)
                         .focused($focused)
                         .onAppear { self.focused = true }
                         .onChange(of: focusedSurface) { newValue in
@@ -101,13 +101,13 @@ struct TerminalView<ViewModel: TerminalViewModel>: View {
                             guard let size = newValue else { return }
                             self.delegate?.cellSizeDidChange(to: size)
                         }
-                        .frame(idealWidth: lastFocusedSurface.value?.initialSize?.width,
-                               idealHeight: lastFocusedSurface.value?.initialSize?.height)
+                        .frame(idealWidth: lastFocusedSurface?.value?.initialSize?.width,
+                               idealHeight: lastFocusedSurface?.value?.initialSize?.height)
                 }
                 // Ignore safe area to extend up in to the titlebar region if we have the "hidden" titlebar style
                 .ignoresSafeArea(.container, edges: ghostty.config.macosTitlebarStyle == "hidden" ? .top : [])
 
-                if let surfaceView = lastFocusedSurface.value {
+                if let surfaceView = lastFocusedSurface?.value {
                     TerminalCommandPaletteView(
                         surfaceView: surfaceView,
                         isPresented: $viewModel.commandPaletteIsShowing,
diff --git a/macos/Sources/Ghostty/Surface View/SurfaceView.swift b/macos/Sources/Ghostty/Surface View/SurfaceView.swift
index fb5a1a864..47503dc0e 100644
--- a/macos/Sources/Ghostty/Surface View/SurfaceView.swift	
+++ b/macos/Sources/Ghostty/Surface View/SurfaceView.swift	
@@ -56,6 +56,11 @@ extension Ghostty {
         #endif
 
         @EnvironmentObject private var ghostty: Ghostty.App
+        @Environment(\.ghosttyLastFocusedSurface) private var lastFocusedSurface
+
+        private var isFocusedSurface: Bool {
+            surfaceFocus || lastFocusedSurface?.value === surfaceView
+        }
 
         var body: some View {
             let center = NotificationCenter.default
@@ -217,10 +222,9 @@ extension Ghostty {
                 }
 
                 // If we're part of a split view and don't have focus, we put a semi-transparent
-                // rectangle above our view to make it look unfocused. We use "surfaceFocus"
-                // because we want to keep our focused surface dark even if we don't have window
-                // focus.
-                if isSplit && !surfaceFocus {
+                // rectangle above our view to make it look unfocused. We include the last
+                // focused surface so this still works while SwiftUI focus is temporarily nil.
+                if isSplit && !isFocusedSurface {
                     let overlayOpacity = ghostty.config.unfocusedSplitOpacity
                     if overlayOpacity > 0 {
                         Rectangle()
@@ -1201,17 +1205,33 @@ private struct GhosttySurfaceViewKey: EnvironmentKey {
     static let defaultValue: Ghostty.SurfaceView? = nil
 }
 
+private struct GhosttyLastFocusedSurfaceKey: EnvironmentKey {
+    /// Optional read-only last-focused surface reference. If a surface view is currently focused this
+    /// is equal to the currently focused surface.
+    static let defaultValue: Weak<Ghostty.SurfaceView>? = nil
+}
+
 extension EnvironmentValues {
     var ghosttySurfaceView: Ghostty.SurfaceView? {
         get { self[GhosttySurfaceViewKey.self] }
         set { self[GhosttySurfaceViewKey.self] = newValue }
     }
+
+    var ghosttyLastFocusedSurface: Weak<Ghostty.SurfaceView>? {
+        get { self[GhosttyLastFocusedSurfaceKey.self] }
+        set { self[GhosttyLastFocusedSurfaceKey.self] = newValue }
+    }
 }
 
 extension View {
     func ghosttySurfaceView(_ surfaceView: Ghostty.SurfaceView?) -> some View {
         environment(\.ghosttySurfaceView, surfaceView)
     }
+
+    /// The most recently focused surface (can be currently focused if the surface is currently focused).
+    func ghosttyLastFocusedSurface(_ surfaceView: Weak<Ghostty.SurfaceView>?) -> some View {
+        environment(\.ghosttyLastFocusedSurface, surfaceView)
+    }
 }
 
 // MARK: Surface Focus Keys