diff --git a/src/nvim/edit.c b/src/nvim/edit.c
index 80acabc51d..0cc84966ec 100644
--- a/src/nvim/edit.c
+++ b/src/nvim/edit.c
@@ -393,7 +393,7 @@ static int insert_check(VimState *state)
     Insstart_orig = Insstart;
   }
 
-  if (curbuf->terminal) {
+  if (curbuf->terminal && !stop_insert_mode) {
     // Exit Insert mode and go to Terminal mode.
     stop_insert_mode = true;
     restart_edit = 'I';
diff --git a/test/functional/terminal/ex_terminal_spec.lua b/test/functional/terminal/ex_terminal_spec.lua
index 427146b2e5..93945b0365 100644
--- a/test/functional/terminal/ex_terminal_spec.lua
+++ b/test/functional/terminal/ex_terminal_spec.lua
@@ -139,6 +139,15 @@ describe(':terminal', function()
     eq({ blocking=false, mode='t' }, nvim('get_mode'))
     eq({'InsertLeave', 'TermEnter'}, eval('g:events'))
   end)
+
+  it('switching to terminal buffer immediately after :stopinsert #27031', function()
+    command('terminal')
+    command('vnew')
+    feed('i')
+    eq({ blocking = false, mode = 'i' }, nvim('get_mode'))
+    command('stopinsert | wincmd p')
+    eq({ blocking = false, mode = 'nt' }, nvim('get_mode'))
+  end)
 end)
 
 local function test_terminal_with_fake_shell(backslash)