diff --git a/macos/Sources/Features/Terminal/BaseTerminalController.swift b/macos/Sources/Features/Terminal/BaseTerminalController.swift
index f5b500b70..cc631eb72 100644
--- a/macos/Sources/Features/Terminal/BaseTerminalController.swift
+++ b/macos/Sources/Features/Terminal/BaseTerminalController.swift
@@ -766,7 +766,8 @@ class BaseTerminalController: NSWindowController,
             ghostty,
             tree: newTree,
             position: notification.userInfo?[Notification.Name.ghosttySurfaceDragEndedNoTargetPointKey] as? NSPoint,
-            confirmUndo: false)
+            confirmUndo: false,
+            inheritBackgroundOpacity: isBackgroundOpaque)
     }
 
     // MARK: Local Events
@@ -990,11 +991,15 @@ class BaseTerminalController: NSWindowController,
         // Do nothing if in fullscreen (transparency doesn't apply in fullscreen)
         guard let window, !window.styleMask.contains(.fullScreen) else { return }
 
-        // Toggle between transparent and opaque
-        isBackgroundOpaque.toggle()
+        let newValue = !isBackgroundOpaque
+        let controllers = NSApplication.shared.windows.compactMap {
+            $0.windowController as? BaseTerminalController
+        }
 
-        // Update our appearance
-        syncAppearance()
+        for controller in controllers {
+            controller.isBackgroundOpaque = newValue
+            controller.syncAppearance()
+        }
     }
 
     /// Override this to resync any appearance related properties. This will be called automatically
diff --git a/macos/Sources/Features/Terminal/TerminalController.swift b/macos/Sources/Features/Terminal/TerminalController.swift
index 7e9b91b19..bcccef8f9 100644
--- a/macos/Sources/Features/Terminal/TerminalController.swift
+++ b/macos/Sources/Features/Terminal/TerminalController.swift
@@ -256,6 +256,9 @@ class TerminalController: BaseTerminalController, TabGroupCloseCoordinator.Contr
         // Get our parent. Our parent is the one explicitly given to us,
         // otherwise the focused terminal, otherwise an arbitrary one.
         let parent: NSWindow? = explicitParent ?? preferredParent?.window
+        if let parentController = parent?.windowController as? TerminalController {
+            c.isBackgroundOpaque = parentController.isBackgroundOpaque
+        }
 
         if let parent, parent.styleMask.contains(.fullScreen) {
             // If our previous window was fullscreen then we want our new window to
@@ -339,8 +342,12 @@ class TerminalController: BaseTerminalController, TabGroupCloseCoordinator.Contr
         tree: SplitTree<Ghostty.SurfaceView>,
         position: NSPoint? = nil,
         confirmUndo: Bool = true,
+        inheritBackgroundOpacity: Bool? = nil
     ) -> TerminalController {
         let c = TerminalController.init(ghostty, withSurfaceTree: tree)
+        if let inheritBackgroundOpacity {
+            c.isBackgroundOpaque = inheritBackgroundOpacity
+        }
 
         // Calculate the target frame based on the tree's view bounds
         let treeSize: CGSize? = tree.root?.viewBounds()
@@ -385,7 +392,11 @@ class TerminalController: BaseTerminalController, TabGroupCloseCoordinator.Contr
                     withTarget: ghostty,
                     expiresAfter: target.undoExpiration
                 ) { ghostty in
-                    _ = TerminalController.newWindow(ghostty, tree: tree)
+                    _ = TerminalController.newWindow(
+                        ghostty,
+                        tree: tree,
+                        inheritBackgroundOpacity: inheritBackgroundOpacity
+                    )
                 }
             }
         }
@@ -420,6 +431,7 @@ class TerminalController: BaseTerminalController, TabGroupCloseCoordinator.Contr
 
         // Create a new window and add it to the parent
         let controller = TerminalController.init(ghostty, withBaseConfig: baseConfig)
+        controller.isBackgroundOpaque = parentController.isBackgroundOpaque
         guard let window = controller.window else { return controller }
 
         // If the parent is miniaturized, then macOS exhibits really strange behaviors