diff --git a/src/web/public/terminal-ui.js b/src/web/public/terminal-ui.js
index ef062070c..e44967b7c 100644
--- a/src/web/public/terminal-ui.js
+++ b/src/web/public/terminal-ui.js
@@ -1168,7 +1168,7 @@ Object.assign(CodemanApp.prototype, {
           // Momentum phase — convert pixel velocity to lines
           const lines = Math.round(velocity / cellHeight());
           if (lines !== 0) {
-            if (this._shouldForwardWheelToApp({ shiftKey: false })) {
+            if (this._shouldForwardTouchToApp()) {
               // Flick momentum keeps feeding the CLI's transcript from the last
               // touch point; the 40ms coalescer batches the per-frame reports.
               this._forwardScrollToApp(touchLastX, touchLastY, lines);
@@ -1347,7 +1347,7 @@ Object.assign(CodemanApp.prototype, {
             const ch = cellHeight();
             const lines = Math.trunc(pixelAccum / ch);
             if (lines !== 0) {
-              if (this._shouldForwardWheelToApp({ shiftKey: false })) {
+              if (this._shouldForwardTouchToApp()) {
                 this._logScrollRouting('forward-sgr');
                 this._forwardScrollToApp(touchLastX, touchLastY, lines);
               } else if (!this._maybePageCliTranscript({ shiftKey: false, touchId: touchContactId }, lines)) {
@@ -5833,6 +5833,18 @@ Object.assign(CodemanApp.prototype, {
   // `target` ({ terminal, sessionId }) asks the question for a TerminalTile:
   // its own terminal's tracking mode and its own session, never the active one.
   // Either field left out means the primary pane's.
+  // xterm encodes native wheel events when mouse tracking is enabled, but
+  // our touch listeners consume finger drags themselves. Forward those
+  // explicitly: local scrollLines() cannot move an alternate-screen buffer.
+  _shouldForwardTouchToApp() {
+    if (this.loadAppSettingsFromStorage?.()?.terminalWheelLocalScrollback) return false;
+    const mode = this.terminal?.modes?.mouseTrackingMode;
+    // The existing synthetic sender uses SGR; tracking alone does not imply
+    // that encoding (legacy/X10 applications must not receive SGR bytes).
+    const sgr = this.terminal?._core?.coreMouseService?.activeEncoding === 'SGR';
+    return !!(mode && mode !== 'none' && mode !== 'x10' && sgr) || this._shouldForwardWheelToApp({ shiftKey: false });
+  },
+
   _shouldForwardWheelToApp(ev, target = {}) {
     if (ev.shiftKey) return false;
     // Opt-out (App Settings → Input → "Wheel scrolls local history"): pin the
diff --git a/test/terminal-scroll-routing.test.ts b/test/terminal-scroll-routing.test.ts
index 4c3bcad20..6293a21cf 100644
--- a/test/terminal-scroll-routing.test.ts
+++ b/test/terminal-scroll-routing.test.ts
@@ -877,3 +877,38 @@ describe('scroll routing diagnostic (issue #205 round 2)', () => {
     expect(logs[0]).toContain('cliVersion=unknown');
   });
 });
+
+describe('touch scrolling when xterm owns native mouse tracking', () => {
+  it.each(['vt200', 'drag', 'any'])('forwards touch for %s tracking even for a shell session', (mode) => {
+    const { app } = hollowApp({ mode: 'shell' });
+    app.terminal.modes.mouseTrackingMode = mode;
+    app.terminal._core = { coreMouseService: { activeEncoding: 'SGR' } };
+    app.terminal.buffer.active.type = 'alternate';
+    expect(app._shouldForwardWheelToApp({ shiftKey: false })).toBe(false);
+    expect(app._shouldForwardTouchToApp()).toBe(true);
+  });
+
+  it('does not send SGR to a legacy-protocol or X10 application', () => {
+    const { app } = hollowApp({ mode: 'shell' });
+    app.terminal.modes.mouseTrackingMode = 'vt200';
+    app.terminal._core = { coreMouseService: { activeEncoding: 'DEFAULT' } };
+    expect(app._shouldForwardTouchToApp()).toBe(false);
+    app.terminal._core.coreMouseService.activeEncoding = 'SGR';
+    app.terminal.modes.mouseTrackingMode = 'x10';
+    expect(app._shouldForwardTouchToApp()).toBe(false);
+  });
+
+  it('keeps the explicit local-history preference for touch', () => {
+    const { app } = hollowApp({ mode: 'shell' });
+    app.terminal.modes.mouseTrackingMode = 'any';
+    app.loadAppSettingsFromStorage = () => ({ terminalWheelLocalScrollback: true });
+    expect(app._shouldForwardTouchToApp()).toBe(false);
+  });
+
+  it('uses normal CLI routing when xterm mouse tracking is off', () => {
+    const { app } = hollowApp({ cliVersion: '2.1.187', cliMouseTracking: true });
+    expect(app._shouldForwardTouchToApp()).toBe(true);
+    app.sessions.get('sess-1').cliMouseTracking = false;
+    expect(app._shouldForwardTouchToApp()).toBe(false);
+  });
+});
diff --git a/test/terminal-touch-paging.browser.test.ts b/test/terminal-touch-paging.browser.test.ts
index 4dcaaba00..5fb41a7c2 100644
--- a/test/terminal-touch-paging.browser.test.ts
+++ b/test/terminal-touch-paging.browser.test.ts
@@ -144,4 +144,58 @@ describe('touch paging of a hollow Codex pane in a real browser', () => {
     expect(second.keys).toBe(UP + UP);
     await touch('touchend', x, y0 + Math.ceil(cell));
   }, 60000);
+  it.each([390, 820])('forwards drag and momentum with native mouse tracking at %ipx', async (width) => {
+    await page.setViewportSize({ width, height: 900 });
+    await page.evaluate(async (id) => {
+      const app = (window as any).app;
+      app.sessions.set(id, { id, name: id, mode: 'shell', status: 'idle' });
+      app.activeSessionId = id;
+      app.loadAppSettingsFromStorage = () => ({ terminalWheelLocalScrollback: false });
+      app._wheelSgrQueue = '';
+      const sent: string[] = [];
+      app._sendInputEphemeral = (_id: string, data: string) => sent.push(data);
+      (window as any).__mouseTouchProbe = { sent };
+      await new Promise<void>((resolve) => app.terminal.write('\x1b[?1049h\x1b[?1003h\x1b[?1006h', resolve));
+    }, PROBE_ID);
+    const point = await page.evaluate(() => {
+      const app = (window as any).app;
+      const r = document.getElementById('terminalContainer')!.getBoundingClientRect();
+      return {
+        x: r.left + 30,
+        y: r.top + 200,
+        mode: app.terminal.modes.mouseTrackingMode,
+        buffer: app.terminal.buffer.active.type,
+      };
+    });
+    expect(point.mode).toBe('any');
+    expect(point.buffer).toBe('alternate');
+    await touch('touchstart', point.x, point.y);
+    await touch('touchmove', point.x, point.y - 60);
+    const drag = await page.evaluate(() => {
+      (window as any).app._flushWheelSgrQueue();
+      return (window as any).__mouseTouchProbe.sent.join('');
+    });
+    expect(drag).toMatch(/\x1b\[<65;\d+;\d+M/);
+    await touch('touchend', point.x, point.y - 60);
+    await page.waitForTimeout(150);
+    const momentum = await page.evaluate(() => {
+      (window as any).app._flushWheelSgrQueue();
+      return (window as any).__mouseTouchProbe.sent.join('');
+    });
+    expect(momentum.length).toBeGreaterThan(drag.length);
+    // Stop momentum before changing the requested mouse encoding.
+    await touch('touchstart', point.x, point.y);
+    await touch('touchcancel', point.x, point.y);
+    await page.evaluate(async () => {
+      const app = (window as any).app;
+      app._wheelSgrQueue = '';
+      (window as any).__mouseTouchProbe.sent.length = 0;
+      await new Promise<void>((resolve) => app.terminal.write('\x1b[?1006l', resolve));
+    });
+    await touch('touchstart', point.x, point.y);
+    await touch('touchmove', point.x, point.y - 60);
+    await page.waitForTimeout(60);
+    expect(await page.evaluate(() => (window as any).__mouseTouchProbe.sent.join(''))).toBe('');
+    await touch('touchcancel', point.x, point.y);
+  });
 });