diff --git a/packages/native/src/embedded-terminal/ghostty.zig b/packages/native/src/embedded-terminal/ghostty.zig
index f6700c13..84e03ab4 100644
--- a/packages/native/src/embedded-terminal/ghostty.zig
+++ b/packages/native/src/embedded-terminal/ghostty.zig
@@ -50,6 +50,7 @@ pub const Mouse = struct {
     }
 };
 
+pub const KeyEncodeOptions = vt.input.KeyEncodeOptions;
 pub const MouseEncodeOptions = vt.input.MouseEncodeOptions;
 pub const encodeKey = vt.input.encodeKey;
 pub const encodeMouse = vt.input.encodeMouse;
diff --git a/packages/native/src/embedded-terminal/main.zig b/packages/native/src/embedded-terminal/main.zig
index 8eb9e8e5..5c3f1e52 100644
--- a/packages/native/src/embedded-terminal/main.zig
+++ b/packages/native/src/embedded-terminal/main.zig
@@ -212,7 +212,10 @@ pub const EmbeddedTerminal = struct {
     pub fn encodeKey(self: *EmbeddedTerminal, key: ghostty.Key) Error![]u8 {
         var output: std.Io.Writer.Allocating = .init(self.allocator);
         errdefer output.deinit();
-        ghostty.encodeKey(&output.writer, key.event(), .fromTerminal(&self.terminal)) catch return error.OutOfMemory;
+        var options: ghostty.KeyEncodeOptions = .fromTerminal(&self.terminal);
+        // The host terminal has already applied its Option setting, so an Alt bit here means Alt.
+        options.macos_option_as_alt = .true;
+        ghostty.encodeKey(&output.writer, key.event(), options) catch return error.OutOfMemory;
         return output.toOwnedSlice();
     }