diff --git a/flutter/lib/models/terminal_model.dart b/flutter/lib/models/terminal_model.dart
index 6f179afe2..0472cb483 100644
--- a/flutter/lib/models/terminal_model.dart
+++ b/flutter/lib/models/terminal_model.dart
@@ -10,6 +10,7 @@ import 'package:xterm/xterm.dart';
 import 'input_modifier_utils.dart';
 import 'model.dart';
 import 'platform_model.dart';
+import 'terminal_mouse_handler.dart';
 
 class TerminalModel with ChangeNotifier {
   final String id; // peer id
@@ -129,6 +130,7 @@ class TerminalModel with ChangeNotifier {
 
   TerminalModel(this.parent, [this.terminalId = 0]) : id = parent.id {
     terminal = Terminal(maxLines: 10000);
+    terminal.mouseHandler = const WheelButtonFixMouseHandler();
     terminalController = TerminalController();
 
     // Setup terminal callbacks
diff --git a/flutter/lib/models/terminal_mouse_handler.dart b/flutter/lib/models/terminal_mouse_handler.dart
new file mode 100644
index 000000000..a6a617488
--- /dev/null
+++ b/flutter/lib/models/terminal_mouse_handler.dart
@@ -0,0 +1,42 @@
+import 'package:xterm/xterm.dart';
+
+/// xterm 4.0.0 encodes wheel buttons as 68..71; the extra bit reads as a Shift
+/// modifier, so strict full-screen apps ignore the report and never scroll.
+/// Upstream fix: TerminalStudio/xterm.dart#238.
+class WheelButtonFixMouseHandler implements TerminalMouseHandler {
+  const WheelButtonFixMouseHandler();
+
+  @override
+  String? call(TerminalMouseEvent event) {
+    if (!event.button.isWheel) {
+      return defaultMouseHandler(event);
+    }
+    // Same gate as UpDownMouseHandler: only the scroll modes report a wheel,
+    // and a wheel release is never reported, so the report is always a press.
+    if (!event.state.mouseMode.reportScroll ||
+        event.buttonState == TerminalMouseButtonState.up) {
+      return null;
+    }
+    return _reportWheel(event);
+  }
+
+  String _reportWheel(TerminalMouseEvent event) {
+    // Wheel buttons 4..7 go on the wire as 64..67, but `id` is 64 + 4..7.
+    final button = event.button.id - 4;
+    final x = event.position.x + 1;
+    final y = event.position.y + 1;
+    switch (event.state.mouseReportMode) {
+      case MouseReportMode.normal:
+      case MouseReportMode.utf:
+        final limit =
+            event.state.mouseReportMode == MouseReportMode.normal ? 223 : 2015;
+        final col = x > limit ? '\x00' : String.fromCharCode(32 + x);
+        final row = y > limit ? '\x00' : String.fromCharCode(32 + y);
+        return '\x1b[M${String.fromCharCode(32 + button)}$col$row';
+      case MouseReportMode.sgr:
+        return '\x1b[<$button;$x;${y}M';
+      case MouseReportMode.urxvt:
+        return '\x1b[${32 + button};$x;${y}M';
+    }
+  }
+}
diff --git a/flutter/test/terminal_model_lifecycle_test.dart b/flutter/test/terminal_model_lifecycle_test.dart
index d00646b2b..5581886b7 100644
--- a/flutter/test/terminal_model_lifecycle_test.dart
+++ b/flutter/test/terminal_model_lifecycle_test.dart
@@ -3,6 +3,7 @@ import 'dart:async';
 import 'package:flutter_hbb/models/model.dart';
 import 'package:flutter_hbb/models/terminal_model.dart';
 import 'package:flutter_test/flutter_test.dart';
+import 'package:xterm/xterm.dart';
 
 class _FakeFFI implements FFI {
   @override
@@ -48,4 +49,20 @@ void main() {
     expect(clearedCtrlLock, isFalse);
     expect(model.debugBufferedInputCount, 0);
   });
+
+  test('builds its terminal with the wheel button fix', () {
+    final model = TerminalModel(_FakeFFI());
+    addTearDown(model.dispose);
+
+    final captured = <String>[];
+    model.terminal.onOutput = captured.add;
+    model.terminal.write('\x1b[?1000h\x1b[?1006h');
+    model.terminal.mouseInput(
+      TerminalMouseButton.wheelUp,
+      TerminalMouseButtonState.down,
+      const CellOffset(10, 5),
+    );
+
+    expect(captured.single, '\x1b[<64;11;6M');
+  });
 }
diff --git a/flutter/test/terminal_mouse_handler_test.dart b/flutter/test/terminal_mouse_handler_test.dart
new file mode 100644
index 000000000..3fae7f71d
--- /dev/null
+++ b/flutter/test/terminal_mouse_handler_test.dart
@@ -0,0 +1,114 @@
+import 'package:flutter_hbb/models/terminal_mouse_handler.dart';
+import 'package:flutter_test/flutter_test.dart';
+import 'package:xterm/xterm.dart';
+
+void main() {
+  late Terminal terminal;
+  late List<String> output;
+
+  setUp(() {
+    output = <String>[];
+    terminal = Terminal(mouseHandler: const WheelButtonFixMouseHandler())
+      ..onOutput = output.add;
+  });
+
+  String? report(
+    TerminalMouseButton button, [
+    TerminalMouseButtonState state = TerminalMouseButtonState.down,
+    CellOffset position = const CellOffset(10, 5),
+  ]) {
+    output.clear();
+    terminal.mouseInput(button, state, position);
+    return output.isEmpty ? null : output.single;
+  }
+
+  test('reports SGR wheel buttons without the Shift modifier bit', () {
+    terminal.write('\x1b[?1000h\x1b[?1006h');
+
+    expect(report(TerminalMouseButton.wheelUp), '\x1b[<64;11;6M');
+    expect(report(TerminalMouseButton.wheelDown), '\x1b[<65;11;6M');
+    expect(report(TerminalMouseButton.wheelLeft), '\x1b[<66;11;6M');
+    expect(report(TerminalMouseButton.wheelRight), '\x1b[<67;11;6M');
+  });
+
+  test('reports normal-encoding wheel buttons in the 64..67 range', () {
+    terminal.write('\x1b[?1000h');
+
+    expect(
+      report(TerminalMouseButton.wheelUp),
+      '\x1b[M${String.fromCharCode(32 + 64)}'
+      '${String.fromCharCode(32 + 11)}${String.fromCharCode(32 + 6)}',
+    );
+    expect(
+      report(TerminalMouseButton.wheelDown),
+      '\x1b[M${String.fromCharCode(32 + 65)}'
+      '${String.fromCharCode(32 + 11)}${String.fromCharCode(32 + 6)}',
+    );
+  });
+
+  test('reports utf-encoding wheel buttons beyond the normal-mode range', () {
+    terminal.write('\x1b[?1000h\x1b[?1005h');
+
+    expect(
+      report(
+        TerminalMouseButton.wheelDown,
+        TerminalMouseButtonState.down,
+        const CellOffset(400, 300),
+      ),
+      '\x1b[M${String.fromCharCode(32 + 65)}'
+      '${String.fromCharCode(32 + 401)}${String.fromCharCode(32 + 301)}',
+    );
+  });
+
+  test('reports urxvt-encoding wheel buttons shifted by 32', () {
+    terminal.write('\x1b[?1000h\x1b[?1015h');
+
+    expect(report(TerminalMouseButton.wheelUp), '\x1b[96;11;6M');
+    expect(report(TerminalMouseButton.wheelDown), '\x1b[97;11;6M');
+  });
+
+  test('sends a null byte for coordinates past the encoding limit', () {
+    terminal.write('\x1b[?1000h');
+
+    expect(
+      report(
+        TerminalMouseButton.wheelUp,
+        TerminalMouseButtonState.down,
+        const CellOffset(300, 300),
+      ),
+      '\x1b[M${String.fromCharCode(32 + 64)}\x00\x00',
+    );
+  });
+
+  test('leaves non-wheel buttons to the upstream handler', () {
+    terminal.write('\x1b[?1000h\x1b[?1006h');
+
+    expect(report(TerminalMouseButton.left), '\x1b[<0;11;6M');
+    expect(report(TerminalMouseButton.middle), '\x1b[<1;11;6M');
+    expect(
+      report(TerminalMouseButton.right, TerminalMouseButtonState.up),
+      '\x1b[<2;11;6m',
+    );
+  });
+
+  test('stays silent when the peer has not enabled mouse reporting', () {
+    expect(report(TerminalMouseButton.wheelDown), isNull);
+    expect(report(TerminalMouseButton.left), isNull);
+  });
+
+  test('stays silent for the wheel in click-only mode', () {
+    terminal.write('\x1b[?9h\x1b[?1006h');
+
+    expect(report(TerminalMouseButton.wheelDown), isNull);
+    expect(report(TerminalMouseButton.left), '\x1b[<0;11;6M');
+  });
+
+  test('does not report wheel button releases', () {
+    terminal.write('\x1b[?1000h\x1b[?1006h');
+
+    expect(
+      report(TerminalMouseButton.wheelDown, TerminalMouseButtonState.up),
+      isNull,
+    );
+  });
+}