diff --git a/app/src/ai/blocklist/block.rs b/app/src/ai/blocklist/block.rs
index c36e96d351a..b26cd1874f4 100644
--- a/app/src/ai/blocklist/block.rs
+++ b/app/src/ai/blocklist/block.rs
@@ -6619,9 +6619,9 @@ impl TypedActionView for AIBlock {
                 // Clear all other selections within the `AIBlock`'s view sub-hierarchy to ensure
                 // only one component has a selection at a time.
                 self.clear_other_selections(None, ctx.window_id(), ctx);
-                // If we have a selection, we should use the default cursor, even if it's over a link.
-                ctx.reset_cursor();
                 if has_selection {
+                    // An empty selection can come from clicking another input; preserve its cursor.
+                    ctx.reset_cursor();
                     self.dismiss_ai_tooltips(ctx);
                 }
                 // Notify the terminal view so it can keep the model's record of which rich
diff --git a/app/src/terminal/view_tests.rs b/app/src/terminal/view_tests.rs
index ecec085a069..5ce87644435 100644
--- a/app/src/terminal/view_tests.rs
+++ b/app/src/terminal/view_tests.rs
@@ -10255,6 +10255,23 @@ fn copy_selected_text_from_ai_block() {
                 .expect("an AI block should have been inserted")
         });
 
+        terminal.update(&mut app, |view, ctx| {
+            view.input.update(ctx, |_, ctx| {
+                ctx.set_cursor_shape(Cursor::IBeam);
+            });
+        });
+        ai_block.update(&mut app, |block, ctx| {
+            block.set_block_level_selected_text_for_test(None);
+            block.handle_action(&AIBlockAction::SelectText, ctx);
+        });
+        app.read(|ctx| {
+            assert_eq!(
+                ctx.get_cursor_shape(),
+                Cursor::IBeam,
+                "an empty AI block selection must not override the input's hover cursor"
+            );
+        });
+
         // Simulate a block-level text selection within the AI block and notify the
         // terminal view (mirrors the `SelectableArea` selection callback plus the
         // `AIBlockAction::SelectText` dispatch that happens on a real drag).
@@ -10262,6 +10279,13 @@ fn copy_selected_text_from_ai_block() {
             block.set_block_level_selected_text_for_test(Some("quick brown".to_owned()));
             block.handle_action(&AIBlockAction::SelectText, ctx);
         });
+        app.read(|ctx| {
+            assert_eq!(
+                ctx.get_cursor_shape(),
+                Cursor::Arrow,
+                "a non-empty AI block selection must still reset the cursor"
+            );
+        });
 
         // The model must now record that the AI block has an active text
         // selection, which is what lets the copy/insert paths (via
@@ -10284,10 +10308,22 @@ fn copy_selected_text_from_ai_block() {
 
         // Clearing the AI block's selection must clear the tracked model selection
         // so stale text isn't returned by later copy/insert operations.
+        terminal.update(&mut app, |view, ctx| {
+            view.input.update(ctx, |_, ctx| {
+                ctx.set_cursor_shape(Cursor::IBeam);
+            });
+        });
         ai_block.update(&mut app, |block, ctx| {
             block.set_block_level_selected_text_for_test(None);
             block.handle_action(&AIBlockAction::SelectText, ctx);
         });
+        app.read(|ctx| {
+            assert_eq!(
+                ctx.get_cursor_shape(),
+                Cursor::IBeam,
+                "clearing an AI block selection must preserve the input's hover cursor"
+            );
+        });
         terminal.read(&app, |view, ctx| {
             let semantic_selection = SemanticSelection::as_ref(ctx);
             let model = view.model.lock();
diff --git a/crates/warpui_core/src/core/app.rs b/crates/warpui_core/src/core/app.rs
index 56e9b338779..1973a143a60 100644
--- a/crates/warpui_core/src/core/app.rs
+++ b/crates/warpui_core/src/core/app.rs
@@ -2354,7 +2354,7 @@ impl AppContext {
         self.platform_delegate.set_cursor_shape(cursor)
     }
 
-    #[cfg(test)]
+    #[cfg(any(test, feature = "test-util"))]
     pub fn get_cursor_shape(&self) -> Cursor {
         self.platform_delegate.get_cursor_shape()
     }