diff --git a/src/config/Config.zig b/src/config/Config.zig
index 025d09412..9881580b9 100644
--- a/src/config/Config.zig
+++ b/src/config/Config.zig
@@ -1674,16 +1674,22 @@ pub fn finalize(self: *Config) !void {
             // set to /bin/sh.
             if (self.command) |cmd|
                 log.info("shell src=config value={s}", .{cmd})
-            else {
-                if (!internal_os.isFlatpak()) {
-                    if (std.process.getEnvVarOwned(alloc, "SHELL")) |value| {
-                        log.info("default shell source=env value={s}", .{value});
-                        self.command = value;
+            else shell_env: {
+                // Flatpak always gets its shell from outside the sandbox
+                if (internal_os.isFlatpak()) break :shell_env;
 
-                        // If we don't need the working directory, then we can exit now.
-                        if (!wd_home) break :command;
-                    } else |_| {}
-                }
+                // If we were launched from the desktop, our SHELL env var
+                // will represent our SHELL at login time. We want to use the
+                // latest shell from /etc/passwd or directory services.
+                if (internal_os.launchedFromDesktop()) break :shell_env;
+
+                if (std.process.getEnvVarOwned(alloc, "SHELL")) |value| {
+                    log.info("default shell source=env value={s}", .{value});
+                    self.command = value;
+
+                    // If we don't need the working directory, then we can exit now.
+                    if (!wd_home) break :command;
+                } else |_| {}
             }
 
             switch (builtin.os.tag) {
diff --git a/src/os/desktop.zig b/src/os/desktop.zig
index ed4f977d9..6475c278e 100644
--- a/src/os/desktop.zig
+++ b/src/os/desktop.zig
@@ -19,7 +19,15 @@ pub fn launchedFromDesktop() bool {
     return switch (builtin.os.tag) {
         // macOS apps launched from finder or `open` always have the init
         // process as their parent.
-        .macos => c.getppid() == 1,
+        .macos => macos: {
+            // This special case is so that if we launch the app via the
+            // app bundle (i.e. via open) then we still treat it as if it
+            // was launched from the desktop.
+            if (build_config.artifact == .lib and
+                std.os.getenv("GHOSTTY_MAC_APP") != null) break :macos true;
+
+            break :macos c.getppid() == 1;
+        },
 
         // On Linux, GTK sets GIO_LAUNCHED_DESKTOP_FILE and
         // GIO_LAUNCHED_DESKTOP_FILE_PID. We only check the latter to see if