diff --git a/macos/Sources/Features/Terminal/BaseTerminalController.swift b/macos/Sources/Features/Terminal/BaseTerminalController.swift
index 96c9188a7..432345627 100644
--- a/macos/Sources/Features/Terminal/BaseTerminalController.swift
+++ b/macos/Sources/Features/Terminal/BaseTerminalController.swift
@@ -235,17 +235,21 @@ class BaseTerminalController: NSWindowController,
         
         // Set the main window title
         window.title = to
-        
-        // Get the current working directory from the focused surface
-        if let pwd = focusedSurface?.pwd {
-            // Set the window's representedURL to the current working directory
-            window.representedURL = URL(fileURLWithPath: pwd)
+
+    }
+    
+    func pwdDidChange(to: URL?) {
+        guard let window else { return }
+
+        if ghostty.config.macosTitlebarProxyIcon == .visible {
+            // Use the 'to' URL directly
+            window.representedURL = to
         } else {
-            // If we don't have a pwd, set representedURL to nil
             window.representedURL = nil
         }
     }
 
+
     func cellSizeDidChange(to: NSSize) {
         guard ghostty.config.windowStepResize else { return }
         self.window?.contentResizeIncrements = to
diff --git a/macos/Sources/Features/Terminal/TerminalController.swift b/macos/Sources/Features/Terminal/TerminalController.swift
index d06cb0d3e..42617e047 100644
--- a/macos/Sources/Features/Terminal/TerminalController.swift
+++ b/macos/Sources/Features/Terminal/TerminalController.swift
@@ -310,6 +310,14 @@ class TerminalController: BaseTerminalController {
 
             // Disallow tabbing if the titlebar is hidden, since that will (should) also hide the tab bar.
             window.tabbingMode = .disallowed
+
+            // Nuke it from orbit -- hide the titlebar container entirely, just in case. There are
+            // some operations that appear to bring back the titlebar visibility so this ensures
+            // it is gone forever.
+            if let themeFrame = window.contentView?.superview,
+               let titleBarContainer = themeFrame.firstDescendant(withClassName: "NSTitlebarContainerView") {
+                titleBarContainer.isHidden = true
+            }
         }
 
         // In various situations, macOS automatically tabs new windows. Ghostty handles
diff --git a/macos/Sources/Features/Terminal/TerminalView.swift b/macos/Sources/Features/Terminal/TerminalView.swift
index ec7d7c229..768f57d30 100644
--- a/macos/Sources/Features/Terminal/TerminalView.swift
+++ b/macos/Sources/Features/Terminal/TerminalView.swift
@@ -10,6 +10,9 @@ protocol TerminalViewDelegate: AnyObject {
 
     /// The title of the terminal should change.
     func titleDidChange(to: String)
+    
+    /// The URL of the pwd should change.
+    func pwdDidChange(to: URL?)
 
     /// The cell size changed.
     func cellSizeDidChange(to: NSSize)
@@ -62,7 +65,16 @@ struct TerminalView<ViewModel: TerminalViewModel>: View {
 
         return title
     }
-
+    
+    // The proxy icon URL for our window
+    private var proxyIconURL: URL? {
+        guard let proxyURLString = focusedSurface?.pwd else {
+            return nil
+        }
+        // Use fileURLWithPath initializer for file paths
+        return URL(fileURLWithPath: proxyURLString)
+    }
+    
     var body: some View {
         switch ghostty.readiness {
         case .loading:
@@ -87,6 +99,9 @@ struct TerminalView<ViewModel: TerminalViewModel>: View {
                     .onChange(of: title) { newValue in
                         self.delegate?.titleDidChange(to: newValue)
                     }
+                    .onChange(of: proxyIconURL) { newValue in
+                        self.delegate?.pwdDidChange(to: newValue)
+                    }
                     .onChange(of: cellSize) { newValue in
                         guard let size = newValue else { return }
                         self.delegate?.cellSizeDidChange(to: size)
diff --git a/macos/Sources/Ghostty/Ghostty.Config.swift b/macos/Sources/Ghostty/Ghostty.Config.swift
index 29639c39e..6e961b31c 100644
--- a/macos/Sources/Ghostty/Ghostty.Config.swift
+++ b/macos/Sources/Ghostty/Ghostty.Config.swift
@@ -228,6 +228,17 @@ extension Ghostty {
             guard let ptr = v else { return defaultValue }
             return String(cString: ptr)
         }
+        
+        var macosTitlebarProxyIcon: MacOSTitlebarProxyIcon {
+            let defaultValue = MacOSTitlebarProxyIcon.visible
+            guard let config = self.config else { return defaultValue }
+            var v: UnsafePointer<Int8>? = nil
+            let key = "macos-titlebar-proxy-icon"
+            guard ghostty_config_get(config, &v, key, UInt(key.count)) else { return defaultValue }
+            guard let ptr = v else { return defaultValue }
+            let str = String(cString: ptr)
+            return MacOSTitlebarProxyIcon(rawValue: str) ?? defaultValue
+        }
 
         var macosWindowShadow: Bool {
             guard let config = self.config else { return false }
diff --git a/macos/Sources/Ghostty/Package.swift b/macos/Sources/Ghostty/Package.swift
index f6fab532e..25d012ec5 100644
--- a/macos/Sources/Ghostty/Package.swift
+++ b/macos/Sources/Ghostty/Package.swift
@@ -194,6 +194,13 @@ extension Ghostty {
             }
         }
     }
+    
+    /// Enum for the macos-titlebar-proxy-icon config option
+    enum MacOSTitlebarProxyIcon: String {
+        case visible
+        case hidden
+    }
+    
 }
 
 // MARK: Surface Notifications
diff --git a/src/config/Config.zig b/src/config/Config.zig
index 9097051ad..6dec34dfc 100644
--- a/src/config/Config.zig
+++ b/src/config/Config.zig
@@ -1444,6 +1444,22 @@ keybind: Keybinds = .{},
 /// Changing this option at runtime only applies to new windows.
 @"macos-titlebar-style": MacTitlebarStyle = .transparent,
 
+/// Whether the proxy icon in the macOS titlebar is visible. The proxy icon
+/// is the icon that represents the folder of the current working directory.
+/// You can see this very clearly in the macOS built-in Terminal.app
+/// titlebar.
+///
+/// The proxy icon is only visible with the native macOS titlebar style.
+///
+/// The default value is `visible`.
+///
+/// This setting can be changed at runtime and will affect all currently
+/// open windows but only after their working directory changes again.
+/// Therefore, to make this work after changing the setting, you must
+/// usually `cd` to a different directory, open a different file in an
+/// editor, etc.
+@"macos-titlebar-proxy-icon": MacTitlebarProxyIcon = .visible,
+
 /// If `true`, the *Option* key will be treated as *Alt*. This makes terminal
 /// sequences expecting *Alt* to work properly, but will break Unicode input
 /// sequences on macOS if you use them via the *Alt* key. You may set this to
@@ -4430,6 +4446,12 @@ pub const MacTitlebarStyle = enum {
     hidden,
 };
 
+/// See macos-titlebar-proxy-icon
+pub const MacTitlebarProxyIcon: type = enum {
+    visible,
+    hidden,
+};
+
 /// See gtk-single-instance
 pub const GtkSingleInstance = enum {
     desktop,