diff --git a/macos/Sources/Features/Terminal/Terminal.xib b/macos/Sources/Features/Terminal/Terminal.xib
index b9e9a12b6..a086ffe89 100644
--- a/macos/Sources/Features/Terminal/Terminal.xib
+++ b/macos/Sources/Features/Terminal/Terminal.xib
@@ -13,7 +13,7 @@
         </customObject>
         <customObject id="-1" userLabel="First Responder" customClass="FirstResponder"/>
         <customObject id="-3" userLabel="Application" customClass="NSObject"/>
-        <window title="👻 Ghostty" allowsToolTipsWhenApplicationIsInactive="NO" autorecalculatesKeyViewLoop="NO" releasedWhenClosed="NO" animationBehavior="default" id="QvC-M9-y7g" customClass="TerminalWindow" customModule="Ghostty" customModuleProvider="target">
+        <window title="👻 Ghostty" allowsToolTipsWhenApplicationIsInactive="NO" autorecalculatesKeyViewLoop="NO" releasedWhenClosed="NO" visibleAtLaunch="NO" animationBehavior="default" id="QvC-M9-y7g" customClass="TerminalWindow" customModule="Ghostty" customModuleProvider="target">
             <windowStyleMask key="styleMask" titled="YES" closable="YES" miniaturizable="YES" resizable="YES"/>
             <windowPositionMask key="initialPositionMask" leftStrut="YES" rightStrut="YES" topStrut="YES" bottomStrut="YES"/>
             <rect key="contentRect" x="0.0" y="0.0" width="800" height="600"/>
diff --git a/macos/Sources/Features/Terminal/TerminalManager.swift b/macos/Sources/Features/Terminal/TerminalManager.swift
index 6fce98e41..feefa9da9 100644
--- a/macos/Sources/Features/Terminal/TerminalManager.swift
+++ b/macos/Sources/Features/Terminal/TerminalManager.swift
@@ -63,16 +63,30 @@ class TerminalManager {
     /// Create a new terminal window.
     func newWindow(withBaseConfig base: Ghostty.SurfaceConfiguration? = nil) {
         let c = createWindow(withBaseConfig: base)
-        if let window = c.window {
-            Self.lastCascadePoint = window.cascadeTopLeft(from: Self.lastCascadePoint)
+        let window = c.window!
+        
+        // We want to go fullscreen if we're configured for new windows to go fullscreen
+        var toggleFullScreen = ghostty.windowFullscreen
+        
+        // If the previous focused window prior to creating this window is fullscreen,
+        // then this window also becomes fullscreen.
+        if let parent = focusedSurface?.window, parent.styleMask.contains(.fullScreen) {
+            toggleFullScreen = true
         }
         
-        if (ghostty.windowFullscreen) {
-            // NOTE: this doesn't properly handle non-native fullscreen yet
-            c.window?.toggleFullScreen(nil)
+        if (toggleFullScreen && !window.styleMask.contains(.fullScreen)) {
+            window.toggleFullScreen(nil)
         }
         
         c.showWindow(self)
+        
+        // Only cascade if we aren't fullscreen. This has to be dispatched async
+        // because it takes one event loop tick for showWindow to work.
+        if (!window.styleMask.contains(.fullScreen)) {
+            DispatchQueue.main.async {
+                Self.lastCascadePoint = window.cascadeTopLeft(from: Self.lastCascadePoint)
+            }
+        }
     }
     
     /// Creates a new tab in the current main window. If there are no windows, a window