diff --git a/src/terminal/Terminal.zig b/src/terminal/Terminal.zig
index 8de914a3e..a2cf510b1 100644
--- a/src/terminal/Terminal.zig
+++ b/src/terminal/Terminal.zig
@@ -193,6 +193,10 @@ pub const Options = struct {
     cols: size.CellCountInt,
     rows: size.CellCountInt,
     max_scrollback: usize = 10_000,
+
+    /// The default mode state. When the terminal gets a reset, it
+    /// will revert back to this state.
+    default_modes: modes.ModePacked = .{},
 };
 
 /// Initialize a new terminal.
@@ -216,6 +220,10 @@ pub fn init(
             .right = cols - 1,
         },
         .pwd = std.ArrayList(u8).init(alloc),
+        .modes = .{
+            .values = opts.default_modes,
+            .default = opts.default_modes,
+        },
     };
 }
 
@@ -2680,7 +2688,7 @@ fn resetCommonState(self: *Terminal) void {
 
     self.screen.endHyperlink();
     self.screen.charset = .{};
-    self.modes = .{};
+    self.modes.reset();
     self.flags = .{};
     self.tabstops.reset(TABSTOP_INTERVAL);
     self.screen.kitty_keyboard = .{};
@@ -10555,6 +10563,18 @@ test "Terminal: fullReset clears alt screen kitty keyboard state" {
     try testing.expectEqual(0, t.secondary_screen.kitty_keyboard.current().int());
 }
 
+test "Terminal: fullReset default modes" {
+    var t = try init(testing.allocator, .{
+        .cols = 10,
+        .rows = 10,
+        .default_modes = .{ .grapheme_cluster = true },
+    });
+    defer t.deinit(testing.allocator);
+    try testing.expect(t.modes.get(.grapheme_cluster));
+    t.fullReset();
+    try testing.expect(t.modes.get(.grapheme_cluster));
+}
+
 // https://github.com/mitchellh/ghostty/issues/272
 // This is also tested in depth in screen resize tests but I want to keep
 // this test around to ensure we don't regress at multiple layers.
diff --git a/src/terminal/main.zig b/src/terminal/main.zig
index d295ea1ba..3fc7d2600 100644
--- a/src/terminal/main.zig
+++ b/src/terminal/main.zig
@@ -47,6 +47,7 @@ pub const CursorStyle = Screen.CursorStyle;
 pub const CursorStyleReq = ansi.CursorStyle;
 pub const DeviceAttributeReq = ansi.DeviceAttributeReq;
 pub const Mode = modes.Mode;
+pub const ModePacked = modes.ModePacked;
 pub const ModifyKeyFormat = ansi.ModifyKeyFormat;
 pub const ProtectedMode = ansi.ProtectedMode;
 pub const StatusLineType = ansi.StatusLineType;
diff --git a/src/terminal/modes.zig b/src/terminal/modes.zig
index c4dbb1cd6..89d352e4a 100644
--- a/src/terminal/modes.zig
+++ b/src/terminal/modes.zig
@@ -21,6 +21,17 @@ pub const ModeState = struct {
     /// a real-world issue but we need to be aware of a DoS vector.
     saved: ModePacked = .{},
 
+    /// The default values for the modes. This is used to reset
+    /// the modes to their default values during reset.
+    default: ModePacked = .{},
+
+    /// Reset the modes to their default values. This also clears the
+    /// saved state.
+    pub fn reset(self: *ModeState) void {
+        self.values = self.default;
+        self.saved = .{};
+    }
+
     /// Set a mode to a value.
     pub fn set(self: *ModeState, mode: Mode, value: bool) void {
         switch (mode) {
diff --git a/src/termio/Termio.zig b/src/termio/Termio.zig
index e7b391419..1ebe84541 100644
--- a/src/termio/Termio.zig
+++ b/src/termio/Termio.zig
@@ -127,6 +127,23 @@ pub const DerivedConfig = struct {
 /// This will also start the child process if the termio is configured
 /// to run a child process.
 pub fn init(self: *Termio, alloc: Allocator, opts: termio.Options) !void {
+    // The default terminal modes based on our config.
+    const default_modes: terminal.ModePacked = modes: {
+        var modes: terminal.ModePacked = .{};
+
+        // Setup our initial grapheme cluster support if enabled. We use a
+        // switch to ensure we get a compiler error if more cases are added.
+        switch (opts.full_config.@"grapheme-width-method") {
+            .unicode => modes.grapheme_cluster = true,
+            .legacy => {},
+        }
+
+        // Set default cursor blink settings
+        modes.cursor_blinking = opts.config.cursor_blink orelse true;
+
+        break :modes modes;
+    };
+
     // Create our terminal
     var term = try terminal.Terminal.init(alloc, opts: {
         const grid_size = opts.size.grid();
@@ -134,19 +151,13 @@ pub fn init(self: *Termio, alloc: Allocator, opts: termio.Options) !void {
             .cols = grid_size.columns,
             .rows = grid_size.rows,
             .max_scrollback = opts.full_config.@"scrollback-limit",
+            .default_modes = default_modes,
         };
     });
     errdefer term.deinit(alloc);
     term.default_palette = opts.config.palette;
     term.color_palette.colors = opts.config.palette;
 
-    // Setup our initial grapheme cluster support if enabled. We use a
-    // switch to ensure we get a compiler error if more cases are added.
-    switch (opts.full_config.@"grapheme-width-method") {
-        .unicode => term.modes.set(.grapheme_cluster, true),
-        .legacy => {},
-    }
-
     // Set the image size limits
     try term.screen.kitty_images.setLimit(
         alloc,
@@ -159,12 +170,6 @@ pub fn init(self: *Termio, alloc: Allocator, opts: termio.Options) !void {
         opts.config.image_storage_limit,
     );
 
-    // Set default cursor blink settings
-    term.modes.set(
-        .cursor_blinking,
-        opts.config.cursor_blink orelse true,
-    );
-
     // Set our default cursor style
     term.screen.cursor.cursor_style = opts.config.cursor_style;