diff --git a/src/Surface.zig b/src/Surface.zig
index a25b2fe74..0a7be6aa2 100644
--- a/src/Surface.zig
+++ b/src/Surface.zig
@@ -1322,6 +1322,7 @@ pub fn keyCallback(
             .alt_esc_prefix = t.modes.get(.alt_esc_prefix),
             .cursor_key_application = t.modes.get(.cursor_keys),
             .keypad_key_application = t.modes.get(.keypad_keys),
+            .ignore_keypad_with_numlock = t.modes.get(.ignore_keypad_with_numlock),
             .modify_other_keys_state_2 = t.flags.modify_other_keys_2,
             .kitty_flags = t.screen.kitty_keyboard.current(),
         };
diff --git a/src/input/KeyEncoder.zig b/src/input/KeyEncoder.zig
index c3f05d6d4..473ad12d0 100644
--- a/src/input/KeyEncoder.zig
+++ b/src/input/KeyEncoder.zig
@@ -26,6 +26,7 @@ macos_option_as_alt: config.OptionAsAlt = .false,
 alt_esc_prefix: bool = false,
 cursor_key_application: bool = false,
 keypad_key_application: bool = false,
+ignore_keypad_with_numlock: bool = false,
 modify_other_keys_state_2: bool = false,
 kitty_flags: KittyFlags = .{},
 
@@ -245,6 +246,7 @@ fn legacy(
         all_mods,
         self.cursor_key_application,
         self.keypad_key_application,
+        self.ignore_keypad_with_numlock,
         self.modify_other_keys_state_2,
     )) |sequence| pc_style: {
         // If we're pressing enter and have UTF-8 text, we probably are
@@ -416,7 +418,8 @@ fn pcStyleFunctionKey(
     keyval: key.Key,
     mods: key.Mods,
     cursor_key_application: bool,
-    keypad_key_application: bool,
+    keypad_key_application_req: bool,
+    ignore_keypad_with_numlock: bool,
     modify_other_keys: bool, // True if state 2
 ) ?[]const u8 {
     // We only want binding-sensitive mods because lock keys
@@ -424,6 +427,24 @@ fn pcStyleFunctionKey(
     // pc-style function keys.
     const mods_int = mods.binding().int();
 
+    // Keypad application keymode isn't super straightforward.
+    // On xterm, in VT220 mode, numlock alone is enough to trigger
+    // application mode. But in more modern modes, numlock is
+    // ignored by default via mode 1035 (default true). If mode
+    // 1035 is on, we always are in numerical keypad mode. If
+    // mode 1035 is off, we are in application mode if the
+    // proper numlock state is pressed. The numlock state is implicitly
+    // determined based on the keycode sent (i.e. 1 with numlock
+    // on will be kp_end).
+    const keypad_key_application = keypad: {
+        // If we're ignoring keypad then this is always false.
+        // In other words, we're always in numerical keypad mode.
+        if (ignore_keypad_with_numlock) break :keypad false;
+
+        // If we're not ignoring then we enable the desired state.
+        break :keypad keypad_key_application_req;
+    };
+
     for (function_keys.keys.get(keyval)) |entry| {
         switch (entry.cursor) {
             .any => {},
@@ -1677,6 +1698,70 @@ test "legacy: keypad enter" {
     try testing.expectEqualStrings("\r", actual);
 }
 
+test "legacy: keypad 1" {
+    var buf: [128]u8 = undefined;
+    var enc: KeyEncoder = .{
+        .event = .{
+            .key = .kp_1,
+            .mods = .{},
+            .consumed_mods = .{},
+            .utf8 = "1",
+        },
+    };
+
+    const actual = try enc.legacy(&buf);
+    try testing.expectEqualStrings("1", actual);
+}
+
+test "legacy: keypad 1 with application keypad" {
+    var buf: [128]u8 = undefined;
+    var enc: KeyEncoder = .{
+        .event = .{
+            .key = .kp_1,
+            .mods = .{},
+            .consumed_mods = .{},
+            .utf8 = "1",
+        },
+        .keypad_key_application = true,
+    };
+
+    const actual = try enc.legacy(&buf);
+    try testing.expectEqualStrings("\x1bOq", actual);
+}
+
+test "legacy: keypad 1 with application keypad and numlock" {
+    var buf: [128]u8 = undefined;
+    var enc: KeyEncoder = .{
+        .event = .{
+            .key = .kp_1,
+            .mods = .{ .num_lock = true },
+            .consumed_mods = .{},
+            .utf8 = "1",
+        },
+        .keypad_key_application = true,
+    };
+
+    const actual = try enc.legacy(&buf);
+    try testing.expectEqualStrings("\x1bOq", actual);
+}
+
+test "legacy: keypad 1 with application keypad and numlock ignore" {
+    var buf: [128]u8 = undefined;
+    var enc: KeyEncoder = .{
+        .event = .{
+            .key = .kp_1,
+            .mods = .{ .num_lock = false },
+            .consumed_mods = .{},
+            .utf8 = "1",
+        },
+        .keypad_key_application = true,
+        .ignore_keypad_with_numlock = true,
+    };
+
+    const actual = try enc.legacy(&buf);
+    try testing.expectEqualStrings("1", actual);
+}
+
 test "legacy: f1" {
     var buf: [128]u8 = undefined;
     var enc: KeyEncoder = .{
diff --git a/src/terminal/modes.zig b/src/terminal/modes.zig
index 0f010d212..dab87c718 100644
--- a/src/terminal/modes.zig
+++ b/src/terminal/modes.zig
@@ -206,6 +206,7 @@ const entries: []const ModeEntry = &.{
     .{ .name = "mouse_alternate_scroll", .value = 1007, .default = true },
     .{ .name = "mouse_format_urxvt", .value = 1015 },
     .{ .name = "mouse_format_sgr_pixels", .value = 1016 },
+    .{ .name = "ignore_keypad_with_numlock", .value = 1035, .default = true },
     .{ .name = "alt_esc_prefix", .value = 1036, .default = true },
     .{ .name = "alt_sends_escape", .value = 1039 },
     .{ .name = "reverse_wrap_extended", .value = 1045 },