diff --git a/src/cascadia/TerminalControl/TermControl.cpp b/src/cascadia/TerminalControl/TermControl.cpp
index 7cb506a7c47..ee4e9020ba3 100644
--- a/src/cascadia/TerminalControl/TermControl.cpp
+++ b/src/cascadia/TerminalControl/TermControl.cpp
@@ -820,14 +820,6 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
     // - point: the PointerPoint object representing a mouse event from our XAML input handler
     bool TermControl::_TrySendMouseEvent(Windows::UI::Input::PointerPoint const& point)
     {
-        // If the user is holding down Shift, suppress mouse events
-        // TODO GH#4875: disable/customize this functionality
-        const auto modifiers = _GetPressedModifierKeys();
-        if (modifiers.IsShiftPressed())
-        {
-            return false;
-        }
-
         const auto props = point.Properties();
 
         // Get the terminal position relative to the viewport
@@ -867,9 +859,26 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
             uiButton = WM_MOUSEWHEEL;
         }
 
+        const auto modifiers = _GetPressedModifierKeys();
         return _terminal->SendMouseEvent(terminalPosition, uiButton, modifiers, sWheelDelta);
     }
 
+    // Method Description:
+    // - Checks if we can send vt mouse input.
+    // Arguments:
+    // - point: the PointerPoint object representing a mouse event from our XAML input handler
+    bool TermControl::_CanSendVTMouseInput()
+    {
+        // If the user is holding down Shift, suppress mouse events
+        // TODO GH#4875: disable/customize this functionality
+        const auto modifiers = _GetPressedModifierKeys();
+        if (modifiers.IsShiftPressed())
+        {
+            return false;
+        }
+        return _terminal->IsTrackingMouseInput();
+    }
+
     // Method Description:
     // - handle a mouse click event. Begin selection process.
     // Arguments:
@@ -905,8 +914,9 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
             const auto altEnabled = WI_IsFlagSet(modifiers, static_cast<uint32_t>(VirtualKeyModifiers::Menu));
             const auto shiftEnabled = WI_IsFlagSet(modifiers, static_cast<uint32_t>(VirtualKeyModifiers::Shift));
 
-            if (_TrySendMouseEvent(point))
+            if (_CanSendVTMouseInput())
             {
+                _TrySendMouseEvent(point);
                 args.Handled(true);
                 return;
             }
@@ -999,8 +1009,9 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
 
         if (ptr.PointerDeviceType() == Windows::Devices::Input::PointerDeviceType::Mouse || ptr.PointerDeviceType() == Windows::Devices::Input::PointerDeviceType::Pen)
         {
-            if (_TrySendMouseEvent(point))
+            if (_CanSendVTMouseInput())
             {
+                _TrySendMouseEvent(point);
                 args.Handled(true);
                 return;
             }
@@ -1091,8 +1102,9 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
 
         if (ptr.PointerDeviceType() == Windows::Devices::Input::PointerDeviceType::Mouse || ptr.PointerDeviceType() == Windows::Devices::Input::PointerDeviceType::Pen)
         {
-            if (_TrySendMouseEvent(point))
+            if (_CanSendVTMouseInput())
             {
+                _TrySendMouseEvent(point);
                 args.Handled(true);
                 return;
             }
@@ -1138,6 +1150,14 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
                                          Input::PointerRoutedEventArgs const& args)
     {
         const auto point = args.GetCurrentPoint(*this);
+
+        if (_CanSendVTMouseInput())
+        {
+            _TrySendMouseEvent(point);
+            args.Handled(true);
+            return;
+        }
+
         const auto delta = point.Properties().MouseWheelDelta();
 
         // Get the state of the Ctrl & Shift keys
@@ -1147,12 +1167,6 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
         const auto ctrlPressed = WI_IsFlagSet(modifiers, static_cast<uint32_t>(VirtualKeyModifiers::Control));
         const auto shiftPressed = WI_IsFlagSet(modifiers, static_cast<uint32_t>(VirtualKeyModifiers::Shift));
 
-        if (_TrySendMouseEvent(point))
-        {
-            args.Handled(true);
-            return;
-        }
-
         if (ctrlPressed && shiftPressed)
         {
             _MouseTransparencyHandler(delta);
diff --git a/src/cascadia/TerminalControl/TermControl.h b/src/cascadia/TerminalControl/TermControl.h
index 57518296f8e..57606506bee 100644
--- a/src/cascadia/TerminalControl/TermControl.h
+++ b/src/cascadia/TerminalControl/TermControl.h
@@ -212,6 +212,7 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
         ::Microsoft::Terminal::Core::ControlKeyStates _GetPressedModifierKeys() const;
         bool _TrySendKeyEvent(const WORD vkey, const WORD scanCode, ::Microsoft::Terminal::Core::ControlKeyStates modifiers);
         bool _TrySendMouseEvent(Windows::UI::Input::PointerPoint const& point);
+        bool _CanSendVTMouseInput();
 
         const COORD _GetTerminalPosition(winrt::Windows::Foundation::Point cursorPosition);
         const unsigned int _NumberOfClicks(winrt::Windows::Foundation::Point clickPos, Timestamp clickTime);
diff --git a/src/cascadia/TerminalCore/Terminal.cpp b/src/cascadia/TerminalCore/Terminal.cpp
index cab140eecd7..fb15bb59e55 100644
--- a/src/cascadia/TerminalCore/Terminal.cpp
+++ b/src/cascadia/TerminalCore/Terminal.cpp
@@ -222,6 +222,17 @@ void Terminal::TrySnapOnInput()
     }
 }
 
+// Routine Description:
+// - Relays if we are tracking mouse input
+// Parameters:
+// - <none>
+// Return value:
+// - true, if we are tracking mouse input. False, otherwise
+bool Terminal::IsTrackingMouseInput() const
+{
+    return _terminalInput->IsTrackingMouseInput();
+}
+
 // Method Description:
 // - Send this particular key event to the terminal. The terminal will translate
 //   the key and the modifiers pressed into the appropriate VT sequence for that
diff --git a/src/cascadia/TerminalCore/Terminal.hpp b/src/cascadia/TerminalCore/Terminal.hpp
index 3ab121acf9f..6c7583349fe 100644
--- a/src/cascadia/TerminalCore/Terminal.hpp
+++ b/src/cascadia/TerminalCore/Terminal.hpp
@@ -119,6 +119,7 @@ class Microsoft::Terminal::Core::Terminal final :
     int GetScrollOffset() noexcept override;
 
     void TrySnapOnInput() override;
+    bool IsTrackingMouseInput() const;
 #pragma endregion
 
 #pragma region IBaseData(base to IRenderData and IUiaData)
diff --git a/src/terminal/input/mouseInput.cpp b/src/terminal/input/mouseInput.cpp
index 88c8ad2e64a..03fd089cb59 100644
--- a/src/terminal/input/mouseInput.cpp
+++ b/src/terminal/input/mouseInput.cpp
@@ -264,6 +264,17 @@ static constexpr short _encodeDefaultCoordinate(const short sCoordinateValue) no
     return sCoordinateValue + 32;
 }
 
+// Routine Description:
+// - Relays if we are tracking mouse input
+// Parameters:
+// - <none>
+// Return value:
+// - true, if we are tracking mouse input. False, otherwise
+bool TerminalInput::IsTrackingMouseInput() const
+{
+    return (_mouseInputState.trackingMode != TrackingMode::None);
+}
+
 // Routine Description:
 // - Attempt to handle the given mouse coordinates and windows button as a VT-style mouse event.
 //     If the event should be transmitted in the selected mouse mode, then we'll try and
diff --git a/src/terminal/input/terminalInput.hpp b/src/terminal/input/terminalInput.hpp
index b0b5860c128..b0108ce8e20 100644
--- a/src/terminal/input/terminalInput.hpp
+++ b/src/terminal/input/terminalInput.hpp
@@ -44,6 +44,8 @@ namespace Microsoft::Console::VirtualTerminal
                          const unsigned int button,
                          const short modifierKeyState,
                          const short delta);
+
+        bool IsTrackingMouseInput() const;
 #pragma endregion
 
 #pragma region MouseInputState Management