diff --git a/.github/workflows/build.yaml b/.github/workflows/build.yaml
index 9751e97089..d12b24c378 100644
--- a/.github/workflows/build.yaml
+++ b/.github/workflows/build.yaml
@@ -2,6 +2,9 @@ name: build
 
 on: [push, pull_request]
 
+permissions:
+  contents: read
+
 jobs:
   build:
     runs-on: windows-latest
@@ -34,6 +37,7 @@ jobs:
         with:
           name: install
           path: _dest/
+
   minimal-sdk-artifact:
     runs-on: windows-latest
     needs: [build]
@@ -107,8 +111,73 @@ jobs:
         with:
           name: git-artifacts
           path: git-artifacts.tar.gz
+
   test-minimal-sdk:
     needs: [minimal-sdk-artifact]
     uses: git-for-windows/git-sdk-64/.github/workflows/test-ci-artifacts.yml@main
     with:
       git-artifacts-extract-location: ${{ needs.minimal-sdk-artifact.outputs.git-artifacts-extract-location }}
+
+  ui-tests:
+    needs: build
+    uses: ./.github/workflows/ui-tests.yml
+    with:
+      msys2-runtime-artifact-name: install
+    permissions:
+      contents: read
+
+  generate-msys2-tests-matrix:
+    runs-on: ubuntu-latest
+    outputs:
+      matrix: ${{ steps.matrix.outputs.matrix }}
+    steps:
+      - id: matrix
+        uses: msys2/msys2-tests/gha-matrix-gen@main
+
+  msys2-tests:
+    needs: [build, generate-msys2-tests-matrix]
+    strategy:
+      fail-fast: false
+      matrix:
+        include: ${{ fromJson(needs.generate-msys2-tests-matrix.outputs.matrix) }}
+
+    name: msys2-tests ${{ matrix.msystem }}-${{ matrix.cc }}
+    runs-on: ${{ matrix.runner }}
+    env:
+      CC: ${{ matrix.cc }}
+      CXX: ${{ matrix.cxx }}
+      FC: ${{ matrix.fc }}
+    steps:
+      - id: msys2
+        uses: msys2/setup-msys2@v2
+        with:
+          msystem: ${{ matrix.msystem }}
+          update: true
+          install: ${{ matrix.packages }}
+
+      - name: Add staging repo
+        shell: msys2 {0}
+        run: |
+          sed -i '1s|^|[staging]\nServer = https://repo.msys2.org/staging/\nSigLevel = Never\n|' /etc/pacman.conf
+
+      - name: Update using staging
+        shell: pwsh
+        run: |
+          msys2 -c 'pacman --noconfirm -Suuy'
+          $ErrorActionPreference = 'Stop'
+          $PSNativeCommandUseErrorActionPreference = $true
+          msys2 -c 'pacman --noconfirm -Suu'
+
+      - name: Download msys2-runtime artifact
+        uses: actions/download-artifact@v4
+        with:
+          name: install
+          path: ${{ steps.msys2.outputs.msys2-location }}
+
+      - name: uname -a
+        shell: msys2 {0}
+        run: uname -a
+
+      - name: Run tests
+        uses: msys2/msys2-tests@main
+
diff --git a/.github/workflows/ui-tests.yml b/.github/workflows/ui-tests.yml
new file mode 100644
index 0000000000..2fd306c280
--- /dev/null
+++ b/.github/workflows/ui-tests.yml
@@ -0,0 +1,87 @@
+name: ui-tests
+
+on:
+  workflow_call:
+    inputs:
+      msys2-runtime-artifact-name:
+        required: true
+        type: string
+
+env:
+  AUTOHOTKEY_VERSION: 2.0.19
+  WT_VERSION: 1.22.11141.0
+
+jobs:
+  ui-tests:
+    runs-on: windows-latest
+    steps:
+      - uses: actions/download-artifact@v4
+        with:
+          name: ${{ inputs.msys2-runtime-artifact-name }}
+          path: ${{ runner.temp }}/artifacts
+      - name: replace MSYS2 runtime
+        run: |
+          $p = Get-ChildItem -Recurse "${env:RUNNER_TEMP}\artifacts" | where {$_.Name -eq "msys-2.0.dll"} | Select -ExpandProperty VersionInfo | Select -First 1 -ExpandProperty FileName
+          cp $p "c:/Program Files/Git/usr/bin/msys-2.0.dll"
+
+      - uses: actions/cache/restore@v4
+        id: restore-wt
+        with:
+          key: wt-${{ env.WT_VERSION }}
+          path: ${{ runner.temp }}/wt.zip
+      - name: Download Windows Terminal
+        if: steps.restore-wt.outputs.cache-hit != 'true'
+        shell: bash
+        run: |
+          curl -fLo "$RUNNER_TEMP/wt.zip" \
+          https://github.com/microsoft/terminal/releases/download/v$WT_VERSION/Microsoft.WindowsTerminal_${WT_VERSION}_x64.zip
+      - uses: actions/cache/save@v4
+        if: steps.restore-wt.outputs.cache-hit != 'true'
+        with:
+          key: wt-${{ env.WT_VERSION }}
+          path: ${{ runner.temp }}/wt.zip
+      - name: Install Windows Terminal
+        shell: bash
+        working-directory: ${{ runner.temp }}
+        run: |
+          "$WINDIR/system32/tar.exe" -xf "$RUNNER_TEMP/wt.zip" &&
+          cygpath -aw terminal-$WT_VERSION >>$GITHUB_PATH
+      - uses: actions/cache/restore@v4
+        id: restore-ahk
+        with:
+          key: ahk-${{ env.AUTOHOTKEY_VERSION }}
+          path: ${{ runner.temp }}/ahk.zip
+      - name: Download AutoHotKey2
+        if: steps.restore-ahk.outputs.cache-hit != 'true'
+        shell: bash
+        run: |
+          curl -L -o "$RUNNER_TEMP/ahk.zip" \
+            https://github.com/AutoHotkey/AutoHotkey/releases/download/v$AUTOHOTKEY_VERSION/AutoHotkey_$AUTOHOTKEY_VERSION.zip
+      - uses: actions/cache/save@v4
+        if: steps.restore-ahk.outputs.cache-hit != 'true'
+        with:
+          key: ahk-${{ env.AUTOHOTKEY_VERSION }}
+          path: ${{ runner.temp }}/ahk.zip
+      - name: Install AutoHotKey2
+        shell: bash
+        run: |
+          mkdir -p "$RUNNER_TEMP/ahk" &&
+          "$WINDIR/system32/tar.exe" -C "$RUNNER_TEMP/ahk" -xf "$RUNNER_TEMP/ahk.zip" &&
+          cygpath -aw "$RUNNER_TEMP/ahk" >>$GITHUB_PATH
+      - uses: actions/setup-node@v4 # the hook uses node for the background process
+
+      - uses: actions/checkout@v4
+        with:
+          sparse-checkout: |
+            ui-tests
+      - name: Run UI tests
+        id: ui-tests
+        run: |
+          $p = Start-Process -PassThru -FilePath "${env:RUNNER_TEMP}\ahk\AutoHotKey64.exe" -ArgumentList ui-tests\background-hook.ahk, "$PWD\bg-hook"
+          $p.WaitForExit()
+          if ($p.ExitCode -ne 0) { echo "::error::Test failed!" } else { echo "::notice::Test log" }
+          type bg-hook.log
+          if ($p.ExitCode -ne 0) { exit 1 }
+      - name: Show logs, if canceled
+        if: cancelled()
+        run: type bg-hook.log
diff --git a/newlib/libc/include/sys/unistd.h b/newlib/libc/include/sys/unistd.h
index 771a4bd79c..4cf9f06362 100644
--- a/newlib/libc/include/sys/unistd.h
+++ b/newlib/libc/include/sys/unistd.h
@@ -215,7 +215,7 @@ int     setpgrp (void);
 #if defined(__CYGWIN__) && __BSD_VISIBLE
 /* Stub for Linux libbsd compatibility. */
 #define initsetproctitle(c, a, e) setproctitle_init((c), (a), (e))
-static inline void setproctitle_init (int _c, char *_a[], char *_e[]) {}
+static __inline void setproctitle_init (int _c, char *_a[], char *_e[]) {}
 
 void setproctitle (const char *, ...)
 		   _ATTRIBUTE ((__format__ (__printf__, 1, 2)));
diff --git a/ui-tests/background-hook.ahk b/ui-tests/background-hook.ahk
new file mode 100755
index 0000000000..43f723b56d
--- /dev/null
+++ b/ui-tests/background-hook.ahk
@@ -0,0 +1,129 @@
+#Requires AutoHotkey v2.0
+
+; This script is an integration test for the following scenario:
+; A Git hook spawns a background process that outputs some text
+; to the console even after Git has exited.
+
+; At some point in time, the Cygwin/MSYS2 runtime left the console
+; in a state where it was not possible to navigate the history via
+; CursorUp/Down, as reported in https://github.com/microsoft/git/issues/730.
+; This was fixed in the Cygwin/MSYS2 runtime, but then regressed again.
+; This test is meant to verify that the issue is fixed and remains so.
+
+; First, set the worktree path; This path will be reused
+; for the `.log` file).
+if A_Args.Length > 0
+    workTree := A_Args[1]
+else
+{
+    ; Create a unique worktree path in the TEMP directory.
+    workTree := EnvGet('TEMP') . '\git-test-background-hook'
+    if FileExist(workTree)
+    {
+      counter := 0
+      while FileExist(workTree '-' counter)
+        counter++
+      workTree := workTree '-' counter
+    }
+}
+
+Info(text) {
+    FileAppend text '`n', workTree '.log'
+}
+
+closeWindow := false
+childPid := 0
+ExitWithError(error) {
+    Info 'Error: ' error
+    if closeWindow
+       WinClose "A"
+    else if childPid != 0
+        ProcessClose childPid
+    ExitApp 1
+}
+
+RunWaitOne(command) {
+   shell := ComObject("WScript.Shell")
+   ; Execute a single command via cmd.exe
+   exec := shell.Exec(A_ComSpec " /C " command)
+   ; Read and return the command's output
+   return exec.StdOut.ReadAll()
+}
+
+SetWorkingDir(EnvGet('TEMP'))
+Info 'uname: ' RunWaitOne('uname -a')
+Info RunWaitOne('git version --build-options')
+
+RunWait('git init "' workTree '"', '', 'Hide')
+if A_LastError
+    ExitWithError 'Could not initialize Git worktree at: ' workTree
+
+SetWorkingDir(workTree)
+if A_LastError
+    ExitWithError 'Could not set working directory to: ' workTree
+
+if not FileExist('.git/hooks') and not DirCreate('.git/hooks')
+    ExitWithError 'Could not create hooks directory: ' workTree
+
+FileAppend("#!/bin/sh`npowershell -command 'for ($i = 0; $i -lt 50; $i++) { echo $i; sleep -milliseconds 10 }' &`n", '.git/hooks/pre-commit')
+if A_LastError
+    ExitWithError 'Could not create pre-commit hook: ' A_LastError
+
+Run 'wt.exe -d . ' A_ComSpec ' /d', , , &childPid
+if A_LastError
+    ExitWithError 'Error launching CMD: ' A_LastError
+Info 'Launched CMD: ' childPid
+if not WinWait(A_ComSpec, , 9)
+    ExitWithError 'CMD window did not appear'
+Info 'Got window'
+WinActivate
+CloseWindow := true
+WinMove 0, 0
+Info 'Moved window to top left (so that the bottom is not cut off)'
+
+CaptureText() {
+    ControlGetPos &cx, &cy, &cw, &ch, 'Windows.UI.Composition.DesktopWindowContentBridge1', "A"
+    titleBarHeight := 54
+    scrollBarWidth := 28
+    pad := 8
+
+    SavedClipboard := ClipboardAll
+    A_Clipboard := ''
+    SendMode('Event')
+    MouseMove cx + pad, cy + titleBarHeight + pad
+    MouseClickDrag 'Left', , , cx + cw - scrollBarWidth, cy + ch - pad, , ''
+    MouseClick 'Right'
+    ClipWait()
+    Result := A_Clipboard
+    Clipboard := SavedClipboard
+    return Result
+}
+
+Info('Setting committer identity')
+Send('git config user.name Test{Enter}git config user.email t@e.st{Enter}')
+
+Info('Committing')
+Send('git commit --allow-empty -m zOMG{Enter}')
+; Wait for the hook to finish printing
+While not RegExMatch(CaptureText(), '`n49$')
+{
+    Sleep 100
+    if A_Index > 1000
+        ExitWithError 'Timed out waiting for commit to finish'
+    MouseClick 'WheelDown', , , 20
+}
+Info('Hook finished')
+
+; Verify that CursorUp shows the previous command
+Send('{Up}')
+Sleep 150
+Text := CaptureText()
+if not RegExMatch(Text, 'git commit --allow-empty -m zOMG *$')
+    ExitWithError 'Cursor Up did not work: ' Text
+Info('Match!')
+
+Send('^C')
+Send('exit{Enter}')
+Sleep 50
+SetWorkingDir(EnvGet('TEMP'))
+DirDelete(workTree, true)
\ No newline at end of file
diff --git a/winsup/cygwin/fhandler/console.cc b/winsup/cygwin/fhandler/console.cc
index f33e354c25..2a224fe026 100644
--- a/winsup/cygwin/fhandler/console.cc
+++ b/winsup/cygwin/fhandler/console.cc
@@ -771,6 +771,8 @@ fhandler_console::setup ()
       con.disable_master_thread = true;
       con.master_thread_suspended = false;
       con.num_processed = 0;
+      con.curr_input_mode = tty::restore;
+      con.curr_output_mode = tty::restore;
     }
 }
 
@@ -849,11 +851,6 @@ fhandler_console::set_input_mode (tty::cons_mode m, const termios *t,
 	flags |= ENABLE_PROCESSED_INPUT;
       break;
     }
-  if (con.curr_input_mode != tty::cygwin && m == tty::cygwin)
-    {
-      prev_input_mode_backup = con.prev_input_mode;
-      con.prev_input_mode = oflags;
-    }
   con.curr_input_mode = m;
   SetConsoleMode (p->input_handle, flags);
   if (!(oflags & ENABLE_VIRTUAL_TERMINAL_INPUT)
@@ -893,11 +890,6 @@ fhandler_console::set_output_mode (tty::cons_mode m, const termios *t,
 	flags |= DISABLE_NEWLINE_AUTO_RETURN;
       break;
     }
-  if (con.curr_output_mode != tty::cygwin && m == tty::cygwin)
-    {
-      prev_output_mode_backup = con.prev_output_mode;
-      GetConsoleMode (p->output_handle, &con.prev_output_mode);
-    }
   con.curr_output_mode = m;
   acquire_attach_mutex (mutex_timeout);
   DWORD resume_pid = attach_console (con.owner);
@@ -1836,6 +1828,12 @@ fhandler_console::open (int flags, mode_t)
   handle_set.output_handle = h;
   release_output_mutex ();
 
+  if (con.owner == GetCurrentProcessId ())
+    {
+      GetConsoleMode (get_handle (), &con.prev_input_mode);
+      GetConsoleMode (get_output_handle (), &con.prev_output_mode);
+    }
+
   wpbuf.init ();
 
   handle_set.input_mutex = input_mutex;
@@ -1881,6 +1879,19 @@ fhandler_console::open (int flags, mode_t)
 	setenv ("TERM", "cygwin", 1);
     }
 
+  if (con.curr_input_mode != tty::cygwin)
+    {
+      prev_input_mode_backup = con.prev_input_mode;
+      GetConsoleMode (get_handle (), &con.prev_input_mode);
+      set_input_mode (tty::cygwin, &get_ttyp ()->ti, &handle_set);
+    }
+  if (con.curr_output_mode != tty::cygwin)
+    {
+      prev_output_mode_backup = con.prev_output_mode;
+      GetConsoleMode (get_output_handle (), &con.prev_output_mode);
+      set_output_mode (tty::cygwin, &get_ttyp ()->ti, &handle_set);
+    }
+
   debug_printf ("opened conin$ %p, conout$ %p", get_handle (),
 		get_output_handle ());
 
@@ -4720,7 +4731,7 @@ fhandler_console::cons_mode_on_close (handle_set_t *p)
   NTSTATUS status =
     NtQueryInformationProcess (GetCurrentProcess (), ProcessBasicInformation,
 			       &pbi, sizeof (pbi), NULL);
-  if (NT_SUCCESS (status)
+  if (NT_SUCCESS (status) && cygwin_pid (con.owner)
       && !process_alive ((DWORD) pbi.InheritedFromUniqueProcessId))
     /* Execed from normal cygwin process and the parent has been exited. */
     return tty::cygwin;