diff --git a/docs/specs/layout.md b/docs/specs/layout.md
index a137d925..79b6cc2e 100644
--- a/docs/specs/layout.md
+++ b/docs/specs/layout.md
@@ -82,13 +82,14 @@ Elements from left to right:
 - Alert bell button (reflects session activity status)
 - TODO pill (if todo state is set; hidden in minimal tier)
 - Flexible gap
+- Mouse-reporting override icon (only when the inside program requests mouse reporting; hidden in minimal tier)
 - SplitHorizontalIcon `split left/right [|]` (full tier only)
 - SplitVerticalIcon `split top/bottom [-]` (full tier only)
 - ArrowsOutIcon / ArrowsInIcon `zoom / unzoom [z]` (full tier only)
 - ArrowLineDownIcon `minimize [m]`
 - XIcon `kill [x]` (hover turns error-red)
 
-The alert bell and TODO pill are defined in `docs/specs/alert.md` (visual states, interaction, context menu, and hardening).
+The alert bell and TODO pill are defined in `docs/specs/alert.md` (visual states, interaction, context menu, and hardening). The mouse-reporting override icon (Phosphor `CursorClickIcon` / `CursorTextIcon`) is defined in `docs/specs/mouse-and-clipboard.md`.
 
 ### Pane body
 
@@ -98,9 +99,11 @@ The pane body paints `--color-terminal-bg` on the React pane wrapper and the `Te
 
 The header adapts to available width via ResizeObserver in three tiers:
 
-- **Full** (>280px): all controls visible — alert, TODO, split, zoom, minimize, kill
-- **Compact** (160–280px): SplitH/SplitV/Zoom hidden; alert, TODO, minimize, kill visible
-- **Minimal** (<160px): SplitH/SplitV/Zoom and TODO pill hidden; alert, minimize, kill visible. Session name truncates with ellipsis as needed.
+- **Full** (>280px): all controls visible — alert, TODO, mouse-override icon, split, zoom, minimize, kill
+- **Compact** (160–280px): SplitH/SplitV/Zoom hidden; alert, TODO, mouse-override icon, minimize, kill visible
+- **Minimal** (<160px): SplitH/SplitV/Zoom, TODO pill, and mouse-override icon hidden; alert, minimize, kill visible. Session name truncates with ellipsis as needed.
+
+The mouse-override icon only appears when the inside program has requested mouse reporting (per `docs/specs/mouse-and-clipboard.md`); when present, it follows the tier visibility above.
 
 ## Baseboard
 
diff --git a/docs/specs/mouse-and-clipboard.md b/docs/specs/mouse-and-clipboard.md
index b461f8a8..a1958d4f 100644
--- a/docs/specs/mouse-and-clipboard.md
+++ b/docs/specs/mouse-and-clipboard.md
@@ -27,7 +27,7 @@ The terminal makes the current regime visible in the pane header, provides a way
 
 ## 1. The Mouse Icon (Header Indicator)
 
-**Visibility.** No icon when the inside program has not requested mouse reporting; a **Mouse icon** (Phosphor `CursorClickIcon`) when it has; replaced by a **No-Mouse icon** (Phosphor `SelectionSlashIcon`) in the same header location while the user has activated an override.
+**Visibility.** No icon when the inside program has not requested mouse reporting; a **Mouse icon** (Phosphor `CursorClickIcon`) when it has; replaced by a **No-Mouse icon** (Phosphor `CursorTextIcon`) in the same header location while the user has activated an override.
 
 **Click.** Clicking the Mouse icon activates a **temporary override** (see §2). Clicking the No-Mouse icon ends the override immediately and restores mouse reporting to the inside program.
 
diff --git a/lib/src/components/wall/TerminalPaneHeader.tsx b/lib/src/components/wall/TerminalPaneHeader.tsx
index a67e1473..f7311c59 100644
--- a/lib/src/components/wall/TerminalPaneHeader.tsx
+++ b/lib/src/components/wall/TerminalPaneHeader.tsx
@@ -8,7 +8,7 @@ import {
   ArrowsOutIcon,
   BellIcon,
   CursorClickIcon,
-  SelectionSlashIcon,
+  CursorTextIcon,
   SplitHorizontalIcon,
   SplitVerticalIcon,
   XIcon,
@@ -329,7 +329,7 @@ export function TerminalPaneHeader({ api }: IDockviewPanelHeaderProps) {
               >
                 <span className="relative flex items-center justify-center">
                   {inOverride ? (
-                    <SelectionSlashIcon size={14} />
+                    <CursorTextIcon size={14} />
                   ) : (
                     <CursorClickIcon size={14} />
                   )}