diff --git a/packages/coding-agent/examples/extensions/overlay-qa-tests.ts b/packages/coding-agent/examples/extensions/overlay-qa-tests.ts
index 3bc24704..8ad4a32b 100644
--- a/packages/coding-agent/examples/extensions/overlay-qa-tests.ts
+++ b/packages/coding-agent/examples/extensions/overlay-qa-tests.ts
@@ -14,10 +14,13 @@
  *   /overlay-maxheight  - Test maxHeight truncation
  *   /overlay-sidepanel  - Responsive sidepanel (hides when terminal < 100 cols)
  *   /overlay-toggle     - Toggle visibility demo (demonstrates OverlayHandle.setHidden)
+ *   /overlay-passive    - Non-capturing overlay demo (passive info panel alongside active overlay)
+ *   /overlay-focus      - Focus cycling and rendering order with non-capturing overlays
+ *   /overlay-streaming  - Multiple input panels with simulated streaming (Tab to cycle focus)
  */
 
 import type { ExtensionAPI, ExtensionCommandContext, Theme } from "@mariozechner/pi-coding-agent";
-import type { OverlayAnchor, OverlayHandle, OverlayOptions, TUI } from "@mariozechner/pi-tui";
+import type { Component, OverlayAnchor, OverlayHandle, OverlayOptions, TUI } from "@mariozechner/pi-tui";
 import { matchesKey, truncateToWidth, visibleWidth } from "@mariozechner/pi-tui";
 import { spawn } from "child_process";
 
@@ -256,6 +259,42 @@ export default function (pi: ExtensionAPI) {
 			globalToggleHandle = null;
 		},
 	});
+
+	// Non-capturing overlay demo - passive info panel that doesn't steal focus
+	pi.registerCommand("overlay-passive", {
+		description: "Test non-capturing overlay (passive info panel alongside active overlay)",
+		handler: async (_args: string, ctx: ExtensionCommandContext) => {
+			ctx.ui.setEditorText("");
+			await ctx.ui.custom<void>((tui, theme, _kb, done) => new PassiveDemoController(tui, theme, done), {
+				overlay: true,
+				overlayOptions: { anchor: "center", width: 48 },
+			});
+		},
+	});
+
+	// Focus cycling demo - demonstrates focus(), unfocus(), isFocused() and rendering order
+	pi.registerCommand("overlay-focus", {
+		description: "Test focus cycling and rendering order with non-capturing overlays",
+		handler: async (_args: string, ctx: ExtensionCommandContext) => {
+			ctx.ui.setEditorText("");
+			await ctx.ui.custom<void>((tui, theme, _kb, done) => new FocusDemoController(tui, theme, done), {
+				overlay: true,
+				overlayOptions: { anchor: "bottom-center", width: 55, margin: { bottom: 1 } },
+			});
+		},
+	});
+
+	// Test multiple input panels with simulated streaming
+	pi.registerCommand("overlay-streaming", {
+		description: "Multiple input panels with simulated streaming (Tab to cycle focus)",
+		handler: async (_args: string, ctx: ExtensionCommandContext) => {
+			ctx.ui.setEditorText("");
+			await ctx.ui.custom<void>((tui, theme, _kb, done) => new StreamingInputController(tui, theme, done), {
+				overlay: true,
+				overlayOptions: { anchor: "bottom-center", width: 60, margin: { bottom: 1 } },
+			});
+		},
+	});
 }
 
 function sleep(ms: number): Promise<void> {
@@ -879,3 +918,431 @@ class ToggleDemoComponent extends BaseOverlay {
 		);
 	}
 }
+
+// === Non-capturing passive overlay demo ===
+
+class PassiveDemoController extends BaseOverlay {
+	focused = false;
+	private typed = "";
+	private timerComponent: TimerPanel;
+	private timerHandle: OverlayHandle | null = null;
+	private interval: ReturnType<typeof setInterval> | null = null;
+	private inputCount = 0;
+	private lastInputDebug = "";
+
+	constructor(
+		private tui: TUI,
+		theme: Theme,
+		private done: () => void,
+	) {
+		super(theme);
+		this.timerComponent = new TimerPanel(theme);
+		this.timerHandle = this.tui.showOverlay(this.timerComponent, {
+			nonCapturing: true,
+			anchor: "top-right",
+			width: 22,
+			margin: { top: 1, right: 2 },
+		});
+		this.interval = setInterval(() => {
+			this.timerComponent.tick();
+			this.tui.requestRender();
+		}, 1000);
+	}
+
+	handleInput(data: string): void {
+		this.inputCount++;
+		this.lastInputDebug = `len=${data.length} c0=${data.charCodeAt(0)}`;
+		if (matchesKey(data, "escape") || matchesKey(data, "ctrl+c")) {
+			this.cleanup();
+			this.done();
+		} else if (matchesKey(data, "backspace")) {
+			this.typed = this.typed.slice(0, -1);
+		} else if (data.length === 1 && data.charCodeAt(0) >= 32) {
+			this.typed += data;
+		}
+	}
+
+	render(width: number): string[] {
+		const th = this.theme;
+		const display = this.typed.length > 0 ? this.typed : th.fg("dim", "(type here)");
+		return this.box(
+			[
+				"",
+				` ${th.fg("dim", `focused=${this.focused} inputs=${this.inputCount}`)}`,
+				` ${th.fg("dim", `last: ${this.lastInputDebug || "none"}`)}`,
+				"",
+				` > ${display}`,
+				"",
+				th.fg("dim", " Type to prove input goes here."),
+				th.fg("dim", " Press Esc to close both."),
+				"",
+			],
+			width,
+			"Non-Capturing Demo",
+		);
+	}
+
+	private cleanup(): void {
+		if (this.interval) {
+			clearInterval(this.interval);
+			this.interval = null;
+		}
+		this.timerHandle?.hide();
+		this.timerHandle = null;
+	}
+
+	override dispose(): void {
+		this.cleanup();
+	}
+}
+
+class TimerPanel extends BaseOverlay {
+	private seconds = 0;
+
+	tick(): void {
+		this.seconds++;
+	}
+
+	render(width: number): string[] {
+		const th = this.theme;
+		const mins = Math.floor(this.seconds / 60);
+		const secs = this.seconds % 60;
+		const time = `${String(mins).padStart(2, "0")}:${String(secs).padStart(2, "0")}`;
+		return this.box([` ${th.fg("accent", time)}`, th.fg("dim", " nonCapturing: true")], width, "Timer");
+	}
+}
+
+// === Focus cycling demo ===
+
+class FocusDemoController extends BaseOverlay {
+	private panels: FocusPanel[] = [];
+	private handles: OverlayHandle[] = [];
+	private focusIndex = -1;
+
+	constructor(
+		private tui: TUI,
+		theme: Theme,
+		private done: () => void,
+	) {
+		super(theme);
+		const colors = ["error", "success", "accent"] as const;
+		const labels = ["Alpha", "Beta", "Gamma"];
+
+		for (let i = 0; i < 3; i++) {
+			const panel = new FocusPanel(
+				theme,
+				labels[i]!,
+				colors[i]!,
+				() => this.cycleFocus(),
+				() => this.close(),
+			);
+			const handle = this.tui.showOverlay(panel, {
+				nonCapturing: true,
+				row: 2,
+				col: 5 + i * 6,
+				width: 28,
+			});
+			panel.handle = handle;
+			this.panels.push(panel);
+			this.handles.push(handle);
+		}
+	}
+
+	private cycleFocus(): void {
+		if (this.focusIndex >= 0 && this.focusIndex < this.handles.length) {
+			this.handles[this.focusIndex]!.unfocus();
+		}
+		this.focusIndex++;
+		if (this.focusIndex >= this.handles.length) {
+			this.focusIndex = -1;
+		} else {
+			this.handles[this.focusIndex]!.focus();
+		}
+		this.tui.requestRender();
+	}
+
+	private close(): void {
+		for (const handle of this.handles) handle.hide();
+		this.handles = [];
+		this.panels = [];
+		this.done();
+	}
+
+	handleInput(data: string): void {
+		if (matchesKey(data, "escape") || matchesKey(data, "ctrl+c")) {
+			this.close();
+		} else if (matchesKey(data, "tab")) {
+			this.cycleFocus();
+		}
+	}
+
+	render(width: number): string[] {
+		const th = this.theme;
+		const focused = this.focusIndex === -1 ? "Controller" : (this.panels[this.focusIndex]?.label ?? "?");
+		return this.box(
+			[
+				"",
+				` Current focus: ${th.fg("accent", focused)}`,
+				"",
+				" Three overlapping panels above are",
+				` all ${th.fg("accent", "nonCapturing")}. Press Tab to`,
+				" cycle focus() between them.",
+				"",
+				" Focused panel renders on top",
+				" (focus-based rendering order).",
+				"",
+				th.fg("dim", " Tab = cycle focus | Esc = close"),
+				"",
+			],
+			width,
+			"Focus Demo",
+		);
+	}
+
+	override dispose(): void {
+		for (const handle of this.handles) handle.hide();
+	}
+}
+
+class FocusPanel extends BaseOverlay {
+	handle: OverlayHandle | null = null;
+	readonly label: string;
+
+	constructor(
+		theme: Theme,
+		label: string,
+		private color: "error" | "success" | "accent",
+		private onTab: () => void,
+		private onClose: () => void,
+	) {
+		super(theme);
+		this.label = label;
+	}
+
+	handleInput(data: string): void {
+		if (matchesKey(data, "tab")) {
+			this.onTab();
+		} else if (matchesKey(data, "escape") || matchesKey(data, "ctrl+c")) {
+			this.onClose();
+		}
+	}
+
+	render(width: number): string[] {
+		const th = this.theme;
+		const focused = this.handle?.isFocused() ?? false;
+		const innerW = Math.max(1, width - 2);
+		const border = (c: string) => th.fg(this.color, c);
+		const padLine = (s: string) => truncateToWidth(s, innerW, "...", true);
+		const lines: string[] = [];
+
+		lines.push(border(`╭${"─".repeat(innerW)}╮`));
+		lines.push(border("│") + padLine(` ${th.fg("accent", this.label)}`) + border("│"));
+		lines.push(border("│") + padLine("") + border("│"));
+		if (focused) {
+			lines.push(border("│") + padLine(th.fg("success", " ● FOCUSED")) + border("│"));
+			lines.push(border("│") + padLine(th.fg("dim", " (receiving input)")) + border("│"));
+		} else {
+			lines.push(border("│") + padLine(th.fg("dim", " ○ unfocused")) + border("│"));
+			lines.push(border("│") + padLine(th.fg("dim", " (passive)")) + border("│"));
+		}
+		lines.push(border("│") + padLine("") + border("│"));
+		lines.push(border(`╰${"─".repeat(innerW)}╯`));
+
+		return lines;
+	}
+}
+
+// === Streaming input panel test (/overlay-streaming) ===
+
+class StreamingInputController extends BaseOverlay {
+	private panels: StreamingInputPanel[] = [];
+	private handles: OverlayHandle[] = [];
+	private focusIndex = -1; // -1 = controller focused, 0-2 = panel focused
+	private streamLines: string[] = [];
+	private streamInterval: ReturnType<typeof setInterval> | null = null;
+	private lineCount = 0;
+
+	constructor(
+		private tui: TUI,
+		theme: Theme,
+		private done: () => void,
+	) {
+		super(theme);
+
+		// Create 3 input panels as non-capturing overlays
+		const colors = ["error", "success", "accent"] as const;
+		const labels = ["Panel A", "Panel B", "Panel C"];
+
+		for (let i = 0; i < 3; i++) {
+			const panel = new StreamingInputPanel(
+				theme,
+				labels[i]!,
+				colors[i]!,
+				() => this.cycleFocus(),
+				() => this.close(),
+			);
+			const handle = this.tui.showOverlay(panel, {
+				nonCapturing: true,
+				row: 1 + i * 9,
+				col: 2,
+				width: 35,
+			});
+			panel.handle = handle;
+			this.panels.push(panel);
+			this.handles.push(handle);
+		}
+
+		// Start with controller focused (focusIndex = -1)
+
+		// Start simulated streaming
+		this.streamInterval = setInterval(() => {
+			this.lineCount++;
+			const timestamp = new Date().toLocaleTimeString();
+			this.streamLines.push(`[${timestamp}] Streaming line ${this.lineCount}...`);
+			if (this.streamLines.length > 8) {
+				this.streamLines.shift();
+			}
+			this.tui.requestRender();
+		}, 500);
+	}
+
+	private cycleFocus(): void {
+		// Unfocus current panel if any
+		if (this.focusIndex >= 0 && this.focusIndex < this.handles.length) {
+			this.handles[this.focusIndex]!.unfocus();
+		}
+
+		// Cycle: -1 (controller) → 0 → 1 → 2 → -1 ...
+		this.focusIndex++;
+		if (this.focusIndex >= this.handles.length) {
+			this.focusIndex = -1; // Back to controller
+		}
+
+		// Focus new panel if any
+		if (this.focusIndex >= 0) {
+			this.handles[this.focusIndex]!.focus();
+		}
+
+		this.tui.requestRender();
+	}
+
+	private close(): void {
+		if (this.streamInterval) {
+			clearInterval(this.streamInterval);
+			this.streamInterval = null;
+		}
+		for (const handle of this.handles) handle.hide();
+		this.handles = [];
+		this.panels = [];
+		this.done();
+	}
+
+	handleInput(data: string): void {
+		if (matchesKey(data, "escape") || matchesKey(data, "ctrl+c")) {
+			this.close();
+		} else if (matchesKey(data, "tab")) {
+			this.cycleFocus();
+		}
+	}
+
+	render(width: number): string[] {
+		const th = this.theme;
+		const focusedLabel =
+			this.focusIndex === -1
+				? th.fg("success", "Controller (this panel)")
+				: (this.panels[this.focusIndex]?.label ?? "?");
+
+		const lines = [
+			"",
+			` Current focus: ${th.fg("accent", focusedLabel)}`,
+			"",
+			" Simulated streaming output:",
+			th.fg("dim", " ─".repeat((width - 2) / 2)),
+		];
+
+		for (const line of this.streamLines) {
+			lines.push(` ${th.fg("dim", line)}`);
+		}
+
+		while (lines.length < 12) {
+			lines.push("");
+		}
+
+		lines.push(th.fg("dim", " ─".repeat((width - 2) / 2)));
+		lines.push("");
+		lines.push(` Three ${th.fg("accent", "nonCapturing")} input panels on the left.`);
+		lines.push(" Tab cycles: Controller → Panel A → B → C → Controller");
+		lines.push(" Type in each panel to test input routing.");
+		lines.push("");
+		lines.push(th.fg("dim", " Tab = cycle focus | Esc = close all"));
+		lines.push("");
+
+		return this.box(lines, width, "Streaming + Input Test");
+	}
+
+	override dispose(): void {
+		this.close();
+	}
+}
+
+class StreamingInputPanel implements Component {
+	handle: OverlayHandle | null = null;
+	private typed = "";
+	readonly label: string;
+
+	constructor(
+		private theme: Theme,
+		label: string,
+		private color: "error" | "success" | "accent",
+		private onTab: () => void,
+		private onClose: () => void,
+	) {
+		this.label = label;
+	}
+
+	handleInput(data: string): void {
+		if (matchesKey(data, "tab")) {
+			this.onTab();
+		} else if (matchesKey(data, "escape") || matchesKey(data, "ctrl+c")) {
+			this.onClose();
+		} else if (matchesKey(data, "backspace")) {
+			this.typed = this.typed.slice(0, -1);
+		} else if (data.length === 1 && data.charCodeAt(0) >= 32) {
+			this.typed += data;
+		}
+	}
+
+	render(width: number): string[] {
+		const th = this.theme;
+		const focused = this.handle?.isFocused() ?? false;
+		const innerW = Math.max(1, width - 2);
+		const border = (c: string) => th.fg(this.color, c);
+		const padLine = (s: string) => {
+			const w = visibleWidth(s);
+			return s + " ".repeat(Math.max(0, innerW - w));
+		};
+
+		const inputDisplay = this.typed.length > 0 ? this.typed : th.fg("dim", "(type here)");
+		const truncatedInput = truncateToWidth(` > ${inputDisplay}`, innerW, "...", true);
+
+		const lines: string[] = [];
+		lines.push(border(`╭${"─".repeat(innerW)}╮`));
+		lines.push(border("│") + padLine(` ${th.fg("accent", this.label)}`) + border("│"));
+		lines.push(border("│") + padLine("") + border("│"));
+		if (focused) {
+			lines.push(border("│") + padLine(th.fg("success", " ● FOCUSED")) + border("│"));
+			lines.push(border("│") + padLine(th.fg("dim", " (receiving input)")) + border("│"));
+		} else {
+			lines.push(border("│") + padLine(th.fg("dim", " ○ unfocused")) + border("│"));
+			lines.push(border("│") + padLine("") + border("│"));
+		}
+		lines.push(border("│") + padLine(truncatedInput) + border("│"));
+		lines.push(border("│") + padLine("") + border("│"));
+		lines.push(border("│") + padLine(th.fg("dim", " Tab | Esc")) + border("│"));
+		lines.push(border(`╰${"─".repeat(innerW)}╯`));
+
+		return lines;
+	}
+
+	invalidate(): void {}
+}
diff --git a/packages/tui/CHANGELOG.md b/packages/tui/CHANGELOG.md
index a6215a7b..6a04e5fa 100644
--- a/packages/tui/CHANGELOG.md
+++ b/packages/tui/CHANGELOG.md
@@ -2,6 +2,18 @@
 
 ## [Unreleased]
 
+### Added
+
+- Added non-capturing overlays via `OverlayOptions.nonCapturing` and new `OverlayHandle` methods: `focus()`, `unfocus()`, and `isFocused()` for programmatic overlay focus control ([#1355](https://github.com/badlogic/pi-mono/issues/1355))
+
+### Changed
+
+- Overlay compositing order now uses focus order so focused overlays render on top while preserving stack semantics for show/hide behavior ([#1355](https://github.com/badlogic/pi-mono/issues/1355))
+
+### Fixed
+
+- Fixed automatic focus restoration to skip non-capturing overlays and fixed `hideOverlay()` to only reassign focus when the popped overlay had focus ([#1355](https://github.com/badlogic/pi-mono/issues/1355))
+
 ## [0.56.3] - 2026-03-06
 
 ### Added
diff --git a/packages/tui/README.md b/packages/tui/README.md
index 96fff9c0..75d9668b 100644
--- a/packages/tui/README.md
+++ b/packages/tui/README.md
@@ -93,6 +93,9 @@ const handle = tui.showOverlay(component, {
 
   // Responsive visibility
   visible: (termWidth, termHeight) => termWidth >= 100  // Hide on narrow terminals
+
+  // Focus behavior
+  nonCapturing: true       // Don't auto-focus when shown
 });
 
 // OverlayHandle methods
@@ -100,6 +103,9 @@ handle.hide();              // Permanently remove the overlay
 handle.setHidden(true);     // Temporarily hide (can show again)
 handle.setHidden(false);    // Show again after hiding
 handle.isHidden();          // Check if temporarily hidden
+handle.focus();             // Focus and bring to visual front
+handle.unfocus();           // Release focus to previous target
+handle.isFocused();         // Check if overlay has focus
 
 // Hide topmost overlay
 tui.hideOverlay();
diff --git a/packages/tui/src/tui.ts b/packages/tui/src/tui.ts
index 36ec45f1..7f4bb999 100644
--- a/packages/tui/src/tui.ts
+++ b/packages/tui/src/tui.ts
@@ -145,6 +145,8 @@ export interface OverlayOptions {
 	 * Called each render cycle with current terminal dimensions.
 	 */
 	visible?: (termWidth: number, termHeight: number) => boolean;
+	/** If true, don't capture keyboard focus when shown */
+	nonCapturing?: boolean;
 }
 
 /**
@@ -157,6 +159,12 @@ export interface OverlayHandle {
 	setHidden(hidden: boolean): void;
 	/** Check if overlay is temporarily hidden */
 	isHidden(): boolean;
+	/** Focus this overlay and bring it to the visual front */
+	focus(): void;
+	/** Release focus to the previous target */
+	unfocus(): void;
+	/** Check if this overlay currently has focus */
+	isFocused(): boolean;
 }
 
 /**
@@ -221,11 +229,13 @@ export class TUI extends Container {
 	private stopped = false;
 
 	// Overlay stack for modal components rendered on top of base content
+	private focusOrderCounter = 0;
 	private overlayStack: {
 		component: Component;
 		options?: OverlayOptions;
 		preFocus: Component | null;
 		hidden: boolean;
+		focusOrder: number;
 	}[] = [];
 
 	constructor(terminal: Terminal, showHardwareCursor?: boolean) {
@@ -285,10 +295,16 @@ export class TUI extends Container {
 	 * Returns a handle to control the overlay's visibility.
 	 */
 	showOverlay(component: Component, options?: OverlayOptions): OverlayHandle {
-		const entry = { component, options, preFocus: this.focusedComponent, hidden: false };
+		const entry = {
+			component,
+			options,
+			preFocus: this.focusedComponent,
+			hidden: false,
+			focusOrder: ++this.focusOrderCounter,
+		};
 		this.overlayStack.push(entry);
 		// Only focus if overlay is actually visible
-		if (this.isOverlayVisible(entry)) {
+		if (!options?.nonCapturing && this.isOverlayVisible(entry)) {
 			this.setFocus(component);
 		}
 		this.terminal.hideCursor();
@@ -321,13 +337,29 @@ export class TUI extends Container {
 					}
 				} else {
 					// Restore focus to this overlay when showing (if it's actually visible)
-					if (this.isOverlayVisible(entry)) {
+					if (!options?.nonCapturing && this.isOverlayVisible(entry)) {
+						entry.focusOrder = ++this.focusOrderCounter;
 						this.setFocus(component);
 					}
 				}
 				this.requestRender();
 			},
 			isHidden: () => entry.hidden,
+			focus: () => {
+				if (!this.overlayStack.includes(entry) || !this.isOverlayVisible(entry)) return;
+				if (this.focusedComponent !== component) {
+					this.setFocus(component);
+				}
+				entry.focusOrder = ++this.focusOrderCounter;
+				this.requestRender();
+			},
+			unfocus: () => {
+				if (this.focusedComponent !== component) return;
+				const topVisible = this.getTopmostVisibleOverlay();
+				this.setFocus(topVisible && topVisible !== entry ? topVisible.component : entry.preFocus);
+				this.requestRender();
+			},
+			isFocused: () => this.focusedComponent === component,
 		};
 	}
 
@@ -335,9 +367,11 @@ export class TUI extends Container {
 	hideOverlay(): void {
 		const overlay = this.overlayStack.pop();
 		if (!overlay) return;
-		// Find topmost visible overlay, or fall back to preFocus
-		const topVisible = this.getTopmostVisibleOverlay();
-		this.setFocus(topVisible?.component ?? overlay.preFocus);
+		if (this.focusedComponent === overlay.component) {
+			// Find topmost visible overlay, or fall back to preFocus
+			const topVisible = this.getTopmostVisibleOverlay();
+			this.setFocus(topVisible?.component ?? overlay.preFocus);
+		}
 		if (this.overlayStack.length === 0) this.terminal.hideCursor();
 		this.requestRender();
 	}
@@ -356,9 +390,10 @@ export class TUI extends Container {
 		return true;
 	}
 
-	/** Find the topmost visible overlay, if any */
+	/** Find the topmost visible capturing overlay, if any */
 	private getTopmostVisibleOverlay(): (typeof this.overlayStack)[number] | undefined {
 		for (let i = this.overlayStack.length - 1; i >= 0; i--) {
+			if (this.overlayStack[i].options?.nonCapturing) continue;
 			if (this.isOverlayVisible(this.overlayStack[i])) {
 				return this.overlayStack[i];
 			}
@@ -678,7 +713,7 @@ export class TUI extends Container {
 		}
 	}
 
-	/** Composite all overlays into content lines (in stack order, later = on top). */
+	/** Composite all overlays into content lines (sorted by focusOrder, higher = on top). */
 	private compositeOverlays(lines: string[], termWidth: number, termHeight: number): string[] {
 		if (this.overlayStack.length === 0) return lines;
 		const result = [...lines];
@@ -687,10 +722,9 @@ export class TUI extends Container {
 		const rendered: { overlayLines: string[]; row: number; col: number; w: number }[] = [];
 		let minLinesNeeded = result.length;
 
-		for (const entry of this.overlayStack) {
-			// Skip invisible overlays (hidden or visible() returns false)
-			if (!this.isOverlayVisible(entry)) continue;
-
+		const visibleEntries = this.overlayStack.filter((e) => this.isOverlayVisible(e));
+		visibleEntries.sort((a, b) => a.focusOrder - b.focusOrder);
+		for (const entry of visibleEntries) {
 			const { component, options } = entry;
 
 			// Get layout with height=0 first to determine width and maxHeight
@@ -723,9 +757,6 @@ export class TUI extends Container {
 
 		const viewportStart = Math.max(0, workingHeight - termHeight);
 
-		// Track which lines were modified for final verification
-		const modifiedLines = new Set<number>();
-
 		// Composite each overlay
 		for (const { overlayLines, row, col, w } of rendered) {
 			for (let i = 0; i < overlayLines.length; i++) {
@@ -736,22 +767,10 @@ export class TUI extends Container {
 					const truncatedOverlayLine =
 						visibleWidth(overlayLines[i]) > w ? sliceByColumn(overlayLines[i], 0, w, true) : overlayLines[i];
 					result[idx] = this.compositeLineAt(result[idx], truncatedOverlayLine, col, w, termWidth);
-					modifiedLines.add(idx);
 				}
 			}
 		}
 
-		// Final verification: ensure no composited line exceeds terminal width
-		// This is a belt-and-suspenders safeguard - compositeLineAt should already
-		// guarantee this, but we verify here to prevent crashes from any edge cases
-		// Only check lines that were actually modified (optimization)
-		for (const idx of modifiedLines) {
-			const lineWidth = visibleWidth(result[idx]);
-			if (lineWidth > termWidth) {
-				result[idx] = sliceByColumn(result[idx], 0, termWidth, true);
-			}
-		}
-
 		return result;
 	}
 
diff --git a/packages/tui/test/overlay-non-capturing.test.ts b/packages/tui/test/overlay-non-capturing.test.ts
new file mode 100644
index 00000000..628f3971
--- /dev/null
+++ b/packages/tui/test/overlay-non-capturing.test.ts
@@ -0,0 +1,609 @@
+import assert from "node:assert";
+import { describe, it } from "node:test";
+import type { Component, Focusable } from "../src/tui.js";
+import { TUI } from "../src/tui.js";
+import { VirtualTerminal } from "./virtual-terminal.js";
+
+class StaticOverlay implements Component {
+	constructor(private lines: string[]) {}
+
+	render(): string[] {
+		return this.lines;
+	}
+
+	invalidate(): void {}
+}
+
+class EmptyContent implements Component {
+	render(): string[] {
+		return [];
+	}
+	invalidate(): void {}
+}
+
+class FocusableOverlay implements Component, Focusable {
+	focused = false;
+	inputs: string[] = [];
+
+	constructor(private lines: string[]) {}
+
+	handleInput(data: string): void {
+		this.inputs.push(data);
+	}
+
+	render(): string[] {
+		return this.lines;
+	}
+
+	invalidate(): void {}
+}
+
+async function renderAndFlush(tui: TUI, terminal: VirtualTerminal): Promise<void> {
+	tui.requestRender(true);
+	await new Promise<void>((resolve) => process.nextTick(resolve));
+	await terminal.flush();
+}
+
+describe("TUI overlay non-capturing", () => {
+	describe("focus management", () => {
+		it("non-capturing overlay preserves focus on creation", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				tui.showOverlay(overlay, { nonCapturing: true });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(overlay.focused, false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("focus() transfers focus to the overlay", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, false);
+				assert.strictEqual(overlay.focused, true);
+				assert.strictEqual(handle.isFocused(), true);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("unfocus() restores previous focus", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.focus();
+				handle.unfocus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(overlay.focused, false);
+				assert.strictEqual(handle.isFocused(), false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("setHidden(false) on non-capturing overlay does not auto-focus", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.setHidden(true);
+				handle.setHidden(false);
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(overlay.focused, false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("hide() when overlay is not focused does not change focus", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.hide();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("hide() when focused restores focus correctly", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.focus();
+				handle.hide();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(overlay.focused, false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("capturing overlay removed with non-capturing below restores focus to editor", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const nonCapturing = new FocusableOverlay(["NC"]);
+			const capturing = new FocusableOverlay(["CAP"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				tui.showOverlay(nonCapturing, { nonCapturing: true });
+				const handle = tui.showOverlay(capturing);
+				assert.strictEqual(capturing.focused, true);
+				handle.hide();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(nonCapturing.focused, false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("sub-overlay cleanup then hideOverlay restores focus and input to editor", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const timer = new FocusableOverlay(["TIMER"]);
+			const controller = new FocusableOverlay(["CTRL"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const timerHandle = tui.showOverlay(timer, { nonCapturing: true });
+				tui.showOverlay(controller);
+				assert.strictEqual(controller.focused, true);
+				assert.strictEqual(editor.focused, false);
+				timerHandle.hide();
+				tui.hideOverlay();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(controller.focused, false);
+				assert.strictEqual(timer.focused, false);
+				terminal.sendInput("x");
+				await renderAndFlush(tui, terminal);
+				assert.deepStrictEqual(editor.inputs, ["x"]);
+				assert.deepStrictEqual(controller.inputs, []);
+				assert.deepStrictEqual(timer.inputs, []);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("microtask-deferred sub-overlay pattern (showExtensionCustom simulation) restores focus", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const timer = new FocusableOverlay(["TIMER"]);
+			const controller = new FocusableOverlay(["CTRL"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				// Simulate showExtensionCustom: factory creates timer synchronously,
+				// then .then() pushes controller as a microtask
+				let timerHandle: ReturnType<typeof tui.showOverlay>;
+				let doneFn: () => void;
+
+				const overlayPromise = new Promise<void>((resolve) => {
+					doneFn = () => {
+						timerHandle.hide();
+						tui.hideOverlay();
+						resolve();
+					};
+					// Factory runs synchronously: creates timer sub-overlay
+					timerHandle = tui.showOverlay(timer, { nonCapturing: true });
+					// .then() runs as microtask — same as showExtensionCustom
+					Promise.resolve(controller).then((c) => {
+						tui.showOverlay(c);
+					});
+				});
+
+				// Wait for .then() microtask and renders to settle
+				await new Promise<void>((r) => setTimeout(r, 50));
+				await renderAndFlush(tui, terminal);
+
+				assert.strictEqual(controller.focused, true);
+				assert.strictEqual(editor.focused, false);
+
+				// Simulate Esc: cleanup + close (from inside handleInput)
+				doneFn!();
+				// Now await the promise (simulating showExtensionCustom resolving)
+				await overlayPromise;
+				await renderAndFlush(tui, terminal);
+
+				assert.strictEqual(editor.focused, true, "editor should regain focus");
+				assert.strictEqual(controller.focused, false);
+				assert.strictEqual(timer.focused, false);
+
+				terminal.sendInput("x");
+				await renderAndFlush(tui, terminal);
+				assert.deepStrictEqual(editor.inputs, ["x"], "editor should receive input after close");
+				assert.deepStrictEqual(controller.inputs, []);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("handleInput redirection skips non-capturing overlays when focused overlay becomes invisible", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const fallbackCapturing = new FocusableOverlay(["FALLBACK"]);
+			const nonCapturing = new FocusableOverlay(["NC"]);
+			const primary = new FocusableOverlay(["PRIMARY"]);
+			let isVisible = true;
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				tui.showOverlay(fallbackCapturing);
+				tui.showOverlay(nonCapturing, { nonCapturing: true });
+				tui.showOverlay(primary, { visible: () => isVisible });
+				assert.strictEqual(primary.focused, true);
+				isVisible = false;
+				terminal.sendInput("x");
+				await renderAndFlush(tui, terminal);
+				assert.deepStrictEqual(primary.inputs, []);
+				assert.deepStrictEqual(nonCapturing.inputs, []);
+				assert.deepStrictEqual(fallbackCapturing.inputs, ["x"]);
+				assert.strictEqual(fallbackCapturing.focused, true);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("hideOverlay() does not reassign focus when topmost overlay is non-capturing", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const capturing = new FocusableOverlay(["CAP"]);
+			const nonCapturing = new FocusableOverlay(["NC"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				tui.showOverlay(capturing);
+				tui.showOverlay(nonCapturing, { nonCapturing: true });
+				assert.strictEqual(capturing.focused, true);
+				tui.hideOverlay();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(capturing.focused, true);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("multiple capturing and non-capturing overlays restore focus through removals", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const c1 = new FocusableOverlay(["C1"]);
+			const n1 = new FocusableOverlay(["N1"]);
+			const c2 = new FocusableOverlay(["C2"]);
+			const n2 = new FocusableOverlay(["N2"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const c1Handle = tui.showOverlay(c1);
+				tui.showOverlay(n1, { nonCapturing: true });
+				const c2Handle = tui.showOverlay(c2);
+				tui.showOverlay(n2, { nonCapturing: true });
+				assert.strictEqual(c2.focused, true);
+				c2Handle.hide();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(c1.focused, true);
+				c1Handle.hide();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("capturing overlay unfocus() on topmost capturing overlay falls back to preFocus", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const capturing = new FocusableOverlay(["CAP"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(capturing);
+				assert.strictEqual(capturing.focused, true);
+				handle.unfocus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(capturing.focused, false);
+			} finally {
+				tui.stop();
+			}
+		});
+	});
+
+	describe("no-op guards", () => {
+		it("focus() on hidden overlay is a no-op", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.setHidden(true);
+				handle.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(handle.isFocused(), false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("focus() after hide() is a no-op", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.hide();
+				handle.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(handle.isFocused(), false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("unfocus() when overlay does not have focus is a no-op", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay, { nonCapturing: true });
+				handle.unfocus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(overlay.focused, false);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("unfocus() with null preFocus clears focus and does not route input back to overlay", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const overlay = new FocusableOverlay(["OVERLAY"]);
+			tui.addChild(new EmptyContent());
+			tui.start();
+			try {
+				const handle = tui.showOverlay(overlay);
+				assert.strictEqual(overlay.focused, true);
+				handle.unfocus();
+				assert.strictEqual(overlay.focused, false);
+				terminal.sendInput("x");
+				await renderAndFlush(tui, terminal);
+				assert.deepStrictEqual(overlay.inputs, []);
+				assert.strictEqual(handle.isFocused(), false);
+			} finally {
+				tui.stop();
+			}
+		});
+	});
+
+	describe("focus cycle prevention", () => {
+		it("toggle focus between non-capturing overlays then unfocus returns to editor", async () => {
+			const terminal = new VirtualTerminal(80, 24);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			const a = new FocusableOverlay(["A"]);
+			const b = new FocusableOverlay(["B"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const aHandle = tui.showOverlay(a, { nonCapturing: true });
+				const bHandle = tui.showOverlay(b, { nonCapturing: true });
+				aHandle.focus();
+				bHandle.focus();
+				aHandle.focus();
+				aHandle.unfocus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(editor.focused, true);
+				assert.strictEqual(a.focused, false);
+				assert.strictEqual(b.focused, false);
+			} finally {
+				tui.stop();
+			}
+		});
+	});
+
+	describe("rendering order", () => {
+		it("focus() on already-focused overlay bumps visual order", async () => {
+			const terminal = new VirtualTerminal(20, 6);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const aHandle = tui.showOverlay(new StaticOverlay(["A"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				tui.showOverlay(new StaticOverlay(["B"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				aHandle.focus();
+				tui.showOverlay(new StaticOverlay(["C"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "C");
+				aHandle.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "A");
+				assert.strictEqual(aHandle.isFocused(), true);
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("default rendering order for overlapping overlays follows creation order", async () => {
+			const terminal = new VirtualTerminal(20, 6);
+			const tui = new TUI(terminal);
+			tui.addChild(new EmptyContent());
+			tui.start();
+			try {
+				tui.showOverlay(new StaticOverlay(["A"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				tui.showOverlay(new StaticOverlay(["B"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "B");
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("focus() on lower overlay renders it on top", async () => {
+			const terminal = new VirtualTerminal(20, 6);
+			const tui = new TUI(terminal);
+			tui.addChild(new EmptyContent());
+			tui.start();
+			try {
+				const lower = tui.showOverlay(new StaticOverlay(["A"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				tui.showOverlay(new StaticOverlay(["B"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "B");
+				lower.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "A");
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("focusing middle overlay places it on top while preserving others relative order", async () => {
+			const terminal = new VirtualTerminal(20, 6);
+			const tui = new TUI(terminal);
+			tui.addChild(new EmptyContent());
+			tui.start();
+			try {
+				tui.showOverlay(new StaticOverlay(["A"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				const middle = tui.showOverlay(new StaticOverlay(["B"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				const top = tui.showOverlay(new StaticOverlay(["C"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "C");
+				middle.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "B");
+				middle.hide();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "C");
+				top.hide();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "A");
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("capturing overlay hidden and shown again renders on top after unhide", async () => {
+			const terminal = new VirtualTerminal(20, 6);
+			const tui = new TUI(terminal);
+			tui.addChild(new EmptyContent());
+			tui.start();
+			try {
+				tui.showOverlay(new StaticOverlay(["A"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				const capturing = tui.showOverlay(new StaticOverlay(["B"]), { row: 0, col: 0, width: 1 });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "B");
+				capturing.setHidden(true);
+				tui.showOverlay(new StaticOverlay(["C"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "C");
+				capturing.setHidden(false);
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "B");
+			} finally {
+				tui.stop();
+			}
+		});
+
+		it("unfocus() does not change visual order until another overlay is focused", async () => {
+			const terminal = new VirtualTerminal(20, 6);
+			const tui = new TUI(terminal);
+			const editor = new FocusableOverlay(["EDITOR"]);
+			tui.addChild(new EmptyContent());
+			tui.setFocus(editor);
+			tui.start();
+			try {
+				const a = tui.showOverlay(new StaticOverlay(["A"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				const b = tui.showOverlay(new StaticOverlay(["B"]), { row: 0, col: 0, width: 1, nonCapturing: true });
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "B");
+				a.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "A");
+				a.unfocus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "A");
+				b.focus();
+				await renderAndFlush(tui, terminal);
+				assert.strictEqual(terminal.getViewport()[0]?.charAt(0), "B");
+			} finally {
+				tui.stop();
+			}
+		});
+	});
+});