diff --git a/crates/goose-cli/src/commands/update.rs b/crates/goose-cli/src/commands/update.rs
index 158932f91719..4ee520323b04 100644
--- a/crates/goose-cli/src/commands/update.rs
+++ b/crates/goose-cli/src/commands/update.rs
@@ -26,6 +26,7 @@ pub fn update(canary: bool, reconfigure: bool) -> Result<()> {
         .arg(shell_str)
         .env("CANARY", canary.to_string())
         .env("CONFIGURE", reconfigure.to_string())
+        .env("GOOSE_TERMINAL", "1")
         .spawn()?;
 
     update.wait_with_output()?;
diff --git a/crates/goose-mcp/src/computercontroller/mod.rs b/crates/goose-mcp/src/computercontroller/mod.rs
index 934ca24d3891..19c172552134 100644
--- a/crates/goose-mcp/src/computercontroller/mod.rs
+++ b/crates/goose-mcp/src/computercontroller/mod.rs
@@ -749,6 +749,7 @@ impl ComputerControllerRouter {
                     .arg("-NonInteractive")
                     .arg("-File")
                     .arg(&command)
+                    .env("GOOSE_TERMINAL", "1")
                     .output()
                     .await
                     .map_err(|e| {
@@ -758,6 +759,7 @@ impl ComputerControllerRouter {
             _ => Command::new(shell)
                 .arg(shell_arg)
                 .arg(&command)
+                .env("GOOSE_TERMINAL", "1")
                 .output()
                 .await
                 .map_err(|e| ToolError::ExecutionError(format!("Failed to run script: {}", e)))?,
diff --git a/crates/goose-mcp/src/computercontroller/platform/windows.rs b/crates/goose-mcp/src/computercontroller/platform/windows.rs
index d2c386f6a561..8ea17f461c38 100644
--- a/crates/goose-mcp/src/computercontroller/platform/windows.rs
+++ b/crates/goose-mcp/src/computercontroller/platform/windows.rs
@@ -11,6 +11,7 @@ impl SystemAutomation for WindowsAutomation {
             .arg("-NonInteractive")
             .arg("-Command")
             .arg(script)
+            .env("GOOSE_TERMINAL", "1")
             .output()?;
 
         Ok(String::from_utf8_lossy(&output.stdout).into_owned())
diff --git a/crates/goose-mcp/src/developer/mod.rs b/crates/goose-mcp/src/developer/mod.rs
index 7bea5c5a045c..9efed3afa596 100644
--- a/crates/goose-mcp/src/developer/mod.rs
+++ b/crates/goose-mcp/src/developer/mod.rs
@@ -636,6 +636,7 @@ impl DeveloperRouter {
             .stderr(Stdio::piped())
             .stdin(Stdio::null())
             .kill_on_drop(true)
+            .env("GOOSE_TERMINAL", "1")
             .args(&shell_config.args)
             .arg(command)
             .spawn()
diff --git a/crates/goose/src/agents/retry.rs b/crates/goose/src/agents/retry.rs
index ac0e374da1fe..38bf020548a3 100644
--- a/crates/goose/src/agents/retry.rs
+++ b/crates/goose/src/agents/retry.rs
@@ -231,10 +231,12 @@ pub async fn execute_shell_command(
         let mut cmd = if cfg!(target_os = "windows") {
             let mut cmd = Command::new("cmd");
             cmd.args(["/C", command]);
+            cmd.env("GOOSE_TERMINAL", "1");
             cmd
         } else {
             let mut cmd = Command::new("sh");
             cmd.args(["-c", command]);
+            cmd.env("GOOSE_TERMINAL", "1");
             cmd
         };