diff --git a/src/testdir/dumps/Test_terminal_popup_1.dump b/src/testdir/dumps/Test_terminal_popup_1.dump
new file mode 100644
index 0000000..0628eb0
--- /dev/null
+++ b/src/testdir/dumps/Test_terminal_popup_1.dump
@@ -0,0 +1,15 @@
+|0+0&#ffffff0| @73
+|1| @73
+|2| @73
+|3| @12|╔+0#0000001#ffd7ff255|═@44|╗| +0#0000000#ffffff0@13
+|4| @12|║+0#0000001#ffd7ff255>s+0#0000000#ffffff0|o|m|e| |t|e|x|t| @35|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|5| @12|║+0#0000001#ffd7ff255|t+0#0000000#ffffff0|o| |e|d|i|t| @37|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|6| @12|║+0#0000001#ffd7ff255|i+0#0000000#ffffff0|n| |a| |p|o|p|u|p| |w|i|n|d|o|w| @27|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|7| @12|║+0#0000001#ffd7ff255|~+0#4040ff13#ffffff0| @43|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|8| @12|║+0#0000001#ffd7ff255|~+0#4040ff13#ffffff0| @43|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|9| @12|║+0#0000001#ffd7ff255|~+0#4040ff13#ffffff0| @43|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|1|0| @11|║+0#0000001#ffd7ff255|"+0#0000000#ffffff0|X|t|e|x|t|"| |3|L|,| |3|6|C| @11|1|,|1| @10|A|l@1| |║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|1@1| @11|╚+0#0000001#ffd7ff255|═@44|⇲| +0#0000000#ffffff0@13
+|1|2| @72
+|1|3| @72
+@57|0|,|0|-|1| @8|A|l@1| 
diff --git a/src/testdir/dumps/Test_terminal_popup_2.dump b/src/testdir/dumps/Test_terminal_popup_2.dump
new file mode 100644
index 0000000..478d0b4
--- /dev/null
+++ b/src/testdir/dumps/Test_terminal_popup_2.dump
@@ -0,0 +1,15 @@
+>0+0&#ffffff0| @73
+|1| @73
+|2| @73
+|3| @73
+|4| @73
+|5| @73
+|6| @73
+|7| @73
+|8| @73
+|9| @73
+|1|0| @72
+|1@1| @72
+|1|2| @72
+|1|3| @72
+|"|[|N|o| |N|a|m|e|]|"| |[|M|o|d|i|f|i|e|d|]| |2|0| |l|i|n|e|s| |-@1|5|%|-@1| @18|1|,|1| @10|T|o|p| 
diff --git a/src/testdir/dumps/Test_terminal_popup_3.dump b/src/testdir/dumps/Test_terminal_popup_3.dump
new file mode 100644
index 0000000..6a6e0eb
--- /dev/null
+++ b/src/testdir/dumps/Test_terminal_popup_3.dump
@@ -0,0 +1,15 @@
+|0+0&#ffffff0| @73
+|1| @73
+|2| @73
+|3| @12|╔+0&#a8a8a8255|═@44|╗| +0&#ffffff0@13
+|4| @12|║+0&#a8a8a8255|s|o|m|e| |t|e|x|t| @35|║| +0&#ffffff0@13
+|5| @12|║+0&#a8a8a8255|t|o| >e+0&#ffff4012|d|i|t| +0&#a8a8a8255@37|║| +0&#ffffff0@13
+|6| @12|║+0&#a8a8a8255|i|n| |a| |p|o|p|u|p| |w|i|n|d|o|w| @27|║| +0&#ffffff0@13
+|7| @12|║+0&#a8a8a8255|~+0#4040ff13&| @43|║+0#0000000&| +0&#ffffff0@13
+|8| @12|║+0&#a8a8a8255|~+0#4040ff13&| @43|║+0#0000000&| +0&#ffffff0@13
+|9| @12|║+0&#a8a8a8255|~+0#4040ff13&| @43|║+0#0000000&| +0&#ffffff0@13
+|1|0| @11|║+0&#a8a8a8255|/|e|d|i|t| @21|2|,|4| @10|A|l@1| |║| +0&#ffffff0@13
+|1@1| @11|╚+0&#a8a8a8255|═@44|⇲| +0&#ffffff0@13
+|1|2| @72
+|1|3| @72
+@57|0|,|0|-|1| @8|A|l@1| 
diff --git a/src/testdir/test_terminal.vim b/src/testdir/test_terminal.vim
index 431951b..00f0bfe 100644
--- a/src/testdir/test_terminal.vim
+++ b/src/testdir/test_terminal.vim
@@ -2321,3 +2321,44 @@
   unlet! g:called_bufnum
   unlet! g:called_arg
 endfunc
+
+func Test_terminal_in_popup()
+  CheckRunVimInTerminal
+
+  let text =<< trim END
+    some text
+    to edit
+    in a popup window
+  END
+  call writefile(text, 'Xtext')
+  let cmd = GetVimCommandClean()
+  let lines = [
+	\ 'call setline(1, range(20))',
+	\ 'hi PopTerm ctermbg=grey',
+	\ 'func OpenTerm(setColor)',
+	\ "  let buf = term_start('" .. cmd .. " Xtext', #{hidden: 1, term_finish: 'close'})",
+	\ '  let winid = popup_create(buf, #{minwidth: 45, minheight: 7, border: [], drag: 1, resize: 1})',
+	\ '  if a:setColor',
+	\ '    call win_execute(winid, "set wincolor=PopTerm")',
+	\ '  endif',
+	\ 'endfunc',
+	\ 'call OpenTerm(0)',
+	\ ]
+  call writefile(lines, 'XtermPopup')
+  let buf = RunVimInTerminal('-S XtermPopup', #{rows: 15})
+  call VerifyScreenDump(buf, 'Test_terminal_popup_1', {})
+
+  call term_sendkeys(buf, ":q\<CR>")
+  call VerifyScreenDump(buf, 'Test_terminal_popup_2', {})
+ 
+  call term_sendkeys(buf, ":call OpenTerm(1)\<CR>")
+  call term_sendkeys(buf, ":set hlsearch\<CR>")
+  call term_sendkeys(buf, "/edit\<CR>")
+  call VerifyScreenDump(buf, 'Test_terminal_popup_3', {})
+ 
+  call term_sendkeys(buf, ":q\<CR>")
+  call term_wait(buf, 50)  " wait for terminal to vanish
+
+  call StopVimInTerminal(buf)
+  call delete('XtermPopup')
+endfunc