diff --git a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/CopyOnSelectionHandler.kt b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/CopyOnSelectionHandler.kt
index a4e09dc58f93..c90e73985dc4 100644
--- a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/CopyOnSelectionHandler.kt
+++ b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/CopyOnSelectionHandler.kt
@@ -43,7 +43,7 @@ internal class CopyOnSelectionHandler private constructor(private val settings:
       // Only perform copying if the editor is focused.
       // In most cases it is, but if the selection was updated through the API it may not be the case.
       if (!settings.copyOnSelect() || e.editor?.contentComponent?.isFocusOwner != true) return
-      val text = e.editor.selectionModel.selectedText ?: return
+      val text = e.editor.selectionModel.getSelectedText(true) ?: return
       copy(text)
     }
   }
diff --git a/plugins/terminal/tests/src/com/intellij/terminal/tests/reworked/frontend/TerminalCopyOnSelectionTest.kt b/plugins/terminal/tests/src/com/intellij/terminal/tests/reworked/frontend/TerminalCopyOnSelectionTest.kt
new file mode 100644
index 000000000000..a4da5120f9b1
--- /dev/null
+++ b/plugins/terminal/tests/src/com/intellij/terminal/tests/reworked/frontend/TerminalCopyOnSelectionTest.kt
@@ -0,0 +1,90 @@
+package com.intellij.terminal.tests.reworked.frontend
+
+import com.intellij.openapi.editor.Editor
+import com.intellij.openapi.editor.LogicalPosition
+import com.intellij.openapi.ide.CopyPasteManager
+import com.intellij.openapi.util.Disposer
+import com.intellij.platform.util.coroutines.childScope
+import com.intellij.psi.PsiDocumentManager
+import com.intellij.terminal.JBTerminalSystemSettingsProviderBase
+import com.intellij.terminal.frontend.view.impl.TerminalEditorFactory
+import com.intellij.testFramework.fixtures.BasePlatformTestCase
+import kotlinx.coroutines.cancel
+import org.jetbrains.plugins.terminal.block.reworked.lang.TerminalOutputPsiFile
+import org.jetbrains.plugins.terminal.util.terminalProjectScope
+import org.junit.Test
+import org.junit.runner.RunWith
+import org.junit.runners.JUnit4
+import java.awt.Component
+import java.awt.KeyboardFocusManager
+import java.awt.datatransfer.DataFlavor
+import javax.swing.FocusManager
+
+@RunWith(JUnit4::class)
+internal class TerminalCopyOnSelectionTest : BasePlatformTestCase() {
+  private var defaultFocusManager: KeyboardFocusManager? = null
+
+  override fun setUp() {
+    super.setUp()
+    defaultFocusManager = KeyboardFocusManager.getCurrentKeyboardFocusManager()
+  }
+
+  override fun tearDown() {
+    try {
+      KeyboardFocusManager.setCurrentKeyboardFocusManager(defaultFocusManager)
+    }
+    catch (e: Throwable) {
+      addSuppressedException(e)
+    }
+    finally {
+      super.tearDown()
+    }
+  }
+
+  @Test
+  fun `copy on selection copies block selection from all selected lines`() {
+    val editor = createTerminalEditor()
+    editor.emitOnTerminal(
+      """
+      first
+      second
+      third
+      """.trimIndent()
+    )
+
+    editor.selectionModel.setBlockSelection(LogicalPosition(0, 1), LogicalPosition(2, 4))
+
+    val transferable = copiedTransferable()
+    assertNotNull(transferable)
+    assertEquals("irs\neco\nhir", transferable!!.getTransferData(DataFlavor.stringFlavor))
+  }
+
+  private fun createTerminalEditor(): Editor {
+    val scope = terminalProjectScope(project).childScope("TerminalOutputEditor").also {
+      Disposer.register(testRootDisposable) { it.cancel() }
+    }
+    val editor = TerminalEditorFactory.createOutputEditor(
+      project,
+      object : JBTerminalSystemSettingsProviderBase() {
+        override fun copyOnSelect(): Boolean = true
+      },
+      scope
+    )
+    // Copy on selection only works if terminal is the focus owner.
+    KeyboardFocusManager.setCurrentKeyboardFocusManager(
+      object : FocusManager() {
+        override fun getFocusOwner(): Component = editor.contentComponent
+      }
+    )
+    return editor
+  }
+
+  private fun Editor.emitOnTerminal(text: String) {
+    document.setText(text)
+    val psiFile = PsiDocumentManager.getInstance(this@TerminalCopyOnSelectionTest.project).getPsiFile(this.document) as TerminalOutputPsiFile
+    psiFile.charsSequence = this.document.immutableCharSequence
+  }
+
+  private fun copiedTransferable() =
+    CopyPasteManager.getInstance().let { it.systemSelectionContents ?: it.contents }
+}