diff --git a/src/bun.js/bindings/c-bindings.cpp b/src/bun.js/bindings/c-bindings.cpp
index 71c3e46c79..8d12608f3e 100644
--- a/src/bun.js/bindings/c-bindings.cpp
+++ b/src/bun.js/bindings/c-bindings.cpp
@@ -394,6 +394,22 @@ extern "C" void bun_restore_stdio()
 
 #if !OS(WINDOWS)
 
+    // Restore cursor visibility on TTY before exiting.
+    // Many CLI applications (like Ink) hide the cursor during operation and rely on
+    // cleanup handlers to restore it. If the process exits before the cursor-show
+    // escape sequence is flushed, the cursor remains invisible in the terminal.
+    // Writing the cursor-show sequence here ensures the cursor is always visible
+    // after Bun exits, regardless of how the process terminates.
+    // See: https://github.com/oven-sh/bun/issues/26642
+    if (bun_stdio_tty[STDOUT_FILENO]) {
+        // Show cursor: CSI ? 25 h
+        const char show_cursor[] = "\x1b[?25h";
+        ssize_t ret;
+        do {
+            ret = write(STDOUT_FILENO, show_cursor, sizeof(show_cursor) - 1);
+        } while (ret == -1 && errno == EINTR);
+    }
+
     // restore stdio
     for (int32_t fd = 0; fd < 3; fd++) {
         if (!bun_stdio_tty[fd])
diff --git a/test/regression/issue/26642.test.ts b/test/regression/issue/26642.test.ts
new file mode 100644
index 0000000000..3e1f592f18
--- /dev/null
+++ b/test/regression/issue/26642.test.ts
@@ -0,0 +1,41 @@
+import { expect, test } from "bun:test";
+import { bunEnv, bunExe, isMacOS, isWindows } from "harness";
+
+// Test that cursor visibility is restored on process exit when stdout is a TTY.
+// This is needed because CLI applications like Ink hide the cursor during operation
+// and rely on cleanup handlers to restore it. If the process exits before the
+// cursor-show escape sequence is flushed, the cursor remains invisible.
+// See: https://github.com/oven-sh/bun/issues/26642
+
+// Skip on Windows and non-macOS - the script command behavior varies and CI
+// environments often don't provide proper PTY support. The actual fix is
+// most critical for macOS terminals where users reported the issue.
+test.skipIf(isWindows || !isMacOS)("cursor visibility is restored on exit when stdout is TTY", async () => {
+  // Check if script command is available (needed to create a PTY)
+  const hasScript = Bun.which("script");
+  if (!hasScript) {
+    console.log("Skipping test: requires 'script' command for PTY simulation");
+    return;
+  }
+
+  // Script that just exits immediately - cursor restore should happen automatically
+  const testScript = `process.exit(0);`;
+
+  // Use script command to provide a PTY environment (macOS syntax)
+  const scriptCmd = ["script", "-q", "/dev/null", bunExe(), "-e", testScript];
+
+  await using proc = Bun.spawn({
+    cmd: scriptCmd,
+    env: bunEnv,
+    stdout: "pipe",
+    stderr: "pipe",
+  });
+
+  const [stdout, stderr, exitCode] = await Promise.all([proc.stdout.text(), proc.stderr.text(), proc.exited]);
+
+  // The cursor-show escape sequence is \x1b[?25h
+  // It should be present in stdout when running in a TTY
+  const cursorShow = "\x1b[?25h";
+  expect(stdout).toContain(cursorShow);
+  expect(exitCode).toBe(0);
+});