diff --git a/Sources/AppDelegate.swift b/Sources/AppDelegate.swift
index e0cabdaa..155ecfc9 100644
--- a/Sources/AppDelegate.swift
+++ b/Sources/AppDelegate.swift
@@ -3372,6 +3372,39 @@ final class AppDelegate: NSObject, NSApplicationDelegate, UNUserNotificationCent
         return nil
     }
 
+    func refreshTerminalSurfacesAfterGhosttyConfigReload(source: String) {
+        var refreshedCount = 0
+        forEachTerminalPanel { terminalPanel in
+            terminalPanel.hostedView.reconcileGeometryNow()
+            terminalPanel.surface.forceRefresh()
+            refreshedCount += 1
+        }
+#if DEBUG
+        dlog("reload.config.surfaceRefresh source=\(source) count=\(refreshedCount)")
+#endif
+    }
+
+    private func forEachTerminalPanel(_ body: (TerminalPanel) -> Void) {
+        var seenManagers: Set<ObjectIdentifier> = []
+
+        func visitManager(_ manager: TabManager?) {
+            guard let manager else { return }
+            let managerId = ObjectIdentifier(manager)
+            guard seenManagers.insert(managerId).inserted else { return }
+            for workspace in manager.tabs {
+                for panel in workspace.panels.values {
+                    guard let terminalPanel = panel as? TerminalPanel else { continue }
+                    body(terminalPanel)
+                }
+            }
+        }
+
+        visitManager(tabManager)
+        for context in mainWindowContexts.values {
+            visitManager(context.tabManager)
+        }
+    }
+
     func focusMainWindow(windowId: UUID) -> Bool {
         guard let window = windowForMainWindowId(windowId) else { return false }
         if TerminalController.shouldSuppressSocketCommandActivation() {
diff --git a/Sources/GhosttyTerminalView.swift b/Sources/GhosttyTerminalView.swift
index bc7329cc..0a6b2489 100644
--- a/Sources/GhosttyTerminalView.swift
+++ b/Sources/GhosttyTerminalView.swift
@@ -660,6 +660,7 @@ class GhosttyApp {
     private func loadDefaultConfigFilesWithLegacyFallback(_ config: ghostty_config_t) {
         ghostty_config_load_default_files(config)
         loadLegacyGhosttyConfigIfNeeded(config)
+        ghostty_config_load_recursive_files(config)
         ghostty_config_finalize(config)
     }
 
@@ -767,6 +768,7 @@ class GhosttyApp {
             ghostty_app_update_config(app, config)
             lastAppearanceColorScheme = GhosttyConfig.currentColorSchemePreference()
             NotificationCenter.default.post(name: .ghosttyConfigDidReload, object: nil)
+            scheduleSurfaceRefreshAfterConfigurationReload(source: source)
             logThemeAction("reload end source=\(source) soft=\(soft) mode=soft")
             return
         }
@@ -791,9 +793,16 @@ class GhosttyApp {
         config = newConfig
         lastAppearanceColorScheme = GhosttyConfig.currentColorSchemePreference()
         NotificationCenter.default.post(name: .ghosttyConfigDidReload, object: nil)
+        scheduleSurfaceRefreshAfterConfigurationReload(source: source)
         logThemeAction("reload end source=\(source) soft=\(soft) mode=full")
     }
 
+    private func scheduleSurfaceRefreshAfterConfigurationReload(source: String) {
+        DispatchQueue.main.async {
+            AppDelegate.shared?.refreshTerminalSurfacesAfterGhosttyConfigReload(source: source)
+        }
+    }
+
     func synchronizeThemeWithAppearance(_ appearance: NSAppearance?, source: String) {
         let currentColorScheme = GhosttyConfig.currentColorSchemePreference(
             appAppearance: appearance ?? NSApp?.effectiveAppearance