diff --git a/docs/cli/settings.md b/docs/cli/settings.md
index ba6e0ed3161..68af8fa795b 100644
--- a/docs/cli/settings.md
+++ b/docs/cli/settings.md
@@ -61,7 +61,7 @@ they appear in the UI.
 | Show Home Directory Warning          | `ui.showHomeDirectoryWarning`          | Show a warning when running Gemini CLI in the home directory.                                                                                                     | `true`  |
 | Show Compatibility Warnings          | `ui.showCompatibilityWarnings`         | Show warnings about terminal or OS compatibility issues.                                                                                                          | `true`  |
 | Hide Tips                            | `ui.hideTips`                          | Hide helpful tips in the UI                                                                                                                                       | `false` |
-| Escape Pasted @ Symbols              | `ui.escapePastedAtSymbols`             | When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion.                                                                         | `false` |
+| Escape Pasted @ Symbols              | `ui.escapePastedAtSymbols`             | When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion. Type @path manually to include a file.                                                                         | `true`  |
 | Show Shortcuts Hint                  | `ui.showShortcutsHint`                 | Show the "? for shortcuts" hint above the input.                                                                                                                  | `true`  |
 | Compact Tool Output                  | `ui.compactToolOutput`                 | Display tool outputs (like directory listings and file reads) in a compact, structured format.                                                                    | `true`  |
 | Hide Banner                          | `ui.hideBanner`                        | Hide the application banner                                                                                                                                       | `false` |
diff --git a/docs/reference/configuration.md b/docs/reference/configuration.md
index 61d158ded90..c6396ca51ae 100644
--- a/docs/reference/configuration.md
+++ b/docs/reference/configuration.md
@@ -322,8 +322,8 @@ their corresponding top-level category object in your `settings.json` file.
 - **`ui.escapePastedAtSymbols`** (boolean):
 
   - **Description:** When enabled, @ symbols in pasted text are escaped to
-    prevent unintended @path expansion.
-  - **Default:** `false`
+    prevent unintended @path expansion. Type @path manually to include a file.
+  - **Default:** `true`
 
 - **`ui.showShortcutsHint`** (boolean):
 
diff --git a/packages/cli/src/config/settingsSchema.test.ts b/packages/cli/src/config/settingsSchema.test.ts
index 914ef21a64e..4aae1d2dcd2 100644
--- a/packages/cli/src/config/settingsSchema.test.ts
+++ b/packages/cli/src/config/settingsSchema.test.ts
@@ -104,6 +104,12 @@ describe('SettingsSchema', () => {
       expect(definition?.options?.map((o) => o.value)).toEqual(['low', 'full']);
     });
 
+    it('should escape @ symbols in pasted text by default', () => {
+      expect(
+        getSettingsSchema().ui?.properties?.escapePastedAtSymbols?.default,
+      ).toBe(true);
+    });
+
     it('should have checkpointing nested properties', () => {
       expect(
         getSettingsSchema().general?.properties?.checkpointing.properties
diff --git a/packages/cli/src/config/settingsSchema.ts b/packages/cli/src/config/settingsSchema.ts
index 0b480252240..605f50d8e70 100644
--- a/packages/cli/src/config/settingsSchema.ts
+++ b/packages/cli/src/config/settingsSchema.ts
@@ -619,9 +619,9 @@ const SETTINGS_SCHEMA = {
         label: 'Escape Pasted @ Symbols',
         category: 'UI',
         requiresRestart: false,
-        default: false,
+        default: true,
         description:
-          'When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion.',
+          'When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion. Type @path manually to include a file.',
         showInDialog: true,
       },
       showShortcutsHint: {
diff --git a/packages/cli/src/ui/components/InputPrompt.test.tsx b/packages/cli/src/ui/components/InputPrompt.test.tsx
index a2b0788f939..f39fc12ba4e 100644
--- a/packages/cli/src/ui/components/InputPrompt.test.tsx
+++ b/packages/cli/src/ui/components/InputPrompt.test.tsx
@@ -1017,13 +1017,17 @@ describe('InputPrompt', () => {
   });
 
   describe('clipboard text paste', () => {
-    it('should insert text from clipboard on Ctrl+V', async () => {
+    it('should escape @ symbols in clipboard text on Ctrl+V', async () => {
       vi.mocked(clipboardUtils.clipboardHasImage).mockResolvedValue(false);
-      vi.mocked(clipboardy.read).mockResolvedValue('pasted text');
+      vi.mocked(clipboardy.read).mockResolvedValue(
+        'user@host:~/project$ cat @id_rsa',
+      );
       vi.mocked(mockBuffer.replaceRangeByOffset).mockClear();
+      const settings = createMockSettings();
 
       const { stdin, unmount } = await renderWithProviders(
         <TestInputPrompt {...props} />,
+        { settings },
       );
 
       await act(async () => {
@@ -1033,13 +1037,35 @@ describe('InputPrompt', () => {
       await waitFor(() => {
         expect(clipboardy.read).toHaveBeenCalled();
         expect(mockBuffer.insert).toHaveBeenCalledWith(
-          'pasted text',
+          'user\\@host:~/project$ cat \\@id_rsa',
           expect.objectContaining({ paste: true }),
         );
       });
       unmount();
     });
 
+    it('should escape @ symbols in bracketed terminal paste', async () => {
+      const settings = createMockSettings();
+      const { stdin, unmount } = await renderWithProviders(
+        <TestInputPrompt {...props} />,
+        { settings },
+      );
+
+      await act(async () => {
+        stdin.write('\x1B[200~user@host:~/project$ cat @id_rsa\x1B[201~');
+      });
+
+      await waitFor(() => {
+        expect(mockBuffer.handleInput).toHaveBeenCalledWith(
+          expect.objectContaining({
+            name: 'paste',
+            sequence: 'user\\@host:~/project$ cat \\@id_rsa',
+          }),
+        );
+      });
+      unmount();
+    });
+
     it('should use OSC 52 when useOSC52Paste setting is enabled', async () => {
       vi.mocked(clipboardUtils.clipboardHasImage).mockResolvedValue(false);
       const settings = createMockSettings({
diff --git a/schemas/settings.schema.json b/schemas/settings.schema.json
index c912b86ae71..37a0b7379de 100644
--- a/schemas/settings.schema.json
+++ b/schemas/settings.schema.json
@@ -366,9 +366,9 @@
         },
         "escapePastedAtSymbols": {
           "title": "Escape Pasted @ Symbols",
-          "description": "When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion.",
-          "markdownDescription": "When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion.\n\n- Category: `UI`\n- Requires restart: `no`\n- Default: `false`",
-          "default": false,
+          "description": "When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion. Type @path manually to include a file.",
+          "markdownDescription": "When enabled, @ symbols in pasted text are escaped to prevent unintended @path expansion. Type @path manually to include a file.\n\n- Category: `UI`\n- Requires restart: `no`\n- Default: `true`",
+          "default": true,
           "type": "boolean"
         },
         "showShortcutsHint": {