diff --git a/apps/stage-tamagotchi/src/renderer/pages/index.vue b/apps/stage-tamagotchi/src/renderer/pages/index.vue
index d1f1b1b73..76646f1c5 100644
--- a/apps/stage-tamagotchi/src/renderer/pages/index.vue
+++ b/apps/stage-tamagotchi/src/renderer/pages/index.vue
@@ -41,6 +41,7 @@ import { modelSettingsRuntimeSnapshotChannelName } from '../../shared/model-sett
 import { useChatSyncStore } from '../stores/chat-sync'
 import { useControlsIslandStore } from '../stores/controls-island'
 import { useStageWindowLifecycleStore } from '../stores/stage-window-lifecycle'
+import { resolveFadeOnHoverInteraction } from '../utils/fade-on-hover'
 import { shouldSampleStageTransparency } from '../utils/stage-three-transparency'
 import { createVoiceInputInteractionLifecycle } from '../utils/voice-input-lifecycle'
 import {
@@ -139,10 +140,6 @@ const isAroundWindowBorderFor250Ms = refDebounced(isAroundWindowBorder, 250)
 
 const setIgnoreMouseEvents = useElectronEventaInvoke(electron.window.setIgnoreMouseEvents)
 
-const { pause, resume } = watch(isTransparent, (transparent) => {
-  shouldFadeOnCursorWithin.value = fadeOnHoverEnabled.value && !transparent
-}, { immediate: true })
-
 const hearingDialogOpen = computed(() => controlsIslandRef.value?.hearingDialogOpen ?? false)
 
 const modelSettingsRuntimeSnapshot = computed<ModelSettingsRuntimeSnapshot>(() => {
@@ -236,12 +233,29 @@ const modelSettingsRuntimeSnapshot = computed<ModelSettingsRuntimeSnapshot>(() =
   })
 })
 
-watch([isOutsideFor250Ms, isOutsideStatusIslandFor250Ms, isAroundWindowBorderFor250Ms, isOutsideWindow, isTransparent, hearingDialogOpen, fadeOnHoverEnabled, stagePaused], () => {
+/**
+ * Keeps the rendered fade state and Electron click-through state synchronized.
+ *
+ * Triggering workflow:
+ *
+ * {@link watch}
+ *   -> `fade-on-hover reactive state change`
+ *     -> {@link handleFadeOnHoverInteractionChange}
+ *
+ * Upstream:
+ * - {@link isOutsideFor250Ms}, {@link isOutsideStatusIslandFor250Ms}, and {@link isAroundWindowBorderFor250Ms}
+ * - {@link isOutsideWindow}, {@link isTransparent}, and {@link isTransparentForMouseEvents}
+ * - {@link hearingDialogOpen}, {@link fadeOnHoverEnabled}, and {@link stagePaused}
+ *
+ * Downstream:
+ * - {@link resolveFadeOnHoverInteraction}
+ * - {@link setIgnoreMouseEvents}
+ */
+function handleFadeOnHoverInteractionChange() {
   if (stagePaused.value) {
     isIgnoringMouseEvents.value = false
     shouldFadeOnCursorWithin.value = false
     setIgnoreMouseEvents([false, { forward: true }])
-    pause()
     return
   }
 
@@ -250,7 +264,6 @@ watch([isOutsideFor250Ms, isOutsideStatusIslandFor250Ms, isAroundWindowBorderFor
     isIgnoringMouseEvents.value = false
     shouldFadeOnCursorWithin.value = false
     setIgnoreMouseEvents([false, { forward: true }])
-    pause()
     return
   }
 
@@ -262,23 +275,26 @@ watch([isOutsideFor250Ms, isOutsideStatusIslandFor250Ms, isAroundWindowBorderFor
     isIgnoringMouseEvents.value = false
     shouldFadeOnCursorWithin.value = false
     setIgnoreMouseEvents([false, { forward: true }])
-    pause()
   }
   else {
-    const fadeEnabled = fadeOnHoverEnabled.value
-    // Keep visible model pixels interactive; only the exact transparent pixel under the cursor
-    // should pass clicks through. The fuzzy transparency value above is intentionally reserved
-    // for fade stability near model edges.
-    const shouldIgnoreMouseEvents = fadeEnabled && isTransparentForMouseEvents.value
-    isIgnoringMouseEvents.value = shouldIgnoreMouseEvents
-    shouldFadeOnCursorWithin.value = fadeEnabled && !isOutsideWindow.value && !isTransparent.value
-    setIgnoreMouseEvents([shouldIgnoreMouseEvents, { forward: true }])
-    if (fadeEnabled)
-      resume()
-    else
-      pause()
+    const interaction = resolveFadeOnHoverInteraction({
+      cursorInsideWindow: !isOutsideWindow.value,
+      enabled: fadeOnHoverEnabled.value,
+      transparentForFade: isTransparent.value,
+      transparentForPointer: isTransparentForMouseEvents.value,
+    })
+
+    isIgnoringMouseEvents.value = interaction.ignoreMouseEvents
+    shouldFadeOnCursorWithin.value = interaction.fadeStage
+    setIgnoreMouseEvents([interaction.ignoreMouseEvents, { forward: true }])
   }
-})
+}
+
+watch(
+  [isOutsideFor250Ms, isOutsideStatusIslandFor250Ms, isAroundWindowBorderFor250Ms, isOutsideWindow, isTransparent, isTransparentForMouseEvents, hearingDialogOpen, fadeOnHoverEnabled, stagePaused],
+  handleFadeOnHoverInteractionChange,
+  { immediate: true },
+)
 
 // Emit runtime snapshot on change and on request from settings panel
 /**
diff --git a/apps/stage-tamagotchi/src/renderer/utils/fade-on-hover.test.ts b/apps/stage-tamagotchi/src/renderer/utils/fade-on-hover.test.ts
new file mode 100644
index 000000000..395db0051
--- /dev/null
+++ b/apps/stage-tamagotchi/src/renderer/utils/fade-on-hover.test.ts
@@ -0,0 +1,41 @@
+import { describe, expect, it } from 'vitest'
+
+import { resolveFadeOnHoverInteraction } from './fade-on-hover'
+
+describe('fade on hover interaction', () => {
+  it('lets pointer input reach the underlying app when a visible model fades', () => {
+    const interaction = resolveFadeOnHoverInteraction({
+      cursorInsideWindow: true,
+      enabled: true,
+      transparentForFade: false,
+      transparentForPointer: false,
+    })
+
+    expect(interaction.fadeStage).toBe(true)
+    expect(interaction.ignoreMouseEvents).toBe(true)
+  })
+
+  it('keeps an unfaded transparent stage click-through', () => {
+    const interaction = resolveFadeOnHoverInteraction({
+      cursorInsideWindow: true,
+      enabled: true,
+      transparentForFade: true,
+      transparentForPointer: true,
+    })
+
+    expect(interaction.fadeStage).toBe(false)
+    expect(interaction.ignoreMouseEvents).toBe(true)
+  })
+
+  it('keeps the stage visible and interactive when Auto Hide is disabled', () => {
+    const interaction = resolveFadeOnHoverInteraction({
+      cursorInsideWindow: true,
+      enabled: false,
+      transparentForFade: false,
+      transparentForPointer: false,
+    })
+
+    expect(interaction.fadeStage).toBe(false)
+    expect(interaction.ignoreMouseEvents).toBe(false)
+  })
+})
diff --git a/apps/stage-tamagotchi/src/renderer/utils/fade-on-hover.ts b/apps/stage-tamagotchi/src/renderer/utils/fade-on-hover.ts
new file mode 100644
index 000000000..786d4baca
--- /dev/null
+++ b/apps/stage-tamagotchi/src/renderer/utils/fade-on-hover.ts
@@ -0,0 +1,28 @@
+/**
+ * Resolves the visual and native input behavior for Auto Hide outside interactive controls.
+ * A faded stage must ignore mouse events so its invisible pixels cannot block the app below.
+ */
+export function resolveFadeOnHoverInteraction(params: {
+  cursorInsideWindow: boolean
+  enabled: boolean
+  transparentForFade: boolean
+  transparentForPointer: boolean
+}) {
+  const fadeStage = params.enabled
+    && params.cursorInsideWindow
+    && !params.transparentForFade
+
+  // NOTICE:
+  // Fade detection deliberately uses a sampled region to avoid flickering around model edges,
+  // while native pointer hit-testing uses the exact pixel to keep visible model pixels interactive.
+  // Once the whole stage fades, that exact pixel can still report the now-invisible model as opaque,
+  // so the fade decision must also enable click-through. This preserves the Auto Hide contract that
+  // invisible stage content cannot block the application below it.
+  // Source/context: `apps/stage-tamagotchi/src/renderer/pages/index.vue` transparency samplers.
+  // Removal condition: the visual fade no longer covers pixels considered interactive by hit-testing.
+  return {
+    fadeStage,
+    ignoreMouseEvents: params.enabled
+      && (fadeStage || params.transparentForPointer),
+  }
+}