diff --git a/app/streaming/input/input.cpp b/app/streaming/input/input.cpp
index ddeebec4..a2a109e7 100644
--- a/app/streaming/input/input.cpp
+++ b/app/streaming/input/input.cpp
@@ -293,6 +293,15 @@ void SdlInputHandler::raiseAllKeys()
     m_KeysDown.clear();
 }
 
+void SdlInputHandler::raiseAllMouseButtons()
+{
+    LiSendMouseButtonEvent(BUTTON_ACTION_RELEASE, BUTTON_LEFT);
+    LiSendMouseButtonEvent(BUTTON_ACTION_RELEASE, BUTTON_MIDDLE);
+    LiSendMouseButtonEvent(BUTTON_ACTION_RELEASE, BUTTON_RIGHT);
+    LiSendMouseButtonEvent(BUTTON_ACTION_RELEASE, BUTTON_X1);
+    LiSendMouseButtonEvent(BUTTON_ACTION_RELEASE, BUTTON_X2);
+}
+
 void SdlInputHandler::notifyMouseLeave()
 {
     // SDL on Windows doesn't send the mouse button up until the mouse re-enters the window
diff --git a/app/streaming/input/input.h b/app/streaming/input/input.h
index 050f150c..753ff275 100644
--- a/app/streaming/input/input.h
+++ b/app/streaming/input/input.h
@@ -134,6 +134,8 @@ public:
 
     void raiseAllKeys();
 
+    void raiseAllMouseButtons();
+
     void notifyMouseLeave();
 
     void notifyFocusLost();
diff --git a/app/streaming/session.cpp b/app/streaming/session.cpp
index aa18860f..69bf4d02 100644
--- a/app/streaming/session.cpp
+++ b/app/streaming/session.cpp
@@ -29,6 +29,7 @@
 #define SDL_CODE_GAMECONTROLLER_SET_CONTROLLER_LED 104
 #define SDL_CODE_GAMECONTROLLER_SET_ADAPTIVE_TRIGGERS 105
 #define SDL_CODE_HIDE_STATUS_OVERLAY 106
+#define SDL_CODE_SET_INPUT_POLICY 107
 
 #include <openssl/rand.h>
 
@@ -61,7 +62,8 @@ CONNECTION_LISTENER_CALLBACKS Session::k_ConnCallbacks = {
     Session::clRumbleTriggers,
     Session::clSetMotionEventState,
     Session::clSetControllerLED,
-    Session::clSetAdaptiveTriggers
+    Session::clSetAdaptiveTriggers,
+    Session::clSetInputPolicy
 };
 
 Session* Session::s_ActiveSession;
@@ -277,6 +279,20 @@ void Session::clSetAdaptiveTriggers(uint16_t controllerNumber, uint8_t eventFlag
     SDL_PushEvent(&setControllerLEDEvent);
 }
 
+void Session::clSetInputPolicy(uint8_t allowKeyboard, uint8_t allowMouse, uint8_t allowGamepad, uint8_t reason)
+{
+    SDL_Event setInputPolicyEvent = {};
+    setInputPolicyEvent.type = SDL_USEREVENT;
+    setInputPolicyEvent.user.code = SDL_CODE_SET_INPUT_POLICY;
+    setInputPolicyEvent.user.data1 = nullptr;
+    setInputPolicyEvent.user.data2 = (void*)(uintptr_t)(
+        ((uintptr_t)allowKeyboard << 24) |
+        ((uintptr_t)allowMouse << 16) |
+        ((uintptr_t)allowGamepad << 8) |
+        (uintptr_t)reason);
+    SDL_PushEvent(&setInputPolicyEvent);
+}
+
 
 bool Session::chooseDecoder(StreamingPreferences::VideoDecoderSelection vds,
                             SDL_Window* window, int videoFormat, int width, int height,
@@ -562,7 +578,7 @@ Session::Session(NvComputer* computer, NvApp& app, StreamingPreferences *prefere
       m_ManualAudioMuted(false),
       m_AudioVolumeScalar(1.0f),
       m_AllowGamepadInput(true),
-      m_AllowKeyboardMouseInput(true),
+      m_AllowKeyboardMouseInput(false),
       m_StatusOverlayGeneration(0),
       m_QtWindow(nullptr),
       m_UnexpectedTermination(true), // Failure prior to streaming is unexpected
@@ -582,6 +598,7 @@ Session::Session(NvComputer* computer, NvApp& app, StreamingPreferences *prefere
 void Session::setGamepadInputAllowed(bool allowed)
 {
     m_AllowGamepadInput.store(allowed, std::memory_order_relaxed);
+    sendInputPermissionStateToHost(LI_SESSION_INPUT_POLICY_REASON_USER_TOGGLE);
     notifyInputPermissionState();
 }
 
@@ -627,8 +644,10 @@ void Session::setKeyboardMouseInputAllowed(bool allowed)
     bool previous = m_AllowKeyboardMouseInput.exchange(allowed, std::memory_order_relaxed);
     if (previous && !allowed && m_InputHandler != nullptr) {
         m_InputHandler->raiseAllKeys();
+        m_InputHandler->raiseAllMouseButtons();
     }
 
+    sendInputPermissionStateToHost(LI_SESSION_INPUT_POLICY_REASON_USER_TOGGLE);
     notifyInputPermissionState();
 }
 
@@ -654,6 +673,22 @@ void Session::notifyInputPermissionState()
     showTemporaryStatusOverlay(buffer);
 }
 
+void Session::sendInputPermissionStateToHost(uint8_t reason)
+{
+    const bool allowKeyboardMouse = isKeyboardMouseInputAllowed();
+    const bool allowGamepad = isGamepadInputAllowed();
+    const int err = LiSendSessionInputPolicy(allowKeyboardMouse,
+                                             allowKeyboardMouse,
+                                             allowGamepad,
+                                             reason);
+
+    if (err != 0 && err != LI_ERR_UNSUPPORTED) {
+        SDL_LogWarn(SDL_LOG_CATEGORY_APPLICATION,
+                    "Failed to send input policy update to host: %d",
+                    err);
+    }
+}
+
 Uint32 Session::statusOverlayTimeoutCallback(Uint32, void* param)
 {
     SDL_Event event = {};
@@ -678,6 +713,22 @@ void Session::showTemporaryStatusOverlay(const char* text, Uint32 timeoutMs)
     SDL_AddTimer(timeoutMs, statusOverlayTimeoutCallback, (void*)(uintptr_t)generation);
 }
 
+void Session::applyHostInputPolicy(bool allowKeyboard, bool allowMouse, bool allowGamepad, uint8_t reason)
+{
+    const bool allowKeyboardMouse = allowKeyboard && allowMouse;
+    const bool previousKeyboardMouse = m_AllowKeyboardMouseInput.exchange(allowKeyboardMouse, std::memory_order_relaxed);
+    if (previousKeyboardMouse && !allowKeyboardMouse && m_InputHandler != nullptr) {
+        m_InputHandler->raiseAllKeys();
+        m_InputHandler->raiseAllMouseButtons();
+    }
+
+    m_AllowGamepadInput.store(allowGamepad, std::memory_order_relaxed);
+
+    if (reason != LI_SESSION_INPUT_POLICY_REASON_STREAM_START) {
+        notifyInputPermissionState();
+    }
+}
+
 void Session::updateEffectiveAudioMuteState()
 {
     bool muted = m_ManualAudioMuted.load(std::memory_order_relaxed);
@@ -1824,6 +1875,8 @@ bool Session::startConnectionAsync()
         return false;
     }
 
+    sendInputPermissionStateToHost(LI_SESSION_INPUT_POLICY_REASON_STREAM_START);
+
     emit connectionStarted();
     return true;
 }
@@ -2160,6 +2213,15 @@ void Session::exec()
                 m_InputHandler->setAdaptiveTriggers((uint16_t)(uintptr_t)event.user.data1,
                                                     (DualSenseOutputReport *)event.user.data2);
                 break;
+            case SDL_CODE_SET_INPUT_POLICY: {
+                const uintptr_t packed = (uintptr_t)event.user.data2;
+                const bool allowKeyboard = ((packed >> 24) & 0xFF) != 0;
+                const bool allowMouse = ((packed >> 16) & 0xFF) != 0;
+                const bool allowGamepad = ((packed >> 8) & 0xFF) != 0;
+                const uint8_t reason = (uint8_t)(packed & 0xFF);
+                applyHostInputPolicy(allowKeyboard, allowMouse, allowGamepad, reason);
+                break;
+            }
             case SDL_CODE_HIDE_STATUS_OVERLAY:
                 if ((uint32_t)(uintptr_t)event.user.data1 == m_StatusOverlayGeneration.load(std::memory_order_relaxed) &&
                     m_MouseEmulationRefCount == 0) {
diff --git a/app/streaming/session.h b/app/streaming/session.h
index c0c01815..8e5bd35f 100644
--- a/app/streaming/session.h
+++ b/app/streaming/session.h
@@ -249,6 +249,9 @@ private:
     static
     void clSetAdaptiveTriggers(uint16_t controllerNumber, uint8_t eventFlags, uint8_t typeLeft, uint8_t typeRight, uint8_t *left, uint8_t *right);
 
+    static
+    void clSetInputPolicy(uint8_t allowKeyboard, uint8_t allowMouse, uint8_t allowGamepad, uint8_t reason);
+
     static
     int arInit(int audioConfiguration,
                const POPUS_MULTISTREAM_CONFIGURATION opusConfig,
@@ -273,6 +276,8 @@ private:
     Uint32 statusOverlayTimeoutCallback(Uint32 interval, void* param);
 
     void showTemporaryStatusOverlay(const char* text, Uint32 timeoutMs = 1500);
+    void applyHostInputPolicy(bool allowKeyboard, bool allowMouse, bool allowGamepad, uint8_t reason);
+    void sendInputPermissionStateToHost(uint8_t reason);
     void updateEffectiveAudioMuteState();
 
     StreamingPreferences* m_Preferences;
diff --git a/moonlight-common-c/moonlight-common-c b/moonlight-common-c/moonlight-common-c
index 6250fa29..611a2e7f 160000
--- a/moonlight-common-c/moonlight-common-c
+++ b/moonlight-common-c/moonlight-common-c
@@ -1 +1 @@
-Subproject commit 6250fa29ee87873716045e3b64f1f229374324e8
+Subproject commit 611a2e7f8f6583d6d6aad30f0c8a02d6c07ab085