diff --git a/src/evalfunc.c b/src/evalfunc.c
index 3d657f73e6..2be7fe1bf2 100644
--- a/src/evalfunc.c
+++ b/src/evalfunc.c
@@ -7849,6 +7849,10 @@ f_mode(typval_T *argvars, typval_T *rettv)
 	buf[0] = 'x';
 	buf[1] = '!';
     }
+#ifdef FEAT_TERMINAL
+    else if (term_use_loop())
+	buf[0] = 't';
+#endif
     else if (VIsual_active)
     {
 	if (VIsual_select)
diff --git a/src/testdir/test_terminal.vim b/src/testdir/test_terminal.vim
index 605292e6a5..e18087bbdb 100644
--- a/src/testdir/test_terminal.vim
+++ b/src/testdir/test_terminal.vim
@@ -42,8 +42,13 @@ func Test_terminal_basic()
     call assert_match("^winpty://", job_info(g:job).tty)
     call assert_match("^winpty://", term_gettty(''))
   endif
+  call assert_equal('t', mode())
+  call assert_match('%aR[^\n]*running]', execute('ls'))
+
   call Stop_shell_in_terminal(buf)
   call term_wait(buf)
+  call assert_equal('n', mode())
+  call assert_match('%aF[^\n]*finished]', execute('ls'))
 
   " closing window wipes out the terminal buffer a with finished job
   close
diff --git a/src/version.c b/src/version.c
index 61ee3c06e0..ccf857caf4 100644
--- a/src/version.c
+++ b/src/version.c
@@ -769,6 +769,8 @@ static char *(features[]) =
 
 static int included_patches[] =
 {   /* Add new patch number below this line */
+/**/
+    936,
 /**/
     935,
 /**/