diff --git a/cli/azd/pkg/ux/internal/console_other.go b/cli/azd/pkg/ux/internal/console_other.go
new file mode 100644
index 00000000000..6d5d2ee82f2
--- /dev/null
+++ b/cli/azd/pkg/ux/internal/console_other.go
@@ -0,0 +1,13 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+//go:build !windows
+
+package internal
+
+import "os"
+
+// disableVirtualTerminalInput is a no-op on non-Windows platforms.
+func disableVirtualTerminalInput(_ *os.File) error {
+	return nil
+}
diff --git a/cli/azd/pkg/ux/internal/console_windows.go b/cli/azd/pkg/ux/internal/console_windows.go
new file mode 100644
index 00000000000..8e2f9011e86
--- /dev/null
+++ b/cli/azd/pkg/ux/internal/console_windows.go
@@ -0,0 +1,43 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+//go:build windows
+
+package internal
+
+import (
+	"os"
+
+	"golang.org/x/sys/windows"
+)
+
+const enableVirtualTerminalInput uint32 = 0x0200
+
+// disableVirtualTerminalInput clears the ENABLE_VIRTUAL_TERMINAL_INPUT
+// console mode flag so that Windows delivers native virtual-key codes
+// (KEY_EVENT_RECORD with wVirtualKeyCode) instead of ANSI escape
+// sequences for arrow keys and other special keys.
+//
+// The survey library's Windows RuneReader expects native VK codes
+// (it checks unicodeChar == 0, then switches on wVirtualKeyCode).
+// When ENABLE_VIRTUAL_TERMINAL_INPUT is set — as it is by default in
+// Windows Terminal, PowerShell 7, VS Code, and Ghostty — the console
+// emits ESC [ A / ESC [ B / etc. instead, which leak through as
+// literal characters.
+//
+// This function is called after SetTermMode() and its effect is
+// reversed when RestoreTermMode() restores the original console mode.
+func disableVirtualTerminalInput(f *os.File) error {
+	h := windows.Handle(f.Fd())
+
+	var mode uint32
+	if err := windows.GetConsoleMode(h, &mode); err != nil {
+		return err
+	}
+
+	if mode&enableVirtualTerminalInput == 0 {
+		return nil // VTI not set, nothing to do
+	}
+
+	return windows.SetConsoleMode(h, mode&^enableVirtualTerminalInput)
+}
diff --git a/cli/azd/pkg/ux/internal/input.go b/cli/azd/pkg/ux/internal/input.go
index d41279bd163..0104700f9c9 100644
--- a/cli/azd/pkg/ux/internal/input.go
+++ b/cli/azd/pkg/ux/internal/input.go
@@ -97,6 +97,17 @@ func (i *Input) ReadInput(ctx context.Context, config *InputConfig, handler KeyP
 			errChan <- err
 			return
 		}
+
+		// On Windows, clear ENABLE_VIRTUAL_TERMINAL_INPUT so the
+		// console delivers native virtual-key codes instead of ANSI
+		// escape sequences. The survey library's RuneReader expects
+		// VK codes for arrow key dispatch. RestoreTermMode() will
+		// restore the original console mode when input completes.
+		if err := disableVirtualTerminalInput(os.Stdin); err != nil {
+			// Non-fatal: worst case is the pre-existing ANSI leak.
+			_ = err
+		}
+
 		defer func() {
 			if err := rr.RestoreTermMode(); err != nil {
 				log.Printf("Error restoring terminal mode: %v\n", err)