diff --git a/src/cthulhu/event_manager.py b/src/cthulhu/event_manager.py
index 26634e6..5903865 100644
--- a/src/cthulhu/event_manager.py
+++ b/src/cthulhu/event_manager.py
@@ -1729,6 +1729,35 @@ class EventManager:
 
         return False
 
+    def _is_notification_event_during_xterm_handoff(self, event: Atspi.Event) -> bool:
+        """Returns True when an event should bypass XTerm handoff suppression."""
+
+        for obj in (event.source, event.any_data):
+            if obj is None or isinstance(obj, (str, bytes, int, float, bool)):
+                continue
+            try:
+                if AXUtilities.is_notification(obj) or AXUtilities.is_alert(obj):
+                    return True
+            except Exception:
+                pass
+
+        notificationEventTypes = (
+            "window:create",
+            "object:property-change:accessible-name",
+            "object:property-change:accessible-value",
+        )
+        if not event.type.startswith(notificationEventTypes):
+            return False
+
+        app = AXObject.get_application(event.source)
+        appName = (AXObject.get_name(app) or "").casefold()
+        return appName in (
+            "notification-daemon",
+            "notify-osd",
+            "xfce4-notifyd",
+            "mate-notification-daemon",
+        )
+
     def _processObjectEvent(self, event: Atspi.Event) -> None:
         """Handles all object events destined for scripts.
 
@@ -1743,7 +1772,8 @@ class EventManager:
         eType = event.type
 
         refreshXtermHandoff = self._event_refreshes_xterm_handoff(event)
-        suppressForXterm = self._inputEventManager is not None and (
+        isNotification = self._is_notification_event_during_xterm_handoff(event)
+        suppressForXterm = not isNotification and self._inputEventManager is not None and (
             self._inputEventManager.should_suppress_atspi_events_for_xterm(
                 refresh=refreshXtermHandoff,
             )
diff --git a/tests/test_event_manager_xterm_handoff_regressions.py b/tests/test_event_manager_xterm_handoff_regressions.py
index f949b1c..01b0a2e 100644
--- a/tests/test_event_manager_xterm_handoff_regressions.py
+++ b/tests/test_event_manager_xterm_handoff_regressions.py
@@ -97,6 +97,33 @@ class EventManagerXtermHandoffRegressionTests(unittest.TestCase):
             refresh=False,
         )
 
+    def test_notification_daemon_window_create_is_processed_during_xterm_handoff(self) -> None:
+        event = FakeEvent("window:create", source=object())
+        notificationApp = object()
+        self.manager._isActivatableEvent = mock.Mock(return_value=(False, "test"))
+
+        with (
+            mock.patch.object(event_manager.debug, "printObjectEvent"),
+            mock.patch.object(event_manager.debug, "printMessage"),
+            mock.patch.object(
+                event_manager.AXObject,
+                "get_application",
+                return_value=notificationApp,
+            ),
+            mock.patch.object(
+                event_manager.AXObject,
+                "get_name",
+                return_value="xfce4-notifyd",
+            ),
+            mock.patch.object(event_manager.AXObject, "is_dead", return_value=False),
+            mock.patch.object(event_manager.AXUtilities, "is_defunct", return_value=False),
+            mock.patch.object(event_manager.AXUtilities, "is_iconified", return_value=False),
+        ):
+            self.manager._processObjectEvent(event)
+
+        self.manager._get_scriptForEvent.assert_called_once_with(event)
+        self.manager._inputEventManager.should_suppress_atspi_events_for_xterm.assert_not_called()
+
 
 if __name__ == "__main__":
     unittest.main()