diff --git a/examples/README.md b/examples/README.md
index 3c85b03df..2b5b9a811 100644
--- a/examples/README.md
+++ b/examples/README.md
@@ -92,6 +92,10 @@ each:
     - Example of using Rich Tables within a cmd2 application for displaying tabular data
 - [rich_theme.py](https://github.com/python-cmd2/cmd2/blob/main/examples/rich_theme.py)
     - Demonstrates how to create a custom theme for a cmd2 application
+- [textual_tty_embed.py](https://github.com/python-cmd2/cmd2/blob/main/examples/textual_tty_embed.py)
+    - Shows how to embed a `cmd2` application in a [Textual](https://textual.textualize.io/)
+      application using [textual-tty](https://github.com/ttygroup/textual-tty), with a realtime
+      status panel next to the terminal. Requires `textual-tty`, which is not a `cmd2` dependency
 - [tmux_launch.sh](https://github.com/python-cmd2/cmd2/blob/main/examples/tmux_launch.sh)
     - Shell script that launches two applications using tmux in different windows/tabs
 - [tmux_split.sh](https://github.com/python-cmd2/cmd2/blob/main/examples/tmux_split.sh)
diff --git a/examples/textual_tty_embed.py b/examples/textual_tty_embed.py
new file mode 100755
index 000000000..728ede39d
--- /dev/null
+++ b/examples/textual_tty_embed.py
@@ -0,0 +1,227 @@
+#!/usr/bin/env python3
+"""Embed a cmd2 application in a Textual application using textual-tty.
+
+The Textual application shows the cmd2 application in a terminal pane on the left. A status panel on the
+right is a regular Textual widget, so it can show much richer, realtime information than a bottom toolbar.
+The panel has a wall clock which is updated by Textual and the state of the cmd2 application: whether it
+is idle or running a command, how many commands it has run, and what the last one was.
+
+How it works:
+  - [textual-tty](https://github.com/ttygroup/textual-tty) provides the ``Terminal`` widget, a terminal
+    emulator (built on bittty) which runs a child process attached to a pseudo-terminal.
+  - The child process is simply this script run with ``--cmd2-only``, so the cmd2 application is completely
+    unaware that it is being embedded. It is a normal cmd2 application which uses prompt-toolkit.
+  - To report its state to the host, the cmd2 application calls ``cmd2.Cmd.set_window_title()`` with a JSON
+    document from precmd and command finalization hooks. The ``Terminal`` widget turns the title change
+    into a ``Terminal.TitleChanged`` message which the Textual application uses to update the status panel.
+    This uses only the pseudo-terminal, so there are no sockets, files, or threads to manage.
+
+Neither textual nor textual-tty are dependencies of cmd2. To run this example from a cmd2 checkout use:
+
+    uv run --with textual-tty examples/textual_tty_embed.py
+
+or install the extra packages into your own environment with ``pip install textual-tty`` and then run
+``python examples/textual_tty_embed.py``. This requires a POSIX terminal or Windows with pywinpty
+(which textual-tty installs for you).
+
+The cmd2 application can also be run on its own, without Textual:
+
+    python examples/textual_tty_embed.py --cmd2-only
+
+Use the ``quit`` command in the embedded cmd2 application, or press Ctrl-Q, to exit.
+"""
+
+import argparse
+import json
+import sys
+import time
+from datetime import datetime
+from typing import Any, ClassVar
+
+from prompt_toolkit.application import get_app_session
+from textual.app import App, ComposeResult
+from textual.binding import Binding, BindingType
+from textual.containers import Horizontal, Vertical
+from textual.reactive import reactive
+from textual.widgets import Footer, Header, Static
+from textual_tty import Terminal
+
+import cmd2
+
+# Prefix which marks a window title as a status update from the cmd2 application
+STATUS_PREFIX = "cmd2-status:"
+
+
+class StatusApp(cmd2.Cmd):
+    """A small cmd2 application which reports its state to whatever terminal it is running in."""
+
+    def __init__(self) -> None:
+        """Initialize the cmd2 application and register the hooks which report its status."""
+        super().__init__(allow_cli_args=False)
+        self.prompt = "status-demo> "
+        self.intro = "Run a few commands and watch the status panel next to this terminal."
+
+        self._commands_run = 0
+        self._last_command = ""
+        self._last_duration = 0.0
+        self._command_started = 0.0
+
+        self.register_precmd_hook(self._on_command_start)
+        self.register_cmdfinalization_hook(self._on_command_end)
+
+    def _report_status(self, state: str) -> None:
+        """Send the application's current state to the terminal as a window title."""
+        status = {
+            "state": state,
+            "commands_run": self._commands_run,
+            "last_command": self._last_command,
+            "last_duration": self._last_duration,
+        }
+        self.set_window_title(STATUS_PREFIX + json.dumps(status))
+        # prompt-toolkit buffers its output, so flush it or the "running" state would only appear after the command ends
+        get_app_session().output.flush()
+
+    def preloop(self) -> None:
+        """Report the initial status before the first prompt."""
+        self._report_status("idle")
+
+    def _on_command_start(self, data: cmd2.plugin.PrecommandData) -> cmd2.plugin.PrecommandData:
+        """Report that a command is about to run."""
+        self._last_command = data.statement.command or ""
+        self._command_started = time.monotonic()
+        self._report_status("running")
+        return data
+
+    def _on_command_end(self, data: cmd2.plugin.CommandFinalizationData) -> cmd2.plugin.CommandFinalizationData:
+        """Report that the command is done, even when it failed."""
+        self._commands_run += 1
+        self._last_duration = time.monotonic() - self._command_started
+        self._report_status("idle")
+        return data
+
+    @cmd2.with_argument_list
+    def do_greet(self, args: list[str]) -> None:
+        """Greet someone."""
+        self.poutput(f"Hello, {' '.join(args) or 'world'}!")
+
+    @cmd2.with_argument_list
+    def do_slow(self, args: list[str]) -> None:
+        """Run for a number of seconds (default 3) so the status panel can be seen in the running state."""
+        try:
+            seconds = float(args[0]) if args else 3.0
+        except ValueError:
+            self.perror(f"Not a number: {args[0]}")
+            return
+        self.poutput(f"Working for {seconds:g} seconds...")
+        time.sleep(seconds)
+        self.poutput("Done.")
+
+
+class ClockPanel(Static):
+    """The time of day, which is updated by Textual and has nothing to do with the cmd2 application."""
+
+    def on_mount(self) -> None:
+        """Start updating the clock every second."""
+        self.update_clock()
+        self.set_interval(1, self.update_clock)
+
+    def update_clock(self) -> None:
+        """Show the current time."""
+        self.update(f"[b]Clock[/b]\n{datetime.now().astimezone():%H:%M:%S %Z}")
+
+
+class StatusPanel(Static):
+    """The state of the embedded cmd2 application as last reported through its window title."""
+
+    state: reactive[str] = reactive("starting")
+    commands_run: reactive[int] = reactive(0)
+    last_command: reactive[str] = reactive("")
+    last_duration: reactive[float] = reactive(0.0)
+
+    def render(self) -> str:
+        """Render the panel from the reactive attributes. Textual refreshes it when any of them change."""
+        color = "green" if self.state == "idle" else "yellow"
+        return (
+            "[b]cmd2 status[/b]\n"
+            f"State: [{color}]{self.state}[/{color}]\n"
+            f"Commands run: {self.commands_run}\n"
+            f"Last command: {self.last_command or '-'}\n"
+            f"Last duration: {self.last_duration:.2f}s"
+        )
+
+    def apply(self, status: dict[str, Any]) -> None:
+        """Update the panel from a status document sent by the cmd2 application."""
+        self.state = str(status.get("state", "unknown"))
+        self.commands_run = int(status.get("commands_run", 0))
+        self.last_command = str(status.get("last_command", ""))
+        self.last_duration = float(status.get("last_duration", 0.0))
+
+
+class Cmd2InTextual(App[None]):
+    """A Textual application with a cmd2 application in a terminal pane and a status panel beside it."""
+
+    TITLE = "cmd2 inside Textual"
+
+    CSS = """
+    #cmd2-pane {
+        width: 2fr;
+        border: round $primary;
+    }
+    #cmd2 {
+        width: 1fr;
+        height: 1fr;
+    }
+    #sidebar {
+        width: 1fr;
+    }
+    #sidebar Static {
+        border: round $secondary;
+        padding: 0 1;
+        margin-bottom: 1;
+    }
+    """
+
+    # Priority bindings are needed because the focused Terminal sends every key press to the cmd2 application
+    BINDINGS: ClassVar[list[BindingType]] = [Binding("ctrl+q", "quit", "Quit", priority=True)]
+
+    def compose(self) -> ComposeResult:
+        """Create the layout: the terminal running cmd2 on the left and the status panels on the right."""
+        yield Header()
+        with Horizontal():
+            # The border is on a container because a Terminal sizes its pseudo-terminal from its outer size, so a
+            # border on the Terminal itself makes the cmd2 app draw more rows than are visible and hides its prompt
+            with Vertical(id="cmd2-pane"):
+                yield Terminal(command=[sys.executable, __file__, "--cmd2-only"], id="cmd2")
+            with Vertical(id="sidebar"):
+                yield StatusPanel(id="status")
+                yield ClockPanel(id="clock")
+        yield Footer()
+
+    def on_mount(self) -> None:
+        """Give the keyboard focus to the terminal so typing goes to the cmd2 application."""
+        self.query_one(Terminal).focus()
+
+    def on_terminal_title_changed(self, event: Terminal.TitleChanged) -> None:
+        """Update the status panel when the cmd2 application reports its status."""
+        if not event.title.startswith(STATUS_PREFIX):
+            return
+        try:
+            status = json.loads(event.title.removeprefix(STATUS_PREFIX))
+        except json.JSONDecodeError:
+            return
+        self.query_one(StatusPanel).apply(status)
+
+    def on_terminal_process_exited(self, _event: Terminal.ProcessExited) -> None:
+        """Exit when the cmd2 application exits, for example due to the quit command."""
+        self.exit()
+
+
+if __name__ == "__main__":
+    parser = argparse.ArgumentParser(description="Run a cmd2 application embedded in a Textual application.")
+    parser.add_argument("--cmd2-only", action="store_true", help="run just the cmd2 application, without Textual")
+    cli_args = parser.parse_args()
+
+    if cli_args.cmd2_only:
+        sys.exit(StatusApp().cmdloop())
+    else:
+        Cmd2InTextual().run()