diff --git a/wezterm-gui/src/termwindow/background.rs b/wezterm-gui/src/termwindow/background.rs
index 606f6c5c877..cacc48a2293 100644
--- a/wezterm-gui/src/termwindow/background.rs
+++ b/wezterm-gui/src/termwindow/background.rs
@@ -488,16 +488,34 @@ impl crate::TermWindow {
         } else {
             ((pixel_height * aspect).floor(), pixel_height)
         };
+        
+        // Compute image height preserving aspect ratio.
+        let computed_background_height = if let (
+            BackgroundSize::Cover, BackgroundSize::Dimension(width)
+        ) = (layer.def.height, layer.def.width) {
+            (width.evaluate_as_pixels(h_context) / aspect).floor()
+        } else {
+            min_aspect_height
+        };
+
+        // Compute width preserving aspect ratio.
+        let computed_background_width = if let (
+            BackgroundSize::Cover, BackgroundSize::Dimension(height)
+        ) = (layer.def.width, layer.def.height) {
+            (height.evaluate_as_pixels(h_context) * aspect).floor()
+        } else {
+            min_aspect_width
+        };
 
         let width = match layer.def.width {
             BackgroundSize::Contain => max_aspect_width as f32,
-            BackgroundSize::Cover => min_aspect_width as f32,
+            BackgroundSize::Cover => computed_background_width as f32,
             BackgroundSize::Dimension(n) => n.evaluate_as_pixels(h_context),
         };
 
         let height = match layer.def.height {
             BackgroundSize::Contain => max_aspect_height as f32,
-            BackgroundSize::Cover => min_aspect_height as f32,
+            BackgroundSize::Cover => computed_background_height as f32,
             BackgroundSize::Dimension(n) => n.evaluate_as_pixels(v_context),
         };