diff --git a/src/nvim/edit.c b/src/nvim/edit.c
index 07885039e1..1aaf66fb65 100644
--- a/src/nvim/edit.c
+++ b/src/nvim/edit.c
@@ -393,6 +393,13 @@ static int insert_check(VimState *state)
     Insstart_orig = Insstart;
   }
 
+  if (curbuf->terminal) {
+    // Exit Insert mode and go to Terminal mode.
+    stop_insert_mode = true;
+    restart_edit = 'I';
+    stuffcharReadbuff(K_NOP);
+  }
+
   if (stop_insert_mode && !ins_compl_active()) {
     // ":stopinsert" used
     s->count = 0;
diff --git a/test/functional/terminal/ex_terminal_spec.lua b/test/functional/terminal/ex_terminal_spec.lua
index ebb0253caa..dac193b051 100644
--- a/test/functional/terminal/ex_terminal_spec.lua
+++ b/test/functional/terminal/ex_terminal_spec.lua
@@ -125,6 +125,20 @@ describe(':terminal', function()
     feed('a')
     eq({ blocking=false, mode='t' }, nvim('get_mode'))
   end)
+
+  it('switching to terminal buffer in Insert mode goes to Terminal mode #7164', function()
+    command('terminal')
+    command('vnew')
+    feed('i')
+    command('let g:events = []')
+    command('autocmd InsertLeave * let g:events += ["InsertLeave"]')
+    command('autocmd TermEnter * let g:events += ["TermEnter"]')
+    command('inoremap <F2> <Cmd>wincmd p<CR>')
+    eq({ blocking=false, mode='i' }, nvim('get_mode'))
+    feed('<F2>')
+    eq({ blocking=false, mode='t' }, nvim('get_mode'))
+    eq({'InsertLeave', 'TermEnter'}, eval('g:events'))
+  end)
 end)
 
 describe(':terminal (with fake shell)', function()