diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1ba754b33c..1f876a92e3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,12 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](http://keepachangelog.com/)
 and this project adheres to [Semantic Versioning](http://semver.org/).
 
+## [2.0.4] - 2025-02-17
+
+### Fixed
+
+- Fixed smooth scrolling breaking mouse support in VSCode (and probably others) https://github.com/Textualize/textual/pull/5549
+
 ## [2.0.3] - 2025-02-16
 
 ### Fixed
@@ -2735,6 +2741,7 @@ https://textual.textualize.io/blog/2022/11/08/version-040/#version-040
 - New handler system for messages that doesn't require inheritance
 - Improved traceback handling
 
+[2.0.4]: https://github.com/Textualize/textual/compare/v2.0.3...v2.0.4
 [2.0.3]: https://github.com/Textualize/textual/compare/v2.0.2...v2.0.3
 [2.0.2]: https://github.com/Textualize/textual/compare/v2.0.1...v2.0.2
 [2.0.1]: https://github.com/Textualize/textual/compare/v2.0.0...v2.0.1
diff --git a/pyproject.toml b/pyproject.toml
index ae1f70e298..079e30cb60 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [tool.poetry]
 name = "textual"
-version = "2.0.3"
+version = "2.0.4"
 homepage = "https://github.com/Textualize/textual"
 repository = "https://github.com/Textualize/textual"
 documentation = "https://textual.textualize.io/"
diff --git a/src/textual/drivers/linux_driver.py b/src/textual/drivers/linux_driver.py
index a73e32c2ad..6842750049 100644
--- a/src/textual/drivers/linux_driver.py
+++ b/src/textual/drivers/linux_driver.py
@@ -454,19 +454,18 @@ def process_selector_events(
     def process_message(self, message: Message) -> None:
         # intercept in-band window resize
         if isinstance(message, TerminalSupportInBandWindowResize):
-            # If it is supported, enabled it
-            if message.supported and not message.enabled:
-                self._enable_in_band_window_resize()
-                self._in_band_window_resize = message.supported
-            elif message.enabled:
-                self._in_band_window_resize = message.supported
-            self._enable_mouse_pixels()
-            # Send up-to-date message
-            super().process_message(
-                TerminalSupportInBandWindowResize(
-                    message.supported, self._in_band_window_resize
-                )
-            )
-            return
+            if message.supported:
+                self._in_band_window_resize = True
+                if message.enabled:
+                    # Supported and enabled
+                    super().process_message(message)
+                else:
+                    # Supported, but not enabled
+                    self._enable_in_band_window_resize()
+                    super().process_message(
+                        TerminalSupportInBandWindowResize(True, True)
+                    )
+                self._enable_mouse_pixels()
+                return
 
         super().process_message(message)