diff --git a/src/TUnit.Engine/Capabilities/BannerCapability.cs b/src/TUnit.Engine/Capabilities/BannerCapability.cs
index c6d25b747bd..cd809dc6390 100644
--- a/src/TUnit.Engine/Capabilities/BannerCapability.cs
+++ b/src/TUnit.Engine/Capabilities/BannerCapability.cs
@@ -1,5 +1,4 @@
-using System.Reflection;
-using System.Runtime.InteropServices;
+using System.Runtime.InteropServices;
 using System.Text;
 using Microsoft.Testing.Platform.Capabilities.TestFramework;
 using Microsoft.Testing.Platform.CommandLine;
@@ -8,6 +7,7 @@
 using TUnit.Engine.CommandLineProviders;
 using TUnit.Engine.Configuration;
 using TUnit.Engine.Enums;
+using TUnit.Engine.Helpers;
 #if NET
 using System.Runtime.CompilerServices;
 #endif
@@ -65,16 +65,13 @@ AOT compilation detected. Dynamic code generation is not supported.
         );
     }
 
-    private EngineMode GetMode()
+    // Must agree with the mode TUnitServiceProvider actually selects, so share its decision
+    // (CLI flags, [ReflectionMode], TUNIT_EXECUTION_MODE, EnableTUnitSourceGeneration=false).
+    internal EngineMode GetMode()
     {
-        if (commandLineOptions.IsOptionSet(ReflectionModeCommandProvider.ReflectionMode)
-            || Assembly.GetEntryAssembly()?.GetCustomAttributes<AssemblyMetadataAttribute>()
-                .Any(x => x is { Key: "TUnitReflectionScanner", Value: "true" }) is true)
-        {
-            return EngineMode.Reflection;
-        }
-
-        return EngineMode.SourceGenerated;
+        return ExecutionModeHelper.IsSourceGenerationMode(commandLineOptions)
+            ? EngineMode.SourceGenerated
+            : EngineMode.Reflection;
     }
 
     private string GetRuntimeDetails()
diff --git a/tests/TUnit.UnitTests/BannerCapabilityTests.cs b/tests/TUnit.UnitTests/BannerCapabilityTests.cs
new file mode 100644
index 00000000000..b8e88a2fd2e
--- /dev/null
+++ b/tests/TUnit.UnitTests/BannerCapabilityTests.cs
@@ -0,0 +1,96 @@
+using System.Diagnostics.CodeAnalysis;
+using Microsoft.Testing.Platform.CommandLine;
+using TUnit.Engine.Capabilities;
+using TUnit.Engine.CommandLineProviders;
+using TUnit.Engine.Configuration;
+using TUnit.Engine.Enums;
+
+namespace TUnit.UnitTests;
+
+// Regression tests for https://github.com/thomhurst/TUnit/issues/7078: the banner must report the
+// engine mode the engine actually selects. [NotInParallel] because tests change TUNIT_EXECUTION_MODE.
+[NotInParallel]
+public class BannerCapabilityTests
+{
+    private string? _previousExecutionMode;
+
+    [Before(HookType.Test)]
+    public void ClearExecutionMode()
+    {
+        _previousExecutionMode = Environment.GetEnvironmentVariable(EnvironmentConstants.ExecutionMode);
+        Environment.SetEnvironmentVariable(EnvironmentConstants.ExecutionMode, null);
+    }
+
+    [After(HookType.Test)]
+    public void RestoreExecutionMode()
+        => Environment.SetEnvironmentVariable(EnvironmentConstants.ExecutionMode, _previousExecutionMode);
+
+    [Test]
+    public async Task Reports_Reflection_When_Environment_Variable_Requests_Reflection()
+    {
+        SkipOnAot();
+        Environment.SetEnvironmentVariable(EnvironmentConstants.ExecutionMode, "reflection");
+
+        await Assert.That(CreateBanner(new FakeCommandLineOptions()).GetMode()).IsEqualTo(EngineMode.Reflection);
+    }
+
+    [Test]
+    public async Task Reports_SourceGenerated_When_Environment_Variable_Requests_SourceGeneration()
+    {
+        Environment.SetEnvironmentVariable(EnvironmentConstants.ExecutionMode, "sourcegeneration");
+
+        await Assert.That(CreateBanner(new FakeCommandLineOptions()).GetMode()).IsEqualTo(EngineMode.SourceGenerated);
+    }
+
+    [Test]
+    public async Task Reports_Reflection_When_Reflection_Flag_Is_Set()
+    {
+        SkipOnAot();
+        var options = new FakeCommandLineOptions(ReflectionModeCommandProvider.ReflectionMode);
+
+        await Assert.That(CreateBanner(options).GetMode()).IsEqualTo(EngineMode.Reflection);
+    }
+
+    [Test]
+    public async Task Falls_Back_To_Source_Registration_Without_Overrides()
+    {
+        // With no CLI or environment override, the engine falls back to whether generated sources
+        // registered themselves (false when EnableTUnitSourceGeneration=false strips the generator).
+        var options = new FakeCommandLineOptions();
+        var expected = SourceRegistrar.IsEnabled
+            ? EngineMode.SourceGenerated
+            : EngineMode.Reflection;
+
+        await Assert.That(CreateBanner(options).GetMode()).IsEqualTo(expected);
+    }
+
+    private static BannerCapability CreateBanner(ICommandLineOptions options)
+        => new(null!, options, null!);
+
+    private static void SkipOnAot()
+    {
+#if NET
+        if (!System.Runtime.CompilerServices.RuntimeFeature.IsDynamicCodeSupported)
+        {
+            Skip.Test("Native AOT always forces source-generated mode.");
+        }
+#endif
+    }
+
+    private sealed class FakeCommandLineOptions(params string[] setOptions) : ICommandLineOptions
+    {
+        public bool IsOptionSet(string optionName) => setOptions.Contains(optionName);
+
+        public bool TryGetOptionArgumentList(string optionName, [NotNullWhen(true)] out string[]? arguments)
+        {
+            if (setOptions.Contains(optionName))
+            {
+                arguments = [];
+                return true;
+            }
+
+            arguments = null;
+            return false;
+        }
+    }
+}