diff --git a/cmd/sqlcmd/pipe_detection_test.go b/cmd/sqlcmd/pipe_detection_test.go
new file mode 100644
index 00000000..b2bc8be3
--- /dev/null
+++ b/cmd/sqlcmd/pipe_detection_test.go
@@ -0,0 +1,28 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT license.
+
+package sqlcmd
+
+import (
+	"os"
+	"testing"
+	
+	"github.com/stretchr/testify/assert"
+)
+
+func TestStdinPipeDetection(t *testing.T) {
+	// Get stdin info
+	fi, err := os.Stdin.Stat()
+	assert.NoError(t, err, "os.Stdin.Stat()")
+	
+	// On most CI systems, stdin will be a pipe or file (not a terminal)
+	// We're testing the logic, not expecting a specific result
+	isPipe := false
+	if fi != nil && (fi.Mode()&os.ModeCharDevice) == 0 {
+		isPipe = true
+	}
+	
+	// Just making sure the detection code doesn't crash
+	// The actual value will depend on the environment
+	t.Logf("Stdin detected as pipe: %v", isPipe)
+}
\ No newline at end of file
diff --git a/cmd/sqlcmd/sqlcmd.go b/cmd/sqlcmd/sqlcmd.go
index 5c1c16a2..4710bfa9 100644
--- a/cmd/sqlcmd/sqlcmd.go
+++ b/cmd/sqlcmd/sqlcmd.go
@@ -714,25 +714,31 @@ func setConnect(connect *sqlcmd.ConnectSettings, args *SQLCmdArguments, vars *sq
 	}
 }
 
-func isConsoleInitializationRequired(connect *sqlcmd.ConnectSettings, args *SQLCmdArguments) bool {
-	// Password input always requires console initialization
-	if connect.RequiresPassword() {
-		return true
-	}
+func isConsoleInitializationRequired(connect *sqlcmd.ConnectSettings, args *SQLCmdArguments) (bool, bool) {
+	needsConsole := false
 
 	// Check if stdin is from a terminal or a redirection
+	isStdinRedirected := false
 	file, err := os.Stdin.Stat()
 	if err == nil {
 		// If stdin is not a character device, it's coming from a pipe or redirect
 		if (file.Mode() & os.ModeCharDevice) == 0 {
-			// Non-interactive: stdin is redirected
-			return false
+			isStdinRedirected = true
 		}
 	}
 
-	// If we get here, stdin is from a terminal or we couldn't determine
-	iactive := args.InputFile == nil && args.Query == "" && len(args.ChangePasswordAndExit) == 0
-	return iactive
+	// Determine if we're in interactive mode
+	iactive := args.InputFile == nil && args.Query == "" && len(args.ChangePasswordAndExit) == 0 && !isStdinRedirected
+
+	// Password input always requires console initialization
+	if connect.RequiresPassword() {
+		needsConsole = true
+	} else if iactive {
+		// Interactive mode also requires console
+		needsConsole = true
+	}
+
+	return needsConsole, iactive
 }
 
 func run(vars *sqlcmd.Variables, args *SQLCmdArguments) (int, error) {
@@ -744,7 +750,8 @@ func run(vars *sqlcmd.Variables, args *SQLCmdArguments) (int, error) {
 	var connectConfig sqlcmd.ConnectSettings
 	setConnect(&connectConfig, args, vars)
 	var line sqlcmd.Console = nil
-	if isConsoleInitializationRequired(&connectConfig, args) {
+	needsConsole, isInteractive := isConsoleInitializationRequired(&connectConfig, args)
+	if needsConsole {
 		line = console.NewConsole("")
 		defer line.Close()
 	}
@@ -835,7 +842,10 @@ func run(vars *sqlcmd.Variables, args *SQLCmdArguments) (int, error) {
 		}
 		iactive := args.InputFile == nil && args.Query == ""
 		if iactive || s.Query != "" {
-			err = s.Run(once, false)
+			// If we're not in interactive mode and stdin is redirected,
+			// we want to process all input without requiring GO statements
+			processAll := !isInteractive
+			err = s.Run(once, processAll)
 		} else {
 			for f := range args.InputFile {
 				if err = s.IncludeFile(args.InputFile[f], true); err != nil {
diff --git a/cmd/sqlcmd/sqlcmd_test.go b/cmd/sqlcmd/sqlcmd_test.go
index e3c8a1e9..ce657420 100644
--- a/cmd/sqlcmd/sqlcmd_test.go
+++ b/cmd/sqlcmd/sqlcmd_test.go
@@ -506,7 +506,8 @@ func TestConditionsForPasswordPrompt(t *testing.T) {
 		setConnect(&connectConfig, &args, vars)
 		connectConfig.AuthenticationMethod = testcase.authenticationMethod
 		connectConfig.Password = testcase.pwd
-		assert.Equal(t, testcase.expectedResult, isConsoleInitializationRequired(&connectConfig, &args), "Unexpected test result encountered for console initialization")
+		needsConsole, _ := isConsoleInitializationRequired(&connectConfig, &args)
+		assert.Equal(t, testcase.expectedResult, needsConsole, "Unexpected test result encountered for console initialization")
 		assert.Equal(t, testcase.expectedResult, connectConfig.RequiresPassword() && connectConfig.Password == "", "Unexpected test result encountered for password prompt conditions")
 	}
 }
diff --git a/cmd/sqlcmd/stdin_console_test.go b/cmd/sqlcmd/stdin_console_test.go
index 2c9f7ba5..10ba6cd7 100644
--- a/cmd/sqlcmd/stdin_console_test.go
+++ b/cmd/sqlcmd/stdin_console_test.go
@@ -56,13 +56,25 @@ func TestIsConsoleInitializationRequiredWithRedirectedStdin(t *testing.T) {
 	t.Logf("RequiresPassword() returns: %v", connectConfig.RequiresPassword())
 
 	// Test with SQL authentication that requires a password
-	res := isConsoleInitializationRequired(&connectConfig, args)
-	// Should be true since password is required, even with redirected stdin
-	assert.True(t, res, "Console initialization should be required when SQL authentication is used")
+	needsConsole, isInteractive := isConsoleInitializationRequired(&connectConfig, args)
+	// Should need console since password is required, but not be interactive
+	assert.True(t, needsConsole, "Console should be needed when SQL authentication is used")
+	assert.False(t, isInteractive, "Should not be interactive mode with redirected stdin")
 
 	// Now test with no authentication (no password required)
 	connectConfig = sqlcmd.ConnectSettings{}
-	res = isConsoleInitializationRequired(&connectConfig, args)
-	// Should be false since stdin is redirected and no password is required
-	assert.False(t, res, "Console initialization should not be required with redirected stdin and no password")
+	needsConsole, isInteractive = isConsoleInitializationRequired(&connectConfig, args)
+	// Should not need console and not be interactive
+	assert.False(t, needsConsole, "Console should not be needed with redirected stdin and no password")
+	assert.False(t, isInteractive, "Should not be interactive mode with redirected stdin")
+
+	// Test with direct terminal input (simulated by restoring original stdin)
+	os.Stdin = originalStdin
+	connectConfig = sqlcmd.ConnectSettings{} // No password needed
+	needsConsole, isInteractive = isConsoleInitializationRequired(&connectConfig, args)
+	// If no input file or query is specified, it should be interactive mode
+	assert.Equal(t, args.InputFile == nil && args.Query == "" && len(args.ChangePasswordAndExit) == 0, needsConsole,
+		"Console needs should match interactive mode requirements with terminal stdin")
+	assert.Equal(t, args.InputFile == nil && args.Query == "" && len(args.ChangePasswordAndExit) == 0, isInteractive,
+		"Interactive mode should be true with terminal stdin and no input files or queries")
 }