diff --git a/src/bin/bat/app.rs b/src/bin/bat/app.rs
index f95bbb91c8..f3a1cc80ee 100644
--- a/src/bin/bat/app.rs
+++ b/src/bin/bat/app.rs
@@ -50,6 +50,11 @@ pub struct App {
     /// (not from config file or environment variables).
     /// This is used to honor the flag when piping output, similar to `cat -n`.
     number_from_cli: bool,
+    /// True if --wrap=character was passed on the command line
+    /// (not from config file or environment variables).
+    /// When piping output (non-interactive), --wrap=character is ignored unless
+    /// it was explicitly provided on the command line.
+    wrap_character_from_cli: bool,
 }
 
 impl App {
@@ -90,6 +95,18 @@ impl App {
             false
         });
 
+        // Check if --wrap=character was passed on the command line
+        // (before merging with config file and environment variables).
+        // This is needed to honor --wrap=character when piping output, while
+        // ignoring it when it comes only from the config file or BAT_OPTS.
+        let cli_args_vec: Vec<_> = wild::args_os().collect();
+        let wrap_character_from_cli = cli_args_vec
+            .iter()
+            .any(|arg| arg.to_string_lossy() == "--wrap=character")
+            || cli_args_vec.windows(2).any(|pair| {
+                pair[0].to_string_lossy() == "--wrap" && pair[1].to_string_lossy() == "character"
+            });
+
         let matches = Self::matches(interactive_output)?;
 
         if matches.get_flag("help") {
@@ -130,6 +147,7 @@ impl App {
             matches,
             interactive_output,
             number_from_cli,
+            wrap_character_from_cli,
         })
     }
 
@@ -408,7 +426,15 @@ impl App {
                     WrappingMode::NoWrapping(true)
                 } else {
                     match self.matches.get_one::<String>("wrap").map(|s| s.as_str()) {
-                        Some("character") => WrappingMode::Character,
+                        Some("character") => {
+                            if !self.interactive_output && !self.wrap_character_from_cli {
+                                // When piping output (non-interactive), ignore --wrap=character
+                                // unless it was explicitly provided on the command line.
+                                WrappingMode::NoWrapping(false)
+                            } else {
+                                WrappingMode::Character
+                            }
+                        }
                         Some("word") => WrappingMode::Word,
                         Some("never") => WrappingMode::NoWrapping(true),
                         Some("auto") | None => {
diff --git a/tests/integration_tests.rs b/tests/integration_tests.rs
index 96da50d7e7..9baf1fdacb 100644
--- a/tests/integration_tests.rs
+++ b/tests/integration_tests.rs
@@ -3034,6 +3034,53 @@ fn no_wrapping_with_chop_long_lines() {
     wrapping_test("--chop-long-lines", false);
 }
 
+#[test]
+fn line_wrapping_when_set_to_character() {
+    wrapping_test("--wrap=character", true);
+}
+
+#[test]
+fn no_line_wrapping_when_character_wrap_from_config() {
+    // --wrap=character in a config file should be ignored when output is not interactive
+    // (e.g. when piping), since wrapping is only useful with a pager.
+    let tmp_dir = tempdir().expect("can create temporary directory");
+    let tmp_config_path = tmp_dir.path().join("wrap-character.conf");
+    std::fs::write(&tmp_config_path, "--wrap=character").expect("can write config file");
+
+    let expected = "abcdefghigklmnopqrstuvxyzabcdefghigklmnopqrstuvxyzabcdefghigklmnopqrstuvxyzabcdefghigklmnopqrstuvxyz\n";
+
+    bat_with_config()
+        .env("BAT_CONFIG_PATH", tmp_config_path.to_str().unwrap())
+        .arg("--style=rule")
+        .arg("--color=never")
+        .arg("--decorations=always")
+        .arg("--terminal-width=80")
+        .arg("long-single-line.txt")
+        .assert()
+        .success()
+        .stdout(expected)
+        .stderr("");
+}
+
+#[test]
+fn no_line_wrapping_when_character_wrap_from_bat_opts() {
+    // --wrap=character in BAT_OPTS should be ignored when output is not interactive,
+    // since it was not explicitly provided on the command line.
+    let expected = "abcdefghigklmnopqrstuvxyzabcdefghigklmnopqrstuvxyzabcdefghigklmnopqrstuvxyzabcdefghigklmnopqrstuvxyz\n";
+
+    bat_with_config()
+        .env("BAT_OPTS", "--wrap=character")
+        .arg("--style=rule")
+        .arg("--color=never")
+        .arg("--decorations=always")
+        .arg("--terminal-width=80")
+        .arg("long-single-line.txt")
+        .assert()
+        .success()
+        .stdout(expected)
+        .stderr("");
+}
+
 #[test]
 #[serial]
 fn wrap_never_flag_respected_with_paging_always() {