diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index a4ad6635b..46bbaf7fd 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -29,6 +29,7 @@ Deprecations and removed features
 
 - ``$status`` is now forbidden as a command, to prevent a surprisingly common error among new users: Running ``if $status`` (:issue:`8171`). This applies *only* to ``$status``, other variables are still allowed.
 - ``set --query`` now returns a falsy status of 255 if given no variable names. This means ``if set -q $foo`` will not enter the if-block if ``$foo`` is empty or unset. To restore the previous behavior you would use something like ``if not set -q foo; or set -q $foo``. We do not expect anyone to have used this on purpose, any places this happens are almost certainly buggy (:issue:`8214`).
+- Command substitutions no longer respect job control, instead running inside fish's own process group. This more closely matches other shells, and improves :kbd:`Control-C` reliability inside a command substitution.
 
 Scripting improvements
 ----------------------
diff --git a/src/parse_execution.cpp b/src/parse_execution.cpp
index 5987e42b1..de10e9e38 100644
--- a/src/parse_execution.cpp
+++ b/src/parse_execution.cpp
@@ -1342,10 +1342,12 @@ end_execution_reason_t parse_execution_context_t::run_1_job(const ast::job_t &jo
     const auto &ld = parser->libdata();
 
     auto job_control_mode = get_job_control_mode();
+    // Run all command substitutions in our pgroup.
     bool wants_job_control =
-        (job_control_mode == job_control_t::all) ||
-        ((job_control_mode == job_control_t::interactive) && parser->is_interactive()) ||
-        (ctx.job_group && ctx.job_group->wants_job_control());
+        !parser->is_command_substitution() &&
+        ((job_control_mode == job_control_t::all) ||
+         ((job_control_mode == job_control_t::interactive) && parser->is_interactive()) ||
+         (ctx.job_group && ctx.job_group->wants_job_control()));
 
     job_t::properties_t props{};
     props.initial_background = job_node.bg.has_value();
diff --git a/src/parser.cpp b/src/parser.cpp
index 777b2d493..ff94fb581 100644
--- a/src/parser.cpp
+++ b/src/parser.cpp
@@ -398,6 +398,18 @@ bool parser_t::is_breakpoint() const {
     return false;
 }
 
+bool parser_t::is_command_substitution() const {
+    for (const auto &b : block_list) {
+        if (b.type() == block_type_t::subst) {
+            return true;
+        } else if (b.type() == block_type_t::source) {
+            // If a function sources a file, don't descend further.
+            break;
+        }
+    }
+    return false;
+}
+
 maybe_t<wcstring> parser_t::get_function_name(int level) {
     if (level == 0) {
         // Return the function name for the level preceding the most recent breakpoint. If there
diff --git a/src/parser.h b/src/parser.h
index f92259465..4b73884b6 100644
--- a/src/parser.h
+++ b/src/parser.h
@@ -279,6 +279,9 @@ class parser_t : public std::enable_shared_from_this<parser_t> {
     /// \return whether we are currently evaluating a function.
     bool is_function() const;
 
+    /// \return whether we are currently evaluating a command substitution.
+    bool is_command_substitution() const;
+
     /// Create a parser.
     parser_t();
     parser_t(std::shared_ptr<env_stack_t> vars);
diff --git a/tests/checks/sigint2.fish b/tests/checks/sigint2.fish
index e925f2d7b..0160cf3b5 100644
--- a/tests/checks/sigint2.fish
+++ b/tests/checks/sigint2.fish
@@ -2,6 +2,21 @@
 # This hangs on OpenBSD
 #REQUIRES: test "$(uname)" != OpenBSD
 
+# Command subs run in same pgroup as fish, even if job control is 'all'.
+# Verify that they get the same pgroup across runs (presumably fish's).
+status job-control full
+set g1 ($helper print_pgrp)
+for i in (seq 10)
+    if test $g1 -ne ($helper print_pgrp)
+        echo "Unexpected pgroup"
+    end
+end
+status job-control interactive
+
+echo "Finished testing pgroups"
+#CHECK: Finished testing pgroups
+
+
 # Ensure that if child processes SIGINT, we exit our loops
 # Test for #3780
 
diff --git a/tests/pexpects/signals.py b/tests/pexpects/signals.py
index a76a95e25..35bc9a64c 100644
--- a/tests/pexpects/signals.py
+++ b/tests/pexpects/signals.py
@@ -19,6 +19,13 @@ import sys
 
 expect_prompt()
 
+# Verify that SIGINT inside a command sub cancels it.
+# Negate the pid to send to the pgroup (which should include sleep).
+sendline("while true; echo (sleep 1000); end")
+sleep(0.5)
+os.kill(-sp.spawn.pid, signal.SIGINT)
+expect_prompt()
+
 sendline("sleep 10 &")
 expect_prompt()