diff --git a/modules/build/src/main/scala/scala/build/Build.scala b/modules/build/src/main/scala/scala/build/Build.scala
index 51e7587a64..4bcf57cd2a 100644
--- a/modules/build/src/main/scala/scala/build/Build.scala
+++ b/modules/build/src/main/scala/scala/build/Build.scala
@@ -17,7 +17,7 @@ import scala.build.errors.*
 import scala.build.input.VirtualScript.VirtualScriptNameRegex
 import scala.build.input.*
 import scala.build.internal.resource.ResourceMapper
-import scala.build.internal.{Constants, MainClass, Util}
+import scala.build.internal.{Constants, MainClass, Name, Util}
 import scala.build.options.ScalaVersionUtil.asVersion
 import scala.build.options.*
 import scala.build.options.validation.ValidationException
@@ -76,12 +76,19 @@ object Build {
           case _ =>
             inferredMainClass(mainClasses, logger)
               .left.flatMap { mainClasses =>
+                // decode the names to present them to the user,
+                // but keep the link to each original name to account for package prefixes:
+                // "pack.Main$minus1" decodes to "pack.Main-1", which encodes back to "pack$u002EMain$minus1"
+                //  ^^^^^^^^^^^^^^^^----------------NOT THE SAME-----------------------^^^^^^^^^^^^^^^^^^^^^
+                val decodedToEncoded = mainClasses.map(mc => Name.decoded(mc) -> mc).toMap
+
                 options.interactive.flatMap { interactive =>
                   interactive
                     .chooseOne(
                       "Found several main classes. Which would you like to run?",
-                      mainClasses.toList
+                      decodedToEncoded.keys.toList
                     )
+                    .map(decodedToEncoded(_)) // encode back the name of the chosen class
                     .toRight {
                       SeveralMainClassesFoundError(
                         ::(mainClasses.head, mainClasses.tail.toList),
diff --git a/modules/core/src/main/scala/scala/build/internals/Name.scala b/modules/core/src/main/scala/scala/build/internals/Name.scala
index 9a04f57803..e08044b974 100644
--- a/modules/core/src/main/scala/scala/build/internals/Name.scala
+++ b/modules/core/src/main/scala/scala/build/internals/Name.scala
@@ -17,6 +17,8 @@ case class Name(raw: String) {
 
 object Name {
 
+  def decoded(name: String) = NameTransformer.decode(name)
+
   val alphaKeywords = Set(
     "abstract",
     "case",
diff --git a/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala b/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
index 616b199813..176021408b 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
@@ -1555,6 +1555,39 @@ abstract class RunTestDefinitions(val scalaVersionOpt: Option[String])
     }
   }
 
+  test("decoded classNames in interactive ask") {
+    val fileName = "watch.scala"
+
+    val inputs = TestInputs(
+      os.rel / fileName ->
+        """object `Run-1` extends App {println("Run-1 launched")}
+          |object `Run-2` extends App {println("Run-2 launched")}
+          |""".stripMargin
+    )
+    inputs.fromRoot { root =>
+      val confDir  = root / "config"
+      val confFile = confDir / "test-config.json"
+
+      os.write(confFile, "{\"interactive-was-suggested\":true}", createFolders = true)
+
+      if (!Properties.isWin)
+        os.perms.set(confDir, "rwx------")
+
+      val configEnv = Map("SCALA_CLI_CONFIG" -> confFile.toString)
+
+      val proc = os.proc(TestUtil.cli, "run", "--interactive", fileName)
+        .call(
+          cwd = root,
+          mergeErrIntoOut = true,
+          env = Map("SCALA_CLI_INTERACTIVE_INPUTS" -> "Run-1") ++ configEnv
+        )
+
+      expect(proc.out.trim.contains("[0] Run-1"))
+      expect(proc.out.trim.contains("[1] Run-2"))
+      expect(proc.out.trim.contains("Run-1 launched"))
+    }
+  }
+
   test("BuildInfo fields should be reachable") {
     val inputs = TestInputs(
       os.rel / "Main.scala" ->