diff --git a/README.md b/README.md
index cfbe42b42..89b035dfe 100644
--- a/README.md
+++ b/README.md
@@ -459,7 +459,7 @@ Alternating between configurations can be done by providing the `--server-id` op
 
 ### Enabling Package Alias
 
-When enabled, the action runs `jf package-alias install` after setting up JFrog CLI and appends the alias bin directory to `GITHUB_PATH`. Subsequent steps will transparently intercept package manager commands such as `mvn`, `npm`, `go`, etc., so they use JFrog CLI without changing your workflow scripts.
+When enabled, the action runs `jf package-alias install` after setting up JFrog CLI, appends the alias bin directory to `GITHUB_PATH`, and exports `JFROG_CLI_GHOST_FROG` so Ghost Frog interception is active. Subsequent steps will transparently intercept package manager commands such as `mvn`, `npm`, `go`, etc., so they use JFrog CLI without changing your workflow scripts.
 
 You can optionally provide `package-alias-tools` as a comma-separated list to pass specific package managers to `jf package-alias install --packages`.
 
diff --git a/action.yml b/action.yml
index d1a779ea2..612cbf606 100644
--- a/action.yml
+++ b/action.yml
@@ -37,7 +37,7 @@ inputs:
         description: 'Alias for ghe-base-url'
         required: false
     enable-package-alias:
-        description: "If true, after setting up JFrog CLI the action runs 'jf package-alias install' and appends the alias directory to GITHUB_PATH so that mvn, npm, go, etc. are transparently intercepted in subsequent steps."
+        description: "If true, after setting up JFrog CLI the action runs 'jf package-alias install', appends the alias directory to GITHUB_PATH, and sets JFROG_CLI_GHOST_FROG so that mvn, npm, go, etc. are transparently intercepted in subsequent steps."
         default: "false"
         required: false
     package-alias-tools:
diff --git a/lib/utils.js b/lib/utils.js
index 3e3f302ca..5c3bd6c40 100644
--- a/lib/utils.js
+++ b/lib/utils.js
@@ -470,7 +470,7 @@ class Utils {
     }
     /**
      * If enable-package-alias is true and GITHUB_PATH is set, runs `jf package-alias install`
-     * and appends the alias bin directory to GITHUB_PATH so subsequent steps intercept mvn, npm, go, etc.
+     * and adds the alias bin directory to PATH via core.addPath so subsequent steps intercept mvn, npm, go, etc.
      * On failure (e.g. older CLI without package-alias), logs a warning and does not fail the job.
      */
     static setupPackageAliasIfRequested() {
@@ -513,8 +513,10 @@ class Utils {
                 return;
             }
             const aliasBinDir = Utils.getPackageAliasBinDir();
-            (0, fs_1.appendFileSync)(githubPath, aliasBinDir + '\n');
-            core.info('Package aliases installed and "' + aliasBinDir + '" appended to GITHUB_PATH.');
+            core.addPath(aliasBinDir);
+            // Ghost Frog interception is opt-in; without this env var the PATH shims do not activate.
+            Utils.exportVariableIfNotSet('JFROG_CLI_GHOST_FROG', 'true');
+            core.info('Package aliases installed and "' + aliasBinDir + '" added to PATH.');
         });
     }
 }
diff --git a/src/utils.ts b/src/utils.ts
index 8ff668407..345c7c8db 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -578,6 +578,8 @@ export class Utils {
         }
         const aliasBinDir = Utils.getPackageAliasBinDir();
         core.addPath(aliasBinDir);
+        // Ghost Frog interception is opt-in; without this env var the PATH shims do not activate.
+        Utils.exportVariableIfNotSet('JFROG_CLI_GHOST_FROG', 'true');
         core.info('Package aliases installed and "' + aliasBinDir + '" added to PATH.');
     }
 }
diff --git a/test/main.spec.ts b/test/main.spec.ts
index 19258b5a4..e1aac8bac 100644
--- a/test/main.spec.ts
+++ b/test/main.spec.ts
@@ -487,6 +487,7 @@ describe('setupPackageAliasIfRequested', () => {
         await Utils.setupPackageAliasIfRequested();
 
         expect(myExec.exec).toHaveBeenCalledWith('jf', ['package-alias', 'install'], { ignoreReturnCode: true });
+        expect(myCore.exportVariable).toHaveBeenCalledWith('JFROG_CLI_GHOST_FROG', 'true');
     });
 
     it('should pass normalized tools as --packages when package-alias-tools is provided', async () => {