diff --git a/CHANGELOG.md b/CHANGELOG.md
index e0bf73d17..c3e3694a5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -32,6 +32,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/).
 - Fixed double-paste into `Input` https://github.com/Textualize/textual/issues/1657
 - Added a workaround for an apparent Windows Terminal paste issue https://github.com/Textualize/textual/issues/1661
 - Fixes issue with renderable width calculation https://github.com/Textualize/textual/issues/1685
+- Fixed issue with app not processing Paste event https://github.com/Textualize/textual/issues/1666
 
 ## [0.10.1] - 2023-01-20
 
diff --git a/src/textual/app.py b/src/textual/app.py
index 46ac67903..6abf74839 100644
--- a/src/textual/app.py
+++ b/src/textual/app.py
@@ -1901,9 +1901,11 @@ class App(Generic[ReturnType], DOMNode):
             else:
                 await self.screen._forward_event(event)
 
-        elif isinstance(event, events.Paste):
+        elif isinstance(event, events.Paste) and not event.is_forwarded:
             if self.focused is not None:
                 await self.focused._forward_event(event)
+            else:
+                await self.screen._forward_event(event)
         else:
             await super().on_event(event)
 
diff --git a/src/textual/events.py b/src/textual/events.py
index d2f7dfe49..9914c03d5 100644
--- a/src/textual/events.py
+++ b/src/textual/events.py
@@ -7,7 +7,7 @@ from rich.style import Style
 
 from ._types import MessageTarget
 from .geometry import Offset, Size
-from .keys import _get_key_aliases, _get_key_display
+from .keys import _get_key_aliases
 from .message import Message
 
 MouseEventT = TypeVar("MouseEventT", bound="MouseEvent")
diff --git a/tests/test_paste.py b/tests/test_paste.py
new file mode 100644
index 000000000..58c5da41d
--- /dev/null
+++ b/tests/test_paste.py
@@ -0,0 +1,18 @@
+from textual.app import App
+from textual import events
+
+
+async def test_paste_app():
+    paste_events = []
+
+    class PasteApp(App):
+        def on_paste(self, event):
+            paste_events.append(event)
+
+    app = PasteApp()
+    async with app.run_test() as pilot:
+        await app.post_message(events.Paste(sender=app, text="Hello"))
+        await pilot.pause(0)
+
+    assert len(paste_events) == 1
+    assert paste_events[0].text == "Hello"