diff --git a/src/core/service.c b/src/core/service.c
index f6fa5d184b..c3f9fb4703 100644
--- a/src/core/service.c
+++ b/src/core/service.c
@@ -650,24 +650,37 @@ static int service_add_default_dependencies(Service *s) {
         return unit_add_two_dependencies_by_name(UNIT(s), UNIT_BEFORE, UNIT_CONFLICTS, SPECIAL_SHUTDOWN_TARGET, true, UNIT_DEPENDENCY_DEFAULT);
 }
 
-static void service_fix_output(Service *s) {
+static void service_fix_stdio(Service *s) {
         assert(s);
 
-        /* If nothing has been explicitly configured, patch default output in. If input is socket/tty we avoid this
-         * however, since in that case we want output to default to the same place as we read input from. */
-
-        if (s->exec_context.std_error == EXEC_OUTPUT_INHERIT &&
-            s->exec_context.std_output == EXEC_OUTPUT_INHERIT &&
-            s->exec_context.std_input == EXEC_INPUT_NULL)
-                s->exec_context.std_error = UNIT(s)->manager->default_std_error;
-
-        if (s->exec_context.std_output == EXEC_OUTPUT_INHERIT &&
-            s->exec_context.std_input == EXEC_INPUT_NULL)
-                s->exec_context.std_output = UNIT(s)->manager->default_std_output;
+        /* Note that EXEC_INPUT_NULL and EXEC_OUTPUT_INHERIT play a special role here: they are both the
+         * default value that is subject to automatic overriding triggered by other settings and an explicit
+         * choice the user can make. We don't distuingish between these cases currently. */
 
         if (s->exec_context.std_input == EXEC_INPUT_NULL &&
             s->exec_context.stdin_data_size > 0)
                 s->exec_context.std_input = EXEC_INPUT_DATA;
+
+        if (IN_SET(s->exec_context.std_input,
+                    EXEC_INPUT_TTY,
+                    EXEC_INPUT_TTY_FORCE,
+                    EXEC_INPUT_TTY_FAIL,
+                    EXEC_INPUT_SOCKET,
+                    EXEC_INPUT_NAMED_FD))
+                return;
+
+        /* We assume these listed inputs refer to bidirectional streams, and hence duplicating them from
+         * stdin to stdout/stderr makes sense and hence leaving EXEC_OUTPUT_INHERIT in place makes sense,
+         * too. Outputs such as regular files or sealed data memfds otoh don't really make sense to be
+         * duplicated for both input and output at the same time (since they then would cause a feedback
+         * loop), hence override EXEC_OUTPUT_INHERIT with the default stderr/stdout setting.  */
+
+        if (s->exec_context.std_error == EXEC_OUTPUT_INHERIT &&
+            s->exec_context.std_output == EXEC_OUTPUT_INHERIT)
+                s->exec_context.std_error = UNIT(s)->manager->default_std_error;
+
+        if (s->exec_context.std_output == EXEC_OUTPUT_INHERIT)
+                s->exec_context.std_output = UNIT(s)->manager->default_std_output;
 }
 
 static int service_setup_bus_name(Service *s) {
@@ -715,7 +728,7 @@ static int service_add_extras(Service *s) {
         if (s->type == SERVICE_ONESHOT && !s->start_timeout_defined)
                 s->timeout_start_usec = USEC_INFINITY;
 
-        service_fix_output(s);
+        service_fix_stdio(s);
 
         r = unit_patch_contexts(UNIT(s));
         if (r < 0)
diff --git a/src/test/test-execute.c b/src/test/test-execute.c
index b3f8cc8434..ff40e0dd43 100644
--- a/src/test/test-execute.c
+++ b/src/test/test-execute.c
@@ -756,6 +756,7 @@ static void test_exec_specifier(Manager *m) {
 static void test_exec_standardinput(Manager *m) {
         test(__func__, m, "exec-standardinput-data.service", 0, CLD_EXITED);
         test(__func__, m, "exec-standardinput-file.service", 0, CLD_EXITED);
+        test(__func__, m, "exec-standardinput-file-cat.service", 0, CLD_EXITED);
 }
 
 static void test_exec_standardoutput(Manager *m) {
@@ -786,6 +787,7 @@ static int run_tests(UnitFileScope scope, const test_entry tests[], char **patte
         assert_se(tests);
 
         r = manager_new(scope, MANAGER_TEST_RUN_BASIC, &m);
+        m->default_std_output = EXEC_OUTPUT_NULL; /* don't rely on host journald */
         if (manager_errno_skip_test(r))
                 return log_tests_skipped_errno(r, "manager_new");
         assert_se(r >= 0);
diff --git a/test/meson.build b/test/meson.build
index 237b4db12c..856e4a434d 100644
--- a/test/meson.build
+++ b/test/meson.build
@@ -138,6 +138,7 @@ test_data_files = '''
         test-execute/exec-specifier@.service
         test-execute/exec-standardinput-data.service
         test-execute/exec-standardinput-file.service
+        test-execute/exec-standardinput-file-cat.service
         test-execute/exec-standardoutput-file.service
         test-execute/exec-standardoutput-append.service
         test-execute/exec-supplementarygroups-multiple-groups-default-group-user.service
diff --git a/test/test-execute/exec-standardinput-file-cat.service b/test/test-execute/exec-standardinput-file-cat.service
new file mode 100644
index 0000000000..a0c786c301
--- /dev/null
+++ b/test/test-execute/exec-standardinput-file-cat.service
@@ -0,0 +1,9 @@
+[Unit]
+Description=Test for StandardInput=file:
+
+[Service]
+ExecStart=cat
+Type=oneshot
+StandardInput=file:/etc/os-release
+# We leave StandardOutput= unset here, to verify https://github.com/systemd/systemd/issues/14560 works
+# The "cat" tool is going to write to stdout, which fails if we dup() stdin to stdout