diff --git a/src/cascadia/TerminalApp/AppLogic.cpp b/src/cascadia/TerminalApp/AppLogic.cpp
index 72f25b83e..b7e1c0ff3 100644
--- a/src/cascadia/TerminalApp/AppLogic.cpp
+++ b/src/cascadia/TerminalApp/AppLogic.cpp
@@ -375,6 +375,8 @@ namespace winrt::TerminalApp::implementation
             co_return ContentDialogResult::None;
         }
 
+        _dialog = dialog;
+
         // IMPORTANT: This is necessary as documented in the ContentDialog MSDN docs.
         // Since we're hosting the dialog in a Xaml island, we need to connect it to the
         // xaml tree somehow.
@@ -412,6 +414,16 @@ namespace winrt::TerminalApp::implementation
         // be released so another can be shown
     }
 
+    // Method Description:
+    // - Dismiss the (only) visible ContentDialog
+    void AppLogic::DismissDialog()
+    {
+        if (auto localDialog = std::exchange(_dialog, nullptr))
+        {
+            localDialog.Hide();
+        }
+    }
+
     // Method Description:
     // - Displays a dialog for errors found while loading or validating the
     //   settings. Uses the resources under the provided  title and content keys
diff --git a/src/cascadia/TerminalApp/AppLogic.h b/src/cascadia/TerminalApp/AppLogic.h
index 17bd61aaa..e121043d1 100644
--- a/src/cascadia/TerminalApp/AppLogic.h
+++ b/src/cascadia/TerminalApp/AppLogic.h
@@ -106,6 +106,7 @@ namespace winrt::TerminalApp::implementation
         bool GetShowTitleInTitlebar();
 
         winrt::Windows::Foundation::IAsyncOperation<winrt::Windows::UI::Xaml::Controls::ContentDialogResult> ShowDialog(winrt::Windows::UI::Xaml::Controls::ContentDialog dialog);
+        void DismissDialog();
 
         Windows::Foundation::Collections::IMapView<Microsoft::Terminal::Control::KeyChord, Microsoft::Terminal::Settings::Model::Command> GlobalHotkeys();
 
@@ -132,6 +133,7 @@ namespace winrt::TerminalApp::implementation
         uint64_t _numOpenWindows{ 0 };
 
         std::shared_mutex _dialogLock;
+        winrt::Windows::UI::Xaml::Controls::ContentDialog _dialog;
 
         ::TerminalApp::AppCommandlineArgs _appArgs;
         ::TerminalApp::AppCommandlineArgs _settingsAppArgs;
diff --git a/src/cascadia/TerminalApp/AppLogic.idl b/src/cascadia/TerminalApp/AppLogic.idl
index cfe93321a..674322d35 100644
--- a/src/cascadia/TerminalApp/AppLogic.idl
+++ b/src/cascadia/TerminalApp/AppLogic.idl
@@ -91,6 +91,7 @@ namespace TerminalApp
         // See IDialogPresenter and TerminalPage's DialogPresenter for more
         // information.
         Windows.Foundation.IAsyncOperation<Windows.UI.Xaml.Controls.ContentDialogResult> ShowDialog(Windows.UI.Xaml.Controls.ContentDialog dialog);
+        void DismissDialog();
 
         event Windows.Foundation.TypedEventHandler<Object, Windows.UI.Xaml.UIElement> SetTitleBarContent;
         event Windows.Foundation.TypedEventHandler<Object, String> TitleChanged;
diff --git a/src/cascadia/WindowsTerminal/AppHost.cpp b/src/cascadia/WindowsTerminal/AppHost.cpp
index c2b8dcda2..aa84b9e9e 100644
--- a/src/cascadia/WindowsTerminal/AppHost.cpp
+++ b/src/cascadia/WindowsTerminal/AppHost.cpp
@@ -1316,6 +1316,11 @@ void AppHost::_WindowMoved()
 {
     if (_logic)
     {
+        // Ensure any open ContentDialog is dismissed.
+        // Closing the popup in the UI tree as done below is not sufficient because
+        // it does not terminate the dialog's async operation.
+        _logic.DismissDialog();
+
         const auto root{ _logic.GetRoot() };
 
         // This is basically DismissAllPopups which is also in