diff --git a/src/settings-ui/Settings.UI.Library/HotkeySettingsControlHook.cs b/src/settings-ui/Settings.UI.Library/HotkeySettingsControlHook.cs
index 64143f716a..d405d52d00 100644
--- a/src/settings-ui/Settings.UI.Library/HotkeySettingsControlHook.cs
+++ b/src/settings-ui/Settings.UI.Library/HotkeySettingsControlHook.cs
@@ -79,6 +79,8 @@ namespace Microsoft.PowerToys.Settings.UI.Library
             }
         }
 
+        public bool GetDisposedState() => disposedValue;
+
         public void Dispose()
         {
             Dispose(disposing: true);
diff --git a/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutControl.xaml.cs b/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutControl.xaml.cs
index 52f6750684..38ae3adb59 100644
--- a/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutControl.xaml.cs
+++ b/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutControl.xaml.cs
@@ -89,6 +89,8 @@ namespace Microsoft.PowerToys.Settings.UI.Controls
             hook = new HotkeySettingsControlHook(Hotkey_KeyDown, Hotkey_KeyUp, Hotkey_IsActive, FilterAccessibleKeyboardEvents);
             ResourceLoader resourceLoader = ResourceLoader.GetForViewIndependentUse();
 
+            App.GetSettingsWindow().Activated += ShortcutDialog_SettingsWindow_Activated;
+
             // We create the Dialog in C# because doing it in XAML is giving WinUI/XAML Island bugs when using dark theme.
             shortcutDialog = new ContentDialog
             {
@@ -111,6 +113,8 @@ namespace Microsoft.PowerToys.Settings.UI.Controls
             shortcutDialog.Opened -= ShortcutDialog_Opened;
             shortcutDialog.Closing -= ShortcutDialog_Closing;
 
+            App.GetSettingsWindow().Activated -= ShortcutDialog_SettingsWindow_Activated;
+
             // Dispose the HotkeySettingsControlHook object to terminate the hook threads when the textbox is unloaded
             hook.Dispose();
         }
@@ -336,6 +340,7 @@ namespace Microsoft.PowerToys.Settings.UI.Controls
             c.Keys = HotkeySettings.GetKeysList();
 
             shortcutDialog.XamlRoot = this.XamlRoot;
+            shortcutDialog.RequestedTheme = this.ActualTheme;
             await shortcutDialog.ShowAsync();
         }
 
@@ -363,6 +368,21 @@ namespace Microsoft.PowerToys.Settings.UI.Controls
             }
         }
 
+        private void ShortcutDialog_SettingsWindow_Activated(object sender, WindowActivatedEventArgs args)
+        {
+            args.Handled = true;
+            if (args.WindowActivationState != WindowActivationState.Deactivated && hook.GetDisposedState() == true)
+            {
+                // If the PT settings window gets focussed/activated again, we enable the keyboard hook to catch the keyboard input.
+                hook = new HotkeySettingsControlHook(Hotkey_KeyDown, Hotkey_KeyUp, Hotkey_IsActive, FilterAccessibleKeyboardEvents);
+            }
+            else if (args.WindowActivationState == WindowActivationState.Deactivated && hook.GetDisposedState() == false)
+            {
+                // If the PT settings window lost focus/activation, we disable the keyboard hook to allow keyboard input on other windows.
+                hook.Dispose();
+            }
+        }
+
         private void ShortcutDialog_Closing(ContentDialog sender, ContentDialogClosingEventArgs args)
         {
             _isActive = false;
diff --git a/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutDialogContentControl.xaml b/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutDialogContentControl.xaml
index 2ea9aa3d94..0429f5dae4 100644
--- a/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutDialogContentControl.xaml
+++ b/src/settings-ui/Settings.UI/Controls/ShortcutControl/ShortcutDialogContentControl.xaml
@@ -56,39 +56,14 @@
             VerticalAlignment="Top"
             Orientation="Vertical"
             Spacing="8">
-            <Grid Height="36">
+            <Grid Height="62">
 
-                <Border
-                    x:Name="WarningBanner"
-                    Margin="-2,0,0,0"
-                    Padding="8"
-                    Background="{ThemeResource InfoBarErrorSeverityBackgroundBrush}"
-                    BorderBrush="{ThemeResource InfoBarBorderBrush}"
-                    BorderThickness="{ThemeResource InfoBarBorderThickness}"
-                    CornerRadius="{ThemeResource ControlCornerRadius}"
-                    Visibility="{Binding ElementName=ShortcutContentControl, Path=IsError, Mode=OneWay, Converter={StaticResource BoolToVisibilityConverter}}">
-                    <Grid>
-                        <Grid.ColumnDefinitions>
-                            <ColumnDefinition Width="Auto" />
-                            <ColumnDefinition Width="*" />
-                        </Grid.ColumnDefinitions>
+                <InfoBar x:Uid="InvalidShortcut"
+                         IsClosable="False"
+                         IsOpen="{Binding ElementName=ShortcutContentControl, Path=IsError, Mode=OneWay}"
+                         IsTabStop="{Binding ElementName=ShortcutContentControl, Path=IsError, Mode=OneWay}"
+                         Severity="Error" />
 
-                        <!--TODO(stefan) InfoBadge not available
-                        <InfoBadge AutomationProperties.AccessibilityView="Raw"
-                                        Margin="2,0,12,0"
-                                        Style="{StaticResource CriticalIconInfoBadgeStyle}" />
-                        -->
-
-                        <TextBlock
-                            x:Name="InvalidShortcutWarningLabel"
-                            x:Uid="InvalidShortcut"
-                            Grid.Column="1"
-                            Margin="0,-1,0,0"
-                            VerticalAlignment="Center"
-                            FontWeight="{ThemeResource InfoBarTitleFontWeight}"
-                            Foreground="{ThemeResource InfoBarTitleForeground}" />
-                    </Grid>
-                </Border>
             </Grid>
             <toolkitcontrols:MarkdownTextBlock
                 x:Uid="InvalidShortcutWarningLabel"
diff --git a/src/settings-ui/Settings.UI/Strings/en-us/Resources.resw b/src/settings-ui/Settings.UI/Strings/en-us/Resources.resw
index 8ae33c5fa1..a1d43484f1 100644
--- a/src/settings-ui/Settings.UI/Strings/en-us/Resources.resw
+++ b/src/settings-ui/Settings.UI/Strings/en-us/Resources.resw
@@ -2119,11 +2119,12 @@ From there, simply click on one of the supported files in the File Explorer and
   <data name="Activation_Shortcut_Title" xml:space="preserve">
     <value>Activation shortcut</value>
   </data>
-  <data name="InvalidShortcut.Text" xml:space="preserve">
+  <data name="InvalidShortcut.Title" xml:space="preserve">
     <value>Invalid shortcut</value>
   </data>
   <data name="InvalidShortcutWarningLabel.Text" xml:space="preserve">
     <value>Only shortcuts that start with **Windows key**, **Ctrl**, **Alt** or **Shift** are valid.</value>
+    <comment>The ** sequences are used for text formatting of the key names. Don't remove them on translation.</comment>
   </data>
   <data name="FancyZones_SpanZonesAcrossMonitors.Description" xml:space="preserve">
     <value>All monitors must have the same DPI scaling and will be treated as one large combined rectangle which contains all monitors</value>
@@ -3115,4 +3116,4 @@ Activate by holding the key for the character you want to add an accent to, then
   <data name="RegistryPreview_LaunchButtonControl.Header" xml:space="preserve">
     <value>Launch Registry Preview</value>
   </data>
-</root>
+</root>
\ No newline at end of file