diff --git a/src/modules/MouseUtils/CursorWrap/dllmain.cpp b/src/modules/MouseUtils/CursorWrap/dllmain.cpp
index ece1948d01..74524ed9f9 100644
--- a/src/modules/MouseUtils/CursorWrap/dllmain.cpp
+++ b/src/modules/MouseUtils/CursorWrap/dllmain.cpp
@@ -196,10 +196,10 @@ public:
         m_enabled = true;
         Trace::EnableCursorWrap(true);
         
-        if (m_autoActivate)
-        {
-            StartMouseHook();
-        }
+        // Always start the mouse hook when the module is enabled
+        // This ensures cursor wrapping is active immediately after enabling
+        StartMouseHook();
+        Logger::info("CursorWrap enabled - mouse hook started");
     }
 
     // Disable the powertoy
@@ -208,6 +208,7 @@ public:
         m_enabled = false;
         Trace::EnableCursorWrap(false);
         StopMouseHook();
+        Logger::info("CursorWrap disabled - mouse hook stopped");
     }
 
     // Returns if the powertoys is enabled
diff --git a/src/settings-ui/Settings.UI/ViewModels/MouseUtilsViewModel.cs b/src/settings-ui/Settings.UI/ViewModels/MouseUtilsViewModel.cs
index 518b2a6fa4..27695d1037 100644
--- a/src/settings-ui/Settings.UI/ViewModels/MouseUtilsViewModel.cs
+++ b/src/settings-ui/Settings.UI/ViewModels/MouseUtilsViewModel.cs
@@ -1000,6 +1000,13 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
                     GeneralSettingsConfig.Enabled.CursorWrap = value;
                     OnPropertyChanged(nameof(IsCursorWrapEnabled));
 
+                    // Auto-enable the AutoActivate setting when CursorWrap is enabled
+                    // This ensures cursor wrapping is active immediately after enabling
+                    if (value && !_cursorWrapAutoActivate)
+                    {
+                        CursorWrapAutoActivate = true;
+                    }
+
                     OutGoingGeneralSettings outgoing = new OutGoingGeneralSettings(GeneralSettingsConfig);
                     SendConfigMSG(outgoing.ToString());