diff --git a/src/modules/ShortcutGuide/ShortcutGuide.Ui/Helpers/ShortcutGuideActivationPolicy.cs b/src/modules/ShortcutGuide/ShortcutGuide.Ui/Helpers/ShortcutGuideActivationPolicy.cs
index 3a6aad81b0..d2e4498d0c 100644
--- a/src/modules/ShortcutGuide/ShortcutGuide.Ui/Helpers/ShortcutGuideActivationPolicy.cs
+++ b/src/modules/ShortcutGuide/ShortcutGuide.Ui/Helpers/ShortcutGuideActivationPolicy.cs
@@ -33,10 +33,16 @@ public static class ShortcutGuideActivationPolicy
     public static ShortcutGuideActivationAction GetActivationAction(
         ShortcutGuideActivationSource activationSource,
         bool isOverlayVisible,
+        bool isCurrentWindowExcluded,
         ShortcutGuideActivationSource activeSource,
         ShortcutGuideOverlaySurface activeSurface,
         ShortcutGuideWindowsKeyAction windowsKeyAction)
     {
+        if (!isOverlayVisible && isCurrentWindowExcluded)
+        {
+            return ShortcutGuideActivationAction.None;
+        }
+
         if (!isOverlayVisible)
         {
             activeSource = ShortcutGuideActivationSource.None;
diff --git a/src/modules/ShortcutGuide/ShortcutGuide.Ui/Program.cs b/src/modules/ShortcutGuide/ShortcutGuide.Ui/Program.cs
index aa85bb682a..3474cf1e0d 100644
--- a/src/modules/ShortcutGuide/ShortcutGuide.Ui/Program.cs
+++ b/src/modules/ShortcutGuide/ShortcutGuide.Ui/Program.cs
@@ -55,11 +55,6 @@ namespace ShortcutGuide
 
             Directory.CreateDirectory(ManifestInterpreter.PathOfManifestFiles);
 
-            if (NativeMethods.IsCurrentWindowExcludedFromShortcutGuide())
-            {
-                return;
-            }
-
             // Copy every shipped manifest from the install directory to the per-user manifest folder.
             // Enumerating the source folder avoids drift between the deployed assets and a hard-coded list.
             // Todo: Only copy files after an update.
diff --git a/src/modules/ShortcutGuide/ShortcutGuide.Ui/ShortcutGuideXAML/App.xaml.cs b/src/modules/ShortcutGuide/ShortcutGuide.Ui/ShortcutGuideXAML/App.xaml.cs
index c344eef5ad..d6b06005b3 100644
--- a/src/modules/ShortcutGuide/ShortcutGuide.Ui/ShortcutGuideXAML/App.xaml.cs
+++ b/src/modules/ShortcutGuide/ShortcutGuide.Ui/ShortcutGuideXAML/App.xaml.cs
@@ -251,16 +251,24 @@ namespace ShortcutGuide
             try
             {
                 bool isOverlayVisible = OverlayWindow.AppWindow.IsVisible;
+                bool isCurrentWindowExcluded =
+                    !isOverlayVisible && NativeMethods.IsCurrentWindowExcludedFromShortcutGuide();
                 var activeSource = (ShortcutGuideActivationSource)Volatile.Read(ref _activeSource);
                 var activeSurface = (ShortcutGuideOverlaySurface)Volatile.Read(ref _activeSurface);
                 var windowsKeyAction = (ShortcutGuideWindowsKeyAction)ShortcutGuideProperties.WindowsKeyAction.Value;
                 var action = ShortcutGuideActivationPolicy.GetActivationAction(
                     activationSource,
                     isOverlayVisible,
+                    isCurrentWindowExcluded,
                     activeSource,
                     activeSurface,
                     windowsKeyAction);
 
+                if (isCurrentWindowExcluded)
+                {
+                    Logger.LogInfo("Shortcut Guide activation suppressed because the foreground application is excluded.");
+                }
+
                 Logger.LogInfo($"Shortcut Guide activation action: {action}.");
                 switch (action)
                 {
diff --git a/src/modules/ShortcutGuide/ShortcutGuide.UnitTests/ActivationTests/ShortcutGuideActivationPolicyTests.cs b/src/modules/ShortcutGuide/ShortcutGuide.UnitTests/ActivationTests/ShortcutGuideActivationPolicyTests.cs
index 408e28699a..c8edf38777 100644
--- a/src/modules/ShortcutGuide/ShortcutGuide.UnitTests/ActivationTests/ShortcutGuideActivationPolicyTests.cs
+++ b/src/modules/ShortcutGuide/ShortcutGuide.UnitTests/ActivationTests/ShortcutGuideActivationPolicyTests.cs
@@ -22,6 +22,7 @@ public sealed class ShortcutGuideActivationPolicyTests
         var action = ShortcutGuideActivationPolicy.GetActivationAction(
             ShortcutGuideActivationSource.WindowsKeyHold,
             isOverlayVisible: false,
+            isCurrentWindowExcluded: false,
             ShortcutGuideActivationSource.None,
             ShortcutGuideOverlaySurface.Hidden,
             windowsKeyAction);
@@ -38,6 +39,7 @@ public sealed class ShortcutGuideActivationPolicyTests
         var action = ShortcutGuideActivationPolicy.GetActivationAction(
             ShortcutGuideActivationSource.RegularHotkey,
             isOverlayVisible: false,
+            isCurrentWindowExcluded: false,
             ShortcutGuideActivationSource.None,
             ShortcutGuideOverlaySurface.Hidden,
             windowsKeyAction);
@@ -51,6 +53,7 @@ public sealed class ShortcutGuideActivationPolicyTests
         var action = ShortcutGuideActivationPolicy.GetActivationAction(
             ShortcutGuideActivationSource.RegularHotkey,
             isOverlayVisible: true,
+            isCurrentWindowExcluded: false,
             ShortcutGuideActivationSource.WindowsKeyHold,
             ShortcutGuideOverlaySurface.TaskbarIndicators,
             ShortcutGuideWindowsKeyAction.TaskbarIndicators);
@@ -64,6 +67,7 @@ public sealed class ShortcutGuideActivationPolicyTests
         var action = ShortcutGuideActivationPolicy.GetActivationAction(
             ShortcutGuideActivationSource.RegularHotkey,
             isOverlayVisible: true,
+            isCurrentWindowExcluded: false,
             ShortcutGuideActivationSource.WindowsKeyHold,
             ShortcutGuideOverlaySurface.FullGuide,
             ShortcutGuideWindowsKeyAction.OpenShortcutGuide);
@@ -77,6 +81,7 @@ public sealed class ShortcutGuideActivationPolicyTests
         var action = ShortcutGuideActivationPolicy.GetActivationAction(
             ShortcutGuideActivationSource.RegularHotkey,
             isOverlayVisible: true,
+            isCurrentWindowExcluded: false,
             ShortcutGuideActivationSource.RegularHotkey,
             ShortcutGuideOverlaySurface.FullGuide,
             ShortcutGuideWindowsKeyAction.TaskbarIndicators);
@@ -90,6 +95,7 @@ public sealed class ShortcutGuideActivationPolicyTests
         var action = ShortcutGuideActivationPolicy.GetActivationAction(
             ShortcutGuideActivationSource.WindowsKeyHold,
             isOverlayVisible: true,
+            isCurrentWindowExcluded: false,
             ShortcutGuideActivationSource.RegularHotkey,
             ShortcutGuideOverlaySurface.FullGuide,
             ShortcutGuideWindowsKeyAction.OpenShortcutGuide);
@@ -97,6 +103,50 @@ public sealed class ShortcutGuideActivationPolicyTests
         Assert.AreEqual(ShortcutGuideActivationAction.None, action);
     }
 
+    [TestMethod]
+    [DataRow(ShortcutGuideActivationSource.RegularHotkey, ShortcutGuideWindowsKeyAction.TaskbarIndicators)]
+    [DataRow(ShortcutGuideActivationSource.WindowsKeyHold, ShortcutGuideWindowsKeyAction.TaskbarIndicators)]
+    [DataRow(ShortcutGuideActivationSource.WindowsKeyHold, ShortcutGuideWindowsKeyAction.OpenShortcutGuide)]
+    public void GetActivationAction_ExcludedApp_SuppressesHiddenOverlay(
+        ShortcutGuideActivationSource activationSource,
+        ShortcutGuideWindowsKeyAction windowsKeyAction)
+    {
+        var action = ShortcutGuideActivationPolicy.GetActivationAction(
+            activationSource,
+            isOverlayVisible: false,
+            isCurrentWindowExcluded: true,
+            ShortcutGuideActivationSource.None,
+            ShortcutGuideOverlaySurface.Hidden,
+            windowsKeyAction);
+
+        Assert.AreEqual(ShortcutGuideActivationAction.None, action);
+    }
+
+    [TestMethod]
+    [DataRow(
+        ShortcutGuideActivationSource.RegularHotkey,
+        ShortcutGuideOverlaySurface.FullGuide,
+        ShortcutGuideActivationAction.Close)]
+    [DataRow(
+        ShortcutGuideActivationSource.WindowsKeyHold,
+        ShortcutGuideOverlaySurface.TaskbarIndicators,
+        ShortcutGuideActivationAction.ShowFullGuide)]
+    public void GetActivationAction_ExcludedApp_DoesNotSuppressVisibleOverlay(
+        ShortcutGuideActivationSource activeSource,
+        ShortcutGuideOverlaySurface activeSurface,
+        ShortcutGuideActivationAction expected)
+    {
+        var action = ShortcutGuideActivationPolicy.GetActivationAction(
+            ShortcutGuideActivationSource.RegularHotkey,
+            isOverlayVisible: true,
+            isCurrentWindowExcluded: true,
+            activeSource,
+            activeSurface,
+            ShortcutGuideWindowsKeyAction.TaskbarIndicators);
+
+        Assert.AreEqual(expected, action);
+    }
+
     [TestMethod]
     [DataRow(ShortcutGuideActivationSource.RegularHotkey, ShortcutGuideOverlaySurface.FullGuide, true, false)]
     [DataRow(ShortcutGuideActivationSource.RegularHotkey, ShortcutGuideOverlaySurface.FullGuide, false, false)]