diff --git a/src/modules/MouseUtils/MousePointerCrosshairs/MousePointerCrosshairs.vcxproj b/src/modules/MouseUtils/MousePointerCrosshairs/MousePointerCrosshairs.vcxproj
index 7da54a51e9..58668c663f 100644
--- a/src/modules/MouseUtils/MousePointerCrosshairs/MousePointerCrosshairs.vcxproj
+++ b/src/modules/MouseUtils/MousePointerCrosshairs/MousePointerCrosshairs.vcxproj
@@ -80,7 +80,7 @@
   </ItemDefinitionGroup>
   <ItemDefinitionGroup>
     <ClCompile>
-      <AdditionalIncludeDirectories>$(SolutionDir)src\;$(SolutionDir)src\modules;$(SolutionDir)src\common\Telemetry;%(AdditionalIncludeDirectories)</AdditionalIncludeDirectories>
+      <AdditionalIncludeDirectories>..\..\..\;..\..\..\modules;..\..\..\common\Telemetry;%(AdditionalIncludeDirectories)</AdditionalIncludeDirectories>
     </ClCompile>
   </ItemDefinitionGroup>
   <ItemGroup>
diff --git a/src/modules/MouseUtils/MousePointerCrosshairs/dllmain.cpp b/src/modules/MouseUtils/MousePointerCrosshairs/dllmain.cpp
index c58bfc1de2..fd144e807b 100644
--- a/src/modules/MouseUtils/MousePointerCrosshairs/dllmain.cpp
+++ b/src/modules/MouseUtils/MousePointerCrosshairs/dllmain.cpp
@@ -64,6 +64,9 @@ const static wchar_t* MODULE_NAME = L"MousePointerCrosshairs";
 // Add a description that will we shown in the module settings page.
 const static wchar_t* MODULE_DESC = L"<no description>";
 
+class MousePointerCrosshairs; // fwd
+static std::atomic<MousePointerCrosshairs*> g_instance{ nullptr }; // for hook callback
+
 // Implement the PowerToy Module Interface and all the required methods.
 class MousePointerCrosshairs : public PowertoyModuleIface
 {
@@ -72,8 +75,11 @@ private:
     bool m_enabled = false;
 
     // Additional hotkeys (legacy API) to support multiple shortcuts
-    Hotkey m_activationHotkey{};    // Crosshairs toggle
-    Hotkey m_glidingHotkey{};       // Gliding cursor state machine
+    Hotkey m_activationHotkey{}; // Crosshairs toggle
+    Hotkey m_glidingHotkey{}; // Gliding cursor state machine
+
+    // Low-level keyboard hook (Escape to cancel gliding)
+    HHOOK m_keyboardHook = nullptr;
 
     // Shared state for worker threads (decoupled from this lifetime)
     struct State
@@ -86,7 +92,7 @@ private:
         int currentYPos{ 0 };
         int currentXSpeed{ 0 }; // pixels per base window
         int currentYSpeed{ 0 }; // pixels per base window
-        int xPosSnapshot{ 0 };  // xPos captured at end of horizontal scan
+        int xPosSnapshot{ 0 }; // xPos captured at end of horizontal scan
 
         // Fractional accumulators to spread movement across 10ms ticks
         double xFraction{ 0.0 };
@@ -94,9 +100,9 @@ private:
 
         // Speeds represent pixels per 200ms (min 5, max 60 enforced by UI/settings)
         int fastHSpeed{ 30 }; // pixels per base window
-        int slowHSpeed{ 5 };  // pixels per base window
+        int slowHSpeed{ 5 }; // pixels per base window
         int fastVSpeed{ 30 }; // pixels per base window
-        int slowVSpeed{ 5 };  // pixels per base window
+        int slowVSpeed{ 5 }; // pixels per base window
     };
 
     std::shared_ptr<State> m_state;
@@ -122,13 +128,16 @@ public:
         LoggerHelpers::init_logger(MODULE_NAME, L"ModuleInterface", LogSettings::mousePointerCrosshairsLoggerName);
         m_state = std::make_shared<State>();
         init_settings();
+        g_instance.store(this, std::memory_order_release);
     };
 
     // Destroy the powertoy and free memory
     virtual void destroy() override
     {
+        UninstallKeyboardHook();
         StopXTimer();
         StopYTimer();
+        g_instance.store(nullptr, std::memory_order_release);
         // Release shared state so worker threads (if any) exit when weak_ptr lock fails
         m_state.reset();
         delete this;
@@ -198,6 +207,7 @@ public:
     {
         m_enabled = false;
         Trace::EnableMousePointerCrosshairs(false);
+        UninstallKeyboardHook();
         StopXTimer();
         StopYTimer();
         m_glideState = 0;
@@ -222,7 +232,7 @@ public:
         if (buffer && buffer_size >= 2)
         {
             buffer[0] = m_activationHotkey; // Crosshairs toggle
-            buffer[1] = m_glidingHotkey;    // Gliding cursor toggle
+            buffer[1] = m_glidingHotkey; // Gliding cursor toggle
         }
         return 2;
     }
@@ -258,6 +268,27 @@ private:
         SendInput(2, inputs, sizeof(INPUT));
     }
 
+    // Cancel gliding without performing the final click (Escape handling)
+    void CancelGliding()
+    {
+        int state = m_glideState.load();
+        if (state == 0)
+        {
+            return; // nothing to cancel
+        }
+        StopXTimer();
+        StopYTimer();
+        m_glideState = 0;
+        InclusiveCrosshairsEnsureOff();
+        InclusiveCrosshairsSetExternalControl(false);
+        if (auto s = m_state)
+        {
+            s->xFraction = 0.0;
+            s->yFraction = 0.0;
+        }
+        Logger::debug("Gliding cursor cancelled via Escape key");
+    }
+
     // Stateless helpers operating on shared State
     static void PositionCursorX(const std::shared_ptr<State>& s)
     {
@@ -400,6 +431,8 @@ private:
         {
         case 0:
         {
+            // For detect for cancel key
+            InstallKeyboardHook();
             // Ensure crosshairs on (do not toggle off if already on)
             InclusiveCrosshairsEnsureOn();
             // Disable internal mouse hook so we control position updates explicitly
@@ -448,6 +481,7 @@ private:
         case 4:
         default:
         {
+            UninstallKeyboardHook();
             // Stop vertical, click, turn crosshairs off, re-enable internal tracking, reset state
             StopYTimer();
             m_glideState = 0;
@@ -463,6 +497,51 @@ private:
         }
     }
 
+    // Low-level keyboard hook procedures
+    static LRESULT CALLBACK LowLevelKeyboardProc(int nCode, WPARAM wParam, LPARAM lParam)
+    {
+        if (nCode == HC_ACTION)
+        {
+            const KBDLLHOOKSTRUCT* kb = reinterpret_cast<KBDLLHOOKSTRUCT*>(lParam);
+            if (kb && kb->vkCode == VK_ESCAPE && (wParam == WM_KEYDOWN || wParam == WM_SYSKEYDOWN))
+            {
+                if (auto inst = g_instance.load(std::memory_order_acquire))
+                {
+                    if (inst->m_enabled && inst->m_glideState.load() != 0)
+                    {
+                        inst->UninstallKeyboardHook();
+                        inst->CancelGliding();
+                    }
+                }
+            }
+        }
+
+        // Do not swallow Escape; pass it through
+        return CallNextHookEx(nullptr, nCode, wParam, lParam);
+    }
+
+    void InstallKeyboardHook()
+    {
+        if (m_keyboardHook)
+        {
+            return; // already installed
+        }
+        m_keyboardHook = SetWindowsHookEx(WH_KEYBOARD_LL, LowLevelKeyboardProc, m_hModule, 0);
+        if (!m_keyboardHook)
+        {
+            Logger::error("Failed to install low-level keyboard hook for MousePointerCrosshairs (Escape cancel). GetLastError={}.", GetLastError());
+        }
+    }
+
+    void UninstallKeyboardHook()
+    {
+        if (m_keyboardHook)
+        {
+            UnhookWindowsHookEx(m_keyboardHook);
+            m_keyboardHook = nullptr;
+        }
+    }
+
     // Load the settings file.
     void init_settings()
     {