diff --git a/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/WindowExtensions.cs b/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/WindowExtensions.cs
index ee782766bc..aa6dde458b 100644
--- a/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/WindowExtensions.cs
+++ b/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/WindowExtensions.cs
@@ -59,6 +59,16 @@ internal static class WindowExtensions
         return wasSet;
     }
 
+    /// <summary>
+    /// Returns true if the specified extended window style flag(s) are currently set on the window.
+    /// </summary>
+    internal static bool HasExtendedStyle(this Window window, WINDOW_EX_STYLE style)
+    {
+        var hWnd = GetWindowHwnd(window);
+        var currentStyle = (WINDOW_EX_STYLE)PInvoke.GetWindowLong(hWnd, WINDOW_LONG_PTR_INDEX.GWL_EXSTYLE);
+        return (currentStyle & style) != 0;
+    }
+
     /// <summary>
     /// Sets the window corner preference
     /// </summary>
diff --git a/src/modules/cmdpal/Microsoft.CmdPal.UI/MainWindow.xaml.cs b/src/modules/cmdpal/Microsoft.CmdPal.UI/MainWindow.xaml.cs
index a168176c85..f6d95e401d 100644
--- a/src/modules/cmdpal/Microsoft.CmdPal.UI/MainWindow.xaml.cs
+++ b/src/modules/cmdpal/Microsoft.CmdPal.UI/MainWindow.xaml.cs
@@ -311,15 +311,26 @@ public sealed partial class MainWindow : WindowEx,
 
         var rect = placement.rcNormalPosition;
         var displayArea = DisplayArea.GetFromWindowId(AppWindow.Id, DisplayAreaFallback.Nearest) ?? DisplayArea.Primary;
+
+        // GetWindowPlacement returns rcNormalPosition in workspace coordinates for
+        // normal windows, but in screen coordinates for tool windows (WS_EX_TOOLWINDOW).
+        // HiddenOwnerWindowBehavior applies WS_EX_TOOLWINDOW to hide from taskbar/Alt+Tab,
+        // so we must check the current style before converting coordinates.
+        //
+        // To be on the safe side, we should consider the possibility that setting
+        // WS_EX_TOOLWINDOW failed or isn't applied while debugging.
+        var workArea = displayArea.WorkArea;
+        var isToolWindow = this.HasExtendedStyle(WINDOW_EX_STYLE.WS_EX_TOOLWINDOW);
+
         _currentWindowPosition = new WindowPosition
         {
-            X = rect.X,
-            Y = rect.Y,
+            X = rect.X + (isToolWindow ? 0 : workArea.X),
+            Y = rect.Y + (isToolWindow ? 0 : workArea.Y),
             Width = rect.Width,
             Height = rect.Height,
             Dpi = (int)this.GetDpiForWindow(),
-            ScreenWidth = displayArea.WorkArea.Width,
-            ScreenHeight = displayArea.WorkArea.Height,
+            ScreenWidth = workArea.Width,
+            ScreenHeight = workArea.Height,
         };
     }