diff --git a/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/TrayIconService.cs b/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/TrayIconService.cs
index 224c851ff1..442341cc5e 100644
--- a/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/TrayIconService.cs
+++ b/src/modules/cmdpal/Microsoft.CmdPal.UI/Helpers/TrayIconService.cs
@@ -92,7 +92,7 @@ internal sealed partial class TrayIconService
             {
                 _popupMenu = PInvoke.CreatePopupMenu_SafeHandle();
                 PInvoke.InsertMenu(_popupMenu, 0, MENU_ITEM_FLAGS.MF_BYPOSITION | MENU_ITEM_FLAGS.MF_STRING, PInvoke.WM_USER + 1, RS_.GetString("TrayMenu_Settings"));
-                PInvoke.InsertMenu(_popupMenu, 1, MENU_ITEM_FLAGS.MF_BYPOSITION | MENU_ITEM_FLAGS.MF_STRING, PInvoke.WM_USER + 2, RS_.GetString("TrayMenu_Exit"));
+                PInvoke.InsertMenu(_popupMenu, 1, MENU_ITEM_FLAGS.MF_BYPOSITION | MENU_ITEM_FLAGS.MF_STRING, PInvoke.WM_USER + 2, RS_.GetString("TrayMenu_Close"));
             }
         }
         else
diff --git a/src/modules/cmdpal/Microsoft.CmdPal.UI/Strings/en-us/Resources.resw b/src/modules/cmdpal/Microsoft.CmdPal.UI/Strings/en-us/Resources.resw
index f5810a0513..dd69fa78d4 100644
--- a/src/modules/cmdpal/Microsoft.CmdPal.UI/Strings/en-us/Resources.resw
+++ b/src/modules/cmdpal/Microsoft.CmdPal.UI/Strings/en-us/Resources.resw
@@ -419,8 +419,9 @@ Right-click to remove the key combination, thereby deactivating the shortcut.</v
   <data name="TrayMenu_Settings" xml:space="preserve">
     <value>Settings</value>
   </data>
-  <data name="TrayMenu_Exit" xml:space="preserve">
-    <value>Exit</value>
+  <data name="TrayMenu_Close" xml:space="preserve">
+    <value>Close</value>
+    <comment>Close as a verb, as in Close the application</comment>
   </data>
   <data name="Settings_ExtensionPage_Alias_ToggleSwitch.OnContent" xml:space="preserve">
     <value>Direct</value>
diff --git a/src/runner/Resources.resx b/src/runner/Resources.resx
index 3cc2f1ad36..c8eb5f25cc 100644
--- a/src/runner/Resources.resx
+++ b/src/runner/Resources.resx
@@ -176,10 +176,6 @@
   <data name="DOCUMENTATION_MENU_TEXT" xml:space="preserve">
     <value>Documentation</value>
   </data>
-  <data name="EXIT_MENU_TEXT" xml:space="preserve">
-    <value>Exit</value>
-    <comment>Exit as a verb, as in Exit the application</comment>
-  </data>
   <data name="SUBMIT_BUG_TEXT" xml:space="preserve">
     <value>Report bug</value>
   </data>
@@ -193,4 +189,8 @@
   <data name="TRAY_ICON_ADMIN_TOOLTIP" xml:space="preserve">
     <value>Administrator</value>
   </data>
+  <data name="CLOSE_MENU_TEXT" xml:space="preserve">
+    <value>Close</value>
+    <comment>Close as a verb, as in Close the application</comment>
+  </data>
 </root>
\ No newline at end of file
diff --git a/src/runner/resource.base.h b/src/runner/resource.base.h
index 027f5b4281..7037f4342d 100644
--- a/src/runner/resource.base.h
+++ b/src/runner/resource.base.h
@@ -15,7 +15,7 @@
 #define APPICON 101
 #define ID_TRAY_MENU 102
 
-#define ID_EXIT_MENU_COMMAND 40001
+#define ID_CLOSE_MENU_COMMAND 40001
 #define ID_SETTINGS_MENU_COMMAND 40002
 #define ID_ABOUT_MENU_COMMAND 40003
 #define ID_REPORT_BUG_COMMAND 40004
diff --git a/src/runner/runner.base.rc b/src/runner/runner.base.rc
index 10a4555db8..367735ade4 100644
Binary files a/src/runner/runner.base.rc and b/src/runner/runner.base.rc differ
diff --git a/src/runner/tray_icon.cpp b/src/runner/tray_icon.cpp
index 53da747539..749c921659 100644
--- a/src/runner/tray_icon.cpp
+++ b/src/runner/tray_icon.cpp
@@ -84,7 +84,7 @@ void handle_tray_command(HWND window, const WPARAM command_id, LPARAM lparam)
         open_settings_window(settings_window, false);
     }
     break;
-    case ID_EXIT_MENU_COMMAND:
+    case ID_CLOSE_MENU_COMMAND:
         if (h_menu)
         {
             DestroyMenu(h_menu);
@@ -191,12 +191,12 @@ LRESULT __stdcall tray_icon_window_proc(HWND window, UINT message, WPARAM wparam
                 if (h_menu)
                 {
                     static std::wstring settings_menuitem_label = GET_RESOURCE_STRING(IDS_SETTINGS_MENU_TEXT);
-                    static std::wstring exit_menuitem_label = GET_RESOURCE_STRING(IDS_EXIT_MENU_TEXT);
+                    static std::wstring close_menuitem_label = GET_RESOURCE_STRING(IDS_CLOSE_MENU_TEXT);
                     static std::wstring submit_bug_menuitem_label = GET_RESOURCE_STRING(IDS_SUBMIT_BUG_TEXT);
                     static std::wstring documentation_menuitem_label = GET_RESOURCE_STRING(IDS_DOCUMENTATION_MENU_TEXT);
                     static std::wstring quick_access_menuitem_label = GET_RESOURCE_STRING(IDS_QUICK_ACCESS_MENU_TEXT);
                     change_menu_item_text(ID_SETTINGS_MENU_COMMAND, settings_menuitem_label.data());
-                    change_menu_item_text(ID_EXIT_MENU_COMMAND, exit_menuitem_label.data());
+                    change_menu_item_text(ID_CLOSE_MENU_COMMAND, close_menuitem_label.data());
                     change_menu_item_text(ID_REPORT_BUG_COMMAND, submit_bug_menuitem_label.data());
                     bool bug_report_disabled = is_bug_report_running();
                     EnableMenuItem(h_sub_menu, ID_REPORT_BUG_COMMAND, MF_BYCOMMAND | (bug_report_disabled ? MF_GRAYED : MF_ENABLED));
diff --git a/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml b/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml
index da5bcd7e0c..1a3c640ddf 100644
--- a/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml
+++ b/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml
@@ -267,7 +267,10 @@
                     </tkcontrols:SettingsCard>
 
                     <tkcontrols:SettingsCard x:Uid="ShowSystemTrayIcon">
-                        <ToggleSwitch x:Uid="ShowSystemTrayIcon_ToggleSwitch" IsOn="{x:Bind ViewModel.ShowSysTrayIcon, Mode=TwoWay}" />
+                        <ToggleSwitch
+                            x:Uid="ShowSystemTrayIcon_ToggleSwitch"
+                            IsOn="{x:Bind ViewModel.ShowSysTrayIcon, Mode=TwoWay}"
+                            Toggled="ShowSystemTrayIcon_Toggled" />
                     </tkcontrols:SettingsCard>
                     <InfoBar
                         x:Uid="GPO_SettingIsManaged"
diff --git a/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml.cs b/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml.cs
index aefc2733e2..9a6a1f802c 100644
--- a/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml.cs
+++ b/src/settings-ui/Settings.UI/SettingsXAML/Views/GeneralPage.xaml.cs
@@ -10,7 +10,6 @@ using Microsoft.PowerToys.Settings.UI.Flyout;
 using Microsoft.PowerToys.Settings.UI.Helpers;
 using Microsoft.PowerToys.Settings.UI.Library;
 using Microsoft.PowerToys.Settings.UI.ViewModels;
-using Microsoft.UI.Dispatching;
 using Microsoft.UI.Xaml;
 using Microsoft.UI.Xaml.Controls;
 using Windows.Data.Json;
@@ -174,19 +173,6 @@ namespace Microsoft.PowerToys.Settings.UI.Views
             await Task.Run(ViewModel.ViewDiagnosticData);
         }
 
-        private void ExitPTItem_Tapped(object sender, RoutedEventArgs e)
-        {
-            const string ptTrayIconWindowClass = "PToyTrayIconWindow"; // Defined in runner/tray_icon.h
-            const nuint ID_EXIT_MENU_COMMAND = 40001;                  // Generated resource from runner/runner.base.rc
-
-            // Exit the XAML application
-            Application.Current.Exit();
-
-            // Invoke the exit command from the tray icon
-            IntPtr hWnd = NativeMethods.FindWindow(ptTrayIconWindowClass, ptTrayIconWindowClass);
-            NativeMethods.SendMessage(hWnd, NativeMethods.WM_COMMAND, ID_EXIT_MENU_COMMAND, 0);
-        }
-
         private void BugReportToolClicked(object sender, RoutedEventArgs e)
         {
             // Start bug report
@@ -232,5 +218,17 @@ namespace Microsoft.PowerToys.Settings.UI.Views
                 ShellPage.ShellHandler.IPCResponseHandleList.Remove(HandleBugReportStatusResponse);
             }
         }
+
+        private void ShowSystemTrayIcon_Toggled(object sender, RoutedEventArgs e)
+        {
+            if (sender is ToggleSwitch toggleSwitch)
+            {
+                var shellViewModel = ShellPage.ShellHandler?.ViewModel;
+                if (shellViewModel != null)
+                {
+                    shellViewModel.ShowCloseMenu = !toggleSwitch.IsOn;
+                }
+            }
+        }
     }
 }
diff --git a/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml b/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml
index d1a4c8ea8b..0fc0f7c6a5 100644
--- a/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml
+++ b/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml
@@ -1,4 +1,4 @@
-<UserControl
+<UserControl
     x:Class="Microsoft.PowerToys.Settings.UI.Views.ShellPage"
     xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
     xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
@@ -39,17 +39,10 @@
             Margin="48,0,0,0"
             VerticalAlignment="Top"
             IsHitTestVisible="True">
-            <Grid.ColumnDefinitions>
-                <ColumnDefinition x:Name="LeftTitleBarColumn" Width="*" />
-                <ColumnDefinition x:Name="RightTitleBarColumn" Width="Auto" />
-            </Grid.ColumnDefinitions>
             <animations:Implicit.Animations>
                 <animations:OffsetAnimation Duration="0:0:0.3" />
             </animations:Implicit.Animations>
-            <StackPanel
-                Grid.Column="0"
-                HorizontalAlignment="Left"
-                Orientation="Horizontal">
+            <StackPanel Orientation="Horizontal">
                 <Image
                     Width="16"
                     Height="16"
@@ -71,24 +64,6 @@
                     TextWrapping="NoWrap"
                     Visibility="Collapsed" />
             </StackPanel>
-            <StackPanel
-                Grid.Column="1"
-                Margin="0,0,148,0"
-                HorizontalAlignment="Right"
-                Orientation="Horizontal">
-                <Button
-                    x:Name="ShutDownBtn"
-                    Height="48"
-                    Click="ExitPTItem_Tapped"
-                    Style="{StaticResource SubtleButtonStyle}">
-                    <FontIcon FontSize="16" Glyph="&#xE7E8;" />
-                    <ToolTipService.ToolTip>
-                        <ToolTip>
-                            <TextBlock x:Uid="AppTitleBarShutDown_Tooltip" />
-                        </ToolTip>
-                    </ToolTipService.ToolTip>
-                </Button>
-            </StackPanel>
         </Grid>
         <NavigationView
             x:Name="navigationView"
@@ -300,6 +275,11 @@
                         x:Uid="Feedback_NavViewItem"
                         Icon="{ui:FontIcon Glyph=&#xED15;}"
                         Tapped="FeedbackItem_Tapped" />
+                    <NavigationViewItem
+                        x:Uid="Close_NavViewItem"
+                        Icon="{ui:FontIcon Glyph=&#xE7E8;}"
+                        Tapped="Close_Tapped"
+                        Visibility="{x:Bind ViewModel.ShowCloseMenu, Mode=OneWay}" />
                 </StackPanel>
             </NavigationView.PaneFooter>
             <i:Interaction.Behaviors>
@@ -309,5 +289,12 @@
             </i:Interaction.Behaviors>
             <Frame x:Name="shellFrame" />
         </NavigationView>
+        <ContentDialog
+            x:Name="CloseDialog"
+            x:Uid="CloseDialog"
+            IsPrimaryButtonEnabled="True"
+            IsSecondaryButtonEnabled="True"
+            PrimaryButtonClick="CloseDialog_Click"
+            PrimaryButtonStyle="{StaticResource AccentButtonStyle}" />
     </Grid>
 </UserControl>
diff --git a/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml.cs b/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml.cs
index 11835ceeb2..57abe04119 100644
--- a/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml.cs
+++ b/src/settings-ui/Settings.UI/SettingsXAML/Views/ShellPage.xaml.cs
@@ -1,4 +1,4 @@
-// Copyright (c) Microsoft Corporation
+// Copyright (c) Microsoft Corporation
 // The Microsoft Corporation licenses this file to you under the MIT license.
 // See the LICENSE file in the project root for more information.
 
@@ -7,6 +7,7 @@ using System.Collections.Generic;
 using System.Linq;
 using ManagedCommon;
 using Microsoft.PowerToys.Settings.UI.Helpers;
+using Microsoft.PowerToys.Settings.UI.Library;
 using Microsoft.PowerToys.Settings.UI.Services;
 using Microsoft.PowerToys.Settings.UI.ViewModels;
 using Microsoft.UI.Windowing;
@@ -113,7 +114,7 @@ namespace Microsoft.PowerToys.Settings.UI.Views
         /// <summary>
         /// Gets view model.
         /// </summary>
-        public ShellViewModel ViewModel { get; } = new ShellViewModel();
+        public ShellViewModel ViewModel { get; }
 
         /// <summary>
         /// Gets a collection of functions that handle IPC responses.
@@ -134,6 +135,8 @@ namespace Microsoft.PowerToys.Settings.UI.Views
         {
             InitializeComponent();
 
+            var settingsUtils = new SettingsUtils();
+            ViewModel = new ShellViewModel(SettingsRepository<GeneralSettings>.GetInstance(settingsUtils));
             DataContext = ViewModel;
             ShellHandler = this;
             ViewModel.Initialize(shellFrame, navigationView, KeyboardAccelerators);
@@ -461,17 +464,22 @@ namespace Microsoft.PowerToys.Settings.UI.Views
             navigationView.IsPaneOpen = !navigationView.IsPaneOpen;
         }
 
-        private void ExitPTItem_Tapped(object sender, RoutedEventArgs e)
+        private async void Close_Tapped(object sender, Microsoft.UI.Xaml.Input.TappedRoutedEventArgs e)
+        {
+            await CloseDialog.ShowAsync();
+        }
+
+        private void CloseDialog_Click(ContentDialog sender, ContentDialogButtonClickEventArgs args)
         {
             const string ptTrayIconWindowClass = "PToyTrayIconWindow"; // Defined in runner/tray_icon.h
-            const nuint ID_EXIT_MENU_COMMAND = 40001;                  // Generated resource from runner/runner.base.rc
+            const nuint ID_CLOSE_MENU_COMMAND = 40001;                  // Generated resource from runner/runner.base.rc
 
             // Exit the XAML application
             Application.Current.Exit();
 
             // Invoke the exit command from the tray icon
             IntPtr hWnd = NativeMethods.FindWindow(ptTrayIconWindowClass, ptTrayIconWindowClass);
-            NativeMethods.SendMessage(hWnd, NativeMethods.WM_COMMAND, ID_EXIT_MENU_COMMAND, 0);
+            NativeMethods.SendMessage(hWnd, NativeMethods.WM_COMMAND, ID_CLOSE_MENU_COMMAND, 0);
         }
     }
 }
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 7eede397b3..8834d22600 100644
--- a/src/settings-ui/Settings.UI/Strings/en-us/Resources.resw
+++ b/src/settings-ui/Settings.UI/Strings/en-us/Resources.resw
@@ -1,4 +1,4 @@
-<?xml version="1.0" encoding="utf-8"?>
+<?xml version="1.0" encoding="utf-8"?>
 <root>
   <!-- 
     Microsoft ResX Schema 
@@ -5055,9 +5055,6 @@ To record a specific window, enter the hotkey with the Alt key in the opposite m
   <data name="GeneralPageReportBugPackage.Content" xml:space="preserve">
     <value>Generate package</value>
   </data>
-  <data name="AppTitleBarShutDown_Tooltip.Text" xml:space="preserve">
-    <value>Shut down</value>
-  </data>
   <data name="BugReportUnderConstruction" xml:space="preserve">
     <value>Bug report package is being created</value>
   </data>
@@ -5152,6 +5149,23 @@ To record a specific window, enter the hotkey with the Alt key in the opposite m
   <data name="GeneralPage_EnableViewDiagnosticDataText.Text" xml:space="preserve">
     <value>Stores diagnostic data locally in .xml format; folder may include .etl files as well. May use up 1 GB or more of disk space.</value>
   </data>
+  <data name="Close_NavViewItem.Content" xml:space="preserve">
+    <value>Close PowerToys</value>
+    <comment>Don't loc "PowerToys"</comment>
+  </data>
+  <data name="CloseDialog.Content" xml:space="preserve">
+    <value>Closing PowerToys will stop all active utilities.</value>
+    <comment>Don't loc "PowerToys"</comment>
+  </data>
+  <data name="CloseDialog.Title" xml:space="preserve">
+    <value>Are you sure?</value>
+  </data>
+  <data name="CloseDialog.PrimaryButtonText" xml:space="preserve">
+    <value>Yes</value>
+  </data>
+  <data name="CloseDialog.SecondaryButtonText" xml:space="preserve">
+    <value>No</value>
+  </data>
   <data name="KeyBack" xml:space="preserve">
     <value>Back key</value>
   </data>
diff --git a/src/settings-ui/Settings.UI/ViewModels/ShellViewModel.cs b/src/settings-ui/Settings.UI/ViewModels/ShellViewModel.cs
index 54e9987858..3542fbd9af 100644
--- a/src/settings-ui/Settings.UI/ViewModels/ShellViewModel.cs
+++ b/src/settings-ui/Settings.UI/ViewModels/ShellViewModel.cs
@@ -10,7 +10,9 @@ using System.Threading.Tasks;
 using System.Windows.Input;
 
 using Microsoft.PowerToys.Settings.UI.Helpers;
+using Microsoft.PowerToys.Settings.UI.Library;
 using Microsoft.PowerToys.Settings.UI.Library.Helpers;
+using Microsoft.PowerToys.Settings.UI.Library.Interfaces;
 using Microsoft.PowerToys.Settings.UI.Services;
 using Microsoft.UI.Xaml.Controls;
 using Microsoft.UI.Xaml.Input;
@@ -26,31 +28,41 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
         private readonly KeyboardAccelerator backKeyboardAccelerator = BuildKeyboardAccelerator(VirtualKey.GoBack);
 
         private bool isBackEnabled;
+        private bool showCloseMenu;
         private IList<KeyboardAccelerator> keyboardAccelerators;
         private NavigationView navigationView;
         private NavigationViewItem selected;
         private ICommand loadedCommand;
         private ICommand itemInvokedCommand;
         private NavigationViewItem[] _fullListOfNavViewItems;
+        private GeneralSettings _generalSettingsConfig;
 
         public bool IsBackEnabled
         {
-            get { return isBackEnabled; }
-            set { Set(ref isBackEnabled, value); }
+            get => isBackEnabled;
+            set => Set(ref isBackEnabled, value);
+        }
+
+        public bool ShowCloseMenu
+        {
+            get => showCloseMenu;
+            set => Set(ref showCloseMenu, value);
         }
 
         public NavigationViewItem Selected
         {
-            get { return selected; }
-            set { Set(ref selected, value); }
+            get => selected;
+            set => Set(ref selected, value);
         }
 
         public ICommand LoadedCommand => loadedCommand ?? (loadedCommand = new RelayCommand(OnLoaded));
 
         public ICommand ItemInvokedCommand => itemInvokedCommand ?? (itemInvokedCommand = new RelayCommand<NavigationViewItemInvokedEventArgs>(OnItemInvoked));
 
-        public ShellViewModel()
+        public ShellViewModel(ISettingsRepository<GeneralSettings> settingsRepository)
         {
+            _generalSettingsConfig = settingsRepository.SettingsConfig;
+            ShowCloseMenu = !_generalSettingsConfig.ShowSysTrayIcon;
         }
 
         public void Initialize(Frame frame, NavigationView navigationView, IList<KeyboardAccelerator> keyboardAccelerators)