diff --git a/osu.Game/Input/ConfineMouseTracker.cs b/osu.Game/Input/ConfineMouseTracker.cs
index de8660dbce..926f68df45 100644
--- a/osu.Game/Input/ConfineMouseTracker.cs
+++ b/osu.Game/Input/ConfineMouseTracker.cs
@@ -22,6 +22,7 @@ namespace osu.Game.Input
     {
         private Bindable<ConfineMouseMode> frameworkConfineMode;
         private Bindable<WindowMode> frameworkWindowMode;
+        private Bindable<bool> frameworkMinimiseOnFocusLossInFullscreen;
 
         private Bindable<OsuConfineMouseMode> osuConfineMode;
         private IBindable<bool> localUserPlaying;
@@ -31,7 +32,9 @@ namespace osu.Game.Input
         {
             frameworkConfineMode = frameworkConfigManager.GetBindable<ConfineMouseMode>(FrameworkSetting.ConfineMouseMode);
             frameworkWindowMode = frameworkConfigManager.GetBindable<WindowMode>(FrameworkSetting.WindowMode);
+            frameworkMinimiseOnFocusLossInFullscreen = frameworkConfigManager.GetBindable<bool>(FrameworkSetting.MinimiseOnFocusLossInFullscreen);
             frameworkWindowMode.BindValueChanged(_ => updateConfineMode());
+            frameworkMinimiseOnFocusLossInFullscreen.BindValueChanged(_ => updateConfineMode());
 
             osuConfineMode = osuConfigManager.GetBindable<OsuConfineMouseMode>(OsuSetting.ConfineMouseMode);
             localUserPlaying = localUserInfo.IsPlaying.GetBoundCopy();
@@ -46,7 +49,8 @@ namespace osu.Game.Input
             if (frameworkConfineMode.Disabled)
                 return;
 
-            if (frameworkWindowMode.Value == WindowMode.Fullscreen)
+            // override confine mode only when clicking outside the window minimises it.
+            if (frameworkWindowMode.Value == WindowMode.Fullscreen && frameworkMinimiseOnFocusLossInFullscreen.Value)
             {
                 frameworkConfineMode.Value = ConfineMouseMode.Fullscreen;
                 return;
diff --git a/osu.Game/Localisation/GraphicsSettingsStrings.cs b/osu.Game/Localisation/GraphicsSettingsStrings.cs
index 422704514f..1d14b0a596 100644
--- a/osu.Game/Localisation/GraphicsSettingsStrings.cs
+++ b/osu.Game/Localisation/GraphicsSettingsStrings.cs
@@ -152,9 +152,13 @@ namespace osu.Game.Localisation
         /// <summary>
         /// "In order to change the renderer, the game will close. Please open it again."
         /// </summary>
-        public static LocalisableString ChangeRendererConfirmation =>
-            new TranslatableString(getKey(@"change_renderer_configuration"), @"In order to change the renderer, the game will close. Please open it again.");
+        public static LocalisableString ChangeRendererConfirmation => new TranslatableString(getKey(@"change_renderer_configuration"), @"In order to change the renderer, the game will close. Please open it again.");
 
-        private static string getKey(string key) => $"{prefix}:{key}";
+        /// <summary>
+        /// "Minimise osu! when switching to another app"
+        /// </summary>
+        public static LocalisableString MinimiseOnFocusLoss => new TranslatableString(getKey(@"minimise_on_focus_loss"), @"Minimise osu! when switching to another app");
+
+        private static string getKey(string key) => $@"{prefix}:{key}";
     }
 }
diff --git a/osu.Game/Overlays/Settings/Sections/Graphics/LayoutSettings.cs b/osu.Game/Overlays/Settings/Sections/Graphics/LayoutSettings.cs
index a3290bc81c..71afec88d4 100644
--- a/osu.Game/Overlays/Settings/Sections/Graphics/LayoutSettings.cs
+++ b/osu.Game/Overlays/Settings/Sections/Graphics/LayoutSettings.cs
@@ -51,6 +51,7 @@ namespace osu.Game.Overlays.Settings.Sections.Graphics
         private SettingsDropdown<Size> resolutionDropdown = null!;
         private SettingsDropdown<Display> displayDropdown = null!;
         private SettingsDropdown<WindowMode> windowModeDropdown = null!;
+        private SettingsCheckbox minimiseOnFocusLossCheckbox = null!;
         private SettingsCheckbox safeAreaConsiderationsCheckbox = null!;
 
         private Bindable<float> scalingPositionX = null!;
@@ -106,6 +107,12 @@ namespace osu.Game.Overlays.Settings.Sections.Graphics
                     ItemSource = resolutions,
                     Current = sizeFullscreen
                 },
+                minimiseOnFocusLossCheckbox = new SettingsCheckbox
+                {
+                    LabelText = GraphicsSettingsStrings.MinimiseOnFocusLoss,
+                    Current = config.GetBindable<bool>(FrameworkSetting.MinimiseOnFocusLossInFullscreen),
+                    Keywords = new[] { "alt-tab", "minimize", "focus", "hide" },
+                },
                 safeAreaConsiderationsCheckbox = new SettingsCheckbox
                 {
                     LabelText = "Shrink game to avoid cameras and notches",
@@ -255,6 +262,7 @@ namespace osu.Game.Overlays.Settings.Sections.Graphics
         {
             resolutionDropdown.CanBeShown.Value = resolutions.Count > 1 && windowModeDropdown.Current.Value == WindowMode.Fullscreen;
             displayDropdown.CanBeShown.Value = displayDropdown.Items.Count() > 1;
+            minimiseOnFocusLossCheckbox.CanBeShown.Value = RuntimeInfo.IsDesktop && windowModeDropdown.Current.Value == WindowMode.Fullscreen;
             safeAreaConsiderationsCheckbox.CanBeShown.Value = host.Window?.SafeAreaPadding.Value.Total != Vector2.Zero;
         }
 
diff --git a/osu.Game/Overlays/Settings/Sections/Input/MouseSettings.cs b/osu.Game/Overlays/Settings/Sections/Input/MouseSettings.cs
index 6bf06f4f98..7805ed5834 100644
--- a/osu.Game/Overlays/Settings/Sections/Input/MouseSettings.cs
+++ b/osu.Game/Overlays/Settings/Sections/Input/MouseSettings.cs
@@ -28,6 +28,7 @@ namespace osu.Game.Overlays.Settings.Sections.Input
         private Bindable<double> localSensitivity;
 
         private Bindable<WindowMode> windowMode;
+        private Bindable<bool> minimiseOnFocusLoss;
         private SettingsEnumDropdown<OsuConfineMouseMode> confineMouseModeSetting;
         private Bindable<bool> relativeMode;
 
@@ -47,6 +48,7 @@ namespace osu.Game.Overlays.Settings.Sections.Input
 
             relativeMode = mouseHandler.UseRelativeMode.GetBoundCopy();
             windowMode = config.GetBindable<WindowMode>(FrameworkSetting.WindowMode);
+            minimiseOnFocusLoss = config.GetBindable<bool>(FrameworkSetting.MinimiseOnFocusLossInFullscreen);
 
             Children = new Drawable[]
             {
@@ -98,21 +100,8 @@ namespace osu.Game.Overlays.Settings.Sections.Input
 
             localSensitivity.BindValueChanged(val => handlerSensitivity.Value = val.NewValue);
 
-            windowMode.BindValueChanged(mode =>
-            {
-                bool isFullscreen = mode.NewValue == WindowMode.Fullscreen;
-
-                if (isFullscreen)
-                {
-                    confineMouseModeSetting.Current.Disabled = true;
-                    confineMouseModeSetting.TooltipText = MouseSettingsStrings.NotApplicableFullscreen;
-                }
-                else
-                {
-                    confineMouseModeSetting.Current.Disabled = false;
-                    confineMouseModeSetting.TooltipText = string.Empty;
-                }
-            }, true);
+            windowMode.BindValueChanged(_ => updateConfineMouseModeSettingVisibility());
+            minimiseOnFocusLoss.BindValueChanged(_ => updateConfineMouseModeSettingVisibility(), true);
 
             highPrecisionMouse.Current.BindValueChanged(highPrecision =>
             {
@@ -126,6 +115,25 @@ namespace osu.Game.Overlays.Settings.Sections.Input
             }, true);
         }
 
+        /// <summary>
+        /// Updates disabled state and tooltip of <see cref="confineMouseModeSetting"/> to match when <see cref="ConfineMouseTracker"/> is overriding the confine mode.
+        /// </summary>
+        private void updateConfineMouseModeSettingVisibility()
+        {
+            bool confineModeOverriden = windowMode.Value == WindowMode.Fullscreen && minimiseOnFocusLoss.Value;
+
+            if (confineModeOverriden)
+            {
+                confineMouseModeSetting.Current.Disabled = true;
+                confineMouseModeSetting.TooltipText = MouseSettingsStrings.NotApplicableFullscreen;
+            }
+            else
+            {
+                confineMouseModeSetting.Current.Disabled = false;
+                confineMouseModeSetting.TooltipText = string.Empty;
+            }
+        }
+
         public partial class SensitivitySetting : SettingsSlider<double, SensitivitySlider>
         {
             public SensitivitySetting()