diff --git a/.github/actions/spell-check/expect/expect.txt b/.github/actions/spell-check/expect/expect.txt
index 01b64c42d78..276d9778fae 100644
--- a/.github/actions/spell-check/expect/expect.txt
+++ b/.github/actions/spell-check/expect/expect.txt
@@ -1457,6 +1457,7 @@ natvis
 naws
 nbsp
 Nc
+NCACTIVATE
 NCCALCSIZE
 NCCREATE
 NCLBUTTONDOWN
diff --git a/src/cascadia/TerminalApp/MinMaxCloseControl.cpp b/src/cascadia/TerminalApp/MinMaxCloseControl.cpp
index ee5f3e0d9b7..cf145bbe917 100644
--- a/src/cascadia/TerminalApp/MinMaxCloseControl.cpp
+++ b/src/cascadia/TerminalApp/MinMaxCloseControl.cpp
@@ -79,6 +79,18 @@ namespace winrt::TerminalApp::implementation
             CloseButton().Height(maximizedHeight);
             break;
 
+        case WindowVisualState::WindowVisualStateUnfocused:
+            VisualStateManager::GoToState(MaximizeButton(), L"WindowStateUnfocused", false);
+            VisualStateManager::GoToState(MinimizeButton(), L"WindowStateUnfocused", false);
+            VisualStateManager::GoToState(CloseButton(), L"WindowStateUnfocused", false);
+            break;
+
+        case WindowVisualState::WindowVisualStateFocused:
+            VisualStateManager::GoToState(MaximizeButton(), L"WindowStateFocused", false);
+            VisualStateManager::GoToState(MinimizeButton(), L"WindowStateFocused", false);
+            VisualStateManager::GoToState(CloseButton(), L"WindowStateFocused", false);
+            break;
+
         case WindowVisualState::WindowVisualStateNormal:
         case WindowVisualState::WindowVisualStateIconified:
         default:
diff --git a/src/cascadia/TerminalApp/MinMaxCloseControl.xaml b/src/cascadia/TerminalApp/MinMaxCloseControl.xaml
index 701c8720935..edd21725ceb 100644
--- a/src/cascadia/TerminalApp/MinMaxCloseControl.xaml
+++ b/src/cascadia/TerminalApp/MinMaxCloseControl.xaml
@@ -22,6 +22,7 @@ the MIT License. See LICENSE in the project root for license information. -->
                     <StaticResource x:Key="CaptionButtonBackgroundPointerOver" ResourceKey="SystemControlBackgroundBaseLowBrush"/>
                     <StaticResource x:Key="CaptionButtonBackgroundPressed" ResourceKey="SystemControlBackgroundBaseMediumLowBrush"/>
                     <StaticResource x:Key="CaptionButtonStroke" ResourceKey="SystemControlForegroundBaseHighBrush"/>
+                    <StaticResource x:Key="CaptionButtonStrokeWindowUnfocused" ResourceKey="SystemControlForegroundBaseLowBrush"/>
                     <StaticResource x:Key="CaptionButtonStrokePointerOver" ResourceKey="SystemControlForegroundBaseHighBrush"/>
                     <StaticResource x:Key="CaptionButtonStrokePressed" ResourceKey="SystemControlForegroundBaseHighBrush"/>
                     <SolidColorBrush x:Key="CaptionButtonBackground" Color="Transparent" />
@@ -35,6 +36,7 @@ the MIT License. See LICENSE in the project root for license information. -->
                     <StaticResource x:Key="CaptionButtonBackgroundPointerOver" ResourceKey="SystemControlBackgroundBaseLowBrush"/>
                     <StaticResource x:Key="CaptionButtonBackgroundPressed" ResourceKey="SystemControlBackgroundBaseMediumLowBrush"/>
                     <StaticResource x:Key="CaptionButtonStroke" ResourceKey="SystemControlForegroundBaseHighBrush"/>
+                    <StaticResource x:Key="CaptionButtonStrokeWindowUnfocused" ResourceKey="SystemControlForegroundBaseLowBrush"/>
                     <StaticResource x:Key="CaptionButtonStrokePointerOver" ResourceKey="SystemControlForegroundBaseHighBrush"/>
                     <StaticResource x:Key="CaptionButtonStrokePressed" ResourceKey="SystemControlForegroundBaseHighBrush"/>
                     <SolidColorBrush x:Key="CaptionButtonBackground" Color="Transparent" />
@@ -49,6 +51,7 @@ the MIT License. See LICENSE in the project root for license information. -->
                     <SolidColorBrush x:Key="CaptionButtonBackgroundPointerOver" Color="{ThemeResource SystemColorHighlightColor}"/>
                     <SolidColorBrush x:Key="CaptionButtonBackgroundPressed" Color="{ThemeResource SystemColorHighlightColor}"/>
                     <SolidColorBrush x:Key="CaptionButtonStroke" Color="{ThemeResource SystemColorButtonTextColor}"/>
+                    <StaticResource x:Key="CaptionButtonStrokeWindowUnfocused" ResourceKey="SystemControlForegroundBaseLowBrush"/>
                     <SolidColorBrush x:Key="CaptionButtonStrokePointerOver" Color="{ThemeResource SystemColorHighlightTextColor}"/>
                     <SolidColorBrush x:Key="CaptionButtonStrokePressed" Color="{ThemeResource SystemColorHighlightTextColor}"/>
                     <SolidColorBrush x:Key="CloseButtonBackgroundPointerOver" Color="{ThemeResource SystemColorHighlightColor}"/>
@@ -125,6 +128,16 @@ the MIT License. See LICENSE in the project root for license information. -->
                                         <VisualState x:Name="Disabled" />
                                     </VisualStateGroup>
 
+                                    <VisualStateGroup x:Name="FocusStates">
+                                        <VisualState x:Name="WindowStateFocused" />
+
+                                        <VisualState x:Name="WindowStateUnfocused">
+                                            <VisualState.Setters>
+                                                <Setter Target="Path.Stroke" Value="{ThemeResource CaptionButtonStrokeWindowUnfocused}" />
+                                            </VisualState.Setters>
+                                        </VisualState>
+                                    </VisualStateGroup>
+
                                     <VisualStateGroup x:Name="MinMaxStates">
                                         <VisualState x:Name="WindowStateNormal" />
 
diff --git a/src/cascadia/TerminalApp/TitlebarControl.cpp b/src/cascadia/TerminalApp/TitlebarControl.cpp
index 05806726cfe..4c31950669a 100644
--- a/src/cascadia/TerminalApp/TitlebarControl.cpp
+++ b/src/cascadia/TerminalApp/TitlebarControl.cpp
@@ -66,6 +66,13 @@ namespace winrt::TerminalApp::implementation
         }
     }
 
+    void TitlebarControl::Focused(bool focused)
+    {
+    	const auto state = focused ? winrt::TerminalApp::WindowVisualState::WindowVisualStateFocused :
+                                        winrt::TerminalApp::WindowVisualState::WindowVisualStateUnfocused;
+    	MinMaxCloseControl().SetWindowVisualState(state);
+    }
+
     void TitlebarControl::Maximize_Click(winrt::Windows::Foundation::IInspectable const& /*sender*/, winrt::Windows::UI::Xaml::RoutedEventArgs const& /*e*/)
     {
         _OnMaximizeOrRestore(HTMAXBUTTON);
diff --git a/src/cascadia/TerminalApp/TitlebarControl.h b/src/cascadia/TerminalApp/TitlebarControl.h
index a30f347d868..65778d70910 100644
--- a/src/cascadia/TerminalApp/TitlebarControl.h
+++ b/src/cascadia/TerminalApp/TitlebarControl.h
@@ -17,6 +17,9 @@ namespace winrt::TerminalApp::implementation
     {
         TitlebarControl(uint64_t handle);
 
+        bool Focused() const;
+        void Focused(bool focused);
+
         IInspectable Content();
         void Content(IInspectable content);
 
diff --git a/src/cascadia/TerminalApp/TitlebarControl.idl b/src/cascadia/TerminalApp/TitlebarControl.idl
index 104f7a2f26f..0b2d43dcf98 100644
--- a/src/cascadia/TerminalApp/TitlebarControl.idl
+++ b/src/cascadia/TerminalApp/TitlebarControl.idl
@@ -7,7 +7,9 @@ namespace TerminalApp
     {
         WindowVisualStateNormal = 0,
         WindowVisualStateMaximized,
-        WindowVisualStateIconified
+        WindowVisualStateIconified,
+        WindowVisualStateFocused,
+        WindowVisualStateUnfocused
     };
 
     [default_interface] runtimeclass TitlebarControl : Windows.UI.Xaml.Controls.Grid
@@ -15,6 +17,8 @@ namespace TerminalApp
         TitlebarControl(UInt64 parentWindowHandle);
         void SetWindowVisualState(WindowVisualState visualState);
 
+        Boolean Focused { get; set; };
+
         IInspectable Content;
         Windows.UI.Xaml.Controls.Border DragBar { get; };
     }
diff --git a/src/cascadia/WindowsTerminal/NonClientIslandWindow.cpp b/src/cascadia/WindowsTerminal/NonClientIslandWindow.cpp
index d8e67e7dec7..595a16ae28c 100644
--- a/src/cascadia/WindowsTerminal/NonClientIslandWindow.cpp
+++ b/src/cascadia/WindowsTerminal/NonClientIslandWindow.cpp
@@ -516,6 +516,32 @@ int NonClientIslandWindow::_GetResizeHandleHeight() const noexcept
     return 0;
 }
 
+// Method Description:
+// - Responds to the WM_NCACTIVATE message by changing the focus state of
+//   the window.
+[[nodiscard]] LRESULT NonClientIslandWindow::_OnFocusChanged(const WPARAM wParam, const LPARAM lParam) noexcept
+{
+    const auto windowStyle = GetWindowStyle(_window.get());
+    const auto isIconified = WI_IsFlagSet(windowStyle, WS_ICONIC);
+
+    if (isIconified)
+    {
+        return DefWindowProc(_window.get(), WM_NCACTIVATE, wParam, lParam);
+    }
+
+    if (_titlebar)
+    {
+        _isFocused = wParam;
+        try
+        {
+            _titlebar.Focused(_isFocused);
+        }
+        CATCH_LOG();
+    }
+
+    return TRUE;
+}
+
 // Method Description:
 // - Hit test the frame for resizing and moving.
 // Arguments:
@@ -689,6 +715,8 @@ void NonClientIslandWindow::_UpdateFrameMargins() const noexcept
         return 0;
     case WM_NCCALCSIZE:
         return _OnNcCalcSize(wParam, lParam);
+    case WM_NCACTIVATE:
+        return _OnFocusChanged(wParam, lParam);
     case WM_NCHITTEST:
         return _OnNcHitTest({ GET_X_LPARAM(lParam), GET_Y_LPARAM(lParam) });
     case WM_PAINT:
diff --git a/src/cascadia/WindowsTerminal/NonClientIslandWindow.h b/src/cascadia/WindowsTerminal/NonClientIslandWindow.h
index 10a39b4fcb1..b510611f106 100644
--- a/src/cascadia/WindowsTerminal/NonClientIslandWindow.h
+++ b/src/cascadia/WindowsTerminal/NonClientIslandWindow.h
@@ -61,6 +61,7 @@ class NonClientIslandWindow : public IslandWindow
     winrt::Windows::UI::Xaml::ElementTheme _theme;
 
     bool _isMaximized;
+    bool _isFocused;
 
     [[nodiscard]] static LRESULT __stdcall _StaticInputSinkWndProc(HWND const window, UINT const message, WPARAM const wparam, LPARAM const lparam) noexcept;
     [[nodiscard]] LRESULT _InputSinkMessageHandler(UINT const message, WPARAM const wparam, LPARAM const lparam) noexcept;
@@ -73,6 +74,7 @@ class NonClientIslandWindow : public IslandWindow
 
     [[nodiscard]] LRESULT _OnNcCreate(WPARAM wParam, LPARAM lParam) noexcept override;
     [[nodiscard]] LRESULT _OnNcCalcSize(const WPARAM wParam, const LPARAM lParam) noexcept;
+    [[nodiscard]] LRESULT _OnFocusChanged(const WPARAM wParam, const LPARAM lParam) noexcept;
     [[nodiscard]] LRESULT _OnNcHitTest(POINT ptMouse) const noexcept;
     [[nodiscard]] LRESULT _OnPaint() noexcept;
     [[nodiscard]] LRESULT _OnSetCursor(WPARAM wParam, LPARAM lParam) const noexcept;