diff --git a/client/include/app.h b/client/include/app.h
index 68089df0..5e245239 100644
--- a/client/include/app.h
+++ b/client/include/app.h
@@ -84,6 +84,7 @@ void app_glSwapBuffers(void);
 
 #define MAX_OVERLAY_RECTS 10
 void app_registerOverlay(const struct LG_OverlayOps * ops, void * params);
+void app_setOverlay(bool enable);
 
 /**
  * render the overlay
diff --git a/client/src/app.c b/client/src/app.c
index 623dd916..2445249f 100644
--- a/client/src/app.c
+++ b/client/src/app.c
@@ -313,7 +313,10 @@ void app_handleKeyPress(int sc)
 
   if (g_state.overlayInput)
   {
-    g_state.io->KeysDown[sc] = true;
+    if (sc == KEY_ESC)
+      app_setOverlay(false);
+    else
+      g_state.io->KeysDown[sc] = true;
     return;
   }
 
@@ -797,3 +800,24 @@ void app_freeOverlays(void)
     free(overlay);
   }
 }
+
+void app_setOverlay(bool enable)
+{
+  if (g_state.overlayInput == enable)
+    return;
+
+  g_state.overlayInput = enable;
+  g_state.cursorLast   = -2;
+
+  if (g_state.overlayInput)
+  {
+    g_state.io->ConfigFlags &= ~ImGuiConfigFlags_NoMouse;
+    core_setGrabQuiet(false);
+    core_setCursorInView(false);
+  }
+  else
+  {
+    g_state.io->ConfigFlags |= ImGuiConfigFlags_NoMouse;
+    core_resetOverlayInputState();
+  }
+}
diff --git a/client/src/keybind.c b/client/src/keybind.c
index 94831b31..282d47bc 100644
--- a/client/src/keybind.c
+++ b/client/src/keybind.c
@@ -135,16 +135,7 @@ static void bind_passthrough(int sc, void * opaque)
 
 static void bind_toggleOverlay(int sc, void * opaque)
 {
-  g_state.overlayInput ^= true;
-  g_state.cursorLast    = -2;
-  if (g_state.overlayInput)
-  {
-    g_state.io->ConfigFlags &= ~ImGuiConfigFlags_NoMouse;
-    core_setGrabQuiet(false);
-    core_setCursorInView(false);
-  }
-  else
-    g_state.io->ConfigFlags |= ImGuiConfigFlags_NoMouse;
+  app_setOverlay(!g_state.overlayInput);
 }
 
 void keybind_register(void)