diff --git a/crates/search/src/buffer_search/registrar.rs b/crates/search/src/buffer_search/registrar.rs
index 0e227cbb7c3a465892a2eed867a001aa48b80ff9..2c640e67cee98fb5e56eda1484ecf6e2fab41976 100644
--- a/crates/search/src/buffer_search/registrar.rs
+++ b/crates/search/src/buffer_search/registrar.rs
@@ -62,7 +62,7 @@ impl<T: 'static> SearchActionsRegistrar for DivRegistrar<'_, '_, T> {
 impl SearchActionsRegistrar for Workspace {
     fn register_handler<A: Action>(&mut self, callback: impl ActionExecutor<A>) {
         self.register_action(move |workspace, action: &A, window, cx| {
-            if workspace.has_active_modal(window, cx) {
+            if workspace.has_active_modal(window, cx) && !workspace.hide_modal(window, cx) {
                 cx.propagate();
                 return;
             }
diff --git a/crates/search/src/project_search.rs b/crates/search/src/project_search.rs
index 9014f1764d7a6097908624e0d93bc6174e998445..4197e57e4d4db0f3ca6d3827d5b32ba19fab6295 100644
--- a/crates/search/src/project_search.rs
+++ b/crates/search/src/project_search.rs
@@ -153,7 +153,7 @@ pub fn init(cx: &mut App) {
 
         // Both on present and dismissed search, we need to unconditionally handle those actions to focus from the editor.
         workspace.register_action(move |workspace, action: &DeploySearch, window, cx| {
-            if workspace.has_active_modal(window, cx) {
+            if workspace.has_active_modal(window, cx) && !workspace.hide_modal(window, cx) {
                 cx.propagate();
                 return;
             }
@@ -161,7 +161,7 @@ pub fn init(cx: &mut App) {
             cx.notify();
         });
         workspace.register_action(move |workspace, action: &NewSearch, window, cx| {
-            if workspace.has_active_modal(window, cx) {
+            if workspace.has_active_modal(window, cx) && !workspace.hide_modal(window, cx) {
                 cx.propagate();
                 return;
             }
@@ -2281,7 +2281,7 @@ fn register_workspace_action<A: Action>(
     callback: fn(&mut ProjectSearchBar, &A, &mut Window, &mut Context<ProjectSearchBar>),
 ) {
     workspace.register_action(move |workspace, action: &A, window, cx| {
-        if workspace.has_active_modal(window, cx) {
+        if workspace.has_active_modal(window, cx) && !workspace.hide_modal(window, cx) {
             cx.propagate();
             return;
         }
@@ -2308,7 +2308,7 @@ fn register_workspace_action_for_present_search<A: Action>(
     callback: fn(&mut Workspace, &A, &mut Window, &mut Context<Workspace>),
 ) {
     workspace.register_action(move |workspace, action: &A, window, cx| {
-        if workspace.has_active_modal(window, cx) {
+        if workspace.has_active_modal(window, cx) && !workspace.hide_modal(window, cx) {
             cx.propagate();
             return;
         }
@@ -4148,6 +4148,67 @@ pub mod tests {
         });
     }
 
+    #[gpui::test]
+    async fn test_search_dismisses_modal(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.background_executor.clone());
+        fs.insert_tree(
+            path!("/dir"),
+            json!({
+                "one.rs": "const ONE: usize = 1;",
+            }),
+        )
+        .await;
+        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let window = cx.add_window(|window, cx| Workspace::test_new(project.clone(), window, cx));
+
+        struct EmptyModalView {
+            focus_handle: gpui::FocusHandle,
+        }
+        impl EventEmitter<gpui::DismissEvent> for EmptyModalView {}
+        impl Render for EmptyModalView {
+            fn render(&mut self, _: &mut Window, _: &mut Context<'_, Self>) -> impl IntoElement {
+                div()
+            }
+        }
+        impl Focusable for EmptyModalView {
+            fn focus_handle(&self, _cx: &App) -> gpui::FocusHandle {
+                self.focus_handle.clone()
+            }
+        }
+        impl workspace::ModalView for EmptyModalView {}
+
+        window
+            .update(cx, |workspace, window, cx| {
+                workspace.toggle_modal(window, cx, |_, cx| EmptyModalView {
+                    focus_handle: cx.focus_handle(),
+                });
+                assert!(workspace.has_active_modal(window, cx));
+            })
+            .unwrap();
+
+        cx.dispatch_action(window.into(), Deploy::find());
+
+        window
+            .update(cx, |workspace, window, cx| {
+                assert!(!workspace.has_active_modal(window, cx));
+                workspace.toggle_modal(window, cx, |_, cx| EmptyModalView {
+                    focus_handle: cx.focus_handle(),
+                });
+                assert!(workspace.has_active_modal(window, cx));
+            })
+            .unwrap();
+
+        cx.dispatch_action(window.into(), DeploySearch::find());
+
+        window
+            .update(cx, |workspace, window, cx| {
+                assert!(!workspace.has_active_modal(window, cx));
+            })
+            .unwrap();
+    }
+
     fn init_test(cx: &mut TestAppContext) {
         cx.update(|cx| {
             let settings = SettingsStore::test(cx);
diff --git a/crates/workspace/src/workspace.rs b/crates/workspace/src/workspace.rs
index 81247b89593074e8f44565d9a8daabaf6b8307f5..086554335f2733a7e6c8d7976d65acbaeb044050 100644
--- a/crates/workspace/src/workspace.rs
+++ b/crates/workspace/src/workspace.rs
@@ -5864,6 +5864,11 @@ impl Workspace {
         })
     }
 
+    pub fn hide_modal(&mut self, window: &mut Window, cx: &mut App) -> bool {
+        self.modal_layer
+            .update(cx, |modal_layer, cx| modal_layer.hide_modal(window, cx))
+    }
+
     pub fn toggle_status_toast<V: ToastView>(&mut self, entity: Entity<V>, cx: &mut App) {
         self.toast_layer
             .update(cx, |toast_layer, cx| toast_layer.toggle_toast(cx, entity))