diff --git a/crates/recent_projects/src/recent_projects.rs b/crates/recent_projects/src/recent_projects.rs
index dc952764056f6465840825d2a1f0fce886f401c0..24010017ff9fa4eb62a1787332fed70f740ccc2d 100644
--- a/crates/recent_projects/src/recent_projects.rs
+++ b/crates/recent_projects/src/recent_projects.rs
@@ -2003,7 +2003,7 @@ mod tests {
     use std::path::PathBuf;
 
     use editor::Editor;
-    use gpui::{TestAppContext, UpdateGlobal, WindowHandle};
+    use gpui::{TestAppContext, UpdateGlobal, VisualTestContext, WindowHandle};
 
     use serde_json::json;
     use settings::SettingsStore;
@@ -2242,6 +2242,71 @@ mod tests {
             .unwrap();
     }
 
+    #[gpui::test]
+    async fn test_dev_container_modal_not_dismissed_on_backdrop_click(cx: &mut TestAppContext) {
+        let app_state = init_test(cx);
+
+        app_state
+            .fs
+            .as_fake()
+            .insert_tree(
+                path!("/project"),
+                json!({
+                    ".devcontainer": {
+                        "devcontainer.json": "{}"
+                    },
+                    "src": {
+                        "main.rs": "fn main() {}"
+                    }
+                }),
+            )
+            .await;
+
+        cx.update(|cx| {
+            open_paths(
+                &[PathBuf::from(path!("/project"))],
+                app_state,
+                workspace::OpenOptions::default(),
+                cx,
+            )
+        })
+        .await
+        .unwrap();
+
+        assert_eq!(cx.update(|cx| cx.windows().len()), 1);
+        let multi_workspace = cx.update(|cx| cx.windows()[0].downcast::<MultiWorkspace>().unwrap());
+
+        cx.run_until_parked();
+
+        cx.dispatch_action(*multi_workspace, OpenDevContainer);
+
+        multi_workspace
+            .update(cx, |multi_workspace, _, cx| {
+                assert!(
+                    multi_workspace
+                        .active_modal::<RemoteServerProjects>(cx)
+                        .is_some(),
+                    "Dev container modal should be open"
+                );
+            })
+            .unwrap();
+
+        // Click outside the modal (on the backdrop) to try to dismiss it
+        let mut vcx = VisualTestContext::from_window(*multi_workspace, cx);
+        vcx.simulate_click(gpui::point(px(1.0), px(1.0)), gpui::Modifiers::default());
+
+        multi_workspace
+            .update(cx, |multi_workspace, _, cx| {
+                assert!(
+                    multi_workspace
+                        .active_modal::<RemoteServerProjects>(cx)
+                        .is_some(),
+                    "Dev container modal should remain open during creation"
+                );
+            })
+            .unwrap();
+    }
+
     #[gpui::test]
     async fn test_open_dev_container_action_with_multiple_configs(cx: &mut TestAppContext) {
         let app_state = init_test(cx);
diff --git a/crates/recent_projects/src/remote_servers.rs b/crates/recent_projects/src/remote_servers.rs
index 404b0673ab8cf220385d1a0ce41a40156d469a01..7db09c88616879010352cbc2ac0fd0549982240b 100644
--- a/crates/recent_projects/src/remote_servers.rs
+++ b/crates/recent_projects/src/remote_servers.rs
@@ -54,7 +54,7 @@ use util::{
     rel_path::RelPath,
 };
 use workspace::{
-    AppState, ModalView, MultiWorkspace, OpenLog, OpenOptions, Toast, Workspace,
+    AppState, DismissDecision, ModalView, MultiWorkspace, OpenLog, OpenOptions, Toast, Workspace,
     notifications::{DetachAndPromptErr, NotificationId},
     open_remote_project_with_existing_connection,
 };
@@ -69,6 +69,7 @@ pub struct RemoteServerProjects {
     create_new_window: bool,
     dev_container_picker: Option<Entity<Picker<DevContainerPickerDelegate>>>,
     _subscription: Subscription,
+    allow_dismissal: bool,
 }
 
 struct CreateRemoteServer {
@@ -920,6 +921,7 @@ impl RemoteServerProjects {
             create_new_window,
             dev_container_picker: None,
             _subscription,
+            allow_dismissal: true,
         }
     }
 
@@ -1140,6 +1142,7 @@ impl RemoteServerProjects {
     }
 
     fn view_in_progress_dev_container(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        self.allow_dismissal = false;
         self.mode = Mode::CreateRemoteDevContainer(CreateRemoteDevContainer::new(
             DevContainerCreationProgress::Creating,
             cx,
@@ -1309,6 +1312,7 @@ impl RemoteServerProjects {
                 cx.emit(DismissEvent);
             }
             _ => {
+                self.allow_dismissal = true;
                 self.mode = Mode::default_mode(&self.ssh_config_servers, cx);
                 self.focus_handle(cx).focus(window, cx);
                 cx.notify();
@@ -1875,6 +1879,7 @@ impl RemoteServerProjects {
                         .ok();
                         entity
                             .update_in(cx, |remote_server_projects, window, cx| {
+                                remote_server_projects.allow_dismissal = true;
                                 remote_server_projects.mode =
                                     Mode::CreateRemoteDevContainer(CreateRemoteDevContainer::new(
                                         DevContainerCreationProgress::Error(format!("{e}")),
@@ -1897,7 +1902,8 @@ impl RemoteServerProjects {
             .log_err();
 
             entity
-                .update(cx, |_, cx| {
+                .update(cx, |this, cx| {
+                    this.allow_dismissal = true;
                     cx.emit(DismissEvent);
                 })
                 .log_err();
@@ -2948,7 +2954,15 @@ fn get_text(element: &Entity<Editor>, cx: &mut App) -> String {
     element.read(cx).text(cx).trim().to_string()
 }
 
-impl ModalView for RemoteServerProjects {}
+impl ModalView for RemoteServerProjects {
+    fn on_before_dismiss(
+        &mut self,
+        _window: &mut Window,
+        _cx: &mut Context<Self>,
+    ) -> DismissDecision {
+        DismissDecision::Dismiss(self.allow_dismissal)
+    }
+}
 
 impl Focusable for RemoteServerProjects {
     fn focus_handle(&self, cx: &App) -> FocusHandle {