diff --git a/src/steamcompmgr.cpp b/src/steamcompmgr.cpp
index 433a72f..c703cfb 100644
--- a/src/steamcompmgr.cpp
+++ b/src/steamcompmgr.cpp
@@ -3653,7 +3653,19 @@ determine_and_apply_focus()
 		}
 	}
 
-	sdlwindow_visible( global_focus.focusWindow != nullptr );
+#if HAVE_OPENVR
+	if ( BIsVRSession() )
+	{
+		vrsession_set_dashboard_visible( global_focus.focusWindow != nullptr );
+	}
+	else
+#endif
+	{
+		if ( !BIsVRSession() && BIsNested() )
+		{
+			sdlwindow_visible( global_focus.focusWindow != nullptr );
+		}
+	}
 
 	// Some games such as Disgaea PC (405900) don't take controller input until
 	// the window is first clicked on despite it having focus.
diff --git a/src/vr_session.cpp b/src/vr_session.cpp
index ac9ee20..eb21679 100644
--- a/src/vr_session.cpp
+++ b/src/vr_session.cpp
@@ -1,5 +1,6 @@
 #include "vr_session.hpp"
 #include "main.hpp"
+#include "openvr.h"
 #include "rendervulkan.hpp"
 #include "steamcompmgr.hpp"
 #include "wlserver.hpp"
@@ -149,6 +150,7 @@ bool vrsession_init()
     vr::VROverlay()->SetOverlayFlag( GetVR().hOverlay, vr::VROverlayFlags_EnableControlBarClose,	GetVR().bEnableControlBarClose );
     vr::VROverlay()->SetOverlayFlag( GetVR().hOverlay, vr::VROverlayFlags_WantsModalBehavior,	    GetVR().bModal );
     vr::VROverlay()->SetOverlayFlag( GetVR().hOverlay, vr::VROverlayFlags_SendVRSmoothScrollEvents, true );
+    vr::VROverlay()->SetOverlayFlag( GetVR().hOverlay, vr::VROverlayFlags_VisibleInDashboard,       false );
     vrsession_update_touch_mode();
 
     vr::VROverlay()->SetOverlayWidthInMeters( GetVR().hOverlay,  GetVR().flPhysicalWidth );
@@ -183,6 +185,11 @@ bool vrsession_visible()
     return g_bOverlayVisible.load();
 }
 
+void vrsession_set_dashboard_visible( bool bVisible )
+{
+    vr::VROverlay()->SetOverlayFlag( GetVR().hOverlay, vr::VROverlayFlags_VisibleInDashboard, bVisible );
+}
+
 void vrsession_wait_until_visible()
 {
     if (vrsession_visible())
diff --git a/src/vr_session.hpp b/src/vr_session.hpp
index 83bddb2..f8007ae 100644
--- a/src/vr_session.hpp
+++ b/src/vr_session.hpp
@@ -27,3 +27,5 @@ void vrsession_title( const char *title, std::shared_ptr<std::vector<uint32_t>>
 bool vrsession_ime_init();
 
 void vrsession_steam_mode( bool bSteamMode );
+
+void vrsession_set_dashboard_visible( bool bVisible );