diff --git a/.github/actions/spelling/allow/apis.txt b/.github/actions/spelling/allow/apis.txt
index 032570e55f8..7bd696c07c6 100644
--- a/.github/actions/spelling/allow/apis.txt
+++ b/.github/actions/spelling/allow/apis.txt
@@ -68,6 +68,7 @@ ITab
 ITaskbar
 IUri
 IVirtual
+KEYSELECT
 LCID
 llabs
 llu
@@ -80,12 +81,16 @@ MULTIPLEUSE
 NCHITTEST
 NCLBUTTONDBLCLK
 NCRBUTTONDBLCLK
+NIF
+NIN
 NOAGGREGATION
 NOASYNC
 NOCHANGEDIR
 NOPROGRESS
 NOREDIRECTIONBITMAP
 NOREPEAT
+NOTIFYICON
+NOTIFYICONDATA
 ntprivapi
 oaidl
 ocidl
@@ -108,9 +113,11 @@ RSHIFT
 schandle
 semver
 serializer
+SETVERSION
 SHELLEXECUTEINFOW
 shobjidl
 SHOWMINIMIZED
+SHOWTIP
 SINGLEUSE
 SIZENS
 smoothstep
diff --git a/.github/actions/spelling/expect/expect.txt b/.github/actions/spelling/expect/expect.txt
index 00fe5ab1e10..ef0a37c6dd7 100644
--- a/.github/actions/spelling/expect/expect.txt
+++ b/.github/actions/spelling/expect/expect.txt
@@ -2773,6 +2773,7 @@ Xes
 xff
 XFile
 XFORM
+xIcon
 XManifest
 XMath
 XMFLOAT
@@ -2806,6 +2807,7 @@ YCast
 YCENTER
 YCount
 YDPI
+yIcon
 yml
 YOffset
 YPosition
diff --git a/src/cascadia/WinRTUtils/WinRTUtils.vcxproj b/src/cascadia/WinRTUtils/WinRTUtils.vcxproj
index be5cee9e08e..2bd60e14348 100644
--- a/src/cascadia/WinRTUtils/WinRTUtils.vcxproj
+++ b/src/cascadia/WinRTUtils/WinRTUtils.vcxproj
@@ -15,7 +15,7 @@
   <!-- ========================= Headers ======================== -->
   <ItemGroup>
     <ClInclude Include="pch.h" />
-    <ClInclude Include="ScopedResourceLoader.h" />
+    <ClInclude Include="inc\ScopedResourceLoader.h" />
     <ClInclude Include="inc\LibraryResources.h" />
     <ClInclude Include="inc\ThrottledFunc.h" />
     <ClInclude Include="inc\Utils.h" />
diff --git a/src/cascadia/WinRTUtils/ScopedResourceLoader.h b/src/cascadia/WinRTUtils/inc/ScopedResourceLoader.h
similarity index 100%
rename from src/cascadia/WinRTUtils/ScopedResourceLoader.h
rename to src/cascadia/WinRTUtils/inc/ScopedResourceLoader.h
diff --git a/src/cascadia/WindowsTerminal/AppHost.cpp b/src/cascadia/WindowsTerminal/AppHost.cpp
index 753166bf1fe..8566f221914 100644
--- a/src/cascadia/WindowsTerminal/AppHost.cpp
+++ b/src/cascadia/WindowsTerminal/AppHost.cpp
@@ -9,6 +9,9 @@
 #include "../WinRTUtils/inc/WtExeUtils.h"
 #include "resource.h"
 #include "VirtualDesktopUtils.h"
+#include "icon.h"
+
+#include <ScopedResourceLoader.h>
 
 using namespace winrt::Windows::UI;
 using namespace winrt::Windows::UI::Composition;
@@ -77,9 +80,15 @@ AppHost::AppHost() noexcept :
     _window->MouseScrolled({ this, &AppHost::_WindowMouseWheeled });
     _window->WindowActivated({ this, &AppHost::_WindowActivated });
     _window->HotkeyPressed({ this, &AppHost::_GlobalHotkeyPressed });
+    _window->NotifyTrayIconPressed({ this, &AppHost::_HandleTrayIconPressed });
     _window->SetAlwaysOnTop(_logic.GetInitialAlwaysOnTop());
     _window->MakeWindow();
 
+    if (_window->IsQuakeWindow())
+    {
+        _UpdateTrayIcon();
+    }
+
     _windowManager.BecameMonarch({ this, &AppHost::_BecomeMonarch });
     if (_windowManager.IsMonarch())
     {
@@ -90,6 +99,11 @@ AppHost::AppHost() noexcept :
 AppHost::~AppHost()
 {
     // destruction order is important for proper teardown here
+    if (_trayIconData)
+    {
+        Shell_NotifyIcon(NIM_DELETE, &_trayIconData.value());
+        _trayIconData.reset();
+    }
 
     _window = nullptr;
     _app.Close();
@@ -925,12 +939,26 @@ void AppHost::_HandleSettingsChanged(const winrt::Windows::Foundation::IInspecta
 void AppHost::_IsQuakeWindowChanged(const winrt::Windows::Foundation::IInspectable&,
                                     const winrt::Windows::Foundation::IInspectable&)
 {
+    if (_window->IsQuakeWindow() && !_logic.IsQuakeWindow())
+    {
+        // If we're exiting quake mode, we should make our
+        // tray icon disappear.
+        if (_trayIconData)
+        {
+            Shell_NotifyIcon(NIM_DELETE, &_trayIconData.value());
+            _trayIconData.reset();
+        }
+    }
+    else if (!_window->IsQuakeWindow() && _logic.IsQuakeWindow())
+    {
+        _UpdateTrayIcon();
+    }
+
     _window->IsQuakeWindow(_logic.IsQuakeWindow());
 }
 
 void AppHost::_SummonWindowRequested(const winrt::Windows::Foundation::IInspectable& sender,
                                      const winrt::Windows::Foundation::IInspectable&)
-
 {
     const Remoting::SummonWindowBehavior summonArgs{};
     summonArgs.MoveToCurrentDesktop(false);
@@ -939,3 +967,56 @@ void AppHost::_SummonWindowRequested(const winrt::Windows::Foundation::IInspecta
     summonArgs.ToggleVisibility(false); // Do not toggle, just make visible.
     _HandleSummon(sender, summonArgs);
 }
+
+void AppHost::_HandleTrayIconPressed()
+{
+    // Currently scoping "minimize to tray" to only
+    // the quake window.
+    if (_logic.IsQuakeWindow())
+    {
+        const Remoting::SummonWindowBehavior summonArgs{};
+        summonArgs.DropdownDuration(200);
+        _window->SummonWindow(summonArgs);
+    }
+}
+
+// Method Description:
+// - Creates and adds an icon to the notification tray.
+// Arguments:
+// - <unused>
+// Return Value:
+// - <none>
+void AppHost::_UpdateTrayIcon()
+{
+    if (!_trayIconData && _window->GetHandle())
+    {
+        NOTIFYICONDATA nid{};
+
+        // This HWND will receive the callbacks sent by the tray icon.
+        nid.hWnd = _window->GetHandle();
+
+        // App-defined identifier of the icon. The HWND and ID are used
+        // to identify which icon to operate on when calling Shell_NotifyIcon.
+        // Multiple icons can be associated with one HWND, but here we're only
+        // going to be showing one so the ID doesn't really matter.
+        nid.uID = 1;
+
+        nid.uCallbackMessage = CM_NOTIFY_FROM_TRAY;
+
+        ScopedResourceLoader cascadiaLoader{ L"Resources" };
+
+        nid.hIcon = static_cast<HICON>(GetActiveAppIconHandle(ICON_SMALL));
+        StringCchCopy(nid.szTip, ARRAYSIZE(nid.szTip), cascadiaLoader.GetLocalizedString(L"AppName").c_str());
+        nid.uFlags = NIF_MESSAGE | NIF_SHOWTIP | NIF_TIP | NIF_ICON;
+        Shell_NotifyIcon(NIM_ADD, &nid);
+
+        // For whatever reason, the NIM_ADD call doesn't seem to set the version
+        // properly, resulting in us being unable to receive the expected notification
+        // events. We actually have to make a separate NIM_SETVERSION call for it to
+        // work properly.
+        nid.uVersion = NOTIFYICON_VERSION_4;
+        Shell_NotifyIcon(NIM_SETVERSION, &nid);
+
+        _trayIconData = nid;
+    }
+}
diff --git a/src/cascadia/WindowsTerminal/AppHost.h b/src/cascadia/WindowsTerminal/AppHost.h
index 1efaf2bf9e0..a8511dbc258 100644
--- a/src/cascadia/WindowsTerminal/AppHost.h
+++ b/src/cascadia/WindowsTerminal/AppHost.h
@@ -85,4 +85,9 @@ class AppHost
 
     void _SummonWindowRequested(const winrt::Windows::Foundation::IInspectable& sender,
                                 const winrt::Windows::Foundation::IInspectable& args);
+
+    void _UpdateTrayIcon();
+    void _HandleTrayIconPressed();
+
+    std::optional<NOTIFYICONDATA> _trayIconData;
 };
diff --git a/src/cascadia/WindowsTerminal/BaseWindow.h b/src/cascadia/WindowsTerminal/BaseWindow.h
index d1a8b86d775..581b386172b 100644
--- a/src/cascadia/WindowsTerminal/BaseWindow.h
+++ b/src/cascadia/WindowsTerminal/BaseWindow.h
@@ -3,9 +3,7 @@
 
 #pragma once
 
-// Custom window messages
-#define CM_UPDATE_TITLE (WM_USER)
-
+#include "CustomWindowMessages.h"
 #include <wil/resource.h>
 
 template<typename T>
diff --git a/src/cascadia/WindowsTerminal/CustomWindowMessages.h b/src/cascadia/WindowsTerminal/CustomWindowMessages.h
new file mode 100644
index 00000000000..beb0766affe
--- /dev/null
+++ b/src/cascadia/WindowsTerminal/CustomWindowMessages.h
@@ -0,0 +1,8 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT license.
+
+#pragma once
+
+// Custom window messages
+#define CM_UPDATE_TITLE (WM_USER)
+#define CM_NOTIFY_FROM_TRAY (WM_USER + 1)
diff --git a/src/cascadia/WindowsTerminal/IslandWindow.cpp b/src/cascadia/WindowsTerminal/IslandWindow.cpp
index 95503aaa241..8ecd355c1bb 100644
--- a/src/cascadia/WindowsTerminal/IslandWindow.cpp
+++ b/src/cascadia/WindowsTerminal/IslandWindow.cpp
@@ -452,6 +452,7 @@ long IslandWindow::_calculateTotalSize(const bool isWidth, const long clientSize
     {
         if (wparam == SIZE_MINIMIZED && _isQuakeWindow)
         {
+            _NotifyWindowHiddenHandlers();
             ShowWindow(GetHandle(), SW_HIDE);
             return 0;
         }
@@ -506,6 +507,19 @@ long IslandWindow::_calculateTotalSize(const bool isWidth, const long clientSize
     case WM_THEMECHANGED:
         UpdateWindowIconForActiveMetrics(_window.get());
         return 0;
+    case CM_NOTIFY_FROM_TRAY:
+    {
+        switch (LOWORD(lparam))
+        {
+        case NIN_SELECT:
+        case NIN_KEYSELECT:
+        {
+            _NotifyTrayIconPressedHandlers();
+            return 0;
+        }
+        }
+        break;
+    }
     }
 
     // TODO: handle messages here...
diff --git a/src/cascadia/WindowsTerminal/IslandWindow.h b/src/cascadia/WindowsTerminal/IslandWindow.h
index a7fe739da2a..0e5859bc4fd 100644
--- a/src/cascadia/WindowsTerminal/IslandWindow.h
+++ b/src/cascadia/WindowsTerminal/IslandWindow.h
@@ -51,6 +51,8 @@ class IslandWindow :
     WINRT_CALLBACK(MouseScrolled, winrt::delegate<void(til::point, int32_t)>);
     WINRT_CALLBACK(WindowActivated, winrt::delegate<void()>);
     WINRT_CALLBACK(HotkeyPressed, winrt::delegate<void(long)>);
+    WINRT_CALLBACK(NotifyTrayIconPressed, winrt::delegate<void()>);
+    WINRT_CALLBACK(NotifyWindowHidden, winrt::delegate<void()>);
 
 protected:
     void ForceResize()
diff --git a/src/cascadia/WindowsTerminal/WindowsTerminal.vcxproj b/src/cascadia/WindowsTerminal/WindowsTerminal.vcxproj
index b92f8589fd1..ee7de8ced20 100644
--- a/src/cascadia/WindowsTerminal/WindowsTerminal.vcxproj
+++ b/src/cascadia/WindowsTerminal/WindowsTerminal.vcxproj
@@ -44,6 +44,7 @@
     <ClInclude Include="resource.h" />
     <ClInclude Include="AppHost.h" />
     <ClInclude Include="BaseWindow.h" />
+    <ClInclude Include="CustomWindowMessages.h" />
     <ClInclude Include="IslandWindow.h" />
     <ClInclude Include="NonClientIslandWindow.h" />
     <ClInclude Include="VirtualDesktopUtils.h" />
@@ -81,6 +82,10 @@
     <ProjectReference Include="$(OpenConsoleDir)src\cascadia\TerminalSettingsEditor\Microsoft.Terminal.Settings.Editor.vcxproj" />
 
     <ProjectReference Include="$(OpenConsoleDir)src\types\lib\types.vcxproj" />
+    <ProjectReference Include="$(OpenConsoleDir)src\cascadia\WinRTUtils\WinRTUtils.vcxproj">
+      <Project>{CA5CAD1A-039A-4929-BA2A-8BEB2E4106FE}</Project>
+      <ReferenceOutputAssembly>false</ReferenceOutputAssembly>
+    </ProjectReference>
   </ItemGroup>
 
   <!-- Manually add a reference to Core here. We need this so MDMERGE will know
diff --git a/src/cascadia/WindowsTerminal/icon.cpp b/src/cascadia/WindowsTerminal/icon.cpp
index ca194de06f9..4706894ad43 100644
--- a/src/cascadia/WindowsTerminal/icon.cpp
+++ b/src/cascadia/WindowsTerminal/icon.cpp
@@ -27,22 +27,27 @@ static int _GetActiveAppIconResource()
     return iconResource;
 }
 
-void UpdateWindowIconForActiveMetrics(HWND window)
+HANDLE GetActiveAppIconHandle(int size)
 {
     auto iconResource{ MAKEINTRESOURCEW(_GetActiveAppIconResource()) };
 
+    const auto smXIcon = size == ICON_SMALL ? SM_CXSMICON : SM_CXICON;
+    const auto smYIcon = size == ICON_SMALL ? SM_CYSMICON : SM_CYICON;
+
     // These handles are loaded with LR_SHARED, so they are safe to "leak".
-    HANDLE smallIcon{ LoadImageW(wil::GetModuleInstanceHandle(), iconResource, IMAGE_ICON, GetSystemMetrics(SM_CXSMICON), GetSystemMetrics(SM_CYSMICON), LR_SHARED) };
-    LOG_LAST_ERROR_IF_NULL(smallIcon);
+    HANDLE hIcon{ LoadImageW(wil::GetModuleInstanceHandle(), iconResource, IMAGE_ICON, GetSystemMetrics(smXIcon), GetSystemMetrics(smYIcon), LR_SHARED) };
+    LOG_LAST_ERROR_IF_NULL(hIcon);
 
-    HANDLE largeIcon{ LoadImageW(wil::GetModuleInstanceHandle(), iconResource, IMAGE_ICON, GetSystemMetrics(SM_CXICON), GetSystemMetrics(SM_CYICON), LR_SHARED) };
-    LOG_LAST_ERROR_IF_NULL(largeIcon);
+    return hIcon;
+}
 
-    if (smallIcon)
+void UpdateWindowIconForActiveMetrics(HWND window)
+{
+    if (auto smallIcon = GetActiveAppIconHandle(ICON_SMALL))
     {
         SendMessageW(window, WM_SETICON, ICON_SMALL, reinterpret_cast<LPARAM>(smallIcon));
     }
-    if (largeIcon)
+    if (auto largeIcon = GetActiveAppIconHandle(ICON_BIG))
     {
         SendMessageW(window, WM_SETICON, ICON_BIG, reinterpret_cast<LPARAM>(largeIcon));
     }
diff --git a/src/cascadia/WindowsTerminal/icon.h b/src/cascadia/WindowsTerminal/icon.h
index 5e418fc284e..ed4fb5587f6 100644
--- a/src/cascadia/WindowsTerminal/icon.h
+++ b/src/cascadia/WindowsTerminal/icon.h
@@ -3,4 +3,5 @@
 
 #pragma once
 
+HANDLE GetActiveAppIconHandle(const int size);
 void UpdateWindowIconForActiveMetrics(HWND window);
diff --git a/src/cascadia/WindowsTerminal/pch.h b/src/cascadia/WindowsTerminal/pch.h
index a8befdf6106..ce71201a4b1 100644
--- a/src/cascadia/WindowsTerminal/pch.h
+++ b/src/cascadia/WindowsTerminal/pch.h
@@ -64,6 +64,7 @@ Module Name:
 #include <winrt/Windows.UI.Xaml.Controls.h>
 #include <winrt/Windows.ui.xaml.media.h>
 #include <winrt/Windows.ApplicationModel.h>
+#include <winrt/Windows.ApplicationModel.Resources.Core.h>
 
 #include <winrt/TerminalApp.h>
 #include <winrt/Microsoft.Terminal.Settings.Model.h>