diff --git a/config.def.h b/config.def.h
index 4172b098f4..4c184f6cfa 100644
--- a/config.def.h
+++ b/config.def.h
@@ -485,6 +485,8 @@ static bool config_save_on_exit = true;
 
 static const bool default_overlay_enable = false;
 
+static const bool overlay_hide_in_menu = true;
+
 #ifdef HAVE_MENU
 static bool default_block_config_read = true;
 
diff --git a/configuration.c b/configuration.c
index 9f6875fa00..7d41fcb758 100644
--- a/configuration.c
+++ b/configuration.c
@@ -1566,6 +1566,7 @@ static bool config_load_file(const char *path, bool set_defaults)
    config_get_path(conf, "input_overlay", settings->input.overlay, sizeof(settings->input.overlay));
    CONFIG_GET_BOOL_BASE(conf, settings, input.overlay_enable, "input_overlay_enable");
    CONFIG_GET_BOOL_BASE(conf, settings, input.overlay_enable_autopreferred, "input_overlay_enable_autopreferred");
+   CONFIG_GET_BOOL_BASE(conf, settings, input.overlay_hide_in_menu, "input_overlay_hide_in_menu");
    CONFIG_GET_FLOAT_BASE(conf, settings, input.overlay_opacity, "input_overlay_opacity");
    CONFIG_GET_FLOAT_BASE(conf, settings, input.overlay_scale, "input_overlay_scale");
 
@@ -2573,6 +2574,7 @@ bool config_save_file(const char *path)
    config_set_path(conf, "input_overlay", settings->input.overlay);
    config_set_bool(conf, "input_overlay_enable", settings->input.overlay_enable);
    config_set_bool(conf, "input_overlay_enable_autopreferred", settings->input.overlay_enable_autopreferred);
+   config_set_bool(conf, "input_overlay_hide_in_menu", settings->input.overlay_hide_in_menu);
    config_set_float(conf, "input_overlay_opacity",
          settings->input.overlay_opacity);
    config_set_float(conf, "input_overlay_scale",
diff --git a/configuration.h b/configuration.h
index b8a9421e99..e603e5ac0c 100644
--- a/configuration.h
+++ b/configuration.h
@@ -231,6 +231,7 @@ typedef struct settings
 
       bool overlay_enable;
       bool overlay_enable_autopreferred;
+      bool overlay_hide_in_menu;
       char overlay[PATH_MAX_LENGTH];
       float overlay_opacity;
       float overlay_scale;
diff --git a/menu/intl/menu_hash_us.c b/menu/intl/menu_hash_us.c
index adafb37fcd..76bc135844 100644
--- a/menu/intl/menu_hash_us.c
+++ b/menu/intl/menu_hash_us.c
@@ -26,6 +26,8 @@ static const char *menu_hash_to_str_us_label(uint32_t hash)
 {
    switch (hash)
    {
+      case MENU_LABEL_INPUT_OVERLAY_HIDE_IN_MENU:
+         return "overlay_hide_in_menu";
       case MENU_LABEL_NO_PLAYLIST_ENTRIES_AVAILABLE:
          return "no_playlist_entries_available";
       case MENU_LABEL_DOWNLOADED_FILE_DETECT_CORE_LIST:
@@ -614,6 +616,8 @@ const char *menu_hash_to_str_us(uint32_t hash)
 
    switch (hash)
    {
+      case MENU_LABEL_VALUE_INPUT_OVERLAY_HIDE_IN_MENU:
+         return "Hide Overlay In Menu";
       case MENU_VALUE_LANG_POLISH:
          return "Polish";
       case MENU_LABEL_VALUE_OVERLAY_AUTOLOAD_PREFERRED:
diff --git a/menu/menu_hash.h b/menu/menu_hash.h
index 4fcd6112c2..0a61b204c7 100644
--- a/menu/menu_hash.h
+++ b/menu/menu_hash.h
@@ -22,6 +22,9 @@
 extern "C" {
 #endif
 
+#define MENU_LABEL_INPUT_OVERLAY_HIDE_IN_MENU                                  0xf09e230aU
+#define MENU_LABEL_VALUE_INPUT_OVERLAY_HIDE_IN_MENU                            0x39b5bd0dU
+
 #define MENU_LABEL_VALUE_DOWNLOADED_FILE_DETECT_CORE_LIST                      0x39310fc8U
 #define MENU_LABEL_DOWNLOADED_FILE_DETECT_CORE_LIST                            0xb4f82700U
 
diff --git a/menu/menu_setting.c b/menu/menu_setting.c
index b87c9bcc47..17a44dd4bc 100644
--- a/menu/menu_setting.c
+++ b/menu/menu_setting.c
@@ -2474,11 +2474,18 @@ static void settings_data_list_current_add_flags(
 
 static void overlay_enable_toggle_change_handler(void *data)
 {
+   settings_t *settings  = config_get_ptr();
    rarch_setting_t *setting = (rarch_setting_t *)data;
 
    if (!setting)
       return;
 
+   if (settings && settings->input.overlay_hide_in_menu)
+   {
+      event_command(EVENT_CMD_OVERLAY_DEINIT);
+      return;
+   }
+
    if (setting->value.boolean)
       event_command(EVENT_CMD_OVERLAY_INIT);
    else
@@ -4542,7 +4549,7 @@ static bool setting_append_list_overlay_options(
    (*list)[list_info->index - 1].change_handler = overlay_enable_toggle_change_handler;
 
    CONFIG_BOOL(
-         settings->input.overlay_enable,
+         settings->input.overlay_enable_autopreferred,
          menu_hash_to_str(MENU_LABEL_OVERLAY_AUTOLOAD_PREFERRED),
          menu_hash_to_str(MENU_LABEL_VALUE_OVERLAY_AUTOLOAD_PREFERRED),
          true,
@@ -4555,6 +4562,20 @@ static bool setting_append_list_overlay_options(
          general_read_handler);
    (*list)[list_info->index - 1].change_handler = overlay_enable_toggle_change_handler;
 
+   CONFIG_BOOL(
+         settings->input.overlay_hide_in_menu,
+         menu_hash_to_str(MENU_LABEL_INPUT_OVERLAY_HIDE_IN_MENU),
+         menu_hash_to_str(MENU_LABEL_VALUE_INPUT_OVERLAY_HIDE_IN_MENU),
+         overlay_hide_in_menu,
+         menu_hash_to_str(MENU_VALUE_OFF),
+         menu_hash_to_str(MENU_VALUE_ON),
+         group_info.name,
+         subgroup_info.name,
+         parent_group,
+         general_write_handler,
+         general_read_handler);
+   (*list)[list_info->index - 1].change_handler = overlay_enable_toggle_change_handler;
+
    CONFIG_BOOL(
          settings->osk.enable,
          menu_hash_to_str(MENU_LABEL_INPUT_OSK_OVERLAY_ENABLE),
diff --git a/retroarch.cfg b/retroarch.cfg
index 102d77cf01..d710527be7 100644
--- a/retroarch.cfg
+++ b/retroarch.cfg
@@ -304,6 +304,8 @@
 # Enable or disable the current overlay.
 # input_overlay_enable = true
 
+# Hide the current overlay from appearing in menu screens.
+# input_overlay_hide_in_menu = true
 
 # Path to input overlay
 # input_overlay =
diff --git a/runloop.c b/runloop.c
index dcf7acb32f..130399b9ff 100644
--- a/runloop.c
+++ b/runloop.c
@@ -430,23 +430,23 @@ static void check_shader_dir(bool pressed_next, bool pressed_prev)
 static void do_state_check_menu_toggle(void)
 {
    global_t *global   = global_get_ptr();
+   settings_t *settings     = config_get_ptr();
 
    if (menu_driver_alive())
    {
       if (global->main_is_init && (global->core_type != CORE_TYPE_DUMMY))
       {
          rarch_main_set_state(RARCH_ACTION_STATE_MENU_RUNNING_FINISHED);
-#if 0
-         event_command(EVENT_CMD_OVERLAY_INIT);
-#endif
+         if (settings->input.overlay_hide_in_menu)
+            event_command(EVENT_CMD_OVERLAY_INIT);
       }
       return;
    }
 
    rarch_main_set_state(RARCH_ACTION_STATE_MENU_RUNNING);
-#if 0
-   event_command(EVENT_CMD_OVERLAY_DEINIT);
-#endif
+
+   if (settings->input.overlay_hide_in_menu)
+      event_command(EVENT_CMD_OVERLAY_DEINIT);
 }
 #endif
 
@@ -873,6 +873,7 @@ static void rarch_main_iterate_linefeed_overlay(void)
 {
    static char prev_overlay_restore = false;
    driver_t *driver                 = driver_get_ptr();
+   settings_t *settings             = config_get_ptr();
 
    if (driver->osk_enable && !driver->keyboard_linefeed_enable)
    {
@@ -890,7 +891,8 @@ static void rarch_main_iterate_linefeed_overlay(void)
    }
    else if (prev_overlay_restore)
    {
-      event_command(EVENT_CMD_OVERLAY_INIT);
+      if (!settings->input.overlay_hide_in_menu)
+         event_command(EVENT_CMD_OVERLAY_INIT);
       prev_overlay_restore = false;
    }
 }