diff --git a/src/cascadia/TerminalApp/Pane.cpp b/src/cascadia/TerminalApp/Pane.cpp
index a9f1767e13d..fe6fc8df0b7 100644
--- a/src/cascadia/TerminalApp/Pane.cpp
+++ b/src/cascadia/TerminalApp/Pane.cpp
@@ -59,6 +59,7 @@ Pane::Pane(const GUID& profile, const TermControl& control, const bool lastFocus
 
     // Register an event with the control to have it inform us when it gains focus.
     _gotFocusRevoker = control.GotFocus(winrt::auto_revoke, { this, &Pane::_ControlGotFocusHandler });
+    _lostFocusRevoker = control.LostFocus(winrt::auto_revoke, { this, &Pane::_ControlLostFocusHandler });
 
     // When our border is tapped, make sure to transfer focus to our control.
     // LOAD-BEARING: This will NOT work if the border's BorderBrush is set to
@@ -367,15 +368,18 @@ void Pane::_ControlWarningBellHandler(const winrt::Windows::Foundation::IInspect
     auto paneProfile = settings.FindProfile(_profile.value());
     if (paneProfile)
     {
-        if (WI_IsFlagSet(paneProfile.BellStyle(), winrt::Microsoft::Terminal::Settings::Model::BellStyle::Audible))
+        // We don't want to do anything if nothing is set, so check for that first
+        if (static_cast<int>(paneProfile.BellStyle()) != 0)
         {
-            const auto soundAlias = reinterpret_cast<LPCTSTR>(SND_ALIAS_SYSTEMHAND);
-            PlaySound(soundAlias, NULL, SND_ALIAS_ID | SND_ASYNC | SND_SENTRY);
-        }
-        if (WI_IsFlagSet(paneProfile.BellStyle(), winrt::Microsoft::Terminal::Settings::Model::BellStyle::Visual))
-        {
-            // Bubble this event up to app host, starting with bubbling to the hosting tab
-            _PaneRaiseVisualBellHandlers(nullptr);
+            if (WI_IsFlagSet(paneProfile.BellStyle(), winrt::Microsoft::Terminal::Settings::Model::BellStyle::Audible))
+            {
+                // Audible is set, play the sound
+                const auto soundAlias = reinterpret_cast<LPCTSTR>(SND_ALIAS_SYSTEMHAND);
+                PlaySound(soundAlias, NULL, SND_ALIAS_ID | SND_ASYNC | SND_SENTRY);
+            }
+
+            // raise the event with the bool value corresponding to the visual flag
+            _PaneRaiseBellHandlers(nullptr, WI_IsFlagSet(paneProfile.BellStyle(), winrt::Microsoft::Terminal::Settings::Model::BellStyle::Visual));
         }
     }
 }
@@ -394,6 +398,16 @@ void Pane::_ControlGotFocusHandler(winrt::Windows::Foundation::IInspectable cons
     _GotFocusHandlers(shared_from_this());
 }
 
+// Event Description:
+// - Called when our control loses focus. We'll use this to trigger our LostFocus
+//   callback. The tab that's hosting us should have registered a callback which
+//   can be used to update its own internal focus state
+void Pane::_ControlLostFocusHandler(winrt::Windows::Foundation::IInspectable const& /* sender */,
+                                    RoutedEventArgs const& /* args */)
+{
+    _LostFocusHandlers(shared_from_this());
+}
+
 // Method Description:
 // - Fire our Closed event to tell our parent that we should be removed.
 // Arguments:
@@ -703,6 +717,7 @@ void Pane::_CloseChild(const bool closeFirst)
 
         // re-attach our handler for the control's GotFocus event.
         _gotFocusRevoker = _control.GotFocus(winrt::auto_revoke, { this, &Pane::_ControlGotFocusHandler });
+        _lostFocusRevoker = _control.LostFocus(winrt::auto_revoke, { this, &Pane::_ControlLostFocusHandler });
 
         // If we're inheriting the "last active" state from one of our children,
         // focus our control now. This should trigger our own GotFocus event.
@@ -1408,6 +1423,7 @@ std::pair<std::shared_ptr<Pane>, std::shared_ptr<Pane>> Pane::_Split(SplitState
     // control telling us that it's now focused, we want it telling its new
     // parent.
     _gotFocusRevoker.revoke();
+    _lostFocusRevoker.revoke();
 
     _splitState = actualSplitType;
     _desiredSplitPosition = 1.0f - splitSize;
@@ -2057,4 +2073,5 @@ std::optional<SplitState> Pane::PreCalculateAutoSplit(const std::shared_ptr<Pane
 }
 
 DEFINE_EVENT(Pane, GotFocus, _GotFocusHandlers, winrt::delegate<std::shared_ptr<Pane>>);
-DEFINE_EVENT(Pane, PaneRaiseVisualBell, _PaneRaiseVisualBellHandlers, winrt::delegate<std::shared_ptr<Pane>>);
+DEFINE_EVENT(Pane, LostFocus, _LostFocusHandlers, winrt::delegate<std::shared_ptr<Pane>>);
+DEFINE_EVENT(Pane, PaneRaiseBell, _PaneRaiseBellHandlers, winrt::Windows::Foundation::EventHandler<bool>);
diff --git a/src/cascadia/TerminalApp/Pane.h b/src/cascadia/TerminalApp/Pane.h
index 01e6cc237c8..0fd84210b38 100644
--- a/src/cascadia/TerminalApp/Pane.h
+++ b/src/cascadia/TerminalApp/Pane.h
@@ -83,7 +83,8 @@ class Pane : public std::enable_shared_from_this<Pane>
 
     WINRT_CALLBACK(Closed, winrt::Windows::Foundation::EventHandler<winrt::Windows::Foundation::IInspectable>);
     DECLARE_EVENT(GotFocus, _GotFocusHandlers, winrt::delegate<std::shared_ptr<Pane>>);
-    DECLARE_EVENT(PaneRaiseVisualBell, _PaneRaiseVisualBellHandlers, winrt::delegate<std::shared_ptr<Pane>>);
+    DECLARE_EVENT(LostFocus, _LostFocusHandlers, winrt::delegate<std::shared_ptr<Pane>>);
+    DECLARE_EVENT(PaneRaiseBell, _PaneRaiseBellHandlers, winrt::Windows::Foundation::EventHandler<bool>);
 
 private:
     struct SnapSizeResult;
@@ -111,6 +112,7 @@ class Pane : public std::enable_shared_from_this<Pane>
     winrt::event_token _warningBellToken{ 0 };
 
     winrt::Windows::UI::Xaml::UIElement::GotFocus_revoker _gotFocusRevoker;
+    winrt::Windows::UI::Xaml::UIElement::LostFocus_revoker _lostFocusRevoker;
 
     std::shared_mutex _createCloseLock{};
 
@@ -144,6 +146,8 @@ class Pane : public std::enable_shared_from_this<Pane>
                                     winrt::Windows::Foundation::IInspectable const& e);
     void _ControlGotFocusHandler(winrt::Windows::Foundation::IInspectable const& sender,
                                  winrt::Windows::UI::Xaml::RoutedEventArgs const& e);
+    void _ControlLostFocusHandler(winrt::Windows::Foundation::IInspectable const& sender,
+                                  winrt::Windows::UI::Xaml::RoutedEventArgs const& e);
 
     std::pair<float, float> _CalcChildrenSizes(const float fullSize) const;
     SnapChildrenSizeResult _CalcSnappedChildrenSizes(const bool widthOrHeight, const float fullSize) const;
diff --git a/src/cascadia/TerminalApp/TabHeaderControl.h b/src/cascadia/TerminalApp/TabHeaderControl.h
index 39744b2bcb0..12ff4262d54 100644
--- a/src/cascadia/TerminalApp/TabHeaderControl.h
+++ b/src/cascadia/TerminalApp/TabHeaderControl.h
@@ -25,6 +25,7 @@ namespace winrt::TerminalApp::implementation
         OBSERVABLE_GETSET_PROPERTY(bool, IsPaneZoomed, _PropertyChangedHandlers);
         OBSERVABLE_GETSET_PROPERTY(bool, IsProgressRingActive, _PropertyChangedHandlers);
         OBSERVABLE_GETSET_PROPERTY(bool, IsProgressRingIndeterminate, _PropertyChangedHandlers);
+        OBSERVABLE_GETSET_PROPERTY(bool, BellIndicator, _PropertyChangedHandlers);
         OBSERVABLE_GETSET_PROPERTY(uint32_t, ProgressValue, _PropertyChangedHandlers);
 
     private:
diff --git a/src/cascadia/TerminalApp/TabHeaderControl.idl b/src/cascadia/TerminalApp/TabHeaderControl.idl
index 0fc8fc2da3e..49cead65646 100644
--- a/src/cascadia/TerminalApp/TabHeaderControl.idl
+++ b/src/cascadia/TerminalApp/TabHeaderControl.idl
@@ -11,6 +11,7 @@ namespace TerminalApp
         Boolean IsPaneZoomed { get; set; };
         Boolean IsProgressRingActive { get; set; };
         Boolean IsProgressRingIndeterminate { get; set; };
+        Boolean BellIndicator { get; set; };
         UInt32 ProgressValue { get; set; };
 
         TabHeaderControl();
diff --git a/src/cascadia/TerminalApp/TabHeaderControl.xaml b/src/cascadia/TerminalApp/TabHeaderControl.xaml
index 65e8b5ee7b9..1bb8e7ab76a 100644
--- a/src/cascadia/TerminalApp/TabHeaderControl.xaml
+++ b/src/cascadia/TerminalApp/TabHeaderControl.xaml
@@ -26,6 +26,12 @@ the MIT License. See LICENSE in the project root for license information. -->
         <!--We want the progress ring to 'replace' the tab icon, but we don't have control
         over the tab icon here (the tab view item does) - so we hide the tab icon there
         and use a negative margin for the progress ring here to put it where the icon would be-->
+        <FontIcon x:Name="HeaderBellIndicator"
+                  FontFamily="Segoe MDL2 Assets"
+                  Visibility="{x:Bind BellIndicator, Mode=OneWay}"
+                  Glyph="&#xEA8F;"
+                  FontSize="12"
+                  Margin="0,0,8,0"/>
         <FontIcon x:Name="HeaderZoomIcon"
                   FontFamily="Segoe MDL2 Assets"
                   Visibility="{x:Bind IsPaneZoomed, Mode=OneWay}"
diff --git a/src/cascadia/TerminalApp/TerminalTab.cpp b/src/cascadia/TerminalApp/TerminalTab.cpp
index 3777f0ab19e..5f21143f621 100644
--- a/src/cascadia/TerminalApp/TerminalTab.cpp
+++ b/src/cascadia/TerminalApp/TerminalTab.cpp
@@ -54,6 +54,22 @@ namespace winrt::TerminalApp::implementation
         TabViewItem().Header(_headerControl);
     }
 
+    // Method Description:
+    // - Called when the timer for the bell indicator in the tab header fires
+    // - Removes the bell indicator from the tab header
+    // Arguments:
+    // - sender, e: not used
+    void TerminalTab::_BellIndicatorTimerTick(Windows::Foundation::IInspectable const& /*sender*/, Windows::Foundation::IInspectable const& /*e*/)
+    {
+        ShowBellIndicator(false);
+        // Just do a sanity check that the timer still exists before we stop it
+        if (_bellIndicatorTimer.has_value())
+        {
+            _bellIndicatorTimer->Stop();
+            _bellIndicatorTimer = std::nullopt;
+        }
+    }
+
     // Method Description:
     // - Initializes a TabViewItem for this Tab instance.
     // Arguments:
@@ -129,6 +145,11 @@ namespace winrt::TerminalApp::implementation
                 lastFocusedControl.Focus(_focusState);
                 lastFocusedControl.TaskbarProgressChanged();
             }
+            // When we gain focus, remove the bell indicator if it is active
+            if (_headerControl.BellIndicator())
+            {
+                ShowBellIndicator(false);
+            }
         }
     }
 
@@ -236,6 +257,44 @@ namespace winrt::TerminalApp::implementation
         }
     }
 
+    // Method Description:
+    // - Hide or show the bell indicator in the tab header
+    // Arguments:
+    // - show: if true, we show the indicator; if false, we hide the indicator
+    winrt::fire_and_forget TerminalTab::ShowBellIndicator(const bool show)
+    {
+        auto weakThis{ get_weak() };
+
+        co_await winrt::resume_foreground(TabViewItem().Dispatcher());
+
+        if (auto tab{ weakThis.get() })
+        {
+            tab->_headerControl.BellIndicator(show);
+        }
+    }
+
+    // Method Description:
+    // - Activates the timer for the bell indicator in the tab
+    // - Called if a bell raised when the tab already has focus
+    winrt::fire_and_forget TerminalTab::ActivateBellIndicatorTimer()
+    {
+        auto weakThis{ get_weak() };
+
+        co_await winrt::resume_foreground(TabViewItem().Dispatcher());
+
+        if (auto tab{ weakThis.get() })
+        {
+            if (!tab->_bellIndicatorTimer.has_value())
+            {
+                DispatcherTimer bellIndicatorTimer;
+                bellIndicatorTimer.Interval(std::chrono::milliseconds(2000));
+                bellIndicatorTimer.Tick({ get_weak(), &TerminalTab::_BellIndicatorTimerTick });
+                bellIndicatorTimer.Start();
+                tab->_bellIndicatorTimer.emplace(std::move(bellIndicatorTimer));
+            }
+        }
+    }
+
     // Method Description:
     // - Gets the title string of the last focused terminal control in our tree.
     //   Returns the empty string if there is no such control.
@@ -564,10 +623,30 @@ namespace winrt::TerminalApp::implementation
             // Do nothing if the Tab's lifetime is expired or pane isn't new.
             auto tab{ weakThis.get() };
 
-            if (tab && sender != tab->_activePane)
+            if (tab)
             {
-                tab->_UpdateActivePane(sender);
-                tab->_RecalculateAndApplyTabColor();
+                if (sender != tab->_activePane)
+                {
+                    tab->_UpdateActivePane(sender);
+                    tab->_RecalculateAndApplyTabColor();
+                }
+                tab->_focusState = WUX::FocusState::Programmatic;
+                // This tab has gained focus, remove the bell indicator if it is active
+                if (tab->_headerControl.BellIndicator())
+                {
+                    tab->ShowBellIndicator(false);
+                }
+            }
+        });
+
+        pane->LostFocus([weakThis](std::shared_ptr<Pane> /*sender*/) {
+            // Do nothing if the Tab's lifetime is expired or pane isn't new.
+            auto tab{ weakThis.get() };
+
+            if (tab)
+            {
+                // update this tab's focus state
+                tab->_focusState = WUX::FocusState::Unfocused;
             }
         });
 
@@ -601,10 +680,23 @@ namespace winrt::TerminalApp::implementation
         // Add a PaneRaiseVisualBell event handler to the Pane. When the pane emits this event,
         // we need to bubble it all the way to app host. In this part of the chain we bubble it
         // from the hosting tab to the page.
-        pane->PaneRaiseVisualBell([weakThis](auto&& /*s*/) {
+        pane->PaneRaiseBell([weakThis](auto&& /*s*/, auto&& visual) {
             if (auto tab{ weakThis.get() })
             {
-                tab->_TabRaiseVisualBellHandlers();
+                if (visual)
+                {
+                    tab->_TabRaiseVisualBellHandlers();
+
+                    tab->ShowBellIndicator(true);
+
+                    // If this tab is focused, activate the bell indicator timer, which will
+                    // remove the bell indicator once it fires
+                    // (otherwise, the indicator is removed when the tab gets focus)
+                    if (tab->_focusState != WUX::FocusState::Unfocused)
+                    {
+                        tab->ActivateBellIndicatorTimer();
+                    }
+                }
             }
         });
     }
diff --git a/src/cascadia/TerminalApp/TerminalTab.h b/src/cascadia/TerminalApp/TerminalTab.h
index 1ae7ad2e6dd..e66da3278b1 100644
--- a/src/cascadia/TerminalApp/TerminalTab.h
+++ b/src/cascadia/TerminalApp/TerminalTab.h
@@ -38,6 +38,9 @@ namespace winrt::TerminalApp::implementation
         winrt::fire_and_forget UpdateIcon(const winrt::hstring iconPath);
         winrt::fire_and_forget HideIcon(const bool hide);
 
+        winrt::fire_and_forget ShowBellIndicator(const bool show);
+        winrt::fire_and_forget ActivateBellIndicatorTimer();
+
         float CalcSnappedDimension(const bool widthOrHeight, const float dimension) const;
         winrt::Microsoft::Terminal::Settings::Model::SplitState PreCalculateAutoSplit(winrt::Windows::Foundation::Size rootSize) const;
         bool PreCalculateCanSplit(winrt::Microsoft::Terminal::Settings::Model::SplitState splitType,
@@ -100,6 +103,9 @@ namespace winrt::TerminalApp::implementation
 
         winrt::TerminalApp::ShortcutActionDispatch _dispatch;
 
+        std::optional<Windows::UI::Xaml::DispatcherTimer> _bellIndicatorTimer;
+        void _BellIndicatorTimerTick(Windows::Foundation::IInspectable const& sender, Windows::Foundation::IInspectable const& e);
+
         void _MakeTabViewItem();
 
         void _SetToolTip(const winrt::hstring& tabTitle);