diff --git a/crates/story/src/modal_story.rs b/crates/story/src/modal_story.rs
index 1a4f9ace..8b5a8b82 100644
--- a/crates/story/src/modal_story.rs
+++ b/crates/story/src/modal_story.rs
@@ -420,6 +420,11 @@ impl ModalStory {
                                             .title("Other Modal")
                                             .child("This is another modal.")
                                             .min_h(px(300.))
+                                            .overlay(overlay)
+                                            .keyboard(keyboard)
+                                            .show_close(modal_show_close)
+                                            .overlay_closable(overlay_closable)
+                                            .when(!modal_padding, |this| this.p(px(0.)))
                                     });
                                 },
                             ),
diff --git a/crates/ui/src/modal.rs b/crates/ui/src/modal.rs
index c0ac9d7d..a2c41738 100644
--- a/crates/ui/src/modal.rs
+++ b/crates/ui/src/modal.rs
@@ -12,7 +12,7 @@ use crate::{
     actions::{Cancel, Confirm},
     animation::cubic_bezier,
     button::{Button, ButtonVariant, ButtonVariants as _},
-    h_flex, v_flex, ActiveTheme as _, ContextModal, IconName, Sizable as _, StyledExt,
+    h_flex, v_flex, ActiveTheme as _, ContextModal, IconName, Root, Sizable as _, StyledExt,
 };
 
 const CONTEXT: &str = "Modal";
@@ -362,6 +362,11 @@ impl RenderOnce for Modal {
                         this.occlude().bg(overlay_color(self.overlay, window, cx))
                     })
                     .when(self.overlay_closable, |this| {
+                        // Only the last modal owns the `mouse down - close modal` event.
+                        if (self.layer_ix + 1) != Root::read(window, cx).active_modals.len() {
+                            return this;
+                        }
+
                         this.on_mouse_down(MouseButton::Left, {
                             let on_cancel = on_cancel.clone();
                             let on_close = on_close.clone();
diff --git a/crates/ui/src/root.rs b/crates/ui/src/root.rs
index 17d80421..6a7cceaa 100644
--- a/crates/ui/src/root.rs
+++ b/crates/ui/src/root.rs
@@ -34,6 +34,7 @@ pub trait ContextModal: Sized {
     fn open_modal<F>(&mut self, cx: &mut App, build: F)
     where
         F: Fn(Modal, &mut Window, &mut App) -> Modal + 'static;
+
     /// Return true, if there is an active Modal.
     fn has_active_modal(&mut self, cx: &mut App) -> bool;
 
@@ -241,7 +242,7 @@ pub struct Root {
     /// When the Modal, Drawer closes, we will focus back to the previous view.
     previous_focus_handle: Option<FocusHandle>,
     active_drawer: Option<ActiveDrawer>,
-    active_modals: Vec<ActiveModal>,
+    pub(crate) active_modals: Vec<ActiveModal>,
     pub(super) focused_input: Option<Entity<TextInput>>,
     pub notification: Entity<NotificationList>,
     drawer_size: Option<DefiniteLength>,
@@ -256,7 +257,7 @@ struct ActiveDrawer {
 }
 
 #[derive(Clone)]
-struct ActiveModal {
+pub(crate) struct ActiveModal {
     focus_handle: FocusHandle,
     builder: Rc<dyn Fn(Modal, &mut Window, &mut App) -> Modal + 'static>,
 }