diff --git a/doc/cascadia/profiles.schema.json b/doc/cascadia/profiles.schema.json
index 8cbaa808ddc..00fbcb1509d 100644
--- a/doc/cascadia/profiles.schema.json
+++ b/doc/cascadia/profiles.schema.json
@@ -340,6 +340,7 @@
         "toggleShaderEffects",
         "wt",
         "quit",
+        "restoreLastClosed",
         "unbound"
       ],
       "type": "string"
diff --git a/src/cascadia/TerminalApp/AppActionHandlers.cpp b/src/cascadia/TerminalApp/AppActionHandlers.cpp
index 10b88252833..fa5f7210207 100644
--- a/src/cascadia/TerminalApp/AppActionHandlers.cpp
+++ b/src/cascadia/TerminalApp/AppActionHandlers.cpp
@@ -75,6 +75,22 @@ namespace winrt::TerminalApp::implementation
         args.Handled(true);
     }
 
+    void TerminalPage::_HandleRestoreLastClosed(const IInspectable& /*sender*/,
+                                                const ActionEventArgs& args)
+    {
+        if (_previouslyClosedPanesAndTabs.size() > 0)
+        {
+            const auto restoreActions = _previouslyClosedPanesAndTabs.back();
+            for (const auto& action : restoreActions)
+            {
+                _actionDispatch->DoAction(action);
+            }
+            _previouslyClosedPanesAndTabs.pop_back();
+
+            args.Handled(true);
+        }
+    }
+
     void TerminalPage::_HandleCloseWindow(const IInspectable& /*sender*/,
                                           const ActionEventArgs& args)
     {
diff --git a/src/cascadia/TerminalApp/SettingsTab.cpp b/src/cascadia/TerminalApp/SettingsTab.cpp
index b0319c4d4e4..fc2f76d94b5 100644
--- a/src/cascadia/TerminalApp/SettingsTab.cpp
+++ b/src/cascadia/TerminalApp/SettingsTab.cpp
@@ -38,6 +38,22 @@ namespace winrt::TerminalApp::implementation
         settingsUI.UpdateSettings(settings);
     }
 
+    // Method Description:
+    // - Creates a list of actions that can be run to recreate the state of this tab
+    // Arguments:
+    // - <none>
+    // Return Value:
+    // - The list of actions.
+    std::vector<ActionAndArgs> SettingsTab::BuildStartupActions() const
+    {
+        ActionAndArgs action;
+        action.Action(ShortcutAction::OpenSettings);
+        OpenSettingsArgs args{ SettingsTarget::SettingsUI };
+        action.Args(args);
+
+        return std::vector{ std::move(action) };
+    }
+
     // Method Description:
     // - Focus the settings UI
     // Arguments:
diff --git a/src/cascadia/TerminalApp/SettingsTab.h b/src/cascadia/TerminalApp/SettingsTab.h
index d3755c799d0..803ed8cb03e 100644
--- a/src/cascadia/TerminalApp/SettingsTab.h
+++ b/src/cascadia/TerminalApp/SettingsTab.h
@@ -29,6 +29,8 @@ namespace winrt::TerminalApp::implementation
         void UpdateSettings(Microsoft::Terminal::Settings::Model::CascadiaSettings settings);
         void Focus(winrt::Windows::UI::Xaml::FocusState focusState) override;
 
+        std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> BuildStartupActions() const override;
+
     private:
         void _MakeTabViewItem() override;
         winrt::fire_and_forget _CreateIcon();
diff --git a/src/cascadia/TerminalApp/TabBase.h b/src/cascadia/TerminalApp/TabBase.h
index f98d3c24c90..a04873f8905 100644
--- a/src/cascadia/TerminalApp/TabBase.h
+++ b/src/cascadia/TerminalApp/TabBase.h
@@ -23,6 +23,7 @@ namespace winrt::TerminalApp::implementation
 
         void UpdateTabViewIndex(const uint32_t idx, const uint32_t numTabs);
         void SetActionMap(const Microsoft::Terminal::Settings::Model::IActionMapView& actionMap);
+        virtual std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> BuildStartupActions() const = 0;
 
         WINRT_CALLBACK(RequestFocusActiveControl, winrt::delegate<void()>);
 
diff --git a/src/cascadia/TerminalApp/TabManagement.cpp b/src/cascadia/TerminalApp/TabManagement.cpp
index 5048f8fd8bf..57becf6ab58 100644
--- a/src/cascadia/TerminalApp/TabManagement.cpp
+++ b/src/cascadia/TerminalApp/TabManagement.cpp
@@ -392,6 +392,26 @@ namespace winrt::TerminalApp::implementation
         CATCH_LOG();
     }
 
+    // Method Description:
+    // - Record the configuration information of the last closed thing .
+    // - Will occasionally prune the list so it doesn't grow infinitely.
+    // Arguments:
+    // - args: the list of actions to take to remake the pane/tab
+    void TerminalPage::_AddPreviouslyClosedPaneOrTab(std::vector<ActionAndArgs>&& args)
+    {
+        // Just make sure we don't get infinitely large, but still
+        // maintain a large replay buffer.
+        if (const auto size = _previouslyClosedPanesAndTabs.size(); size > 150)
+        {
+            const auto it = _previouslyClosedPanesAndTabs.begin();
+            // delete 50 at a time so that we don't have to do an erase
+            // of the buffer every time when at capacity.
+            _previouslyClosedPanesAndTabs.erase(it, it + (size - 100));
+        }
+
+        _previouslyClosedPanesAndTabs.emplace_back(args);
+    }
+
     // Method Description:
     // - Removes the tab (both TerminalControl and XAML) after prompting for approval
     // Arguments:
@@ -408,6 +428,11 @@ namespace winrt::TerminalApp::implementation
                 co_return;
             }
         }
+
+        auto t = winrt::get_self<implementation::TabBase>(tab);
+        auto actions = t->BuildStartupActions();
+        _AddPreviouslyClosedPaneOrTab(std::move(actions));
+
         _RemoveTab(tab);
     }
 
@@ -709,6 +734,23 @@ namespace winrt::TerminalApp::implementation
                     });
                 }
 
+                // Build the list of actions to recreate the closed pane,
+                // BuildStartupActions returns the "first" pane and the rest of
+                // its actions are assuming that first pane has been created first.
+                // This doesn't handle refocusing anything in particular, the
+                // result will be that the last pane created is focused. In the
+                // case of a single pane that is the desired behavior anyways.
+                auto state = pane->BuildStartupActions(0, 1);
+                {
+                    ActionAndArgs splitPaneAction{};
+                    splitPaneAction.Action(ShortcutAction::SplitPane);
+                    SplitPaneArgs splitPaneArgs{ SplitDirection::Automatic, state.firstPane->GetTerminalArgsForPane() };
+                    splitPaneAction.Args(splitPaneArgs);
+
+                    state.args.emplace(state.args.begin(), std::move(splitPaneAction));
+                }
+                _AddPreviouslyClosedPaneOrTab(std::move(state.args));
+
                 pane->Close();
             }
         }
diff --git a/src/cascadia/TerminalApp/TerminalPage.cpp b/src/cascadia/TerminalApp/TerminalPage.cpp
index c1d6487bf93..95c7b595cee 100644
--- a/src/cascadia/TerminalApp/TerminalPage.cpp
+++ b/src/cascadia/TerminalApp/TerminalPage.cpp
@@ -1440,20 +1440,9 @@ namespace winrt::TerminalApp::implementation
 
         for (auto tab : _tabs)
         {
-            if (auto terminalTab = _GetTerminalTabImpl(tab))
-            {
-                auto tabActions = terminalTab->BuildStartupActions();
-                actions.insert(actions.end(), std::make_move_iterator(tabActions.begin()), std::make_move_iterator(tabActions.end()));
-            }
-            else if (tab.try_as<SettingsTab>())
-            {
-                ActionAndArgs action;
-                action.Action(ShortcutAction::OpenSettings);
-                OpenSettingsArgs args{ SettingsTarget::SettingsUI };
-                action.Args(args);
-
-                actions.emplace_back(std::move(action));
-            }
+            auto t = winrt::get_self<implementation::TabBase>(tab);
+            auto tabActions = t->BuildStartupActions();
+            actions.insert(actions.end(), std::make_move_iterator(tabActions.begin()), std::make_move_iterator(tabActions.end()));
         }
 
         // if the focused tab was not the last tab, restore that
diff --git a/src/cascadia/TerminalApp/TerminalPage.h b/src/cascadia/TerminalApp/TerminalPage.h
index bf570d7e0eb..58688e74636 100644
--- a/src/cascadia/TerminalApp/TerminalPage.h
+++ b/src/cascadia/TerminalApp/TerminalPage.h
@@ -193,6 +193,8 @@ namespace winrt::TerminalApp::implementation
         std::optional<int> _rearrangeTo{};
         bool _removing{ false };
 
+        std::vector<std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs>> _previouslyClosedPanesAndTabs{};
+
         uint32_t _systemRowsToScroll{ DefaultRowsToScroll };
 
         // use a weak reference to prevent circular dependency with AppLogic
@@ -304,6 +306,7 @@ namespace winrt::TerminalApp::implementation
 
         winrt::fire_and_forget _SetFocusedTab(const winrt::TerminalApp::TabBase tab);
         winrt::fire_and_forget _CloseFocusedPane();
+        void _AddPreviouslyClosedPaneOrTab(std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs>&& args);
 
         winrt::fire_and_forget _RemoveOnCloseRoutine(Microsoft::UI::Xaml::Controls::TabViewItem tabViewItem, winrt::com_ptr<TerminalPage> page);
 
diff --git a/src/cascadia/TerminalApp/TerminalTab.h b/src/cascadia/TerminalApp/TerminalTab.h
index 82f9f23210c..d8eda173093 100644
--- a/src/cascadia/TerminalApp/TerminalTab.h
+++ b/src/cascadia/TerminalApp/TerminalTab.h
@@ -81,7 +81,7 @@ namespace winrt::TerminalApp::implementation
         void EnterZoom();
         void ExitZoom();
 
-        std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> BuildStartupActions() const;
+        std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> BuildStartupActions() const override;
 
         int GetLeafPaneCount() const noexcept;
 
diff --git a/src/cascadia/TerminalSettingsModel/ActionAndArgs.cpp b/src/cascadia/TerminalSettingsModel/ActionAndArgs.cpp
index 28b0a656e5e..623f4f46956 100644
--- a/src/cascadia/TerminalSettingsModel/ActionAndArgs.cpp
+++ b/src/cascadia/TerminalSettingsModel/ActionAndArgs.cpp
@@ -72,6 +72,7 @@ static constexpr std::string_view OpenSystemMenuKey{ "openSystemMenu" };
 static constexpr std::string_view ClearBufferKey{ "clearBuffer" };
 static constexpr std::string_view MultipleActionsKey{ "multipleActions" };
 static constexpr std::string_view QuitKey{ "quit" };
+static constexpr std::string_view RestoreLastClosedKey{ "restoreLastClosed" };
 
 static constexpr std::string_view ActionKey{ "action" };
 
@@ -380,6 +381,7 @@ namespace winrt::Microsoft::Terminal::Settings::Model::implementation
                 { ShortcutAction::ClearBuffer, L"" }, // Intentionally omitted, must be generated by GenerateName
                 { ShortcutAction::MultipleActions, L"" }, // Intentionally omitted, must be generated by GenerateName
                 { ShortcutAction::Quit, RS_(L"QuitCommandKey") },
+                { ShortcutAction::RestoreLastClosed, RS_(L"RestoreLastClosedCommandKey") },
             };
         }();
 
diff --git a/src/cascadia/TerminalSettingsModel/AllShortcutActions.h b/src/cascadia/TerminalSettingsModel/AllShortcutActions.h
index bab2ab0fd74..d8d26d3b81e 100644
--- a/src/cascadia/TerminalSettingsModel/AllShortcutActions.h
+++ b/src/cascadia/TerminalSettingsModel/AllShortcutActions.h
@@ -85,7 +85,8 @@
     ON_ALL_ACTIONS(OpenSystemMenu)         \
     ON_ALL_ACTIONS(ClearBuffer)            \
     ON_ALL_ACTIONS(MultipleActions)        \
-    ON_ALL_ACTIONS(Quit)
+    ON_ALL_ACTIONS(Quit)                   \
+    ON_ALL_ACTIONS(RestoreLastClosed)
 
 #define ALL_SHORTCUT_ACTIONS_WITH_ARGS             \
     ON_ALL_ACTIONS_WITH_ARGS(AdjustFontSize)       \
diff --git a/src/cascadia/TerminalSettingsModel/Resources/en-US/Resources.resw b/src/cascadia/TerminalSettingsModel/Resources/en-US/Resources.resw
index 5ae1853a7e3..0d4a7a39d42 100644
--- a/src/cascadia/TerminalSettingsModel/Resources/en-US/Resources.resw
+++ b/src/cascadia/TerminalSettingsModel/Resources/en-US/Resources.resw
@@ -496,4 +496,7 @@
   <data name="QuitCommandKey" xml:space="preserve">
     <value>Quit the Terminal</value>
   </data>
+  <data name="RestoreLastClosedCommandKey" xml:space="preserve">
+    <value>Restore the last closed pane or tab</value>
+  </data>
 </root>
diff --git a/src/cascadia/TerminalSettingsModel/defaults.json b/src/cascadia/TerminalSettingsModel/defaults.json
index 8123a2aac47..b779204db81 100644
--- a/src/cascadia/TerminalSettingsModel/defaults.json
+++ b/src/cascadia/TerminalSettingsModel/defaults.json
@@ -305,6 +305,7 @@
         { "command": "quakeMode", "keys":"win+sc(41)" },
         { "command": "openSystemMenu", "keys": "alt+space" },
         { "command": "quit" },
+        { "command": "restoreLastClosed"},
 
         // Tab Management
         // "command": "closeTab" is unbound by default.