diff --git a/rpcs3/Emu/Cell/Modules/cellOskDialog.cpp b/rpcs3/Emu/Cell/Modules/cellOskDialog.cpp
index b7f32f4361..e607b609ac 100644
--- a/rpcs3/Emu/Cell/Modules/cellOskDialog.cpp
+++ b/rpcs3/Emu/Cell/Modules/cellOskDialog.cpp
@@ -533,7 +533,7 @@ error_code cellOskDialogLoadAsync(u32 container, vm::ptr<CellOskDialogParam> dia
 
 	Emu.CallFromMainThread([=, &result, &info]()
 	{
-		osk->Create(get_localized_string(localized_string_id::CELL_OSK_DIALOG_TITLE), message, osk->osk_text, maxLength, prohibitFlgs, allowOskPanelFlg, firstViewPanel, info.base_color.load(), info.dimmer_enabled.load());
+		osk->Create(get_localized_string(localized_string_id::CELL_OSK_DIALOG_TITLE), message, osk->osk_text, maxLength, prohibitFlgs, allowOskPanelFlg, firstViewPanel, info.base_color.load(), info.dimmer_enabled.load(), false);
 		result = true;
 		result.notify_one();
 
diff --git a/rpcs3/Emu/Cell/Modules/cellOskDialog.h b/rpcs3/Emu/Cell/Modules/cellOskDialog.h
index f49d14785e..f14b5191c3 100644
--- a/rpcs3/Emu/Cell/Modules/cellOskDialog.h
+++ b/rpcs3/Emu/Cell/Modules/cellOskDialog.h
@@ -261,7 +261,7 @@ public:
 		f32 a = 1.0f;
 	};
 
-	virtual void Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled) = 0;
+	virtual void Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled, bool intercept_input) = 0;
 
 	// Closes the dialog.
 	// Set status to CELL_OSKDIALOG_CLOSE_CONFIRM or CELL_OSKDIALOG_CLOSE_CANCEL for user input.
diff --git a/rpcs3/Emu/RSX/Overlays/overlay_osk.cpp b/rpcs3/Emu/RSX/Overlays/overlay_osk.cpp
index f457c795d2..9bac6737d2 100644
--- a/rpcs3/Emu/RSX/Overlays/overlay_osk.cpp
+++ b/rpcs3/Emu/RSX/Overlays/overlay_osk.cpp
@@ -953,7 +953,7 @@ namespace rsx
 			static constexpr auto thread_name = "OSK Thread"sv;
 		};
 
-		void osk_dialog::Create(const std::string& /*title*/, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled)
+		void osk_dialog::Create(const std::string& /*title*/, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled, bool intercept_input)
 		{
 			state = OskDialogState::Open;
 			flags = prohibit_flags;
@@ -963,6 +963,7 @@ namespace rsx
 			m_frame.back_color.b = base_color.b;
 			m_frame.back_color.a = base_color.a;
 			m_background.back_color.a = dimmer_enabled ? 0.8f : 0.0f;
+			m_start_pad_interception = intercept_input;
 
 			const callback_t shift_cb  = [this](const std::u32string& text){ on_shift(text); };
 			const callback_t layer_cb  = [this](const std::u32string& text){ on_layer(text); };
diff --git a/rpcs3/Emu/RSX/Overlays/overlay_osk.h b/rpcs3/Emu/RSX/Overlays/overlay_osk.h
index a2425112a8..a29b4f503e 100644
--- a/rpcs3/Emu/RSX/Overlays/overlay_osk.h
+++ b/rpcs3/Emu/RSX/Overlays/overlay_osk.h
@@ -82,7 +82,7 @@ namespace rsx
 			osk_dialog();
 			~osk_dialog() override = default;
 
-			void Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled) override;
+			void Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled, bool intercept_input) override;
 			void Close(s32 status) override;
 
 			void initialize_layout(const std::u32string& title, const std::u32string& initial_text);
diff --git a/rpcs3/Emu/RSX/Overlays/overlays.cpp b/rpcs3/Emu/RSX/Overlays/overlays.cpp
index 287bd4f97e..b39e4f8099 100644
--- a/rpcs3/Emu/RSX/Overlays/overlays.cpp
+++ b/rpcs3/Emu/RSX/Overlays/overlays.cpp
@@ -67,7 +67,11 @@ namespace rsx
 
 			m_input_timer.Start();
 
-			input::SetIntercepted(true);
+			// Only start intercepting input if the the overlay allows it (enabled by default)
+			if (m_start_pad_interception)
+			{
+				input::SetIntercepted(true);
+			}
 
 			const auto handle_button_press = [&](u8 button_id, bool pressed, int pad_index)
 			{
diff --git a/rpcs3/Emu/RSX/Overlays/overlays.h b/rpcs3/Emu/RSX/Overlays/overlays.h
index 83a10bf4a6..fd08e59291 100644
--- a/rpcs3/Emu/RSX/Overlays/overlays.h
+++ b/rpcs3/Emu/RSX/Overlays/overlays.h
@@ -94,6 +94,7 @@ namespace rsx
 			};
 			atomic_t<bool> exit = false;
 			atomic_t<bool> m_interactive = false;
+			bool m_start_pad_interception = true;
 			atomic_t<bool> m_stop_pad_interception = false;
 			atomic_t<u64> thread_bits = 0;
 			bool m_keyboard_input_enabled = false; // Allow keyboard events
diff --git a/rpcs3/rpcs3qt/osk_dialog_frame.cpp b/rpcs3/rpcs3qt/osk_dialog_frame.cpp
index 2709c7ab39..5bfaa80299 100644
--- a/rpcs3/rpcs3qt/osk_dialog_frame.cpp
+++ b/rpcs3/rpcs3qt/osk_dialog_frame.cpp
@@ -22,7 +22,7 @@ osk_dialog_frame::~osk_dialog_frame()
 	}
 }
 
-void osk_dialog_frame::Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 /*first_view_panel*/, color /*base_color*/, bool /*dimmer_enabled*/)
+void osk_dialog_frame::Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 /*first_view_panel*/, color /*base_color*/, bool /*dimmer_enabled*/, bool /*intercept_input*/)
 {
 	state = OskDialogState::Open;
 
diff --git a/rpcs3/rpcs3qt/osk_dialog_frame.h b/rpcs3/rpcs3qt/osk_dialog_frame.h
index 2c5c9c4ec2..83f86a77c7 100644
--- a/rpcs3/rpcs3qt/osk_dialog_frame.h
+++ b/rpcs3/rpcs3qt/osk_dialog_frame.h
@@ -16,7 +16,7 @@ class osk_dialog_frame : public QObject, public OskDialogBase
 public:
 	osk_dialog_frame() = default;
 	~osk_dialog_frame();
-	void Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled) override;
+	void Create(const std::string& title, const std::u16string& message, char16_t* init_text, u32 charlimit, u32 prohibit_flags, u32 panel_flag, u32 first_view_panel, color base_color, bool dimmer_enabled, bool intercept_input) override;
 	void Close(s32 status) override;
 
 private: