diff --git a/src/cascadia/TerminalSettingsEditor/Actions.cpp b/src/cascadia/TerminalSettingsEditor/Actions.cpp
index 62ec0700b278..9a445d4459e7 100644
--- a/src/cascadia/TerminalSettingsEditor/Actions.cpp
+++ b/src/cascadia/TerminalSettingsEditor/Actions.cpp
@@ -21,6 +21,9 @@ using namespace winrt::Microsoft::Terminal::Settings::Model;
 
 namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
 {
+    KeyBindingViewModel::KeyBindingViewModel(const Windows::Foundation::Collections::IObservableVector<hstring>& availableActions) :
+        KeyBindingViewModel(nullptr, availableActions.First().Current(), availableActions) {}
+
     KeyBindingViewModel::KeyBindingViewModel(const Control::KeyChord& keys, const hstring& actionName, const IObservableVector<hstring>& availableActions) :
         _Keys{ keys },
         _KeyChordText{ Model::KeyChordSerialization::ToString(keys) },
@@ -84,7 +87,10 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
 
     void KeyBindingViewModel::AttemptAcceptChanges(hstring newKeyChordText)
     {
-        auto args{ make_self<ModifyKeyBindingEventArgs>(_Keys, _Keys, _CurrentAction, unbox_value<hstring>(_ProposedAction)) };
+        // NewlyAdded: introduce a new key binding
+        // Otherwise:  include the old and new key binding data
+        auto args = _IsNewlyAdded ? make_self<ModifyKeyBindingEventArgs>(_Keys, unbox_value<hstring>(_ProposedAction)) :
+                                    make_self<ModifyKeyBindingEventArgs>(_Keys, _Keys, _CurrentAction, unbox_value<hstring>(_ProposedAction));
 
         // Key Chord Text
         try
@@ -108,9 +114,23 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         _ModifyKeyBindingRequestedHandlers(*this, *args);
     }
 
+    void KeyBindingViewModel::CancelChanges()
+    {
+        if (_IsNewlyAdded)
+        {
+            _DeleteNewlyAddedKeyBindingHandlers(*this, nullptr);
+        }
+        else
+        {
+            ToggleEditMode();
+        }
+    }
+
     Actions::Actions()
     {
         InitializeComponent();
+
+        Automation::AutomationProperties::SetName(AddNewButton(), RS_(L"Actions_AddNewTextBlock/Text"));
     }
 
     Automation::Peers::AutomationPeer Actions::OnCreateAutomationPeer()
@@ -149,10 +169,7 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         {
             // convert the cmd into a KeyBindingViewModel
             auto container{ make_self<KeyBindingViewModel>(keys, cmd.Name(), _AvailableActionAndArgs) };
-            container->PropertyChanged({ this, &Actions::_ViewModelPropertyChangedHandler });
-            container->DeleteKeyBindingRequested({ this, &Actions::_ViewModelDeleteKeyBindingHandler });
-            container->ModifyKeyBindingRequested({ this, &Actions::_ViewModelModifyKeyBindingHandler });
-            container->IsAutomationPeerAttached(_AutomationPeerAttached);
+            _RegisterEvents(container);
             keyBindingList.push_back(*container);
         }
 
@@ -183,11 +200,29 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         }
         else if (e.OriginalKey() == VirtualKey::Escape)
         {
-            kbdVM.ToggleEditMode();
+            kbdVM.CancelChanges();
             e.Handled(true);
         }
     }
 
+    void Actions::AddNew_Click(const IInspectable& /*sender*/, const RoutedEventArgs& /*eventArgs*/)
+    {
+        // Create the new key binding and register all of the event handlers.
+        auto kbdVM{ make_self<KeyBindingViewModel>(_AvailableActionAndArgs) };
+        _RegisterEvents(kbdVM);
+        kbdVM->DeleteNewlyAddedKeyBinding({ this, &Actions::_ViewModelDeleteNewlyAddedKeyBindingHandler });
+
+        // Manually add the editing background. This needs to be done in Actions not the view model.
+        // We also have to do this manually because it hasn't been added to the list yet.
+        kbdVM->IsInEditMode(true);
+        const auto& containerBackground{ Resources().Lookup(box_value(L"ActionContainerBackgroundEditing")).as<Windows::UI::Xaml::Media::Brush>() };
+        kbdVM->ContainerBackground(containerBackground);
+
+        // IMPORTANT: do this _before_ adding the VM to the list. Otherwise, it'll get deleted immediately.
+        kbdVM->IsNewlyAdded(true);
+        _KeyBindingList.InsertAt(0, *kbdVM);
+    }
+
     void Actions::_ViewModelPropertyChangedHandler(const IInspectable& sender, const Windows::UI::Xaml::Data::PropertyChangedEventArgs& args)
     {
         const auto senderVM{ sender.as<Editor::KeyBindingViewModel>() };
@@ -198,8 +233,9 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
             {
                 // Ensure that...
                 // 1. we move focus to the edit mode controls
-                // 2. this is the only entry that is in edit mode
-                for (uint32_t i = 0; i < _KeyBindingList.Size(); ++i)
+                // 2. any actions that were newly added are removed
+                // 3. this is the only entry that is in edit mode
+                for (int32_t i = _KeyBindingList.Size() - 1; i >= 0; --i)
                 {
                     const auto& kbdVM{ _KeyBindingList.GetAt(i) };
                     if (senderVM == kbdVM)
@@ -210,6 +246,11 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
                         const auto& container{ KeyBindingsListView().ContainerFromIndex(i).try_as<ListViewItem>() };
                         container.Focus(FocusState::Programmatic);
                     }
+                    else if (kbdVM.IsNewlyAdded())
+                    {
+                        // Remove any actions that were newly added
+                        _KeyBindingList.RemoveAt(i);
+                    }
                     else
                     {
                         // Exit edit mode for all other containers
@@ -254,13 +295,18 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
 
     void Actions::_ViewModelModifyKeyBindingHandler(const Editor::KeyBindingViewModel& senderVM, const Editor::ModifyKeyBindingEventArgs& args)
     {
+        const auto isNewAction{ !args.OldKeys() && args.OldActionName().empty() };
+
         auto applyChangesToSettingsModel = [=]() {
             // If the key chord was changed,
             // update the settings model and view model appropriately
-            if (args.OldKeys().Modifiers() != args.NewKeys().Modifiers() || args.OldKeys().Vkey() != args.NewKeys().Vkey())
+            if (!args.OldKeys() || args.OldKeys().Modifiers() != args.NewKeys().Modifiers() || args.OldKeys().Vkey() != args.NewKeys().Vkey())
             {
-                // update settings model
-                _State.Settings().ActionMap().RebindKeys(args.OldKeys(), args.NewKeys());
+                if (!isNewAction)
+                {
+                    // update settings model
+                    _State.Settings().ActionMap().RebindKeys(args.OldKeys(), args.NewKeys());
+                }
 
                 // update view model
                 auto senderVMImpl{ get_self<KeyBindingViewModel>(senderVM) };
@@ -269,6 +315,7 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
 
             // If the action was changed,
             // update the settings model and view model appropriately
+            // NOTE: no need to check for "isNewAction" here. <empty_string> != <action name> already.
             if (args.OldActionName() != args.NewActionName())
             {
                 // convert the action's name into a view model.
@@ -280,13 +327,14 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
                 // update view model
                 auto senderVMImpl{ get_self<KeyBindingViewModel>(senderVM) };
                 senderVMImpl->CurrentAction(args.NewActionName());
+                senderVMImpl->IsNewlyAdded(false);
             }
         };
 
         // Check for this special case:
         //  we're changing the key chord,
         //  but the new key chord is already in use
-        if (args.OldKeys().Modifiers() != args.NewKeys().Modifiers() || args.OldKeys().Vkey() != args.NewKeys().Vkey())
+        if (isNewAction || args.OldKeys().Modifiers() != args.NewKeys().Modifiers() || args.OldKeys().Vkey() != args.NewKeys().Vkey())
         {
             const auto& conflictingCmd{ _State.Settings().ActionMap().GetActionByKeyChord(args.NewKeys()) };
             if (conflictingCmd)
@@ -342,6 +390,19 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         senderVM.ToggleEditMode();
     }
 
+    void Actions::_ViewModelDeleteNewlyAddedKeyBindingHandler(const Editor::KeyBindingViewModel& senderVM, const IInspectable& /*args*/)
+    {
+        for (uint32_t i = 0; i < _KeyBindingList.Size(); ++i)
+        {
+            const auto& kbdVM{ _KeyBindingList.GetAt(i) };
+            if (kbdVM == senderVM)
+            {
+                _KeyBindingList.RemoveAt(i);
+                return;
+            }
+        }
+    }
+
     // Method Description:
     // - performs a search on KeyBindingList by key chord.
     // Arguments:
@@ -365,4 +426,12 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         //  to quickly search through the sorted list.
         return std::nullopt;
     }
+
+    void Actions::_RegisterEvents(com_ptr<KeyBindingViewModel> kbdVM)
+    {
+        kbdVM->PropertyChanged({ this, &Actions::_ViewModelPropertyChangedHandler });
+        kbdVM->DeleteKeyBindingRequested({ this, &Actions::_ViewModelDeleteKeyBindingHandler });
+        kbdVM->ModifyKeyBindingRequested({ this, &Actions::_ViewModelModifyKeyBindingHandler });
+        kbdVM->IsAutomationPeerAttached(_AutomationPeerAttached);
+    }
 }
diff --git a/src/cascadia/TerminalSettingsEditor/Actions.h b/src/cascadia/TerminalSettingsEditor/Actions.h
index e98cc915e6cb..7851b2a6b73a 100644
--- a/src/cascadia/TerminalSettingsEditor/Actions.h
+++ b/src/cascadia/TerminalSettingsEditor/Actions.h
@@ -23,6 +23,12 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
     struct ModifyKeyBindingEventArgs : ModifyKeyBindingEventArgsT<ModifyKeyBindingEventArgs>
     {
     public:
+        // used for new key bindings
+        ModifyKeyBindingEventArgs(const Control::KeyChord& keys, const hstring actionName) :
+            _NewKeys{ keys },
+            _NewActionName{ std::move(actionName) } {}
+
+        // used for modifying existing key bindings
         ModifyKeyBindingEventArgs(const Control::KeyChord& oldKeys, const Control::KeyChord& newKeys, const hstring oldActionName, const hstring newActionName) :
             _OldKeys{ oldKeys },
             _NewKeys{ newKeys },
@@ -38,6 +44,7 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
     struct KeyBindingViewModel : KeyBindingViewModelT<KeyBindingViewModel>, ViewModelHelper<KeyBindingViewModel>
     {
     public:
+        KeyBindingViewModel(const Windows::Foundation::Collections::IObservableVector<hstring>& availableActions);
         KeyBindingViewModel(const Control::KeyChord& keys, const hstring& name, const Windows::Foundation::Collections::IObservableVector<hstring>& availableActions);
 
         hstring Name() const { return _CurrentAction; }
@@ -60,6 +67,7 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         void DisableEditMode() { IsInEditMode(false); }
         void AttemptAcceptChanges();
         void AttemptAcceptChanges(hstring newKeyChordText);
+        void CancelChanges();
         void DeleteKeyBinding() { _DeleteKeyBindingRequestedHandlers(*this, _Keys); }
 
         // ProposedAction:   the entry selected by the combo box; may disagree with the settings model.
@@ -81,6 +89,7 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         VIEW_MODEL_OBSERVABLE_PROPERTY(Control::KeyChord, Keys, nullptr);
 
         VIEW_MODEL_OBSERVABLE_PROPERTY(bool, IsInEditMode, false);
+        VIEW_MODEL_OBSERVABLE_PROPERTY(bool, IsNewlyAdded, false);
         VIEW_MODEL_OBSERVABLE_PROPERTY(Windows::UI::Xaml::Controls::Flyout, AcceptChangesFlyout, nullptr);
         VIEW_MODEL_OBSERVABLE_PROPERTY(bool, IsAutomationPeerAttached, false);
         VIEW_MODEL_OBSERVABLE_PROPERTY(bool, IsHovered, false);
@@ -89,6 +98,7 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         VIEW_MODEL_OBSERVABLE_PROPERTY(Windows::UI::Xaml::Media::Brush, ContainerBackground, nullptr);
         TYPED_EVENT(ModifyKeyBindingRequested, Editor::KeyBindingViewModel, Editor::ModifyKeyBindingEventArgs);
         TYPED_EVENT(DeleteKeyBindingRequested, Editor::KeyBindingViewModel, Terminal::Control::KeyChord);
+        TYPED_EVENT(DeleteNewlyAddedKeyBinding, Editor::KeyBindingViewModel, IInspectable);
 
     private:
         hstring _KeyChordText{};
@@ -111,6 +121,7 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         void OnNavigatedTo(const winrt::Windows::UI::Xaml::Navigation::NavigationEventArgs& e);
         Windows::UI::Xaml::Automation::Peers::AutomationPeer OnCreateAutomationPeer();
         void KeyChordEditor_KeyDown(Windows::Foundation::IInspectable const& sender, Windows::UI::Xaml::Input::KeyRoutedEventArgs const& e);
+        void AddNew_Click(const IInspectable& sender, const Windows::UI::Xaml::RoutedEventArgs& eventArgs);
 
         WINRT_CALLBACK(PropertyChanged, Windows::UI::Xaml::Data::PropertyChangedEventHandler);
         WINRT_PROPERTY(Editor::ActionsPageNavigationState, State, nullptr);
@@ -120,8 +131,10 @@ namespace winrt::Microsoft::Terminal::Settings::Editor::implementation
         void _ViewModelPropertyChangedHandler(const Windows::Foundation::IInspectable& senderVM, const Windows::UI::Xaml::Data::PropertyChangedEventArgs& args);
         void _ViewModelDeleteKeyBindingHandler(const Editor::KeyBindingViewModel& senderVM, const Control::KeyChord& args);
         void _ViewModelModifyKeyBindingHandler(const Editor::KeyBindingViewModel& senderVM, const Editor::ModifyKeyBindingEventArgs& args);
+        void _ViewModelDeleteNewlyAddedKeyBindingHandler(const Editor::KeyBindingViewModel& senderVM, const IInspectable& args);
 
         std::optional<uint32_t> _GetContainerIndexByKeyChord(const Control::KeyChord& keys);
+        void _RegisterEvents(com_ptr<implementation::KeyBindingViewModel> kbdVM);
 
         bool _AutomationPeerAttached{ false };
         Windows::Foundation::Collections::IObservableVector<hstring> _AvailableActionAndArgs;
diff --git a/src/cascadia/TerminalSettingsEditor/Actions.idl b/src/cascadia/TerminalSettingsEditor/Actions.idl
index 26e52ce0d217..98d8ee3e6f66 100644
--- a/src/cascadia/TerminalSettingsEditor/Actions.idl
+++ b/src/cascadia/TerminalSettingsEditor/Actions.idl
@@ -22,6 +22,7 @@ namespace Microsoft.Terminal.Settings.Editor
         // UI side
         Boolean ShowEditButton { get; };
         Boolean IsInEditMode { get; };
+        Boolean IsNewlyAdded { get; };
         String ProposedKeys;
         Object ProposedAction;
         Windows.UI.Xaml.Controls.Flyout AcceptChangesFlyout;
@@ -40,6 +41,7 @@ namespace Microsoft.Terminal.Settings.Editor
         IObservableVector<String> AvailableActions { get; };
         void ToggleEditMode();
         void AttemptAcceptChanges();
+        void CancelChanges();
         void DeleteKeyBinding();
 
         event Windows.Foundation.TypedEventHandler<KeyBindingViewModel, ModifyKeyBindingEventArgs> ModifyKeyBindingRequested;
diff --git a/src/cascadia/TerminalSettingsEditor/Actions.xaml b/src/cascadia/TerminalSettingsEditor/Actions.xaml
index 549c54f27810..d1d75c8a0bc4 100644
--- a/src/cascadia/TerminalSettingsEditor/Actions.xaml
+++ b/src/cascadia/TerminalSettingsEditor/Actions.xaml
@@ -286,7 +286,7 @@
                             <!--  Cancel editing the action  -->
                             <Button x:Uid="Actions_CancelButton"
                                     AutomationProperties.Name="{x:Bind CancelButtonName}"
-                                    Click="{x:Bind ToggleEditMode}"
+                                    Click="{x:Bind CancelChanges}"
                                     Style="{StaticResource EditButtonStyle}">
                                 <FontIcon FontSize="{StaticResource EditButtonIconSize}"
                                           Glyph="&#xE711;" />
@@ -307,7 +307,8 @@
                             <Button x:Uid="Actions_DeleteButton"
                                     Margin="8,0,0,0"
                                     AutomationProperties.Name="{x:Bind DeleteButtonName}"
-                                    Style="{StaticResource EditButtonStyle}">
+                                    Style="{StaticResource EditButtonStyle}"
+                                    Visibility="{x:Bind IsNewlyAdded, Mode=OneWay, Converter={StaticResource InvertedBooleanToVisibilityConverter}}">
                                 <Button.Content>
                                     <FontIcon FontSize="{StaticResource EditButtonIconSize}"
                                               Glyph="&#xE74D;" />
@@ -381,7 +382,21 @@
 
     <ScrollViewer>
         <StackPanel MaxWidth="600"
+                    Spacing="8"
                     Style="{StaticResource SettingsStackStyle}">
+            <!--  Add New Button  -->
+            <Button x:Name="AddNewButton"
+                    Click="AddNew_Click">
+                <Button.Content>
+                    <StackPanel Orientation="Horizontal">
+                        <FontIcon FontSize="{StaticResource StandardIconSize}"
+                                  Glyph="&#xE710;" />
+                        <TextBlock x:Uid="Actions_AddNewTextBlock"
+                                   Style="{StaticResource IconButtonTextBlockStyle}" />
+                    </StackPanel>
+                </Button.Content>
+            </Button>
+
             <!--  Keybindings  -->
             <ListView x:Name="KeyBindingsListView"
                       ItemTemplate="{StaticResource KeyBindingTemplate}"
diff --git a/src/cascadia/TerminalSettingsEditor/Resources/en-US/Resources.resw b/src/cascadia/TerminalSettingsEditor/Resources/en-US/Resources.resw
index 86bfd3e55332..59254b8c056a 100644
--- a/src/cascadia/TerminalSettingsEditor/Resources/en-US/Resources.resw
+++ b/src/cascadia/TerminalSettingsEditor/Resources/en-US/Resources.resw
@@ -1154,4 +1154,8 @@
     <value>Edit</value>
     <comment>Text label for a button that can be used to begin making changes to a key binding entry.</comment>
   </data>
+  <data name="Actions_AddNewTextBlock.Text" xml:space="preserve">
+    <value>Add new</value>
+    <comment>Button label that creates a new action on the actions page.</comment>
+  </data>
 </root>
\ No newline at end of file