diff --git a/src/cascadia/TerminalApp/AppLogic.cpp b/src/cascadia/TerminalApp/AppLogic.cpp
index bd9288450bc..e31cdcb723c 100644
--- a/src/cascadia/TerminalApp/AppLogic.cpp
+++ b/src/cascadia/TerminalApp/AppLogic.cpp
@@ -704,6 +704,41 @@ namespace winrt::TerminalApp::implementation
         }
     }
 
+    // Method Description:
+    // - Implements the F7 handler (per GH#638)
+    // Return value:
+    // - whether F7 was handled
+    bool AppLogic::OnF7Pressed()
+    {
+        if (_root)
+        {
+            // Manually bubble the OnF7Pressed event up through the focus tree.
+            auto xamlRoot{ _root->XamlRoot() };
+            auto focusedObject{ Windows::UI::Xaml::Input::FocusManager::GetFocusedElement(xamlRoot) };
+            do
+            {
+                if (auto f7Listener{ focusedObject.try_as<IF7Listener>() })
+                {
+                    if (f7Listener.OnF7Pressed())
+                    {
+                        return true;
+                    }
+                    // otherwise, keep walking. bubble the event manually.
+                }
+
+                if (auto focusedElement{ focusedObject.try_as<Windows::UI::Xaml::FrameworkElement>() })
+                {
+                    focusedObject = focusedElement.Parent();
+                }
+                else
+                {
+                    break; // we hit a non-FE object, stop bubbling.
+                }
+            } while (focusedObject);
+        }
+        return false;
+    }
+
     // Method Description:
     // - Used to tell the app that the 'X' button has been clicked and
     //   the user wants to close the app. We kick off the close warning
diff --git a/src/cascadia/TerminalApp/AppLogic.h b/src/cascadia/TerminalApp/AppLogic.h
index b97b1bb160c..4b92afd370a 100644
--- a/src/cascadia/TerminalApp/AppLogic.h
+++ b/src/cascadia/TerminalApp/AppLogic.h
@@ -38,6 +38,7 @@ namespace winrt::TerminalApp::implementation
 
         hstring Title();
         void TitlebarClicked();
+        bool OnF7Pressed();
 
         void WindowCloseButtonClicked();
 
diff --git a/src/cascadia/TerminalApp/AppLogic.idl b/src/cascadia/TerminalApp/AppLogic.idl
index 39bfb38e5a2..8acce21c50c 100644
--- a/src/cascadia/TerminalApp/AppLogic.idl
+++ b/src/cascadia/TerminalApp/AppLogic.idl
@@ -3,6 +3,7 @@
 
 import "../TerminalPage.idl";
 import "../ShortcutActionDispatch.idl";
+import "../IF7Listener.idl";
 
 namespace TerminalApp
 {
@@ -12,7 +13,7 @@ namespace TerminalApp
         MaximizedMode,
     };
 
-    [default_interface] runtimeclass AppLogic {
+    [default_interface] runtimeclass AppLogic: IF7Listener {
         AppLogic();
 
         // For your own sanity, it's better to do setup outside the ctor.
diff --git a/src/cascadia/TerminalApp/IF7Listener.idl b/src/cascadia/TerminalApp/IF7Listener.idl
new file mode 100644
index 00000000000..8529320be21
--- /dev/null
+++ b/src/cascadia/TerminalApp/IF7Listener.idl
@@ -0,0 +1,16 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT license.
+
+namespace TerminalApp
+{
+    // C++/winrt makes it difficult to share this idl between two projects,
+    // Instead, we just pin the uuid and include it in both TermControl and App
+    // If you update this one, please update the one in TerminalControl\TermControl.idl
+    // If you change this interface, please update the guid.
+    // If you press F7 and get a runtime error, go make sure both copies are the same.
+    [uuid("339e1a87-5315-4da6-96f0-565549b6472b")]
+    interface IF7Listener
+    {
+        Boolean OnF7Pressed();
+    }
+}
diff --git a/src/cascadia/TerminalApp/lib/TerminalAppLib.vcxproj b/src/cascadia/TerminalApp/lib/TerminalAppLib.vcxproj
index 0f29447982b..11b64756677 100644
--- a/src/cascadia/TerminalApp/lib/TerminalAppLib.vcxproj
+++ b/src/cascadia/TerminalApp/lib/TerminalAppLib.vcxproj
@@ -186,6 +186,7 @@
   <ItemGroup>
     <!-- If you add idl files here, make sure to include their implementation's
     header in TerminalApp.vcxproj (as well as in this file) -->
+    <Midl Include="../IF7Listener.idl" />
     <Midl Include="../App.idl">
       <DependentUpon>../App.xaml</DependentUpon>
     </Midl>
diff --git a/src/cascadia/TerminalControl/TermControl.cpp b/src/cascadia/TerminalControl/TermControl.cpp
index df35e490fe0..68389fbd93d 100644
--- a/src/cascadia/TerminalControl/TermControl.cpp
+++ b/src/cascadia/TerminalControl/TermControl.cpp
@@ -654,6 +654,38 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
         e.Handled(handled);
     }
 
+    // Method Description:
+    // - Manually generate an F7 event into the key bindings or terminal.
+    //   This is required as part of GH#638.
+    // Return value:
+    // - Whether F7 was handled.
+    bool TermControl::OnF7Pressed()
+    {
+        bool handled{ false };
+        auto bindings{ _settings.KeyBindings() };
+
+        const auto modifiers{ _GetPressedModifierKeys() };
+
+        if (bindings)
+        {
+            handled = bindings.TryKeyChord({
+                modifiers.IsCtrlPressed(),
+                modifiers.IsAltPressed(),
+                modifiers.IsShiftPressed(),
+                VK_F7,
+            });
+        }
+
+        if (!handled)
+        {
+            // _TrySendKeyEvent pretends it didn't handle F7 for some unknown reason.
+            (void)_TrySendKeyEvent(VK_F7, 0, modifiers);
+            handled = true;
+        }
+
+        return handled;
+    }
+
     void TermControl::_KeyDownHandler(winrt::Windows::Foundation::IInspectable const& /*sender*/,
                                       Input::KeyRoutedEventArgs const& e)
     {
diff --git a/src/cascadia/TerminalControl/TermControl.h b/src/cascadia/TerminalControl/TermControl.h
index 0fcc63cde4d..11161e9d52f 100644
--- a/src/cascadia/TerminalControl/TermControl.h
+++ b/src/cascadia/TerminalControl/TermControl.h
@@ -81,6 +81,8 @@ namespace winrt::Microsoft::Terminal::TerminalControl::implementation
 
         void CreateSearchBoxControl();
 
+        bool OnF7Pressed();
+
         ~TermControl();
 
         Windows::UI::Xaml::Automation::Peers::AutomationPeer OnCreateAutomationPeer();
diff --git a/src/cascadia/TerminalControl/TermControl.idl b/src/cascadia/TerminalControl/TermControl.idl
index 75d5895b02c..0a01a329121 100644
--- a/src/cascadia/TerminalControl/TermControl.idl
+++ b/src/cascadia/TerminalControl/TermControl.idl
@@ -7,6 +7,17 @@ namespace Microsoft.Terminal.TerminalControl
     delegate void FontSizeChangedEventArgs(Int32 width, Int32 height, Boolean isInitialChange);
     delegate void ScrollPositionChangedEventArgs(Int32 viewTop, Int32 viewHeight, Int32 bufferLength);
 
+    // C++/winrt makes it difficult to share this idl between two projects,
+    // Instead, we just pin the uuid and include it in both TermControl and App
+    // If you update this one, please update TerminalApp\IF7Listener.idl.
+    // If you change this interface, please update the guid.
+    // If you press F7 and get a runtime error, go make sure both copies are the same.
+    [uuid("339e1a87-5315-4da6-96f0-565549b6472b")]
+    interface IF7Listener
+    {
+        Boolean OnF7Pressed();
+    }
+
     runtimeclass CopyToClipboardEventArgs
     {
         String Text { get; };
@@ -19,7 +30,7 @@ namespace Microsoft.Terminal.TerminalControl
         void HandleClipboardData(String data);
     }
 
-    [default_interface] runtimeclass TermControl : Windows.UI.Xaml.Controls.UserControl
+    [default_interface] runtimeclass TermControl : Windows.UI.Xaml.Controls.UserControl, IF7Listener
     {
         TermControl();
         TermControl(Microsoft.Terminal.Settings.IControlSettings settings, Microsoft.Terminal.TerminalConnection.ITerminalConnection connection);
diff --git a/src/cascadia/WindowsTerminal/AppHost.cpp b/src/cascadia/WindowsTerminal/AppHost.cpp
index eae4aba9529..2959b22220e 100644
--- a/src/cascadia/WindowsTerminal/AppHost.cpp
+++ b/src/cascadia/WindowsTerminal/AppHost.cpp
@@ -63,6 +63,15 @@ AppHost::~AppHost()
     _app = nullptr;
 }
 
+bool AppHost::OnF7Pressed()
+{
+    if (_logic)
+    {
+        return _logic.OnF7Pressed();
+    }
+    return false;
+}
+
 // Method Description:
 // - Retrieve any commandline args passed on the commandline, and pass them to
 //   the app logic for processing.
diff --git a/src/cascadia/WindowsTerminal/AppHost.h b/src/cascadia/WindowsTerminal/AppHost.h
index f65669dca5b..90b65b21c24 100644
--- a/src/cascadia/WindowsTerminal/AppHost.h
+++ b/src/cascadia/WindowsTerminal/AppHost.h
@@ -17,6 +17,7 @@ class AppHost
     void AppTitleChanged(const winrt::Windows::Foundation::IInspectable& sender, winrt::hstring newTitle);
     void LastTabClosed(const winrt::Windows::Foundation::IInspectable& sender, const winrt::TerminalApp::LastTabClosedEventArgs& args);
     void Initialize();
+    bool OnF7Pressed();
 
 private:
     bool _useNonClientArea;
diff --git a/src/cascadia/WindowsTerminal/main.cpp b/src/cascadia/WindowsTerminal/main.cpp
index f8fcb2c7cef..26ce23be95f 100644
--- a/src/cascadia/WindowsTerminal/main.cpp
+++ b/src/cascadia/WindowsTerminal/main.cpp
@@ -73,6 +73,11 @@ static void EnsureNativeArchitecture()
     }
 }
 
+static bool _messageIsF7Keypress(const MSG& message)
+{
+    return (message.message == WM_KEYDOWN || message.message == WM_SYSKEYDOWN) && message.wParam == VK_F7;
+}
+
 int __stdcall wWinMain(HINSTANCE, HINSTANCE, LPWSTR, int)
 {
     TraceLoggingRegister(g_hWindowsTerminalProvider);
@@ -115,6 +120,23 @@ int __stdcall wWinMain(HINSTANCE, HINSTANCE, LPWSTR, int)
 
     while (GetMessage(&message, nullptr, 0, 0))
     {
+        // GH#638 (Pressing F7 brings up both the history AND a caret browsing message)
+        // The Xaml input stack doesn't allow an application to suppress the "caret browsing"
+        // dialog experience triggered when you press F7. Official recommendation from the Xaml
+        // team is to catch F7 before we hand it off.
+        // AppLogic contains an ad-hoc implementation of event bubbling for a runtime classes
+        // implementing a custom IF7Listener interface.
+        // If the recipient of IF7Listener::OnF7Pressed suggests that the F7 press has, in fact,
+        // been handled we can discard the message before we even translate it.
+        if (_messageIsF7Keypress(message))
+        {
+            if (host.OnF7Pressed())
+            {
+                // The application consumed the F7. Don't let Xaml get it.
+                continue;
+            }
+        }
+
         TranslateMessage(&message);
         DispatchMessage(&message);
     }