diff --git a/osu.Game/Configuration/OsuConfigManager.cs b/osu.Game/Configuration/OsuConfigManager.cs
index 71cbdb345c..78179a781a 100644
--- a/osu.Game/Configuration/OsuConfigManager.cs
+++ b/osu.Game/Configuration/OsuConfigManager.cs
@@ -70,7 +70,7 @@ namespace osu.Game.Configuration
 
             Set(OsuSetting.MouseDisableButtons, false);
             Set(OsuSetting.MouseDisableWheel, false);
-            Set(OsuSetting.ConfineMouseMode, OsuConfineMouseMode.WhenOverlaysDisabled);
+            Set(OsuSetting.ConfineMouseMode, OsuConfineMouseMode.DuringGameplay);
 
             // Graphics
             Set(OsuSetting.ShowFpsDisplay, false);
diff --git a/osu.Game/Input/ConfineMouseTracker.cs b/osu.Game/Input/ConfineMouseTracker.cs
index 3b54c03bb0..c1089874ae 100644
--- a/osu.Game/Input/ConfineMouseTracker.cs
+++ b/osu.Game/Input/ConfineMouseTracker.cs
@@ -7,30 +7,29 @@ using osu.Framework.Configuration;
 using osu.Framework.Graphics;
 using osu.Framework.Input;
 using osu.Game.Configuration;
-using osu.Game.Overlays;
 
 namespace osu.Game.Input
 {
     /// <summary>
-    /// Connects <see cref="OsuSetting.ConfineMouseMode"/> with <see cref="FrameworkSetting.ConfineMouseMode"/>,
-    /// while binding <see cref="OsuGame.OverlayActivationMode"/>.
-    /// It is assumed that while overlay activation is <see cref="OverlayActivation.Disabled"/>, we should also confine the
-    /// mouse cursor if it has been requested with <see cref="OsuConfineMouseMode.WhenOverlaysDisabled"/>.
+    /// Connects <see cref="OsuSetting.ConfineMouseMode"/> with <see cref="FrameworkSetting.ConfineMouseMode"/>.
+    /// If <see cref="OsuGame.IsGameplay"/> is true, we should also confine the mouse cursor if it has been
+    /// requested with <see cref="OsuConfineMouseMode.DuringGameplay"/>.
     /// </summary>
     public class ConfineMouseTracker : Component
     {
         private Bindable<ConfineMouseMode> frameworkConfineMode;
         private Bindable<OsuConfineMouseMode> osuConfineMode;
-        private IBindable<OverlayActivation> overlayActivationMode;
+        private IBindable<bool> isGameplay;
 
         [BackgroundDependencyLoader]
         private void load(OsuGame game, FrameworkConfigManager frameworkConfigManager, OsuConfigManager osuConfigManager)
         {
             frameworkConfineMode = frameworkConfigManager.GetBindable<ConfineMouseMode>(FrameworkSetting.ConfineMouseMode);
             osuConfineMode = osuConfigManager.GetBindable<OsuConfineMouseMode>(OsuSetting.ConfineMouseMode);
+            isGameplay = game.IsGameplay.GetBoundCopy();
+
             osuConfineMode.ValueChanged += _ => updateConfineMode();
-            overlayActivationMode = game.OverlayActivationMode.GetBoundCopy();
-            overlayActivationMode.BindValueChanged(_ => updateConfineMode(), true);
+            isGameplay.BindValueChanged(_ => updateConfineMode(), true);
         }
 
         private void updateConfineMode()
@@ -45,8 +44,8 @@ namespace osu.Game.Input
                     frameworkConfineMode.Value = ConfineMouseMode.Fullscreen;
                     break;
 
-                case OsuConfineMouseMode.WhenOverlaysDisabled:
-                    frameworkConfineMode.Value = overlayActivationMode?.Value == OverlayActivation.Disabled ? ConfineMouseMode.Always : ConfineMouseMode.Never;
+                case OsuConfineMouseMode.DuringGameplay:
+                    frameworkConfineMode.Value = isGameplay.Value ? ConfineMouseMode.Always : ConfineMouseMode.Never;
                     break;
 
                 case OsuConfineMouseMode.Always:
diff --git a/osu.Game/Input/OsuConfineMouseMode.cs b/osu.Game/Input/OsuConfineMouseMode.cs
index e8411a3d9f..32b456395c 100644
--- a/osu.Game/Input/OsuConfineMouseMode.cs
+++ b/osu.Game/Input/OsuConfineMouseMode.cs
@@ -23,11 +23,11 @@ namespace osu.Game.Input
         Fullscreen,
 
         /// <summary>
-        /// The mouse cursor will be locked to the window bounds while overlays are disabled,
+        /// The mouse cursor will be locked to the window bounds during gameplay,
         /// but may otherwise move freely.
         /// </summary>
         [Description("During Gameplay")]
-        WhenOverlaysDisabled,
+        DuringGameplay,
 
         /// <summary>
         /// The mouse cursor will always be locked to the window bounds while the game has focus.
diff --git a/osu.Game/OsuGame.cs b/osu.Game/OsuGame.cs
index 06e6e4bfb0..466ff13615 100644
--- a/osu.Game/OsuGame.cs
+++ b/osu.Game/OsuGame.cs
@@ -97,6 +97,11 @@ namespace osu.Game
         /// </summary>
         public readonly IBindable<OverlayActivation> OverlayActivationMode = new Bindable<OverlayActivation>();
 
+        /// <summary>
+        /// Whether gameplay is currently active.
+        /// </summary>
+        public readonly Bindable<bool> IsGameplay = new BindableBool();
+
         protected OsuScreenStack ScreenStack;
 
         protected BackButton BackButton;
diff --git a/osu.Game/Screens/Play/Player.cs b/osu.Game/Screens/Play/Player.cs
index 175722c44e..a217d2a396 100644
--- a/osu.Game/Screens/Play/Player.cs
+++ b/osu.Game/Screens/Play/Player.cs
@@ -68,6 +68,8 @@ namespace osu.Game.Screens.Play
 
         private readonly Bindable<bool> storyboardReplacesBackground = new Bindable<bool>();
 
+        private readonly Bindable<bool> isGameplay = new Bindable<bool>();
+
         public int RestartCount;
 
         [Resolved]
@@ -156,7 +158,7 @@ namespace osu.Game.Screens.Play
         }
 
         [BackgroundDependencyLoader]
-        private void load(AudioManager audio, OsuConfigManager config)
+        private void load(AudioManager audio, OsuConfigManager config, OsuGame game)
         {
             Mods.Value = base.Mods.Value.Select(m => m.CreateCopy()).ToArray();
 
@@ -172,6 +174,8 @@ namespace osu.Game.Screens.Play
 
             mouseWheelDisabled = config.GetBindable<bool>(OsuSetting.MouseDisableWheel);
 
+            isGameplay.BindTo(game.IsGameplay);
+
             DrawableRuleset = ruleset.CreateDrawableRulesetWith(playableBeatmap, Mods.Value);
 
             ScoreProcessor = ruleset.CreateScoreProcessor();
@@ -219,9 +223,9 @@ namespace osu.Game.Screens.Play
                 skipOverlay.Hide();
             }
 
-            DrawableRuleset.IsPaused.BindValueChanged(_ => updateOverlayActivationMode());
-            DrawableRuleset.HasReplayLoaded.BindValueChanged(_ => updateOverlayActivationMode());
-            breakTracker.IsBreakTime.BindValueChanged(_ => updateOverlayActivationMode());
+            DrawableRuleset.IsPaused.BindValueChanged(_ => updateGameplayState());
+            DrawableRuleset.HasReplayLoaded.BindValueChanged(_ => updateGameplayState());
+            breakTracker.IsBreakTime.BindValueChanged(_ => updateGameplayState());
 
             DrawableRuleset.HasReplayLoaded.BindValueChanged(_ => updatePauseOnFocusLostState(), true);
 
@@ -353,14 +357,11 @@ namespace osu.Game.Screens.Play
             HUDOverlay.KeyCounter.IsCounting = !isBreakTime.NewValue;
         }
 
-        private void updateOverlayActivationMode()
+        private void updateGameplayState()
         {
-            bool canTriggerOverlays = DrawableRuleset.IsPaused.Value || breakTracker.IsBreakTime.Value;
-
-            if (DrawableRuleset.HasReplayLoaded.Value || canTriggerOverlays)
-                OverlayActivationMode.Value = OverlayActivation.UserTriggered;
-            else
-                OverlayActivationMode.Value = OverlayActivation.Disabled;
+            bool inGameplay = !DrawableRuleset.HasReplayLoaded.Value && !DrawableRuleset.IsPaused.Value && !breakTracker.IsBreakTime.Value;
+            OverlayActivationMode.Value = inGameplay ? OverlayActivation.Disabled : OverlayActivation.UserTriggered;
+            isGameplay.Value = inGameplay;
         }
 
         private void updatePauseOnFocusLostState() =>
@@ -657,7 +658,7 @@ namespace osu.Game.Screens.Play
             foreach (var mod in Mods.Value.OfType<IApplicableToTrack>())
                 mod.ApplyToTrack(musicController.CurrentTrack);
 
-            updateOverlayActivationMode();
+            updateGameplayState();
         }
 
         public override void OnSuspending(IScreen next)
@@ -693,6 +694,9 @@ namespace osu.Game.Screens.Play
 
             musicController.ResetTrackAdjustments();
 
+            // Ensure we reset the IsGameplay state
+            isGameplay.Value = false;
+
             fadeOut();
             return base.OnExiting(next);
         }