diff --git a/src/cascadia/TerminalApp/AppActionHandlers.cpp b/src/cascadia/TerminalApp/AppActionHandlers.cpp
index 50bd7cd122..afb3e0a6e5 100644
--- a/src/cascadia/TerminalApp/AppActionHandlers.cpp
+++ b/src/cascadia/TerminalApp/AppActionHandlers.cpp
@@ -756,7 +756,7 @@ namespace winrt::TerminalApp::implementation
             if (!actions.empty())
             {
                 actionArgs.Handled(true);
-                ProcessStartupActions(std::move(actions), false);
+                ProcessStartupActions(std::move(actions));
             }
         }
     }
diff --git a/src/cascadia/TerminalApp/AppCommandlineArgs.cpp b/src/cascadia/TerminalApp/AppCommandlineArgs.cpp
index 1e4b7a3b10..1b7881dc27 100644
--- a/src/cascadia/TerminalApp/AppCommandlineArgs.cpp
+++ b/src/cascadia/TerminalApp/AppCommandlineArgs.cpp
@@ -961,18 +961,6 @@ std::vector<ActionAndArgs>& AppCommandlineArgs::GetStartupActions()
     return _startupActions;
 }
 
-// Method Description:
-// - Returns whether we should start listening for inbound PTY connections
-//   coming from the operating system default application feature.
-// Arguments:
-// - <none>
-// Return Value:
-// - True if the listener should be started. False otherwise.
-bool AppCommandlineArgs::IsHandoffListener() const noexcept
-{
-    return _isHandoffListener;
-}
-
 // Method Description:
 // - Get the string of text that should be displayed to the user on exit. This
 //   is usually helpful for cases where the user entered some sort of invalid
@@ -1015,34 +1003,28 @@ bool AppCommandlineArgs::ShouldExitEarly() const noexcept
 // - <none>
 void AppCommandlineArgs::ValidateStartupCommands()
 {
-    // Only check over the actions list for the potential to add a new-tab
-    // command if we are not starting for the purposes of receiving an inbound
-    // handoff connection from the operating system.
-    if (!_isHandoffListener)
+    // If we only have a single x-save command, then set our target to the
+    // current terminal window. This will prevent us from spawning a new
+    // window just to save the commandline.
+    if (_startupActions.size() == 1 &&
+        _startupActions.front().Action() == ShortcutAction::SaveSnippet &&
+        _windowTarget.empty())
     {
-        // If we only have a single x-save command, then set our target to the
-        // current terminal window. This will prevent us from spawning a new
-        // window just to save the commandline.
-        if (_startupActions.size() == 1 &&
-            _startupActions.front().Action() == ShortcutAction::SaveSnippet &&
-            _windowTarget.empty())
-        {
-            _windowTarget = "0";
-        }
-        // If we parsed no commands, or the first command we've parsed is not a new
-        // tab action, prepend a new-tab command to the front of the list.
-        // (also, we don't need to do this if the only action is a x-save)
-        else if (_startupActions.empty() ||
-                 (_startupActions.front().Action() != ShortcutAction::NewTab &&
-                  _startupActions.front().Action() != ShortcutAction::SaveSnippet))
-        {
-            // Build the NewTab action from the values we've parsed on the commandline.
-            NewTerminalArgs newTerminalArgs{};
-            NewTabArgs args{ newTerminalArgs };
-            ActionAndArgs newTabAction{ ShortcutAction::NewTab, args };
-            // push the arg onto the front
-            _startupActions.insert(_startupActions.begin(), 1, newTabAction);
-        }
+        _windowTarget = "0";
+    }
+    // If we parsed no commands, or the first command we've parsed is not a new
+    // tab action, prepend a new-tab command to the front of the list.
+    // (also, we don't need to do this if the only action is a x-save)
+    else if (_startupActions.empty() ||
+             (_startupActions.front().Action() != ShortcutAction::NewTab &&
+              _startupActions.front().Action() != ShortcutAction::SaveSnippet))
+    {
+        // Build the NewTab action from the values we've parsed on the commandline.
+        NewTerminalArgs newTerminalArgs{};
+        NewTabArgs args{ newTerminalArgs };
+        ActionAndArgs newTabAction{ ShortcutAction::NewTab, args };
+        // push the arg onto the front
+        _startupActions.insert(_startupActions.begin(), 1, newTabAction);
     }
 }
 std::optional<uint32_t> AppCommandlineArgs::GetPersistedLayoutIdx() const noexcept
@@ -1082,13 +1064,9 @@ std::optional<til::size> AppCommandlineArgs::GetSize() const noexcept
 // - 0 if the commandline was successfully parsed
 int AppCommandlineArgs::ParseArgs(winrt::array_view<const winrt::hstring> args)
 {
-    for (const auto& arg : args)
+    if (args.size() == 2 && args[1] == L"-Embedding")
     {
-        if (arg == L"-Embedding")
-        {
-            _isHandoffListener = true;
-            return 0;
-        }
+        return 0;
     }
 
     auto commands = ::TerminalApp::AppCommandlineArgs::BuildCommands(args);
@@ -1195,7 +1173,6 @@ void AppCommandlineArgs::FullResetState()
     _startupActions.clear();
     _exitMessage = "";
     _shouldExitEarly = false;
-    _isHandoffListener = false;
 
     _windowTarget = {};
 }
diff --git a/src/cascadia/TerminalApp/AppCommandlineArgs.h b/src/cascadia/TerminalApp/AppCommandlineArgs.h
index 9f580e957b..0a9de3999c 100644
--- a/src/cascadia/TerminalApp/AppCommandlineArgs.h
+++ b/src/cascadia/TerminalApp/AppCommandlineArgs.h
@@ -35,7 +35,6 @@ public:
 
     void ValidateStartupCommands();
     std::vector<winrt::Microsoft::Terminal::Settings::Model::ActionAndArgs>& GetStartupActions();
-    bool IsHandoffListener() const noexcept;
     const std::string& GetExitMessage() const noexcept;
     bool ShouldExitEarly() const noexcept;
 
@@ -132,7 +131,6 @@ private:
     std::optional<winrt::Microsoft::Terminal::Settings::Model::LaunchMode> _launchMode{ std::nullopt };
     std::optional<winrt::Microsoft::Terminal::Settings::Model::LaunchPosition> _position{ std::nullopt };
     std::optional<til::size> _size{ std::nullopt };
-    bool _isHandoffListener{ false };
     std::vector<winrt::Microsoft::Terminal::Settings::Model::ActionAndArgs> _startupActions;
     std::string _exitMessage;
     bool _shouldExitEarly{ false };
diff --git a/src/cascadia/TerminalApp/Remoting.cpp b/src/cascadia/TerminalApp/Remoting.cpp
index 0c8693ed46..078a0d7f11 100644
--- a/src/cascadia/TerminalApp/Remoting.cpp
+++ b/src/cascadia/TerminalApp/Remoting.cpp
@@ -15,19 +15,6 @@ using namespace winrt::Windows::Foundation;
 
 namespace winrt::TerminalApp::implementation
 {
-    CommandlineArgs::CommandlineArgs(winrt::array_view<const winrt::hstring> args, winrt::hstring currentDirectory, uint32_t showWindowCommand, winrt::hstring envString) :
-        _args{ args.begin(), args.end() },
-        CurrentDirectory{ std::move(currentDirectory) },
-        ShowWindowCommand{ showWindowCommand },
-        CurrentEnvironment{ std::move(envString) }
-    {
-        _parseResult = _parsed.ParseArgs(_args);
-        if (_parseResult == 0)
-        {
-            _parsed.ValidateStartupCommands();
-        }
-    }
-
     ::TerminalApp::AppCommandlineArgs& CommandlineArgs::ParsedArgs() noexcept
     {
         return _parsed;
@@ -56,6 +43,11 @@ namespace winrt::TerminalApp::implementation
     void CommandlineArgs::Commandline(const winrt::array_view<const winrt::hstring>& value)
     {
         _args = { value.begin(), value.end() };
+        _parseResult = _parsed.ParseArgs(_args);
+        if (_parseResult == 0)
+        {
+            _parsed.ValidateStartupCommands();
+        }
     }
 
     winrt::com_array<winrt::hstring> CommandlineArgs::Commandline()
diff --git a/src/cascadia/TerminalApp/Remoting.h b/src/cascadia/TerminalApp/Remoting.h
index 2ad297f31e..9d4a48df76 100644
--- a/src/cascadia/TerminalApp/Remoting.h
+++ b/src/cascadia/TerminalApp/Remoting.h
@@ -13,21 +13,17 @@ namespace winrt::TerminalApp::implementation
 {
     struct CommandlineArgs : public CommandlineArgsT<CommandlineArgs>
     {
-        CommandlineArgs() = default;
-        CommandlineArgs(winrt::array_view<const winrt::hstring> args, winrt::hstring currentDirectory, uint32_t showWindowCommand, winrt::hstring envString);
-
         ::TerminalApp::AppCommandlineArgs& ParsedArgs() noexcept;
         winrt::com_array<winrt::hstring>& CommandlineRef() noexcept;
 
         // These bits are exposed via WinRT:
-    public:
         int32_t ExitCode() const noexcept;
         winrt::hstring ExitMessage() const;
         winrt::hstring TargetWindow() const;
 
+        til::property<winrt::Microsoft::Terminal::TerminalConnection::ITerminalConnection> Connection;
         void Commandline(const winrt::array_view<const winrt::hstring>& value);
         winrt::com_array<winrt::hstring> Commandline();
-
         til::property<winrt::hstring> CurrentDirectory;
         til::property<winrt::hstring> CurrentEnvironment;
         til::property<uint32_t> ShowWindowCommand{ static_cast<uint32_t>(SW_NORMAL) }; // SW_NORMAL is 1, 0 is SW_HIDE
@@ -86,11 +82,9 @@ namespace winrt::TerminalApp::implementation
 
         WINRT_PROPERTY(uint64_t, Id);
         WINRT_PROPERTY(winrt::hstring, WindowName);
-        WINRT_PROPERTY(TerminalApp::CommandlineArgs, Command);
+        WINRT_PROPERTY(TerminalApp::CommandlineArgs, Command, nullptr);
         WINRT_PROPERTY(winrt::hstring, Content);
         WINRT_PROPERTY(Windows::Foundation::IReference<Windows::Foundation::Rect>, InitialBounds);
-
-    private:
     };
 }
 
diff --git a/src/cascadia/TerminalApp/Remoting.idl b/src/cascadia/TerminalApp/Remoting.idl
index 17f1318422..07fde64e50 100644
--- a/src/cascadia/TerminalApp/Remoting.idl
+++ b/src/cascadia/TerminalApp/Remoting.idl
@@ -6,16 +6,16 @@ namespace TerminalApp
     runtimeclass CommandlineArgs
     {
         CommandlineArgs();
-        CommandlineArgs(String[] args, String cwd, UInt32 showWindowCommand, String env);
 
         Int32 ExitCode { get; };
         String ExitMessage { get; };
         String TargetWindow { get; };
 
+        Microsoft.Terminal.TerminalConnection.ITerminalConnection Connection;
         String[] Commandline;
-        String CurrentDirectory { get; };
-        UInt32 ShowWindowCommand { get; };
-        String CurrentEnvironment { get; };
+        String CurrentDirectory;
+        UInt32 ShowWindowCommand;
+        String CurrentEnvironment;
     };
 
     enum MonitorBehavior
diff --git a/src/cascadia/TerminalApp/TerminalPage.cpp b/src/cascadia/TerminalApp/TerminalPage.cpp
index f900e05cb7..1de587c26f 100644
--- a/src/cascadia/TerminalApp/TerminalPage.cpp
+++ b/src/cascadia/TerminalApp/TerminalPage.cpp
@@ -7,7 +7,6 @@
 
 #include <LibraryResources.h>
 #include <TerminalCore/ControlKeyStates.hpp>
-#include <til/latch.h>
 #include <Utils.h>
 
 #include "../../types/inc/utils.hpp"
@@ -293,12 +292,11 @@ namespace winrt::TerminalApp::implementation
     // - true if we're not elevated but all relevant pane-spawning actions are elevated
     bool TerminalPage::ShouldImmediatelyHandoffToElevated(const CascadiaSettings& settings) const
     {
-        // GH#12267: Don't forget about defterm handoff here. If we're being
-        // created for embedding, then _yea_, we don't need to handoff to an
-        // elevated window.
-        if (_startupActions.empty() || IsRunningElevated() || _shouldStartInboundListener)
+        if (_startupActions.empty() || _startupConnection || IsRunningElevated())
         {
-            // there aren't startup actions, or we're elevated. In that case, go for it.
+            // No point in handing off if we got no startup actions, or we're already elevated.
+            // Also, we shouldn't need to elevate handoff ConPTY connections.
+            assert(!_startupConnection);
             return false;
         }
 
@@ -488,46 +486,16 @@ namespace winrt::TerminalApp::implementation
         {
             _startupState = StartupState::InStartup;
 
-            ProcessStartupActions(std::move(_startupActions), true);
-
-            // If we were told that the COM server needs to be started to listen for incoming
-            // default application connections, start it now.
-            // This MUST be done after we've registered the event listener for the new connections
-            // or the COM server might start receiving requests on another thread and dispatch
-            // them to nowhere.
-            _StartInboundListener();
-        }
-    }
-
-    // Routine Description:
-    // - Will start the listener for inbound console handoffs if we have already determined
-    //   that we should do so.
-    // NOTE: Must be after TerminalPage::_OnNewConnection has been connected up.
-    // Arguments:
-    // - <unused> - Looks at _shouldStartInboundListener
-    // Return Value:
-    // - <none> - May fail fast if setup fails as that would leave us in a weird state.
-    void TerminalPage::_StartInboundListener()
-    {
-        if (_shouldStartInboundListener)
-        {
-            _shouldStartInboundListener = false;
-
-            // Hook up inbound connection event handler
-            _newConnectionRevoker = ConptyConnection::NewConnection(winrt::auto_revoke, { this, &TerminalPage::_OnNewConnection });
-
-            try
+            if (_startupConnection)
             {
-                winrt::Microsoft::Terminal::TerminalConnection::ConptyConnection::StartInboundListener();
+                CreateTabFromConnection(std::move(_startupConnection));
             }
-            // If we failed to start the listener, it will throw.
-            // We don't want to fail fast here because if a peasant has some trouble with
-            // starting the listener, we don't want it to crash and take all its tabs down
-            // with it.
-            catch (...)
+            else if (!_startupActions.empty())
             {
-                LOG_CAUGHT_EXCEPTION();
+                ProcessStartupActions(std::move(_startupActions));
             }
+
+            _CompleteInitialization();
         }
     }
 
@@ -545,7 +513,7 @@ namespace winrt::TerminalApp::implementation
     //   nt -d .` from inside another directory to work as expected.
     // Return Value:
     // - <none>
-    safe_void_coroutine TerminalPage::ProcessStartupActions(std::vector<ActionAndArgs> actions, const bool initial, const winrt::hstring cwd, const winrt::hstring env)
+    safe_void_coroutine TerminalPage::ProcessStartupActions(std::vector<ActionAndArgs> actions, const winrt::hstring cwd, const winrt::hstring env)
     {
         const auto strong = get_strong();
 
@@ -597,11 +565,29 @@ namespace winrt::TerminalApp::implementation
                 content.Focus(FocusState::Programmatic);
             }
         }
+    }
 
-        if (initial)
+    void TerminalPage::CreateTabFromConnection(ITerminalConnection connection)
+    {
+        NewTerminalArgs newTerminalArgs;
+
+        if (const auto conpty = connection.try_as<ConptyConnection>())
         {
-            _CompleteInitialization();
+            newTerminalArgs.Commandline(conpty.Commandline());
+            newTerminalArgs.TabTitle(conpty.StartingTitle());
         }
+
+        // GH #12370: We absolutely cannot allow a defterm connection to
+        // auto-elevate. Defterm doesn't work for elevated scenarios in the
+        // first place. If we try accepting the connection, the spawning an
+        // elevated version of the Terminal with that profile... that's a
+        // recipe for disaster. We won't ever open up a tab in this window.
+        newTerminalArgs.Elevate(false);
+        const auto newPane = _MakePane(newTerminalArgs, nullptr, std::move(connection));
+        newPane->WalkTree([](const auto& pane) {
+            pane->FinalizeConfigurationGivenDefault();
+        });
+        _CreateNewTabFromPane(newPane);
     }
 
     // Method Description:
@@ -629,7 +615,7 @@ namespace winrt::TerminalApp::implementation
         // GH#12267: Make sure that we don't instantly close ourselves when
         // we're readying to accept a defterm connection. In that case, we don't
         // have a tab yet, but will once we're initialized.
-        if (_tabs.Size() == 0 && !_shouldStartInboundListener && !_isEmbeddingInboundListener)
+        if (_tabs.Size() == 0)
         {
             CloseWindowRequested.raise(*this, nullptr);
             co_return;
@@ -3653,25 +3639,9 @@ namespace winrt::TerminalApp::implementation
         _startupActions = std::move(actions);
     }
 
-    // Routine Description:
-    // - Notifies this Terminal Page that it should start the incoming connection
-    //   listener for command-line tools attempting to join this Terminal
-    //   through the default application channel.
-    // Arguments:
-    // - isEmbedding - True if COM started us to be a server. False if we're doing it of our own accord.
-    // Return Value:
-    // - <none>
-    void TerminalPage::SetInboundListener(bool isEmbedding)
+    void TerminalPage::SetStartupConnection(ITerminalConnection connection)
     {
-        _shouldStartInboundListener = true;
-        _isEmbeddingInboundListener = isEmbedding;
-
-        // If the page has already passed the NotInitialized state,
-        // then it is ready-enough for us to just start this immediately.
-        if (_startupState != StartupState::NotInitialized)
-        {
-            _StartInboundListener();
-        }
+        _startupConnection = std::move(connection);
     }
 
     winrt::TerminalApp::IDialogPresenter TerminalPage::DialogPresenter() const
@@ -4073,68 +4043,6 @@ namespace winrt::TerminalApp::implementation
         ChangeMaximizeRequested.raise(*this, nullptr);
     }
 
-    HRESULT TerminalPage::_OnNewConnection(const ConptyConnection& connection)
-    {
-        _newConnectionRevoker.revoke();
-
-        // We need to be on the UI thread in order for _OpenNewTab to run successfully.
-        // HasThreadAccess will return true if we're currently on a UI thread and false otherwise.
-        // When we're on a COM thread, we'll need to dispatch the calls to the UI thread
-        // and wait on it hence the locking mechanism.
-        if (!Dispatcher().HasThreadAccess())
-        {
-            til::latch latch{ 1 };
-            auto finalVal = S_OK;
-
-            Dispatcher().RunAsync(CoreDispatcherPriority::Normal, [&]() {
-                finalVal = _OnNewConnection(connection);
-                latch.count_down();
-            });
-
-            latch.wait();
-            return finalVal;
-        }
-
-        try
-        {
-            NewTerminalArgs newTerminalArgs;
-            newTerminalArgs.Commandline(connection.Commandline());
-            newTerminalArgs.TabTitle(connection.StartingTitle());
-            // GH #12370: We absolutely cannot allow a defterm connection to
-            // auto-elevate. Defterm doesn't work for elevated scenarios in the
-            // first place. If we try accepting the connection, the spawning an
-            // elevated version of the Terminal with that profile... that's a
-            // recipe for disaster. We won't ever open up a tab in this window.
-            newTerminalArgs.Elevate(false);
-            const auto newPane = _MakePane(newTerminalArgs, nullptr, connection);
-            newPane->WalkTree([](const auto& pane) {
-                pane->FinalizeConfigurationGivenDefault();
-            });
-            _CreateNewTabFromPane(newPane);
-
-            // Request a summon of this window to the foreground
-            SummonWindowRequested.raise(*this, nullptr);
-
-            // TEMPORARY SOLUTION
-            // If the connection has requested for the window to be maximized,
-            // manually maximize it here. Ideally, we should be _initializing_
-            // the session maximized, instead of manually maximizing it after initialization.
-            // However, because of the current way our defterm handoff works,
-            // we are unable to get the connection info before the terminal session
-            // has already started.
-
-            // Make sure that there were no other tabs already existing (in
-            // the case that we are in glomming mode), because we don't want
-            // to be maximizing other existing sessions that did not ask for it.
-            if (_tabs.Size() == 1 && connection.ShowWindow() == SW_SHOWMAXIMIZED)
-            {
-                RequestSetMaximized(true);
-            }
-            return S_OK;
-        }
-        CATCH_RETURN()
-    }
-
     TerminalApp::IPaneContent TerminalPage::_makeSettingsContent()
     {
         if (auto app{ winrt::Windows::UI::Xaml::Application::Current().try_as<winrt::TerminalApp::App>() })
diff --git a/src/cascadia/TerminalApp/TerminalPage.h b/src/cascadia/TerminalApp/TerminalPage.h
index 1fd773fb3b..4879f65fc6 100644
--- a/src/cascadia/TerminalApp/TerminalPage.h
+++ b/src/cascadia/TerminalApp/TerminalPage.h
@@ -129,8 +129,8 @@ namespace winrt::TerminalApp::implementation
         void RequestSetMaximized(bool newMaximized);
 
         void SetStartupActions(std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> actions);
+        void SetStartupConnection(winrt::Microsoft::Terminal::TerminalConnection::ITerminalConnection connection);
 
-        void SetInboundListener(bool isEmbedding);
         static std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> ConvertExecuteCommandlineToActions(const Microsoft::Terminal::Settings::Model::ExecuteCommandlineArgs& args);
 
         winrt::TerminalApp::IDialogPresenter DialogPresenter() const;
@@ -147,9 +147,9 @@ namespace winrt::TerminalApp::implementation
         void ShowTerminalWorkingDirectory();
 
         safe_void_coroutine ProcessStartupActions(std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> actions,
-                                                  const bool initial,
                                                   const winrt::hstring cwd = winrt::hstring{},
                                                   const winrt::hstring env = winrt::hstring{});
+        void CreateTabFromConnection(winrt::Microsoft::Terminal::TerminalConnection::ITerminalConnection connection);
 
         TerminalApp::WindowProperties WindowProperties() const noexcept { return _WindowProperties; };
 
@@ -257,8 +257,7 @@ namespace winrt::TerminalApp::implementation
         StartupState _startupState{ StartupState::NotInitialized };
 
         std::vector<Microsoft::Terminal::Settings::Model::ActionAndArgs> _startupActions;
-        bool _shouldStartInboundListener{ false };
-        bool _isEmbeddingInboundListener{ false };
+        winrt::Microsoft::Terminal::TerminalConnection::ITerminalConnection _startupConnection{ nullptr };
 
         std::shared_ptr<Toast> _windowIdToast{ nullptr };
         std::shared_ptr<Toast> _actionSavedToast{ nullptr };
@@ -282,8 +281,6 @@ namespace winrt::TerminalApp::implementation
             winrt::Windows::Foundation::Point dragOffset{ 0, 0 };
         } _stashed;
 
-        winrt::Microsoft::Terminal::TerminalConnection::ConptyConnection::NewConnection_revoker _newConnectionRevoker;
-
         safe_void_coroutine _NewTerminalByDrop(const Windows::Foundation::IInspectable&, winrt::Windows::UI::Xaml::DragEventArgs e);
 
         __declspec(noinline) CommandPalette _loadCommandPaletteSlowPath();
@@ -469,8 +466,6 @@ namespace winrt::TerminalApp::implementation
         void _SetNewTabButtonColor(const Windows::UI::Color& color, const Windows::UI::Color& accentColor);
         void _ClearNewTabButtonColor();
 
-        void _StartInboundListener();
-
         safe_void_coroutine _CompleteInitialization();
 
         void _FocusActiveControl(IInspectable sender, IInspectable eventArgs);
diff --git a/src/cascadia/TerminalApp/TerminalWindow.cpp b/src/cascadia/TerminalApp/TerminalWindow.cpp
index c2afef3412..0b329a8ee4 100644
--- a/src/cascadia/TerminalApp/TerminalWindow.cpp
+++ b/src/cascadia/TerminalApp/TerminalWindow.cpp
@@ -152,38 +152,23 @@ namespace winrt::TerminalApp::implementation
         //   instead.
         // * if we have commandline arguments, Pass commandline args into the
         //   TerminalPage.
-        if (!_initialContentArgs.empty())
+        if (_startupConnection)
         {
-            _root->SetStartupActions(_initialContentArgs);
+            _root->SetStartupConnection(std::move(_startupConnection));
         }
-        else
+        else if (!_initialContentArgs.empty())
+        {
+            _root->SetStartupActions(std::move(_initialContentArgs));
+        }
+        else if (const auto& layout = LoadPersistedLayout())
         {
             // layout will only ever be non-null if there were >0 tabs persisted in
             // .TabLayout(). We can re-evaluate that as a part of TODO: GH#12633
-            if (const auto& layout = LoadPersistedLayout())
-            {
-                std::vector<Settings::Model::ActionAndArgs> actions;
-                for (const auto& a : layout.TabLayout())
-                {
-                    actions.emplace_back(a);
-                }
-                _root->SetStartupActions(actions);
-            }
-            else if (_appArgs)
-            {
-                _root->SetStartupActions(_appArgs->ParsedArgs().GetStartupActions());
-            }
+            _root->SetStartupActions(wil::to_vector(layout.TabLayout()));
         }
-
-        // Check if we were started as a COM server for inbound connections of console sessions
-        // coming out of the operating system default application feature. If so,
-        // tell TerminalPage to start the listener as we have to make sure it has the chance
-        // to register a handler to hear about the requests first and is all ready to receive
-        // them before the COM server registers itself. Otherwise, the request might come
-        // in and be routed to an event with no handlers or a non-ready Page.
-        if (_appArgs && _appArgs->ParsedArgs().IsHandoffListener())
+        else if (_appArgs)
         {
-            _root->SetInboundListener(true);
+            _root->SetStartupActions(_appArgs->ParsedArgs().GetStartupActions());
         }
 
         return _root->Initialize(hwnd);
@@ -1054,6 +1039,7 @@ namespace winrt::TerminalApp::implementation
     int32_t TerminalWindow::SetStartupCommandline(TerminalApp::CommandlineArgs args)
     {
         _appArgs = winrt::get_self<CommandlineArgs>(args);
+        _startupConnection = args.Connection();
         auto& parsedArgs = _appArgs->ParsedArgs();
 
         _WindowProperties->SetInitialCwd(_appArgs->CurrentDirectory());
@@ -1114,13 +1100,16 @@ namespace winrt::TerminalApp::implementation
             auto& parsedArgs = _appArgs->ParsedArgs();
             auto& actions = parsedArgs.GetStartupActions();
 
-            _root->ProcessStartupActions(actions, false, _appArgs->CurrentDirectory(), _appArgs->CurrentEnvironment());
-
-            if (parsedArgs.IsHandoffListener())
+            if (auto conn = args.Connection())
             {
-                _root->SetInboundListener(true);
+                _root->CreateTabFromConnection(std::move(conn));
+            }
+            else if (!actions.empty())
+            {
+                _root->ProcessStartupActions(actions, _appArgs->CurrentDirectory(), _appArgs->CurrentEnvironment());
             }
         }
+
         // Return the result of parsing with commandline, though it may or may not be used.
         return _appArgs->ExitCode();
     }
diff --git a/src/cascadia/TerminalApp/TerminalWindow.h b/src/cascadia/TerminalApp/TerminalWindow.h
index a7db7a8034..5127b3465c 100644
--- a/src/cascadia/TerminalApp/TerminalWindow.h
+++ b/src/cascadia/TerminalApp/TerminalWindow.h
@@ -169,6 +169,7 @@ namespace winrt::TerminalApp::implementation
         winrt::com_ptr<TerminalPage> _root{ nullptr };
 
         wil::com_ptr<CommandlineArgs> _appArgs{ nullptr };
+        winrt::Microsoft::Terminal::TerminalConnection::ITerminalConnection _startupConnection{ nullptr };
         bool _hasCommandLineArguments{ false };
         bool _gotSettingsStartupActions{ false };
         std::vector<winrt::Microsoft::Terminal::Settings::Model::ActionAndArgs> _settingsStartupArgs{};
diff --git a/src/cascadia/TerminalConnection/CTerminalHandoff.cpp b/src/cascadia/TerminalConnection/CTerminalHandoff.cpp
index 01b25c9ffe..c132a74615 100644
--- a/src/cascadia/TerminalConnection/CTerminalHandoff.cpp
+++ b/src/cascadia/TerminalConnection/CTerminalHandoff.cpp
@@ -39,7 +39,7 @@ try
     ComPtr<IUnknown> unk;
     RETURN_IF_FAILED(classFactory.As(&unk));
 
-    RETURN_IF_FAILED(CoRegisterClassObject(__uuidof(CTerminalHandoff), unk.Get(), CLSCTX_LOCAL_SERVER, REGCLS_SINGLEUSE, &g_cTerminalHandoffRegistration));
+    RETURN_IF_FAILED(CoRegisterClassObject(__uuidof(CTerminalHandoff), unk.Get(), CLSCTX_LOCAL_SERVER, REGCLS_MULTIPLEUSE, &g_cTerminalHandoffRegistration));
 
     return S_OK;
 }
@@ -83,41 +83,19 @@ HRESULT CTerminalHandoff::s_StopListening()
 //   from the registered handler event function.
 HRESULT CTerminalHandoff::EstablishPtyHandoff(HANDLE* in, HANDLE* out, HANDLE signal, HANDLE reference, HANDLE server, HANDLE client, const TERMINAL_STARTUP_INFO* startupInfo)
 {
-    try
-    {
-        // Because we are REGCLS_SINGLEUSE... we need to `CoRevokeClassObject` after we handle this ONE call.
-        // COM does not automatically clean that up for us. We must do it.
-        LOG_IF_FAILED(s_StopListening());
+    // Report an error if no one registered a handoff function before calling this.
+    RETURN_HR_IF_NULL(E_NOT_VALID_STATE, _pfnHandoff);
 
-        // Report an error if no one registered a handoff function before calling this.
-        THROW_HR_IF_NULL(E_NOT_VALID_STATE, _pfnHandoff);
-
-        // Call registered handler from when we started listening.
-        THROW_IF_FAILED(_pfnHandoff(in, out, signal, reference, server, client, startupInfo));
+    // Call registered handler from when we started listening.
+    RETURN_IF_FAILED(_pfnHandoff(in, out, signal, reference, server, client, startupInfo));
 
 #pragma warning(suppress : 26477)
-        TraceLoggingWrite(
-            g_hTerminalConnectionProvider,
-            "ReceiveTerminalHandoff_Success",
-            TraceLoggingDescription("successfully received a terminal handoff"),
-            TraceLoggingKeyword(MICROSOFT_KEYWORD_MEASURES),
-            TelemetryPrivacyDataTag(PDT_ProductAndServiceUsage));
+    TraceLoggingWrite(
+        g_hTerminalConnectionProvider,
+        "ReceiveTerminalHandoff_Success",
+        TraceLoggingDescription("successfully received a terminal handoff"),
+        TraceLoggingKeyword(MICROSOFT_KEYWORD_MEASURES),
+        TelemetryPrivacyDataTag(PDT_ProductAndServiceUsage));
 
-        return S_OK;
-    }
-    catch (...)
-    {
-        const auto hr = wil::ResultFromCaughtException();
-
-#pragma warning(suppress : 26477)
-        TraceLoggingWrite(
-            g_hTerminalConnectionProvider,
-            "ReceiveTerminalHandoff_Failed",
-            TraceLoggingDescription("failed while receiving a terminal handoff"),
-            TraceLoggingHResult(hr),
-            TraceLoggingKeyword(MICROSOFT_KEYWORD_MEASURES),
-            TelemetryPrivacyDataTag(PDT_ProductAndServiceUsage));
-
-        return hr;
-    }
+    return S_OK;
 }
diff --git a/src/cascadia/WindowsTerminal/AppHost.cpp b/src/cascadia/WindowsTerminal/AppHost.cpp
index 1e388f0f32..33d4b31cfb 100644
--- a/src/cascadia/WindowsTerminal/AppHost.cpp
+++ b/src/cascadia/WindowsTerminal/AppHost.cpp
@@ -77,6 +77,11 @@ AppHost::AppHost(WindowEmperor* manager, const winrt::TerminalApp::AppLogic& log
     _windowCallbacks.ShouldExitFullscreen = _window->ShouldExitFullscreen({ &_windowLogic, &winrt::TerminalApp::TerminalWindow::RequestExitFullscreen });
 
     _window->MakeWindow();
+
+    // Does window creation mean the window was activated (WM_ACTIVATE)? No.
+    // But it simplifies `WindowEmperor::_mostRecentWindow()`, because now the creation of a
+    // new window marks it as the most recent one immediately, even before it becomes active.
+    QueryPerformanceCounter(&_lastActivatedTime);
 }
 
 bool AppHost::OnDirectKeyEvent(const uint32_t vkey, const uint8_t scanCode, const bool down)
diff --git a/src/cascadia/WindowsTerminal/IslandWindow.cpp b/src/cascadia/WindowsTerminal/IslandWindow.cpp
index 7e3ef659b6..ba128e2814 100644
--- a/src/cascadia/WindowsTerminal/IslandWindow.cpp
+++ b/src/cascadia/WindowsTerminal/IslandWindow.cpp
@@ -1242,9 +1242,12 @@ void IslandWindow::_SetIsFullscreen(const bool fullscreenEnabled)
 // - <none>
 void IslandWindow::SummonWindow(winrt::TerminalApp::SummonWindowBehavior args)
 {
-    auto actualDropdownDuration = args.DropdownDuration();
+    const auto toggleVisibility = args ? args.ToggleVisibility() : false;
+    const auto toMonitor = args ? args.ToMonitor() : winrt::TerminalApp::MonitorBehavior::InPlace;
+    auto dropdownDuration = args ? args.DropdownDuration() : 0;
+
     // If the user requested an animation, let's check if animations are enabled in the OS.
-    if (actualDropdownDuration > 0)
+    if (dropdownDuration > 0)
     {
         auto animationsEnabled = TRUE;
         SystemParametersInfoW(SPI_GETCLIENTAREAANIMATION, 0, &animationsEnabled, 0);
@@ -1258,7 +1261,7 @@ void IslandWindow::SummonWindow(winrt::TerminalApp::SummonWindowBehavior args)
             // _globalActivateWindow/_globalDismissWindow might do if they think
             // there should be an animation (like making the window appear with
             // SetWindowPlacement rather than ShowWindow)
-            actualDropdownDuration = 0;
+            dropdownDuration = 0;
         }
     }
 
@@ -1269,33 +1272,33 @@ void IslandWindow::SummonWindow(winrt::TerminalApp::SummonWindowBehavior args)
     //      - activate the window
     //   - else
     //      - dismiss the window
-    if (args.ToggleVisibility() && GetForegroundWindow() == _window.get())
+    if (toggleVisibility && GetForegroundWindow() == _window.get())
     {
         auto handled = false;
 
         // They want to toggle the window when it is the FG window, and we are
         // the FG window. However, if we're on a different monitor than the
         // mouse, then we should move to that monitor instead of dismissing.
-        if (args.ToMonitor() == winrt::TerminalApp::MonitorBehavior::ToMouse)
+        if (toMonitor == winrt::TerminalApp::MonitorBehavior::ToMouse)
         {
             const til::rect cursorMonitorRect{ _getMonitorForCursor().rcMonitor };
             const til::rect currentMonitorRect{ _getMonitorForWindow(GetHandle()).rcMonitor };
             if (cursorMonitorRect != currentMonitorRect)
             {
                 // We're not on the same monitor as the mouse. Go to that monitor.
-                _globalActivateWindow(actualDropdownDuration, args.ToMonitor());
+                _globalActivateWindow(dropdownDuration, toMonitor);
                 handled = true;
             }
         }
 
         if (!handled)
         {
-            _globalDismissWindow(actualDropdownDuration);
+            _globalDismissWindow(dropdownDuration);
         }
     }
     else
     {
-        _globalActivateWindow(actualDropdownDuration, args.ToMonitor());
+        _globalActivateWindow(dropdownDuration, toMonitor);
     }
 }
 
diff --git a/src/cascadia/WindowsTerminal/WindowEmperor.cpp b/src/cascadia/WindowsTerminal/WindowEmperor.cpp
index 1a750af650..1bd15789ec 100644
--- a/src/cascadia/WindowsTerminal/WindowEmperor.cpp
+++ b/src/cascadia/WindowsTerminal/WindowEmperor.cpp
@@ -345,20 +345,31 @@ void WindowEmperor::HandleCommandlineArgs(int nCmdShow)
             for (const auto layout : layouts)
             {
                 hstring args[] = { L"wt", L"-w", L"new", L"-s", winrt::to_hstring(startIdx) };
-                _dispatchCommandline({ args, cwd, showCmd, env });
+                _dispatchCommandlineCommon(args, cwd, env, showCmd);
                 startIdx += 1;
             }
         }
 
-        // Create another window if needed: There aren't any yet, or we got an explicit command line.
         const auto args = commandlineToArgArray(GetCommandLineW());
-        if (_windows.empty() || args.size() != 1)
-        {
-            _dispatchCommandline({ args, cwd, showCmd, env });
-        }
 
-        // If we created no windows, e.g. because the args are "/?" we can just exit now.
-        _postQuitMessageIfNeeded();
+        if (args.size() == 2 && args[1] == L"-Embedding")
+        {
+            // We were launched for ConPTY handoff. We have no windows and also don't want to exit.
+            //
+            // TODO: Here we could start a timer and exit after, say, 5 seconds
+            // if no windows are created. But that's a minor concern.
+        }
+        else
+        {
+            // Create another window if needed: There aren't any yet, OR we got an explicit command line.
+            if (_windows.empty() || args.size() != 1)
+            {
+                _dispatchCommandlineCommon(args, cwd, env, showCmd);
+            }
+
+            // If we created no windows, e.g. because the args are "/?" we can just exit now.
+            _postQuitMessageIfNeeded();
+        }
     }
 
     // ALWAYS change the _real_ CWD of the Terminal to system32,
@@ -386,6 +397,19 @@ void WindowEmperor::HandleCommandlineArgs(int nCmdShow)
         }
     }
 
+    {
+        TerminalConnection::ConptyConnection::NewConnection([this](TerminalConnection::ConptyConnection conn) {
+            TerminalApp::CommandlineArgs args;
+            args.ShowWindowCommand(conn.ShowWindow());
+            args.Connection(std::move(conn));
+            _dispatchCommandline(std::move(args));
+            _summonWindow(SummonWindowSelectionArgs{
+                .SummonBehavior = nullptr,
+            });
+        });
+        TerminalConnection::ConptyConnection::StartInboundListener();
+    }
+
     // Main message loop. It pumps all windows.
     bool loggedInteraction = false;
     MSG msg{};
@@ -588,6 +612,16 @@ void WindowEmperor::_dispatchCommandline(winrt::TerminalApp::CommandlineArgs arg
     }
 }
 
+void WindowEmperor::_dispatchCommandlineCommon(winrt::array_view<const winrt::hstring> args, std::wstring_view currentDirectory, std::wstring_view envString, uint32_t showWindowCommand)
+{
+    winrt::TerminalApp::CommandlineArgs c;
+    c.Commandline(args);
+    c.CurrentDirectory(currentDirectory);
+    c.CurrentEnvironment(envString);
+    c.ShowWindowCommand(showWindowCommand);
+    _dispatchCommandline(std::move(c));
+}
+
 // This is an implementation-detail of _dispatchCommandline().
 safe_void_coroutine WindowEmperor::_dispatchCommandlineCurrentDesktop(winrt::TerminalApp::CommandlineArgs args)
 {
@@ -896,10 +930,8 @@ LRESULT WindowEmperor::_messageHandler(HWND window, UINT const message, WPARAM c
             {
                 const auto handoff = deserializeHandoffPayload(static_cast<const uint8_t*>(cds->lpData), static_cast<const uint8_t*>(cds->lpData) + cds->cbData);
                 const winrt::hstring args{ handoff.args };
-                const winrt::hstring env{ handoff.env };
-                const winrt::hstring cwd{ handoff.cwd };
                 const auto argv = commandlineToArgArray(args.c_str());
-                _dispatchCommandline({ argv, cwd, gsl::narrow_cast<uint32_t>(handoff.show), env });
+                _dispatchCommandlineCommon(argv, handoff.cwd, handoff.env, handoff.show);
             }
             return 0;
         case WM_HOTKEY:
@@ -1198,7 +1230,7 @@ void WindowEmperor::_hotkeyPressed(const long hotkeyIndex)
     const wil::unique_environstrings_ptr envMem{ GetEnvironmentStringsW() };
     const auto env = stringFromDoubleNullTerminated(envMem.get());
     const auto cwd = wil::GetCurrentDirectoryW<std::wstring>();
-    _dispatchCommandline({ argv, cwd, SW_SHOWDEFAULT, std::move(env) });
+    _dispatchCommandlineCommon(argv, cwd, env, SW_SHOWDEFAULT);
 }
 
 void WindowEmperor::_registerHotKey(const int index, const winrt::Microsoft::Terminal::Control::KeyChord& hotkey) noexcept
diff --git a/src/cascadia/WindowsTerminal/WindowEmperor.h b/src/cascadia/WindowsTerminal/WindowEmperor.h
index c84882665f..6995ab4c68 100644
--- a/src/cascadia/WindowsTerminal/WindowEmperor.h
+++ b/src/cascadia/WindowsTerminal/WindowEmperor.h
@@ -52,10 +52,10 @@ private:
     void _summonAllWindows() const;
     void _dispatchSpecialKey(const MSG& msg) const;
     void _dispatchCommandline(winrt::TerminalApp::CommandlineArgs args);
+    void _dispatchCommandlineCommon(winrt::array_view<const winrt::hstring> args, std::wstring_view currentDirectory, std::wstring_view envString, uint32_t showWindowCommand);
     safe_void_coroutine _dispatchCommandlineCurrentDesktop(winrt::TerminalApp::CommandlineArgs args);
     LRESULT _messageHandler(HWND window, UINT message, WPARAM wParam, LPARAM lParam) noexcept;
     void _createMessageWindow(const wchar_t* className);
-    bool _shouldSkipClosingWindows() const;
     void _postQuitMessageIfNeeded() const;
     safe_void_coroutine _showMessageBox(winrt::hstring message, bool error);
     void _notificationAreaMenuRequested(WPARAM wParam);
diff --git a/src/cascadia/WindowsTerminal/pch.h b/src/cascadia/WindowsTerminal/pch.h
index 583b67a0e4..87a0ade306 100644
--- a/src/cascadia/WindowsTerminal/pch.h
+++ b/src/cascadia/WindowsTerminal/pch.h
@@ -67,8 +67,9 @@ Abstract:
 #include <winrt/Windows.UI.Composition.h>
 
 #include <winrt/TerminalApp.h>
-#include <winrt/Microsoft.Terminal.Settings.Model.h>
 #include <winrt/Microsoft.Terminal.Control.h>
+#include <winrt/Microsoft.Terminal.Settings.Model.h>
+#include <winrt/Microsoft.Terminal.TerminalConnection.h>
 #include <winrt/Microsoft.Terminal.UI.h>
 
 #include <wil/cppwinrt.h>