diff --git a/packages/sdk-install-modal-web/src/components.d.ts b/packages/sdk-install-modal-web/src/components.d.ts
index fa7cade6e..366d2ec8a 100644
--- a/packages/sdk-install-modal-web/src/components.d.ts
+++ b/packages/sdk-install-modal-web/src/components.d.ts
@@ -47,7 +47,7 @@ export interface MmSelectModalCustomEvent<T> extends CustomEvent<T> {
 }
 declare global {
     interface HTMLMmInstallModalElementEventMap {
-        "close": any;
+        "close": { shouldTerminate?: boolean };
         "startDesktopOnboarding": any;
         "trackAnalytics": { event: TrackingEvents, params?: Record<string, unknown> };
     }
@@ -114,7 +114,7 @@ declare namespace LocalJSX {
           * The QR code link
          */
         "link"?: string;
-        "onClose"?: (event: MmInstallModalCustomEvent<any>) => void;
+        "onClose"?: (event: MmInstallModalCustomEvent<{ shouldTerminate?: boolean }>) => void;
         "onStartDesktopOnboarding"?: (event: MmInstallModalCustomEvent<any>) => void;
         "onTrackAnalytics"?: (event: MmInstallModalCustomEvent<{ event: TrackingEvents, params?: Record<string, unknown> }>) => void;
         "preferDesktop"?: boolean;
diff --git a/packages/sdk-install-modal-web/src/components/mm-install-modal/mm-install-modal.tsx b/packages/sdk-install-modal-web/src/components/mm-install-modal/mm-install-modal.tsx
index 5e0b3c88c..ce6339feb 100644
--- a/packages/sdk-install-modal-web/src/components/mm-install-modal/mm-install-modal.tsx
+++ b/packages/sdk-install-modal-web/src/components/mm-install-modal/mm-install-modal.tsx
@@ -29,7 +29,7 @@ export class InstallModal {
 
   private i18nInstance: SimpleI18n;
 
-  @Event() close: EventEmitter;
+  @Event() close: EventEmitter<{ shouldTerminate?: boolean }>;
 
   @Event() startDesktopOnboarding: EventEmitter;
 
@@ -79,8 +79,8 @@ export class InstallModal {
     }
   }
 
-  onClose() {
-    this.close.emit();
+  onClose(shouldTerminate = false) {
+    this.close.emit({ shouldTerminate });
   }
 
   onStartDesktopOnboardingHandler() {
@@ -123,11 +123,11 @@ export class InstallModal {
 
     return (
       <WidgetWrapper className="install-model">
-        <div class='backdrop' onClick={() => this.onClose()}></div>
+        <div class='backdrop' onClick={() => this.onClose(true)}></div>
         <div class='modal'>
           <div class='closeButtonContainer'>
             <div class='right'>
-              <span class='closeButton' onClick={() => this.onClose()}>
+              <span class='closeButton' onClick={() => this.onClose(true)}>
                 <CloseButton />
               </span>
             </div>
diff --git a/packages/sdk/src/ui/InstallModal/Modal-web.ts b/packages/sdk/src/ui/InstallModal/Modal-web.ts
index 7eae806bd..3675a4b86 100644
--- a/packages/sdk/src/ui/InstallModal/Modal-web.ts
+++ b/packages/sdk/src/ui/InstallModal/Modal-web.ts
@@ -3,7 +3,7 @@ import type { Components } from '@metamask/sdk-install-modal-web';
 
 export interface InstallWidgetProps extends Components.MmInstallModal {
   parentElement: Element;
-  onClose: () => void;
+  onClose: (shouldTerminate?: boolean) => void;
   metaMaskInstaller: {
     startDesktopOnboarding: () => void;
   };
@@ -80,7 +80,10 @@ export default class ModalLoader {
     modal.link = props.link;
     modal.preferDesktop = props.preferDesktop;
     modal.sdkVersion = props.sdkVersion ?? this.sdkVersion;
-    modal.addEventListener('close', props.onClose);
+    modal.addEventListener('close', ({ detail: { shouldTerminate } }) =>
+      props.onClose(shouldTerminate),
+    );
+
     modal.addEventListener(
       'startDesktopOnboarding',
       props.metaMaskInstaller.startDesktopOnboarding,