diff --git a/src/modules/fancyzones/lib/Settings.h b/src/modules/fancyzones/lib/Settings.h
index ef085e1221..da0026f137 100644
--- a/src/modules/fancyzones/lib/Settings.h
+++ b/src/modules/fancyzones/lib/Settings.h
@@ -20,7 +20,8 @@ struct Settings
         Smallest = 0,
         Largest = 1,
         Positional = 2,
-        EnumElements = 3, // number of elements in the enum, not counting this
+        ClosestCenter = 3,
+        EnumElements = 4, // number of elements in the enum, not counting this
     };
 
     // The values specified here are the defaults.
diff --git a/src/modules/fancyzones/lib/ZoneSet.cpp b/src/modules/fancyzones/lib/ZoneSet.cpp
index 1f4dd7376a..324d6a5807 100644
--- a/src/modules/fancyzones/lib/ZoneSet.cpp
+++ b/src/modules/fancyzones/lib/ZoneSet.cpp
@@ -20,6 +20,7 @@ using namespace FancyZonesUtils;
 namespace
 {
     constexpr int C_MULTIPLIER = 10000;
+    constexpr int OVERLAPPING_CENTERS_SENSITIVITY = 75;
 
     // PriorityGrid layout is unique for zoneCount <= 11. For zoneCount > 11 PriorityGrid is same as Grid
     FancyZonesDataTypes::GridLayoutInfo predefinedPriorityGridLayouts[11] = {
@@ -255,6 +256,28 @@ ZoneSet::ZonesFromPoint(POINT pt) const noexcept
             return max(rect.bottom - rect.top, 0) * max(rect.right - rect.left, 0);
         };
 
+        auto getCenter = [](auto zone) {
+            RECT rect = zone->GetZoneRect();
+            return POINT{ (rect.right + rect.left) / 2, (rect.top + rect.bottom) / 2 };
+        };
+        auto pointDifference = [](POINT pt1, POINT pt2) {
+            return (pt1.x - pt2.x) * (pt1.x - pt2.x) + (pt1.y - pt2.y) * (pt1.y - pt2.y);
+        };
+        auto distanceFromCenter = [&](auto zone) {
+            POINT center = getCenter(zone);
+            return pointDifference(center, pt);
+        };
+        auto closerToCenter = [&](auto zone1, auto zone2) {
+            if (pointDifference(getCenter(zone1), getCenter(zone2)) > OVERLAPPING_CENTERS_SENSITIVITY)
+            {
+                return distanceFromCenter(zone1) < distanceFromCenter(zone2);
+            }
+            else
+            {
+                return zoneArea(zone1) < zoneArea(zone2);
+            };
+        };
+       
         try
         {
             using Algorithm = Settings::OverlappingZonesAlgorithm;
@@ -267,6 +290,8 @@ ZoneSet::ZonesFromPoint(POINT pt) const noexcept
                 return ZoneSelectPriority(capturedZones, [&](auto zone1, auto zone2) { return zoneArea(zone1) > zoneArea(zone2); });
             case Algorithm::Positional:
                 return ZoneSelectSubregion(capturedZones, pt);
+            case Algorithm::ClosestCenter:
+                return ZoneSelectPriority(capturedZones, closerToCenter);
             }
         }
         catch (std::out_of_range)
diff --git a/src/settings-ui/Microsoft.PowerToys.Settings.UI/Strings/en-us/Resources.resw b/src/settings-ui/Microsoft.PowerToys.Settings.UI/Strings/en-us/Resources.resw
index 8a6757843a..a021a1bd6a 100644
--- a/src/settings-ui/Microsoft.PowerToys.Settings.UI/Strings/en-us/Resources.resw
+++ b/src/settings-ui/Microsoft.PowerToys.Settings.UI/Strings/en-us/Resources.resw
@@ -957,6 +957,9 @@
   <data name="ColorPicker_Editor.Text" xml:space="preserve">
     <value>Editor</value>
   </data>
+  <data name="FancyZones_OverlappingZonesClosestCenter.Content" xml:space="preserve">
+    <value>Activate the zone whose center is closest to the cursor</value>
+  </data>
   <data name="FancyZones_OverlappingZonesLargest.Content" xml:space="preserve">
     <value>Activate the largest zone by area</value>
   </data>
diff --git a/src/settings-ui/Microsoft.PowerToys.Settings.UI/Views/FancyZonesPage.xaml b/src/settings-ui/Microsoft.PowerToys.Settings.UI/Views/FancyZonesPage.xaml
index a72cec9508..a42baf17c5 100644
--- a/src/settings-ui/Microsoft.PowerToys.Settings.UI/Views/FancyZonesPage.xaml
+++ b/src/settings-ui/Microsoft.PowerToys.Settings.UI/Views/FancyZonesPage.xaml
@@ -134,6 +134,7 @@
                 <ComboBoxItem x:Uid="FancyZones_OverlappingZonesSmallest" />
                 <ComboBoxItem x:Uid="FancyZones_OverlappingZonesLargest" />
                 <ComboBoxItem x:Uid="FancyZones_OverlappingZonesPositional" />
+                <ComboBoxItem x:Uid="FancyZones_OverlappingZonesClosestCenter" />
             </ComboBox>
 
             <TextBlock x:Uid="FancyZones_WindowBehavior_GroupSettings"