diff --git a/app/src/main/java/org/mozilla/fenix/search/SearchDialogController.kt b/app/src/main/java/org/mozilla/fenix/search/SearchDialogController.kt
index 7635618863..1164a3d506 100644
--- a/app/src/main/java/org/mozilla/fenix/search/SearchDialogController.kt
+++ b/app/src/main/java/org/mozilla/fenix/search/SearchDialogController.kt
@@ -72,6 +72,7 @@ class SearchDialogController(
     private val clearToolbarFocus: () -> Unit,
     private val focusToolbar: () -> Unit,
     private val clearToolbar: () -> Unit,
+    private val dismissDialogAndGoBack: () -> Unit,
 ) : SearchController {
 
     override fun handleUrlCommitted(url: String, fromHomeScreen: Boolean) {
@@ -135,6 +136,7 @@ class SearchDialogController(
 
     override fun handleEditingCancelled() {
         clearToolbarFocus()
+        dismissDialogAndGoBack()
     }
 
     override fun handleTextChanged(text: String) {
diff --git a/app/src/main/java/org/mozilla/fenix/search/SearchDialogFragment.kt b/app/src/main/java/org/mozilla/fenix/search/SearchDialogFragment.kt
index 658496155c..f2f8fc7f04 100644
--- a/app/src/main/java/org/mozilla/fenix/search/SearchDialogFragment.kt
+++ b/app/src/main/java/org/mozilla/fenix/search/SearchDialogFragment.kt
@@ -212,6 +212,7 @@ class SearchDialogFragment : AppCompatDialogFragment(), UserInteractionHandler {
                 clearToolbar = {
                     inlineAutocompleteEditText.setText("")
                 },
+                dismissDialogAndGoBack = ::dismissDialogAndGoBack,
             ),
         )
 
@@ -636,24 +637,29 @@ class SearchDialogFragment : AppCompatDialogFragment(), UserInteractionHandler {
                 true
             }
             else -> {
-                // In case we're displaying search results, we wouldn't have navigated to home, and
-                // so we don't need to navigate "back to" browser fragment.
-                // See mirror of this logic in BrowserToolbarController#handleToolbarClick.
-                if (store.state.searchTerms.isBlank()) {
-                    val args by navArgs<SearchDialogFragmentArgs>()
-                    args.sessionId?.let {
-                        findNavController().navigate(
-                            SearchDialogFragmentDirections.actionGlobalBrowser(null),
-                        )
-                    }
-                }
-                view?.hideKeyboard()
-                dismissAllowingStateLoss()
+                dismissDialogAndGoBack()
                 true
             }
         }
     }
 
+    private fun dismissDialogAndGoBack() {
+        // In case we're displaying search results, we wouldn't have navigated to home, and
+        // so we don't need to navigate "back to" browser fragment.
+        // See mirror of this logic in BrowserToolbarController#handleToolbarClick.
+        if (store.state.searchTerms.isBlank()) {
+            val args by navArgs<SearchDialogFragmentArgs>()
+            args.sessionId?.let {
+                findNavController().navigate(
+                    SearchDialogFragmentDirections.actionGlobalBrowser(null),
+                )
+            }
+        }
+
+        view?.hideKeyboard()
+        dismissAllowingStateLoss()
+    }
+
     private fun historyStorageProvider(): HistoryStorage? {
         return if (requireContext().settings().shouldShowHistorySuggestions) {
             requireComponents.core.historyStorage
diff --git a/app/src/test/java/org/mozilla/fenix/search/SearchDialogControllerTest.kt b/app/src/test/java/org/mozilla/fenix/search/SearchDialogControllerTest.kt
index 76f99f64dc..e31b2d1d66 100644
--- a/app/src/test/java/org/mozilla/fenix/search/SearchDialogControllerTest.kt
+++ b/app/src/test/java/org/mozilla/fenix/search/SearchDialogControllerTest.kt
@@ -223,13 +223,18 @@ class SearchDialogControllerTest {
     @Test
     fun handleEditingCancelled() = runTest {
         var clearToolbarFocusInvoked = false
+        var dismissAndGoBack = false
         createController(
             clearToolbarFocus = {
                 clearToolbarFocusInvoked = true
             },
+            dismissDialogAndGoBack = {
+                dismissAndGoBack = true
+            },
         ).handleEditingCancelled()
 
         assertTrue(clearToolbarFocusInvoked)
+        assertTrue(dismissAndGoBack)
     }
 
     @Test
@@ -552,6 +557,7 @@ class SearchDialogControllerTest {
         focusToolbar: () -> Unit = { },
         clearToolbar: () -> Unit = { },
         dismissDialog: () -> Unit = { },
+        dismissDialogAndGoBack: () -> Unit = { },
     ): SearchDialogController {
         return SearchDialogController(
             activity = activity,
@@ -564,6 +570,7 @@ class SearchDialogControllerTest {
             clearToolbarFocus = clearToolbarFocus,
             focusToolbar = focusToolbar,
             clearToolbar = clearToolbar,
+            dismissDialogAndGoBack = dismissDialogAndGoBack,
         )
     }
 }