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Following these instructions you can make iTerm act as a drop down terminal that shows and hides with a hotkey combination. The issue with this for me is that if I how iTerm and then click some other app, iTerm will be left in the background open.

Is there some way to make it so that iTerm in this mode auto hides when focus is lost?

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There is a setting in the Hotkey Window preferences, "Pin hotkey window ..." that needs to be unchecked to hide the window on loss of focus.

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Open the iTerm settings, select the Keys section, then the Hotkey tab, and click the "Create a Dedicated Hotkey Window" button. If prompted, click the "Configure Existing Profile" button. This will bring up the preferences shown in the screenshot above.

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  • This works, but now I have two windows open at all times. Do you know how to hide the other window that is not the window we just configued?
    – EmilioAK
    Commented Oct 5, 2023 at 9:05
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    I found an answer! If you go to General -> Startup -> Only Restore Hotkey Window the issue is resolved! Screenshot
    – EmilioAK
    Commented Oct 5, 2023 at 9:16

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