diff --git a/src/cascadia/TerminalApp/CommandPalette.cpp b/src/cascadia/TerminalApp/CommandPalette.cpp
index d1886a40a022..946c3a1998ea 100644
--- a/src/cascadia/TerminalApp/CommandPalette.cpp
+++ b/src/cascadia/TerminalApp/CommandPalette.cpp
@@ -6,6 +6,7 @@
 #include "TabPaletteItem.h"
 #include "CommandLinePaletteItem.h"
 #include "CommandPalette.h"
+#include "AppLogic.h"
 
 #include <LibraryResources.h>
 
@@ -281,7 +282,8 @@ namespace winrt::TerminalApp::implementation
     // Method Description:
     // - Process keystrokes in the input box. This is used for moving focus up
     //   and down the list of commands in Action mode, and for executing
-    //   commands in both Action mode and Commandline mode.
+    //   commands in both Action mode and Commandline mode. This would also
+    //   enable users to perform action using shortcuts when command palette is open.
     // Arguments:
     // - e: the KeyRoutedEventArgs containing info about the keystroke.
     // Return Value:
@@ -291,8 +293,24 @@ namespace winrt::TerminalApp::implementation
     {
         auto key = e.OriginalKey();
         auto const ctrlDown = WI_IsFlagSet(CoreWindow::GetForCurrentThread().GetKeyState(winrt::Windows::System::VirtualKey::Control), CoreVirtualKeyStates::Down);
+        auto const altDown = WI_IsFlagSet(CoreWindow::GetForCurrentThread().GetKeyState(winrt::Windows::System::VirtualKey::Menu), CoreVirtualKeyStates::Down);
+        auto const shiftDown = WI_IsFlagSet(CoreWindow::GetForCurrentThread().GetKeyState(winrt::Windows::System::VirtualKey::Shift), CoreVirtualKeyStates::Down);
+
+        winrt::Microsoft::Terminal::TerminalControl::KeyChord kc{ ctrlDown, altDown, shiftDown, static_cast<int32_t>(key) };
+        auto setting = AppLogic::CurrentAppSettings();
+        auto keymap = setting.GlobalSettings().KeyMap();
+        const auto action = keymap.TryLookup(kc);
 
-        if (key == VirtualKey::Up)
+        if (action)
+        {
+            if (action.Action() != ShortcutAction::ToggleCommandPalette)
+            {
+                _close();
+            }
+            _dispatch.DoAction(action);
+            e.Handled(true);
+        }
+        else if (key == VirtualKey::Up)
         {
             // Action Mode: Move focus to the next item in the list.
             SelectNextItem(false);
@@ -357,10 +375,6 @@ namespace winrt::TerminalApp::implementation
             // In the interest of not telling all modes to check for keybindings, limit to TabSwitch mode for now.
             if (_currentMode == CommandPaletteMode::TabSwitchMode)
             {
-                auto const ctrlDown = WI_IsFlagSet(CoreWindow::GetForCurrentThread().GetKeyState(winrt::Windows::System::VirtualKey::Control), CoreVirtualKeyStates::Down);
-                auto const altDown = WI_IsFlagSet(CoreWindow::GetForCurrentThread().GetKeyState(winrt::Windows::System::VirtualKey::Menu), CoreVirtualKeyStates::Down);
-                auto const shiftDown = WI_IsFlagSet(CoreWindow::GetForCurrentThread().GetKeyState(winrt::Windows::System::VirtualKey::Shift), CoreVirtualKeyStates::Down);
-
                 auto success = _bindings.TryKeyChord({
                     ctrlDown,
                     altDown,