diff --git a/Packages/com.unity.inputsystem/CHANGELOG.md b/Packages/com.unity.inputsystem/CHANGELOG.md
index 71a26a51d7..c15fc036df 100644
--- a/Packages/com.unity.inputsystem/CHANGELOG.md
+++ b/Packages/com.unity.inputsystem/CHANGELOG.md
@@ -11,6 +11,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 
 - Improved New Input System warning dialog, Native Device Inputs Not Enabled [UUM-132151].
 - Fixed caching for InputControlPath display name [ISX-2501](https://jira.unity3d.com/browse/ISX-2501)
+- Fixed editor closing and not saving the input asset when clicking cancel in the dialog prompt [UUM-134748](https://jira.unity3d.com/browse/UUM-134748)
 
 ### Changed
 
diff --git a/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs b/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs
index 9a6ec57263..1dfd324660 100644
--- a/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs
@@ -24,6 +24,7 @@ static InputActionsEditorWindow()
 
         private string m_AssetJson;
         private bool m_IsDirty;
+        private bool m_IsEditorQuitting;
 
         private StateContainer m_StateContainer;
         private InputActionsEditorView m_View;
@@ -316,11 +317,21 @@ private void DirtyInputActionsEditorWindow(InputActionsEditorState newState)
         private void OnEnable()
         {
             analytics.Begin();
+            EditorApplication.wantsToQuit += OnWantsToQuit;
         }
 
         private void OnDisable()
         {
             analytics.End();
+            EditorApplication.wantsToQuit -= OnWantsToQuit;
+        }
+
+        private bool OnWantsToQuit()
+        {
+            // Here the user will be prompted
+            bool isAllowedToQuit = HandleOnDestroyIfApplicationIsAllowedToQuit(false);
+            m_IsEditorQuitting = isAllowedToQuit;
+            return m_IsEditorQuitting;
         }
 
         private void OnFocus()
@@ -345,39 +356,52 @@ private void OnLostFocus()
             analytics.RegisterEditorFocusOut();
         }
 
-        private void HandleOnDestroy()
+        /// <summary>
+        /// Shows a dialog when trying to close an input asset without saving changes.
+        /// </summary>
+        /// <returns> Returns true if you should allow the Unity Editor to close. </returns>
+        private bool HandleOnDestroyIfApplicationIsAllowedToQuit(bool rebuildUIOnCancel)
         {
             // Do we have unsaved changes that we need to ask the user to save or discard?
             if (!m_IsDirty)
-                return;
+                return true;
 
             // Get target asset path from GUID, if this fails file no longer exists and we need to abort.
             var assetPath = AssetDatabase.GUIDToAssetPath(m_AssetGUID);
             if (string.IsNullOrEmpty(assetPath))
-                return;
+                return true;
 
-            // Prompt user with a dialog
-            var result = Dialog.InputActionAsset.ShowSaveChanges(assetPath);
-            switch (result)
+            if (!m_IsEditorQuitting)
             {
-                case Dialog.Result.Save:
-                    Save(isAutoSave: false);
-                    break;
-                case Dialog.Result.Cancel:
-                    // Cancel editor quit. (open new editor window with the edited asset)
-                    ReshowEditorWindowWithUnsavedChanges();
-                    break;
-                case Dialog.Result.Discard:
-                    // Don't save, quit - reload the old asset from the json to prevent the asset from being dirtied
-                    break;
-                default:
-                    throw new ArgumentOutOfRangeException(nameof(result));
+                // Prompt user with a dialog
+                var result = Dialog.InputActionAsset.ShowSaveChanges(assetPath);
+                switch (result)
+                {
+                    case Dialog.Result.Save:
+                        Save(isAutoSave: false);
+                        return true;
+                    case Dialog.Result.Cancel:
+                        if (rebuildUIOnCancel)
+                        {
+                            // Cancel editor quit. (open new editor window with the edited asset)
+                            ReshowEditorWindowWithUnsavedChanges();
+                        }
+
+                        return false;
+                    case Dialog.Result.Discard:
+                        // Don't save, quit - reload the old asset from the json to prevent the asset from being dirtied
+                        return true;
+                    default:
+                        throw new ArgumentOutOfRangeException(nameof(result));
+                }
             }
+
+            return true;
         }
 
         private void OnDestroy()
         {
-            HandleOnDestroy();
+            HandleOnDestroyIfApplicationIsAllowedToQuit(true);
 
             // Clean-up
             CleanupStateContainer();