diff --git a/src/DockAreaWidget.cpp b/src/DockAreaWidget.cpp
index 2112192..fc47706 100644
--- a/src/DockAreaWidget.cpp
+++ b/src/DockAreaWidget.cpp
@@ -1079,12 +1079,10 @@ void CDockAreaWidget::onAutoHideToggleRequested(CDockWidget* DockWidget, bool En
     if (Enable)
     {
         dockContainer()->createAndInitializeDockWidgetOverlayContainer(area, DockWidget);
-        DockWidget->toggleView(false);
     }
     else
 	{
         overlayDockContainer()->moveContentsToParent();
-		DockWidget->toggleView(true);
 	}
 }
 
diff --git a/src/DockContainerWidget.cpp b/src/DockContainerWidget.cpp
index a6287dd..fb72c92 100644
--- a/src/DockContainerWidget.cpp
+++ b/src/DockContainerWidget.cpp
@@ -1074,6 +1074,12 @@ bool DockContainerWidgetPrivate::restoreOverlayDockArea(CDockingStateReader& s,
 			return false;
 		}
 
+		bool Closed = s.attributes().value("Closed").toInt(&Ok);
+		if (!Ok)
+		{
+			return false;
+		}
+
 		s.skipCurrentElement();
 		CDockWidget* DockWidget = DockManager->findDockWidget(ObjectName.toString());
 		if (!DockWidget || Testing)
@@ -1085,15 +1091,14 @@ bool DockContainerWidgetPrivate::restoreOverlayDockArea(CDockingStateReader& s,
 		// We hide the DockArea here to prevent the short display (the flashing)
 		// of the dock areas during application startup
 		DockArea->hide();
-		DockWidget->setToggleViewActionChecked(false);
-		DockWidget->setClosedState(true);
-		DockWidget->setProperty(internal::ClosedProperty, true);
+		DockWidget->setToggleViewActionChecked(!Closed);
+		DockWidget->setClosedState(Closed);
+		DockWidget->setProperty(internal::ClosedProperty, Closed);
 		DockWidget->setProperty(internal::DirtyProperty, false);
         _this->sideTabBar(area)->insertSideTab(0, DockWidget->sideTabWidget());
-        DockWidget->toggleView(false);
         DockArea->overlayDockContainer()->addDockWidget(DockWidget);
-        DockWidget->sideTabWidget()->show();
         DockWidget->sideTabWidget()->updateStyle(); // Needed as the side tab widget get it's left/right property from the overlay dock container which was just added
+        DockWidget->toggleView(Closed);
 	}
 
 	if (Testing)
diff --git a/src/DockContainerWidget.h b/src/DockContainerWidget.h
index 5588f65..ea3d55a 100644
--- a/src/DockContainerWidget.h
+++ b/src/DockContainerWidget.h
@@ -90,11 +90,6 @@ protected:
 	 */
 	void deleteOverlayWidgets();
 
-	/**
-	 * Access function for overlay widgets
-	 */
-	QList<COverlayDockContainer*> overlayWidgets() const;
-
 	/**
 	 * Access function for the internal root splitter
 	 */
@@ -329,6 +324,12 @@ public:
 	 */
 	CSideTabBar* sideTabBar(CDockWidgetSideTab::SideTabBarArea area) const;
 
+
+	/**
+	 * Access function for overlay widgets
+	 */
+	QList<COverlayDockContainer*> overlayWidgets() const;
+
 Q_SIGNALS:
 	/**
 	 * This signal is emitted if one or multiple dock areas has been added to
diff --git a/src/DockFocusController.cpp b/src/DockFocusController.cpp
index f1226b2..d467bdb 100644
--- a/src/DockFocusController.cpp
+++ b/src/DockFocusController.cpp
@@ -191,7 +191,7 @@ void DockFocusControllerPrivate::updateDockWidgetFocus(CDockWidget* DockWidget)
 
 	if (old && old->overlayDockContainer() && old->overlayDockContainer()->isVisible() && old != FocusedDockWidget)
 	{
-		old->toggleView(false);
+		old->overlayDockContainer()->collapseView(true);
 	}
 
     if (old == DockWidget && !ForceFocusChangedSignal)
diff --git a/src/DockManager.cpp b/src/DockManager.cpp
index 6708552..0a3442e 100644
--- a/src/DockManager.cpp
+++ b/src/DockManager.cpp
@@ -873,8 +873,7 @@ COverlayDockContainer* CDockManager::addOverlayDockWidgetToContainer(CDockWidget
 {
 	d->DockWidgetsMap.insert(Dockwidget->objectName(), Dockwidget);
 	auto container = DockContainerWidget->createAndInitializeDockWidgetOverlayContainer(area, Dockwidget);
-	container->dockAreaWidget()->toggleView(false);
-	Dockwidget->toggleView(false);
+	container->collapseView(true);
 
 	Q_EMIT dockWidgetAdded(Dockwidget);
 	return container;
diff --git a/src/DockWidget.cpp b/src/DockWidget.cpp
index f8b1cf1..ecc2662 100644
--- a/src/DockWidget.cpp
+++ b/src/DockWidget.cpp
@@ -118,6 +118,12 @@ struct DockWidgetPrivate
 	 */
 	void updateParentDockArea();
 
+	/**
+	 * Closes all overlayed dock widgets if there are no more opened dock areas
+	 * This prevents the overlayed dock widgets from being pinned to an empty dock area
+	 */
+	void closeOverlayDockWidgetsIfNeeded();
+
 	/**
 	 * Setup the top tool bar
 	 */
@@ -187,9 +193,10 @@ void DockWidgetPrivate::showDockWidget()
 			FloatingWidget->show();
 		}
 
-		if (DockArea->isOverlayed())
+        // If this widget is pinned and there are no opened dock widgets, unpin the overlay widget by moving it's contents to parent container
+		if (Container->openedDockWidgets().count() == 0 && DockArea->isOverlayed())
 		{
-			DockArea->overlayDockContainer()->show();
+			DockArea->overlayDockContainer()->moveContentsToParent();
 		}
 	}
 }
@@ -200,17 +207,14 @@ void DockWidgetPrivate::hideDockWidget()
 {
 	TabWidget->hide();
 	updateParentDockArea();
-	
+
+	closeOverlayDockWidgetsIfNeeded();
+
 	if (Features.testFlag(CDockWidget::DeleteContentOnClose))
 	{
 		Widget->deleteLater();
 		Widget = nullptr;
 	}
-
-	if (DockArea->isOverlayed())
-	{
-		DockArea->overlayDockContainer()->hide();
-	}
 }
 
 
@@ -239,6 +243,22 @@ void DockWidgetPrivate::updateParentDockArea()
 	}
 }
 
+void DockWidgetPrivate::closeOverlayDockWidgetsIfNeeded()
+{
+	if (_this->dockContainer() && _this->dockContainer()->openedDockWidgets().isEmpty())
+	{
+        for (auto overlayWidget : _this->dockContainer()->overlayWidgets())
+        {
+            if (overlayWidget->dockWidget() == _this)
+            {
+                continue;
+            }
+
+            overlayWidget->dockWidget()->toggleView(false);
+        }
+	}
+}
+
 
 //============================================================================
 void DockWidgetPrivate::setupToolBar()
@@ -611,6 +631,8 @@ void CDockWidget::toggleViewInternal(bool Open)
 	CDockWidget* TopLevelDockWidgetBefore = DockContainer
 		? DockContainer->topLevelDockWidget() : nullptr;
 
+	d->Closed = !Open;
+
 	if (Open)
 	{
 		d->showDockWidget();
@@ -619,7 +641,7 @@ void CDockWidget::toggleViewInternal(bool Open)
 	{
 		d->hideDockWidget();
 	}
-	d->Closed = !Open;
+
 	d->ToggleViewAction->blockSignals(true);
 	d->ToggleViewAction->setChecked(Open);
 	d->ToggleViewAction->blockSignals(false);
@@ -628,6 +650,11 @@ void CDockWidget::toggleViewInternal(bool Open)
 		d->DockArea->toggleDockWidgetView(this, Open);
 	}
 
+	if (d->DockArea->isOverlayed())
+	{
+		d->DockArea->overlayDockContainer()->toggleView(Open);
+	}
+
 	if (Open && TopLevelDockWidgetBefore)
 	{
 		CDockWidget::emitTopLevelEventForWidget(TopLevelDockWidgetBefore, false);
@@ -1051,9 +1078,8 @@ void CDockWidget::onDockWidgetSideTabClicked()
 	}
 
 	overlayContainer->raise();
-	const auto show = !overlayContainer->isVisible();
-	overlayContainer->setVisible(show);
-	toggleView(show);
+	const auto shouldCollapse = overlayContainer->isVisible();
+	overlayContainer->collapseView(shouldCollapse);
 	if (overlayContainer->isVisible())
 	{
 		// d->DockManager->setDockWidgetFocused(this) does not
diff --git a/src/OverlayDockContainer.cpp b/src/OverlayDockContainer.cpp
index d50b010..28be352 100644
--- a/src/OverlayDockContainer.cpp
+++ b/src/OverlayDockContainer.cpp
@@ -281,6 +281,43 @@ bool COverlayDockContainer::restoreState(CDockingStateReader& s, bool Testing)
 	return true;
 }
 
+void COverlayDockContainer::toggleView(bool Enable)
+{
+	if (Enable)
+	{
+        const auto dockWidget = d->DockWidget;
+        if (dockWidget)
+        {
+            dockWidget->sideTabWidget()->show();
+        }
+	}
+	else
+	{
+        const auto dockWidget = d->DockWidget;
+        if (dockWidget)
+        {
+            dockWidget->sideTabWidget()->hide();
+        }
+        hide();
+	}
+}
+
+void COverlayDockContainer::collapseView(bool Enable)
+{
+	if (Enable)
+	{
+		hide();
+		d->DockArea->hide();
+		d->DockWidget->hide();
+	}
+	else
+	{
+		show();
+		d->DockArea->show();
+		d->DockWidget->show();
+	}
+}
+
 
 //============================================================================
 bool COverlayDockContainer::areaExistsInConfig(CDockWidgetSideTab::SideTabBarArea area)
diff --git a/src/OverlayDockContainer.h b/src/OverlayDockContainer.h
index 4a53172..a0c8ab3 100644
--- a/src/OverlayDockContainer.h
+++ b/src/OverlayDockContainer.h
@@ -126,6 +126,18 @@ public:
 	 */
 	bool restoreState(CDockingStateReader& Stream, bool Testing);
 
+	/*
+	 * Toggles the overlay dock container widget
+	 * This will also hide the side tab widget
+	 */
+	void toggleView(bool Enable);
+
+	/*
+	 * Collapses the overlay dock container widget
+	 * Does not hide the side tab widget
+	 */
+	void collapseView(bool Enable);
+
 	/*
 	 * Convenience function fr determining if area exists in config
 	 */