diff --git a/docs/changelog.md b/docs/changelog.md
index 523c8f60c..407ed8edd 100644
--- a/docs/changelog.md
+++ b/docs/changelog.md
@@ -59,6 +59,8 @@ As features stabilize some brief notes about them will accumulate here.
 * Cells with the invisible/hidden attribute are now invisible
 * Panic when trying to activate the search overlay when the launcher menu is
   active [#2529](https://github.com/wez/wezterm/issues/2529)
+* Overlays did not see config overrides set via `window:set_config_overrides`
+  [#2544](https://github.com/wez/wezterm/issues/2544)
 
 #### Changed
 * Removed Last Resort fallback font
diff --git a/mux/src/connui.rs b/mux/src/connui.rs
index 7a0a651ea..b1b721efb 100644
--- a/mux/src/connui.rs
+++ b/mux/src/connui.rs
@@ -273,6 +273,7 @@ impl ConnectionUI {
                 }
                 Ok(())
             },
+            None,
         ))
         .detach();
         Self { tx }
diff --git a/mux/src/termwiztermtab.rs b/mux/src/termwiztermtab.rs
index 47b91d70c..32ac5659d 100644
--- a/mux/src/termwiztermtab.rs
+++ b/mux/src/termwiztermtab.rs
@@ -97,12 +97,13 @@ impl TermWizTerminalPane {
         size: TerminalSize,
         input_tx: Sender<InputEvent>,
         render_rx: FileDescriptor,
+        term_config: Option<Arc<dyn TerminalConfiguration + Send + Sync>>,
     ) -> Self {
         let pane_id = alloc_pane_id();
 
         let terminal = RefCell::new(wezterm_term::Terminal::new(
             size,
-            std::sync::Arc::new(config::TermConfig::new()),
+            term_config.unwrap_or_else(|| Arc::new(config::TermConfig::new())),
             "WezTerm",
             config::wezterm_version(),
             Box::new(Vec::new()), // FIXME: connect to something?
@@ -431,7 +432,10 @@ impl termwiz::terminal::Terminal for TermWizTerminal {
     }
 }
 
-pub fn allocate(size: TerminalSize) -> (TermWizTerminal, Rc<dyn Pane>) {
+pub fn allocate(
+    size: TerminalSize,
+    config: Arc<dyn TerminalConfiguration + Send + Sync>,
+) -> (TermWizTerminal, Rc<dyn Pane>) {
     let render_pipe = Pipe::new().expect("Pipe creation not to fail");
 
     let (input_tx, input_rx) = channel();
@@ -454,7 +458,7 @@ pub fn allocate(size: TerminalSize) -> (TermWizTerminal, Rc<dyn Pane>) {
     };
 
     let domain_id = 0;
-    let pane = TermWizTerminalPane::new(domain_id, size, input_tx, render_pipe.read);
+    let pane = TermWizTerminalPane::new(domain_id, size, input_tx, render_pipe.read, Some(config));
 
     // Add the tab to the mux so that the output is processed
     let pane: Rc<dyn Pane> = Rc::new(pane);
@@ -478,6 +482,7 @@ pub async fn run<
     size: TerminalSize,
     window_id: Option<WindowId>,
     f: F,
+    term_config: Option<Arc<dyn TerminalConfiguration + Send + Sync>>,
 ) -> anyhow::Result<T> {
     let render_pipe = Pipe::new().expect("Pipe creation not to fail");
     let render_rx = render_pipe.read;
@@ -506,6 +511,7 @@ pub async fn run<
         render_rx: FileDescriptor,
         size: TerminalSize,
         window_id: Option<WindowId>,
+        term_config: Option<Arc<dyn TerminalConfiguration + Send + Sync>>,
     ) -> anyhow::Result<(PaneId, WindowId)> {
         let mux = Mux::get().unwrap();
 
@@ -522,7 +528,8 @@ pub async fn run<
             }
         };
 
-        let pane = TermWizTerminalPane::new(domain.domain_id(), size, input_tx, render_rx);
+        let pane =
+            TermWizTerminalPane::new(domain.domain_id(), size, input_tx, render_rx, term_config);
         let pane: Rc<dyn Pane> = Rc::new(pane);
 
         let tab = Rc::new(Tab::new(&size));
@@ -541,7 +548,7 @@ pub async fn run<
     }
 
     let (pane_id, window_id) = promise::spawn::spawn_into_main_thread(async move {
-        register_tab(input_tx, render_rx, size, window_id).await
+        register_tab(input_tx, render_rx, size, window_id, term_config).await
     })
     .await?;
 
diff --git a/wezterm-gui/src/overlay/mod.rs b/wezterm-gui/src/overlay/mod.rs
index 303f5a62f..dbffda54f 100644
--- a/wezterm-gui/src/overlay/mod.rs
+++ b/wezterm-gui/src/overlay/mod.rs
@@ -4,7 +4,8 @@ use mux::tab::{Tab, TabId};
 use mux::termwiztermtab::{allocate, TermWizTerminal};
 use std::pin::Pin;
 use std::rc::Rc;
-use wezterm_term::TerminalSize;
+use std::sync::Arc;
+use wezterm_term::{TerminalConfiguration, TerminalSize};
 
 pub mod confirm_close_pane;
 pub mod copy;
@@ -34,7 +35,9 @@ where
 {
     let tab_id = tab.tab_id();
     let tab_size = tab.get_size();
-    let (tw_term, tw_tab) = allocate(tab_size);
+    let term_config: Arc<dyn TerminalConfiguration + Send + Sync> =
+        Arc::new(config::TermConfig::with_config(term_window.config.clone()));
+    let (tw_term, tw_tab) = allocate(tab_size, term_config);
 
     let window = term_window.window.clone().unwrap();
 
@@ -70,7 +73,9 @@ where
         pixel_height: term_window.render_metrics.cell_size.height as usize * dims.viewport_rows,
         dpi: dims.dpi,
     };
-    let (tw_term, tw_tab) = allocate(size);
+    let term_config: Arc<dyn TerminalConfiguration + Send + Sync> =
+        Arc::new(config::TermConfig::with_config(term_window.config.clone()));
+    let (tw_term, tw_tab) = allocate(size, term_config);
 
     let window = term_window.window.clone().unwrap();