diff --git a/.github/actions/spelling/expect/expect.txt b/.github/actions/spelling/expect/expect.txt
index 29d56325c51..43d3f31fd87 100644
--- a/.github/actions/spelling/expect/expect.txt
+++ b/.github/actions/spelling/expect/expect.txt
@@ -131,6 +131,7 @@ buflen
 buildsystems
 buildtransitive
 BValue
+BYPOSITION
 Cacafire
 CALLCONV
 CANDRABINDU
diff --git a/src/cascadia/TerminalApp/TerminalPage.cpp b/src/cascadia/TerminalApp/TerminalPage.cpp
index c715b0e2a11..2402aa2f2f7 100644
--- a/src/cascadia/TerminalApp/TerminalPage.cpp
+++ b/src/cascadia/TerminalApp/TerminalPage.cpp
@@ -1067,6 +1067,54 @@ namespace winrt::TerminalApp::implementation
         _newTabButton.Flyout(newTabFlyout);
     }
 
+    // Method Description:
+    // - Builds the list of active profiles and raises SystemMenuNewTabProfilesChanged
+    //   so the hosting window can populate its system menu "New Tab" submenu.
+    void TerminalPage::PopulateSystemMenuNewTabProfiles()
+    {
+        const auto activeProfiles = _settings.ActiveProfiles();
+        if (!activeProfiles || activeProfiles.Size() == 0)
+        {
+            return;
+        }
+
+        const auto defaultProfileGuid = _settings.GlobalSettings().DefaultProfile();
+
+        auto profileItems = winrt::single_threaded_vector<winrt::TerminalApp::SystemMenuNewTabProfileItem>();
+
+        for (uint32_t i = 0; i < activeProfiles.Size(); i++)
+        {
+            const auto profile = activeProfiles.GetAt(i);
+            auto displayName = profile.Name();
+
+            if (profile.Guid() == defaultProfileGuid)
+            {
+                displayName = displayName + L" (default)";
+            }
+
+            NewTerminalArgs newTerminalArgs{ gsl::narrow_cast<int32_t>(i) };
+
+            auto handler = winrt::TerminalApp::SystemMenuNewTabProfileHandler(
+                [weakThis{ get_weak() }, newTerminalArgs]() {
+                    if (auto page{ weakThis.get() })
+                    {
+                        NewTabArgs newTabArgs{ newTerminalArgs };
+                        ActionAndArgs actionAndArgs{ ShortcutAction::NewTab, newTabArgs };
+                        page->_actionDispatch->DoAction(actionAndArgs);
+                    }
+                });
+
+            auto item = winrt::make_self<winrt::TerminalApp::implementation::SystemMenuNewTabProfileItem>();
+            item->DisplayName(displayName);
+            item->Handler(handler);
+            profileItems.Append(*item);
+        }
+
+        auto args = winrt::make_self<winrt::TerminalApp::implementation::SystemMenuNewTabProfilesArgs>();
+        args->Profiles(profileItems);
+        SystemMenuNewTabProfilesChanged.raise(*this, *args);
+    }
+
     // Method Description:
     // - For a given list of tab menu entries, this method will create the corresponding
     //   list of flyout items. This is a recursive method that calls itself when it comes
@@ -3919,6 +3967,8 @@ namespace winrt::TerminalApp::implementation
         _UpdateTabWidthMode();
         _CreateNewTabFlyout();
 
+        PopulateSystemMenuNewTabProfiles();
+
         // Reload the current value of alwaysOnTop from the settings file. This
         // will let the user hot-reload this setting, but any runtime changes to
         // the alwaysOnTop setting will be lost.
diff --git a/src/cascadia/TerminalApp/TerminalPage.h b/src/cascadia/TerminalApp/TerminalPage.h
index b1d26ee69d3..4c6f3d7877b 100644
--- a/src/cascadia/TerminalApp/TerminalPage.h
+++ b/src/cascadia/TerminalApp/TerminalPage.h
@@ -12,6 +12,8 @@
 #include "RenameWindowRequestedArgs.g.h"
 #include "RequestMoveContentArgs.g.h"
 #include "LaunchPositionRequest.g.h"
+#include "SystemMenuNewTabProfileItem.g.h"
+#include "SystemMenuNewTabProfilesArgs.g.h"
 #include "Toast.h"
 
 #include "WindowsPackageManagerFactory.h"
@@ -77,6 +79,21 @@ namespace winrt::TerminalApp::implementation
             _TabIndex{ tabIndex } {};
     };
 
+    struct SystemMenuNewTabProfileItem : SystemMenuNewTabProfileItemT<SystemMenuNewTabProfileItem>
+    {
+        SystemMenuNewTabProfileItem() = default;
+
+        WINRT_PROPERTY(winrt::hstring, DisplayName, L"");
+        WINRT_PROPERTY(winrt::TerminalApp::SystemMenuNewTabProfileHandler, Handler, nullptr);
+    };
+
+    struct SystemMenuNewTabProfilesArgs : SystemMenuNewTabProfilesArgsT<SystemMenuNewTabProfilesArgs>
+    {
+        SystemMenuNewTabProfilesArgs() = default;
+
+        WINRT_PROPERTY(Windows::Foundation::Collections::IVector<winrt::TerminalApp::SystemMenuNewTabProfileItem>, Profiles, nullptr);
+    };
+
     struct LaunchPositionRequest : LaunchPositionRequestT<LaunchPositionRequest>
     {
         LaunchPositionRequest() = default;
@@ -176,6 +193,8 @@ namespace winrt::TerminalApp::implementation
 
         uint32_t NumberOfTabs() const;
 
+        void PopulateSystemMenuNewTabProfiles();
+
         til::property_changed_event PropertyChanged;
 
         // -------------------------------- WinRT Events ---------------------------------
@@ -204,6 +223,8 @@ namespace winrt::TerminalApp::implementation
 
         til::typed_event<IInspectable, winrt::TerminalApp::LaunchPositionRequest> RequestLaunchPosition;
 
+        til::typed_event<IInspectable, winrt::TerminalApp::SystemMenuNewTabProfilesArgs> SystemMenuNewTabProfilesChanged;
+
         WINRT_OBSERVABLE_PROPERTY(winrt::Windows::UI::Xaml::Media::Brush, TitlebarBrush, PropertyChanged.raise, nullptr);
         WINRT_OBSERVABLE_PROPERTY(winrt::Windows::UI::Xaml::Media::Brush, FrameBrush, PropertyChanged.raise, nullptr);
 
diff --git a/src/cascadia/TerminalApp/TerminalPage.idl b/src/cascadia/TerminalApp/TerminalPage.idl
index ce15059864b..af2b51f305f 100644
--- a/src/cascadia/TerminalApp/TerminalPage.idl
+++ b/src/cascadia/TerminalApp/TerminalPage.idl
@@ -50,6 +50,19 @@ namespace TerminalApp
         Microsoft.Terminal.Settings.Model.LaunchPosition Position;
     }
 
+    delegate void SystemMenuNewTabProfileHandler();
+
+    [default_interface] runtimeclass SystemMenuNewTabProfileItem
+    {
+        String DisplayName { get; };
+        SystemMenuNewTabProfileHandler Handler { get; };
+    };
+
+    [default_interface] runtimeclass SystemMenuNewTabProfilesArgs
+    {
+        IVector<SystemMenuNewTabProfileItem> Profiles { get; };
+    };
+
     [default_interface] runtimeclass TerminalPage : Windows.UI.Xaml.Controls.Page, Windows.UI.Xaml.Data.INotifyPropertyChanged, Microsoft.Terminal.UI.IDirectKeyListener
     {
         TerminalPage(WindowProperties properties, ContentManager manager);
@@ -103,5 +116,7 @@ namespace TerminalApp
         event Windows.Foundation.TypedEventHandler<Object, RequestReceiveContentArgs> RequestReceiveContent;
 
         event Windows.Foundation.TypedEventHandler<Object, LaunchPositionRequest> RequestLaunchPosition;
+
+        event Windows.Foundation.TypedEventHandler<Object, SystemMenuNewTabProfilesArgs> SystemMenuNewTabProfilesChanged;
     }
 }
diff --git a/src/cascadia/TerminalApp/TerminalWindow.cpp b/src/cascadia/TerminalApp/TerminalWindow.cpp
index b2fa349e40c..b54fcbd0a4b 100644
--- a/src/cascadia/TerminalApp/TerminalWindow.cpp
+++ b/src/cascadia/TerminalApp/TerminalWindow.cpp
@@ -217,6 +217,8 @@ namespace winrt::TerminalApp::implementation
                                                            SystemMenuItemHandler(this, &TerminalWindow::_OpenSettingsUI));
         SystemMenuChangeRequested.raise(*this, *args);
 
+        _root->PopulateSystemMenuNewTabProfiles();
+
         TraceLoggingWrite(
             g_hTerminalAppProvider,
             "WindowCreated",
diff --git a/src/cascadia/TerminalApp/TerminalWindow.h b/src/cascadia/TerminalApp/TerminalWindow.h
index 2f1aad5a7aa..3b42a06a685 100644
--- a/src/cascadia/TerminalApp/TerminalWindow.h
+++ b/src/cascadia/TerminalApp/TerminalWindow.h
@@ -161,6 +161,8 @@ namespace winrt::TerminalApp::implementation
         til::typed_event<winrt::Windows::Foundation::IInspectable, winrt::TerminalApp::SettingsLoadEventArgs> SettingsChanged;
         til::typed_event<winrt::Windows::Foundation::IInspectable, winrt::Microsoft::Terminal::Control::WindowSizeChangedEventArgs> WindowSizeChanged;
 
+        FORWARDED_TYPED_EVENT(SystemMenuNewTabProfilesChanged, Windows::Foundation::IInspectable, winrt::TerminalApp::SystemMenuNewTabProfilesArgs, _root, SystemMenuNewTabProfilesChanged);
+
     private:
         // If you add controls here, but forget to null them either here or in
         // the ctor, you're going to have a bad time. It'll mysteriously fail to
diff --git a/src/cascadia/TerminalApp/TerminalWindow.idl b/src/cascadia/TerminalApp/TerminalWindow.idl
index b900522cbf2..f6993a3c7eb 100644
--- a/src/cascadia/TerminalApp/TerminalWindow.idl
+++ b/src/cascadia/TerminalApp/TerminalWindow.idl
@@ -129,6 +129,7 @@ namespace TerminalApp
         event Windows.Foundation.TypedEventHandler<Object, Object> OpenSystemMenu;
         event Windows.Foundation.TypedEventHandler<Object, Object> QuitRequested;
         event Windows.Foundation.TypedEventHandler<Object, TerminalApp.SystemMenuChangeArgs> SystemMenuChangeRequested;
+        event Windows.Foundation.TypedEventHandler<Object, TerminalApp.SystemMenuNewTabProfilesArgs> SystemMenuNewTabProfilesChanged;
         event Windows.Foundation.TypedEventHandler<Object, Microsoft.Terminal.Control.ShowWindowArgs> ShowWindowChanged;
         event Windows.Foundation.TypedEventHandler<Object, Microsoft.Terminal.Control.WindowSizeChangedEventArgs> WindowSizeChanged;
 
diff --git a/src/cascadia/WindowsTerminal/AppHost.cpp b/src/cascadia/WindowsTerminal/AppHost.cpp
index 522e90c7d28..ad27b8be5cc 100644
--- a/src/cascadia/WindowsTerminal/AppHost.cpp
+++ b/src/cascadia/WindowsTerminal/AppHost.cpp
@@ -233,6 +233,7 @@ void AppHost::Initialize()
     _revokers.AlwaysOnTopChanged = _windowLogic.AlwaysOnTopChanged(winrt::auto_revoke, { this, &AppHost::_AlwaysOnTopChanged });
     _revokers.RaiseVisualBell = _windowLogic.RaiseVisualBell(winrt::auto_revoke, { this, &AppHost::_RaiseVisualBell });
     _revokers.SystemMenuChangeRequested = _windowLogic.SystemMenuChangeRequested(winrt::auto_revoke, { this, &AppHost::_SystemMenuChangeRequested });
+    _revokers.SystemMenuNewTabProfilesChanged = _windowLogic.SystemMenuNewTabProfilesChanged(winrt::auto_revoke, { this, &AppHost::_SystemMenuNewTabProfilesChanged });
     _revokers.ChangeMaximizeRequested = _windowLogic.ChangeMaximizeRequested(winrt::auto_revoke, { this, &AppHost::_ChangeMaximizeRequested });
     _revokers.RequestLaunchPosition = _windowLogic.RequestLaunchPosition(winrt::auto_revoke, { this, &AppHost::_HandleRequestLaunchPosition });
 
@@ -1091,6 +1092,48 @@ void AppHost::_SystemMenuChangeRequested(const winrt::Windows::Foundation::IInsp
     }
 }
 
+// Method Description:
+// - Handles the SystemMenuNewTabProfilesChanged event from the TerminalPage.
+//   Rebuilds the "New Tab" submenu in the system menu (Alt+Space) with items
+//   driven by the app layer's action engine.
+// Arguments:
+// - args: The SystemMenuNewTabProfilesArgs containing the new list of
+//         profiles to show in the "New Tab" submenu.
+// Return Value:
+// - <none>
+void AppHost::_SystemMenuNewTabProfilesChanged(const winrt::Windows::Foundation::IInspectable&, const winrt::TerminalApp::SystemMenuNewTabProfilesArgs& args)
+{
+    if (!_window)
+    {
+        return;
+    }
+
+    _window->RemoveSystemSubMenu(L"New Tab");
+
+    if (!args || !args.Profiles() || args.Profiles().Size() == 0)
+    {
+        return;
+    }
+
+    std::vector<std::pair<winrt::hstring, winrt::delegate<void()>>> profileItems;
+    profileItems.reserve(args.Profiles().Size());
+
+    for (const auto& item : args.Profiles())
+    {
+        auto handler = item.Handler();
+        auto callback = winrt::delegate<void()>([handler]() {
+            if (handler)
+            {
+                handler();
+            }
+        });
+
+        profileItems.emplace_back(item.DisplayName(), std::move(callback));
+    }
+
+    _window->AddSystemSubMenu(L"New Tab", profileItems);
+}
+
 // Method Description:
 // - BODGY workaround for GH#9320. When the window moves, dismiss all the popups
 //   in the UI tree. Xaml Islands unfortunately doesn't do this for us, see
diff --git a/src/cascadia/WindowsTerminal/AppHost.h b/src/cascadia/WindowsTerminal/AppHost.h
index 379f876b943..5c7a6aee4f5 100644
--- a/src/cascadia/WindowsTerminal/AppHost.h
+++ b/src/cascadia/WindowsTerminal/AppHost.h
@@ -131,6 +131,9 @@ class AppHost : public std::enable_shared_from_this<AppHost>
     void _HandleRequestLaunchPosition(const winrt::Windows::Foundation::IInspectable& sender,
                                       winrt::TerminalApp::LaunchPositionRequest args);
 
+    void _SystemMenuNewTabProfilesChanged(const winrt::Windows::Foundation::IInspectable& sender,
+                                          const winrt::TerminalApp::SystemMenuNewTabProfilesArgs& args);
+
     // Helper struct. By putting these all into one struct, we can revoke them
     // all at once, by assigning _revokers to a fresh Revokers instance. That'll
     // cause us to dtor the old one, which will immediately call revoke on all
@@ -160,6 +163,7 @@ class AppHost : public std::enable_shared_from_this<AppHost>
         winrt::TerminalApp::TerminalWindow::PropertyChanged_revoker PropertyChanged;
         winrt::TerminalApp::TerminalWindow::SettingsChanged_revoker SettingsChanged;
         winrt::TerminalApp::TerminalWindow::WindowSizeChanged_revoker WindowSizeChanged;
+        winrt::TerminalApp::TerminalWindow::SystemMenuNewTabProfilesChanged_revoker SystemMenuNewTabProfilesChanged;
     } _revokers{};
 
     // our IslandWindow is not a WinRT type. It can't make auto_revokers like
diff --git a/src/cascadia/WindowsTerminal/IslandWindow.cpp b/src/cascadia/WindowsTerminal/IslandWindow.cpp
index e627bd44957..b640d444ad5 100644
--- a/src/cascadia/WindowsTerminal/IslandWindow.cpp
+++ b/src/cascadia/WindowsTerminal/IslandWindow.cpp
@@ -1808,6 +1808,51 @@ void IslandWindow::AddToSystemMenu(const winrt::hstring& itemLabel, winrt::deleg
     _systemMenuNextItemId++;
 }
 
+void IslandWindow::AddSystemSubMenu(const winrt::hstring& menuLabel, const std::vector<std::pair<winrt::hstring, winrt::delegate<void()>>>& items)
+{
+    const auto systemMenu = GetSystemMenu(_window.get(), FALSE);
+
+    HMENU subMenu = CreatePopupMenu();
+    if (!subMenu)
+    {
+        LOG_LAST_ERROR();
+        return;
+    }
+
+    for (const auto& [label, callback] : items)
+    {
+        auto wID = _systemMenuNextItemId;
+
+        MENUITEMINFOW item;
+        item.cbSize = sizeof(MENUITEMINFOW);
+        item.fMask = MIIM_STATE | MIIM_ID | MIIM_STRING;
+        item.fState = MF_ENABLED;
+        item.wID = wID;
+        item.dwTypeData = const_cast<LPWSTR>(label.c_str());
+        item.cch = static_cast<UINT>(label.size());
+
+        if (LOG_LAST_ERROR_IF(!InsertMenuItemW(subMenu, wID, FALSE, &item)))
+        {
+            continue;
+        }
+        _systemMenuItems.insert({ wID, { label, callback } });
+        _systemMenuNextItemId++;
+    }
+
+    MENUITEMINFOW subMenuItem;
+    subMenuItem.cbSize = sizeof(MENUITEMINFOW);
+    subMenuItem.fMask = MIIM_STRING | MIIM_SUBMENU;
+    subMenuItem.hSubMenu = subMenu;
+    subMenuItem.dwTypeData = const_cast<LPWSTR>(menuLabel.c_str());
+    subMenuItem.cch = static_cast<UINT>(menuLabel.size());
+
+    if (LOG_LAST_ERROR_IF(!InsertMenuItemW(systemMenu, _systemMenuNextItemId, FALSE, &subMenuItem)))
+    {
+        DestroyMenu(subMenu);
+        return;
+    }
+}
+
 void IslandWindow::RemoveFromSystemMenu(const winrt::hstring& itemLabel)
 {
     const auto systemMenu = GetSystemMenu(_window.get(), FALSE);
@@ -1832,6 +1877,53 @@ void IslandWindow::RemoveFromSystemMenu(const winrt::hstring& itemLabel)
     _systemMenuItems.erase(it->first);
 }
 
+// Method Description:
+// - Removes a submenu from the system menu by its label. Also removes all
+//   child items from the _systemMenuItems tracking map. The submenu HMENU
+//   is destroyed automatically by DeleteMenu.
+// Arguments:
+// - menuLabel: The label of the submenu to remove.
+void IslandWindow::RemoveSystemSubMenu(const winrt::hstring& menuLabel)
+{
+    const auto systemMenu = GetSystemMenu(_window.get(), FALSE);
+    const auto itemCount = GetMenuItemCount(systemMenu);
+    if (LOG_LAST_ERROR_IF(itemCount == -1))
+    {
+        return;
+    }
+
+    for (int i = 0; i < itemCount; i++)
+    {
+        wchar_t buffer[256]{};
+        MENUITEMINFOW mii{};
+        mii.cbSize = sizeof(MENUITEMINFOW);
+        mii.fMask = MIIM_STRING | MIIM_SUBMENU;
+        mii.dwTypeData = buffer;
+        mii.cch = ARRAYSIZE(buffer);
+
+        if (!GetMenuItemInfoW(systemMenu, static_cast<UINT>(i), TRUE, &mii))
+        {
+            continue;
+        }
+
+        if (mii.hSubMenu && menuLabel == std::wstring_view{ buffer })
+        {
+            const auto subItemCount = GetMenuItemCount(mii.hSubMenu);
+            for (int j = 0; j < subItemCount; j++)
+            {
+                const auto subItemId = GetMenuItemID(mii.hSubMenu, j);
+                if (subItemId != static_cast<UINT>(-1))
+                {
+                    _systemMenuItems.erase(subItemId);
+                }
+            }
+
+            DeleteMenu(systemMenu, static_cast<UINT>(i), MF_BYPOSITION);
+            return;
+        }
+    }
+}
+
 void IslandWindow::_resetSystemMenu()
 {
     // GetSystemMenu(..., true) will revert the menu to the default state.
diff --git a/src/cascadia/WindowsTerminal/IslandWindow.h b/src/cascadia/WindowsTerminal/IslandWindow.h
index 83afeaf44f5..effd1983b15 100644
--- a/src/cascadia/WindowsTerminal/IslandWindow.h
+++ b/src/cascadia/WindowsTerminal/IslandWindow.h
@@ -67,7 +67,9 @@ class IslandWindow :
 
     void OpenSystemMenu(const std::optional<int> mouseX, const std::optional<int> mouseY) const noexcept;
     void AddToSystemMenu(const winrt::hstring& itemLabel, winrt::delegate<void()> callback);
+    void AddSystemSubMenu(const winrt::hstring& menuLabel, const std::vector<std::pair<winrt::hstring, winrt::delegate<void()>>>& items);
     void RemoveFromSystemMenu(const winrt::hstring& itemLabel);
+    void RemoveSystemSubMenu(const winrt::hstring& menuLabel);
 
     void UseDarkTheme(const bool v);
     virtual void UseMica(const bool newValue, const double titlebarOpacity);