diff --git a/Packages/com.unity.inputsystem/CHANGELOG.md b/Packages/com.unity.inputsystem/CHANGELOG.md
index 5d522c7ffd..dd43bc44f4 100644
--- a/Packages/com.unity.inputsystem/CHANGELOG.md
+++ b/Packages/com.unity.inputsystem/CHANGELOG.md
@@ -9,6 +9,7 @@ Due to package verification, the latest version below is the unpublished version
 however, it has to be formatted properly to pass verification tests.
 
 ## [Unreleased] - yyyy-mm-dd
+- Fixed InputControl picker not updating correctly when the Input Actions Window was dirty. [ISXB-1221](https://issuetracker.unity3d.com/product/unity/issues/guid/ISXB-1221)
 
 ### Added
 - Exposed MediaPlayPause, MediaRewind, MediaForward keys on Keyboard.
diff --git a/Packages/com.unity.inputsystem/InputSystem/Editor/ControlPicker/InputControlPathEditor.cs b/Packages/com.unity.inputsystem/InputSystem/Editor/ControlPicker/InputControlPathEditor.cs
index 91d10fdc81..a986c2c2b3 100644
--- a/Packages/com.unity.inputsystem/InputSystem/Editor/ControlPicker/InputControlPathEditor.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/Editor/ControlPicker/InputControlPathEditor.cs
@@ -161,9 +161,11 @@ public void OnGUI(Rect rect, GUIContent label = null, SerializedProperty propert
 
         private void ShowDropdown(Rect rect, SerializedProperty serializedProperty, Action modifiedCallback)
         {
-            #if UNITY_INPUT_SYSTEM_PROJECT_WIDE_ACTIONS
+#if UNITY_INPUT_SYSTEM_PROJECT_WIDE_ACTIONS
             InputActionsEditorSettingsProvider.SetIMGUIDropdownVisible(true, false);
-            #endif
+#endif
+            IsShowingDropdown = true;
+
             if (m_PickerDropdown == null)
             {
                 m_PickerDropdown = new InputControlPickerDropdown(
@@ -187,6 +189,8 @@ private void ShowDropdown(Rect rect, SerializedProperty serializedProperty, Acti
             m_PickerDropdown.SetExpectedControlLayout(m_ExpectedControlLayout);
 
             m_PickerDropdown.Show(rect);
+
+            IsShowingDropdown = false;
         }
 
         private void SetExpectedControlLayoutFromAttribute(SerializedProperty property)
@@ -206,12 +210,16 @@ private void SetExpectedControlLayoutFromAttribute(SerializedProperty property)
         private GUIContent m_PathLabel;
         private string m_ExpectedControlLayout;
         private string[] m_ControlPathsToMatch;
-        private InputControlScheme[] m_ControlSchemes;
-        private bool m_NeedToClearProgressBar;
 
         private InputControlPickerDropdown m_PickerDropdown;
         private readonly InputControlPickerState m_PickerState;
-        private InputActionRebindingExtensions.RebindingOperation m_RebindingOperation;
+
+        /// <summary>
+        /// This property is only set from this class in order to communicate that we're showing the dropdown at the moment
+        /// It's employed to skip auto-saving, because that complicates updating the internal SerializedProperties.
+        /// Unfortunately, we can't use IMGUIDropdownVisible from the setings provider because of the early-out logic in there.
+        /// </summary>
+        public static bool IsShowingDropdown { get; private set; }
     }
 }
  #endif // UNITY_EDITOR
diff --git a/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorSettingsProvider.cs b/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorSettingsProvider.cs
index 3ff81719c3..da4ba2e8dd 100644
--- a/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorSettingsProvider.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorSettingsProvider.cs
@@ -17,7 +17,6 @@ internal class InputActionsEditorSettingsProvider : SettingsProvider
         [SerializeField] InputActionsEditorState m_State;
         VisualElement m_RootVisualElement;
         private bool m_HasEditFocus;
-        private bool m_IgnoreActionChangedCallback;
         private bool m_IsActivated;
         private static bool m_IMGUIDropdownVisible;
         StateContainer m_StateContainer;
diff --git a/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs b/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs
index 0928f3c819..d469d1e8e5 100644
--- a/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/Editor/UITKAssetEditor/InputActionsEditorWindow.cs
@@ -344,7 +344,12 @@ private void OnLostFocus()
             // Auto-save triggers on focus-lost instead of on every change
             #if UNITY_INPUT_SYSTEM_INPUT_ACTIONS_EDITOR_AUTO_SAVE_ON_FOCUS_LOST
             if (InputEditorUserSettings.autoSaveInputActionAssets && m_IsDirty)
-                Save(isAutoSave: true);
+                // We'd like to avoid saving in case the focus was lost due to the drop-down window being spawned.
+                // This code should be cleaned up once we migrate the InputControl stuff from ImGUI completely.
+                // Since at that point it stops being a separate window that steals focus.
+                // (See case ISXB-1221)
+                if (!InputControlPathEditor.IsShowingDropdown)
+                    Save(isAutoSave: true);
             #endif
 
             analytics.RegisterEditorFocusOut();