diff --git a/packages/app/cypress/e2e/studio/studio.cy.ts b/packages/app/cypress/e2e/studio/studio.cy.ts
index 9317eb382943..aea6da8ce70e 100644
--- a/packages/app/cypress/e2e/studio/studio.cy.ts
+++ b/packages/app/cypress/e2e/studio/studio.cy.ts
@@ -760,6 +760,27 @@ describe('studio functionality', () => {
     cy.location().its('hash').and('not.contain', 'testId=').and('not.contain', 'studio=')
   })
 
+  it('does not prompt for a URL until studio is active', () => {
+    launchStudio({ specName: 'spec-w-visit.cy.js', createNewTestFromSuite: true })
+    cy.location().its('hash').should('contain', 'suiteId=r2').and('contain', 'studio=')
+    cy.waitForSpecToFinish()
+
+    cy.findByTestId('aut-url-input').should('have.value', 'http://localhost:4455/cypress/e2e/index.html')
+  })
+
+  it('does not reload the page if we didnt open a test in studio', () => {
+    launchStudio({ specName: 'spec-w-visit.cy.js', createNewTestFromSuite: true })
+
+    // set a property on the window to see if the page reloads
+    cy.window().then((w) => w['beforeReload'] = true)
+
+    // close new test mode
+    cy.findByTestId('studio-header-studio-button').click()
+
+    // if this property is still set on the window, then the page didn't reload
+    cy.window().then((w) => expect(w['beforeReload']).to.be.true)
+  })
+
   it('removes the studio url parameters when closing studio new test', () => {
     launchStudio({ specName: 'spec-w-visit.cy.js', createNewTestFromSuite: true })
 
@@ -770,6 +791,68 @@ describe('studio functionality', () => {
     cy.location().its('hash').and('not.contain', 'suiteId=').and('not.contain', 'studio=')
   })
 
+  it('stays in new test mode when studio panel is opened when the spec is running', () => {
+    loadProjectAndRunSpec()
+
+    cy.waitForSpecToFinish()
+
+    cy.findByTestId('studio-button').click()
+    cy.findByTestId('studio-panel').should('be.visible')
+    cy.findByTestId('new-test-button').should('be.visible')
+
+    // Verify we're initially in new test mode
+    cy.location().its('hash').should('contain', 'suiteId=r1').and('not.contain', 'testId=')
+
+    // Now restart the spec, which will call interceptTest with the running test
+    // This is where the bug would manifest - it would incorrectly switch from
+    // "new test" mode to "edit the running test" mode
+    cy.get('button.restart').click()
+
+    cy.get('.test').should('have.length', 1)
+    cy.get('.test').first().should('have.class', 'runnable-active')
+
+    // verify we're still in new test mode
+    cy.findByTestId('studio-panel').should('be.visible')
+    cy.findByTestId('new-test-button').should('be.visible')
+
+    // these should not exist if we stayed in new test mode
+    cy.findByTestId('studio-single-test-title').should('not.exist')
+    cy.findByTestId('record-button-recording').should('not.exist')
+
+    // verify URL still shows suite mode, not edit test mode
+    cy.location().its('hash').should('contain', 'suiteId=r1').and('not.contain', 'testId=')
+  })
+
+  it('shows test body sections correctly when studio panel is open and page is refreshed', () => {
+    loadProjectAndRunSpec()
+
+    cy.waitForSpecToFinish()
+
+    cy.findByTestId('studio-button').click()
+    cy.findByTestId('studio-panel').should('be.visible')
+    cy.findByTestId('new-test-button').should('be.visible')
+
+    cy.reload()
+
+    cy.waitForSpecToFinish()
+
+    cy.findByTestId('studio-panel').should('be.visible')
+    cy.findByTestId('new-test-button').should('be.visible')
+
+    // verify test body section is visible after refresh
+    cy.get('.runnable-instruments').should('be.visible')
+    cy.get('.runnable-commands-region').should('be.visible')
+
+    // verify the test body hook is present
+    cy.get('.hook-item').contains('test body').should('be.visible')
+
+    // verify commands are visible within the test body
+    cy.get('.command-name-visit').should('be.visible')
+
+    // Verify URL parameters show suite mode, not test mode
+    cy.location().its('hash').should('contain', 'suiteId=r1').and('not.contain', 'testId=')
+  })
+
   describe('prompt for a new url', () => {
     const autUrl = 'http://localhost:4455/cypress/e2e/index.html'
     const visitUrl = 'cypress/e2e/index.html'
diff --git a/packages/app/src/runner/SpecRunnerHeaderOpenMode.cy.tsx b/packages/app/src/runner/SpecRunnerHeaderOpenMode.cy.tsx
index a651e0d72e63..6eea7eb0b059 100644
--- a/packages/app/src/runner/SpecRunnerHeaderOpenMode.cy.tsx
+++ b/packages/app/src/runner/SpecRunnerHeaderOpenMode.cy.tsx
@@ -223,6 +223,7 @@ describe('SpecRunnerHeaderOpenMode', { viewportHeight: 500 }, () => {
       // This emulates the 'needsUrl' state in the studio store
       studioStore.setActive(true)
       studioStore.setUrl(undefined)
+      studioStore._hasStarted = true
 
       cy.mountFragment(SpecRunnerHeaderFragmentDoc, {
         render: (gqlVal) => {
diff --git a/packages/app/src/runner/event-manager.ts b/packages/app/src/runner/event-manager.ts
index 3b5516bda2be..a51070b55f2f 100644
--- a/packages/app/src/runner/event-manager.ts
+++ b/packages/app/src/runner/event-manager.ts
@@ -307,6 +307,17 @@ export class EventManager {
       studioInitSuite({ suiteId })
     })
 
+    const maybeCleanUpProtocol = () => {
+      const needsReload = this.studioStore.needsProtocolCleanup()
+
+      this.studioStore.cancel()
+
+      // only reload the page if Studio has actually been used for recording
+      if (needsReload) {
+        window.location.reload()
+      }
+    }
+
     this.reporterBus.on('studio:cancel', () => {
       this.ws.emit('studio:destroy', ({ error }) => {
         if (error) {
@@ -314,9 +325,7 @@ export class EventManager {
           console.error(error)
         }
 
-        this.studioStore.cancel()
-        // Reloading for now. This is the easiest way to clear out the protocol code from the front end
-        window.location.reload()
+        maybeCleanUpProtocol()
       })
     })
 
@@ -366,9 +375,7 @@ export class EventManager {
           console.error(error)
         }
 
-        this.studioStore.cancel()
-        // Reloading for now. This is the easiest way to clear out the protocol code from the front end
-        window.location.reload()
+        maybeCleanUpProtocol()
       })
     })
 
@@ -857,7 +864,8 @@ export class EventManager {
       performance.measure('run', 'run-s', 'run-e')
     })
 
-    const hasRunnableId = !!this.studioStore.testId || !!this.studioStore.suiteId
+    const hasActiveStudio = !!this.studioStore.testId ||
+                           !!this.studioStore.newTestLineNumber
 
     const studioSingleTestActive = this.studioStore.newTestLineNumber != null || !!this.studioStore.testId
 
@@ -869,7 +877,7 @@ export class EventManager {
       autoScrollingEnabled: runState.autoScrollingEnabled,
       isSpecsListOpen: runState.isSpecsListOpen,
       scrollTop: runState.scrollTop,
-      studioActive: hasRunnableId,
+      studioActive: hasActiveStudio,
       studioSingleTestActive,
     } as ReporterStartInfo)
   }
@@ -928,7 +936,9 @@ export class EventManager {
   }
 
   _interceptStudio (displayProps) {
-    if (this.studioStore.isActive) {
+    // Only intercept logs when Studio is actually recording a specific test
+    // Don't intercept when Studio is just open in "new test" mode
+    if (this.studioStore.isActive && this.studioStore.testId) {
       displayProps.hookId = this.studioStore.hookId
 
       if (displayProps.name === 'visit' && displayProps.state === 'failed') {
diff --git a/packages/app/src/store/studio-store.ts b/packages/app/src/store/studio-store.ts
index 281635c44bb8..1b4a6caf7fa6 100644
--- a/packages/app/src/store/studio-store.ts
+++ b/packages/app/src/store/studio-store.ts
@@ -175,6 +175,11 @@ export const useStudioStore = defineStore('studioRecorder', {
       this.newTestLineNumber = undefined
     },
 
+    needsProtocolCleanup () {
+      // Protocol cleanup (page reload) is only needed if the user has actually entered single test mode in Studio
+      return this._hasStarted || this.testId || this._isStudioCreatedTest
+    },
+
     openInstructionModal () {
       this.instructionModalIsOpen = true
     },
@@ -246,7 +251,7 @@ export const useStudioStore = defineStore('studioRecorder', {
 
     interceptTest (test) {
       // if this test is the one we created, we can just set the test id
-      if ((this.newTestLineNumber && test.invocationDetails?.line === this.newTestLineNumber) || this.suiteId) {
+      if ((this.newTestLineNumber && test.invocationDetails?.line === this.newTestLineNumber) || (this.suiteId && this._hasStarted)) {
         this._isStudioCreatedTest = true
         this.setTestId(test.id)
         getCypress().runner.setIsStudioCreatedTest(true)
@@ -848,7 +853,7 @@ export const useStudioStore = defineStore('studioRecorder', {
     },
 
     needsUrl: (state) => {
-      return state.isActive && !state.url && !state.isFailed
+      return state.isActive && !state.url && !state.isFailed && state._hasStarted
     },
 
     testError: (state) => {