diff --git a/winit/src/lib.rs b/winit/src/lib.rs
index 9a7a456a..db1192fe 100644
--- a/winit/src/lib.rs
+++ b/winit/src/lib.rs
@@ -1328,6 +1328,17 @@ async fn run_instance<P>(
                         continue;
                     }
                 }
+                // to avoid race with the reported modifier state from the popup of
+                // this window, don't empty the modifiers, on focus loss
+                #[cfg(wayland_platform)]
+                if let winit::event::WindowEvent::ModifiersChanged(modifiers) =
+                    &event
+                    && modifiers.state().is_empty()
+                    && platform_specific_handler.has_popup(id)
+                {
+                    continue;
+                }
+
                 match event {
                     winit::event::WindowEvent::SurfaceResized(_) => {
                         window.raw.request_redraw();
diff --git a/winit/src/platform_specific/mod.rs b/winit/src/platform_specific/mod.rs
index 969c8299..f1cbf2e2 100644
--- a/winit/src/platform_specific/mod.rs
+++ b/winit/src/platform_specific/mod.rs
@@ -74,6 +74,11 @@ impl PlatformSpecific {
         }
     }
 
+    #[cfg(wayland_platform)]
+    pub(crate) fn has_popup(&self, toplevel: window::Id) -> bool {
+        self.wayland.has_popup(toplevel)
+    }
+
     pub(crate) fn retain_subsurfaces<F: Fn(window::Id) -> bool>(
         &mut self,
         keep: F,
diff --git a/winit/src/platform_specific/wayland/handlers/seat/keyboard.rs b/winit/src/platform_specific/wayland/handlers/seat/keyboard.rs
index 30f9c7a6..e3ad792a 100644
--- a/winit/src/platform_specific/wayland/handlers/seat/keyboard.rs
+++ b/winit/src/platform_specific/wayland/handlers/seat/keyboard.rs
@@ -353,6 +353,31 @@ impl KeyboardHandler for SctkState {
                         surface: surface.clone(),
                     });
                 }
+                // A popup holds the seat's keyboard on behalf of its toplevel. Report
+                // the modifiers to the toplevel as well.
+                let toplevel = self.popmgr.popups().find_map(|p| {
+                    (p.popup.wl_surface() == &surface)
+                        .then(|| p.data.toplevel.clone())
+                });
+                if let Some(toplevel) = toplevel {
+                    let id = self
+                        .windows
+                        .iter()
+                        .find(|w| w.wl_surface(&self.connection) == toplevel)
+                        .map(|w| w.id)
+                        .or_else(|| {
+                            self.layer_surfaces
+                                .iter()
+                                .find(|l| *l.surface.wl_surface() == toplevel)
+                                .map(|l| l.id)
+                        });
+                    if let Some(toplevel) = id {
+                        self.sctk_events.push(SctkEvent::PopupModifiers {
+                            toplevel,
+                            modifiers,
+                        });
+                    }
+                }
             }
         }
     }
diff --git a/winit/src/platform_specific/wayland/mod.rs b/winit/src/platform_specific/wayland/mod.rs
index 289d410d..5b41e1c5 100644
--- a/winit/src/platform_specific/wayland/mod.rs
+++ b/winit/src/platform_specific/wayland/mod.rs
@@ -20,7 +20,7 @@ use iced_graphics::{Compositor, compositor};
 use iced_runtime::core::{Vector, window};
 use raw_window_handle::{DisplayHandle, HasDisplayHandle, HasWindowHandle};
 use raw_window_handle::{HasRawDisplayHandle, RawWindowHandle};
-use sctk_event::SctkEvent;
+use sctk_event::{PopupEventVariant, SctkEvent};
 use std::sync::OnceLock;
 use std::{collections::HashMap, sync::Arc};
 use subsurface_widget::{SubsurfaceInstance, SubsurfaceState};
@@ -103,6 +103,7 @@ pub(crate) struct WaylandSpecific {
     surface_ids: HashMap<ObjectId, SurfaceIdWrapper>,
     subsurface_state: Option<SubsurfaceState>,
     surface_subsurfaces: HashMap<window::Id, Vec<SubsurfaceInstance>>,
+    popup_toplevels: HashMap<ObjectId, window::Id>,
 }
 
 impl PlatformSpecific {
@@ -173,6 +174,11 @@ impl WaylandSpecific {
         self.conn.as_ref()
     }
 
+    /// Whether a popup opened from `toplevel` is alive.
+    pub(crate) fn has_popup(&self, toplevel: window::Id) -> bool {
+        self.popup_toplevels.values().any(|id| *id == toplevel)
+    }
+
     pub(crate) async fn handle_event<'a, 'b, P>(
         &mut self,
         e: SctkEvent,
@@ -201,8 +207,33 @@ impl WaylandSpecific {
             modifiers,
             subsurface_state,
             surface_subsurfaces,
+            popup_toplevels,
         } = self;
 
+        if let SctkEvent::PopupEvent {
+            variant,
+            parent_id,
+            parent_window,
+            id,
+            ..
+        } = &e
+        {
+            match variant {
+                PopupEventVariant::Created(..) => {
+                    // A nested popup's parent is itself a popup so inhreit its toplevel
+                    let toplevel = popup_toplevels
+                        .get(&parent_id.id())
+                        .copied()
+                        .unwrap_or(*parent_window);
+                    _ = popup_toplevels.insert(id.id(), toplevel);
+                }
+                PopupEventVariant::Done => {
+                    _ = popup_toplevels.remove(&id.id());
+                }
+                _ => {}
+            }
+        }
+
         match e {
             sctk_event => {
                 let Some(sender) = sender.as_ref() else {
diff --git a/winit/src/platform_specific/wayland/sctk_event.rs b/winit/src/platform_specific/wayland/sctk_event.rs
index 64609b58..8e771f60 100755
--- a/winit/src/platform_specific/wayland/sctk_event.rs
+++ b/winit/src/platform_specific/wayland/sctk_event.rs
@@ -198,6 +198,10 @@ pub enum SctkEvent {
     SessionUnlocked,
     SurfaceScaleFactorChanged(f64, WlSurface, window::Id),
     Winit(WindowId, WindowEvent),
+    PopupModifiers {
+        toplevel: window::Id,
+        modifiers: cctk::sctk::seat::keyboard::Modifiers,
+    },
     Subcompositor(SubsurfaceState),
     ShortcutsInhibited(bool),
 }
@@ -1400,6 +1404,19 @@ impl SctkEvent {
                 ),
             )),
             SctkEvent::Winit(_, _) => {}
+            SctkEvent::PopupModifiers {
+                toplevel,
+                modifiers,
+            } => {
+                events.push((
+                    Some(toplevel),
+                    iced_runtime::core::Event::Keyboard(
+                        keyboard::Event::ModifiersChanged(modifiers_to_native(
+                            modifiers,
+                        )),
+                    ),
+                ));
+            }
             SctkEvent::SurfaceScaleFactorChanged(scale, _, id) => {
                 if let Some(w) = window_manager.get_mut(id) {
                     w.state.update_scale_factor(scale);