diff --git a/goldens/cdk/dialog/index.api.md b/goldens/cdk/dialog/index.api.md
index 32eb409ced99..842f90728e83 100644
--- a/goldens/cdk/dialog/index.api.md
+++ b/goldens/cdk/dialog/index.api.md
@@ -123,7 +123,7 @@ export class DialogConfig<D = unknown, R = unknown, C extends DialogContainer =
     backdropClass?: string | string[];
     bindings?: Binding[];
     closeOnDestroy?: boolean;
-    closeOnNavigation?: boolean;
+    closeOnNavigation?: OverlayDisposeOnNavigation;
     closeOnOverlayDetachments?: boolean;
     closePredicate?: <Result = unknown, Component = unknown, Config extends DialogConfig = DialogConfig>(result: Result | undefined, config: Config, componentInstance: Component | null) => boolean;
     container?: Type<C> | {
diff --git a/goldens/cdk/overlay/index.api.md b/goldens/cdk/overlay/index.api.md
index d98387f9038d..26d4e8491729 100644
--- a/goldens/cdk/overlay/index.api.md
+++ b/goldens/cdk/overlay/index.api.md
@@ -55,7 +55,7 @@ export class CdkConnectedOverlay implements OnDestroy, OnChanges {
     detachOverlay(): void;
     get dir(): Direction;
     disableClose: boolean;
-    disposeOnNavigation: boolean;
+    disposeOnNavigation: OverlayDisposeOnNavigation;
     flexibleDimensions: boolean;
     growAfterOpen: boolean;
     hasBackdrop: boolean;
@@ -114,7 +114,7 @@ export interface CdkConnectedOverlayConfig {
     // (undocumented)
     disableClose?: boolean;
     // (undocumented)
-    disposeOnNavigation?: boolean;
+    disposeOnNavigation?: OverlayDisposeOnNavigation;
     // (undocumented)
     flexibleDimensions?: boolean;
     // (undocumented)
@@ -391,7 +391,7 @@ export class OverlayConfig {
     backdropClass?: string | string[];
     direction?: Direction | Directionality;
     disableAnimations?: boolean;
-    disposeOnNavigation?: boolean;
+    disposeOnNavigation?: OverlayDisposeOnNavigation;
     eventPredicate?: (event: Event) => boolean;
     hasBackdrop?: boolean;
     height?: number | string;
@@ -440,6 +440,9 @@ export interface OverlayDefaultConfig {
     usePopover?: boolean;
 }
 
+// @public
+export type OverlayDisposeOnNavigation = boolean | 'url-change' | 'pop-state';
+
 // @public
 export class OverlayKeyboardDispatcher extends BaseOverlayDispatcher {
     add(overlayRef: OverlayRef): void;
diff --git a/goldens/material/bottom-sheet/index.api.md b/goldens/material/bottom-sheet/index.api.md
index 3a001c66e7f2..8bd8d94b0c70 100644
--- a/goldens/material/bottom-sheet/index.api.md
+++ b/goldens/material/bottom-sheet/index.api.md
@@ -19,6 +19,7 @@ import { InjectionToken } from '@angular/core';
 import { Injector } from '@angular/core';
 import { Observable } from 'rxjs';
 import { OnDestroy } from '@angular/core';
+import { OverlayDisposeOnNavigation } from '@angular/cdk/overlay';
 import { RestoreFocusValue } from '@angular/cdk/dialog';
 import { ScrollStrategy } from '@angular/cdk/overlay';
 import { TemplateRef } from '@angular/core';
@@ -55,7 +56,7 @@ export class MatBottomSheetConfig<D = any> {
     autoFocus?: AutoFocusTarget | string | boolean;
     backdropClass?: string;
     bindings?: Binding[];
-    closeOnNavigation?: boolean;
+    closeOnNavigation?: OverlayDisposeOnNavigation;
     data?: D | null;
     direction?: Direction;
     disableClose?: boolean;
diff --git a/goldens/material/dialog/index.api.md b/goldens/material/dialog/index.api.md
index 68c242b3f75c..6042b2d32410 100644
--- a/goldens/material/dialog/index.api.md
+++ b/goldens/material/dialog/index.api.md
@@ -27,6 +27,7 @@ import { Observable } from 'rxjs';
 import { OnChanges } from '@angular/core';
 import { OnDestroy } from '@angular/core';
 import { OnInit } from '@angular/core';
+import { OverlayDisposeOnNavigation } from '@angular/cdk/overlay';
 import { RestoreFocusValue } from '@angular/cdk/dialog';
 import { ScrollStrategy } from '@angular/cdk/overlay';
 import { SimpleChanges } from '@angular/core';
@@ -127,7 +128,7 @@ export class MatDialogConfig<D = any> {
     autoFocus?: AutoFocusTarget | string | boolean;
     backdropClass?: string | string[];
     bindings?: Binding[];
-    closeOnNavigation?: boolean;
+    closeOnNavigation?: OverlayDisposeOnNavigation;
     closePredicate?: <Result = unknown, Component = unknown, Config extends DialogConfig = MatDialogConfig>(result: Result | undefined, config: Config, componentInstance: Component | null) => boolean;
     data?: D | null;
     delayFocusTrap?: boolean;
diff --git a/goldens/material/dialog/testing/index.api.md b/goldens/material/dialog/testing/index.api.md
index b9220f42762c..61fcb58cd0d7 100644
--- a/goldens/material/dialog/testing/index.api.md
+++ b/goldens/material/dialog/testing/index.api.md
@@ -23,6 +23,7 @@ import * as i0 from '@angular/core';
 import { Injector } from '@angular/core';
 import { Observable } from 'rxjs';
 import { OnDestroy } from '@angular/core';
+import { OverlayDisposeOnNavigation } from '@angular/cdk/overlay';
 import { RestoreFocusValue } from '@angular/cdk/dialog';
 import { ScrollStrategy } from '@angular/cdk/overlay';
 import { Subject } from 'rxjs';
diff --git a/src/cdk/dialog/dialog-config.ts b/src/cdk/dialog/dialog-config.ts
index 345238760497..9bd7072dc2e7 100644
--- a/src/cdk/dialog/dialog-config.ts
+++ b/src/cdk/dialog/dialog-config.ts
@@ -8,7 +8,7 @@
 
 import {ViewContainerRef, Injector, StaticProvider, Type, Binding} from '@angular/core';
 import {Direction} from '../bidi';
-import {PositionStrategy, ScrollStrategy} from '../overlay';
+import {OverlayDisposeOnNavigation, PositionStrategy, ScrollStrategy} from '../overlay';
 import {Observable} from 'rxjs';
 import {BasePortalOutlet} from '../portal';
 import {FocusOrigin} from '../a11y';
@@ -140,12 +140,8 @@ export class DialogConfig<D = unknown, R = unknown, C extends DialogContainer =
    */
   scrollStrategy?: ScrollStrategy;
 
-  /**
-   * Whether the dialog should close when the user navigates backwards or forwards through browser
-   * history. This does not apply to navigation via anchor element unless using URL-hash based
-   * routing (`HashLocationStrategy` in the Angular router).
-   */
-  closeOnNavigation?: boolean = true;
+  /** Whether the dialog should be disposed of when the user navigates. */
+  closeOnNavigation?: OverlayDisposeOnNavigation = true;
 
   /**
    * Whether the dialog should close when the dialog service is destroyed. This is useful if
diff --git a/src/cdk/overlay/overlay-config.ts b/src/cdk/overlay/overlay-config.ts
index e0ec3af1fec2..aed051e04255 100644
--- a/src/cdk/overlay/overlay-config.ts
+++ b/src/cdk/overlay/overlay-config.ts
@@ -10,6 +10,17 @@ import {PositionStrategy} from './position/position-strategy';
 import {Direction, Directionality} from '../bidi';
 import {ScrollStrategy, NoopScrollStrategy} from './scroll/index';
 
+/**
+ * Value that can be used to configure the behavior of `OverlayConfig.disposeOnNavigation`.
+ * The value correspond to the following:
+ * - `true` or `pop-state` - Overlay is only disposed when the back/forward browser buttons are
+ * pressed.
+ * - `false` - Overlay does nothing on navigations.
+ * - `url-change` - Overlay closes on any URL change. Note that this may close overlays opened
+ * from route resolvers immediately.
+ */
+export type OverlayDisposeOnNavigation = boolean | 'url-change' | 'pop-state';
+
 /** Initial configuration used when creating an overlay. */
 export class OverlayConfig {
   /** Strategy with which to position the overlay. */
@@ -54,12 +65,8 @@ export class OverlayConfig {
    */
   direction?: Direction | Directionality;
 
-  /**
-   * Whether the overlay should be disposed of when the user goes backwards/forwards in history.
-   * Note that this usually doesn't include clicking on links (unless the user is using
-   * the `HashLocationStrategy`).
-   */
-  disposeOnNavigation?: boolean = false;
+  /** Whether the overlay should be disposed of when the user navigates. */
+  disposeOnNavigation?: OverlayDisposeOnNavigation = false;
 
   /**
    * Whether the overlay should be rendered as a native popover element,
diff --git a/src/cdk/overlay/overlay-directives.ts b/src/cdk/overlay/overlay-directives.ts
index dba42a15754b..52d932b3b4fe 100644
--- a/src/cdk/overlay/overlay-directives.ts
+++ b/src/cdk/overlay/overlay-directives.ts
@@ -30,7 +30,7 @@ import {_getEventTarget} from '../platform';
 import {Subscription} from 'rxjs';
 import {takeWhile} from 'rxjs/operators';
 import {createOverlayRef, OVERLAY_DEFAULT_CONFIG} from './overlay';
-import {OverlayConfig} from './overlay-config';
+import {OverlayConfig, OverlayDisposeOnNavigation} from './overlay-config';
 import {OverlayRef} from './overlay-ref';
 import {ConnectedOverlayPositionChange, ViewportMargin} from './position/connected-position';
 import {
@@ -124,7 +124,7 @@ export interface CdkConnectedOverlayConfig {
   flexibleDimensions?: boolean;
   growAfterOpen?: boolean;
   push?: boolean;
-  disposeOnNavigation?: boolean;
+  disposeOnNavigation?: OverlayDisposeOnNavigation;
   usePopover?: FlexibleOverlayPopoverLocation | null;
   matchWidth?: boolean;
 }
@@ -246,8 +246,12 @@ export class CdkConnectedOverlay implements OnDestroy, OnChanges {
   @Input({alias: 'cdkConnectedOverlayPush', transform: booleanAttribute}) push: boolean = false;
 
   /** Whether the overlay should be disposed of when the user goes backwards/forwards in history. */
-  @Input({alias: 'cdkConnectedOverlayDisposeOnNavigation', transform: booleanAttribute})
-  disposeOnNavigation: boolean = false;
+  @Input({
+    alias: 'cdkConnectedOverlayDisposeOnNavigation',
+    transform: (value: unknown): OverlayDisposeOnNavigation =>
+      value === 'url-change' || value === 'pop-state' ? value : booleanAttribute(value),
+  })
+  disposeOnNavigation: OverlayDisposeOnNavigation = false;
 
   /** Whether the connected overlay should be rendered inside a popover element or the overlay container. */
   @Input({alias: 'cdkConnectedOverlayUsePopover'})
diff --git a/src/cdk/overlay/overlay-ref.ts b/src/cdk/overlay/overlay-ref.ts
index 439500d5b43c..15f935480ccf 100644
--- a/src/cdk/overlay/overlay-ref.ts
+++ b/src/cdk/overlay/overlay-ref.ts
@@ -18,7 +18,7 @@ import {
   signal,
   untracked,
 } from '@angular/core';
-import {Observable, Subject, Subscription, SubscriptionLike} from 'rxjs';
+import {Observable, Subject} from 'rxjs';
 import {Direction, Directionality} from '../bidi';
 import {coerceArray, coerceCssPixelValue} from '../coercion';
 import {ComponentPortal, Portal, PortalOutlet, TemplatePortal} from '../portal';
@@ -54,7 +54,7 @@ export class OverlayRef implements PortalOutlet {
   private readonly _detachments = new Subject<void>();
   private _positionStrategy: PositionStrategy | undefined;
   private _scrollStrategy: ScrollStrategy | undefined;
-  private _locationChanges: SubscriptionLike = Subscription.EMPTY;
+  private _locationChanges: (() => void) | undefined;
   private _backdropRef: BackdropRef | null = null;
   private _detachContentMutationObserver: MutationObserver | undefined;
   private _detachContentAfterRenderRef: AfterRenderRef | undefined;
@@ -194,8 +194,14 @@ export class OverlayRef implements PortalOutlet {
     // Track this overlay by the keyboard dispatcher
     this._keyboardDispatcher.add(this);
 
-    if (this._config.disposeOnNavigation) {
-      this._locationChanges = this._location.subscribe(() => this.dispose());
+    if (
+      this._config.disposeOnNavigation === true ||
+      this._config.disposeOnNavigation === 'pop-state'
+    ) {
+      const subscription = this._location.subscribe(() => this.dispose());
+      this._locationChanges = () => subscription.unsubscribe();
+    } else if (this._config.disposeOnNavigation === 'url-change') {
+      this._locationChanges = this._location.onUrlChange(() => this.dispose());
     }
 
     this._outsideClickDispatcher.add(this);
@@ -258,7 +264,7 @@ export class OverlayRef implements PortalOutlet {
     // Keeping the host element in the DOM can cause scroll jank, because it still gets
     // rendered, even though it's transparent and unclickable which is why we remove it.
     this._detachContentWhenEmpty();
-    this._locationChanges.unsubscribe();
+    this._locationChanges?.();
     this._outsideClickDispatcher.remove(this);
 
     untracked(() => {
@@ -282,7 +288,7 @@ export class OverlayRef implements PortalOutlet {
 
     this._disposeScrollStrategy();
     this._backdropRef?.dispose();
-    this._locationChanges.unsubscribe();
+    this._locationChanges?.();
     this._keyboardDispatcher.remove(this);
     this._portalOutlet.dispose();
     this._attachments.complete();
diff --git a/src/material/bottom-sheet/bottom-sheet-config.ts b/src/material/bottom-sheet/bottom-sheet-config.ts
index 9f25f53c0f5c..8358389b81f6 100644
--- a/src/material/bottom-sheet/bottom-sheet-config.ts
+++ b/src/material/bottom-sheet/bottom-sheet-config.ts
@@ -8,7 +8,7 @@
 
 import {Binding, InjectionToken, Injector, ViewContainerRef} from '@angular/core';
 import {Direction} from '@angular/cdk/bidi';
-import {ScrollStrategy} from '@angular/cdk/overlay';
+import {OverlayDisposeOnNavigation, ScrollStrategy} from '@angular/cdk/overlay';
 import {RestoreFocusValue} from '@angular/cdk/dialog';
 
 /** Options for where to set focus to automatically on dialog open */
@@ -58,12 +58,8 @@ export class MatBottomSheetConfig<D = any> {
    */
   ariaModal?: boolean = false;
 
-  /**
-   * Whether the bottom sheet should close when the user goes backwards/forwards in history.
-   * Note that this usually doesn't include clicking on links (unless the user is using
-   * the `HashLocationStrategy`).
-   */
-  closeOnNavigation?: boolean = true;
+  /** Whether the bottom sheet should be disposed of when the user navigates. */
+  closeOnNavigation?: OverlayDisposeOnNavigation = true;
 
   /**
    * Where the bottom sheet should focus on open.
diff --git a/src/material/dialog/dialog-config.ts b/src/material/dialog/dialog-config.ts
index 0ebf4ee37b68..ea9f5428981d 100644
--- a/src/material/dialog/dialog-config.ts
+++ b/src/material/dialog/dialog-config.ts
@@ -8,7 +8,7 @@
 
 import {ViewContainerRef, Injector, Binding} from '@angular/core';
 import {Direction} from '@angular/cdk/bidi';
-import {ScrollStrategy} from '@angular/cdk/overlay';
+import {OverlayDisposeOnNavigation, ScrollStrategy} from '@angular/cdk/overlay';
 import {DialogConfig, RestoreFocusValue} from '@angular/cdk/dialog';
 
 /** Options for where to set focus to automatically on dialog open */
@@ -138,12 +138,8 @@ export class MatDialogConfig<D = any> {
   /** Scroll strategy to be used for the dialog. */
   scrollStrategy?: ScrollStrategy;
 
-  /**
-   * Whether the dialog should close when the user goes backwards/forwards in history.
-   * Note that this usually doesn't include clicking on links (unless the user is using
-   * the `HashLocationStrategy`).
-   */
-  closeOnNavigation?: boolean = true;
+  /** Whether the bottom sheet should be disposed of when the user navigates. */
+  closeOnNavigation?: OverlayDisposeOnNavigation = true;
 
   /**
    * Duration of the enter animation in ms.