diff --git a/src/Files.App/Program.cs b/src/Files.App/Program.cs
index c156aff16d73..513a0a0eeaba 100644
--- a/src/Files.App/Program.cs
+++ b/src/Files.App/Program.cs
@@ -42,7 +42,7 @@ private static void Main()
 			WinRT.ComWrappersSupport.InitializeComWrappers();
 
 			var proc = Process.GetCurrentProcess();
-			var alwaysOpenNewInstance = ApplicationData.Current.LocalSettings.Values.Get("AlwaysOpenANewInstance", false);
+			var OpenTabInExistingInstance = ApplicationData.Current.LocalSettings.Values.Get("OpenTabInExistingInstance", true);
 			var activatedArgs = AppInstance.GetCurrent().GetActivatedEventArgs();
 
 			if (activatedArgs.Data is ICommandLineActivatedEventArgs cmdLineArgs)
@@ -76,7 +76,7 @@ private static void Main()
 
 				// Always open a new instance for OpenDialog, never open new instance for "-Tag" command
 				if (parsedCommands is null || !parsedCommands.Any(x => x.Type == ParsedCommandType.OutputPath) &&
-					(!alwaysOpenNewInstance || parsedCommands.Any(x => x.Type == ParsedCommandType.TagFiles)))
+					(OpenTabInExistingInstance || parsedCommands.Any(x => x.Type == ParsedCommandType.TagFiles)))
 				{
 					var activePid = ApplicationData.Current.LocalSettings.Values.Get("INSTANCE_ACTIVE", -1);
 					var instance = AppInstance.FindOrRegisterForKey(activePid.ToString());
@@ -102,7 +102,7 @@ private static void Main()
 				}
 			}
 
-			if (!alwaysOpenNewInstance)
+			if (OpenTabInExistingInstance)
 			{
 				if (activatedArgs.Data is ILaunchActivatedEventArgs launchArgs)
 				{
@@ -117,7 +117,8 @@ private static void Main()
 				else if (activatedArgs.Data is IProtocolActivatedEventArgs protocolArgs)
 				{
 					var parsedArgs = protocolArgs.Uri.Query.TrimStart('?').Split('=');
-					if (parsedArgs.Length == 2 && parsedArgs[0] == "cmd") // Treat as command line launch
+					if ((parsedArgs.Length == 2 && parsedArgs[0] == "cmd") ||
+						parsedArgs.Length == 1) // Treat Win+E & Open file location as command line launch
 					{
 						var activePid = ApplicationData.Current.LocalSettings.Values.Get("INSTANCE_ACTIVE", -1);
 						var instance = AppInstance.FindOrRegisterForKey(activePid.ToString());
diff --git a/src/Files.App/Services/Settings/GeneralSettingsService.cs b/src/Files.App/Services/Settings/GeneralSettingsService.cs
index 70068317a42d..500104296415 100644
--- a/src/Files.App/Services/Settings/GeneralSettingsService.cs
+++ b/src/Files.App/Services/Settings/GeneralSettingsService.cs
@@ -43,9 +43,9 @@ public bool OpenNewTabOnStartup
 			set => Set(value);
 		}
 
-		public bool AlwaysOpenNewInstance
+		public bool OpenTabInExistingInstance
 		{
-			get => Get(false);
+			get => Get(true);
 			set => Set(value);
 		}
 
@@ -241,7 +241,7 @@ protected override void RaiseOnSettingChangedEvent(object sender, SettingChanged
 				case nameof(OpenSpecificPageOnStartup):
 				case nameof(ContinueLastSessionOnStartUp):
 				case nameof(OpenNewTabOnStartup):
-				case nameof(AlwaysOpenNewInstance):
+				case nameof(OpenTabInExistingInstance):
 				case nameof(AlwaysOpenDualPaneInNewTab):
 				case nameof(ShowQuickAccessWidget):
 				case nameof(ShowRecentFilesWidget):
diff --git a/src/Files.App/Strings/en-US/Resources.resw b/src/Files.App/Strings/en-US/Resources.resw
index 2658f5805254..ddb3791ccaf6 100644
--- a/src/Files.App/Strings/en-US/Resources.resw
+++ b/src/Files.App/Strings/en-US/Resources.resw
@@ -1815,8 +1815,8 @@
   <data name="RestoreDefault" xml:space="preserve">
     <value>Restore default</value>
   </data>
-  <data name="OpenNewInstance" xml:space="preserve">
-    <value>Open new instance when opening directories from the taskbar jumplist</value>
+  <data name="OpenTabInExistingInstance" xml:space="preserve">
+    <value>Open tab in existing instance when opening Files from another app</value>
   </data>
   <data name="StartupSettings" xml:space="preserve">
     <value>Startup settings</value>
diff --git a/src/Files.App/ViewModels/Settings/GeneralViewModel.cs b/src/Files.App/ViewModels/Settings/GeneralViewModel.cs
index 3e0aed126b8c..f3f0246ede54 100644
--- a/src/Files.App/ViewModels/Settings/GeneralViewModel.cs
+++ b/src/Files.App/ViewModels/Settings/GeneralViewModel.cs
@@ -222,17 +222,17 @@ public ReadOnlyCollection<IMenuFlyoutItemViewModel> AddFlyoutItemsSource
 			set => SetProperty(ref addFlyoutItemsSource, value);
 		}
 
-		public bool AlwaysOpenANewInstance
+		public bool OpenTabInExistingInstance
 		{
-			get => UserSettingsService.GeneralSettingsService.AlwaysOpenNewInstance;
+			get => UserSettingsService.GeneralSettingsService.OpenTabInExistingInstance;
 			set
 			{
-				if (value != UserSettingsService.GeneralSettingsService.AlwaysOpenNewInstance)
+				if (value != UserSettingsService.GeneralSettingsService.OpenTabInExistingInstance)
 				{
-					UserSettingsService.GeneralSettingsService.AlwaysOpenNewInstance = value;
+					UserSettingsService.GeneralSettingsService.OpenTabInExistingInstance = value;
 
 					// Needed in Program.cs
-					ApplicationData.Current.LocalSettings.Values["AlwaysOpenANewInstance"] = value;
+					ApplicationData.Current.LocalSettings.Values["OpenTabInExistingInstance"] = value;
 
 					OnPropertyChanged();
 				}
diff --git a/src/Files.App/Views/Settings/GeneralPage.xaml b/src/Files.App/Views/Settings/GeneralPage.xaml
index 4dc9b32b318d..f338209ad8d9 100644
--- a/src/Files.App/Views/Settings/GeneralPage.xaml
+++ b/src/Files.App/Views/Settings/GeneralPage.xaml
@@ -190,10 +190,10 @@
 							</ListView>
 						</Grid>
 
-						<local:SettingsBlockControl Title="{helpers:ResourceString Name=OpenNewInstance}" HorizontalAlignment="Stretch">
+						<local:SettingsBlockControl Title="{helpers:ResourceString Name=OpenTabInExistingInstance}" HorizontalAlignment="Stretch">
 							<ToggleSwitch
-								AutomationProperties.Name="{helpers:ResourceString Name=OpenNewInstance}"
-								IsOn="{x:Bind ViewModel.AlwaysOpenANewInstance, Mode=TwoWay}"
+								AutomationProperties.Name="{helpers:ResourceString Name=OpenTabInExistingInstance}"
+								IsOn="{x:Bind ViewModel.OpenTabInExistingInstance, Mode=TwoWay}"
 								Style="{StaticResource RightAlignedToggleSwitchStyle}" />
 						</local:SettingsBlockControl>
 					</StackPanel>
diff --git a/src/Files.Core/Services/Settings/IGeneralSettingsService.cs b/src/Files.Core/Services/Settings/IGeneralSettingsService.cs
index 61903a29d441..a6e0e5ae626d 100644
--- a/src/Files.Core/Services/Settings/IGeneralSettingsService.cs
+++ b/src/Files.Core/Services/Settings/IGeneralSettingsService.cs
@@ -35,9 +35,9 @@ public interface IGeneralSettingsService : IBaseSettingsService, INotifyProperty
 		bool OpenNewTabOnStartup { get; set; }
 
 		/// <summary>
-		/// Gets or sets a value indicating whether or not opening the app from the jumplist should open the directory in a new instance.
+		/// Gets or sets a value indicating whether or not opening Files from another app should open a tab in the existing instance.
 		/// </summary>
-		bool AlwaysOpenNewInstance { get; set; }
+		bool OpenTabInExistingInstance { get; set; }
 
 		/// <summary>
 		/// A list containing all paths to open at startup.