diff --git a/packages/@headlessui-react/src/components/dialog/dialog.test.tsx b/packages/@headlessui-react/src/components/dialog/dialog.test.tsx
index a6b380f71d..26d47950e2 100644
--- a/packages/@headlessui-react/src/components/dialog/dialog.test.tsx
+++ b/packages/@headlessui-react/src/components/dialog/dialog.test.tsx
@@ -11,6 +11,8 @@ import {
   assertDialogTitle,
   getDialog,
   getDialogOverlay,
+  getByText,
+  assertActiveElement,
 } from '../../test-utils/accessibility-assertions'
 import { click, press, Keys } from '../../test-utils/interactions'
 import { Props } from '../../types'
@@ -67,6 +69,17 @@ describe('Safe guards', () => {
 
 describe('Rendering', () => {
   describe('Dialog', () => {
+    it(
+      'should complain when the `open` and `onClose` prop are missing',
+      suppressConsoleLogs(async () => {
+        // @ts-expect-error
+        expect(() => render(<Dialog as="div" />)).toThrowErrorMatchingInlineSnapshot(
+          `"You have to provide an \`open\` and an \`onClose\` prop to the \`Dialog\` component."`
+        )
+        expect.hasAssertions()
+      })
+    )
+
     it(
       'should complain when an `open` prop is provided without an `onClose` prop',
       suppressConsoleLogs(async () => {
@@ -392,4 +405,73 @@ describe('Mouse interactions', () => {
       assertDialog({ state: DialogState.InvisibleUnmounted })
     })
   )
+
+  it(
+    'should be possible to close the dialog, and re-focus the button when we click outside on the body element',
+    suppressConsoleLogs(async () => {
+      function Example() {
+        let [isOpen, setIsOpen] = useState(false)
+        return (
+          <>
+            <button onClick={() => setIsOpen(v => !v)}>Trigger</button>
+            <Dialog open={isOpen} onClose={setIsOpen}>
+              Contents
+              <TabSentinel />
+            </Dialog>
+          </>
+        )
+      }
+      render(<Example />)
+
+      // Open dialog
+      await click(getByText('Trigger'))
+
+      // Verify it is open
+      assertDialog({ state: DialogState.Visible })
+
+      // Click the body to close
+      await click(document.body)
+
+      // Verify it is closed
+      assertDialog({ state: DialogState.InvisibleUnmounted })
+
+      // Verify the button is focused
+      assertActiveElement(getByText('Trigger'))
+    })
+  )
+
+  it(
+    'should be possible to close the dialog, and keep focus on the focusable element',
+    suppressConsoleLogs(async () => {
+      function Example() {
+        let [isOpen, setIsOpen] = useState(false)
+        return (
+          <>
+            <button>Hello</button>
+            <button onClick={() => setIsOpen(v => !v)}>Trigger</button>
+            <Dialog open={isOpen} onClose={setIsOpen}>
+              Contents
+              <TabSentinel />
+            </Dialog>
+          </>
+        )
+      }
+      render(<Example />)
+
+      // Open dialog
+      await click(getByText('Trigger'))
+
+      // Verify it is open
+      assertDialog({ state: DialogState.Visible })
+
+      // Click the button to close (outside click)
+      await click(getByText('Hello'))
+
+      // Verify it is closed
+      assertDialog({ state: DialogState.InvisibleUnmounted })
+
+      // Verify the button is focused
+      assertActiveElement(getByText('Hello'))
+    })
+  )
 })
diff --git a/packages/@headlessui-react/src/components/dialog/dialog.tsx b/packages/@headlessui-react/src/components/dialog/dialog.tsx
index 642fd38a50..2c24c7fd39 100644
--- a/packages/@headlessui-react/src/components/dialog/dialog.tsx
+++ b/packages/@headlessui-react/src/components/dialog/dialog.tsx
@@ -119,6 +119,12 @@ let DialogRoot = forwardRefWithAs(function Dialog<
   // Validations
   let hasOpen = props.hasOwnProperty('open')
   let hasOnClose = props.hasOwnProperty('onClose')
+  if (!hasOpen && !hasOnClose) {
+    throw new Error(
+      `You have to provide an \`open\` and an \`onClose\` prop to the \`Dialog\` component.`
+    )
+  }
+
   if (!hasOpen) {
     throw new Error(
       `You provided an \`onClose\` prop to the \`Dialog\`, but forgot an \`open\` prop.`
@@ -161,6 +167,21 @@ let DialogRoot = forwardRefWithAs(function Dialog<
     [dispatch]
   )
 
+  // Handle outside click
+  useEffect(() => {
+    function handler(event: MouseEvent) {
+      let target = event.target as HTMLElement
+
+      if (dialogState !== DialogStates.Open) return
+      if (internalDialogRef.current?.contains(target)) return
+
+      close()
+    }
+
+    window.addEventListener('mousedown', handler)
+    return () => window.removeEventListener('mousedown', handler)
+  }, [dialogState, internalDialogRef, close])
+
   // Handle `Escape` to close
   useEffect(() => {
     function handler(event: KeyboardEvent) {