diff --git a/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs b/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs
index dcfe0432a8..3d65e7e4ba 100644
--- a/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs
+++ b/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs
@@ -1,6 +1,7 @@
 // Copyright (c) ppy Pty Ltd <contact@ppy.sh>. Licensed under the MIT Licence.
 // See the LICENCE file in the repository root for full licence text.
 
+using NUnit.Framework;
 using osu.Framework.Allocation;
 using osu.Framework.Bindables;
 using osu.Framework.Graphics;
@@ -13,13 +14,12 @@ namespace osu.Game.Tests.Visual.Online
     public class TestSceneAccountCreationOverlay : OsuTestScene
     {
         private readonly Container userPanelArea;
+        private readonly AccountCreationOverlay accountCreation;
 
         private IBindable<User> localUser;
 
         public TestSceneAccountCreationOverlay()
         {
-            AccountCreationOverlay accountCreation;
-
             Children = new Drawable[]
             {
                 accountCreation = new AccountCreationOverlay(),
@@ -31,8 +31,6 @@ namespace osu.Game.Tests.Visual.Online
                     Origin = Anchor.TopRight,
                 },
             };
-
-            AddStep("show", () => accountCreation.Show());
         }
 
         [BackgroundDependencyLoader]
@@ -42,8 +40,19 @@ namespace osu.Game.Tests.Visual.Online
 
             localUser = API.LocalUser.GetBoundCopy();
             localUser.BindValueChanged(user => { userPanelArea.Child = new UserGridPanel(user.NewValue) { Width = 200 }; }, true);
+        }
 
-            AddStep("logout", API.Logout);
+        [Test]
+        public void TestOverlayVisibility()
+        {
+            AddStep("start hidden", () => accountCreation.Hide());
+            AddStep("log out", API.Logout);
+
+            AddStep("show manually", () => accountCreation.Show());
+            AddUntilStep("overlay is visible", () => accountCreation.State.Value == Visibility.Visible);
+
+            AddStep("log back in", () => API.Login("dummy", "password"));
+            AddUntilStep("overlay is hidden", () => accountCreation.State.Value == Visibility.Hidden);
         }
     }
 }
diff --git a/osu.Game/Overlays/AccountCreationOverlay.cs b/osu.Game/Overlays/AccountCreationOverlay.cs
index 58ede5502a..3084c7475a 100644
--- a/osu.Game/Overlays/AccountCreationOverlay.cs
+++ b/osu.Game/Overlays/AccountCreationOverlay.cs
@@ -9,6 +9,7 @@ using osu.Framework.Graphics.Containers;
 using osu.Framework.Graphics.Effects;
 using osu.Framework.Graphics.Shapes;
 using osu.Framework.Screens;
+using osu.Framework.Threading;
 using osu.Game.Graphics;
 using osu.Game.Graphics.Containers;
 using osu.Game.Online.API;
@@ -93,6 +94,11 @@ namespace osu.Game.Overlays
 
             if (welcomeScreen.GetChildScreen() != null)
                 welcomeScreen.MakeCurrent();
+
+            // there might be a stale scheduled hide from a previous API state change.
+            // cancel it here so that the overlay is not hidden again after one frame.
+            scheduledHide?.Cancel();
+            scheduledHide = null;
         }
 
         protected override void PopOut()
@@ -101,7 +107,9 @@ namespace osu.Game.Overlays
             this.FadeOut(100);
         }
 
-        private void apiStateChanged(ValueChangedEvent<APIState> state) => Schedule(() =>
+        private ScheduledDelegate scheduledHide;
+
+        private void apiStateChanged(ValueChangedEvent<APIState> state)
         {
             switch (state.NewValue)
             {
@@ -113,9 +121,10 @@ namespace osu.Game.Overlays
                     break;
 
                 case APIState.Online:
-                    Hide();
+                    scheduledHide?.Cancel();
+                    scheduledHide = Schedule(Hide);
                     break;
             }
-        });
+        }
     }
 }