diff --git a/src/vs/platform/actions/common/actions.ts b/src/vs/platform/actions/common/actions.ts
index c0a0dd57ab06..e1955010a05b 100644
--- a/src/vs/platform/actions/common/actions.ts
+++ b/src/vs/platform/actions/common/actions.ts
@@ -143,6 +143,7 @@ export class MenuId {
 	static readonly TimelineTitleContext = new MenuId('TimelineTitleContext');
 	static readonly AccountsContext = new MenuId('AccountsContext');
 	static readonly PanelTitle = new MenuId('PanelTitle');
+	static readonly AuxiliaryBarTitle = new MenuId('AuxiliaryBarTitle');
 	static readonly TerminalInstanceContext = new MenuId('TerminalInstanceContext');
 	static readonly TerminalEditorInstanceContext = new MenuId('TerminalEditorInstanceContext');
 	static readonly TerminalNewDropdownContext = new MenuId('TerminalNewDropdownContext');
diff --git a/src/vs/workbench/browser/parts/panel/panelActions.ts b/src/vs/workbench/browser/parts/panel/panelActions.ts
index 7724818163ea..93715f458966 100644
--- a/src/vs/workbench/browser/parts/panel/panelActions.ts
+++ b/src/vs/workbench/browser/parts/panel/panelActions.ts
@@ -13,7 +13,7 @@ import { IWorkbenchActionRegistry, Extensions as WorkbenchExtensions, CATEGORIES
 import { IWorkbenchLayoutService, PanelAlignment, Parts, Position, positionToString } from 'vs/workbench/services/layout/browser/layoutService';
 import { ActivityAction, ToggleCompositePinnedAction, ICompositeBar } from 'vs/workbench/browser/parts/compositeBarActions';
 import { IActivity } from 'vs/workbench/common/activity';
-import { PanelAlignmentContext, PanelMaximizedContext, PanelPositionContext, PanelVisibleContext } from 'vs/workbench/common/contextkeys';
+import { AuxiliaryBarVisibleContext, PanelAlignmentContext, PanelMaximizedContext, PanelPositionContext, PanelVisibleContext } from 'vs/workbench/common/contextkeys';
 import { ContextKeyExpr, ContextKeyExpression } from 'vs/platform/contextkey/common/contextkey';
 import { Codicon } from 'vs/base/common/codicons';
 import { registerIcon } from 'vs/platform/theme/common/iconRegistry';
@@ -391,6 +391,28 @@ registerAction2(class extends Action2 {
 	}
 });
 
+registerAction2(class extends Action2 {
+	constructor() {
+		super({
+			id: 'workbench.action.closeAuxiliaryBar',
+			title: { value: localize('closeSidePanel', "Close Side Panel"), original: 'Close Side Panel' },
+			category: CATEGORIES.View,
+			icon: closeIcon,
+			menu: [{
+				id: MenuId.CommandPalette,
+				when: AuxiliaryBarVisibleContext,
+			}, {
+				id: MenuId.AuxiliaryBarTitle,
+				group: 'navigation',
+				order: 2
+			}]
+		});
+	}
+	run(accessor: ServicesAccessor) {
+		accessor.get(IWorkbenchLayoutService).setPartHidden(true, Parts.AUXILIARYBAR_PART);
+	}
+});
+
 MenuRegistry.appendMenuItems([
 	{
 		id: MenuId.MenubarAppearanceMenu,
diff --git a/src/vs/workbench/browser/parts/panel/panelPart.ts b/src/vs/workbench/browser/parts/panel/panelPart.ts
index a54e908fceec..e671cd4b1448 100644
--- a/src/vs/workbench/browser/parts/panel/panelPart.ts
+++ b/src/vs/workbench/browser/parts/panel/panelPart.ts
@@ -109,6 +109,9 @@ export abstract class BasePanelPart extends CompositePart<PaneComposite> impleme
 	private compositeBar: CompositeBar;
 	private readonly compositeActions = new Map<string, { activityAction: PanelActivityAction; pinnedAction: ToggleCompositePinnedAction }>();
 
+	private globalToolBar: ToolBar | undefined;
+	private globalActions: CompositeMenuActions;
+
 	private readonly panelDisposables: Map<string, IDisposable> = new Map<string, IDisposable>();
 
 	private blockOpeningPanel = false;
@@ -201,6 +204,10 @@ export abstract class BasePanelPart extends CompositePart<PaneComposite> impleme
 
 		this.registerListeners();
 		this.onDidRegisterPanels([...this.getPaneComposites()]);
+
+		// Global Panel Actions
+		this.globalActions = this._register(this.instantiationService.createInstance(CompositeMenuActions, partId === Parts.PANEL_PART ? MenuId.PanelTitle : MenuId.AuxiliaryBarTitle, undefined, undefined));
+		this._register(this.globalActions.onDidChange(() => this.updateGlobalToolbarActions()));
 	}
 
 	protected abstract getActivityHoverOptions(): IActivityHoverOptions;
@@ -520,6 +527,24 @@ export abstract class BasePanelPart extends CompositePart<PaneComposite> impleme
 		}));
 	}
 
+	override createTitleArea(parent: HTMLElement): HTMLElement {
+		const element = super.createTitleArea(parent);
+		const globalTitleActionsContainer = element.appendChild($('.global-actions'));
+
+		// Global Actions Toolbar
+		this.globalToolBar = this._register(new ToolBar(globalTitleActionsContainer, this.contextMenuService, {
+			actionViewItemProvider: action => this.actionViewItemProvider(action),
+			orientation: ActionsOrientation.HORIZONTAL,
+			getKeyBinding: action => this.keybindingService.lookupKeybinding(action.id),
+			anchorAlignmentProvider: () => this.getTitleAreaDropDownAnchorAlignment(),
+			toggleMenuTitle: localize('moreActions', "More Actions...")
+		}));
+
+		this.updateGlobalToolbarActions();
+
+		return element;
+	}
+
 	override updateStyles(): void {
 		super.updateStyles();
 
@@ -685,6 +710,15 @@ export abstract class BasePanelPart extends CompositePart<PaneComposite> impleme
 		return viewContainer && this.viewDescriptorService.getViewContainerLocation(viewContainer) === this.viewContainerLocation ? viewContainer : undefined;
 	}
 
+	private updateGlobalToolbarActions(): void {
+		const primaryActions = this.globalActions.getPrimaryActions();
+		const secondaryActions = this.globalActions.getSecondaryActions();
+
+		if (this.globalToolBar) {
+			this.globalToolBar.setActions(prepareActions(primaryActions), prepareActions(secondaryActions));
+		}
+	}
+
 	private getCompositeActions(compositeId: string): { activityAction: PanelActivityAction; pinnedAction: ToggleCompositePinnedAction } {
 		let compositeActions = this.compositeActions.get(compositeId);
 		if (!compositeActions) {
@@ -732,7 +766,7 @@ export abstract class BasePanelPart extends CompositePart<PaneComposite> impleme
 			return 0;
 		}
 
-		return this.toolBar.getItemsWidth();
+		return this.toolBar.getItemsWidth() + (this.globalToolBar?.getItemsWidth() ?? 0);
 	}
 
 	private onDidStorageValueChange(e: IStorageValueChangeEvent): void {
@@ -866,9 +900,6 @@ export class PanelPart extends BasePanelPart {
 	static readonly pinnedPanelsKey = 'workbench.panel.pinnedPanels';
 	static readonly placeholdeViewContainersKey = 'workbench.panel.placeholderPanels';
 
-	private globalToolBar: ToolBar | undefined;
-	private globalActions: CompositeMenuActions;
-
 	constructor(
 		@INotificationService notificationService: INotificationService,
 		@IStorageService storageService: IStorageService,
@@ -908,10 +939,6 @@ export class PanelPart extends BasePanelPart {
 				hasTitle: true
 			},
 		);
-
-		// Global Panel Actions
-		this.globalActions = this._register(this.instantiationService.createInstance(CompositeMenuActions, MenuId.PanelTitle, undefined, undefined));
-		this._register(this.globalActions.onDidChange(() => this.updateGlobalToolbarActions()));
 	}
 
 	override updateStyles(): void {
@@ -947,28 +974,6 @@ export class PanelPart extends BasePanelPart {
 		]);
 	}
 
-	override createTitleArea(parent: HTMLElement): HTMLElement {
-		const element = super.createTitleArea(parent);
-		const globalTitleActionsContainer = element.appendChild($('.global-actions'));
-
-		// Global Actions Toolbar
-		this.globalToolBar = this._register(new ToolBar(globalTitleActionsContainer, this.contextMenuService, {
-			actionViewItemProvider: action => this.actionViewItemProvider(action),
-			orientation: ActionsOrientation.HORIZONTAL,
-			getKeyBinding: action => this.keybindingService.lookupKeybinding(action.id),
-			anchorAlignmentProvider: () => this.getTitleAreaDropDownAnchorAlignment(),
-			toggleMenuTitle: localize('moreActions', "More Actions...")
-		}));
-
-		this.updateGlobalToolbarActions();
-
-		return element;
-	}
-
-	override getToolbarWidth(): number {
-		return super.getToolbarWidth() + (this.globalToolBar?.getItemsWidth() ?? 0);
-	}
-
 	override layout(width: number, height: number, top: number, left: number): void {
 		let dimensions: Dimension;
 		if (this.layoutService.getPanelPosition() === Position.RIGHT) {
@@ -981,15 +986,6 @@ export class PanelPart extends BasePanelPart {
 		super.layout(dimensions.width, dimensions.height, top, left);
 	}
 
-	private updateGlobalToolbarActions(): void {
-		const primaryActions = this.globalActions.getPrimaryActions();
-		const secondaryActions = this.globalActions.getSecondaryActions();
-
-		if (this.globalToolBar) {
-			this.globalToolBar.setActions(prepareActions(primaryActions), prepareActions(secondaryActions));
-		}
-	}
-
 	toJSON(): object {
 		return {
 			type: Parts.PANEL_PART