diff --git a/app/src/main/java/org/mozilla/fenix/addons/AddonsManagementFragment.kt b/app/src/main/java/org/mozilla/fenix/addons/AddonsManagementFragment.kt
index 5c15d1485..b19afb3bf 100644
--- a/app/src/main/java/org/mozilla/fenix/addons/AddonsManagementFragment.kt
+++ b/app/src/main/java/org/mozilla/fenix/addons/AddonsManagementFragment.kt
@@ -18,7 +18,6 @@ import androidx.recyclerview.widget.LinearLayoutManager
 import kotlinx.android.synthetic.main.fragment_add_ons_management.*
 import kotlinx.android.synthetic.main.fragment_add_ons_management.view.*
 import kotlinx.android.synthetic.main.overlay_add_on_progress.view.*
-import kotlinx.coroutines.CoroutineScope
 import kotlinx.coroutines.Dispatchers
 import kotlinx.coroutines.Dispatchers.IO
 import kotlinx.coroutines.launch
@@ -35,6 +34,7 @@ import org.mozilla.fenix.ext.getRootView
 import org.mozilla.fenix.ext.settings
 import org.mozilla.fenix.ext.showToolbar
 import org.mozilla.fenix.theme.ThemeManager
+import java.util.concurrent.CancellationException
 
 /**
  * Fragment use for managing add-ons.
@@ -46,7 +46,6 @@ class AddonsManagementFragment : Fragment(R.layout.fragment_add_ons_management),
      * Whether or not an add-on installation is in progress.
      */
     private var isInstallationInProgress = false
-    private var scope: CoroutineScope? = null
     private var adapter: AddonsManagerAdapter? = null
 
     override fun onViewCreated(view: View, savedInstanceState: Bundle?) {
@@ -244,7 +243,7 @@ class AddonsManagementFragment : Fragment(R.layout.fragment_add_ons_management),
 
         isInstallationInProgress = true
 
-        requireContext().components.addonManager.installAddon(
+        val installOperation = requireContext().components.addonManager.installAddon(
             addon,
             onSuccess = {
                 runIfFragmentIsAttached {
@@ -254,21 +253,33 @@ class AddonsManagementFragment : Fragment(R.layout.fragment_add_ons_management),
                     showInstallationDialog(it)
                 }
             },
-            onError = { _, _ ->
+            onError = { _, e ->
                 this@AddonsManagementFragment.view?.let { view ->
-                    val rootView = activity?.getRootView() ?: view
-                    showSnackBar(
-                        rootView,
-                        getString(
-                            R.string.mozac_feature_addons_failed_to_install,
-                            addon.translatedName
+                    // No need to display an error message if installation was cancelled by the user.
+                    if (e !is CancellationException) {
+                        val rootView = activity?.getRootView() ?: view
+                        showSnackBar(
+                            rootView,
+                            getString(
+                                R.string.mozac_feature_addons_failed_to_install,
+                                addon.translatedName
+                            )
                         )
-                    )
+                    }
                     addonProgressOverlay?.visibility = View.GONE
                     isInstallationInProgress = false
                 }
             }
         )
+
+        addonProgressOverlay.cancel_button.setOnClickListener {
+            lifecycleScope.launch(Dispatchers.Main) {
+                // Hide the installation progress overlay once cancellation is successful.
+                if (installOperation.cancel().await()) {
+                    addonProgressOverlay.visibility = View.GONE
+                }
+            }
+        }
     }
 
     private fun announceForAccessibility(announcementText: CharSequence) {
diff --git a/app/src/main/res/layout/overlay_add_on_progress.xml b/app/src/main/res/layout/overlay_add_on_progress.xml
index 78b23384c..bfd2105d7 100644
--- a/app/src/main/res/layout/overlay_add_on_progress.xml
+++ b/app/src/main/res/layout/overlay_add_on_progress.xml
@@ -9,16 +9,34 @@
     android:layout_height="wrap_content"
     android:elevation="1dp">
 
-    <TextView
-        android:id="@+id/add_ons_overlay_text"
-        android:layout_width="wrap_content"
-        android:layout_height="wrap_content"
-        android:layout_marginStart="8dp"
-        android:layout_marginEnd="8dp"
-        android:drawablePadding="8dp"
-        android:gravity="start|center_vertical"
-        android:padding="16dp"
-        android:text="@string/mozac_add_on_install_progress_caption"
-        app:drawableStartCompat="@drawable/mozac_ic_extensions_black" />
+    <RelativeLayout
+        android:layout_width="match_parent"
+        android:layout_height="wrap_content">
+
+        <TextView
+            android:id="@+id/add_ons_overlay_text"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:layout_marginStart="8dp"
+            android:layout_marginEnd="8dp"
+            android:drawablePadding="8dp"
+            android:gravity="start|center_vertical"
+            android:padding="16dp"
+            android:text="@string/mozac_add_on_install_progress_caption"
+            app:drawableStartCompat="@drawable/mozac_ic_extensions_black" />
+
+        <Button
+            android:id="@+id/cancel_button"
+            style="?android:attr/borderlessButtonStyle"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:layout_below="@id/add_ons_overlay_text"
+            android:layout_alignParentEnd="true"
+            android:layout_marginEnd="16dp"
+            android:layout_marginBottom="16dp"
+            android:text="@string/mozac_feature_addons_install_addon_dialog_cancel"
+            android:textAllCaps="false" />
+
+    </RelativeLayout>
 
 </androidx.cardview.widget.CardView>