diff --git a/src/main.ts b/src/main.ts
index b3426fe..53015b8 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -464,21 +464,25 @@ export default class VariantEditor extends Plugin {
       new TextInputModal(
         this.app,
         initialText,
-        (variantText, activeIndex, commitVariant, currentFrom, currentTo) => {
+        (variantText, activeIndex, commitVariant, currentFrom, currentTo, modalClosed) => {
           // Use the updated cursor positions if provided, otherwise use the original positions
           const updateFrom = currentFrom || from;
           const updateTo = currentTo || to;
           
-          if (commitVariant) {
-            // Replace the variant with just the active variant text
+          if (modalClosed) {
+            // Modal was closed without committing (via ESC key or clicking outside)
+            // Clear the highlights
+            this.clearHighlight();
+          } else if (commitVariant === true) {
+            // Replace the variant with just the active variant text (commit action)
             if (variantText) {
               editor.replaceRange(variantText, updateFrom, updateTo);
               new Notice(`Committed variant: "${variantText}"`);
-              // Only clear highlights when committing
+              // Clear highlights when committing
               this.clearHighlight();
             }
           } else {
-            // Create or update the variant syntax
+            // Create or update the variant syntax (normal variant creation/update)
             const variants = variantText.split('|').filter(v => v);
             
             if (variants.length > 0) {
diff --git a/src/modals/TextInputModal.ts b/src/modals/TextInputModal.ts
index ad78d89..5846c44 100644
--- a/src/modals/TextInputModal.ts
+++ b/src/modals/TextInputModal.ts
@@ -8,7 +8,7 @@ export class TextInputModal extends Modal {
   private variants: string[] = [];
   private activeVariantIndex: number = 0;
   private lastNonEmptyVariantIndex: number = 0; // Track the last non-empty variant index
-  private onSubmit: (result: string, activeIndex?: number, commitVariant?: boolean, currentFrom?: EditorPosition | null, currentTo?: EditorPosition | null) => void;
+  private onSubmit: (result: string, activeIndex?: number, commitVariant?: boolean, currentFrom?: EditorPosition | null, currentTo?: EditorPosition | null, modalClosed?: boolean) => void;
   private originalText: string;
   private variantContainer: HTMLElement;
   private cursorPosition: EditorPosition | null;
@@ -19,7 +19,7 @@ export class TextInputModal extends Modal {
   constructor(
     app: App, 
     originalText: string,
-    onSubmit: (result: string, activeIndex?: number, commitVariant?: boolean, currentFrom?: EditorPosition | null, currentTo?: EditorPosition | null) => void,
+    onSubmit: (result: string, activeIndex?: number, commitVariant?: boolean, currentFrom?: EditorPosition | null, currentTo?: EditorPosition | null, modalClosed?: boolean) => void,
     cursorPosition: EditorPosition | null = null,
     initialActiveIndex: number = 0,
     currentFrom: EditorPosition | null = null,
@@ -535,5 +535,9 @@ export class TextInputModal extends Modal {
   onClose() {
     const {contentEl} = this;
     contentEl.empty();
+    
+    // Notify the parent that the modal was closed without committing
+    // We pass an explicit modalClosed=true flag to indicate this was triggered by modal closing
+    this.onSubmit(this.variants[this.activeVariantIndex], this.activeVariantIndex, false, this.currentFrom, this.currentTo, true);
   }
 }