diff --git a/Packages/com.unity.inputsystem/CHANGELOG.md b/Packages/com.unity.inputsystem/CHANGELOG.md
index 4dc3ca5256..7413f5bb55 100644
--- a/Packages/com.unity.inputsystem/CHANGELOG.md
+++ b/Packages/com.unity.inputsystem/CHANGELOG.md
@@ -46,6 +46,7 @@ however, it has to be formatted properly to pass verification tests.
 ### Changed
 - For Unity 6.0 and above, when an `EventSystem` GameObject is created in the Editor it will have the
 `InputSystemUIInputModule` by default if the Input System package is installed and enabled.
+- Added information to the 'Restart Editor' dialog to clarify impact on packages pending import [ISXB-608](https://issuetracker.unity3d.com/product/unity/issues/guid/ISXB-608).
 
 ## [1.8.1] - 2024-03-14
 
diff --git a/Packages/com.unity.inputsystem/InputSystem/InputSystem.cs b/Packages/com.unity.inputsystem/InputSystem/InputSystem.cs
index c7f78b18bd..ae233609f1 100644
--- a/Packages/com.unity.inputsystem/InputSystem/InputSystem.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/InputSystem.cs
@@ -3599,11 +3599,12 @@ internal static void InitializeInEditor(IInputRuntime runtime = null)
                 !EditorPlayerSettingHelpers.newSystemBackendsEnabled &&
                 !s_Manager.m_Runtime.isInBatchMode)
             {
-                const string dialogText = "This project is using the new input system package but the native platform backends for the new input system are not enabled in the player settings. " +
-                    "This means that no input from native devices will come through." +
-                    "\n\nDo you want to enable the backends? Doing so will *RESTART* the editor.";
+                const string dialogText =
+                    "Unity is importing the newer Input System package, but the older Input Manager is currently active. The Input System package needs to enable the newer system and and restart the Editor now.\r\n" +
+                    "If you don't enable and restart now, the old input manager will remain active, and the Input System package won't work correctly.\r\n" +
+                    "Note: If you were installing a different package (such as an Asset Store package) for which the Input System is a dependency, this restart will interrupt the import process. This means once the Editor has restarted, you must return to the Package Manager window and import your intended package again to finish the import process.";
 
-                if (EditorUtility.DisplayDialog("Warning", dialogText, "Yes", "No"))
+                if (EditorUtility.DisplayDialog("Warning", dialogText, "Enable and restart Editor now", "Cancel"))
                 {
                     EditorPlayerSettingHelpers.newSystemBackendsEnabled = true;
                     EditorHelpers.RestartEditorAndRecompileScripts();