diff --git a/src/visualBuilder/generators/generateOverlay.tsx b/src/visualBuilder/generators/generateOverlay.tsx
index ce5da684..e09e9be9 100644
--- a/src/visualBuilder/generators/generateOverlay.tsx
+++ b/src/visualBuilder/generators/generateOverlay.tsx
@@ -216,6 +216,7 @@ interface HideOverlayParams
 }
 
 export function hideOverlay(params: HideOverlayParams): void {
+    VisualBuilder.VisualBuilderGlobalState.value.isFocussed = false;
     const focusElementObserver =
         VisualBuilder.VisualBuilderGlobalState.value.focusElementObserver;
     if (focusElementObserver) {
diff --git a/src/visualBuilder/index.ts b/src/visualBuilder/index.ts
index 1f998948..6b6d005a 100644
--- a/src/visualBuilder/index.ts
+++ b/src/visualBuilder/index.ts
@@ -68,6 +68,7 @@ interface VisualBuilderGlobalStateImpl {
     variant: string | null;
     focusElementObserver: MutationObserver | null;
     referenceParentMap: Record<string, string>;
+    isFocussed: boolean;
 }
 
 let threadsPayload: IThreadDTO[] = [];
@@ -90,6 +91,7 @@ export class VisualBuilder {
             variant: null,
             focusElementObserver: null,
             referenceParentMap: {},
+            isFocussed: false,
         });
 
     private handlePositionChange(editableElement: HTMLElement) {
@@ -425,6 +427,7 @@ export class VisualBuilder {
             variant: null,
             focusElementObserver: null,
             referenceParentMap: {},
+            isFocussed: false,
         };
 
         // Remove DOM elements
diff --git a/src/visualBuilder/listeners/mouseClick.ts b/src/visualBuilder/listeners/mouseClick.ts
index 55d7b27e..d81a1ab7 100644
--- a/src/visualBuilder/listeners/mouseClick.ts
+++ b/src/visualBuilder/listeners/mouseClick.ts
@@ -271,6 +271,7 @@ function addOverlayAndToolbar(
     editableElement: Element,
     isVariant: boolean
 ) {
+    VisualBuilder.VisualBuilderGlobalState.value.isFocussed = true;
     addOverlay({
         overlayWrapper: params.overlayWrapper,
         resizeObserver: params.resizeObserver,
diff --git a/src/visualBuilder/listeners/mouseHover.ts b/src/visualBuilder/listeners/mouseHover.ts
index 3978d820..72ca368f 100644
--- a/src/visualBuilder/listeners/mouseHover.ts
+++ b/src/visualBuilder/listeners/mouseHover.ts
@@ -371,16 +371,19 @@ const throttledMouseHover = throttle(async (params: HandleMouseHoverParams) => {
             fieldPath,
             fieldMetadata,
         });
-        showHoverToolbar({
+        const isFocussed= VisualBuilder.VisualBuilderGlobalState.value.isFocussed;
+        if(!isFocussed) {
+            showHoverToolbar({
             event: params.event,
             overlayWrapper: params.overlayWrapper,
             visualBuilderContainer: params.visualBuilderContainer,
             previousSelectedEditableDOM:
                 VisualBuilder.VisualBuilderGlobalState.value
                     .previousSelectedEditableDOM,
-            focusedToolbar: params.focusedToolbar,
-            resizeObserver: params.resizeObserver,
-        });
+                focusedToolbar: params.focusedToolbar,
+                resizeObserver: params.resizeObserver,
+            });
+        }
     }
 
     if (