diff --git a/packages/super-editor/src/assets/styles/elements/prosemirror.css b/packages/super-editor/src/assets/styles/elements/prosemirror.css
index 3ff27ae555..2974f17ee6 100644
--- a/packages/super-editor/src/assets/styles/elements/prosemirror.css
+++ b/packages/super-editor/src/assets/styles/elements/prosemirror.css
@@ -353,7 +353,10 @@ https://github.com/ProseMirror/prosemirror-tables/blob/master/demo/index.html
 .ProseMirror-active-search-match {
   background-color: #ff6a0054;
 }
-
-.ProseMirror span::selection {
+.ProseMirror span.sd-custom-selection::selection {
   background: transparent;
 }
+.sd-custom-selection {
+  background-color: #d9d9d9;
+  border-radius: 0.1em;
+}
diff --git a/packages/super-editor/src/assets/styles/extensions/comments.css b/packages/super-editor/src/assets/styles/extensions/comments.css
index 4d1c9b71c1..567b92fdea 100644
--- a/packages/super-editor/src/assets/styles/extensions/comments.css
+++ b/packages/super-editor/src/assets/styles/extensions/comments.css
@@ -5,3 +5,7 @@
 .sd-editor-comment-highlight:hover {
   background-color: #1354ff55;
 }
+
+.sd-editor-comment-highlight.sd-custom-selection {
+  background-color: #d6c0c6 !important;
+}
diff --git a/packages/super-editor/src/assets/styles/extensions/list-items.css b/packages/super-editor/src/assets/styles/extensions/list-items.css
index 2a04e3ef2a..518ff2a223 100644
--- a/packages/super-editor/src/assets/styles/extensions/list-items.css
+++ b/packages/super-editor/src/assets/styles/extensions/list-items.css
@@ -21,5 +21,5 @@
 
 /* temporary fix */
 .sd-editor-list-item-node-view .sd-custom-selection {
-  font-size: inherit!important;
+  font-size: inherit !important;
 }
diff --git a/packages/super-editor/src/assets/styles/layout/global.css b/packages/super-editor/src/assets/styles/layout/global.css
index c3925ca2d3..88af04c038 100644
--- a/packages/super-editor/src/assets/styles/layout/global.css
+++ b/packages/super-editor/src/assets/styles/layout/global.css
@@ -14,7 +14,3 @@
 a {
   text-decoration: auto;
 }
-
-.sd-custom-selection {
-  background-color: #accef7;
-}
diff --git a/packages/super-editor/src/components/SuperEditor.vue b/packages/super-editor/src/components/SuperEditor.vue
index 96b8a844eb..ed37b6fc5c 100644
--- a/packages/super-editor/src/components/SuperEditor.vue
+++ b/packages/super-editor/src/components/SuperEditor.vue
@@ -1,7 +1,7 @@
 <script setup>
 import 'tippy.js/dist/tippy.css';
 import { NSkeleton } from 'naive-ui';
-import { ref, onMounted, onBeforeUnmount, shallowRef, reactive, markRaw, onDeactivated } from 'vue';
+import { ref, onMounted, onBeforeUnmount, shallowRef, reactive, markRaw } from 'vue';
 import { Editor } from '@/index.js';
 import { getStarterExtensions } from '@extensions/index.js';
 import SlashMenu from './slash-menu/SlashMenu.vue';
@@ -223,26 +223,9 @@ const handleSuperEditorClick = (event) => {
   }
 };
 
-const handleClickOutside = (event) => {
-  const pmElement = editorElem.value?.querySelector('.ProseMirror');
-  const isInsideEditor = pmElement?.contains(event.target);
-
-  if (!isInsideEditor) {
-    editor.value?.setOptions({
-      focusTarget: event.target,
-    });
-  }
-};
-
 onMounted(() => {
   initializeData();
   if (props.options?.suppressSkeletonLoader || !props.options?.collaborationProvider) editorReady.value = true;
-
-  document.addEventListener('mousedown', handleClickOutside);
-});
-
-onDeactivated(() => {
-  document.removeEventListener('mousedown', handleClickOutside);
 });
 
 const handleMarginClick = (event) => {
diff --git a/packages/super-editor/src/extensions/custom-selection/custom-selection.js b/packages/super-editor/src/extensions/custom-selection/custom-selection.js
index 43d1472b54..83b4ed57df 100644
--- a/packages/super-editor/src/extensions/custom-selection/custom-selection.js
+++ b/packages/super-editor/src/extensions/custom-selection/custom-selection.js
@@ -1,41 +1,69 @@
 import { Extension } from '@core/Extension.js';
-import { AllSelection, Plugin, PluginKey, TextSelection } from 'prosemirror-state';
+import { Plugin, PluginKey, TextSelection } from 'prosemirror-state';
 import { Decoration, DecorationSet } from 'prosemirror-view';
 
 export const CustomSelectionPluginKey = new PluginKey('CustomSelection');
 
+const handleClickOutside = (event, editor) => {
+  const editorElem = editor?.options?.element;
+  if (!editorElem) return;
+
+  const isInsideEditor = editorElem?.contains(event.target);
+
+  if (!isInsideEditor) {
+    editor.setOptions({
+      focusTarget: event.target,
+    });
+  } else {
+    editor.setOptions({
+      focusTarget: null,
+    });
+  }
+};
+
+function getFocusMeta(tr) {
+  return tr.getMeta(CustomSelectionPluginKey);
+}
+
+function setFocusMeta(tr, value) {
+  return tr.setMeta(CustomSelectionPluginKey, value);
+}
+
+function getFocusState(state) {
+  return CustomSelectionPluginKey.getState(state);
+}
+
 export const CustomSelection = Extension.create({
   name: 'customSelection',
-
   addPmPlugins() {
+    const editor = this.editor;
     const customSelectionPlugin = new Plugin({
       key: CustomSelectionPluginKey,
-
       state: {
-        init() {
-          return DecorationSet.empty;
+        init: () => false,
+        apply: (tr, value) => {
+          return getFocusMeta(tr) ?? value;
         },
-        apply(tr, oldDecorationSet, oldState, newState) {
-          const sel = tr.selection;
-          let newDecos = [];
-
-          // Only apply to text selections or whole doc selections
-          if (sel.from !== sel.to && (tr.doc.resolve(sel.from).parent.isTextblock || sel instanceof AllSelection)) {
-            newDecos.push(
-              Decoration.inline(sel.from, sel.to, {
-                class: 'sd-custom-selection',
-              }),
-            );
-          }
+      },
+      view: () => {
+        document?.addEventListener('mousedown', (event) => handleClickOutside(event, editor));
 
-          return DecorationSet.create(newState.doc, newDecos);
-        },
+        return {
+          destroy: () => {
+            document?.removeEventListener('mouseout', handleClickOutside);
+          },
+        };
       },
       props: {
         handleDOMEvents: {
-          focusout: (view, event) => {
-            const isDropDownOption = this.editor.options.focusTarget?.getAttribute('data-dropdown-option');
-            if (document.activeElement && !event.relatedTarget && !view.state.selection.empty && !isDropDownOption) {
+          mousedown: (view) => {
+            const { selection } = view.state;
+            const isToolbarButton = this.editor.options.focusTarget?.closest('.toolbar-button');
+
+            if (!isToolbarButton) {
+              view.dispatch(setFocusMeta(view.state.tr, false));
+            }
+            if (!selection.empty) {
               this.editor.setOptions({
                 lastSelection: view.state.selection,
               });
@@ -43,11 +71,40 @@ export const CustomSelection = Extension.create({
 
               view.dispatch(clearSelectionTr);
             }
-            return false;
+          },
+          focus: (view) => {
+            const isToolbarButton = this.editor.options.focusTarget?.closest('.toolbar-button');
+
+            if (isToolbarButton) {
+              return;
+            }
+
+            view.dispatch(setFocusMeta(view.state.tr, false));
+          },
+
+          blur: (view) => {
+            const isToolbarButton = this.editor.options.focusTarget?.closest('.toolbar-button');
+
+            if (isToolbarButton) {
+              view.dispatch(setFocusMeta(view.state.tr, true));
+              return;
+            }
+
+            view.dispatch(setFocusMeta(view.state.tr, false));
           },
         },
-        decorations(state) {
-          return CustomSelectionPluginKey.getState(state);
+        decorations: (state) => {
+          const { selection, doc } = state;
+
+          if (selection.empty || !getFocusState(state)) {
+            return null;
+          }
+
+          return DecorationSet.create(doc, [
+            Decoration.inline(selection.from, selection.to, {
+              class: 'sd-custom-selection',
+            }),
+          ]);
         },
       },
     });