diff --git a/packages/editor/src/lib/components/default-components/CanvasShapeIndicators.tsx b/packages/editor/src/lib/components/default-components/CanvasShapeIndicators.tsx
index 266b69da9680..d197671e1b47 100644
--- a/packages/editor/src/lib/components/default-components/CanvasShapeIndicators.tsx
+++ b/packages/editor/src/lib/components/default-components/CanvasShapeIndicators.tsx
@@ -16,6 +16,8 @@ interface CollaboratorIndicatorData {
 
 interface RenderData {
 	idsToDisplay: Set<TLShapeId>
+	hoveredOnlyId: TLShapeId | null
+	isBrushing: boolean
 	renderingShapeIds: Set<TLShapeId>
 	hintingShapeIds: TLShapeId[]
 	collaboratorIndicators: CollaboratorIndicatorData[]
@@ -51,6 +53,8 @@ function collaboratorIndicatorsEqual(
 
 function renderDataEqual(a: RenderData, b: RenderData): boolean {
 	return (
+		a.hoveredOnlyId === b.hoveredOnlyId &&
+		a.isBrushing === b.isBrushing &&
 		setsEqual(a.idsToDisplay, b.idsToDisplay) &&
 		setsEqual(a.renderingShapeIds, b.renderingShapeIds) &&
 		arraysEqual(a.hintingShapeIds, b.hintingShapeIds) &&
@@ -154,21 +158,26 @@ export const CanvasShapeIndicators = memo(function CanvasShapeIndicators() {
 			const instanceState = editor.getInstanceState()
 			const isChangingStyle = instanceState.isChangingStyle
 			const isIdleOrEditing = editor.isInAny('select.idle', 'select.editing_shape')
-			const isInSelectState = editor.isInAny(
-				'select.brushing',
-				'select.scribble_brushing',
-				'select.pointing_shape',
-				'select.pointing_selection',
-				'select.pointing_handle'
-			)
+			const isBrushing = editor.isInAny('select.brushing', 'select.scribble_brushing')
+			const isInSelectState =
+				isBrushing ||
+				editor.isInAny(
+					'select.pointing_shape',
+					'select.pointing_selection',
+					'select.pointing_handle'
+				)
 
+			let hoveredOnlyId: TLShapeId | null = null
 			if (!isChangingStyle && (isIdleOrEditing || isInSelectState)) {
 				for (const id of editor.getSelectedShapeIds()) {
 					idsToDisplay.add(id)
 				}
 				if (isIdleOrEditing && instanceState.isHoveringCanvas && !instanceState.isCoarsePointer) {
 					const hovered = editor.getHoveredShapeId()
-					if (hovered) idsToDisplay.add(hovered)
+					if (hovered) {
+						if (!idsToDisplay.has(hovered)) hoveredOnlyId = hovered
+						idsToDisplay.add(hovered)
+					}
 				}
 			}
 
@@ -201,6 +210,8 @@ export const CanvasShapeIndicators = memo(function CanvasShapeIndicators() {
 
 			return {
 				idsToDisplay,
+				hoveredOnlyId,
+				isBrushing,
 				renderingShapeIds,
 				hintingShapeIds,
 				collaboratorIndicators,
@@ -219,7 +230,7 @@ export const CanvasShapeIndicators = memo(function CanvasShapeIndicators() {
 			const ctx = canvas.getContext('2d')
 			if (!ctx) return
 
-			const { idsToDisplay, renderingShapeIds, hintingShapeIds, collaboratorIndicators } =
+			const { idsToDisplay, hoveredOnlyId, isBrushing, renderingShapeIds, hintingShapeIds, collaboratorIndicators } =
 				$renderData.get()
 
 			const { w, h } = editor.getViewportScreenBounds()
@@ -269,9 +280,16 @@ export const CanvasShapeIndicators = memo(function CanvasShapeIndicators() {
 
 			// Draw selected/hovered indicators (1.5px stroke)
 			ctx.lineWidth = 1.5 / zoom
+			ctx.globalAlpha = isBrushing ? 0.6 : 1.0
 			for (const shapeId of idsToDisplay) {
+				if (shapeId === hoveredOnlyId) continue
 				renderShapeIndicator(ctx, editor, shapeId, renderingShapeIds)
 			}
+			if (hoveredOnlyId) {
+				ctx.globalAlpha = 0.6
+				renderShapeIndicator(ctx, editor, hoveredOnlyId, renderingShapeIds)
+			}
+			ctx.globalAlpha = 1.0
 
 			// Draw hinted indicators with a thicker stroke (2.5px)
 			if (hintingShapeIds.length > 0) {
diff --git a/packages/editor/src/lib/editor/Editor.ts b/packages/editor/src/lib/editor/Editor.ts
index cec4046f81d2..e5c144d0b44a 100644
--- a/packages/editor/src/lib/editor/Editor.ts
+++ b/packages/editor/src/lib/editor/Editor.ts
@@ -5336,11 +5336,13 @@ export class Editor extends EventEmitter<TLEventMap> {
 
 				// If the hit is within the frame's outer margin, then select the frame
 				const distance = geometry.distanceToPoint(pointInShapeSpace, hitFrameInside)
+				const isGrid = (shape as any).type === 'grid'
 				if (
-					hitFrameInside
+					!isGrid &&
+					(hitFrameInside
 						? (distance > 0 && distance <= outerMargin) ||
 							(distance <= 0 && distance > -innerMargin)
-						: distance > 0 && distance <= outerMargin
+						: distance > 0 && distance <= outerMargin)
 				) {
 					return inMarginClosestToEdgeHit || shape
 				}
@@ -5355,7 +5357,7 @@ export class Editor extends EventEmitter<TLEventMap> {
 					return (
 						inMarginClosestToEdgeHit ||
 						inHollowSmallestAreaHit ||
-						(hitFrameInside ? shape : undefined)
+						(hitFrameInside || isGrid ? shape : undefined)
 					)
 				}
 				continue
diff --git a/packages/tldraw/src/lib/tools/SelectTool/childStates/PointingShape.ts b/packages/tldraw/src/lib/tools/SelectTool/childStates/PointingShape.ts
index 79446240077d..75c90a96572f 100644
--- a/packages/tldraw/src/lib/tools/SelectTool/childStates/PointingShape.ts
+++ b/packages/tldraw/src/lib/tools/SelectTool/childStates/PointingShape.ts
@@ -1,4 +1,4 @@
-import { StateNode, TLPointerEventInfo, TLShape } from '@tldraw/editor'
+import { Group2d, StateNode, TLPointerEventInfo, TLShape } from '@tldraw/editor'
 import { isOverArrowLabel } from '../../../shapes/arrow/arrowLabel'
 import { getTextLabels } from '../../../utils/shapes/shapes'
 
@@ -11,6 +11,7 @@ export class PointingShape extends StateNode {
 
 	didCtrlOnEnter = false
 	didSelectOnEnter = false
+	didHitGridLabel = false
 
 	override onEnter(info: TLPointerEventInfo & { target: 'shape' }) {
 		const selectedShapeIds = this.editor.getSelectedShapeIds()
@@ -22,6 +23,19 @@ export class PointingShape extends StateNode {
 		this.hitShape = info.shape
 		this.isDoubleClick = false
 		this.didCtrlOnEnter = accelKey
+		this.didHitGridLabel = false
+		if ((info.shape as any).type === 'grid') {
+			const geometry = this.editor.getShapeGeometry(info.shape)
+			if (geometry instanceof Group2d) {
+				const pointInShapeSpace = this.editor.getPointInShapeSpace(info.shape, currentPagePoint)
+				for (const child of geometry.children) {
+					if (child.isLabel && child.isPointInBounds(pointInShapeSpace)) {
+						this.didHitGridLabel = true
+						break
+					}
+				}
+			}
+		}
 		const outermostSelectingShape = this.editor.getOutermostSelectableShape(info.shape)
 		const selectedAncestor = this.editor.findShapeAncestor(outermostSelectingShape, (parent) =>
 			selectedShapeIds.includes(parent.id)
@@ -217,6 +231,9 @@ export class PointingShape extends StateNode {
 
 			if (this.didCtrlOnEnter) {
 				this.parent.transition('brushing', info)
+			} else if (this.didSelectOnEnter && (this.hitShape as any).type === 'grid' && !this.didHitGridLabel) {
+				this.editor.setSelectedShapes([])
+				this.parent.transition('brushing', { ...info, target: 'canvas' as const })
 			} else {
 				this.startTranslating(info)
 			}