diff --git a/Source/Editor/GUI/ContextMenu/ContextMenuBase.cs b/Source/Editor/GUI/ContextMenu/ContextMenuBase.cs
index f93e31957..8596ab83b 100644
--- a/Source/Editor/GUI/ContextMenu/ContextMenuBase.cs
+++ b/Source/Editor/GUI/ContextMenu/ContextMenuBase.cs
@@ -196,7 +196,6 @@ namespace FlaxEditor.GUI.ContextMenu
             desc.HasSizingFrame = false;
             OnWindowCreating(ref desc);
             _window = Platform.CreateWindow(ref desc);
-            _window.GotFocus += OnWindowGotFocus;
             _window.LostFocus += OnWindowLostFocus;
 
             // Attach to the window
@@ -326,48 +325,6 @@ namespace FlaxEditor.GUI.ContextMenu
             // Nothing to do
         }
 
-        /// <summary>
-        /// Returns true if context menu is in foreground (eg. context window or any child window has user focus or user opened additional popup within this context).
-        /// </summary>
-        protected virtual bool IsForeground
-        {
-            get
-            {
-                // Any external popup is focused
-                foreach (var externalPopup in ExternalPopups)
-                {
-                    if (externalPopup && externalPopup.IsForegroundWindow)
-                        return true;
-                }
-
-                // Any context menu window is focused
-                var anyForeground = false;
-                var c = this;
-                while (!anyForeground && c != null)
-                {
-                    if (c._window != null && c._window.IsForegroundWindow)
-                        anyForeground = true;
-                    c = c._childCM;
-                }
-
-                return anyForeground;
-            }
-        }
-
-        private void OnWindowGotFocus()
-        {
-            var child = _childCM;
-            if (child != null && _window && _window.IsForegroundWindow)
-            {
-                // Hide child if user clicked over parent (do it next frame to process other events before - eg. child windows focus loss)
-                FlaxEngine.Scripting.InvokeOnUpdate(() =>
-                {
-                    if (child == _childCM)
-                        HideChild();
-                });
-            }
-        }
-
         private void OnWindowLostFocus()
         {
             // Skip for parent menus (child should handle lost of focus)
@@ -377,13 +334,33 @@ namespace FlaxEditor.GUI.ContextMenu
             // Check if user stopped using that popup menu
             if (_parentCM != null)
             {
-                // Focus parent if user clicked over the parent popup
-                var mouse = _parentCM.PointFromScreen(FlaxEngine.Input.MouseScreenPosition);
-                if (_parentCM.ContainsPoint(ref mouse))
+                if (IsMouseOver)
+                    return;
+
+                // Check if mouse is over any of the parents
+                ContextMenuBase focusCM = null;
+                var cm = _parentCM;
+                while (cm != null)
                 {
-                    _parentCM._window.Focus();
+                    if (cm.IsMouseOver)
+                        focusCM = cm;
+                    cm = cm._parentCM;
+                }
+
+                if (focusCM != null)
+                {
+                    // Focus on the clicked parent and hide any open sub-menus
+                    focusCM.HideChild();
+                    focusCM._window?.Focus();
+                }
+                else
+                {
+                    // User clicked outside the context menus, hide the whole context menu tree
+                    TopmostCM.Hide();
                 }
             }
+            else if (!IsMouseOver)
+                Hide();
         }
 
         /// <inheritdoc />
@@ -405,18 +382,6 @@ namespace FlaxEditor.GUI.ContextMenu
             }
         }
 
-        /// <inheritdoc />
-        public override void Update(float deltaTime)
-        {
-            base.Update(deltaTime);
-
-            // Let root context menu to check if none of the popup windows
-            if (_parentCM == null && !IsForeground)
-            {
-                Hide();
-            }
-        }
-
         /// <inheritdoc />
         public override void Draw()
         {
diff --git a/Source/Editor/GUI/Tree/TreeNode.cs b/Source/Editor/GUI/Tree/TreeNode.cs
index 54aeedb9a..f2c8e2d6a 100644
--- a/Source/Editor/GUI/Tree/TreeNode.cs
+++ b/Source/Editor/GUI/Tree/TreeNode.cs
@@ -700,6 +700,8 @@ namespace FlaxEditor.GUI.Tree
         /// <inheritdoc />
         public override bool OnMouseDown(Float2 location, MouseButton button)
         {
+            UpdateMouseOverFlags(location);
+
             // Check if mouse hits bar and node isn't a root
             if (_mouseOverHeader)
             {
@@ -728,6 +730,8 @@ namespace FlaxEditor.GUI.Tree
         /// <inheritdoc />
         public override bool OnMouseUp(Float2 location, MouseButton button)
         {
+            UpdateMouseOverFlags(location);
+
             // Clear flag for left button
             if (button == MouseButton.Left)
             {
@@ -815,21 +819,7 @@ namespace FlaxEditor.GUI.Tree
         /// <inheritdoc />
         public override void OnMouseMove(Float2 location)
         {
-            // Cache flags
-            _mouseOverArrow = HasAnyVisibleChild && ArrowRect.Contains(location);
-            _mouseOverHeader = new Rectangle(0, 0, Width, _headerHeight - 1).Contains(location);
-            if (_mouseOverHeader)
-            {
-                // Allow non-scrollable controls to stay on top of the header and override the mouse behaviour
-                for (int i = 0; i < Children.Count; i++)
-                {
-                    if (!Children[i].IsScrollable && IntersectsChildContent(Children[i], location, out _))
-                    {
-                        _mouseOverHeader = false;
-                        break;
-                    }
-                }
-            }
+            UpdateMouseOverFlags(location);
 
             // Check if start drag and drop
             if (_isMouseDown && Float2.Distance(_mouseDownPos, location) > 10.0f)
@@ -852,6 +842,25 @@ namespace FlaxEditor.GUI.Tree
             }
         }
 
+        private void UpdateMouseOverFlags(Vector2 location)
+        {
+            // Cache flags
+            _mouseOverArrow = HasAnyVisibleChild && ArrowRect.Contains(location);
+            _mouseOverHeader = new Rectangle(0, 0, Width, _headerHeight - 1).Contains(location);
+            if (_mouseOverHeader)
+            {
+                // Allow non-scrollable controls to stay on top of the header and override the mouse behaviour
+                for (int i = 0; i < Children.Count; i++)
+                {
+                    if (!Children[i].IsScrollable && IntersectsChildContent(Children[i], location, out _))
+                    {
+                        _mouseOverHeader = false;
+                        break;
+                    }
+                }
+            }
+        }
+
         /// <inheritdoc />
         public override void OnMouseLeave()
         {
diff --git a/Source/Engine/UI/GUI/Tooltip.cs b/Source/Engine/UI/GUI/Tooltip.cs
index 9180d6d58..5089e0211 100644
--- a/Source/Engine/UI/GUI/Tooltip.cs
+++ b/Source/Engine/UI/GUI/Tooltip.cs
@@ -179,6 +179,8 @@ namespace FlaxEngine.GUI
         /// <param name="target">The target.</param>
         public void OnMouseLeaveControl(Control target)
         {
+            if (Visible)
+                Hide();
             _lastTarget = null;
         }