diff --git a/crates/gpui2/src/elements/div.rs b/crates/gpui2/src/elements/div.rs
index 371f554337..a102c71a6f 100644
--- a/crates/gpui2/src/elements/div.rs
+++ b/crates/gpui2/src/elements/div.rs
@@ -656,7 +656,6 @@ pub struct Interactivity {
     pub focusable: bool,
     pub tracked_focus_handle: Option<FocusHandle>,
     pub scroll_handle: Option<ScrollHandle>,
-    pub focus_listeners: FocusListeners,
     pub group: Option<SharedString>,
     pub base_style: Box<StyleRefinement>,
     pub focus_style: Option<Box<StyleRefinement>>,
@@ -759,6 +758,26 @@ impl Interactivity {
             }
         }
 
+        // If this element can be focused, register a mouse down listener
+        // that will automatically transfer focus when hitting the element.
+        // This behavior can be suppressed by using `cx.prevent_default()`.
+        if let Some(focus_handle) = element_state.focus_handle.clone() {
+            cx.on_mouse_event({
+                let interactive_bounds = interactive_bounds.clone();
+                move |event: &MouseDownEvent, phase, cx| {
+                    if phase == DispatchPhase::Bubble
+                        && !cx.default_prevented()
+                        && interactive_bounds.visibly_contains(&event.position, cx)
+                    {
+                        cx.focus(&focus_handle);
+                        // If there is a parent that is also focusable, prevent it
+                        // from trasferring focus because we already did so.
+                        cx.prevent_default();
+                    }
+                }
+            });
+        }
+
         for listener in self.mouse_down_listeners.drain(..) {
             let interactive_bounds = interactive_bounds.clone();
             cx.on_mouse_event(move |event: &MouseDownEvent, phase, cx| {
@@ -988,7 +1007,7 @@ impl Interactivity {
         }
 
         let active_state = element_state.clicked_state.clone();
-        if !active_state.borrow().is_clicked() {
+        if active_state.borrow().is_clicked() {
             cx.on_mouse_event(move |_: &MouseUpEvent, phase, cx| {
                 if phase == DispatchPhase::Capture {
                     *active_state.borrow_mut() = ElementClickedState::default();
@@ -1002,7 +1021,7 @@ impl Interactivity {
                 .and_then(|group_active| GroupBounds::get(&group_active.group, cx));
             let interactive_bounds = interactive_bounds.clone();
             cx.on_mouse_event(move |down: &MouseDownEvent, phase, cx| {
-                if phase == DispatchPhase::Bubble {
+                if phase == DispatchPhase::Bubble && !cx.default_prevented() {
                     let group =
                         active_group_bounds.map_or(false, |bounds| bounds.contains(&down.position));
                     let element = interactive_bounds.visibly_contains(&down.position, cx);
@@ -1083,13 +1102,6 @@ impl Interactivity {
                     cx.on_action(action_type, listener)
                 }
 
-                if let Some(focus_handle) = element_state.focus_handle.as_ref() {
-                    for listener in self.focus_listeners {
-                        let focus_handle = focus_handle.clone();
-                        cx.on_focus_changed(move |event, cx| listener(&focus_handle, event, cx));
-                    }
-                }
-
                 f(style, scroll_offset.unwrap_or_default(), cx)
             },
         );
@@ -1193,7 +1205,6 @@ impl Default for Interactivity {
             focusable: false,
             tracked_focus_handle: None,
             scroll_handle: None,
-            focus_listeners: Vec::default(),
             // scroll_offset: Point::default(),
             group: None,
             base_style: Box::new(StyleRefinement::default()),
diff --git a/crates/gpui2/src/window.rs b/crates/gpui2/src/window.rs
index 7ec69f4d0e..77eb4e27be 100644
--- a/crates/gpui2/src/window.rs
+++ b/crates/gpui2/src/window.rs
@@ -1332,8 +1332,9 @@ impl<'a> WindowContext<'a> {
 
     /// Dispatch a mouse or keyboard event on the window.
     pub fn dispatch_event(&mut self, event: InputEvent) -> bool {
-        // Handlers may set this to false by calling `stop_propagation`
+        // Handlers may set this to false by calling `stop_propagation`.
         self.app.propagate_event = true;
+        // Handlers may set this to true by calling `prevent_default`.
         self.window.default_prevented = false;
 
         let event = match event {
diff --git a/crates/storybook2/src/stories/focus.rs b/crates/storybook2/src/stories/focus.rs
index 6dc8187690..a3a8845947 100644
--- a/crates/storybook2/src/stories/focus.rs
+++ b/crates/storybook2/src/stories/focus.rs
@@ -66,9 +66,11 @@ impl Render for FocusStory {
         let color_4 = theme.status().conflict;
         let color_5 = theme.status().ignored;
         let color_6 = theme.status().renamed;
+        let color_7 = theme.status().hint;
 
         div()
             .id("parent")
+            .active(|style| style.bg(color_7))
             .track_focus(&self.parent_focus)
             .key_context("parent")
             .on_action(cx.listener(|_, _action: &ActionA, _cx| {