diff --git a/addons/block_code/drag_manager/drag.gd b/addons/block_code/drag_manager/drag.gd
index 8a667755..31f64ae1 100644
--- a/addons/block_code/drag_manager/drag.gd
+++ b/addons/block_code/drag_manager/drag.gd
@@ -6,6 +6,7 @@ const BlockCanvas = preload("res://addons/block_code/ui/block_canvas/block_canva
 const Constants = preload("res://addons/block_code/ui/constants.gd")
 const InstructionTree = preload("res://addons/block_code/instruction_tree/instruction_tree.gd")
 const Types = preload("res://addons/block_code/types/types.gd")
+const Util = preload("res://addons/block_code/ui/util.gd")
 
 enum DragAction { NONE, PLACE, REMOVE }
 
@@ -33,7 +34,7 @@ var target_snap_point: SnapPoint:
 
 var snap_block: Block:
 	get:
-		return target_snap_point.get_parent_block() if target_snap_point else null
+		return Util.get_parent_block(target_snap_point) if target_snap_point else null
 
 
 func _init(block: Block, block_scope: String, offset: Vector2, block_canvas: BlockCanvas):
diff --git a/addons/block_code/drag_manager/drag_manager.gd b/addons/block_code/drag_manager/drag_manager.gd
index f8adf904..b9acd708 100644
--- a/addons/block_code/drag_manager/drag_manager.gd
+++ b/addons/block_code/drag_manager/drag_manager.gd
@@ -79,6 +79,7 @@ func drag_ended():
 
 	if block:
 		connect_block_canvas_signals(block)
+		block.grab_focus()
 
 	_block_canvas.release_scope()
 
diff --git a/addons/block_code/ui/blocks/block/block.gd b/addons/block_code/ui/blocks/block/block.gd
index 5cb37baf..425607e4 100644
--- a/addons/block_code/ui/blocks/block/block.gd
+++ b/addons/block_code/ui/blocks/block/block.gd
@@ -47,6 +47,7 @@ func _set_bottom_snap_path(value: NodePath):
 func _ready():
 	if bottom_snap == null:
 		_set_bottom_snap_path(bottom_snap_path)
+	focus_mode = FocusMode.FOCUS_ALL
 	mouse_filter = Control.MOUSE_FILTER_IGNORE
 
 
diff --git a/addons/block_code/ui/blocks/control_block/control_block.tscn b/addons/block_code/ui/blocks/control_block/control_block.tscn
index a482e11f..3e61a57d 100644
--- a/addons/block_code/ui/blocks/control_block/control_block.tscn
+++ b/addons/block_code/ui/blocks/control_block/control_block.tscn
@@ -5,6 +5,7 @@
 
 [node name="ControlBlock" type="MarginContainer"]
 size_flags_horizontal = 0
+focus_mode = 2
 mouse_filter = 2
 script = ExtResource("1_2hbir")
 block_name = "control_block"
diff --git a/addons/block_code/ui/blocks/entry_block/entry_block.tscn b/addons/block_code/ui/blocks/entry_block/entry_block.tscn
index 6abed53e..c5825940 100644
--- a/addons/block_code/ui/blocks/entry_block/entry_block.tscn
+++ b/addons/block_code/ui/blocks/entry_block/entry_block.tscn
@@ -4,9 +4,9 @@
 [ext_resource type="Script" path="res://addons/block_code/ui/blocks/entry_block/entry_block.gd" id="2_3ik8h"]
 
 [node name="EntryBlock" instance=ExtResource("1_byjbb")]
+focus_mode = 2
 script = ExtResource("2_3ik8h")
 signal_name = ""
-defaults = {}
 block_name = "entry_block"
 label = "EntryBlock"
 block_type = 1
diff --git a/addons/block_code/ui/blocks/parameter_block/parameter_block.gd b/addons/block_code/ui/blocks/parameter_block/parameter_block.gd
index 75b11b4a..247e3051 100644
--- a/addons/block_code/ui/blocks/parameter_block/parameter_block.gd
+++ b/addons/block_code/ui/blocks/parameter_block/parameter_block.gd
@@ -2,6 +2,7 @@
 class_name ParameterBlock
 extends Block
 
+const Constants = preload("res://addons/block_code/ui/constants.gd")
 const Util = preload("res://addons/block_code/ui/util.gd")
 
 @export var block_format: String = ""
@@ -16,16 +17,24 @@ var param_name_input_pairs: Array
 var param_input_strings: Dictionary  # Only loaded from serialized
 var spawned_by: ParameterOutput
 
+var _panel_normal: StyleBox
+var _panel_focus: StyleBox
+
 
 func _ready():
 	super()
 
+	_panel_normal = _panel.get_theme_stylebox("panel").duplicate()
+	_panel_normal.bg_color = color
+	_panel_normal.border_color = color.darkened(0.2)
+
+	_panel_focus = _panel.get_theme_stylebox("panel").duplicate()
+	_panel_focus.bg_color = color
+	_panel_focus.border_color = Constants.FOCUS_BORDER_COLOR
+
 	block_type = Types.BlockType.VALUE
 	if not Util.node_is_part_of_edited_scene(self):
-		var new_panel = _panel.get_theme_stylebox("panel").duplicate()
-		new_panel.bg_color = color
-		new_panel.border_color = color.darkened(0.2)
-		_panel.add_theme_stylebox_override("panel", new_panel)
+		_panel.add_theme_stylebox_override("panel", _panel_normal)
 
 	format()
 
@@ -73,3 +82,11 @@ static func get_scene_path():
 
 func format():
 	param_name_input_pairs = StatementBlock.format_string(self, %HBoxContainer, block_format, defaults)
+
+
+func _on_focus_entered():
+	_panel.add_theme_stylebox_override("panel", _panel_focus)
+
+
+func _on_focus_exited():
+	_panel.add_theme_stylebox_override("panel", _panel_normal)
diff --git a/addons/block_code/ui/blocks/parameter_block/parameter_block.tscn b/addons/block_code/ui/blocks/parameter_block/parameter_block.tscn
index 46cc8b65..7f98a6d2 100644
--- a/addons/block_code/ui/blocks/parameter_block/parameter_block.tscn
+++ b/addons/block_code/ui/blocks/parameter_block/parameter_block.tscn
@@ -18,8 +18,9 @@ corner_radius_bottom_left = 16
 offset_right = 16.0
 offset_bottom = 8.0
 size_flags_horizontal = 0
+focus_mode = 2
+mouse_filter = 2
 script = ExtResource("1_0hajy")
-defaults = null
 block_name = "parameter_block"
 label = "Param"
 block_type = 3
@@ -46,4 +47,6 @@ unique_name_in_owner = true
 layout_mode = 2
 mouse_filter = 2
 
+[connection signal="focus_entered" from="." to="." method="_on_focus_entered"]
+[connection signal="focus_exited" from="." to="." method="_on_focus_exited"]
 [connection signal="mouse_down" from="DragDropArea" to="." method="_on_drag_drop_area_mouse_down"]
diff --git a/addons/block_code/ui/blocks/statement_block/statement_block.tscn b/addons/block_code/ui/blocks/statement_block/statement_block.tscn
index 96ed6e48..d2375b10 100644
--- a/addons/block_code/ui/blocks/statement_block/statement_block.tscn
+++ b/addons/block_code/ui/blocks/statement_block/statement_block.tscn
@@ -7,6 +7,7 @@
 
 [node name="StatementBlock" type="MarginContainer"]
 size_flags_horizontal = 0
+focus_mode = 2
 mouse_filter = 2
 script = ExtResource("1_6wvlf")
 block_name = "statement_block"
diff --git a/addons/block_code/ui/blocks/utilities/background/background.gd b/addons/block_code/ui/blocks/utilities/background/background.gd
index e8aec7c1..5b84d13f 100644
--- a/addons/block_code/ui/blocks/utilities/background/background.gd
+++ b/addons/block_code/ui/blocks/utilities/background/background.gd
@@ -2,8 +2,10 @@
 extends Control
 
 const Constants = preload("res://addons/block_code/ui/constants.gd")
+const Util = preload("res://addons/block_code/ui/util.gd")
 
 var outline_color: Color
+var parent_block: Block
 
 @export var color: Color:
 	set = _set_color
@@ -41,6 +43,12 @@ func _set_shift_bottom(new_shift_bottom):
 	queue_redraw()
 
 
+func _ready():
+	parent_block = Util.get_parent_block(self)
+	parent_block.focus_entered.connect(queue_redraw)
+	parent_block.focus_exited.connect(queue_redraw)
+
+
 func _draw():
 	var fill_polygon: PackedVector2Array
 	fill_polygon.append(Vector2(0.0, 0.0))
@@ -97,5 +105,5 @@ func _draw():
 		edge_polygon.append(Vector2(0.0, size.y + outline_middle))
 
 	draw_colored_polygon(fill_polygon, color)
-	draw_polyline(stroke_polygon, outline_color, Constants.OUTLINE_WIDTH)
-	draw_polyline(edge_polygon, outline_color, Constants.OUTLINE_WIDTH)
+	draw_polyline(stroke_polygon, Constants.FOCUS_BORDER_COLOR if parent_block.has_focus() else outline_color, Constants.OUTLINE_WIDTH)
+	draw_polyline(edge_polygon, Constants.FOCUS_BORDER_COLOR if parent_block.has_focus() else outline_color, Constants.OUTLINE_WIDTH)
diff --git a/addons/block_code/ui/blocks/utilities/background/gutter.gd b/addons/block_code/ui/blocks/utilities/background/gutter.gd
index f449949f..026250fe 100644
--- a/addons/block_code/ui/blocks/utilities/background/gutter.gd
+++ b/addons/block_code/ui/blocks/utilities/background/gutter.gd
@@ -2,8 +2,10 @@
 extends Control
 
 const Constants = preload("res://addons/block_code/ui/constants.gd")
+const Util = preload("res://addons/block_code/ui/util.gd")
 
 var outline_color: Color
+var parent_block: Block
 
 @export var color: Color:
 	set = _set_color
@@ -15,6 +17,12 @@ func _set_color(new_color):
 	queue_redraw()
 
 
+func _ready():
+	parent_block = Util.get_parent_block(self)
+	parent_block.focus_entered.connect(queue_redraw)
+	parent_block.focus_exited.connect(queue_redraw)
+
+
 func _draw():
 	var fill_polygon: PackedVector2Array
 	fill_polygon.append(Vector2(0.0, 0.0))
@@ -33,5 +41,5 @@ func _draw():
 	right_polygon.append(Vector2(size.x, size.y))
 
 	draw_colored_polygon(fill_polygon, color)
-	draw_polyline(left_polygon, outline_color, Constants.OUTLINE_WIDTH)
-	draw_polyline(right_polygon, outline_color, Constants.OUTLINE_WIDTH)
+	draw_polyline(left_polygon, Constants.FOCUS_BORDER_COLOR if parent_block.has_focus() else outline_color, Constants.OUTLINE_WIDTH)
+	draw_polyline(right_polygon, Constants.FOCUS_BORDER_COLOR if parent_block.has_focus() else outline_color, Constants.OUTLINE_WIDTH)
diff --git a/addons/block_code/ui/blocks/utilities/snap_point/snap_point.gd b/addons/block_code/ui/blocks/utilities/snap_point/snap_point.gd
index d4be8386..8b39f4b5 100644
--- a/addons/block_code/ui/blocks/utilities/snap_point/snap_point.gd
+++ b/addons/block_code/ui/blocks/utilities/snap_point/snap_point.gd
@@ -29,13 +29,6 @@ func _ready():
 	_update_snapped_block_from_children()
 
 
-func get_parent_block() -> Block:
-	var parent = get_parent()
-	while parent and not parent is Block:
-		parent = parent.get_parent()
-	return parent as Block
-
-
 func _update_snapped_block_from_children():
 	# Temporary migration to set the snapped_block property based on children
 	# of this node.
diff --git a/addons/block_code/ui/constants.gd b/addons/block_code/ui/constants.gd
index 88d6d9ab..dcb65e23 100644
--- a/addons/block_code/ui/constants.gd
+++ b/addons/block_code/ui/constants.gd
@@ -9,3 +9,5 @@ const KNOB_Z = 5.0
 const CONTROL_MARGIN = 20.0
 const OUTLINE_WIDTH = 3.0
 const MINIMUM_SNAP_DISTANCE = 80.0
+
+const FOCUS_BORDER_COLOR = Color(225, 242, 0)
diff --git a/addons/block_code/ui/util.gd b/addons/block_code/ui/util.gd
index 46918d2f..0be96820 100644
--- a/addons/block_code/ui/util.gd
+++ b/addons/block_code/ui/util.gd
@@ -12,3 +12,11 @@ static func node_is_part_of_edited_scene(node: Node) -> bool:
 
 	var edited_scene_parent := tree.edited_scene_root.get_parent()
 	return edited_scene_parent and edited_scene_parent.is_ancestor_of(node)
+
+
+## Get the nearest Block node that is a parent of the provided node.
+static func get_parent_block(node: Node) -> Block:
+	var parent = node.get_parent()
+	while parent and not parent is Block:
+		parent = parent.get_parent()
+	return parent as Block