diff --git a/src/activities/Activities.tsx b/src/activities/Activities.tsx
index a9ca71e9..dbe83fa0 100644
--- a/src/activities/Activities.tsx
+++ b/src/activities/Activities.tsx
@@ -123,6 +123,7 @@ const Activities: React.VoidFunctionComponent = () => {
                 }
                 panel={<Explorer />}
                 panelClassName="pb-activities-tabview"
+                onMouseDown={(e) => e.stopPropagation()}
             />
             <Tab
                 aria-label={i18n.translate(I18nId.Settings)}
@@ -137,6 +138,7 @@ const Activities: React.VoidFunctionComponent = () => {
                 }
                 panel={<Settings />}
                 panelClassName="pb-activities-tabview"
+                onMouseDown={(e) => e.stopPropagation()}
             />
         </Tabs>
     );
diff --git a/src/app/App.tsx b/src/app/App.tsx
index 267981f7..83f5d0ad 100644
--- a/src/app/App.tsx
+++ b/src/app/App.tsx
@@ -2,7 +2,14 @@
 // Copyright (c) 2020-2022 The Pybricks Authors
 
 import { Classes } from '@blueprintjs/core';
-import React, { useEffect, useState } from 'react';
+import { getFocusableTreeWalker } from '@react-aria/focus';
+import React, {
+    FocusEventHandler,
+    MouseEventHandler,
+    useCallback,
+    useEffect,
+    useState,
+} from 'react';
 import SplitterLayout from 'react-splitter-layout';
 import { useLocalStorage, useTernaryDarkMode } from 'usehooks-ts';
 import Activities from '../activities/Activities';
@@ -155,13 +162,57 @@ const App: React.VFC = () => {
         return () => removeEventListener('keydown', listener);
     }, []);
 
+    // keep track of last focused element in the activities area and restore
+    // focus to that element if any non-interactive area is clicked
+
+    const [lastActivitiesFocusChild, setLastActivitiesFocusChild] =
+        useState<HTMLElement | null>(null);
+
+    const handleFocus = useCallback<FocusEventHandler>(
+        (e) => {
+            if (e.target instanceof HTMLElement) {
+                setLastActivitiesFocusChild(e.target);
+            }
+        },
+        [setLastActivitiesFocusChild],
+    );
+
+    const handleActivitiesMouseDown = useCallback<MouseEventHandler<HTMLDivElement>>(
+        (e) => {
+            if (
+                lastActivitiesFocusChild &&
+                e.currentTarget.contains(lastActivitiesFocusChild)
+            ) {
+                // if the last focused child exists and it is still inside of
+                // the activities area, focus it
+                lastActivitiesFocusChild.focus();
+            } else {
+                // otherwise, focus the first focusable element
+                const walker = getFocusableTreeWalker(e.currentTarget);
+                const first = walker.nextNode();
+
+                if (first instanceof HTMLElement) {
+                    first.focus();
+                }
+            }
+
+            // prevent document body from getting focus
+            e.stopPropagation();
+            e.preventDefault();
+        },
+        [lastActivitiesFocusChild],
+    );
+
     return (
-        <div
-            className="pb-app h-100 w-100 p-absolute"
-            onContextMenu={(e) => e.preventDefault()}
-        >
+        <div className="pb-app" onContextMenu={(e) => e.preventDefault()}>
             <div className="pb-app-body">
-                <Activities />
+                <div
+                    className="pb-app-activities"
+                    onFocus={handleFocus}
+                    onMouseDown={handleActivitiesMouseDown}
+                >
+                    <Activities />
+                </div>
                 {/* need a container with position: relative; for SplitterLayout since it uses position: absolute; */}
                 <div className="pb-app-main" style={{ position: 'relative' }}>
                     <SplitterLayout
@@ -184,12 +235,12 @@ const App: React.VFC = () => {
                                 <Toolbar />
                                 <Editor />
                             </div>
-                            <div className="pb-app-terminal-padding h-100">
+                            <div className="pb-app-terminal">
                                 <Terminal />
                             </div>
                         </SplitterLayout>
-                        <div className="h-100 w-100">
-                            {isDragging && <div className="h-100 w-100 p-absolute" />}
+                        <div className="pb-app-docs">
+                            {isDragging && <div className="pb-app-docs-drag-helper" />}
                             <Docs />
                         </div>
                     </SplitterLayout>
diff --git a/src/app/app.scss b/src/app/app.scss
index 2e754498..51d57ae6 100644
--- a/src/app/app.scss
+++ b/src/app/app.scss
@@ -7,11 +7,39 @@
 @use '../variables' as pb;
 
 .pb-app {
+    width: 100%;
+    height: 100%;
     background-color: bp.$pt-app-background-color;
 
     .#{bp.$ns}-dark & {
         background-color: bp.$pt-dark-app-background-color;
     }
+
+    &-activities {
+        display: flex;
+        @include pb.focus-within();
+    }
+
+    &-terminal {
+        height: 100%;
+        padding-left: 8px;
+        background-color: white;
+        @include pb.focus-within();
+
+        .#{bp.$ns}-dark & {
+            background-color: black;
+        }
+    }
+
+    &-docs {
+        height: 100%;
+
+        &-drag-helper {
+            height: 100%;
+            width: 100%;
+            position: absolute;
+        }
+    }
 }
 
 .pb-app-body {
@@ -52,15 +80,6 @@
     overflow: hidden;
 }
 
-.pb-app-terminal-padding {
-    padding-left: 10px;
-    background-color: white;
-
-    .#{bp.$ns}-dark & {
-        background-color: black;
-    }
-}
-
 // hide the docs and resize separator
 
 div.pb-hide-docs > :not(.layout-pane-primary) {
diff --git a/src/components/Button.tsx b/src/components/Button.tsx
index 4bf04e72..63b13b21 100644
--- a/src/components/Button.tsx
+++ b/src/components/Button.tsx
@@ -20,7 +20,7 @@ type ButtonProps = {
     minimal?: boolean;
     /** Icon that will be displayed to the left of the button content. */
     icon: IconName;
-    /** A refernece to the underlying <button> HTML element. */
+    /** A reference to the underlying <button> HTML element. */
     elementRef?: React.ForwardedRef<HTMLButtonElement>;
     /** Called when the button is pressed. */
     onPress?: () => void;
@@ -56,10 +56,10 @@ export const Button: React.VoidFunctionComponent<ButtonProps> = ({
 
     return (
         <>
-            {/* The blueprint focus manage doesn't always get it right, so we ignore it. */}
-            <FocusRing focusRingClass={Classes.FOCUS_STYLE_MANAGER_IGNORE}>
+            {/* useButton() breaks the native browser :focus-visible :-/ */}
+            <FocusRing focusRingClass="pb-focus-ring">
                 <button
-                    className={classNames(Classes.BUTTON, {
+                    className={classNames(Classes.BUTTON, 'pb-focus-managed', {
                         [Classes.ACTIVE]: isPressed,
                         [Classes.LOADING]: loading,
                         [Classes.MINIMAL]: minimal,
@@ -84,7 +84,7 @@ export const Button: React.VoidFunctionComponent<ButtonProps> = ({
                     )}
                 </button>
             </FocusRing>
-            {/* This can't be inside the buttton element, otherwise it messes up the styling */}
+            {/* This can't be inside the button element, otherwise it messes up the styling */}
             {description && (
                 <div id={descriptionId} hidden>
                     {description}
diff --git a/src/explorer/Explorer.tsx b/src/explorer/Explorer.tsx
index 6c93d943..cb03140b 100644
--- a/src/explorer/Explorer.tsx
+++ b/src/explorer/Explorer.tsx
@@ -80,6 +80,7 @@ const ActionButton: React.VoidFunctionComponent<ActionButtonProps> = ({
             elementRef={elementRef}
             onFocus={focusable === false ? (e) => e.preventDefault() : undefined}
             onClick={handleClick}
+            onMouseDown={(e) => e.stopPropagation()}
         />
     );
 };
diff --git a/src/index.scss b/src/index.scss
index 62078a74..6d3f16cb 100644
--- a/src/index.scss
+++ b/src/index.scss
@@ -16,26 +16,46 @@
     --pb-vh: 100vh;
 }
 
+// use :focus-visible instead of :focus (so we don't need blueprint.js focus style manager)
+
+:focus {
+    outline: none;
+}
+
+.#{bp.$ns}-control input:focus ~ .#{bp.$ns}-control-indicator {
+    outline: none;
+
+    .#{bp.$ns}-dark & {
+        outline: none;
+    }
+}
+
+// show focus for tree nodes even if mouse click it
+.#{bp.$ns}-tree-node:focus,
+// react-aria managed focus visibility
+.pb-focus-ring,
+// broswer managed focus visibility
+:focus-visible:not(.pb-focus-managed) {
+    @include pb.focus-outline(0);
+}
+
+// these controls need extra separation for better visibility
+.#{bp.$ns}-control input:focus-visible ~ .#{bp.$ns}-control-indicator {
+    @include pb.focus-outline(2px);
+}
+
 body {
     // no scrolling of the page
     overflow: hidden;
     user-select: none;
 }
 
-// Utility classes
+// Utility classes - do not use these in new code!
 
 .h-100 {
     height: 100%;
 }
 
-.w-100 {
-    width: 100%;
-}
-
-.p-absolute {
-    position: absolute;
-}
-
 .no-wrap {
     white-space: nowrap;
 }
@@ -112,11 +132,7 @@ a.#{bp.$ns}-button {
     min-width: math.div(bp.$pt-grid-size, 2);
 }
 
-.#{bp.$ns}-focus-disabled :focus.#{bp.$ns}-focus-style-manager-ignore {
-    outline: bp.$pt-outline-color auto 2px !important;
-    outline-offset: 2px !important;
-}
-
+// make scrollbars fit our style
 ::-webkit-scrollbar {
     width: 16px;
 
diff --git a/src/index.tsx b/src/index.tsx
index edcfeb71..58884951 100644
--- a/src/index.tsx
+++ b/src/index.tsx
@@ -1,7 +1,6 @@
 // SPDX-License-Identifier: MIT
 // Copyright (c) 2020-2022 The Pybricks Authors
 
-import { FocusStyleManager } from '@blueprintjs/core';
 import { I18nContext } from '@shopify/react-i18n';
 import React from 'react';
 import { OverlayProvider } from 'react-aria';
@@ -47,8 +46,6 @@ if (appVersion.match(/beta/)) {
 
 sagaMiddleware.run(rootSaga);
 
-FocusStyleManager.onlyShowFocusOnTabs();
-
 ReactDOM.render(
     <React.StrictMode>
         <Provider store={store}>
diff --git a/src/licenses/license.scss b/src/licenses/license.scss
index 3b6cfb7e..e398e016 100644
--- a/src/licenses/license.scss
+++ b/src/licenses/license.scss
@@ -26,7 +26,7 @@
     flex-flow: column;
     overflow: auto;
     // to allow for focus outline
-    padding: 6px;
+    padding: 2px;
 }
 
 .pb-license-info {
diff --git a/src/settings/Settings.tsx b/src/settings/Settings.tsx
index 0fb228c8..a7d631ab 100644
--- a/src/settings/Settings.tsx
+++ b/src/settings/Settings.tsx
@@ -137,6 +137,7 @@ const Settings: React.VoidFunctionComponent = () => {
                         value={hubName}
                         onChange={(e) => setHubName(e.currentTarget.value)}
                         onMouseOver={(e) => e.preventDefault()}
+                        onMouseDown={(e) => e.stopPropagation()}
                         intent={isHubNameValid ? Intent.NONE : Intent.DANGER}
                         placeholder="Pybricks Hub"
                         rightElement={
diff --git a/src/utils/tree-renderer.tsx b/src/utils/tree-renderer.tsx
index a8b400ff..52030be1 100644
--- a/src/utils/tree-renderer.tsx
+++ b/src/utils/tree-renderer.tsx
@@ -72,6 +72,7 @@ export const renderers: Omit<
                     (props.context.isSelected || props.context.isDraggingOver) &&
                         Classes.TREE_NODE_SELECTED,
                 )}
+                onMouseDown={(e) => e.stopPropagation()}
                 {...props.context.itemContainerWithChildrenProps}
                 {...props.context.interactiveElementProps}
             >
diff --git a/src/variables.scss b/src/variables.scss
index 0365fb3e..ca2f6694 100644
--- a/src/variables.scss
+++ b/src/variables.scss
@@ -12,6 +12,9 @@ $narrow-screen-limit: 700px;
 // Official Pybricks branding color.
 $pybricks-blue: #0088ce;
 
+// blueprint doesn't define this
+$pt-dark-outline-color: rgba(bp.$blue5, 0.6);
+
 /**
  * Adjusts the background contrast by $background-adjust (usually a percent).
  *
@@ -31,3 +34,31 @@ $pybricks-blue: #0088ce;
         );
     }
 }
+
+// This is usually used with :focus-visible, but can be use with :focus if
+// we wan't focust to be visible, even on mouse click.
+@mixin focus-outline($offset) {
+    outline: bp.$pt-outline-color solid 2px;
+    outline-offset: $offset;
+
+    .#{bp.$ns}-dark & {
+        outline: bp.$pt-outline-color solid 2px;
+        outline-offset: $offset;
+    }
+}
+
+// add a focus ring when focus is within a container
+@mixin focus-within() {
+    position: relative;
+
+    &:focus-within::after {
+        content: '';
+        pointer-events: none;
+        position: absolute;
+        top: 0;
+        left: 0;
+        width: 100%;
+        height: 100%;
+        @include focus-outline(-3px);
+    }
+}