diff --git a/crates/editor2/src/element.rs b/crates/editor2/src/element.rs
index 7fc5244b92758024d8cf5df8afeca54d29d81d68..8031bc5db60923b2470f723035c4df801cdd164e 100644
--- a/crates/editor2/src/element.rs
+++ b/crates/editor2/src/element.rs
@@ -884,7 +884,11 @@ impl EditorElement {
                 bounds: text_bounds,
             }),
             |cx| {
-                if text_bounds.contains(&cx.mouse_position()) {
+                let interactive_text_bounds = InteractiveBounds {
+                    bounds: text_bounds,
+                    stacking_order: cx.stacking_order().clone(),
+                };
+                if interactive_text_bounds.visibly_contains(&cx.mouse_position(), cx) {
                     if self
                         .editor
                         .read(cx)
@@ -1361,8 +1365,12 @@ impl EditorElement {
             ));
         }
 
+        let interactive_track_bounds = InteractiveBounds {
+            bounds: track_bounds,
+            stacking_order: cx.stacking_order().clone(),
+        };
         let mut mouse_position = cx.mouse_position();
-        if track_bounds.contains(&mouse_position) {
+        if interactive_track_bounds.visibly_contains(&mouse_position, cx) {
             cx.set_cursor_style(CursorStyle::Arrow);
         }
 
@@ -1392,7 +1400,7 @@ impl EditorElement {
                         cx.stop_propagation();
                     } else {
                         editor.scroll_manager.set_is_dragging_scrollbar(false, cx);
-                        if track_bounds.contains(&event.position) {
+                        if interactive_track_bounds.visibly_contains(&event.position, cx) {
                             editor.scroll_manager.show_scrollbar(cx);
                         }
                     }
diff --git a/crates/gpui2/src/elements/text.rs b/crates/gpui2/src/elements/text.rs
index 175a79c19a512832c7c70571780adb6268b91ab2..7716d81536117a6213133db7cdf8377f94f1f647 100644
--- a/crates/gpui2/src/elements/text.rs
+++ b/crates/gpui2/src/elements/text.rs
@@ -358,14 +358,13 @@ impl Element for InteractiveText {
 
     fn paint(&mut self, bounds: Bounds<Pixels>, state: &mut Self::State, cx: &mut WindowContext) {
         if let Some(click_listener) = self.click_listener.take() {
-            if let Some(ix) = state
-                .text_state
-                .index_for_position(bounds, cx.mouse_position())
-            {
+            let mouse_position = cx.mouse_position();
+            if let Some(ix) = state.text_state.index_for_position(bounds, mouse_position) {
                 if self
                     .clickable_ranges
                     .iter()
                     .any(|range| range.contains(&ix))
+                    && cx.was_top_layer(&mouse_position, cx.stacking_order())
                 {
                     cx.set_cursor_style(crate::CursorStyle::PointingHand)
                 }
diff --git a/crates/workspace2/src/pane_group.rs b/crates/workspace2/src/pane_group.rs
index 7416b72331b094ceeba92c0f32971c93d6dca33a..06bd506e56e68b0a6932c18f3cb1ee190f45ab40 100644
--- a/crates/workspace2/src/pane_group.rs
+++ b/crates/workspace2/src/pane_group.rs
@@ -564,9 +564,9 @@ mod element {
     use std::{cell::RefCell, iter, rc::Rc, sync::Arc};
 
     use gpui::{
-        px, relative, Along, AnyElement, Axis, Bounds, CursorStyle, Element, IntoElement,
-        MouseDownEvent, MouseMoveEvent, MouseUpEvent, ParentElement, Pixels, Point, Size, Style,
-        WindowContext,
+        px, relative, Along, AnyElement, Axis, Bounds, CursorStyle, Element, InteractiveBounds,
+        IntoElement, MouseDownEvent, MouseMoveEvent, MouseUpEvent, ParentElement, Pixels, Point,
+        Size, Style, WindowContext,
     };
     use parking_lot::Mutex;
     use smallvec::SmallVec;
@@ -717,7 +717,11 @@ mod element {
             };
 
             cx.with_z_index(3, |cx| {
-                if handle_bounds.contains(&cx.mouse_position()) {
+                let interactive_handle_bounds = InteractiveBounds {
+                    bounds: handle_bounds,
+                    stacking_order: cx.stacking_order().clone(),
+                };
+                if interactive_handle_bounds.visibly_contains(&cx.mouse_position(), cx) {
                     cx.set_cursor_style(match axis {
                         Axis::Vertical => CursorStyle::ResizeUpDown,
                         Axis::Horizontal => CursorStyle::ResizeLeftRight,