diff --git a/scripts/vr-edit/modules/laser.js b/scripts/vr-edit/modules/laser.js
index 2a765cfb4d..22d7b5794f 100644
--- a/scripts/vr-edit/modules/laser.js
+++ b/scripts/vr-edit/modules/laser.js
@@ -12,7 +12,8 @@
 
 Laser = function (side) {
     // Draws hand lasers.
-    // May intersect with entities or bounding box of other hand's selection.
+    // May intersect with overlays or entities, or bounding box of other hand's selection.
+    // Laser dot is always drawn on UI entities.
 
     "use strict";
 
@@ -47,6 +48,8 @@ Laser = function (side) {
         LEFT_HAND = 0,
         AVATAR_SELF_ID = "{00000000-0000-0000-0000-000000000001}",
 
+        uiEntityIDs = [],
+
         intersection;
 
     function colorPow(color, power) {  // Per handControllerGrab.js.
@@ -109,7 +112,7 @@ Laser = function (side) {
         });
     }
 
-    function display(origin, direction, distance, isClicked) {
+    function display(origin, direction, distance, isPressed, isClicked) {
         var searchTarget,
             sphereSize,
             color,
@@ -121,7 +124,11 @@ Laser = function (side) {
         color = isClicked ? COLORS_GRAB_SEARCHING_FULL_SQUEEZE : COLORS_GRAB_SEARCHING_HALF_SQUEEZE;
         brightColor = isClicked ? COLORS_GRAB_SEARCHING_FULL_SQUEEZE_BRIGHT : COLORS_GRAB_SEARCHING_HALF_SQUEEZE_BRIGHT;
 
-        updateLine(origin, searchTarget, color);
+        if (isPressed) {
+            updateLine(origin, searchTarget, color);
+        } else {
+            Overlays.editOverlay(laserLine, { visible: false });
+        }
         updateSphere(searchTarget, sphereSize, color, brightColor);
     }
 
@@ -130,6 +137,10 @@ Laser = function (side) {
         Overlays.editOverlay(laserSphere, { visible: false });
     }
 
+    function setUIEntities(entityIDs) {
+        uiEntityIDs = entityIDs;
+    }
+
     function update(hand) {
         var handPosition,
             handOrientation,
@@ -140,7 +151,7 @@ Laser = function (side) {
             return;
         }
 
-        if (!hand.intersection().intersects && hand.triggerPressed()) {
+        if (!hand.intersection().intersects) {
             handPosition = hand.position();
             handOrientation = hand.orientation();
             deltaOrigin = Vec3.multiplyQbyV(handOrientation, GRAB_POINT_SPHERE_OFFSET);
@@ -150,20 +161,47 @@ Laser = function (side) {
                 length: PICK_MAX_DISTANCE
             };
 
-            intersection = Overlays.findRayIntersection(pickRay, PRECISION_PICKING, NO_INCLUDE_IDS, NO_EXCLUDE_IDS,
-                VISIBLE_ONLY);
-            if (!intersection.intersects) {
-                intersection = Entities.findRayIntersection(pickRay, PRECISION_PICKING, NO_INCLUDE_IDS, NO_EXCLUDE_IDS,
-                    VISIBLE_ONLY);
-                intersection.editableEntity = intersection.intersects && Entities.hasEditableRoot(intersection.entityID);
-            }
-            intersection.laserIntersected = true;
-            laserLength = (specifiedLaserLength !== null)
-                ? specifiedLaserLength
-                : (intersection.intersects ? intersection.distance : PICK_MAX_DISTANCE);
+            if (hand.triggerPressed()) {
 
-            isLaserOn = true;
-            display(pickRay.origin, pickRay.direction, laserLength, hand.triggerClicked());
+                // Normal laser operation with trigger.
+                intersection = Overlays.findRayIntersection(pickRay, PRECISION_PICKING, NO_INCLUDE_IDS, NO_EXCLUDE_IDS,
+                    VISIBLE_ONLY);
+                if (!intersection.intersects) {
+                    intersection = Entities.findRayIntersection(pickRay, PRECISION_PICKING, NO_INCLUDE_IDS, NO_EXCLUDE_IDS,
+                        VISIBLE_ONLY);
+                    intersection.editableEntity = intersection.intersects && Entities.hasEditableRoot(intersection.entityID);
+                }
+                intersection.laserIntersected = true;
+                laserLength = (specifiedLaserLength !== null)
+                    ? specifiedLaserLength
+                    : (intersection.intersects ? intersection.distance : PICK_MAX_DISTANCE);
+                isLaserOn = true;
+                display(pickRay.origin, pickRay.direction, laserLength, true, hand.triggerClicked());
+
+            } else {
+
+                // Special hovering of UI.
+                intersection = Overlays.findRayIntersection(pickRay, PRECISION_PICKING, NO_INCLUDE_IDS, NO_EXCLUDE_IDS,
+                    VISIBLE_ONLY);  // Check for overlay intersections in case they occlude the UI entities.
+                if (!intersection.intersects) {
+                    intersection = Entities.findRayIntersection(pickRay, PRECISION_PICKING, uiEntityIDs, NO_EXCLUDE_IDS,
+                        VISIBLE_ONLY);
+                }
+                if (intersection.intersects && intersection.entityID) {
+                    intersection.laserIntersected = true;
+                    laserLength = (specifiedLaserLength !== null)
+                        ? specifiedLaserLength
+                        : (intersection.intersects ? intersection.distance : PICK_MAX_DISTANCE);
+                    isLaserOn = true;
+                    display(pickRay.origin, pickRay.direction, laserLength, false, false);
+                } else {
+                    if (isLaserOn) {
+                        isLaserOn = false;
+                        hide();
+                    }
+                }
+
+            }
         } else {
             intersection = {
                 intersects: false
@@ -223,6 +261,7 @@ Laser = function (side) {
     }
 
     return {
+        setUIEntities: setUIEntities,
         update: update,
         intersection: getIntersection,
         setLength: setLength,
diff --git a/scripts/vr-edit/modules/toolMenu.js b/scripts/vr-edit/modules/toolMenu.js
index d67a9349e4..6e81ef7634 100644
--- a/scripts/vr-edit/modules/toolMenu.js
+++ b/scripts/vr-edit/modules/toolMenu.js
@@ -66,6 +66,10 @@ ToolMenu = function (side, scaleModeChangedCallback) {
         }
     }
 
+    function getEntityIDs() {
+        return [panelEntity, buttonEntity];
+    }
+
     function update() {
         // TODO
     }
@@ -126,6 +130,7 @@ ToolMenu = function (side, scaleModeChangedCallback) {
 
     return {
         setHand: setHand,
+        getEntityIDs: getEntityIDs,
         update: update,
         display: display,
         clear: clear,
diff --git a/scripts/vr-edit/vr-edit.js b/scripts/vr-edit/vr-edit.js
index dcd8145472..c03e40284e 100644
--- a/scripts/vr-edit/vr-edit.js
+++ b/scripts/vr-edit/vr-edit.js
@@ -92,6 +92,10 @@
         hand = new Hand(side);
         laser = new Laser(side);
 
+        function setUIEntities(entityIDs) {
+            laser.setUIEntities(entityIDs);
+        }
+
         function getHand() {
             return hand;
         }
@@ -140,6 +144,7 @@
         }
 
         return {
+            setUIEntities: setUIEntities,
             hand: getHand,
             laser: getLaser,
             getIntersection: getIntersection,
@@ -154,17 +159,32 @@
         // Tool menu and Create palette.
 
         var // Primary objects.
-            toolMenu;
+            toolMenu,
+
+            // References.
+            leftInputs,
+            rightInputs;
 
         toolMenu = new ToolMenu(side);
 
 
+        function setReferences(left, right) {
+            leftInputs = left;
+            rightInputs = right;
+        }
+
         function setHand(side) {
             toolMenu.setHand(side);
         }
 
         function display() {
+            var uiEntityIDs;
+
             toolMenu.display();
+
+            uiEntityIDs = toolMenu.getEntityIDs();
+            leftInputs.setUIEntities(uiEntityIDs);
+            rightInputs.setUIEntities(uiEntityIDs);
         }
 
         function update() {
@@ -172,6 +192,8 @@
         }
 
         function clear() {
+            leftInputs.setUIEntities([]);
+            rightInputs.setUIEntities([]);
             toolMenu.clear();
         }
 
@@ -187,6 +209,7 @@
         }
 
         return {
+            setReferences: setReferences,
             setHand: setHand,
             display: display,
             update: update,
@@ -987,6 +1010,7 @@
 
         // UI object.
         ui = new UI(otherHand(dominantHand));
+        ui.setReferences(inputs[LEFT_HAND], inputs[RIGHT_HAND]);
 
         // Editor objects.
         editors[LEFT_HAND] = new Editor(LEFT_HAND);