diff --git a/scripts/system/controllers/controllerModules/highlightNearbyEntities.js b/scripts/system/controllers/controllerModules/highlightNearbyEntities.js
index a66f7bd144..bc09ebee7a 100644
--- a/scripts/system/controllers/controllerModules/highlightNearbyEntities.js
+++ b/scripts/system/controllers/controllerModules/highlightNearbyEntities.js
@@ -56,6 +56,12 @@
             return canGrabEntity;
         };
 
+        this.clearAll = function() {
+            this.highlightedEntities.forEach(function(entity) {
+                dispatcherUtils.unhighlightTargetEntity(entity);
+            });
+        };
+
         this.hasHyperLink = function(props) {
             return (props.href !== "" && props.href !== undefined);
         };
@@ -89,7 +95,9 @@
                 }
                 if (this.isGrabable(controllerData, props) || this.hasHyperLink(props)) {
                     dispatcherUtils.highlightTargetEntity(props.id);
-                    newHighlightedEntities.push(props.id);
+                    if (newHighlightedEntities.indexOf(props.id) < 0) {
+                        newHighlightedEntities.push(props.id);
+                    }
                 }
             }
 
@@ -119,7 +127,6 @@
             if (channel === 'Hifi-unhighlight-entity') {
                 try {
                     data = JSON.parse(message);
-
                     var hand = data.hand;
                     if (hand === dispatcherUtils.LEFT_HAND) {
                         leftHighlightNearbyEntities.removeEntityFromHighlightList(data.entityID);
@@ -129,6 +136,9 @@
                 } catch (e) {
                     print("Failed to parse message");
                 }
+            } else if (channel === 'Hifi-unhighlight-all') {
+                leftHighlightNearbyEntities.clearAll();
+                rightHighlightNearbyEntities.clearAll();
             }
         }
     };
@@ -143,6 +153,7 @@
         dispatcherUtils.disableDispatcherModule("RightHighlightNearbyEntities");
     }
     Messages.subscribe('Hifi-unhighlight-entity');
+    Messages.subscribe('Hifi-unhighlight-all');
     Messages.messageReceived.connect(handleMessage);
     Script.scriptEnding.connect(cleanup);
 }());
diff --git a/scripts/system/controllers/controllerModules/inEditMode.js b/scripts/system/controllers/controllerModules/inEditMode.js
index f7e86f9042..3ad7902d71 100644
--- a/scripts/system/controllers/controllerModules/inEditMode.js
+++ b/scripts/system/controllers/controllerModules/inEditMode.js
@@ -78,6 +78,7 @@ Script.include("/~/system/libraries/utils.js");
                 if (controllerData.triggerValues[this.hand] < TRIGGER_ON_VALUE) {
                     this.triggerClicked = false;
                 }
+                Messages.sendLocalMessage('Hifi-unhighlight-all', '');
                 return makeRunningValues(true, [], []);
             }
             this.triggerClicked = false;
diff --git a/scripts/system/controllers/controllerModules/mouseHighlightEntities.js b/scripts/system/controllers/controllerModules/mouseHighlightEntities.js
index 6af1055a69..3180e58e2c 100644
--- a/scripts/system/controllers/controllerModules/mouseHighlightEntities.js
+++ b/scripts/system/controllers/controllerModules/mouseHighlightEntities.js
@@ -12,14 +12,16 @@
 
 /* jslint bitwise: true */
 
-/* global Script, print, Entities, Picks, HMD */
+/* global Script, print, Entities, Picks, HMD, Controller, MyAvatar, isInEditMode*/
 
 
 (function() {
+    Script.include("/~/system/libraries/utils.js");
     var dispatcherUtils = Script.require("/~/system/libraries/controllerDispatcherUtils.js");
 
     function MouseHighlightEntities() {
         this.highlightedEntity = null;
+        this.grabbedEntity = null;
 
         this.parameters = dispatcherUtils.makeDispatcherModuleParameters(
             5,
@@ -27,13 +29,18 @@
             [],
             100);
 
+        this.setGrabbedEntity = function(entity) {
+            this.grabbedEntity = entity;
+            this.highlightedEntity = null;
+        };
+
         this.isReady = function(controllerData) {
             if (HMD.active) {
                 if (this.highlightedEntity) {
                     dispatcherUtils.unhighlightTargetEntity(this.highlightedEntity);
                     this.highlightedEntity = null;
                 }
-            } else {
+            } else if (!this.grabbedEntity && !isInEditMode()) {
                 var pickResult = controllerData.mouseRayPick;
                 if (pickResult.type === Picks.INTERSECTED_ENTITY) {
                     var targetEntityID = pickResult.objectID;
@@ -70,8 +77,29 @@
     var mouseHighlightEntities = new MouseHighlightEntities();
     dispatcherUtils.enableDispatcherModule("MouseHighlightEntities", mouseHighlightEntities);
 
+    var handleMessage = function(channel, message, sender) {
+        var data;
+        if (sender === MyAvatar.sessionUUID) {
+            if (channel === 'Hifi-Object-Manipulation') {
+                try {
+                    data = JSON.parse(message);
+                    if (data.action === 'grab') {
+                        var grabbedEntity = data.grabbedEntity;
+                        mouseHighlightEntities.setGrabbedEntity(grabbedEntity);
+                    } else if (data.action === 'release') {
+                        mouseHighlightEntities.setGrabbedEntity(null);
+                    }
+                } catch (e) {
+                    print("Warning: mouseHighlightEntities -- error parsing Hifi-Object-Manipulation: " + message);
+                }
+            }
+        }
+    };
+
     function cleanup() {
         dispatcherUtils.disableDispatcherModule("MouseHighlightEntities");
     }
+    Messages.subscribe('Hifi-Object-Manipulation');
+    Messages.messageReceived.connect(handleMessage);
     Script.scriptEnding.connect(cleanup);
 })();
diff --git a/scripts/system/controllers/grab.js b/scripts/system/controllers/grab.js
index 8ae94a4caa..a835373e4d 100644
--- a/scripts/system/controllers/grab.js
+++ b/scripts/system/controllers/grab.js
@@ -409,7 +409,7 @@ Grabber.prototype.pressEvent = function(event) {
     var args = "mouse";
     Entities.callEntityMethod(this.entityID, "startDistanceGrab", args);
 
-    Messages.sendMessage('Hifi-Object-Manipulation', JSON.stringify({
+    Messages.sendLocalMessage('Hifi-Object-Manipulation', JSON.stringify({
         action: 'grab',
         grabbedEntity: this.entityID
     }));
@@ -450,7 +450,7 @@ Grabber.prototype.releaseEvent = function(event) {
         var args = "mouse";
         Entities.callEntityMethod(this.entityID, "releaseGrab", args);
 
-        Messages.sendMessage('Hifi-Object-Manipulation', JSON.stringify({
+        Messages.sendLocalMessage('Hifi-Object-Manipulation', JSON.stringify({
             action: 'release',
             grabbedEntity: this.entityID,
             joint: "mouse"