diff --git a/scripts/system/controllers/controllerModules/equipEntity.js b/scripts/system/controllers/controllerModules/equipEntity.js
index 09d64b5d05..10bd5d28d3 100644
--- a/scripts/system/controllers/controllerModules/equipEntity.js
+++ b/scripts/system/controllers/controllerModules/equipEntity.js
@@ -489,7 +489,7 @@ EquipHotspotBuddy.prototype.update = function(deltaTime, timestamp, controllerDa
                 entityID: this.targetEntityID
             };
 
-            Messages.sendMessage('Hifi-unhighlight-entity', JSON.stringify(message));
+            Messages.sendLocalMessage('Hifi-unhighlight-entity', JSON.stringify(message));
             var grabbedProperties = Entities.getEntityProperties(this.targetEntityID);
 
             // if an object is "equipped" and has a predefined offset, use it.
diff --git a/scripts/system/controllers/controllerModules/highlightNearbyEntities.js b/scripts/system/controllers/controllerModules/highlightNearbyEntities.js
index a102a5d735..5def5dcd3b 100644
--- a/scripts/system/controllers/controllerModules/highlightNearbyEntities.js
+++ b/scripts/system/controllers/controllerModules/highlightNearbyEntities.js
@@ -1,7 +1,9 @@
-"use strict";
-
+//
 //  highlightNearbyEntities.js
 //
+//  Created by Dante Ruiz 2018-4-10
+//  Copyright 2017 High Fidelity, Inc.
+//
 //  Distributed under the Apache License, Version 2.0.
 //  See the accompanying file LICENSE or http://www.apache.org/licenses/LICENSE-2.0.html
 
@@ -12,6 +14,8 @@
    DEFAULT_SEARCH_SPHERE_DISTANCE, getGrabbableData, makeLaserParams, entityIsCloneable, Messages, print
 */
 
+"use strict";
+
 (function () {
     Script.include("/~/system/libraries/controllerDispatcherUtils.js");
     Script.include("/~/system/libraries/controllers.js");
@@ -40,15 +44,16 @@
 
 
         this.isGrabable = function(controllerData, props) {
+            var entityIsGrabable = false;
             if (dispatcherUtils.entityIsGrabbable(props) || entityIsCloneable(props)) {
                 // if we've attempted to grab a child, roll up to the root of the tree
                 var groupRootProps = dispatcherUtils.findGroupParent(controllerData, props);
-                if (dispatcherUtils.entityIsGrabbable(groupRootProps)) {
-                    return true;
+                entityIsGrabable = true;
+                if (!dispatcherUtils.entityIsGrabbable(groupRootProps)) {
+                    entityIsGrabable = false;
                 }
-                return true;
             }
-            return false;
+            return entityIsGrabable;
         };
 
         this.hasHyperLink = function(props) {
diff --git a/scripts/system/controllers/controllerModules/mouseHighlightEntities.js b/scripts/system/controllers/controllerModules/mouseHighlightEntities.js
new file mode 100644
index 0000000000..696c819143
--- /dev/null
+++ b/scripts/system/controllers/controllerModules/mouseHighlightEntities.js
@@ -0,0 +1,77 @@
+//
+//  mouseHighlightEntities.js
+//
+//  scripts/system/controllers/controllerModules/
+//
+//  Created by Dante Ruiz 2018-4-11
+//  Copyright 2017 High Fidelity, Inc.
+//
+//  Distributed under the Apache License, Version 2.0.
+//  See the accompanying file LICENSE or http://www.apache.org/licenses/LICENSE-2.0.html
+//
+
+/* jslint bitwise: true */
+
+/* global Script, print, Entities, Picks, HMD */
+
+
+(function() {
+    var dispatcherUtils = Script.require("/~/system/libraries/controllerDispatcherUtils.js");
+
+    function MouseHighlightEntities() {
+        this.highlightedEntity = null;
+
+        this.parameters = dispatcherUtils.makeDispatcherModuleParameters(
+            5,
+            ["mouse"],
+            [],
+            100);
+
+        this.isReady = function(controllerData) {
+            if (HMD.active) {
+                print("????");
+                if (this.highlightedEntity) {
+                    // unhighlight entity
+                }
+            } else {
+                var pickResult = controllerData.mouseRayPick;
+                if (pickResult.type === Picks.INTERSECTED_ENTITY) {
+                    var targetEntityID = pickResult.objectID;
+
+                    if (this.highlightedEntity !== targetEntityID) {
+                        var targetProps = Entities.getEntityProperties(targetEntityID, [
+                            "dynamic", "shapeType", "position",
+                            "rotation", "dimensions", "density",
+                            "userData", "locked", "type", "href"
+                        ]);
+
+                        if (this.highlightedEntity) {
+                            dispatcherUtils.unhighlightTargetEntity(this.highlightedEntity);
+                            this.highlightedEntity = null;
+                        }
+
+                        if (dispatcherUtils.entityIsGrabbable(targetProps)) {
+                            // highlight entity
+                            dispatcherUtils.highlightTargetEntity(targetEntityID);
+                            this.highlightedEntity = targetEntityID;
+                        }
+                    }
+                }
+            }
+
+            return dispatcherUtils.makeRunningValues(false, [], []);
+        };
+
+        this.run = function(controllerData) {
+            return this.isReady(controllerData);
+        };
+    }
+
+    var mouseHighlightEntities = new MouseHighlightEntities();
+    dispatcherUtils.enableDispatcherModule("MouseHighlightEntities", mouseHighlightEntities);
+
+    function cleanup() {
+        dispatcherUtils.disableDispatcherModule("MouseHighlightEntities");
+    }
+    Script.scriptEnding.connect(cleanup);
+})();
diff --git a/scripts/system/controllers/controllerModules/nearActionGrabEntity.js b/scripts/system/controllers/controllerModules/nearActionGrabEntity.js
index a1e4cff40d..a4e439fe2f 100644
--- a/scripts/system/controllers/controllerModules/nearActionGrabEntity.js
+++ b/scripts/system/controllers/controllerModules/nearActionGrabEntity.js
@@ -120,7 +120,7 @@ Script.include("/~/system/libraries/cloneEntityUtils.js");
                 entityID: this.targetEntityID
             };
 
-            Messages.sendMessage('Hifi-unhighlight-entity', JSON.stringify(message));
+            Messages.sendLocalMessage('Hifi-unhighlight-entity', JSON.stringify(message));
         };
 
         // this is for when the action is going to time-out
diff --git a/scripts/system/controllers/controllerModules/nearParentGrabEntity.js b/scripts/system/controllers/controllerModules/nearParentGrabEntity.js
index 55dde21f46..d454d20a02 100644
--- a/scripts/system/controllers/controllerModules/nearParentGrabEntity.js
+++ b/scripts/system/controllers/controllerModules/nearParentGrabEntity.js
@@ -95,7 +95,7 @@ Script.include("/~/system/libraries/cloneEntityUtils.js");
                 entityID: this.targetEntityID
             };
 
-            Messages.sendMessage('Hifi-unhighlight-entity', JSON.stringify(message));
+            Messages.sendLocalMessage('Hifi-unhighlight-entity', JSON.stringify(message));
             var handJointIndex;
             // if (this.ignoreIK) {
             //     handJointIndex = this.controllerJointIndex;
diff --git a/scripts/system/controllers/controllerScripts.js b/scripts/system/controllers/controllerScripts.js
index 058c99349d..50e627fe5d 100644
--- a/scripts/system/controllers/controllerScripts.js
+++ b/scripts/system/controllers/controllerScripts.js
@@ -33,7 +33,8 @@ var CONTOLLER_SCRIPTS = [
     "controllerModules/mouseHMD.js",
     "controllerModules/scaleEntity.js",
     "controllerModules/highlightNearbyEntities.js",
-    "controllerModules/nearGrabHyperLinkEntity.js"
+    "controllerModules/nearGrabHyperLinkEntity.js",
+    "controllerModules/mouseHighlightEntities.js"
 ];
 
 var DEBUG_MENU_ITEM = "Debug defaultScripts.js";