diff --git a/app/client/src/components/designSystems/appsmith/PositionedContainer.tsx b/app/client/src/components/designSystems/appsmith/PositionedContainer.tsx
index 2578241646..fe932e6fd6 100644
--- a/app/client/src/components/designSystems/appsmith/PositionedContainer.tsx
+++ b/app/client/src/components/designSystems/appsmith/PositionedContainer.tsx
@@ -21,6 +21,7 @@ import { POSITIONED_WIDGET } from "constants/componentClassNameConstants";
 import equal from "fast-deep-equal";
 import { widgetTypeClassname } from "widgets/WidgetUtils";
 import { checkIsDropTarget } from "WidgetProvider/factory/helpers";
+import { useHoverToFocusWidget } from "utils/hooks/useHoverToFocusWidget";
 
 const PositionedWidget = styled.div<{
   zIndexOnHover: number;
@@ -157,6 +158,11 @@ export function PositionedContainer(
     return styles;
   }, [style, isReflowEffected, onHoverZIndex, zIndex, reflowedPosition]);
 
+  const [handleMouseOver, handleMouseLeave] = useHoverToFocusWidget(
+    props.widgetId,
+    props.resizeDisabled,
+  );
+
   // TODO: Experimental fix for sniping mode. This should be handled with a single event
   return (
     <PositionedWidget
@@ -168,6 +174,8 @@ export function PositionedContainer(
       id={props.widgetId}
       key={`positioned-container-${props.widgetId}`}
       onClickCapture={clickToSelectWidget}
+      onMouseLeave={handleMouseLeave}
+      onMouseOver={handleMouseOver}
       ref={ref}
       //Before you remove: This is used by property pane to reference the element
       style={containerStyle}
diff --git a/app/client/src/layoutSystems/common/draggable/DraggableComponent.tsx b/app/client/src/layoutSystems/common/draggable/DraggableComponent.tsx
index 05f4725940..b2a7642927 100644
--- a/app/client/src/layoutSystems/common/draggable/DraggableComponent.tsx
+++ b/app/client/src/layoutSystems/common/draggable/DraggableComponent.tsx
@@ -17,8 +17,6 @@ import {
   useWidgetDragResize,
 } from "utils/hooks/dragResizeHooks";
 import { getShouldAllowDrag } from "selectors/widgetDragSelectors";
-import { combinedPreviewModeSelector } from "selectors/editorSelectors";
-import { getAnvilSpaceDistributionStatus } from "layoutSystems/anvil/integrations/selectors";
 
 const DraggableWrapper = styled.div<{ draggable: boolean }>`
   display: block;
@@ -57,8 +55,8 @@ const WidgetBoundaries = styled.div`
 `;
 
 function DraggableComponent(props: DraggableComponentProps) {
-  // Dispatch hook handy to set a widget as focused/selected
-  const { focusWidget, selectWidget } = useWidgetSelection();
+  // Dispatch hook handy to set a widget as selected
+  const { selectWidget } = useWidgetSelection();
 
   const shouldAllowDrag = useSelector(getShouldAllowDrag);
   // Dispatch hook handy to set any `DraggableComponent` as dragging/ not dragging
@@ -76,9 +74,6 @@ function DraggableComponent(props: DraggableComponentProps) {
     (state: AppState) => state.ui.widgetDragResize.isResizing,
   );
 
-  // This state tells us whether space redistribution is in process
-  const isDistributingSpace = useSelector(getAnvilSpaceDistributionStatus);
-
   // This state tells us whether a `DraggableComponent` is dragging
   const isDragging = useSelector(
     (state: AppState) => state.ui.widgetDragResize.isDragging,
@@ -89,8 +84,6 @@ function DraggableComponent(props: DraggableComponentProps) {
       state.ui.widgetDragResize?.dragDetails?.draggedOn === props.parentId,
   );
 
-  const isPreviewMode = useSelector(combinedPreviewModeSelector);
-
   // True when any widget is dragging or resizing, including this one
   const isResizingOrDragging = !!isResizing || !!isDragging;
   const isCurrentWidgetDragging = isDragging && isSelected;
@@ -98,23 +91,6 @@ function DraggableComponent(props: DraggableComponentProps) {
   const showBoundary =
     !props.isFlexChild && (isCurrentWidgetDragging || isDraggingSibling);
 
-  // When mouse is over this draggable
-  const handleMouseOver = (e: React.MouseEvent) => {
-    focusWidget &&
-      !isResizingOrDragging &&
-      !isFocused &&
-      !isDistributingSpace &&
-      !props.resizeDisabled &&
-      !isPreviewMode &&
-      focusWidget(props.widgetId, e.metaKey);
-    e.stopPropagation();
-  };
-
-  const handleMouseLeave = () => {
-    // on leaving a widget, we reset the focused widget
-    focusWidget && focusWidget();
-  };
-
   // Display this draggable based on the current drag state
   const dragWrapperStyle: CSSProperties = {
     display: !props.isFlexChild && isCurrentWidgetDragging ? "none" : "block",
@@ -156,8 +132,6 @@ function DraggableComponent(props: DraggableComponentProps) {
       data-testid={isSelected ? "t--selected" : ""}
       draggable={allowDrag}
       onDragStart={onDragStart}
-      onMouseLeave={handleMouseLeave}
-      onMouseOver={handleMouseOver}
       ref={draggableRef}
       style={dragWrapperStyle}
     >
diff --git a/app/client/src/utils/hooks/useHoverToFocusWidget.ts b/app/client/src/utils/hooks/useHoverToFocusWidget.ts
new file mode 100644
index 0000000000..2ac017ac2f
--- /dev/null
+++ b/app/client/src/utils/hooks/useHoverToFocusWidget.ts
@@ -0,0 +1,50 @@
+import { useWidgetSelection } from "./useWidgetSelection";
+import { useSelector } from "react-redux";
+import { isCurrentWidgetFocused } from "selectors/widgetSelectors";
+import { getAnvilSpaceDistributionStatus } from "layoutSystems/anvil/integrations/selectors";
+import { combinedPreviewModeSelector } from "selectors/editorSelectors";
+import type { AppState } from "@appsmith/reducers";
+import type React from "react";
+
+export const useHoverToFocusWidget = (
+  widgetId: string,
+  resizeDisabled?: boolean,
+) => {
+  const { focusWidget } = useWidgetSelection();
+
+  // This state tels us which widget is focused
+  // The value is the widgetId of the focused widget.
+  const isFocused = useSelector(isCurrentWidgetFocused(widgetId));
+
+  // This state tells us whether a `ResizableComponent` is resizing
+  const isResizing = useSelector(
+    (state: AppState) => state.ui.widgetDragResize.isResizing,
+  );
+  // This state tells us whether a `DraggableComponent` is dragging
+  const isDragging = useSelector(
+    (state: AppState) => state.ui.widgetDragResize.isDragging,
+  );
+
+  const isResizingOrDragging = isResizing || isDragging;
+  // This state tells us whether space redistribution is in process
+  const isDistributingSpace = useSelector(getAnvilSpaceDistributionStatus);
+  const isPreviewMode = useSelector(combinedPreviewModeSelector);
+  // When mouse is over this draggable
+  const handleMouseOver = (e: React.MouseEvent) => {
+    focusWidget &&
+      !isResizingOrDragging &&
+      !isFocused &&
+      !isDistributingSpace &&
+      !resizeDisabled &&
+      !isPreviewMode &&
+      focusWidget(widgetId, e.metaKey);
+    e.stopPropagation();
+  };
+
+  const handleMouseLeave = () => {
+    // on leaving a widget, we reset the focused widget
+    focusWidget && focusWidget();
+  };
+
+  return [handleMouseOver, handleMouseLeave];
+};