diff --git a/containments/desktop/package/contents/ui/AppletAppearance.qml b/containments/desktop/package/contents/ui/AppletAppearance.qml
--- a/containments/desktop/package/contents/ui/AppletAppearance.qml
+++ b/containments/desktop/package/contents/ui/AppletAppearance.qml
@@ -36,7 +36,8 @@
     property int handleHeight: (height < minimumHandleHeight) ? minimumHandleHeight : height
     property string category
 
-    property bool showAppletHandle: false
+    property bool showAppletHandle: temporaryShowAppletHandle || toolBox.open
+    property bool temporaryShowAppletHandle: false
     property real controlsOpacity: (plasmoid.immutable || !showAppletHandle) ? 0 : 1
     property string backgroundHints: "NoBackground"
     property bool hasBackground: false
@@ -216,7 +217,7 @@
         onPressAndHold: {
             if (!plasmoid.immutable && plasmoid.configuration.pressToMove) {
                 if (!dragMouseArea.dragging && !root.isDrag(pressX, pressY, mouse.x, mouse.y)) {
-                    showAppletHandle = true;
+                    temporaryShowAppletHandle = true;
 
                     dragMouseArea.dragging = true;
 
@@ -245,10 +246,10 @@
             onTriggered: {
                 if (mouseListener.containsMouse || (appletHandle.item && (appletHandle.item.containsMouse || appletHandle.item.pressed))) {
                     if (!plasmoid.configuration.pressToMove) {
-                        showAppletHandle = true;
+                        temporaryShowAppletHandle = true;
                     }
                 } else if (!dragMouseArea.dragging) {
-                    showAppletHandle = false;
+                    temporaryShowAppletHandle = false;
                 }
             }
         }
@@ -282,7 +283,7 @@
                 onImmutableChanged: {
 //                     print(" TB dragMouseArea.visible: " + plasmoid.immutable)
                     dragMouseArea.visible = !plasmoid.immutable;
-                    showAppletHandle = false;
+                    temporaryShowAppletHandle = false;
                 }
                 onAppletRemoved: {
 //                     print("Applet removed Applet-" + applet.id)
diff --git a/containments/desktop/package/contents/ui/main.qml b/containments/desktop/package/contents/ui/main.qml
--- a/containments/desktop/package/contents/ui/main.qml
+++ b/containments/desktop/package/contents/ui/main.qml
@@ -397,6 +397,9 @@
         onPressed: {
             root.forceActiveFocus()
             mouse.accepted = false // Bug 351277
+            if (toolBox && toolBox.open) {
+                toolBox.open = false;
+            }
         }
     }
 
diff --git a/toolboxes/desktoptoolbox/contents/ui/ToolBoxButton.qml b/toolboxes/desktoptoolbox/contents/ui/ToolBoxButton.qml
--- a/toolboxes/desktoptoolbox/contents/ui/ToolBoxButton.qml
+++ b/toolboxes/desktoptoolbox/contents/ui/ToolBoxButton.qml
@@ -259,9 +259,8 @@
             }
         }
         onClicked: {
-            toolBoxLoader.active = true
             // the dialog auto-closes on losing focus
-            toolBoxLoader.item.visible = !main.dialogWasVisible
+            main.open = !main.dialogWasVisible
             plasmoid.focus = true;
         }
         onReleased: {
diff --git a/toolboxes/desktoptoolbox/contents/ui/ToolBoxItem.qml b/toolboxes/desktoptoolbox/contents/ui/ToolBoxItem.qml
--- a/toolboxes/desktoptoolbox/contents/ui/ToolBoxItem.qml
+++ b/toolboxes/desktoptoolbox/contents/ui/ToolBoxItem.qml
@@ -39,7 +39,7 @@
     // because of the dialog closing right on the key *press* event
     Keys.onReleased: {
         if (event.key === Qt.Key_Escape) {
-            toolBoxLoader.item.visible = false
+            main.open = false
             event.accepted = true
         }
     }
@@ -53,7 +53,7 @@
                     model[currentIndex].trigger()
                 }
             }
-            toolBoxLoader.item.visible = false
+            main.open = false
             event.accepted = true
         }
     }
@@ -118,7 +118,7 @@
         onExited: menu.currentIndex = -1
 
         onClicked: {
-            toolBoxLoader.item.visible = false
+            main.open = false
             if (modelData.operation) {
                 performOperation(modelData.operation)
             } else {
diff --git a/toolboxes/desktoptoolbox/contents/ui/ToolBoxRoot.qml b/toolboxes/desktoptoolbox/contents/ui/ToolBoxRoot.qml
--- a/toolboxes/desktoptoolbox/contents/ui/ToolBoxRoot.qml
+++ b/toolboxes/desktoptoolbox/contents/ui/ToolBoxRoot.qml
@@ -20,6 +20,7 @@
  */
 
 import QtQuick 2.2
+import QtQuick.Window 2.2
 import org.kde.plasma.core 2.0 as PlasmaCore
 import org.kde.plasma.components 2.0 as PlasmaComponents
 import org.kde.kquickcontrolsaddons 2.0 as KQuickControlsAddons
@@ -39,6 +40,28 @@
         onAvailableScreenRegionChanged: placeToolBoxTimer.restart();
     }
 
+    //FIXME: this timer shouldn't exist, but unfortunately when the focus passes
+    //from the desktop to the dialog or vice versa, the event is not atomic
+    //and ends up with neither of those having focus, hiding the dialog when
+    //it shouldn't
+    Timer {
+        id: hideDialogTimer
+        interval: 0
+        //NOTE: it's checking activeFocusItem instead of active as active doesn't correctly signal its change
+        property bool desktopOrDialogFocus: main.Window.activeFocusItem != null || (toolBoxLoader.item && toolBoxLoader.item.activeFocusItem != null)
+        onDesktopOrDialogFocusChanged: {
+            if (!desktopOrDialogFocus) {
+                hideDialogTimer.restart();
+            }
+                
+        }
+        onTriggered: {
+            if (!desktopOrDialogFocus) {
+                open = false;
+            }
+        }
+    }
+
     signal minimumWidthChanged
     signal minimumHeightChanged
     signal maximumWidthChanged
@@ -50,6 +73,15 @@
     property int iconWidth: units.iconSizes.smallMedium
     property int iconHeight: iconWidth
     property bool dialogWasVisible: false
+    property bool open: false
+    onOpenChanged: {
+        if (open) {
+            toolBoxLoader.active = true;
+            toolBoxLoader.item.visible = true;
+        } else {
+            toolBoxLoader.item.visible = false;
+        }
+    }
 
     onWidthChanged: placeToolBoxTimer.restart();
     onHeightChanged: placeToolBoxTimer.restart();
@@ -101,7 +133,7 @@
             flags: Qt.WindowStaysOnTopHint
             location: PlasmaCore.Types.Floating
             visualParent: toolBoxButton
-            hideOnWindowDeactivate: true
+         //   hideOnWindowDeactivate: true
             mainItem: ToolBoxItem {
                 id: dialog