diff --git a/editor/src/messages/portfolio/document/document_message_handler.rs b/editor/src/messages/portfolio/document/document_message_handler.rs
index a7a86d8d..3be6f50a 100644
--- a/editor/src/messages/portfolio/document/document_message_handler.rs
+++ b/editor/src/messages/portfolio/document/document_message_handler.rs
@@ -757,6 +757,8 @@ impl MessageHandler<DocumentMessage, (u64, &InputPreprocessorMessageHandler, &Pe
 			}
 			SetOverlaysVisibility { visible } => {
 				self.overlays_visible = visible;
+				responses.push_back(BroadcastEvent::ToolAbort.into());
+				responses.push_back(OverlaysMessage::ClearAllOverlays.into());
 				responses.push_back(OverlaysMessage::Rerender.into());
 			}
 			SetSelectedLayers { replacement_selected_layers } => {
diff --git a/editor/src/messages/portfolio/document/overlays/overlays_message_handler.rs b/editor/src/messages/portfolio/document/overlays/overlays_message_handler.rs
index d32ab075..b7cf8fbf 100644
--- a/editor/src/messages/portfolio/document/overlays/overlays_message_handler.rs
+++ b/editor/src/messages/portfolio/document/overlays/overlays_message_handler.rs
@@ -24,7 +24,9 @@ impl MessageHandler<OverlaysMessage, (bool, &FontCache, &InputPreprocessorMessag
 			},
 
 			// Messages
-			ClearAllOverlays => todo!(),
+			ClearAllOverlays => {
+				self.overlays_document = DocumentLegacy::default();
+			}
 			Rerender =>
 			// Render overlays
 			{
diff --git a/editor/src/messages/portfolio/portfolio_message_handler.rs b/editor/src/messages/portfolio/portfolio_message_handler.rs
index 5950ec67..dcdb68e9 100644
--- a/editor/src/messages/portfolio/portfolio_message_handler.rs
+++ b/editor/src/messages/portfolio/portfolio_message_handler.rs
@@ -506,6 +506,7 @@ impl MessageHandler<PortfolioMessage, (&InputPreprocessorMessageHandler, &Prefer
 
 				if self.active_document().is_some() {
 					responses.push_back(BroadcastEvent::ToolAbort.into());
+					responses.push_back(OverlaysMessage::ClearAllOverlays.into());
 				}
 
 				// TODO: Remove this message in favor of having tools have specific data per document instance