diff --git a/modules/mesh_data_resource/editor/mdi_ed.cpp b/modules/mesh_data_resource/editor/mdi_ed.cpp
index bd3727df4..ab4ac310b 100644
--- a/modules/mesh_data_resource/editor/mdi_ed.cpp
+++ b/modules/mesh_data_resource/editor/mdi_ed.cpp
@@ -27,6 +27,7 @@ SOFTWARE.
 #include "./uv_editor/mdr_uv_rect_editor.h"
 #include "./uv_editor/mdr_uv_rect_editor_popup.h"
 #include "core/os/keyboard.h"
+#include "editor/plugins/spatial_editor_plugin.h"
 #include "mdi_ed_plugin.h"
 #include "scene/gui/box_container.h"
 #include "scene/gui/button.h"
@@ -34,6 +35,21 @@ SOFTWARE.
 #include "scene/gui/scroll_container.h"
 #include "scene/gui/separator.h"
 
+bool MDIEd::is_editing() {
+	return _editing;
+}
+
+void MDIEd::make_visible(const bool visible) {
+	_edit_mode_button->set_visible(visible);
+
+	if (!visible) {
+		hide();
+	} else {
+		set_visible(_editing);
+		_plugin->set_gizmo_visible(_editing);
+	}
+}
+
 void MDIEd::set_plugin(MDIEdPlugin *plugin) {
 	_plugin = plugin;
 	uv_editor->set_plugin(plugin);
@@ -871,11 +887,36 @@ MDIEd::MDIEd() {
 	uv_editor->set_resizable(true);
 	uv_editor->hide();
 	popups_node->add_child(uv_editor);
+
+	_edit_mode_button = memnew(Button);
+	_edit_mode_button->set_flat(true);
+	_edit_mode_button->set_toggle_mode(true);
+	_edit_mode_button->set_focus_mode(BaseButton::FOCUS_NONE);
+	_edit_mode_button->set_text("Edit");
+	_edit_mode_button->set_tooltip(TTR("Edit MeshDataResource."));
+	_edit_mode_button->connect("toggled", this, "_edit_mode_toggled");
+	SpatialEditor::get_singleton()->add_control_to_menu_panel(_edit_mode_button);
+
+	_editing = false;
 }
 
 MDIEd::~MDIEd() {
 }
 
+void MDIEd::_notification(int p_what) {
+	switch (p_what) {
+		case NOTIFICATION_ENTER_TREE: {
+			_edit_mode_button->set_icon(get_theme_icon("MeshInstance", "EditorIcons"));
+		} break;
+	}
+}
+
+void MDIEd::_edit_mode_toggled(const bool pressed) {
+	_editing = pressed;
+
+	make_visible(_editing);
+}
+
 void MDIEd::_bind_methods() {
 	ClassDB::bind_method(D_METHOD("on_edit_mode_translate_toggled"), &MDIEd::on_edit_mode_translate_toggled);
 	ClassDB::bind_method(D_METHOD("on_edit_mode_rotate_toggled"), &MDIEd::on_edit_mode_rotate_toggled);
@@ -936,4 +977,6 @@ void MDIEd::_bind_methods() {
 	ClassDB::bind_method(D_METHOD("on_add_box_pressed"), &MDIEd::on_add_box_pressed);
 	ClassDB::bind_method(D_METHOD("on_add_triangle_pressed"), &MDIEd::on_add_triangle_pressed);
 	ClassDB::bind_method(D_METHOD("on_add_quad_pressed"), &MDIEd::on_add_quad_pressed);
+
+	ClassDB::bind_method(D_METHOD("_edit_mode_toggled"), &MDIEd::_edit_mode_toggled);
 }
diff --git a/modules/mesh_data_resource/editor/mdi_ed.h b/modules/mesh_data_resource/editor/mdi_ed.h
index a72abaaea..98d02e81e 100644
--- a/modules/mesh_data_resource/editor/mdi_ed.h
+++ b/modules/mesh_data_resource/editor/mdi_ed.h
@@ -38,6 +38,9 @@ class MDIEd : public PanelContainer {
 	GDCLASS(MDIEd, PanelContainer);
 
 public:
+	bool is_editing();
+	void make_visible(const bool visible);
+
 	void set_plugin(MDIEdPlugin *plugin);
 	void set_mesh_data_resource(const Ref<MeshDataResource> &a);
 	void set_mesh_data_instance(MeshDataInstance *a);
@@ -147,8 +150,15 @@ public:
 	Button *_selection_mode_edge_button;
 	Button *_selection_mode_face_button;
 
+	Button *_edit_mode_button;
+
 protected:
+	void _notification(int p_what);
 	static void _bind_methods();
+
+	void _edit_mode_toggled(const bool pressed);
+
+	bool _editing;
 };
 
 #endif
diff --git a/modules/mesh_data_resource/editor/mdi_ed_plugin.cpp b/modules/mesh_data_resource/editor/mdi_ed_plugin.cpp
index 46e20c5d0..17d84c99a 100644
--- a/modules/mesh_data_resource/editor/mdi_ed_plugin.cpp
+++ b/modules/mesh_data_resource/editor/mdi_ed_plugin.cpp
@@ -54,18 +54,20 @@ void MDIEdPlugin::edit(Object *object) {
 	current_mesh_data_instance = mdi;
 }
 void MDIEdPlugin::make_visible(bool visible) {
-	if (visible) {
-		mdi_ed_gui->show();
-	}
-	//else
-	//mdi_ed_gui.hide()
-	//figure out how to hide it when something else gets selected, don't hide on unselect
+	mdi_ed_gui->make_visible(visible);
 }
 
 String MDIEdPlugin::get_name() const {
 	return "MeshDataResourceEditor";
 }
 
+void MDIEdPlugin::set_gizmo_visible(const bool visible) {
+	if (current_mesh_data_instance) {
+		Ref<MDIGizmo> g = get_gizmo_from(current_mesh_data_instance);
+		g->set_visible(visible);
+	}
+}
+
 void MDIEdPlugin::set_translate() {
 	if (current_mesh_data_instance) {
 		Ref<MDIGizmo> g = get_gizmo_from(current_mesh_data_instance);
@@ -137,9 +139,14 @@ EditorPlugin::AfterGUIInput MDIEdPlugin::forward_spatial_gui_input(Camera *camer
 	}
 
 	if (current_mesh_data_instance) {
-		Ref<MDIGizmo> g = get_gizmo_from(current_mesh_data_instance);
-		if (g.is_valid()) {
-			return g->forward_spatial_gui_input(camera, p_event);
+		if (mdi_ed_gui->is_editing()) {
+			Ref<MDIGizmo> g = get_gizmo_from(current_mesh_data_instance);
+
+			if (g.is_valid()) {
+				return g->forward_spatial_gui_input(camera, p_event);
+			}
+
+			return EditorPlugin::AFTER_GUI_INPUT_NO_DESELECT;
 		}
 	}
 
diff --git a/modules/mesh_data_resource/editor/mdi_ed_plugin.h b/modules/mesh_data_resource/editor/mdi_ed_plugin.h
index 4cd21a6ea..dab14fb66 100644
--- a/modules/mesh_data_resource/editor/mdi_ed_plugin.h
+++ b/modules/mesh_data_resource/editor/mdi_ed_plugin.h
@@ -27,9 +27,6 @@ SOFTWARE.
 
 #include "core/input/input_event.h"
 
-//TODO:
-//Remove gizmo registration, it's not needed anymore
-
 class Camera;
 class MDIGizmo;
 class MeshDataResource;
@@ -47,6 +44,8 @@ public:
 
 	String get_name() const;
 
+	void set_gizmo_visible(const bool visible);
+
 	void set_translate();
 	void set_scale();
 	void set_rotate();
diff --git a/modules/mesh_data_resource/editor/mdi_gizmo.cpp b/modules/mesh_data_resource/editor/mdi_gizmo.cpp
index 4852b593e..30c8c01e3 100644
--- a/modules/mesh_data_resource/editor/mdi_gizmo.cpp
+++ b/modules/mesh_data_resource/editor/mdi_gizmo.cpp
@@ -32,6 +32,11 @@ SOFTWARE.
 #include "modules/mesh_utils/mesh_utils.h"
 #include "scene/3d/camera.h"
 
+void MDIGizmo::set_visible(const bool visible) {
+	_visible = visible;
+	redraw();
+}
+
 void MDIGizmo::setup() {
 	MeshDataInstance *mdi = Object::cast_to<MeshDataInstance>(get_spatial_node());
 
@@ -151,6 +156,10 @@ void MDIGizmo::set_handle(int index, bool secondary, Camera *camera, const Point
 void MDIGizmo::redraw() {
 	clear();
 
+	if (!_visible) {
+		return;
+	}
+
 	if (!_mdr.is_valid()) {
 		return;
 	}
@@ -606,7 +615,7 @@ EditorPlugin::AfterGUIInput MDIGizmo::forward_spatial_gui_input(Camera *camera,
 
 				// Dont consume the event here, because the handles will get stuck
 				// to the mouse pointer if we return true
-				return EditorPlugin::AFTER_GUI_INPUT_PASS;
+				return EditorPlugin::AFTER_GUI_INPUT_NO_DESELECT;
 			}
 
 			if (!event_button->is_pressed()) {
@@ -625,13 +634,13 @@ EditorPlugin::AfterGUIInput MDIGizmo::forward_spatial_gui_input(Camera *camera,
 					if (selection_click(camera, event)) {
 						return EditorPlugin::AFTER_GUI_INPUT_STOP;
 					} else {
-						return EditorPlugin::AFTER_GUI_INPUT_PASS;
+						return EditorPlugin::AFTER_GUI_INPUT_NO_DESELECT;
 					}
 
 				} else {
 					selection_drag(camera, event_button);
 					// Always return false here, so the drag rect thing disappears in the editor
-					return EditorPlugin::AFTER_GUI_INPUT_PASS;
+					return EditorPlugin::AFTER_GUI_INPUT_NO_DESELECT;
 				}
 			} else {
 				// event is pressed
@@ -641,7 +650,7 @@ EditorPlugin::AfterGUIInput MDIGizmo::forward_spatial_gui_input(Camera *camera,
 		}
 	}
 
-	return EditorPlugin::AFTER_GUI_INPUT_PASS;
+	return EditorPlugin::AFTER_GUI_INPUT_NO_DESELECT;
 }
 void MDIGizmo::add_to_all_selected(const Vector3 &ofs) {
 	for (int i = 0; i < _selected_points.size(); ++i) {
@@ -2204,6 +2213,8 @@ MDIGizmo::MDIGizmo() {
 
 	_editor_plugin = nullptr;
 	_undo_redo = nullptr;
+
+	_visible = false;
 }
 
 MDIGizmo::~MDIGizmo() {
diff --git a/modules/mesh_data_resource/editor/mdi_gizmo.h b/modules/mesh_data_resource/editor/mdi_gizmo.h
index c3d9dfd76..3ea844904 100644
--- a/modules/mesh_data_resource/editor/mdi_gizmo.h
+++ b/modules/mesh_data_resource/editor/mdi_gizmo.h
@@ -74,6 +74,8 @@ public:
 		HANDLE_SELECTION_TYPE_ALL = 2,
 	};
 
+	void set_visible(const bool visible);
+
 	void setup();
 	void set_editor_plugin(EditorPlugin *editor_plugin);
 
@@ -234,6 +236,8 @@ public:
 	EditorPlugin *_editor_plugin;
 	UndoRedo *_undo_redo;
 
+	bool _visible;
+
 protected:
 	static void _bind_methods();
 };