diff --git a/modules/layered_tile_map/editor/layered_tile_map_layer_editor.cpp b/modules/layered_tile_map/editor/layered_tile_map_layer_editor.cpp
index 2014654ee..d39013cdf 100644
--- a/modules/layered_tile_map/editor/layered_tile_map_layer_editor.cpp
+++ b/modules/layered_tile_map/editor/layered_tile_map_layer_editor.cpp
@@ -4042,7 +4042,12 @@ void LayeredTileMapLayerEditor::_highlight_selected_layer_button_toggled(bool p_
 	}
 
 	EditorSettings::get_singleton()->set("editors/layered_tiles_editor/highlight_selected_layer", p_pressed);
-	_update_all_layers_highlighting();
+	
+	if (p_pressed) {
+		_update_all_layers_highlighting();
+	} else {
+		_clear_all_layers_highlighting();
+	}
 }
 
 void LayeredTileMapLayerEditor::_advanced_menu_button_id_pressed(int p_id) {