diff --git a/src/Palette/PaletteGrid.gd b/src/Palette/PaletteGrid.gd
index 76375cd92..af057f650 100644
--- a/src/Palette/PaletteGrid.gd
+++ b/src/Palette/PaletteGrid.gd
@@ -88,16 +88,32 @@ func scroll_palette(origin: Vector2i) -> void:
 ## Called when the color changes, either the left or the right, determined by [param mouse_button].
 ## If current palette has [param target_color] as a [Color], then select it.
 func find_and_select_color(target_color: Color, mouse_button: int) -> void:
+	var found_color := false
 	var old_index := Palettes.current_palette_get_selected_color_index(mouse_button)
 	for color_ind in swatches.size():
-		if target_color.is_equal_approx(swatches[color_ind].color):
+		if (
+			target_color.is_equal_approx(swatches[color_ind].color)
+			or target_color.to_html() == swatches[color_ind].color.to_html()
+		):
 			select_swatch(mouse_button, color_ind, old_index)
 			match mouse_button:
 				MOUSE_BUTTON_LEFT:
 					Palettes.left_selected_color = color_ind
 				MOUSE_BUTTON_RIGHT:
 					Palettes.right_selected_color = color_ind
+			found_color = true
 			break
+	if not found_color:
+		# Unselect swatches when tools color is changed
+		var swatch_to_unselect := -1
+		if mouse_button == MOUSE_BUTTON_LEFT:
+			swatch_to_unselect = Palettes.left_selected_color
+			Palettes.left_selected_color = -1
+		elif mouse_button == MOUSE_BUTTON_RIGHT:
+			swatch_to_unselect = Palettes.right_selected_color
+			Palettes.right_selected_color = -1
+
+		unselect_swatch(mouse_button, swatch_to_unselect)
 
 
 ## Displays a left/right highlight over a swatch
diff --git a/src/Palette/PalettePanel.gd b/src/Palette/PalettePanel.gd
index c1459bac0..1e335fcf4 100644
--- a/src/Palette/PalettePanel.gd
+++ b/src/Palette/PalettePanel.gd
@@ -56,7 +56,6 @@ func _ready() -> void:
 	Palettes.palette_selected.connect(select_palette)
 	Palettes.new_palette_created.connect(_new_palette_created)
 	Palettes.new_palette_imported.connect(setup_palettes_selector)
-	Tools.color_changed.connect(_color_changed)
 	sort_button_popup.id_pressed.connect(sort_pressed)
 
 	setup_palettes_selector()
@@ -269,20 +268,6 @@ func _new_palette_created() -> void:
 	redraw_current_palette()
 
 
-func _color_changed(_color: Color, button: int) -> void:
-	if not hidden_color_picker.get_popup().visible and is_instance_valid(Palettes.current_palette):
-		# Unselect swatches when tools color is changed
-		var swatch_to_unselect := -1
-		if button == MOUSE_BUTTON_LEFT:
-			swatch_to_unselect = Palettes.left_selected_color
-			Palettes.left_selected_color = -1
-		elif button == MOUSE_BUTTON_RIGHT:
-			swatch_to_unselect = Palettes.right_selected_color
-			Palettes.right_selected_color = -1
-
-		palette_grid.unselect_swatch(button, swatch_to_unselect)
-
-
 func _on_edit_palette_dialog_exported(path := "") -> void:
 	var image := Palettes.current_palette.convert_to_image()
 	if OS.has_feature("web"):