diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 26a21c49..5eb96a47 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -874,8 +874,9 @@ for %s (%s)' % (name, urlplugin.__class__.__name__))
     def on_vte_notify_enter(self, term, event):
         """Handle the mouse entering this terminal"""
         if self.config['focus'] in ['sloppy', 'mouse']:
-            term.grab_focus()
-            return(False)
+            if self.titlebar.creating_group() == False:
+                term.grab_focus()
+                return(False)
 
     def hide_titlebar(self):
         """Hide the titlebar"""
diff --git a/terminatorlib/titlebar.py b/terminatorlib/titlebar.py
index 569f3d74..e94149b2 100755
--- a/terminatorlib/titlebar.py
+++ b/terminatorlib/titlebar.py
@@ -126,6 +126,10 @@ class Titlebar(gtk.EventBox):
         """Re-emit an edit-done signal from an EditableLabel"""
         self.emit('edit-done')
 
+    def creating_group(self):
+        """Determine if we're currently creating a group"""
+        return(self.groupentry.get_property('visible'))
+
     def create_group(self):
         """Create a new group"""
         self.groupentry.show()