--- a/src/xdisp.c
+++ b/src/xdisp.c
@@ -31345,7 +31345,8 @@ A polygon is a cons (poly . [x0 y0 x1 y1 ...]) where each pair in the
 	     the one we are currently highlighting, we have to
 	     check if we enter the overlapping overlay, and then
 	     highlight only that.  */
-	  || (OVERLAYP (hlinfo->mouse_face_overlay)
+	  || (!hlinfo->mouse_face_hidden
+	      && OVERLAYP (hlinfo->mouse_face_overlay)
 	      && mouse_face_overlay_overlaps (hlinfo->mouse_face_overlay)))
 	{
 	  /* Find the highest priority overlay with a mouse-face.  */