diff --git a/intellij-plugin/hs-core/resources/HyperskillAcademyPlugin.themeMetadata.json b/intellij-plugin/hs-core/resources/HyperskillAcademyPlugin.themeMetadata.json
index cc7e03c76..f81d17b66 100644
--- a/intellij-plugin/hs-core/resources/HyperskillAcademyPlugin.themeMetadata.json
+++ b/intellij-plugin/hs-core/resources/HyperskillAcademyPlugin.themeMetadata.json
@@ -9,7 +9,7 @@
       "source" : "org.hyperskill.academy.learning.newproject.ui.CourseCardComponent"
     },
     {
-      "key" : "SelectCourse.CourseCard.hoverBackground",
+      "key" : "SelectCourse.CourseCard.selectedBackground",
       "description" : "The background color for a selected CourseCardComponent in Select Course dialog",
       "deprecated" : false,
       "source" : "org.hyperskill.academy.learning.newproject.ui.CourseCardComponent"
@@ -205,4 +205,4 @@
       "source" : "org.hyperskill.academy.learning.ui.EduColors"
     }
   ]
-}
\ No newline at end of file
+}
diff --git a/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/CourseCardComponent.kt b/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/CourseCardComponent.kt
index 768e98f67..170f91b41 100644
--- a/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/CourseCardComponent.kt
+++ b/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/CourseCardComponent.kt
@@ -22,7 +22,7 @@ private const val CARD_HEIGHT = 70
 private const val LOGO_SIZE = 40
 
 private val HOVER_COLOR: Color = JBColor.namedColor("SelectCourse.CourseCard.hoverBackground", 0xF5F9FF, 0x282A2C)
-private val SELECTION_COLOR: Color = JBColor.namedColor("SelectCourse.CourseCard.hoverBackground", 0xE9EEF5, 0x36393B)
+private val SELECTION_COLOR: Color = JBColor.namedColor("SelectCourse.CourseCard.selectedBackground", 0xE9EEF5, 0x36393B)
 val GRAY_COLOR: Color = JBColor.namedColor("SelectCourse.grayForeground", JBColor(Gray._120, Gray._135))
 
 open class CourseCardComponent(val course: Course) : JPanel(BorderLayout()) {
@@ -125,4 +125,4 @@ private class CourseNameComponent(course: Course) : JPanel(BorderLayout()) {
 
     add(nameLabel, BorderLayout.CENTER)
   }
-}
\ No newline at end of file
+}
diff --git a/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/coursePanel/groups/CourseGroupModel.kt b/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/coursePanel/groups/CourseGroupModel.kt
index ec9af8ceb..408226f16 100644
--- a/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/coursePanel/groups/CourseGroupModel.kt
+++ b/intellij-plugin/hs-core/src/org/hyperskill/academy/learning/newproject/ui/coursePanel/groups/CourseGroupModel.kt
@@ -120,10 +120,11 @@ class CourseGroupModel {
   private inner class HoverMouseHandler : MouseAdapter() {
 
     override fun mouseExited(event: MouseEvent) {
+      val hadHoveredCard = hoveredCard != null
       hoveredCard?.setSelection(false)
       hoveredCard?.onHoverEnded()
 
-      if (hoveredCard == null) {
+      if (!hadHoveredCard) {
         selectedCard?.onHoverEnded()
       }
       hoveredCard = null
@@ -132,8 +133,21 @@ class CourseGroupModel {
     override fun mouseMoved(event: MouseEvent) {
       val cardComponent = getCourseCard(event)
       if (cardComponent != selectedCard) {
+        if (hoveredCard !== cardComponent) {
+          val previousHoveredCard = hoveredCard
+          previousHoveredCard?.setSelection(false)
+          previousHoveredCard?.onHoverEnded()
+          if (previousHoveredCard == null) {
+            selectedCard?.onHoverEnded()
+          }
+        }
         hoveredCard = cardComponent
       }
+      else if (hoveredCard != null) {
+        hoveredCard?.setSelection(false)
+        hoveredCard?.onHoverEnded()
+        hoveredCard = null
+      }
 
       cardComponent?.onHover(cardComponent == selectedCard)
     }
@@ -167,4 +181,4 @@ class CourseGroupModel {
       }
     }
   }
-}
\ No newline at end of file
+}
diff --git a/intellij-plugin/hs-core/testSrc/org/hyperskill/academy/learning/newproject/ui/coursePanel/groups/CourseGroupModelTest.kt b/intellij-plugin/hs-core/testSrc/org/hyperskill/academy/learning/newproject/ui/coursePanel/groups/CourseGroupModelTest.kt
new file mode 100644
index 000000000..524ed269d
--- /dev/null
+++ b/intellij-plugin/hs-core/testSrc/org/hyperskill/academy/learning/newproject/ui/coursePanel/groups/CourseGroupModelTest.kt
@@ -0,0 +1,52 @@
+package org.hyperskill.academy.learning.newproject.ui.coursePanel.groups
+
+import org.hyperskill.academy.learning.EduTestCase
+import org.hyperskill.academy.learning.courseFormat.hyperskill.HyperskillCourse
+import org.hyperskill.academy.learning.newproject.ui.CourseCardComponent
+import org.junit.Test
+import java.awt.event.MouseEvent
+
+class CourseGroupModelTest : EduTestCase() {
+
+  @Test
+  fun `test moving mouse between cards clears previous hover without exit event`() {
+    val model = CourseGroupModel()
+    val selectedCard = TestCourseCard("Selected course")
+    val firstHoveredCard = TestCourseCard("First hovered course")
+    val secondHoveredCard = TestCourseCard("Second hovered course")
+    listOf(selectedCard, firstHoveredCard, secondHoveredCard).forEach(model::addCourseCard)
+    model.initialSelection()
+
+    moveMouseOver(selectedCard)
+    assertTrue(selectedCard.isHovered)
+
+    moveMouseOver(firstHoveredCard)
+    assertFalse(selectedCard.isHovered)
+    assertTrue(firstHoveredCard.isHovered)
+
+    moveMouseOver(secondHoveredCard)
+    assertFalse(selectedCard.isHovered)
+    assertFalse(firstHoveredCard.isHovered)
+    assertTrue(secondHoveredCard.isHovered)
+  }
+
+  private fun moveMouseOver(card: CourseCardComponent) {
+    val component = card.getClickComponent()
+    val event = MouseEvent(component, MouseEvent.MOUSE_MOVED, 0, 0, 0, 0, 0, false)
+    component.mouseMotionListeners.forEach { it.mouseMoved(event) }
+  }
+
+  private class TestCourseCard(courseName: String) : CourseCardComponent(HyperskillCourse().apply { name = courseName }) {
+    var isHovered: Boolean = false
+      private set
+
+    override fun onHover(isSelected: Boolean) {
+      super.onHover(isSelected)
+      isHovered = true
+    }
+
+    override fun onHoverEnded() {
+      isHovered = false
+    }
+  }
+}