diff --git a/indra/newview/llpanelnearbymedia.cpp b/indra/newview/llpanelnearbymedia.cpp
index 3b5192b07f..1d720ceb25 100644
--- a/indra/newview/llpanelnearbymedia.cpp
+++ b/indra/newview/llpanelnearbymedia.cpp
@@ -231,6 +231,7 @@ void LLPanelNearByMedia::reshape(S32 width, S32 height, BOOL called_from_parent)
 const F32 AUTO_CLOSE_FADE_TIME_START= 4.0f;
 const F32 AUTO_CLOSE_FADE_TIME_END = 5.0f;
 
+/*virtual*/
 void LLPanelNearByMedia::draw()
 {
 	//LLUICtrl* new_top = gFocusMgr.getTopCtrl();
@@ -265,6 +266,21 @@ void LLPanelNearByMedia::draw()
 	}
 }
 
+/*virtual*/
+BOOL LLPanelNearByMedia::handleHover(S32 x, S32 y, MASK mask)
+{
+	LLPanel::handleHover(x, y, mask);
+	
+	// If we are hovering over this panel, make sure to clear any hovered media
+	// ID.  Note that the more general solution would be to clear this ID when
+	// the mouse leaves the in-scene view, but that proved to be problematic.
+	// See EXT-5517
+	LLViewerMediaFocus::getInstance()->clearHover();
+		
+	// Always handle
+	return true;
+}
+
 bool LLPanelNearByMedia::getParcelAudioAutoStart()
 {
 	return mParcelAudioAutoStart;
diff --git a/indra/newview/llpanelnearbymedia.h b/indra/newview/llpanelnearbymedia.h
index 551e2419c4..4f864519f5 100644
--- a/indra/newview/llpanelnearbymedia.h
+++ b/indra/newview/llpanelnearbymedia.h
@@ -56,6 +56,7 @@ public:
 	/*virtual*/ void handleVisibilityChange ( BOOL new_visibility );
 	/*virtual*/ void onTopLost ();
 	/*virtual*/ void reshape(S32 width, S32 height, BOOL called_from_parent);
+	/*virtual*/ BOOL handleHover(S32 x, S32 y, MASK mask);
 
 	// this is part of the nearby media *dialog* so we can track whether
 	// the user *implicitly* wants audio on or off via their *explicit*
diff --git a/indra/newview/skins/default/xui/en/panel_nearby_media.xml b/indra/newview/skins/default/xui/en/panel_nearby_media.xml
index aba1589eae..7c0ce9e62e 100644
--- a/indra/newview/skins/default/xui/en/panel_nearby_media.xml
+++ b/indra/newview/skins/default/xui/en/panel_nearby_media.xml
@@ -2,6 +2,7 @@
 <panel
 	can_resize="true"
 	can_close="false"
+	mouse_opaque="true"
 	bg_opaque_image="Volume_Background" 
 	bg_alpha_image="Volume_Background" 
 	background_opaque="true"
@@ -132,6 +133,7 @@
 		  ame="OnOthers" />
 	</combo_box>
 	<scroll_list
+		name="media_list"
 		follows="left|top|bottom|right"
 		column_padding="0"
 		height="105"
@@ -140,8 +142,7 @@
 		bg_stripe_color="0.25 0.25 0.25 0.25"
 		top_pad="8"
 		left="10"
-		right="-10"
-		name="media_list">
+		right="-10">
 	  <scroll_list.columns
 		  type="checkbox"
 		  width="-1"
@@ -189,11 +190,9 @@
 		  left="10"
 		  right="-10"
 		  border_size="0"
-		  mouse_opaque="false"
 		  orientation="horizontal">
 		<layout_panel
 			name="stop"
-			mouse_opaque="false"
 			auto_resize="false"
 			user_resize="false"
 			layout="topleft"
@@ -221,7 +220,6 @@
 		</layout_panel>
 		<layout_panel
 			name="play"
-			mouse_opaque="false"
 			auto_resize="false"
 			user_resize="false"
 			layout="topleft"
@@ -249,7 +247,6 @@
 		</layout_panel>
 		<layout_panel
 			name="pause"
-			mouse_opaque="false"
 			auto_resize="false"
 			user_resize="false"
 			layout="topleft"
@@ -276,7 +273,6 @@
 		</layout_panel>
 		<layout_panel
 			name="volume_slider_ctrl"
-			mouse_opaque="false"
 			auto_resize="true"
 			user_resize="false"
 			follows="left|right"
@@ -301,7 +297,6 @@
 		</layout_panel>
 		<layout_panel
 			name="mute"
-			mouse_opaque="false"
 			auto_resize="false"
 			user_resize="false"
 			layout="topleft"
@@ -330,7 +325,6 @@
 		</layout_panel>
 		<layout_panel
 			name="zoom"
-			mouse_opaque="false"
 			auto_resize="false"
 			user_resize="false"
 			layout="topleft"
@@ -358,7 +352,6 @@
 		</layout_panel>
 		<layout_panel
 			name="unzoom"
-			mouse_opaque="false"
 			auto_resize="false"
 			user_resize="false"
 			layout="topleft"
@@ -387,7 +380,6 @@
 		<layout_panel
 			name="right_bookend"
 			width="0"
-			mouse_opaque="false"
 			user_resize="false" />
 	  </layout_stack>
 	</panel>