diff --git a/packages/excalidraw/components/App.tsx b/packages/excalidraw/components/App.tsx
index 3f94fd4dad..ccbd3362b3 100644
--- a/packages/excalidraw/components/App.tsx
+++ b/packages/excalidraw/components/App.tsx
@@ -4687,7 +4687,10 @@ class App extends React.Component<AppProps, AppState> {
     if (nextActiveTool.type === "hand") {
       setCursor(this.interactiveCanvas, CURSOR_TYPE.GRAB);
     } else if (!isHoldingSpace) {
-      setCursorForShape(this.interactiveCanvas, this.state);
+      setCursorForShape(this.interactiveCanvas, {
+        ...this.state,
+        activeTool: nextActiveTool,
+      });
     }
     if (isToolIcon(document.activeElement)) {
       this.focusContainer();