diff --git a/src/nvim/mouse.c b/src/nvim/mouse.c
index c43d192d76..a4f4a49fcf 100644
--- a/src/nvim/mouse.c
+++ b/src/nvim/mouse.c
@@ -137,6 +137,8 @@ static void move_tab_to_mouse(void)
   }
 }
 
+static bool got_click = false;  // got a click some time back
+
 /// Call click definition function for column "col" in the "click_defs" array for button
 /// "which_button".
 static void call_click_def_func(StlClickDefinition *click_defs, int col, int which_button)
@@ -192,6 +194,8 @@ static void call_click_def_func(StlClickDefinition *click_defs, int col, int whi
   typval_T rettv;
   (void)call_vim_function(click_defs[col].func, ARRAY_SIZE(argv), argv, &rettv);
   tv_clear(&rettv);
+  // Make sure next click does not register as drag when callback absorbs the release event.
+  got_click = false;
 }
 
 /// Translate window coordinates to buffer position without any side effects.
@@ -248,14 +252,6 @@ static int get_fpos_of_mouse(pos_T *mpos)
   return IN_BUFFER;
 }
 
-static bool mouse_got_click = false;  ///< got a click some time back
-
-/// Reset the flag that a mouse click was seen.
-void reset_mouse_got_click(void)
-{
-  mouse_got_click = false;
-}
-
 /// Do the appropriate action for the current mouse click in the current mode.
 /// Not used for Command-line mode.
 ///
@@ -354,13 +350,13 @@ bool do_mouse(oparg_T *oap, int c, int dir, long count, bool fixindent)
 
   // Ignore drag and release events if we didn't get a click.
   if (is_click) {
-    mouse_got_click = true;
+    got_click = true;
   } else {
-    if (!mouse_got_click) {             // didn't get click, ignore
+    if (!got_click) {                   // didn't get click, ignore
       return false;
     }
     if (!is_drag) {                     // release, reset got_click
-      mouse_got_click = false;
+      got_click = false;
       if (in_tab_line) {
         in_tab_line = false;
         return false;
@@ -377,7 +373,7 @@ bool do_mouse(oparg_T *oap, int c, int dir, long count, bool fixindent)
       stuffnumReadbuff(count);
     }
     stuffcharReadbuff(Ctrl_T);
-    mouse_got_click = false;            // ignore drag&release now
+    got_click = false;            // ignore drag&release now
     return false;
   }
 
@@ -601,7 +597,7 @@ bool do_mouse(oparg_T *oap, int c, int dir, long count, bool fixindent)
         ui_flush();  // Update before showing popup menu
       }
       show_popupmenu();
-      mouse_got_click = false;  // ignore release events
+      got_click = false;  // ignore release events
       return (jump_flags & CURSOR_MOVED) != 0;
     }
     if (which_button == MOUSE_LEFT
@@ -641,7 +637,7 @@ popupexit:
 
   // If an operator is pending, ignore all drags and releases until the next mouse click.
   if (!is_drag && oap != NULL && oap->op_type != OP_NOP) {
-    mouse_got_click = false;
+    got_click = false;
     oap->motion_type = kMTCharWise;
   }
 
@@ -851,7 +847,7 @@ popupexit:
     } else {                                    // location list window
       do_cmdline_cmd(".ll");
     }
-    mouse_got_click = false;                    // ignore drag&release now
+    got_click = false;                          // ignore drag&release now
   } else if ((mod_mask & MOD_MASK_CTRL)
              || (curbuf->b_help && (mod_mask & MOD_MASK_MULTI_CLICK) == MOD_MASK_2CLICK)) {
     // Ctrl-Mouse click (or double click in a help window) jumps to the tag
@@ -860,7 +856,7 @@ popupexit:
       stuffcharReadbuff(Ctrl_O);
     }
     stuffcharReadbuff(Ctrl_RSB);
-    mouse_got_click = false;                    // ignore drag&release now
+    got_click = false;                          // ignore drag&release now
   } else if ((mod_mask & MOD_MASK_SHIFT)) {
     // Shift-Mouse click searches for the next occurrence of the word under
     // the mouse pointer
diff --git a/src/nvim/popupmenu.c b/src/nvim/popupmenu.c
index 26827464b4..93d5796faf 100644
--- a/src/nvim/popupmenu.c
+++ b/src/nvim/popupmenu.c
@@ -30,7 +30,6 @@
 #include "nvim/memory.h"
 #include "nvim/menu.h"
 #include "nvim/message.h"
-#include "nvim/mouse.h"
 #include "nvim/move.h"
 #include "nvim/option.h"
 #include "nvim/popupmenu.h"
@@ -1163,7 +1162,6 @@ void pum_show_popupmenu(vimmenu_T *menu)
       // right mouse release: select clicked item, close if any
       pum_select_mouse_pos();
       if (pum_selected >= 0) {
-        reset_mouse_got_click();
         pum_execute_menu(menu, mode);
         break;
       }
diff --git a/test/functional/ui/statuscolumn_spec.lua b/test/functional/ui/statuscolumn_spec.lua
index ddf13c6d13..b2d5e3b2d3 100644
--- a/test/functional/ui/statuscolumn_spec.lua
+++ b/test/functional/ui/statuscolumn_spec.lua
@@ -592,7 +592,7 @@ describe('statuscolumn', function()
         eq('0 1 l 11', eval("g:testvar"))
       end)
 
-      it('selecting popupmenu does not drag mouse', function()
+      it('popupmenu callback does not drag mouse on close', function()
         screen:try_resize(screen._width, 2)
         screen:set_default_attr_ids({
           [0] = {foreground = Screen.colors.Brown},
@@ -606,6 +606,7 @@ describe('statuscolumn', function()
             popup PopupStc
           endfunction
         ]])
+        -- clicking an item does not drag mouse
         meths.input_mouse('left', 'press', '', 0, 0, 0)
         screen:expect([[
           {0:8 }^aaaaa                                              |
@@ -617,6 +618,19 @@ describe('statuscolumn', function()
           {0:8 }^aaaaa                                              |
           0 1 l 8                                              |
         ]])
+        command('echo')
+        -- clicking outside to close the menu does not drag mouse
+        meths.input_mouse('left', 'press', '', 0, 0, 0)
+        screen:expect([[
+          {0:8 }^aaaaa                                              |
+           {1: Echo }                                              |
+        ]])
+        meths.input_mouse('left', 'press', '', 0, 0, 10)
+        meths.input_mouse('left', 'release', '', 0, 0, 10)
+        screen:expect([[
+          {0:8 }^aaaaa                                              |
+                                                               |
+        ]])
       end)
     end)
   end