diff --git a/BREAKING_CHANGES.md b/BREAKING_CHANGES.md
index db611b4588..2ca34378c3 100644
--- a/BREAKING_CHANGES.md
+++ b/BREAKING_CHANGES.md
@@ -2,6 +2,37 @@
 
 # develop
 
+## Change
+
+Components that have setMouseClickGrabsKeyboardFocus() set to false will not
+accept or propagate keyboard focus to parent components due to a mouse click
+event. This is now true even if the mouse click event happens in a child
+component with setMouseClickGrabsKeyboardFocus (true) and
+setWantsKeyboardFocus (false).
+
+**Possible Issues**
+
+Components that rely on child components propagating keyboard focus from a
+mouse click, when those child components have setMouseClickGrabsKeyboardFocus()
+set to false, will no longer grab keyboard focus.
+
+**Workaround**
+
+Add a MouseListener to the component receiving the click and override the
+mouseDown() method in the listener. In the mouseDown() method call
+Component::grabKeyboardFocus() for the component that should be focused.
+
+**Rationale**
+
+The intent of setMouseClickGrabsKeyboardFocus (false) is to reject focus changes
+coming from mouse clicks even if the component is otherwise capable of receiving
+keyboard focus.
+
+The previous behaviour could result in surprising focus changes when a child
+component was clicked. This manifested in the focus seemingly disappearing when
+a PopupMenu item added to a component was clicked.
+
+
 ## Change
 
 The NodeID argument to AudioProcessorGraph::addNode() has been changed to take
diff --git a/modules/juce_gui_basics/components/juce_Component.cpp b/modules/juce_gui_basics/components/juce_Component.cpp
index def4007d27..c559f6eede 100644
--- a/modules/juce_gui_basics/components/juce_Component.cpp
+++ b/modules/juce_gui_basics/components/juce_Component.cpp
@@ -2180,13 +2180,10 @@ void Component::internalMouseDown (MouseInputSource source,
         }
     }
 
-    if (! flags.dontFocusOnMouseClickFlag)
-    {
-        grabKeyboardFocusInternal (focusChangedByMouseClick, true, FocusChangeDirection::unknown);
+    grabKeyboardFocusInternal (focusChangedByMouseClick, true, FocusChangeDirection::unknown);
 
-        if (checker.shouldBailOut())
-            return;
-    }
+    if (checker.shouldBailOut())
+        return;
 
     if (flags.repaintOnMouseActivityFlag)
         repaint();
@@ -2623,6 +2620,9 @@ void Component::takeKeyboardFocus (FocusChangeType cause, FocusChangeDirection d
 
 void Component::grabKeyboardFocusInternal (FocusChangeType cause, bool canTryParent, FocusChangeDirection direction)
 {
+    if (flags.dontFocusOnMouseClickFlag && cause == FocusChangeType::focusChangedByMouseClick)
+        return;
+
     if (! isShowing())
         return;