diff --git a/editor/src/components/canvas/canvas-strategies/strategies/absolute-resize-bounding-box-strategy.spec.browser2.tsx b/editor/src/components/canvas/canvas-strategies/strategies/absolute-resize-bounding-box-strategy.spec.browser2.tsx
index 303c77e91494..5b407d1423b8 100644
--- a/editor/src/components/canvas/canvas-strategies/strategies/absolute-resize-bounding-box-strategy.spec.browser2.tsx
+++ b/editor/src/components/canvas/canvas-strategies/strategies/absolute-resize-bounding-box-strategy.spec.browser2.tsx
@@ -47,6 +47,7 @@ import {
   mouseDoubleClickAtPoint,
   mouseDownAtPoint,
   mouseDragFromPointWithDelta,
+  mouseMoveToPoint,
 } from '../../event-helpers.test-utils'
 import { CanvasControlsContainerID } from '../../controls/new-canvas-controls'
 import type { CSSProperties } from 'react'
@@ -3008,7 +3009,7 @@ describe('Absolute Resize Control', () => {
       expect(resizeControlLeft.style.width).toEqual('5px')
       expect(resizeControlLeft.style.height).toEqual(`${height + RESIZE_CONTROL_SAFE_GAP * 2}px`)
     })
-    it("Doesn't show the safe gap during resize and mouse down", async () => {
+    it("Doesn't show the safe gap during resize after threshold is passed", async () => {
       const width = SmallElementSize
       const height = SmallElementSize
       const renderResult = await renderTestEditorWithCode(
@@ -3033,6 +3034,9 @@ describe('Absolute Resize Control', () => {
       const bottomLeftHandle = await renderResult.renderedDOM.findByTestId(`resize-control-0-1`)
 
       await mouseDownAtPoint(bottomRightHandle, { x: 2, y: 2 })
+      await mouseMoveToPoint(bottomRightHandle, { x: 10, y: 0 })
+
+      const threshold = 2 // px
 
       expect(bottomRightHandle.parentElement?.style.visibility).toEqual('visible')
       expect(topRightHandle.parentElement?.style.visibility).toEqual('hidden')
@@ -3045,25 +3049,25 @@ describe('Absolute Resize Control', () => {
       expect(resizeControlTop.style.transform).toEqual('translate(0px, -5px)')
       expect(resizeControlTop.style.top).toEqual('')
       expect(resizeControlTop.style.left).toEqual('')
-      expect(resizeControlTop.style.width).toEqual(`${width}px`)
+      expect(resizeControlTop.style.width).toEqual(`${width + 10 - threshold}px`)
       expect(resizeControlTop.style.height).toEqual('5px')
 
       const resizeControlRight = renderResult.renderedDOM.getByTestId(
         `resize-control-${EdgePositionRight.x}-${EdgePositionRight.y}`,
       )
-      expect(resizeControlRight.style.transform).toEqual('translate(0px, 0px)')
+      expect(resizeControlRight.style.transform).toEqual('translate(-5px, 0px)')
       expect(resizeControlRight.style.top).toEqual('')
-      expect(resizeControlRight.style.left).toEqual(`${width}px`)
-      expect(resizeControlRight.style.width).toEqual('5px')
-      expect(resizeControlRight.style.height).toEqual(`${height}px`)
+      expect(resizeControlRight.style.left).toEqual(`${width + 10 - threshold}px`)
+      expect(resizeControlRight.style.width).toEqual('10px')
+      expect(resizeControlRight.style.height).toEqual(`${height - threshold}px`)
 
       const resizeControlBottom = renderResult.renderedDOM.getByTestId(
         `resize-control-${EdgePositionBottom.x}-${EdgePositionBottom.y}`,
       )
       expect(resizeControlBottom.style.transform).toEqual('translate(0px, 0px)')
-      expect(resizeControlBottom.style.top).toEqual(`${height}px`)
+      expect(resizeControlBottom.style.top).toEqual(`${height - 2}px`)
       expect(resizeControlBottom.style.left).toEqual('')
-      expect(resizeControlBottom.style.width).toEqual(`${width}px`)
+      expect(resizeControlBottom.style.width).toEqual(`${width + 10 - threshold}px`)
       expect(resizeControlBottom.style.height).toEqual('5px')
 
       const resizeControlLeft = renderResult.renderedDOM.getByTestId(
@@ -3072,8 +3076,8 @@ describe('Absolute Resize Control', () => {
       expect(resizeControlLeft.style.transform).toEqual('translate(-5px, 0px)')
       expect(resizeControlLeft.style.top).toEqual('')
       expect(resizeControlLeft.style.left).toEqual('')
-      expect(resizeControlLeft.style.width).toEqual('5px')
-      expect(resizeControlLeft.style.height).toEqual(`${height}px`)
+      expect(resizeControlLeft.style.width).toEqual('10px')
+      expect(resizeControlLeft.style.height).toEqual(`${height - threshold}px`)
     })
   })
   it('Resize control on non-small elements extend into the draggable frame area', async () => {
diff --git a/editor/src/components/canvas/controls/bounding-box-hooks.ts b/editor/src/components/canvas/controls/bounding-box-hooks.ts
index e3b1dd503a9a..58a1061fa0e9 100644
--- a/editor/src/components/canvas/controls/bounding-box-hooks.ts
+++ b/editor/src/components/canvas/controls/bounding-box-hooks.ts
@@ -16,6 +16,8 @@ import {
 } from '../../editor/store/store-hook'
 import { MetadataUtils } from '../../../core/model/element-metadata-utils'
 import { getMetadata } from '../../editor/store/editor-state'
+import { elementHasOnlyTextChildren } from '../canvas-utils'
+import { isFixedHugFillModeApplied } from '../../inspector/inspector-common'
 
 interface NotNullRefObject<T> {
   readonly current: T
@@ -51,19 +53,37 @@ function useBoundingBoxFromMetadataRef(
   const metadataRef = useRefEditorState((store) => getMetadata(store.editor))
   const scaleRef = useRefEditorState((store) => store.editor.canvas.scale)
 
-  const isNotDuringInteraction = useEditorState(
+  const isInteractionDraggingPastThreshold = useEditorState(
     Substores.canvas,
     (store) => {
-      return store.editor.canvas.interactionSession?.interactionData == null
+      return (
+        store.editor.canvas.interactionSession?.interactionData.type === 'DRAG' &&
+        store.editor.canvas.interactionSession?.interactionData.drag != null
+      )
     },
-    'useBoundingBoxFromMetadataRef isNotDuringInteraction',
+    'useBoundingBoxFromMetadataRef isInteractionDraggingPastThreshold',
   )
 
   const shouldApplySafeGap = React.useCallback(
     (dimension: number, scale: number): boolean => {
-      return isNotDuringInteraction && dimension <= SafeGapSmallElementSize / scale
+      if (selectedElements.length === 1) {
+        // For text elements only show the safe gaps if they have been resized past the initial max-content dimensions
+        const meta = MetadataUtils.findElementByElementPath(
+          metadataRef.current,
+          selectedElements[0],
+        )
+        if (
+          meta != null &&
+          elementHasOnlyTextChildren(meta) &&
+          isFixedHugFillModeApplied(metadataRef.current, selectedElements[0], 'hug')
+        ) {
+          return false
+        }
+      }
+
+      return !isInteractionDraggingPastThreshold && dimension <= SmallElementSize / scale
     },
-    [isNotDuringInteraction],
+    [isInteractionDraggingPastThreshold, metadataRef, selectedElements],
   )
 
   const boundingBoxCallbackRef = React.useRef(boundingBoxCallback)