diff --git a/public/app/plugins/panel/canvas/ConnectionAnchors.tsx b/public/app/plugins/panel/canvas/ConnectionAnchors.tsx
index 199cec648cd..d618ae1fcbc 100644
--- a/public/app/plugins/panel/canvas/ConnectionAnchors.tsx
+++ b/public/app/plugins/panel/canvas/ConnectionAnchors.tsx
@@ -14,6 +14,9 @@ type Props = {
 
 export const CONNECTION_ANCHOR_DIV_ID = 'connectionControl';
 export const CONNECTION_ANCHOR_ALT = 'connection anchor';
+export const CONNECTION_ANCHOR_HIGHLIGHT_OFFSET = 8;
+
+const ANCHOR_PADDING = 3;
 
 export const ConnectionAnchors = ({ setRef, handleMouseLeave }: Props) => {
   const highlightEllipseRef = useRef<HTMLDivElement>(null);
@@ -30,8 +33,8 @@ export const ConnectionAnchors = ({ setRef, handleMouseLeave }: Props) => {
 
     if (highlightEllipseRef.current && event.target.style) {
       highlightEllipseRef.current.style.display = 'block';
-      highlightEllipseRef.current.style.top = `calc(${event.target.style.top} - ${halfSizeHighlightEllipse}px)`;
-      highlightEllipseRef.current.style.left = `calc(${event.target.style.left} - ${halfSizeHighlightEllipse}px)`;
+      highlightEllipseRef.current.style.top = `calc(${event.target.style.top} - ${halfSizeHighlightEllipse}px + ${ANCHOR_PADDING}px)`;
+      highlightEllipseRef.current.style.left = `calc(${event.target.style.left} - ${halfSizeHighlightEllipse}px + ${ANCHOR_PADDING}px)`;
     }
   };
 
@@ -78,8 +81,8 @@ export const ConnectionAnchors = ({ setRef, handleMouseLeave }: Props) => {
 
       // Convert anchor coords to relative percentage
       const style = {
-        top: `calc(${-anchor.y * 50 + 50}% - ${halfSize}px)`,
-        left: `calc(${anchor.x * 50 + 50}% - ${halfSize}px)`,
+        top: `calc(${-anchor.y * 50 + 50}% - ${halfSize}px - ${ANCHOR_PADDING}px)`,
+        left: `calc(${anchor.x * 50 + 50}% - ${halfSize}px - ${ANCHOR_PADDING}px)`,
       };
 
       return (
@@ -122,10 +125,11 @@ const getStyles = (theme: GrafanaTheme2) => ({
     height: calc(100% + 60px);
   `,
   anchor: css`
+    padding: ${ANCHOR_PADDING}px;
     position: absolute;
     cursor: cursor;
-    width: 5px;
-    height: 5px;
+    width: calc(5px + 2 * ${ANCHOR_PADDING}px);
+    height: calc(5px + 2 * ${ANCHOR_PADDING}px);
     z-index: 100;
     pointer-events: auto !important;
   `,
diff --git a/public/app/plugins/panel/canvas/Connections.tsx b/public/app/plugins/panel/canvas/Connections.tsx
index a7cb726b72c..fa106ad31e1 100644
--- a/public/app/plugins/panel/canvas/Connections.tsx
+++ b/public/app/plugins/panel/canvas/Connections.tsx
@@ -4,7 +4,7 @@ import { ConnectionPath } from 'app/features/canvas';
 import { ElementState } from 'app/features/canvas/runtime/element';
 import { Scene } from 'app/features/canvas/runtime/scene';
 
-import { CONNECTION_ANCHOR_ALT, ConnectionAnchors } from './ConnectionAnchors';
+import { CONNECTION_ANCHOR_ALT, ConnectionAnchors, CONNECTION_ANCHOR_HIGHLIGHT_OFFSET } from './ConnectionAnchors';
 import { ConnectionSVG } from './ConnectionSVG';
 import { isConnectionSource, isConnectionTarget } from './utils';
 
@@ -16,6 +16,7 @@ export class Connections {
   connectionSource?: ElementState;
   connectionTarget?: ElementState;
   isDrawingConnection?: boolean;
+  didConnectionLeaveHighlight?: boolean;
 
   constructor(scene: Scene) {
     this.scene = scene;
@@ -118,11 +119,19 @@ export class Connections {
     this.connectionLine.setAttribute('x2', `${x}`);
     this.connectionLine.setAttribute('y2', `${y}`);
 
+    const connectionLineX1 = this.connectionLine.x1.baseVal.value;
+    const connectionLineY1 = this.connectionLine.y1.baseVal.value;
+    if (!this.didConnectionLeaveHighlight) {
+      const connectionLength = Math.hypot(x - connectionLineX1, y - connectionLineY1);
+      if (connectionLength > CONNECTION_ANCHOR_HIGHLIGHT_OFFSET && this.connectionSVG) {
+        this.didConnectionLeaveHighlight = true;
+        this.connectionSVG.style.display = 'block';
+        this.isDrawingConnection = true;
+      }
+    }
+
     if (!event.buttons) {
       if (this.connectionSource && this.connectionSource.div && this.connectionSource.div.parentElement) {
-        const connectionLineX1 = this.connectionLine.x1.baseVal.value;
-        const connectionLineY1 = this.connectionLine.y1.baseVal.value;
-
         const sourceRect = this.connectionSource.div.getBoundingClientRect();
         const parentRect = this.connectionSource.div.parentElement.getBoundingClientRect();
 
@@ -174,9 +183,10 @@ export class Connections {
         if (!options.connections) {
           options.connections = [];
         }
-        this.connectionSource.options.connections = [...options.connections, connection];
-
-        this.connectionSource.onChange(this.connectionSource.options);
+        if (this.didConnectionLeaveHighlight) {
+          this.connectionSource.options.connections = [...options.connections, connection];
+          this.connectionSource.onChange(this.connectionSource.options);
+        }
       }
 
       if (this.connectionSVG) {
@@ -198,10 +208,8 @@ export class Connections {
       const connectionStartTargetBox = selectedTarget.getBoundingClientRect();
       const parentBoundingRect = this.scene.div.parentElement.getBoundingClientRect();
 
-      // TODO: Make this not as magic numbery -> related to the height / width of highlight ellipse
-      const connectionAnchorHighlightOffset = 8;
-      const x = connectionStartTargetBox.x - parentBoundingRect.x + connectionAnchorHighlightOffset;
-      const y = connectionStartTargetBox.y - parentBoundingRect.y + connectionAnchorHighlightOffset;
+      const x = connectionStartTargetBox.x - parentBoundingRect.x + CONNECTION_ANCHOR_HIGHLIGHT_OFFSET;
+      const y = connectionStartTargetBox.y - parentBoundingRect.y + CONNECTION_ANCHOR_HIGHLIGHT_OFFSET;
 
       const mouseX = clientX - parentBoundingRect.x;
       const mouseY = clientY - parentBoundingRect.y;
@@ -210,9 +218,7 @@ export class Connections {
       this.connectionLine.setAttribute('y1', `${y}`);
       this.connectionLine.setAttribute('x2', `${mouseX}`);
       this.connectionLine.setAttribute('y2', `${mouseY}`);
-      this.connectionSVG.style.display = 'block';
-
-      this.isDrawingConnection = true;
+      this.didConnectionLeaveHighlight = false;
     }
 
     this.scene.selecto?.rootContainer?.addEventListener('mousemove', this.connectionListener);