diff --git a/CHANGELOG.md b/CHANGELOG.md
index acedc3633a..11ea902a76 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -58,6 +58,7 @@ You can find its changes [documented below](#070---2021-01-01).
 - GTK Shell: Prevent mangling of newline characters in clipboard ([#1695] by [@ForLoveOfCats])
 - Use correct fill rule when rendering SVG paths ([#1606] by [@SecondFlight])
 - Correctly capture and use stroke properties when rendering SVG paths ([#1647] by [@SecondFlight])
+- focus-chain now only includes non hidden (`should_propagate_to_hidden()` on `Event` and `Lifecylce`) widgets ([#1724] by [@xarvic])
 - Fixed layout of scrollbar with very small viewports ([#1715] by [@andrewhickman])
 
 ### Visual
@@ -682,6 +683,7 @@ Last release without a changelog :(
 [#1702]: https://github.com/linebender/druid/pull/1702
 [#1713]: https://github.com/linebender/druid/pull/1713
 [#1715]: https://github.com/linebender/druid/pull/1715
+[#1724]: https://github.com/linebender/druid/pull/1724
 
 [Unreleased]: https://github.com/linebender/druid/compare/v0.7.0...master
 [0.7.0]: https://github.com/linebender/druid/compare/v0.6.0...v0.7.0
diff --git a/druid/src/core.rs b/druid/src/core.rs
index 0c08731288..f9b98500d2 100644
--- a/druid/src/core.rs
+++ b/druid/src/core.rs
@@ -912,6 +912,8 @@ impl<T: Data, W: Widget<T>> WidgetPod<T, W> {
         // we may send an extra event after the actual event
         let mut extra_event = None;
 
+        let had_focus = self.state.has_focus;
+
         let recurse = match event {
             LifeCycle::Internal(internal) => match internal {
                 InternalLifeCycle::RouteWidgetAdded => {
@@ -1035,6 +1037,10 @@ impl<T: Data, W: Widget<T>> WidgetPod<T, W> {
             }
             LifeCycle::BuildFocusChain => {
                 if self.state.update_focus_chain {
+                    // Replace has_focus to check if the value changed in the meantime
+                    let is_focused = ctx.state.focus_widget == Some(self.state.id);
+                    self.state.has_focus = is_focused;
+
                     self.state.focus_chain.clear();
                     true
                 } else {
@@ -1082,6 +1088,17 @@ impl<T: Data, W: Widget<T>> WidgetPod<T, W> {
             // Update focus-chain of our parent
             LifeCycle::BuildFocusChain => {
                 self.state.update_focus_chain = false;
+
+                // had_focus is the old focus value. state.has_focus was repaced with ctx.is_focused().
+                // Therefore if had_focus is true but state.has_focus is false then the widget which is
+                // currently focused is not part of the functional tree anymore
+                // (Lifecycle::BuildFocusChain.should_propagate_to_hidden() is false!) and should
+                // resign the focus.
+                if had_focus && !self.state.has_focus {
+                    self.state.request_focus = Some(FocusChange::Resign);
+                }
+                self.state.has_focus = had_focus;
+
                 if !self.state.is_disabled() {
                     ctx.widget_state.focus_chain.extend(&self.state.focus_chain);
                 }
diff --git a/druid/src/event.rs b/druid/src/event.rs
index ef9552eb20..816e305986 100644
--- a/druid/src/event.rs
+++ b/druid/src/event.rs
@@ -428,10 +428,11 @@ impl LifeCycle {
     pub fn should_propagate_to_hidden(&self) -> bool {
         match self {
             LifeCycle::Internal(internal) => internal.should_propagate_to_hidden(),
-            LifeCycle::WidgetAdded | LifeCycle::DisabledChanged(_) | LifeCycle::BuildFocusChain => {
-                true
-            }
-            LifeCycle::Size(_) | LifeCycle::HotChanged(_) | LifeCycle::FocusChanged(_) => false,
+            LifeCycle::WidgetAdded | LifeCycle::DisabledChanged(_) => true,
+            LifeCycle::Size(_)
+            | LifeCycle::HotChanged(_)
+            | LifeCycle::FocusChanged(_)
+            | LifeCycle::BuildFocusChain => false,
         }
     }
 }