diff --git a/packages/demo-app-ts/src/demos/pipelinesDemo/DemoTaskNode.tsx b/packages/demo-app-ts/src/demos/pipelinesDemo/DemoTaskNode.tsx
index 2c6a18c3..79dcc359 100644
--- a/packages/demo-app-ts/src/demos/pipelinesDemo/DemoTaskNode.tsx
+++ b/packages/demo-app-ts/src/demos/pipelinesDemo/DemoTaskNode.tsx
@@ -72,7 +72,7 @@ const DemoTaskNode: React.FunctionComponent<DemoTaskNodeProps> = ({
   };
 
   return (
-    <Layer id={detailsLevel !== ScaleDetailsLevel.high && hover ? TOP_LAYER : DEFAULT_LAYER}>
+    <Layer id={detailsLevel !== ScaleDetailsLevel.high && (hover || contextMenuOpen) ? TOP_LAYER : DEFAULT_LAYER}>
       <g ref={hoverRef}>
         <TaskNode
           element={element}
diff --git a/packages/demo-app-ts/src/demos/stylesDemo/StyleNode.tsx b/packages/demo-app-ts/src/demos/stylesDemo/StyleNode.tsx
index 6fd2d54b..2324d39c 100644
--- a/packages/demo-app-ts/src/demos/stylesDemo/StyleNode.tsx
+++ b/packages/demo-app-ts/src/demos/stylesDemo/StyleNode.tsx
@@ -135,6 +135,7 @@ const StyleNode: React.FunctionComponent<StyleNodeProps> = ({
   const data = element.getData();
   const detailsLevel = element.getGraph().getDetailsLevel();
   const [hover, hoverRef] = useHover();
+  const focused = hover || contextMenuOpen;
 
   const passedData = React.useMemo(() => {
     const newData = { ...data };
@@ -154,18 +155,19 @@ const StyleNode: React.FunctionComponent<StyleNodeProps> = ({
 
   const LabelIcon = passedData.labelIcon;
   return (
-    <Layer id={hover ? TOP_LAYER : DEFAULT_LAYER}>
+    <Layer id={focused ? TOP_LAYER : DEFAULT_LAYER}>
       <g ref={hoverRef}>
         <DefaultNode
           element={element}
           scaleLabel={detailsLevel !== ScaleDetailsLevel.low}
-          scaleNode={hover && detailsLevel === ScaleDetailsLevel.low}
+          scaleNode={focused && detailsLevel === ScaleDetailsLevel.low}
+          raiseLabelOnHover={false}
           {...rest}
           {...passedData}
           dragging={dragging}
           regrouping={regrouping}
-          showLabel={hover || (detailsLevel !== ScaleDetailsLevel.low && showLabel)}
-          showStatusBackground={!hover && detailsLevel === ScaleDetailsLevel.low}
+          showLabel={focused || (detailsLevel !== ScaleDetailsLevel.low && showLabel)}
+          showStatusBackground={!focused && detailsLevel === ScaleDetailsLevel.low}
           showStatusDecorator={detailsLevel === ScaleDetailsLevel.high && passedData.showStatusDecorator}
           statusDecoratorTooltip={nodeElement.getNodeStatus()}
           onContextMenu={data.showContextMenu ? onContextMenu : undefined}
@@ -174,11 +176,11 @@ const StyleNode: React.FunctionComponent<StyleNodeProps> = ({
           onHideCreateConnector={onHideCreateConnector}
           labelIcon={LabelIcon && <LabelIcon noVerticalAlign />}
           attachments={
-            (hover || detailsLevel === ScaleDetailsLevel.high) &&
+            (focused || detailsLevel === ScaleDetailsLevel.high) &&
             renderDecorators(nodeElement, passedData, rest.getShapeDecoratorCenter)
           }
         >
-          {(hover || detailsLevel !== ScaleDetailsLevel.low) && renderIcon(passedData, nodeElement)}
+          {(focused || detailsLevel !== ScaleDetailsLevel.low) && renderIcon(passedData, nodeElement)}
         </DefaultNode>
       </g>
     </Layer>
diff --git a/packages/demo-app-ts/src/demos/topologyPackageDemo/DemoNode.tsx b/packages/demo-app-ts/src/demos/topologyPackageDemo/DemoNode.tsx
index cf64fab5..0010a906 100644
--- a/packages/demo-app-ts/src/demos/topologyPackageDemo/DemoNode.tsx
+++ b/packages/demo-app-ts/src/demos/topologyPackageDemo/DemoNode.tsx
@@ -147,12 +147,13 @@ const getShapeComponent = (shape: NodeShape): React.FunctionComponent<ShapeProps
 };
 
 const DemoNode: React.FunctionComponent<DemoNodeProps> = observer(
-  ({ element, onContextMenu, dragging, onShowCreateConnector, onHideCreateConnector, ...rest }) => {
+  ({ element, onContextMenu, dragging, contextMenuOpen, onShowCreateConnector, onHideCreateConnector, ...rest }) => {
     const options = React.useContext(DemoContext).nodeOptions;
     const nodeElement = element as Node;
     const data = element.getData() as GeneratedNodeData;
     const detailsLevel = element.getGraph().getDetailsLevel();
     const [hover, hoverRef] = useHover();
+    const focused = hover || contextMenuOpen;
 
     React.useEffect(() => {
       if (detailsLevel === ScaleDetailsLevel.low) {
@@ -164,16 +165,18 @@ const DemoNode: React.FunctionComponent<DemoNodeProps> = observer(
     const LabelIcon = data.index % 2 === 1 ? (SignOutAltIcon as any) : undefined;
 
     return (
-      <Layer id={hover ? TOP_LAYER : DEFAULT_LAYER}>
+      <Layer id={focused ? TOP_LAYER : DEFAULT_LAYER}>
         <g ref={hoverRef}>
           <DefaultNode
             element={element}
             scaleLabel={detailsLevel !== ScaleDetailsLevel.low}
-            scaleNode={hover && detailsLevel === ScaleDetailsLevel.low}
+            scaleNode={focused && detailsLevel === ScaleDetailsLevel.low}
+            contextMenuOpen={contextMenuOpen}
             {...rest}
             dragging={dragging}
-            showLabel={hover || (detailsLevel !== ScaleDetailsLevel.low && options.labels)}
-            showStatusBackground={!hover && detailsLevel === ScaleDetailsLevel.low}
+            showLabel={focused || (detailsLevel !== ScaleDetailsLevel.low && options.labels)}
+            raiseLabelOnHover={false}
+            showStatusBackground={!focused && detailsLevel === ScaleDetailsLevel.low}
             showStatusDecorator={detailsLevel === ScaleDetailsLevel.high && options.showStatus}
             statusDecoratorTooltip={nodeElement.getNodeStatus()}
             onContextMenu={options.contextMenus ? onContextMenu : undefined}
@@ -186,12 +189,12 @@ const DemoNode: React.FunctionComponent<DemoNodeProps> = observer(
             getCustomShape={options.showShapes ? () => getShapeComponent(data.shape) : undefined}
             badge={options.badges ? data.objectType : undefined}
             attachments={
-              (hover || detailsLevel === ScaleDetailsLevel.high) &&
+              (focused || detailsLevel === ScaleDetailsLevel.high) &&
               options.showDecorators &&
               renderDecorators(options, nodeElement, rest.getShapeDecoratorCenter)
             }
           >
-            {(hover || detailsLevel !== ScaleDetailsLevel.low) && renderIcon(data, nodeElement)}
+            {(focused || detailsLevel !== ScaleDetailsLevel.low) && renderIcon(data, nodeElement)}
           </DefaultNode>
         </g>
       </Layer>
diff --git a/packages/module/src/components/nodes/DefaultNode.tsx b/packages/module/src/components/nodes/DefaultNode.tsx
index c3420764..2b933f64 100644
--- a/packages/module/src/components/nodes/DefaultNode.tsx
+++ b/packages/module/src/components/nodes/DefaultNode.tsx
@@ -118,6 +118,8 @@ interface DefaultNodeProps {
   onContextMenu?: (e: React.MouseEvent) => void;
   /** Flag indicating that the context menu for the node is currently open  */
   contextMenuOpen?: boolean;
+  /** Flag indicating the label should move to the top layer when the node is hovered, set to `false` if you are already using TOP_LAYER on hover */
+  raiseLabelOnHover?: boolean; // TODO: Update default to be false, assume demo code will be followed
 }
 
 const SCALE_UP_TIME = 200;
@@ -166,7 +168,8 @@ const DefaultNodeInner: React.FunctionComponent<DefaultNodeInnerProps> = observe
     onHideCreateConnector,
     onShowCreateConnector,
     onContextMenu,
-    contextMenuOpen
+    contextMenuOpen,
+    raiseLabelOnHover = true
   }) => {
     const [hovered, hoverRef] = useHover();
     const status = nodeStatus || element.getNodeStatus();
@@ -317,23 +320,72 @@ const DefaultNodeInner: React.FunctionComponent<DefaultNodeInnerProps> = observe
       return { translateX, translateY };
     }, [element, nodeScale, scaleNode]);
 
-    let labelX;
-    let labelY;
-    const labelPaddingX = 8;
-    const labelPaddingY = 4;
-    if (nodeLabelPosition === LabelPosition.right) {
-      labelX = (width + labelPaddingX) * labelPositionScale;
-      labelY = height / 2;
-    } else if (nodeLabelPosition === LabelPosition.left) {
-      labelX = 0;
-      labelY = height / 2 - labelPaddingY;
-    } else if (nodeLabelPosition === LabelPosition.top) {
-      labelX = width / 2;
-      labelY = labelPaddingY + labelPaddingY / 2;
-    } else {
-      labelX = (width / 2) * labelPositionScale;
-      labelY = height + labelPaddingY + labelPaddingY / 2;
-    }
+    const renderLabel = () => {
+      if (!showLabel || !(label || element.getLabel())) {
+        return null;
+      }
+
+      let labelX;
+      let labelY;
+      const labelPaddingX = 8;
+      const labelPaddingY = 4;
+      if (nodeLabelPosition === LabelPosition.right) {
+        labelX = (width + labelPaddingX) * labelPositionScale;
+        labelY = height / 2;
+      } else if (nodeLabelPosition === LabelPosition.left) {
+        labelX = 0;
+        labelY = height / 2 - labelPaddingY;
+      } else if (nodeLabelPosition === LabelPosition.top) {
+        labelX = width / 2;
+        labelY = labelPaddingY + labelPaddingY / 2;
+      } else {
+        labelX = (width / 2) * labelPositionScale;
+        labelY = height + labelPaddingY + labelPaddingY / 2;
+      }
+
+      const nodeLabel = (
+        <g
+          transform={
+            raiseLabelOnHover && isHover
+              ? `${scaleNode ? `translate(${translateX}, ${translateY})` : ''} scale(${nodeScale})`
+              : undefined
+          }
+        >
+          <g transform={`scale(${labelScale})`}>
+            <NodeLabel
+              className={css(styles.topologyNodeLabel, labelClassName)}
+              x={labelX}
+              y={labelY * labelPositionScale}
+              position={nodeLabelPosition}
+              paddingX={8}
+              paddingY={4}
+              secondaryLabel={secondaryLabel}
+              truncateLength={truncateLength}
+              status={status}
+              badge={badge}
+              badgeColor={badgeColor}
+              badgeTextColor={badgeTextColor}
+              badgeBorderColor={badgeBorderColor}
+              badgeClassName={badgeClassName}
+              badgeLocation={badgeLocation}
+              onContextMenu={onContextMenu}
+              contextMenuOpen={contextMenuOpen}
+              hover={isHover}
+              labelIconClass={labelIconClass}
+              labelIcon={labelIcon}
+              labelIconPadding={labelIconPadding}
+            >
+              {label || element.getLabel()}
+            </NodeLabel>
+          </g>
+        </g>
+      );
+      if (isHover && raiseLabelOnHover) {
+        return <Layer id={TOP_LAYER}>{nodeLabel}</Layer>;
+      }
+      return nodeLabel;
+    };
+
     return (
       <g
         className={groupClassName}
@@ -351,45 +403,7 @@ const DefaultNodeInner: React.FunctionComponent<DefaultNodeInnerProps> = observe
               filter={filter}
             />
           )}
-          {showLabel && (label || element.getLabel()) && (
-            <Layer id={isHover ? TOP_LAYER : undefined}>
-              <g
-                transform={
-                  isHover
-                    ? `${scaleNode ? `translate(${translateX}, ${translateY})` : ''} scale(${nodeScale})`
-                    : undefined
-                }
-              >
-                <g transform={`scale(${labelScale})`}>
-                  <NodeLabel
-                    className={css(styles.topologyNodeLabel, labelClassName)}
-                    x={labelX}
-                    y={labelY * labelPositionScale}
-                    position={nodeLabelPosition}
-                    paddingX={8}
-                    paddingY={4}
-                    secondaryLabel={secondaryLabel}
-                    truncateLength={truncateLength}
-                    status={status}
-                    badge={badge}
-                    badgeColor={badgeColor}
-                    badgeTextColor={badgeTextColor}
-                    badgeBorderColor={badgeBorderColor}
-                    badgeClassName={badgeClassName}
-                    badgeLocation={badgeLocation}
-                    onContextMenu={onContextMenu}
-                    contextMenuOpen={contextMenuOpen}
-                    hover={isHover}
-                    labelIconClass={labelIconClass}
-                    labelIcon={labelIcon}
-                    labelIconPadding={labelIconPadding}
-                  >
-                    {label || element.getLabel()}
-                  </NodeLabel>
-                </g>
-              </g>
-            </Layer>
-          )}
+          {renderLabel()}
           {children}
         </g>
         {statusDecorator}
diff --git a/packages/module/src/components/nodes/labels/NodeLabel.tsx b/packages/module/src/components/nodes/labels/NodeLabel.tsx
index 0f5d0ca7..f6fef1fb 100644
--- a/packages/module/src/components/nodes/labels/NodeLabel.tsx
+++ b/packages/module/src/components/nodes/labels/NodeLabel.tsx
@@ -86,7 +86,7 @@ const NodeLabel: React.FunctionComponent<NodeLabelProps> = ({
   const [labelHover, labelHoverRef] = useHover();
   const refs = useCombineRefs(dragRef, typeof truncateLength === 'number' ? labelHoverRef : undefined);
 
-  const [textSize, textRef] = useSize([children, truncateLength, className, labelHover]);
+  const [textSize, textRef] = useSize([children, truncateLength, className, labelHover, contextMenuOpen]);
   const [secondaryTextSize, secondaryTextRef] = useSize([secondaryLabel, truncateLength, className, labelHover]);
   const [badgeSize, badgeRef] = useSize([badge]);
   const [actionSize, actionRef] = useSize([actionIcon, paddingX]);
@@ -266,7 +266,9 @@ const NodeLabel: React.FunctionComponent<NodeLabelProps> = ({
         />
       )}
       <text {...other} ref={textRef} x={iconSpace + badgeSpace + paddingX} y={height / 2} dy="0.35em">
-        {truncateLength > 0 && !labelHover ? truncateMiddle(children, { length: truncateLength }) : children}
+        {truncateLength > 0 && !labelHover && !contextMenuOpen
+          ? truncateMiddle(children, { length: truncateLength })
+          : children}
       </text>
       {textSize && actionIcon && (
         <>