diff --git a/dashboard/src/ui/widgets/services.rs b/dashboard/src/ui/widgets/services.rs
index be9eb06..13f3d5f 100644
--- a/dashboard/src/ui/widgets/services.rs
+++ b/dashboard/src/ui/widgets/services.rs
@@ -519,11 +519,19 @@ impl ServicesWidget {
                     StatusIcons::create_status_spans(*line_status, line_text)
                 };
                 
-                // Apply selection highlighting to parent services only, preserving status colors
-                if is_selected && !*is_sub {
-                    for span in spans.iter_mut() {
-                        // Keep the original foreground color (status color) but add background highlight
-                        span.style = span.style.bg(Theme::highlight());
+                // Apply selection highlighting to parent services only, preserving status icon color
+                // Only show selection when Services panel is focused
+                if is_selected && !*is_sub && is_focused {
+                    for (i, span) in spans.iter_mut().enumerate() {
+                        if i == 0 {
+                            // First span is the status icon - preserve its color
+                            span.style = span.style.bg(Theme::highlight());
+                        } else {
+                            // Other spans (text) get full selection highlighting
+                            span.style = span.style
+                                .bg(Theme::highlight())
+                                .fg(Theme::background());
+                        }
                     }
                 }