diff --git a/CHANGELOG.md b/CHANGELOG.md
index 75b53640f..e94308085 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+## 4.5.4
+
+- [638](https://github.com/bvaughn/react-resizable-panels/pull/638): `Panel` avoids unnecessary re-renders in response to mouse-hover state.
+
 ## 4.5.3
 
 - [635](https://github.com/bvaughn/react-resizable-panels/pull/635): Expand pre-collapsed panels if drug past the halfway point for more consistent collapse/expand behavior.
diff --git a/lib/components/group/Group.tsx b/lib/components/group/Group.tsx
index dd16ce7a0..a96e4a420 100644
--- a/lib/components/group/Group.tsx
+++ b/lib/components/group/Group.tsx
@@ -233,12 +233,23 @@ export function Group({
       }
     }
 
+    let prevInteractionStateActive = false;
+
     const removeInteractionStateChangeListener = eventEmitter.addListener(
       "interactionStateChange",
-      () => {
-        inMemoryValues.panels.forEach((panel) => {
-          panel.scheduleUpdate();
-        });
+      (interactionState) => {
+        const nextInteractionStateActive = interactionState.state === "active";
+        if (prevInteractionStateActive !== nextInteractionStateActive) {
+          prevInteractionStateActive = nextInteractionStateActive;
+
+          // The only reason to schedule a re-render in response to this event type
+          // is to disable pointer-events within a Panel while a drag is in progress
+          // (This is done to prevent text from being selected, etc)
+          // Unnecessary updates should be very fast in this case but we can still avoid them
+          inMemoryValues.panels.forEach((panel) => {
+            panel.scheduleUpdate();
+          });
+        }
       }
     );
 
diff --git a/package.json b/package.json
index f2d11d2b7..329332ec5 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "react-resizable-panels",
-  "version": "4.5.3",
+  "version": "4.5.4",
   "type": "module",
   "author": "Brian Vaughn <brian.david.vaughn@gmail.com> (https://github.com/bvaughn/)",
   "contributors": [