diff --git a/index.d.ts b/index.d.ts
index ef8a22f3..ffe605d3 100644
--- a/index.d.ts
+++ b/index.d.ts
@@ -687,6 +687,7 @@ declare module '@lightningjs/blits' {
      * Watchers for changes to state variables, props or computed properties
      */
     watch?: W & ComponentContext<P, S, M, C>
+
   }
 
   export interface RouterHooks {
@@ -904,7 +905,9 @@ declare module '@lightningjs/blits' {
     }
   }
 
-  type ComponentFactory = () => void
+  type ComponentFactory = (() => void) & {
+    needsInteractive?: boolean
+  }
 
   // Launch Related
 
@@ -1353,7 +1356,7 @@ declare module '@lightningjs/blits' {
       M extends Methods,
       C extends Computed,
       W extends Watch>(name: string, config: ComponentConfig<P, S, M, C, W>) : ComponentFactory
-    /**
+   /**
      * Blits Launch
      */
     Launch(App: ComponentFactory, target: HTMLElement | String, settings?: Settings) : void
diff --git a/src/application.js b/src/application.js
index a10651d7..d6cf74f2 100644
--- a/src/application.js
+++ b/src/application.js
@@ -165,6 +165,7 @@ const Application = (config) => {
 
       if (node === null) {
         currentComponent = undefined
+        currentNode = null
         Hover.clear()
         return
       }
diff --git a/src/component.js b/src/component.js
index 1999ff2a..022b7c31 100644
--- a/src/component.js
+++ b/src/component.js
@@ -499,6 +499,16 @@ const Component = (name = required('name'), config = required('config')) => {
   // To determine whether dynamic component is actual Blits component or not
   factory[symbols.isComponent] = true
 
+  // Getter to determine if the component needs interactive hover support
+  Object.defineProperty(factory, 'needsInteractive', {
+    get() {
+      return (
+        (config.hooks && !!(config.hooks.hover || config.hooks.unhover)) ||
+        !!(config.code && config.code.usesHoverState)
+      )
+    },
+  })
+
   return factory
 }
 
diff --git a/src/engines/L3/element.test.js b/src/engines/L3/element.test.js
index 09e8e59b..ef39ffaa 100644
--- a/src/engines/L3/element.test.js
+++ b/src/engines/L3/element.test.js
@@ -1255,3 +1255,29 @@ test('Element - Set maxheight property', (assert) => {
   assert.equal(el.props.props['contain'], 'height', 'maxheight should set contain to height')
   assert.end()
 })
+
+test('Element - holder sets interactive to the passed value (true)', (assert) => {
+  assert.capture(renderer, 'createNode', () => new EventEmitter())
+  const component = {}
+  const el = element({ parent: { node: { w: 1920, h: 1080 } } }, component)
+  el.populate({ parent: { node: new EventEmitter() }, holder: true })
+  assert.equal(
+    el.props.props['interactive'],
+    true,
+    'interactive should be true when holder value is true'
+  )
+  assert.end()
+})
+
+test('Element - holder sets interactive to the passed value (false)', (assert) => {
+  assert.capture(renderer, 'createNode', () => new EventEmitter())
+  const component = {}
+  const el = element({ parent: { node: { w: 1920, h: 1080 } } }, component)
+  el.populate({ parent: { node: new EventEmitter() }, holder: false })
+  assert.equal(
+    el.props.props['interactive'],
+    false,
+    'interactive should be false when holder value is false'
+  )
+  assert.end()
+})
diff --git a/src/lib/codegenerator/generator.js b/src/lib/codegenerator/generator.js
index f8ab03bc..d54eb37c 100644
--- a/src/lib/codegenerator/generator.js
+++ b/src/lib/codegenerator/generator.js
@@ -87,6 +87,8 @@ export default function (templateObject = { children: [] }, devMode = false) {
     }, skips}
   `)
 
+  const renderCodeString = ctx.renderCode.join('\n')
+
   return {
     render: new Function(
       'parent',
@@ -96,7 +98,7 @@ export default function (templateObject = { children: [] }, devMode = false) {
       'effect',
       'getRaw',
       'Log',
-      ctx.renderCode.join('\n')
+      renderCodeString
     ),
     effects: ctx.effectsCode.map(
       (code) =>
@@ -112,6 +114,7 @@ export default function (templateObject = { children: [] }, devMode = false) {
         )
     ),
     context: ctx.context,
+    usesHoverState: renderCodeString.includes('.$isHovered'),
   }
 }
 
@@ -187,7 +190,7 @@ const generateElementCode = function (
   }
 
   if (options.holder) {
-    renderCode.push(`elementConfigs[${counter}]['holder'] = true`)
+    renderCode.push(`elementConfigs[${counter}]['holder'] = cmps[${counter}].needsInteractive`)
   }
 
   Object.keys(templateObject).forEach((key) => {
diff --git a/src/lib/codegenerator/generator.test.js b/src/lib/codegenerator/generator.test.js
index e5cbfecf..23dfac2f 100644
--- a/src/lib/codegenerator/generator.test.js
+++ b/src/lib/codegenerator/generator.test.js
@@ -1542,7 +1542,7 @@ test('Generate code for a template with custom components', (assert) => {
 
     elementConfigs[1] = {}
     elms[1] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[1]['holder'] = true
+    elementConfigs[1]['holder'] = cmps[1].needsInteractive
     skips[1] = []
     if (typeof cmps[1] !== 'undefined' && cmps[1][Symbol.for('config')].props !== undefined) {
       let props = cmps[1][Symbol.for('config')].props
@@ -1591,7 +1591,7 @@ test('Generate code for a template with custom components', (assert) => {
 
     elementConfigs[3] = {}
     elms[3] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[3]['holder'] = true
+    elementConfigs[3]['holder'] = cmps[3].needsInteractive
     skips[3] = []
     if (typeof cmps[3] !== 'undefined' && cmps[3][Symbol.for('config')].props !== undefined) {
       let props = cmps[3][Symbol.for('config')].props
@@ -1730,7 +1730,7 @@ test('Generate code for a template with an unregistered custom component', (asse
     parent = elms[0]
     elementConfigs[1] = {}
     elms[1] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[1]['holder'] = true
+    elementConfigs[1]['holder'] = cmps[1].needsInteractive
     skips[1] = []
     if (typeof cmps[1] !== 'undefined' && cmps[1][Symbol.for('config')].props !== undefined) {
       let props = cmps[1][Symbol.for('config')].props
@@ -1775,7 +1775,7 @@ test('Generate code for a template with an unregistered custom component', (asse
     parent = elms[0]
     elementConfigs[3] = {}
     elms[3] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[3]['holder'] = true
+    elementConfigs[3]['holder'] = cmps[3].needsInteractive
     skips[3] = []
     if (typeof cmps[3] !== 'undefined' && cmps[3][Symbol.for('config')].props !== undefined) {
       let props = cmps[3][Symbol.for('config')].props
@@ -1913,7 +1913,7 @@ test('Generate code for a template with custom components with arguments', (asse
     parent = elms[0]
     elementConfigs[1] = {}
     elms[1] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[1]['holder'] = true
+    elementConfigs[1]['holder'] = cmps[1].needsInteractive
     elementConfigs[1]['x'] = 10
     skips[1] = []
     if(typeof cmps[1] !== 'undefined' && cmps[1][Symbol.for('config')].props !== undefined) {
@@ -1960,7 +1960,7 @@ test('Generate code for a template with custom components with arguments', (asse
     parent = elms[0]
     elementConfigs[3] = {}
     elms[3] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[3]['holder'] = true
+    elementConfigs[3]['holder'] = cmps[3].needsInteractive
     elementConfigs[3]['x'] = 100
     elementConfigs[3]['img'] = component.img
     skips[3] = []
@@ -2107,7 +2107,7 @@ test('Generate code for a template with custom components with argument value as
 
     elms[1] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
 
-    elementConfigs[1]['holder'] = true
+    elementConfigs[1]['holder'] = cmps[1].needsInteractive
     elementConfigs[1]['x'] = 1000
     elementConfigs[1]['y'] = 100
     elementConfigs[1]['h'] = parent.node.h * (45 / 100)
@@ -2262,7 +2262,7 @@ test('Generate code for a template with custom components with reactive props',
     parent = elms[0]
     elementConfigs[1] = {}
     elms[1] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[1]['holder'] = true
+    elementConfigs[1]['holder'] = cmps[1].needsInteractive
     elementConfigs[1]['x'] = 10
     elementConfigs[1]['img'] = component.image
     skips[1] = []
@@ -2316,7 +2316,7 @@ test('Generate code for a template with custom components with reactive props',
     parent = elms[0]
     elementConfigs[3] = {}
     elms[3] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[3]['holder'] = true
+    elementConfigs[3]['holder'] = cmps[3].needsInteractive
     elementConfigs[3]['x'] = 100
     elementConfigs[3]['img'] = component.image
     skips[3] = []
@@ -2592,7 +2592,7 @@ test('Generate code for a template with slot content', (assert) => {
 
     elementConfigs[1] = {}
     elms[1] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[1]['holder'] = true
+    elementConfigs[1]['holder'] = cmps[1].needsInteractive
     elementConfigs[1]['w'] = 1920
     elementConfigs[1]['h'] = 1080
     skips[1] = []
@@ -2781,7 +2781,7 @@ test('Generate code for a template with slot content, using a named slot', (asse
 
     elementConfigs[1] = {}
     elms[1] = this.element({ parent: parent || 'root' }, inSlot === true ? slotComponent : component)
-    elementConfigs[1]['holder'] = true
+    elementConfigs[1]['holder'] = cmps[1].needsInteractive
     elementConfigs[1]['w'] = 1920
     elementConfigs[1]['h'] = 1080
     skips[1] = []
@@ -4411,7 +4411,7 @@ test('Generate code for a template with a simple for-loop on a Component with a
       if(elms[1][scope.key] === undefined) {
           elms[1][scope.key] = this.element({parent: parent || 'root'}, inSlot === true ? slotComponent : component)
       }
-      elementConfigs[1]['holder'] = true
+      elementConfigs[1]['holder'] = cmps[1].needsInteractive
           skips[1] = []
           if(typeof cmps[1] !== 'undefined' && cmps[1][Symbol.for('config')].props !== undefined) {
             // attributes that are a prop should be removed from element config (even if it's a know element prop)
diff --git a/src/lib/hooks.js b/src/lib/hooks.js
index f0a18c80..5bb45cf0 100644
--- a/src/lib/hooks.js
+++ b/src/lib/hooks.js
@@ -57,3 +57,7 @@ export const registerHooks = (hooks = {}, identifier) => {
     if (typeof hooks[hook] === 'function') cbs[identifier][hook] = hooks[hook]
   })
 }
+
+export const hasHook = (hook, identifier) => {
+  return cbs[identifier] !== undefined && hook in cbs[identifier]
+}
diff --git a/src/lib/precompiler/precompiler.js b/src/lib/precompiler/precompiler.js
index 7552b20f..1aed01a2 100644
--- a/src/lib/precompiler/precompiler.js
+++ b/src/lib/precompiler/precompiler.js
@@ -31,6 +31,11 @@ export default (source, filePath, mode) => {
     // Use MagicString to track changes
     const s = new MagicString(source)
 
+    // Find component definition start positions for scoping JS-layer checks
+    const componentStarts = [...source.matchAll(/Blits\.(Component|Application)\s*\(/g)]
+      .map((m) => m.index)
+      .sort((a, b) => a - b)
+
     for (const template of templates) {
       if (template[2]) {
         const templateContent = template[2]
@@ -52,10 +57,28 @@ export default (source, filePath, mode) => {
           // Generate the code
           const code = generator.call({ components: {} }, parsed, mode === 'development')
 
+          // Determine the component scope containing this template
+          let scopeStart = 0
+          let scopeEnd = source.length
+          for (let i = 0; i < componentStarts.length; i++) {
+            if (componentStarts[i] <= templateStartIndex) {
+              scopeStart = componentStarts[i]
+              scopeEnd = i + 1 < componentStarts.length ? componentStarts[i + 1] : source.length
+            }
+          }
+          const componentScope = source.slice(scopeStart, scopeEnd)
+
+          // Derive usesHoverState from both template ($$isHovered) and JS layer (this.$isHovered)
+          // Strip comments before checking to avoid false positives from commented-out code
+          const strippedScope = componentScope
+            .replace(/\/\/[^\n]*/g, '')
+            .replace(/\/\*[\s\S]*?\*\//g, '')
+          const usesHoverState = code.usesHoverState || strippedScope.includes('this.$isHovered')
+
           // Insert the code in the component using the 'code' key, replacing the template key
           const replacement = `/* eslint-disable no-unused-vars */ \ncode: { render: ${code.render.toString()}, effects: [${code.effects.map(
             (fn) => fn.toString()
-          )}], context: {}}`
+          )}], context: {}, usesHoverState: ${usesHoverState}}`
 
           // MagicString tracks all changes automatically, no offset needed
           s.overwrite(templateStartIndex, templateEndIndex, replacement)
diff --git a/src/router/router.js b/src/router/router.js
index 436ef4ce..9d2393be 100644
--- a/src/router/router.js
+++ b/src/router/router.js
@@ -42,7 +42,7 @@ import Settings from '../settings.js'
  * @property {Object} hooks - The hooks of the route
  * @property {Object} transition - The transition of the route
  * @property {Object} announce - The announce of the route
- * @property {(options: Object, parentEl: BlitsElement, parentComponent: BlitsComponent, rootComponent?: BlitsComponent) => BlitsComponent} component - The component factory of the route
+ * @property {BlitsComponentFactory} component - The component factory of the route (or a lazy import function)
  *
  * @typedef {Object} Hash
  * @property {string} path - The path of the hash
@@ -427,8 +427,11 @@ export const navigate = async function () {
 
       if (!view) {
         // create a holder element for the new view
+        // for lazy imports needsInteractive is undefined, default to true
+        const needsInteractive =
+          route.component.needsInteractive !== undefined ? route.component.needsInteractive : true
         holder = stage.element({ parent: this[symbols.children][0] })
-        holder.populate({})
+        holder.populate({ holder: needsInteractive })
         holder.set('w', '100%')
         holder.set('h', '100%')