diff --git a/packages/excalidraw/components/App.tsx b/packages/excalidraw/components/App.tsx
index 767a751e25..93578091b9 100644
--- a/packages/excalidraw/components/App.tsx
+++ b/packages/excalidraw/components/App.tsx
@@ -27,6 +27,7 @@ import {
   KEYS,
   APP_NAME,
   CURSOR_TYPE,
+  DEFAULT_TRANSFORM_HANDLE_SPACING,
   DEFAULT_MAX_IMAGE_WIDTH_OR_HEIGHT,
   DEFAULT_VERTICAL_ALIGN,
   DRAGGING_THRESHOLD,
@@ -7239,6 +7240,14 @@ class App extends React.Component<AppProps, AppState> {
           this.interactiveCanvas,
           isTextElement(hitElement) ? CURSOR_TYPE.TEXT : CURSOR_TYPE.CROSSHAIR,
         );
+      } else if (
+        !event[KEYS.CTRL_OR_CMD] &&
+        this.isHittingCommonBoundingBoxOfSelectedElements(
+          scenePointer,
+          selectedElements,
+        )
+      ) {
+        setCursor(this.interactiveCanvas, CURSOR_TYPE.MOVE);
       } else if (this.state.viewModeEnabled) {
         setCursor(this.interactiveCanvas, CURSOR_TYPE.GRAB);
       } else if (this.state.openDialog?.name === "elementLinkSelector") {
@@ -8729,12 +8738,14 @@ class App extends React.Component<AppProps, AppState> {
       DEFAULT_COLLISION_THRESHOLD / this.state.zoom.value,
       1,
     );
+    const boundsPadding =
+      (DEFAULT_TRANSFORM_HANDLE_SPACING * 2) / this.state.zoom.value;
     const [x1, y1, x2, y2] = getCommonBounds(selectedElements);
     return (
-      point.x > x1 - threshold &&
-      point.x < x2 + threshold &&
-      point.y > y1 - threshold &&
-      point.y < y2 + threshold
+      point.x > x1 - boundsPadding - threshold &&
+      point.x < x2 + boundsPadding + threshold &&
+      point.y > y1 - boundsPadding - threshold &&
+      point.y < y2 + boundsPadding + threshold
     );
   }