diff --git a/app/assets/javascripts/components/AutocompleteTagInput.tsx b/app/assets/javascripts/components/AutocompleteTagInput.tsx
index 8ccfb3d56..6be62ad80 100644
--- a/app/assets/javascripts/components/AutocompleteTagInput.tsx
+++ b/app/assets/javascripts/components/AutocompleteTagInput.tsx
@@ -115,6 +115,7 @@ export const AutocompleteTagInput = observer(({ appState }: Props) => {
             ref={dropdownRef}
             className={`${tags.length > 0 ? 'w-80' : 'w-70 mr-10'} sn-dropdown flex flex-col py-2 absolute`}
             style={{ maxHeight: dropdownMaxHeight, maxWidth: tagsContainerMaxWidth }}
+            onBlur={closeOnBlur}
           >
             <div className="overflow-y-scroll">
               {autocompleteTagResults.map((tagResult) => (
diff --git a/app/assets/javascripts/views/tags/tags_view.ts b/app/assets/javascripts/views/tags/tags_view.ts
index d7ce1bbc8..5a10a69e1 100644
--- a/app/assets/javascripts/views/tags/tags_view.ts
+++ b/app/assets/javascripts/views/tags/tags_view.ts
@@ -267,6 +267,7 @@ class TagsViewCtrl extends PureViewCtrl<unknown, TagState> {
 
   async clickedAddNewTag() {
     if (this.getState().editingTag) {
+      console.log('editing');
       return;
     }
     const newTag = await this.application.createTemplateItem(
@@ -289,10 +290,10 @@ class TagsViewCtrl extends PureViewCtrl<unknown, TagState> {
 
   async saveTag($event: Event, tag: SNTag) {
     ($event.target! as HTMLInputElement).blur();
-    if (!this.titles[tag.uuid]?.length) {
-      return this.undoCreateTag(tag);
-    }
     if (this.getState().templateTag) {
+      if (!this.titles[tag.uuid]?.length) {
+        return this.undoCreateTag(tag);
+      }
       return this.saveNewTag();
     } else {
       return this.saveTagRename(tag);
@@ -314,6 +315,9 @@ class TagsViewCtrl extends PureViewCtrl<unknown, TagState> {
     if (newTitle.length === 0) {
       this.titles[tag.uuid] = this.editingOriginalName;
       this.editingOriginalName = undefined;
+      await this.setState({
+        editingTag: undefined
+      });
       return;
     }
     const existingTag = this.application.findTagByTitle(newTitle);
@@ -345,6 +349,7 @@ class TagsViewCtrl extends PureViewCtrl<unknown, TagState> {
       this.application.alertService!.alert(
         "A tag with this name already exists."
       );
+      this.undoCreateTag(newTag);
       return;
     }
     const insertedTag = await this.application.insertItem(newTag);
diff --git a/package.json b/package.json
index bcc502563..fb2b32c70 100644
--- a/package.json
+++ b/package.json
@@ -71,7 +71,7 @@
     "@reach/checkbox": "^0.13.2",
     "@reach/dialog": "^0.13.0",
     "@standardnotes/sncrypto-web": "1.2.10",
-    "@standardnotes/snjs": "2.6.0",
+    "@standardnotes/snjs": "2.6.1",
     "mobx": "^6.1.6",
     "mobx-react-lite": "^3.2.0",
     "preact": "^10.5.12"
diff --git a/yarn.lock b/yarn.lock
index de7bfddca..35a42eddb 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1936,10 +1936,10 @@
     "@standardnotes/sncrypto-common" "^1.2.7"
     libsodium-wrappers "^0.7.8"
 
-"@standardnotes/snjs@2.6.0":
-  version "2.6.0"
-  resolved "https://registry.yarnpkg.com/@standardnotes/snjs/-/snjs-2.6.0.tgz#8ebdfcb0918c308198b38a63d7aa946387b83ac4"
-  integrity sha512-Gb/kAdMtjVlSiQH7pkDzFxKtIrrY43i2hSejO2c+zCviZspiDZPpXLpEhMJ295ow2tluhOf8zfBUda3LMC6oDw==
+"@standardnotes/snjs@2.6.1":
+  version "2.6.1"
+  resolved "https://registry.yarnpkg.com/@standardnotes/snjs/-/snjs-2.6.1.tgz#45c3906086a649d03e5c139ef0b30fa90a639e65"
+  integrity sha512-ZuygivyJvqLMGeOurmg5K3lR0tk6zDgf53qIecFD8redaUpFicegeOlV+RW4m0QthU+ne74DHSCqk2U85oUxrA==
   dependencies:
     "@standardnotes/auth" "^2.0.0"
     "@standardnotes/sncrypto-common" "^1.2.9"