diff --git a/crates/engine/src/tests_textedit.rs b/crates/engine/src/tests_textedit.rs
index b098fb04..a306f953 100644
--- a/crates/engine/src/tests_textedit.rs
+++ b/crates/engine/src/tests_textedit.rs
@@ -113,8 +113,15 @@ fn type_tool_typing_is_one_undo_step() {
     assert!(!s.in_interaction(), "moving the caret commits");
     assert_eq!(undo_labels(&s).last().map(String::as_str), Some("Typing"));
     s.tool_text("!", v).unwrap();
-    key(&mut s, ToolKey::Escape, Mods::default());
+    // #1686: Escape is the tool's while editing, and asks the UI for the Selection tool.
+    assert!(s.tool_claims_key(ToolKey::Escape, v));
+    let r = s.tool_key(ToolKey::Escape, Mods::default(), v).unwrap();
+    assert!(r.iter().any(|r| matches!(r, UiRequest::SwitchTool(t) if t == "selection")), "{r:?}");
+    assert!(!s.tool_claims_key(ToolKey::Escape, v));
     assert_eq!(obj(&s, id).plain_text(), "Hello worl!d");
+    // #1686: Escape ends editing, the type still selected; the UI goes on to the Selection tool.
+    assert!(!s.tool_wants_text());
+    assert_eq!(s.doc().unwrap().selection.objects, vec![id]);
     s.execute("edit.undo", &json!({})).unwrap();
     assert_eq!(obj(&s, id).plain_text(), "Hello world");
     s.execute("edit.undo", &json!({})).unwrap();
diff --git a/crates/tools/src/text.rs b/crates/tools/src/text.rs
index 564220ad..9eb2d379 100644
--- a/crates/tools/src/text.rs
+++ b/crates/tools/src/text.rs
@@ -381,6 +381,10 @@ impl Tool for TypeTool {
     fn wants_text(&self) -> bool {
         self.editing.is_some()
     }
+    /// Escape while editing is the tool's: it goes on to the Selection tool (#1686).
+    fn claims_key(&self, _: &ToolContext, key: ToolKey) -> bool {
+        key == ToolKey::Escape && self.editing.is_some()
+    }
     fn pointer(&mut self, cx: &ToolContext, ev: &PointerEvent) -> Vec<Action> {
         match ev.kind {
             PointerKind::Down => {
@@ -522,7 +526,13 @@ impl Tool for TypeTool {
             self.goal_x = None;
         }
         match key {
-            ToolKey::Escape => self.finish(cx),
+            // Escape ends editing and goes to the Selection tool, the type selected: the keyboard
+            // is free for tool shortcuts again (#1686).
+            ToolKey::Escape => {
+                let mut out = self.finish(cx);
+                out.push(Action::SwitchTool("selection".into()));
+                out
+            }
             ToolKey::Enter => self.replace(cx, "\n", None),
             ToolKey::Tab => self.replace(cx, "\t", None),
             ToolKey::Backspace | ToolKey::Delete if a != b => self.replace(cx, "", None),