diff --git a/CHANGELOG.adoc b/CHANGELOG.adoc
index a9c490132d..b39cd372a6 100644
--- a/CHANGELOG.adoc
+++ b/CHANGELOG.adoc
@@ -60,6 +60,7 @@ This was first fixed in 2022.3.0 but broken in 2024.3.0; it is now fixed again.
 - https://github.com/eclipse-sirius/sirius-web/issues/4280[#4280] [diagram] Fix direct edit with F2 when the palette is opened
 - https://github.com/eclipse-sirius/sirius-web/issues/4302[#4302] [diagram] Fix edges label flashing
 - https://github.com/eclipse-sirius/sirius-web/issues/4312[#4312] [sirius-web] The _Details_ view dit not react to its input is deselected, showing potentially stale information
+- https://github.com/eclipse-sirius/sirius-web/issues/4285[#4285] [diagram] Fix direct edit after closing the palette
 
 === New Features
 
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/delete/useDiagramDelete.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/delete/useDiagramDelete.tsx
index 8c4b0e57d9..a8e538c158 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/delete/useDiagramDelete.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/delete/useDiagramDelete.tsx
@@ -57,7 +57,7 @@ export const useDiagramDelete = (): UseDiagramDeleteValue => {
   const { addErrorMessage, addMessages } = useMultiToast();
   const { showDeletionConfirmation } = useDeletionConfirmationDialog();
   const { diagramId, editingContextId, readOnly } = useContext<DiagramContextValue>(DiagramContext);
-  const { getNodes } = useReactFlow<Node<NodeData>, Edge<EdgeData>>();
+  const { getNodes, getEdges } = useReactFlow<Node<NodeData>, Edge<EdgeData>>();
 
   const [deleteElementsMutation, { data: deleteElementsData, error: deleteElementsError }] = useMutation<
     GQLDeleteFromDiagramData,
@@ -78,23 +78,28 @@ export const useDiagramDelete = (): UseDiagramDeleteValue => {
 
   const onDelete = useCallback((event: React.KeyboardEvent<Element>) => {
     const { key } = event;
-    /*If a modifier key is hit alone, do nothing*/
     const isTextField = event.target instanceof HTMLInputElement || event.target instanceof HTMLTextAreaElement;
-    if ((event.altKey && key === 'Alt') || (event.shiftKey && key === 'Shift') || isTextField) {
+
+    /*If a modifier key is hit alone, do nothing*/
+    if ((event.altKey && key === 'Alt') || (event.shiftKey && key === 'Shift') || isTextField || readOnly) {
       return;
     }
-    event.preventDefault();
 
     if (key === 'Delete' && editingContextId && diagramId && !readOnly) {
       const nodeToDeleteIds: string[] = getNodes()
         .filter((node) => node.selected)
         .map((node) => node.id);
+
+      const edgesToDeleteIds: string[] = getEdges()
+        .filter((edge) => edge.selected)
+        .map((edge) => edge.id);
+
       const input: GQLDeleteFromDiagramInput = {
         id: crypto.randomUUID(),
         editingContextId,
         representationId: diagramId,
         nodeIds: nodeToDeleteIds,
-        edgeIds: [],
+        edgeIds: edgesToDeleteIds,
         deletionPolicy: GQLDeletionPolicy.SEMANTIC,
       };
       showDeletionConfirmation(() => {
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/direct-edit/useDiagramDirectEdit.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/direct-edit/useDiagramDirectEdit.tsx
index c95f9981a7..cd43f31a45 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/direct-edit/useDiagramDirectEdit.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/direct-edit/useDiagramDirectEdit.tsx
@@ -30,19 +30,25 @@ export const useDiagramDirectEdit = (): UseDiagramDirectEditValue => {
   const onDirectEdit = useCallback(
     (event: React.KeyboardEvent<Element>) => {
       const { key } = event;
-      /*If a modifier key is hit alone, do nothing*/
+
       const isTextField = event.target instanceof HTMLInputElement || event.target instanceof HTMLTextAreaElement;
-      if ((event.altKey && key === 'Alt') || (event.shiftKey && key === 'Shift') || isTextField || readOnly) {
+
+      /*If a modifier key is hit alone, do nothing*/
+      if ((event.altKey && key === 'Alt') || (event.shiftKey && key === 'Shift') || readOnly) {
+        return;
+      }
+
+      if (key !== 'F2' && isTextField) {
         return;
       }
 
-      event.preventDefault();
       const validFirstInputChar =
         !event.metaKey && !event.ctrlKey && key.length === 1 && directEditActivationValidCharacters.test(key);
 
       let currentlyEditedLabelId: string | undefined | null;
       let isLabelEditable: boolean = false;
       const nodeData: NodeData | undefined = getNodes().find((node) => node.selected)?.data;
+
       if (nodeData) {
         if (nodeData.insideLabel) {
           currentlyEditedLabelId = nodeData.insideLabel.id;
@@ -51,6 +57,7 @@ export const useDiagramDirectEdit = (): UseDiagramDirectEditValue => {
         }
         isLabelEditable = nodeData.labelEditable;
       }
+
       if (!currentlyEditedLabelId) {
         currentlyEditedLabelId = getEdges().find((edge) => edge.selected)?.data?.label?.id;
         isLabelEditable = getEdges().find((edge) => edge.selected)?.data?.centerLabelEditable || false;
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/edge/MultiLabelEdge.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/edge/MultiLabelEdge.tsx
index f9fd234a3a..3b837e9fde 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/edge/MultiLabelEdge.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/edge/MultiLabelEdge.tsx
@@ -94,14 +94,14 @@ export const MultiLabelEdge = memo(
           markerEnd={selected ? `${markerEnd?.slice(0, markerEnd.length - 2)}--selected')` : markerEnd}
           markerStart={selected ? `${markerStart?.slice(0, markerStart.length - 2)}--selected')` : markerStart}
         />
-        {selected ? (
-          <DiagramElementPalette
-            diagramElementId={id}
-            targetObjectId={data?.targetObjectId ?? ''}
-            labelId={label ? label.id : null}
-          />
-        ) : null}
         <EdgeLabelRenderer>
+          {selected ? (
+            <DiagramElementPalette
+              diagramElementId={id}
+              targetObjectId={data?.targetObjectId ?? ''}
+              labelId={label ? label.id : null}
+            />
+          ) : null}
           {beginLabel && (
             <div style={labelContainerStyle(`${sourceLabelTranslation} translate(${sourceX}px,${sourceY}px)`)}>
               <Label diagramElementId={id} label={beginLabel} faded={!!faded} />
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramElementPalette.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramElementPalette.tsx
index f031313936..08342de902 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramElementPalette.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramElementPalette.tsx
@@ -23,14 +23,9 @@ import { useDiagramElementPalette } from './useDiagramElementPalette';
 export const DiagramElementPalette = memo(
   ({ diagramElementId, targetObjectId, labelId }: DiagramElementPaletteProps) => {
     const { readOnly } = useContext<DiagramContextValue>(DiagramContext);
-    const { isOpened, x, y, hideDiagramElementPalette } = useDiagramElementPalette();
+    const { isOpened, x, y } = useDiagramElementPalette();
     const { setCurrentlyEditedLabelId, currentlyEditedLabelId } = useDiagramDirectEdit();
 
-    //If the Palette search field has the focus on, the useKeyPress from reactflow ignore the key pressed event.
-    const onEscape = () => {
-      hideDiagramElementPalette();
-    };
-
     if (readOnly) {
       return null;
     }
@@ -49,7 +44,6 @@ export const DiagramElementPalette = memo(
           diagramElementId={diagramElementId}
           targetObjectId={targetObjectId}
           onDirectEditClick={handleDirectEditClick}
-          onEscape={onEscape}
         />
       </PalettePortal>
     ) : null;
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramPalette.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramPalette.tsx
index 75010abd82..160ce8534e 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramPalette.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/DiagramPalette.tsx
@@ -11,8 +11,7 @@
  *     Obeo - initial API and implementation
  *******************************************************************************/
 
-import { useKeyPress } from '@xyflow/react';
-import { memo, useContext, useEffect } from 'react';
+import { memo, useContext } from 'react';
 import { DiagramContext } from '../../contexts/DiagramContext';
 import { DiagramContextValue } from '../../contexts/DiagramContext.types';
 import { DiagramPaletteProps } from './DiagramPalette.types';
@@ -22,24 +21,12 @@ import { useDiagramPalette } from './useDiagramPalette';
 
 export const DiagramPalette = memo(({ diagramElementId, targetObjectId }: DiagramPaletteProps) => {
   const { readOnly } = useContext<DiagramContextValue>(DiagramContext);
-  const { isOpened, x, y, hideDiagramPalette } = useDiagramPalette();
-
-  const escapePressed = useKeyPress('Escape');
-  useEffect(() => {
-    if (escapePressed) {
-      hideDiagramPalette();
-    }
-  }, [escapePressed, hideDiagramPalette]);
+  const { isOpened, x, y } = useDiagramPalette();
 
   if (readOnly) {
     return null;
   }
 
-  //If the Palette search field has the focus on, the useKeyPress from reactflow ignore the key pressed event.
-  const onEscape = () => {
-    hideDiagramPalette();
-  };
-
   return isOpened && x && y ? (
     <PalettePortal>
       <Palette
@@ -48,7 +35,6 @@ export const DiagramPalette = memo(({ diagramElementId, targetObjectId }: Diagra
         diagramElementId={diagramElementId}
         targetObjectId={targetObjectId}
         onDirectEditClick={() => {}}
-        onEscape={onEscape}
       />
     </PalettePortal>
   ) : null;
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/Palette.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/Palette.tsx
index 629fdd36d3..adab2c0b6c 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/Palette.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/Palette.tsx
@@ -16,10 +16,11 @@ import Box from '@mui/material/Box';
 import Divider from '@mui/material/Divider';
 import Paper from '@mui/material/Paper';
 import { Edge, Node, useStoreApi, useViewport, XYPosition } from '@xyflow/react';
-import React, { useEffect, useState } from 'react';
+import React, { useCallback, useEffect, useState } from 'react';
 import Draggable, { DraggableData } from 'react-draggable';
 import { makeStyles } from 'tss-react/mui';
 import { EdgeData, NodeData } from '../DiagramRenderer.types';
+import { useGroupPalette } from './group-tool/useGroupPalette';
 import {
   GQLPalette,
   GQLPaletteDivider,
@@ -34,6 +35,8 @@ import { PaletteQuickAccessToolBar } from './quick-access-tool/PaletteQuickAcces
 import { PaletteSearchField } from './search/PaletteSearchField';
 import { PaletteSearchResult } from './search/PaletteSearchResult';
 import { PaletteToolList } from './tool-list/PaletteToolList';
+import { useDiagramElementPalette } from './useDiagramElementPalette';
+import { useDiagramPalette } from './useDiagramPalette';
 import { usePalette } from './usePalette';
 
 const usePaletteStyle = makeStyles<PaletteStyleProps>()((theme, props) => ({
@@ -104,7 +107,6 @@ export const Palette = ({
   diagramElementId,
   targetObjectId,
   onDirectEditClick,
-  onEscape,
 }: PaletteProps) => {
   const { domNode, nodeLookup, edgeLookup } = useStoreApi<Node<NodeData>, Edge<EdgeData>>().getState();
   const { x: viewportWidth, y: viewportHeight } = computeDraggableBounds(domNode?.getBoundingClientRect());
@@ -134,6 +136,41 @@ export const Palette = ({
 
   const shouldRender = palette && (getPaletteToolCount(palette) > 0 || !!diagramElement);
 
+  const { hideDiagramPalette } = useDiagramPalette();
+  const { hideDiagramElementPalette } = useDiagramElementPalette();
+  const { hideGroupPalette } = useGroupPalette();
+
+  const closeAllPalettes = useCallback(() => {
+    hideDiagramPalette();
+    hideDiagramElementPalette();
+    hideGroupPalette();
+  }, [hideDiagramPalette, hideDiagramElementPalette, hideGroupPalette]);
+
+  const store = useStoreApi<Node<NodeData>, Edge<EdgeData>>();
+
+  const onKeyDown = useCallback((event: React.KeyboardEvent<Element>) => {
+    const { key } = event;
+    if (key === 'Escape') {
+      // Stop propagating the event in order to keep the node/edge selected
+      event.stopPropagation();
+
+      closeAllPalettes();
+
+      //Set the focus from the palette to the node/edge
+      const selectedNode = store.getState().nodes.filter((node) => node.selected);
+      const selectedEdges = store.getState().edges.filter((edge) => edge.selected);
+      if (selectedNode.length + selectedEdges.length === 1) {
+        const selectedElement = selectedNode[0] || selectedEdges[0];
+        if (selectedElement) {
+          let domElement = document.querySelector(`[data-id='${selectedElement.id}']`);
+          if (domElement) {
+            (domElement as HTMLElement).focus();
+          }
+        }
+      }
+    }
+  }, []);
+
   if (!shouldRender) {
     return null;
   }
@@ -165,17 +202,16 @@ export const Palette = ({
         ref={nodeRef}
         className={classes.palette}
         data-testid="Palette"
+        id="palette"
         elevation={3}
-        onClick={(event) => event.stopPropagation()}>
+        onKeyDown={onKeyDown}
+        onClick={(event) => event.stopPropagation()}
+        tabIndex={0}>
         <Box id="tool-palette-header" className={classes.paletteHeader}>
           <DragIndicatorIcon />
         </Box>
         <Divider />
-        <PaletteSearchField
-          onValueChanged={onSearchFieldValueChanged}
-          onEscape={onEscape}
-          onDirectEditClick={onDirectEditClick}
-        />
+        <PaletteSearchField onValueChanged={onSearchFieldValueChanged} />
         <PaletteQuickAccessToolBar
           diagramElementId={diagramElementId}
           onToolClick={handleToolClick}
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.tsx
index 0db830f809..74280e4f89 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.tsx
@@ -18,7 +18,7 @@ import InputAdornment from '@mui/material/InputAdornment';
 import TextField from '@mui/material/TextField';
 import { useState } from 'react';
 import { PaletteSearchFieldProps, PaletteSearchFieldState } from './PaletteSearchField.types';
-export const PaletteSearchField = ({ onValueChanged, onEscape, onDirectEditClick }: PaletteSearchFieldProps) => {
+export const PaletteSearchField = ({ onValueChanged }: PaletteSearchFieldProps) => {
   const [state, setState] = useState<PaletteSearchFieldState>({ value: '' });
 
   const onChange = (event: React.ChangeEvent<HTMLInputElement>) => {
@@ -30,15 +30,7 @@ export const PaletteSearchField = ({ onValueChanged, onEscape, onDirectEditClick
   const onTextClear = (): void => {
     setState((prevState) => ({ ...prevState, value: '' }));
     onValueChanged('');
-  };
-
-  const handleKeyDown = (event: React.KeyboardEvent<HTMLDivElement>): void => {
-    const { key } = event;
-    if (key === 'Escape' && onEscape) {
-      onEscape();
-    } else if (key === 'F2') {
-      onDirectEditClick();
-    }
+    document.getElementById('palette-search-field')?.focus();
   };
 
   return (
@@ -46,9 +38,9 @@ export const PaletteSearchField = ({ onValueChanged, onEscape, onDirectEditClick
       autoFocus={true}
       value={state.value}
       size="small"
-      onKeyDown={handleKeyDown}
       onClick={(event) => event.stopPropagation()}
       placeholder="Search Tool"
+      id="palette-search-field"
       InputProps={{
         disableUnderline: true,
         startAdornment: (
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.types.ts b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.types.ts
index 87741e8829..03f0bc13ec 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.types.ts
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/search/PaletteSearchField.types.ts
@@ -13,8 +13,6 @@
 
 export interface PaletteSearchFieldProps {
   onValueChanged: (newValue: string) => void;
-  onEscape?: () => void;
-  onDirectEditClick: () => void;
 }
 
 export interface PaletteSearchFieldState {
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolList.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolList.tsx
index 8d6a50d62e..86a7756c50 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolList.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolList.tsx
@@ -82,6 +82,7 @@ export const PaletteToolList = ({ palette, onToolClick }: PaletteToolListProps)
 
   const onBackToMainList = () => {
     setState((prevState) => ({ ...prevState, toolSection: null }));
+    document.getElementById('palette')?.focus();
   };
 
   const listItemsRendered = palette.paletteEntries.flatMap((paletteEntry: GQLPaletteEntry) => {
diff --git a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolSectionList.tsx b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolSectionList.tsx
index 70036acf81..91a8f84f5e 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolSectionList.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams/src/renderer/palette/tool-list/PaletteToolSectionList.tsx
@@ -63,7 +63,8 @@ export const PaletteToolSectionList = ({ toolSection, onToolClick, onBackToMainL
         <ListItemButton
           className={classes.toolListItemButton}
           onClick={handleBackToMainListClick}
-          data-testid={`back-${toolSection.label}`}>
+          data-testid={`back-${toolSection.label}`}
+          autoFocus={true}>
           <NavigateBeforeIcon />
           <ListItemText className={classes.sectionTitleListItemText} primary={toolSection.label} />
         </ListItemButton>