diff --git a/editor/editor_settings.cpp b/editor/editor_settings.cpp
index a246249cfe3..a49d4489ed7 100644
--- a/editor/editor_settings.cpp
+++ b/editor/editor_settings.cpp
@@ -765,7 +765,7 @@ void EditorSettings::_load_defaults(Ref<ConfigFile> p_extra_config) {
 	EDITOR_SETTING_BASIC(Variant::COLOR, PROPERTY_HINT_NONE, "editors/3d/secondary_grid_color", Color(0.38, 0.38, 0.38, 0.5), "")
 
 	// Use a similar color to the 2D editor selection.
-	EDITOR_SETTING_USAGE(Variant::COLOR, PROPERTY_HINT_NONE, "editors/3d/selection_box_color", Color(1.0, 0.5, 0), "", PROPERTY_USAGE_DEFAULT | PROPERTY_USAGE_RESTART_IF_CHANGED)
+	EDITOR_SETTING_USAGE(Variant::COLOR, PROPERTY_HINT_NONE, "editors/3d/selection_box_color", Color(1.0, 0.5, 0), "", PROPERTY_USAGE_DEFAULT)
 	EDITOR_SETTING_USAGE(Variant::COLOR, PROPERTY_HINT_NONE, "editors/3d_gizmos/gizmo_colors/instantiated", Color(0.7, 0.7, 0.7, 0.6), "", PROPERTY_USAGE_DEFAULT | PROPERTY_USAGE_RESTART_IF_CHANGED)
 	EDITOR_SETTING_USAGE(Variant::COLOR, PROPERTY_HINT_NONE, "editors/3d_gizmos/gizmo_colors/joint", Color(0.5, 0.8, 1), "", PROPERTY_USAGE_DEFAULT | PROPERTY_USAGE_RESTART_IF_CHANGED)
 	EDITOR_SETTING_USAGE(Variant::COLOR, PROPERTY_HINT_NONE, "editors/3d_gizmos/gizmo_colors/aabb", Color(0.28, 0.8, 0.82), "", PROPERTY_USAGE_DEFAULT | PROPERTY_USAGE_RESTART_IF_CHANGED)
diff --git a/editor/plugins/node_3d_editor_plugin.cpp b/editor/plugins/node_3d_editor_plugin.cpp
index 058adbdb197..269188317eb 100644
--- a/editor/plugins/node_3d_editor_plugin.cpp
+++ b/editor/plugins/node_3d_editor_plugin.cpp
@@ -6380,22 +6380,20 @@ void Node3DEditor::_generate_selection_boxes() {
 		st_xray->add_vertex(b);
 	}
 
-	Ref<StandardMaterial3D> mat = memnew(StandardMaterial3D);
-	mat->set_shading_mode(StandardMaterial3D::SHADING_MODE_UNSHADED);
-	mat->set_flag(StandardMaterial3D::FLAG_DISABLE_FOG, true);
+	selection_box_mat->set_shading_mode(StandardMaterial3D::SHADING_MODE_UNSHADED);
+	selection_box_mat->set_flag(StandardMaterial3D::FLAG_DISABLE_FOG, true);
 	const Color selection_box_color = EDITOR_GET("editors/3d/selection_box_color");
-	mat->set_albedo(selection_box_color);
-	mat->set_transparency(StandardMaterial3D::TRANSPARENCY_ALPHA);
-	st->set_material(mat);
+	selection_box_mat->set_albedo(selection_box_color);
+	selection_box_mat->set_transparency(StandardMaterial3D::TRANSPARENCY_ALPHA);
+	st->set_material(selection_box_mat);
 	selection_box = st->commit();
 
-	Ref<StandardMaterial3D> mat_xray = memnew(StandardMaterial3D);
-	mat_xray->set_shading_mode(StandardMaterial3D::SHADING_MODE_UNSHADED);
-	mat_xray->set_flag(StandardMaterial3D::FLAG_DISABLE_FOG, true);
-	mat_xray->set_flag(StandardMaterial3D::FLAG_DISABLE_DEPTH_TEST, true);
-	mat_xray->set_albedo(selection_box_color * Color(1, 1, 1, 0.15));
-	mat_xray->set_transparency(StandardMaterial3D::TRANSPARENCY_ALPHA);
-	st_xray->set_material(mat_xray);
+	selection_box_mat_xray->set_shading_mode(StandardMaterial3D::SHADING_MODE_UNSHADED);
+	selection_box_mat_xray->set_flag(StandardMaterial3D::FLAG_DISABLE_FOG, true);
+	selection_box_mat_xray->set_flag(StandardMaterial3D::FLAG_DISABLE_DEPTH_TEST, true);
+	selection_box_mat_xray->set_albedo(selection_box_color * Color(1, 1, 1, 0.15));
+	selection_box_mat_xray->set_transparency(StandardMaterial3D::TRANSPARENCY_ALPHA);
+	st_xray->set_material(selection_box_mat_xray);
 	selection_box_xray = st_xray->commit();
 }
 
@@ -8224,8 +8222,15 @@ void Node3DEditor::_notification(int p_what) {
 		} break;
 
 		case EditorSettings::NOTIFICATION_EDITOR_SETTINGS_CHANGED: {
-			// Update grid color by rebuilding grid.
 			if (EditorSettings::get_singleton()->check_changed_settings_in_group("editors/3d")) {
+				const Color selection_box_color = EDITOR_GET("editors/3d/selection_box_color");
+
+				if (selection_box_color != selection_box_mat->get_albedo()) {
+					selection_box_mat->set_albedo(selection_box_color);
+					selection_box_mat_xray->set_albedo(selection_box_color * Color(1, 1, 1, 0.15));
+				}
+
+				// Update grid color by rebuilding grid.
 				_finish_grid();
 				_init_grid();
 			}
diff --git a/editor/plugins/node_3d_editor_plugin.h b/editor/plugins/node_3d_editor_plugin.h
index 27c709fb064..faa82407ac1 100644
--- a/editor/plugins/node_3d_editor_plugin.h
+++ b/editor/plugins/node_3d_editor_plugin.h
@@ -696,6 +696,10 @@ private:
 
 	Ref<ArrayMesh> selection_box_xray;
 	Ref<ArrayMesh> selection_box;
+
+	Ref<StandardMaterial3D> selection_box_mat = memnew(StandardMaterial3D);
+	Ref<StandardMaterial3D> selection_box_mat_xray = memnew(StandardMaterial3D);
+
 	RID indicators;
 	RID indicators_instance;
 	RID cursor_mesh;