diff --git a/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js b/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js
index 6f56eb2392..32154de6c1 100644
--- a/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js
+++ b/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js
@@ -357,6 +357,7 @@ function RemoteFunctions(config = {}) {
             // Container div — sized to the margin box so all rects fit inside it
             const div = window.document.createElement("div");
             div.className = GLOBALS.HIGHLIGHT_CLASSNAME;
+            div.setAttribute(GLOBALS.PHCODE_INTERNAL_ATTR, "true");
             div.trackingElement = element;
             const divStyle = div.style;
             divStyle.position = "absolute";
@@ -1218,8 +1219,12 @@ function RemoteFunctions(config = {}) {
             SHARED_STATE._hotCorner.updateState(config.mode === 'preview', true);
         }
 
+        // Clear highlights when sync is turned off
+        const syncTurnedOff = oldConfig.syncSourceAndPreview !== false &&
+            config.syncSourceAndPreview === false;
+
         // Handle configuration changes
-        if (highlightModeChanged || isModeChanged) {
+        if (highlightModeChanged || isModeChanged || syncTurnedOff) {
             _handleConfigurationChange();
         }
 
@@ -1228,8 +1233,8 @@ function RemoteFunctions(config = {}) {
         // doesn't clear the element highlighting.
         const selectedBeforeReregister = previouslySelectedElement;
         registerHandlers();
-        if (!isModeChanged && !highlightModeChanged && selectedBeforeReregister
-            && config.mode === 'edit') {
+        if (!isModeChanged && !highlightModeChanged && !syncTurnedOff
+            && selectedBeforeReregister && config.mode === 'edit') {
             // Restore the click highlight for the previously selected element
             if (!_clickHighlight) {
                 _clickHighlight = new Highlight(true);
diff --git a/src/extensionsIntegrated/Phoenix-live-preview/LivePreviewSettings.js b/src/extensionsIntegrated/Phoenix-live-preview/LivePreviewSettings.js
index 8fa32929fd..4b79fe124b 100644
--- a/src/extensionsIntegrated/Phoenix-live-preview/LivePreviewSettings.js
+++ b/src/extensionsIntegrated/Phoenix-live-preview/LivePreviewSettings.js
@@ -62,7 +62,8 @@ define(function (require, exports, module) {
     const SUPPORTED_FRAMEWORKS = {};
     SUPPORTED_FRAMEWORKS[FRAMEWORK_DOCUSAURUS] = {configFile: "docusaurus.config.js", hotReloadSupported: true};
 
-    const PREFERENCE_SHOW_LIVE_PREVIEW_PANEL = "livePreviewShowAtStartup",
+    const PREFERENCE_LINK_EDITOR_AND_PREVIEW = "livePreviewSyncSourceAndPreview",
+        PREFERENCE_SHOW_LIVE_PREVIEW_PANEL = "livePreviewShowAtStartup",
         PREFERENCE_PROJECT_SERVER_ENABLED = "livePreviewUseDevServer",
         PREFERENCE_PROJECT_SERVER_URL = "livePreviewServerURL",
         PREFERENCE_PROJECT_SERVER_PATH = "livePreviewServerProjectPath",
@@ -122,7 +123,9 @@ define(function (require, exports, module) {
                 {"settings": currentSettings, "Strings": Strings}));
 
             // Select the correct theme.
-            const $livePreviewServerURL = $template.find("#livePreviewServerURL"),
+            const $linkEditorAndPreviewChk = $template.find("#linkEditorAndPreviewChk"),
+                $linkEditorAndPreviewInfo = $template.find("#linkEditorAndPreviewInfo"),
+                $livePreviewServerURL = $template.find("#livePreviewServerURL"),
                 $enableCustomServerChk = $template.find("#enableCustomServerChk"),
                 $showLivePreviewAtStartup = $template.find("#showLivePreviewAtStartupChk"),
                 $serveRoot = $template.find("#serveRoot"),
@@ -133,6 +136,13 @@ define(function (require, exports, module) {
                 $frameworkSelect = $template.find("#frameworkSelect");
 
             // Initialize form values from preferences
+            $linkEditorAndPreviewChk.prop(
+                'checked', PreferencesManager.get(PREFERENCE_LINK_EDITOR_AND_PREVIEW) !== false
+            );
+            $linkEditorAndPreviewInfo.on("click", function(e) {
+                e.preventDefault();
+                Phoenix.app.openURLInDefaultBrowser("https://docs.phcode.dev");
+            });
             $enableCustomServerChk.prop('checked', PreferencesManager.get(PREFERENCE_PROJECT_SERVER_ENABLED));
             $showLivePreviewAtStartup.prop('checked', PreferencesManager.get(PREFERENCE_SHOW_LIVE_PREVIEW_PANEL));
             $hotReloadChk.prop('checked', !!PreferencesManager.get(PREFERENCE_PROJECT_SERVER_HOT_RELOAD_SUPPORTED));
@@ -174,6 +184,7 @@ define(function (require, exports, module) {
             Metrics.countEvent(Metrics.EVENT_TYPE.LIVE_PREVIEW, "settings", "dialog");
             Dialogs.showModalDialogUsingTemplate($template).done(function (id) {
                 if (id === Dialogs.DIALOG_BTN_OK) {
+                    PreferencesManager.set(PREFERENCE_LINK_EDITOR_AND_PREVIEW, $linkEditorAndPreviewChk.is(":checked"));
                     PreferencesManager.set(PREFERENCE_SHOW_LIVE_PREVIEW_PANEL, $showLivePreviewAtStartup.is(":checked"));
                     _saveProjectPreferences($enableCustomServerChk.is(":checked"), $livePreviewServerURL.val(),
                         $serveRoot.val(), $hotReloadChk.is(":checked"), $frameworkSelect.val());
diff --git a/src/extensionsIntegrated/Phoenix-live-preview/livePreviewSettings.html b/src/extensionsIntegrated/Phoenix-live-preview/livePreviewSettings.html
index ad3cd9aa89..60d4efc13f 100644
--- a/src/extensionsIntegrated/Phoenix-live-preview/livePreviewSettings.html
+++ b/src/extensionsIntegrated/Phoenix-live-preview/livePreviewSettings.html
@@ -8,6 +8,11 @@ <h1 class="dialog-title">{{Strings.LIVE_DEV_SETTINGS_TITLE}}</h1>
                 <input type="checkbox" class="form-check-input" id="showLivePreviewAtStartupChk" style="margin-top: -2px;">
                 <label class="form-check-label" for="showLivePreviewAtStartupChk" style="display: inline">{{Strings.LIVE_DEV_SETTINGS_STARTUP}}</label>
             </div>
+            <div class="form-group form-check" style="margin-top: 9px;">
+                <input type="checkbox" class="form-check-input" id="linkEditorAndPreviewChk" style="margin-top: -2px;">
+                <label class="form-check-label" for="linkEditorAndPreviewChk" style="display: inline">{{Strings.LIVE_PREVIEW_LINK_EDITOR_AND_PREVIEW}}</label>
+                <a href="#" id="linkEditorAndPreviewInfo" title="{{Strings.LIVE_DEV_SETTINGS_LINK_EDITOR_AND_PREVIEW_PREFERENCE}}" style="margin-left: 4px; color: var(--content-color-weaker); text-decoration: none;"><i class="fa-solid fa-info-circle"></i></a>
+            </div>
             <div class="form-group" style="margin-top: 9px;">
                 <input id="enableCustomServerChk" type="checkbox" class="form-check-input" style="margin-top: -1px;">
                 <label id="enableCustomServerLabel" class="form-check-label" for="enableCustomServerChk" style="display: inline">{{Strings.LIVE_DEV_SETTINGS_USE_SERVER}}</label>
diff --git a/src/extensionsIntegrated/Phoenix-live-preview/main.js b/src/extensionsIntegrated/Phoenix-live-preview/main.js
index 6e83af37fc..e66116f4f2 100644
--- a/src/extensionsIntegrated/Phoenix-live-preview/main.js
+++ b/src/extensionsIntegrated/Phoenix-live-preview/main.js
@@ -111,16 +111,16 @@ define(function (require, exports, module) {
         description: Strings.LIVE_DEV_SETTINGS_SHOW_RULER_LINES_PREFERENCE
     });
 
-    // live preview spacing handles preference (show/hide spacing handles on element selection)
-    const PREFERENCE_SHOW_SPACING_HANDLES = CONSTANTS.PREFERENCE_SHOW_SPACING_HANDLES;
-    PreferencesManager.definePreference(PREFERENCE_SHOW_SPACING_HANDLES, "boolean", true, {
-        description: Strings.LIVE_DEV_SETTINGS_SHOW_SPACING_HANDLES_PREFERENCE
-    });
+    // Spacing handles preference disabled for this release (incomplete feature).
+    // const PREFERENCE_SHOW_SPACING_HANDLES = CONSTANTS.PREFERENCE_SHOW_SPACING_HANDLES;
+    // PreferencesManager.definePreference(PREFERENCE_SHOW_SPACING_HANDLES, "boolean", true, {
+    //     description: Strings.LIVE_DEV_SETTINGS_SHOW_SPACING_HANDLES_PREFERENCE
+    // });
 
-    // live preview sync source and preview preference
+    // live preview link editor and preview preference
     const PREFERENCE_LIVE_PREVIEW_SYNC = CONSTANTS.PREFERENCE_LIVE_PREVIEW_SYNC;
     PreferencesManager.definePreference(PREFERENCE_LIVE_PREVIEW_SYNC, "boolean", true, {
-        description: Strings.LIVE_DEV_SETTINGS_SYNC_SOURCE_AND_PREVIEW_PREFERENCE
+        description: Strings.LIVE_DEV_SETTINGS_LINK_EDITOR_AND_PREVIEW_PREFERENCE
     });
 
     const LIVE_PREVIEW_PANEL_ID = "live-preview-panel";
@@ -382,25 +382,18 @@ define(function (require, exports, module) {
     function _showModeSelectionDropdown(event) {
         const isEditFeaturesActive = isProEditUser;
         const currentMode = LiveDevelopment.getCurrentMode();
-        const isNotPreviewMode = currentMode !== LiveDevelopment.CONSTANTS.LIVE_PREVIEW_MODE;
         const items = [
             Strings.LIVE_PREVIEW_MODE_PREVIEW,
             Strings.LIVE_PREVIEW_MODE_HIGHLIGHT,
             Strings.LIVE_PREVIEW_MODE_EDIT
         ];
 
-        // Add sync toggle for highlight and edit modes
-        if (isNotPreviewMode) {
-            items.push("---");
-            items.push(Strings.LIVE_PREVIEW_SYNC_SOURCE_AND_PREVIEW);
-        }
-
         // Only add edit-specific options when in edit mode and edit features are active
         const isEditMode = currentMode === LiveDevelopment.CONSTANTS.LIVE_EDIT_MODE;
         if (isEditFeaturesActive && isEditMode) {
+            items.push("---");
             items.push(Strings.LIVE_PREVIEW_EDIT_HIGHLIGHT_ON);
             items.push(Strings.LIVE_PREVIEW_SHOW_RULER_LINES);
-            items.push(Strings.LIVE_PREVIEW_SHOW_SPACING_HANDLES);
         }
 
         $dropdown = new DropdownButton.DropdownButton("", items, function(item, index) {
@@ -420,12 +413,6 @@ define(function (require, exports, module) {
                     html: `${checkmark}${item}${crownIcon}`,
                     enabled: true
                 };
-            } else if (item === Strings.LIVE_PREVIEW_SYNC_SOURCE_AND_PREVIEW) {
-                const isEnabled = PreferencesManager.get(PREFERENCE_LIVE_PREVIEW_SYNC) !== false;
-                if(isEnabled) {
-                    return `✓ ${Strings.LIVE_PREVIEW_SYNC_SOURCE_AND_PREVIEW}`;
-                }
-                return `${'\u00A0'.repeat(4)}${Strings.LIVE_PREVIEW_SYNC_SOURCE_AND_PREVIEW}`;
             } else if (item === Strings.LIVE_PREVIEW_EDIT_HIGHLIGHT_ON) {
                 const isHoverMode =
                     PreferencesManager.get(PREFERENCE_PROJECT_ELEMENT_HIGHLIGHT) === CONSTANTS.HIGHLIGHT_HOVER;
@@ -439,12 +426,6 @@ define(function (require, exports, module) {
                     return `✓ ${Strings.LIVE_PREVIEW_SHOW_RULER_LINES}`;
                 }
                 return `${'\u00A0'.repeat(4)}${Strings.LIVE_PREVIEW_SHOW_RULER_LINES}`;
-            } else if (item === Strings.LIVE_PREVIEW_SHOW_SPACING_HANDLES) {
-                const isEnabled = PreferencesManager.get(PREFERENCE_SHOW_SPACING_HANDLES);
-                if(isEnabled) {
-                    return `✓ ${Strings.LIVE_PREVIEW_SHOW_SPACING_HANDLES}`;
-                }
-                return `${'\u00A0'.repeat(4)}${Strings.LIVE_PREVIEW_SHOW_SPACING_HANDLES}`;
             }
             return item;
         });
@@ -482,11 +463,6 @@ define(function (require, exports, module) {
                         Metrics.countEvent(Metrics.EVENT_TYPE.PRO, "proUpsellDlg", "fail");
                     }
                 }
-            } else if (item === Strings.LIVE_PREVIEW_SYNC_SOURCE_AND_PREVIEW) {
-                // Toggle sync source and preview on/off
-                const currentValue = PreferencesManager.get(PREFERENCE_LIVE_PREVIEW_SYNC);
-                PreferencesManager.set(PREFERENCE_LIVE_PREVIEW_SYNC, currentValue === false);
-                return; // Don't dismiss for this option
             } else if (item === Strings.LIVE_PREVIEW_EDIT_HIGHLIGHT_ON) {
                 // Don't allow edit highlight toggle if edit features are not active
                 if (!isEditFeaturesActive) {
@@ -507,15 +483,6 @@ define(function (require, exports, module) {
                 const currentValue = PreferencesManager.get(PREFERENCE_SHOW_RULER_LINES);
                 PreferencesManager.set(PREFERENCE_SHOW_RULER_LINES, !currentValue);
                 return; // Don't dismiss highlights for this option
-            } else if (item === Strings.LIVE_PREVIEW_SHOW_SPACING_HANDLES) {
-                // Don't allow spacing handles toggle if edit features are not active
-                if (!isEditFeaturesActive) {
-                    return;
-                }
-                // Toggle spacing handles on/off
-                const currentValue = PreferencesManager.get(PREFERENCE_SHOW_SPACING_HANDLES);
-                PreferencesManager.set(PREFERENCE_SHOW_SPACING_HANDLES, !currentValue);
-                return; // Don't dismiss highlights for this option
             }
         });
 
@@ -1448,17 +1415,13 @@ define(function (require, exports, module) {
         PreferencesManager.on("change", PREFERENCE_SHOW_RULER_LINES, function() {
             LiveDevelopment.updateRulerLinesConfig();
         });
-        PreferencesManager.on("change", PREFERENCE_SHOW_SPACING_HANDLES, function() {
-            LiveDevelopment.updateSpacingHandlesConfig();
-        });
         PreferencesManager.on("change", PREFERENCE_LIVE_PREVIEW_SYNC, function() {
             LiveDevelopment.updateSyncConfig();
         });
 
-        // Initialize element highlight, ruler lines, spacing handles, and sync config on startup
+        // Initialize element highlight, ruler lines, and sync config on startup
         LiveDevelopment.updateElementHighlightConfig();
         LiveDevelopment.updateRulerLinesConfig();
-        LiveDevelopment.updateSpacingHandlesConfig();
         LiveDevelopment.updateSyncConfig();
 
         LiveDevelopment.openLivePreview();
diff --git a/src/nls/root/strings.js b/src/nls/root/strings.js
index d757f6b125..4874a2dae9 100644
--- a/src/nls/root/strings.js
+++ b/src/nls/root/strings.js
@@ -530,8 +530,8 @@ define({
     "LIVE_PREVIEW_SHOW_RULER_LINES": "Show Measurements",
     "LIVE_PREVIEW_SHOW_SPACING_HANDLES": "Show Spacing Handles",
     "LIVE_DEV_SETTINGS_SHOW_SPACING_HANDLES_PREFERENCE": "Show spacing handles when elements are selected in live preview edit mode. Defaults to 'true'",
-    "LIVE_PREVIEW_SYNC_SOURCE_AND_PREVIEW": "Sync Code & Preview",
-    "LIVE_DEV_SETTINGS_SYNC_SOURCE_AND_PREVIEW_PREFERENCE": "Sync source code cursor with live preview element highlighting. When enabled, moving the cursor in the editor highlights the corresponding element in the live preview, and clicking an element in the live preview jumps the cursor to its source code. Defaults to 'true'",
+    "LIVE_PREVIEW_LINK_EDITOR_AND_PREVIEW": "Link Editor and Preview",
+    "LIVE_DEV_SETTINGS_LINK_EDITOR_AND_PREVIEW_PREFERENCE": "Link editor cursor with live preview element highlighting. When enabled, moving the cursor in the editor highlights the corresponding element in the live preview, and clicking an element in the live preview jumps the cursor to its source code. Defaults to 'true'",
     "LIVE_PREVIEW_MODE_PREFERENCE": "'{0}' shows only the webpage, '{1}' connects the webpage to your code - click on elements to jump to their code and vice versa, '{2}' provides highlighting along with advanced element manipulation",
     "LIVE_PREVIEW_CONFIGURE_MODES": "Configure Live Preview Modes",