diff --git a/build/ng-tags-input.css b/build/ng-tags-input.css
index 6ae3d4ff..09700f8c 100644
--- a/build/ng-tags-input.css
+++ b/build/ng-tags-input.css
@@ -26,6 +26,13 @@
     font-size: 14px;
 }
 
+.ngTagsInput .tags.focused {
+    outline: none;
+    -webkit-box-shadow: 0px 0px 3px 1px rgba(5,139,242,0.6);
+    -moz-box-shadow: 0px 0px 3px 1px rgba(5,139,242,0.6);
+    box-shadow: 0px 0px 3px 1px rgba(5,139,242,0.6);
+}
+
 .ngTagsInput .tags ul {
     margin: 0px;
     padding: 0px;
diff --git a/build/ng-tags-input.js b/build/ng-tags-input.js
index c4ccab26..d97f933b 100644
--- a/build/ng-tags-input.js
+++ b/build/ng-tags-input.js
@@ -69,7 +69,7 @@ angular.module('tags-input').directive('tagsInput', ["$timeout","$document","con
         replace: false,
         transclude: true,
         template: '<div class="ngTagsInput" tabindex="-1" ng-class="options.customClass" transclude-append>' +
-                  '  <div class="tags">' +
+                  '  <div class="tags" ng-class="{focused: hasFocus}">' +
                   '    <ul>' +
                   '      <li ng-repeat="tag in tags" ng-class="getCssClass($index)">' +
                   '        <span>{{ tag }}</span>' +
@@ -237,17 +237,24 @@ angular.module('tags-input').directive('tagsInput', ["$timeout","$document","con
                         }
                     }
                 })
-                .on('blur', function() {
-                    if (!scope.options.addOnBlur) {
+                .on('focus', function() {
+                    if (scope.hasFocus) {
                         return;
                     }
-
+                    scope.hasFocus = true;
+                    scope.$apply();
+                })
+                .on('blur', function() {
                     $timeout(function() {
                         var parentElement = angular.element($document[0].activeElement).parent();
-                        if (parentElement[0] !== element[0] && scope.tryAdd()) {
+                        if (parentElement[0] !== element[0]) {
+                            scope.hasFocus = false;
+                            if (scope.options.addOnBlur) {
+                                scope.tryAdd();
+                            }
                             scope.$apply();
                         }
-                    }, 0);
+                    }, 0, false);
                 });
 
             element.find('div').on('click', function() {
diff --git a/build/ng-tags-input.min.zip b/build/ng-tags-input.min.zip
index 7af94720..ea009b44 100644
Binary files a/build/ng-tags-input.min.zip and b/build/ng-tags-input.min.zip differ
diff --git a/build/ng-tags-input.zip b/build/ng-tags-input.zip
index 4cc27618..ae14e629 100644
Binary files a/build/ng-tags-input.zip and b/build/ng-tags-input.zip differ
diff --git a/css/tags-input.css b/css/tags-input.css
index 40fd4bcc..30d1b0bd 100644
--- a/css/tags-input.css
+++ b/css/tags-input.css
@@ -26,6 +26,13 @@
     font-size: 14px;
 }
 
+.ngTagsInput .tags.focused {
+    outline: none;
+    -webkit-box-shadow: 0px 0px 3px 1px rgba(5,139,242,0.6);
+    -moz-box-shadow: 0px 0px 3px 1px rgba(5,139,242,0.6);
+    box-shadow: 0px 0px 3px 1px rgba(5,139,242,0.6);
+}
+
 .ngTagsInput .tags ul {
     margin: 0px;
     padding: 0px;
diff --git a/src/tags-input.js b/src/tags-input.js
index b61d9c6d..cc32cf3b 100644
--- a/src/tags-input.js
+++ b/src/tags-input.js
@@ -58,7 +58,7 @@ angular.module('tags-input').directive('tagsInput', function($timeout, $document
         replace: false,
         transclude: true,
         template: '<div class="ngTagsInput" tabindex="-1" ng-class="options.customClass" transclude-append>' +
-                  '  <div class="tags">' +
+                  '  <div class="tags" ng-class="{focused: hasFocus}">' +
                   '    <ul>' +
                   '      <li ng-repeat="tag in tags" ng-class="getCssClass($index)">' +
                   '        <span>{{ tag }}</span>' +
@@ -226,17 +226,24 @@ angular.module('tags-input').directive('tagsInput', function($timeout, $document
                         }
                     }
                 })
-                .on('blur', function() {
-                    if (!scope.options.addOnBlur) {
+                .on('focus', function() {
+                    if (scope.hasFocus) {
                         return;
                     }
-
+                    scope.hasFocus = true;
+                    scope.$apply();
+                })
+                .on('blur', function() {
                     $timeout(function() {
                         var parentElement = angular.element($document[0].activeElement).parent();
-                        if (parentElement[0] !== element[0] && scope.tryAdd()) {
+                        if (parentElement[0] !== element[0]) {
+                            scope.hasFocus = false;
+                            if (scope.options.addOnBlur) {
+                                scope.tryAdd();
+                            }
                             scope.$apply();
                         }
-                    }, 0);
+                    }, 0, false);
                 });
 
             element.find('div').on('click', function() {
diff --git a/test/tags-input.spec.js b/test/tags-input.spec.js
index 8a96ac44..f99bb648 100644
--- a/test/tags-input.spec.js
+++ b/test/tags-input.spec.js
@@ -151,6 +151,77 @@ describe('tags-input-directive', function() {
             expect(element.find('div').hasClass('myClass')).toBe(true);
         });
     });
+
+    describe('focus outline', function() {
+        beforeEach(function() {
+            compile();
+        });
+
+        it('outlines the tags div when the focused property is true', function() {
+            // Arrange
+            isolateScope.hasFocus = true;
+
+            // Act
+            $scope.$digest();
+
+            // Assert
+            expect(element.find('div.tags').hasClass('focused')).toBe(true);
+        });
+
+        it('does not outline the tags div when the focused property is false', function() {
+            // Arrange
+            isolateScope.hasFocus = false;
+
+            // Act
+            $scope.$digest();
+
+            // Assert
+            expect(element.find('div.tags').hasClass('focused')).toBe(false);
+        });
+
+        it('sets the focused property to true when the input field gains focus', function() {
+            // Arrange
+            isolateScope.hasFocus = false;
+            spyOn($scope, '$digest');
+
+            // Act
+            getInput().triggerHandler('focus');
+
+            // Assert
+            expect(isolateScope.hasFocus).toBe(true);
+            expect($scope.$digest).toHaveBeenCalled();
+        });
+
+        it('sets the focused property to false when the input field loses focus', function() {
+            // Arrange
+            var body = $document.find('body');
+            body.append(element);
+            body.focus();
+
+            isolateScope.hasFocus = true;
+            spyOn($scope, '$digest');
+
+            // Act
+            getInput().triggerHandler('blur');
+            $timeout.flush();
+
+            // Assert
+            expect(isolateScope.hasFocus).toBe(false);
+            expect($scope.$digest).toHaveBeenCalled();
+        });
+
+        it('does not trigger a digest cycle when the input field is focused already', function() {
+            // Arrange
+            isolateScope.hasFocus = true;
+            spyOn($scope, '$digest');
+
+            // Act
+            getInput().triggerHandler('focus');
+
+            // Assert
+            expect($scope.$digest).not.toHaveBeenCalled();
+        });
+    });
     
     describe('tabindex option', function() {
         it('sets the input field tab index', function() {
@@ -371,24 +442,22 @@ describe('tags-input-directive', function() {
         });
 
         describe('option is true', function() {
-            var anotherElement;
+            var body;
 
             beforeEach(function() {
                 compile('add-on-blur="true"');
-                anotherElement = angular.element('<div></div>');
 
-                $document.find('body')
-                    .append(element)
-                    .append(anotherElement);
+                body = $document.find('body');
+                body.append(element);
             });
 
             it('adds a tag when the input field loses focus to any element on the page but the directive itself', function() {
                 // Arrange
                 isolateScope.newTag = 'foo';
-                anotherElement[0].focus();
+                body.focus();
 
                 // Act
-                getInput().trigger('blur');
+                getInput().triggerHandler('blur');
                 $timeout.flush();
 
                 // Assert
@@ -398,10 +467,10 @@ describe('tags-input-directive', function() {
             it('does not add a tag when the input field loses focus to the directive itself', function() {
                 // Arrange
                 isolateScope.newTag = 'foo';
-                element.find('div')[0].focus();
+                element.find('div').focus();
 
                 // Act
-                getInput().trigger('blur');
+                getInput().triggerHandler('blur');
                 $timeout.flush();
 
                 // Assert
@@ -416,7 +485,7 @@ describe('tags-input-directive', function() {
                 isolateScope.newTag = 'foo';
 
                 // Act
-                getInput().trigger('blur');
+                getInput().triggerHandler('blur');
 
                 // Assert
                 expect($scope.tags).toEqual([]);
diff --git a/test/test-page.html b/test/test-page.html
index d07a3dc0..35a955c1 100644
--- a/test/test-page.html
+++ b/test/test-page.html
@@ -10,7 +10,7 @@
   <tags-input ng-model="tags"
               placeholder="{{ placeholder.value }}"
               replace-spaces-with-dashes="false"
-    add-on-blur="false">
+              add-on-blur="true">
     <auto-complete source="loadItems($query)"
                    debounce-delay="0"
                    min-length="1"