--- a/browser/components/places/content/controller.js
+++ b/browser/components/places/content/controller.js
@@ -1091,17 +1091,17 @@ PlacesController.prototype = {
     // Track the exected action in the xferable.  This must be the last flavor
     // since it's the least preferred one.
     // Enqueue a unique instance identifier to distinguish operations across
     // concurrent instances of the application.
     addData(PlacesUtils.TYPE_X_MOZ_PLACE_ACTION, aAction + "," + this.profileName);
 
     if (hasData) {
       this.clipboard.setData(xferable,
-                             this.cutNodes.length > 0 ? this : null,
+                             aAction == "cut" ? this : null,
                              Ci.nsIClipboard.kGlobalClipboard);
     }
   },
 
   _cutNodes: [],
   get cutNodes() {
     return this._cutNodes;
   },

--- a/browser/components/places/tests/browser/browser.ini
+++ b/browser/components/places/tests/browser/browser.ini
@@ -65,16 +65,18 @@ subsuite = clipboard
 [browser_library_panel_leak.js]
 [browser_library_search.js]
 [browser_library_views_liveupdate.js]
 [browser_markPageAsFollowedLink.js]
 [browser_panelview_bookmarks_delete.js]
 [browser_paste_bookmarks.js]
 subsuite = clipboard
 [browser_paste_into_tags.js]
+[browser_paste_resets_cut_highlights.js]
+subsuite = clipboard
 [browser_remove_bookmarks.js]
 subsuite = clipboard
 [browser_sidebar_open_bookmarks.js]
 [browser_sidebarpanels_click.js]
 skip-if = (os == "mac" && debug) # Bug 1423667
 [browser_sort_in_library.js]
 [browser_stayopenmenu.js]
 skip-if = os == "mac" && debug # bug 1400323

new file mode 100644
--- /dev/null
+++ b/browser/components/places/tests/browser/browser_paste_resets_cut_highlights.js
@@ -0,0 +1,88 @@
+/* Any copyright is dedicated to the Public Domain.
+ * http://creativecommons.org/publicdomain/zero/1.0/ */
+
+"use strict";
+
+const TEST_URL = "http://example.com/";
+const TEST_URL1 = "https://example.com/otherbrowser/";
+
+var PlacesOrganizer;
+var ContentTree;
+
+add_task(async function setup() {
+  await PlacesUtils.bookmarks.eraseEverything();
+  let organizer = await promiseLibrary();
+
+  registerCleanupFunction(async function() {
+    await promiseLibraryClosed(organizer);
+    await PlacesUtils.bookmarks.eraseEverything();
+  });
+
+  PlacesOrganizer = organizer.PlacesOrganizer;
+  ContentTree = organizer.ContentTree;
+});
+
+add_task(async function paste() {
+  info("Selecting BookmarksToolbar in the left pane");
+  PlacesOrganizer.selectLeftPaneBuiltIn("BookmarksToolbar");
+
+  let bookmarks = await PlacesUtils.bookmarks.insertTree({
+    guid: PlacesUtils.bookmarks.toolbarGuid,
+    children: [{
+      url: TEST_URL,
+      title: "0",
+    }, {
+      url: TEST_URL1,
+      title: "1",
+    }]
+  });
+
+  Assert.equal(ContentTree.view.view.rowCount, 2,
+    "Should have the right amount of items in the view");
+
+  ContentTree.view.selectItems([bookmarks[0].guid]);
+
+  await promiseClipboard(() => {
+    info("Cutting selection");
+    ContentTree.view.controller.cut();
+  }, PlacesUtils.TYPE_X_MOZ_PLACE);
+
+  assertItemsHighlighted(1);
+
+  ContentTree.view.selectItems([bookmarks[1].guid]);
+
+  info("Pasting clipboard");
+  await ContentTree.view.controller.paste();
+
+  assertItemsHighlighted(0);
+
+  // And now repeat the other way around to make sure.
+
+  await promiseClipboard(() => {
+    info("Cutting selection");
+    ContentTree.view.controller.cut();
+  }, PlacesUtils.TYPE_X_MOZ_PLACE);
+
+  assertItemsHighlighted(1);
+
+  ContentTree.view.selectItems([bookmarks[0].guid]);
+
+  info("Pasting clipboard");
+  await ContentTree.view.controller.paste();
+
+  assertItemsHighlighted(0);
+});
+
+function assertItemsHighlighted(expectedItems) {
+  let column = ContentTree.view.view._tree.columns[0];
+  // Check the properties of the cells to make sure nothing has a cut highlight.
+  let highlighedItems = 0;
+  for (let i = 0; i < ContentTree.view.view.rowCount; i++) {
+    if (ContentTree.view.view.getCellProperties(i, column).includes("cutting")) {
+      highlighedItems++;
+    }
+  }
+
+  Assert.equal(highlighedItems, expectedItems,
+    "Should have the correct amount of items highlighed");
+}