--- a/browser/base/content/browser.css
+++ b/browser/base/content/browser.css
@@ -517,28 +517,16 @@ toolbar:not(#TabsToolbar) > #personal-bo
 
 #urlbar[pageproxystate="invalid"] > #urlbar-icons > .urlbar-icon,
 #urlbar[pageproxystate="invalid"][focused="true"] > #urlbar-go-button ~ toolbarbutton,
 #urlbar[pageproxystate="valid"] > #urlbar-go-button,
 #urlbar:not([focused="true"]) > #urlbar-go-button {
   visibility: collapse;
 }
 
-#urlbar[pageproxystate="invalid"] > #identity-box > #identity-icon-labels {
-  visibility: collapse;
-}
-
-#urlbar[pageproxystate="invalid"] > #identity-box {
-  pointer-events: none;
-}
-
-#urlbar[pageproxystate="invalid"] > #identity-box > #notification-popup-box {
-  pointer-events: auto;
-}
-
 #identity-icon-labels {
   max-width: 18em;
 }
 @media (max-width: 700px) {
   #urlbar-container {
     min-width: 45ch;
   }
   #identity-icon-labels {

--- a/browser/base/content/browser.js
+++ b/browser/base/content/browser.js
@@ -2392,17 +2392,17 @@ function BrowserPageInfo(documentURL, in
 
   // We didn't find a matching window, so open a new one.
   return openDialog("chrome://browser/content/pageinfo/pageInfo.xul", "",
                     "chrome,toolbar,dialog=no,resizable", args);
 }
 
 function URLBarSetURI(aURI) {
   var value = gBrowser.userTypedValue;
-  var valid = false;
+  gURLBar.valueIsTyped = value != null;
 
   if (value == null) {
     let uri = aURI || gBrowser.currentURI;
     // Strip off "wyciwyg://" and passwords for the location bar
     try {
       uri = Services.uriFixup.createExposableURI(uri);
     } catch (e) {}
 
@@ -2417,23 +2417,20 @@ function URLBarSetURI(aURI) {
     } else {
       // We should deal with losslessDecodeURI throwing for exotic URIs
       try {
         value = losslessDecodeURI(uri);
       } catch (ex) {
         value = "about:blank";
       }
     }
-
-    valid = !isBlankPageURL(uri.spec);
   }
 
   gURLBar.value = value;
-  gURLBar.valueIsTyped = !valid;
-  SetPageProxyState(valid ? "valid" : "invalid");
+  SetPageProxyState(gURLBar.valueIsTyped ? "invalid" : "valid");
 }
 
 function losslessDecodeURI(aURI) {
   let scheme = aURI.scheme;
   if (scheme == "moz-action")
     throw new Error("losslessDecodeURI should never get a moz-action URI");
 
   var value = aURI.spec;
@@ -2516,36 +2513,46 @@ function UpdateUrlbarSearchSplitterState
       splitter.setAttribute("overflows", "false");
       splitter.className = "chromeclass-toolbar-additional";
     }
     urlbar.parentNode.insertBefore(splitter, ibefore);
   } else if (splitter)
     splitter.parentNode.removeChild(splitter);
 }
 
-function UpdatePageProxyState()
-{
+function InvalidatePageProxyState() {
   if (gURLBar && gURLBar.value != gLastValidURLStr)
     SetPageProxyState("invalid");
 }
 
+function ValidatePageProxyState() {
+  SetPageProxyState("valid");
+}
+
 function SetPageProxyState(aState)
 {
   if (!gURLBar)
     return;
 
+  // about:blank is always invalid
+  if (isBlankPageURL(gBrowser.currentURI.spec)) {
+    aState = "invalid";
+  }
+
   gURLBar.setAttribute("pageproxystate", aState);
 
   // the page proxy state is set to valid via OnLocationChange, which
   // gets called when we switch tabs.
   if (aState == "valid") {
     gLastValidURLStr = gURLBar.value;
-    gURLBar.addEventListener("input", UpdatePageProxyState, false);
+    gURLBar.addEventListener("input", InvalidatePageProxyState, false);
+    gURLBar.removeEventListener("blur", ValidatePageProxyState, false);
   } else if (aState == "invalid") {
-    gURLBar.removeEventListener("input", UpdatePageProxyState, false);
+    gURLBar.removeEventListener("input", InvalidatePageProxyState, false);
+    gURLBar.addEventListener("blur", ValidatePageProxyState, false);
   }
 }
 
 function PageProxyClickHandler(aEvent)
 {
   if (aEvent.button == 1 && gPrefService.getBoolPref("middlemouse.paste"))
     middleMousePaste(aEvent);
 }

--- a/browser/themes/shared/identity-block/identity-block.inc.css
+++ b/browser/themes/shared/identity-block/identity-block.inc.css
@@ -67,21 +67,19 @@
   width: 16px;
   height: 16px;
 }
 
 #urlbar[pageproxystate="invalid"] > #identity-box > #identity-icon {
   opacity: .3;
 }
 
-#urlbar[actiontype="searchengine"] > #identity-box > #identity-icon {
+#urlbar[pageproxystate="invalid"][actiontype="searchengine"] > #identity-box > #identity-icon {
   -moz-image-region: inherit;
   list-style-image: url(chrome://global/skin/icons/autocomplete-search.svg#search-icon);
-  width: 16px;
-  height: 16px;
 }
 
 /* SHARING ICON */
 
 #sharing-icon {
   width: 16px;
   height: 16px;
   margin-inline-start: -16px;
@@ -96,22 +94,22 @@
 #identity-box[sharing="microphone"] > #sharing-icon {
   list-style-image: url("chrome://browser/skin/notification-icons.svg#microphone-sharing");
 }
 
 #identity-box[sharing="screen"] > #sharing-icon {
   list-style-image: url("chrome://browser/skin/notification-icons.svg#screen-sharing");
 }
 
-#identity-box[sharing] > #sharing-icon {
+#urlbar[pageproxystate="valid"] > #identity-box[sharing] > #sharing-icon {
   display: -moz-box;
   animation-delay: -1.5s;
 }
 
-#identity-box[sharing] > #identity-icon,
+#urlbar[pageproxystate="valid"] > #identity-box[sharing] > #identity-icon,
 #sharing-icon {
   animation: 3s linear pulse infinite;
 }
 
 @keyframes pulse {
   0%, 16.66%, 83.33%, 100% {
     opacity: 0;
   }
@@ -136,16 +134,24 @@
 #tracking-protection-icon:not([state]) {
   margin-inline-end: -18px;
   pointer-events: none;
   opacity: 0;
   /* Only animate the shield in, when it disappears hide it immediately. */
   transition: none;
 }
 
+#urlbar[pageproxystate="invalid"] > #identity-box {
+  pointer-events: none;
+}
+
+#urlbar[pageproxystate="invalid"] > #identity-box > #connection-icon,
+#urlbar[pageproxystate="invalid"] > #identity-box > #identity-icon-labels,
+#urlbar[pageproxystate="invalid"] > #identity-box > #notification-popup-box,
+#urlbar[pageproxystate="invalid"] > #identity-box > #blocked-permissions-container,
 #urlbar[pageproxystate="invalid"] > #identity-box > #tracking-protection-icon {
   visibility: collapse;
 }
 
 /* CONNECTION ICON */
 
 #connection-icon {
   width: 16px;