diff --git a/packages/app/cypress/component/support/ctSupport.ts b/packages/app/cypress/component/support/ctSupport.ts
index 76eb3749b959..737d9a58e0d9 100644
--- a/packages/app/cypress/component/support/ctSupport.ts
+++ b/packages/app/cypress/component/support/ctSupport.ts
@@ -47,6 +47,5 @@ export const createTestAutIframe = (eventManager = createEventManager()) => {
     'Test Project',
     eventManager,
     null, // CypressJQuery, shouldn't be using driver in component tests anyway
-    window.top?.UnifiedRunner.highlight,
   )
 }
diff --git a/packages/app/cypress/e2e/runner/selector-playground.cy.ts b/packages/app/cypress/e2e/runner/selector-playground.cy.ts
new file mode 100644
index 000000000000..992288ab4984
--- /dev/null
+++ b/packages/app/cypress/e2e/runner/selector-playground.cy.ts
@@ -0,0 +1,71 @@
+function launchApp () {
+  cy.scaffoldProject('selector-playground')
+  cy.openProject('selector-playground')
+  cy.startAppServer('e2e')
+  cy.visitApp()
+  cy.get(`[data-cy-row="spec.cy.js"]`).click()
+
+  cy.waitForSpecToFinish()
+}
+
+describe('selector playground', () => {
+  it('highlight the element when hover over it.', () => {
+    launchApp()
+
+    cy.get('[data-cy="playground-activator"]').click()
+
+    const backgroundColor = 'rgba(159, 196, 231, 0.6)'
+
+    cy.getAutIframe().within(() => {
+      cy.get('h1').realHover()
+      cy.get('.__cypress-selector-playground').shadow().within(() => {
+        // Test highlight exists
+        cy.get('.highlight').should('exist')
+        cy.get('.highlight').should('have.css', 'background-color', backgroundColor)
+
+        // Test tooltip text is correct
+        cy.get('.tooltip').should('have.text', 'h1')
+
+        // Test placement of tooltip
+        let highlightTop: any
+        let tooltipTop: any
+
+        cy.get('.highlight').then(($el) => {
+          highlightTop = parseFloat($el.css('top'))
+        })
+
+        cy.get('.tooltip').then(($el) => {
+          tooltipTop = parseFloat($el.css('top'))
+
+          expect(tooltipTop).to.be.greaterThan(highlightTop)
+        })
+      })
+    })
+
+    cy.getAutIframe().within(() => {
+      cy.get('h2').realHover()
+      cy.get('.__cypress-selector-playground').shadow().within(() => {
+        // Test highlight exists
+        cy.get('.highlight').should('exist')
+        cy.get('.highlight').should('have.css', 'background-color', backgroundColor)
+
+        // Test tooltip text is correct
+        cy.get('.tooltip').should('have.text', '[data-cy="h2-contents"]')
+
+        // Test placement of tooltip
+        let highlightTop: any
+        let tooltipTop: any
+
+        cy.get('.highlight').then(($el) => {
+          highlightTop = parseFloat($el.css('top'))
+        })
+
+        cy.get('.tooltip').then(($el) => {
+          tooltipTop = parseFloat($el.css('top'))
+
+          expect(tooltipTop).to.be.lessThan(highlightTop)
+        })
+      })
+    })
+  })
+})
diff --git a/packages/app/src/runner/aut-iframe.ts b/packages/app/src/runner/aut-iframe.ts
index f8fba8d44a93..670181a5ed3b 100644
--- a/packages/app/src/runner/aut-iframe.ts
+++ b/packages/app/src/runner/aut-iframe.ts
@@ -7,6 +7,8 @@ import type { DebouncedFunc } from 'lodash'
 import { useStudioStore } from '../store/studio-store'
 import { getElementDimensions, setOffset } from './dimensions'
 import { getOrCreateHelperDom, getSelectorHighlightStyles, getZIndex, INT32_MAX } from './dom'
+import highlightMounter from './selector-playground/highlight-mounter'
+import Highlight from './selector-playground/Highlight.ce.vue'
 
 // JQuery bundled w/ Cypress
 type $CypressJQuery = any
@@ -22,7 +24,6 @@ export class AutIframe {
     private projectName: string,
     private eventManager: any,
     private $: $CypressJQuery,
-    private highlight: any,
   ) {
     this.debouncedToggleSelectorPlayground = _.debounce(this.toggleSelectorPlayground, 300)
   }
@@ -758,10 +759,10 @@ export class AutIframe {
   private listeners: any[] = []
 
   private _addOrUpdateSelectorPlaygroundHighlight ({ $el, $body, selector, showTooltip, onClick }: any) {
-    const { container, shadowRoot, vueContainer } = getOrCreateHelperDom({
+    const { container, vueContainer } = getOrCreateHelperDom({
       body: $body?.get(0) || document.body,
       className: '__cypress-selector-playground',
-      css: this.highlight.css,
+      css: Highlight.styles[0],
     })
 
     const removeContainerClickListeners = () => {
@@ -773,7 +774,6 @@ export class AutIframe {
     }
 
     if (!$el) {
-      this.highlight.unmount(vueContainer)
       removeContainerClickListeners()
       container.remove()
 
@@ -792,11 +792,6 @@ export class AutIframe {
       }
     }
 
-    this.highlight.render(vueContainer, {
-      selector,
-      appendTo: shadowRoot,
-      showTooltip,
-      styles,
-    })
+    highlightMounter.mount(vueContainer, selector, styles)
   }
 }
diff --git a/packages/app/src/runner/index.ts b/packages/app/src/runner/index.ts
index 7a421b32f647..54b16d42e082 100644
--- a/packages/app/src/runner/index.ts
+++ b/packages/app/src/runner/index.ts
@@ -147,7 +147,6 @@ function setupRunner () {
     'Test Project',
     getEventManager(),
     window.UnifiedRunner.CypressJQuery,
-    window.UnifiedRunner.highlight,
   )
 
   createIframeModel()
diff --git a/packages/app/src/runner/selector-playground/Highlight.ce.vue b/packages/app/src/runner/selector-playground/Highlight.ce.vue
new file mode 100644
index 000000000000..914f3d460281
--- /dev/null
+++ b/packages/app/src/runner/selector-playground/Highlight.ce.vue
@@ -0,0 +1,81 @@
+<template>
+  <div
+    class="highlight"
+    :style="highlightStyle"
+  />
+  <div
+    class="tooltip"
+    :style="tooltipStyle"
+  >
+    <span>{{ selector }}</span>
+    <div
+      class="arrow"
+      :style="arrowStyle"
+    />
+  </div>
+</template>
+
+<script lang="ts" setup>
+import type { StyleValue, CSSProperties } from 'vue'
+
+const props = defineProps <{
+  selector: string
+  style: StyleValue
+}>()
+
+const highlightStyle = props.style as CSSProperties || {}
+const highlightTop = parseFloat(highlightStyle.top as string)
+const highlightLeft = parseFloat(highlightStyle.left as string)
+const highlightHeight = parseFloat(highlightStyle.height as string)
+const placeOnBottom = highlightTop < 35
+
+const tooltipStyle =
+  placeOnBottom
+    ? {
+      top: `${highlightTop + highlightHeight + 10}px`,
+      left: `${highlightLeft}px`,
+    }
+    : {
+      top: `${highlightTop - 33}px`,
+      left: `${highlightLeft}px`,
+    }
+
+const arrowStyle =
+  placeOnBottom
+    ? {
+      left: `8px`,
+      top: `-6px`,
+      transform: 'rotate(0deg)',
+    }
+    : {
+      left: `8px`,
+      top: `24px`,
+      transform: 'rotate(180deg)',
+    }
+</script>
+
+<style>
+.highlight {
+  background: rgba(159, 196, 231, 0.6);
+  border: solid 2px #9FC4E7;
+  cursor: pointer;
+}
+.tooltip {
+  position: absolute;
+  background: #333;
+  border: solid 1px #333;
+  border-radius: 3px;
+  color: #e3e3e3;
+  font-size: 12px;
+  padding: 4px 6px;
+  text-align: center;
+}
+.arrow {
+  position: absolute;
+  width: 0;
+  height: 0;
+  border-style: solid;
+  border-width: 0 6px 6px 6px;
+  border-color: transparent transparent #333 transparent;
+}
+</style>
diff --git a/packages/app/src/runner/selector-playground/HighlightApp.ce.vue b/packages/app/src/runner/selector-playground/HighlightApp.ce.vue
new file mode 100644
index 000000000000..8db516ba9a0e
--- /dev/null
+++ b/packages/app/src/runner/selector-playground/HighlightApp.ce.vue
@@ -0,0 +1,17 @@
+<template>
+  <Highlight
+    v-for="(style, i) in styles"
+    :key="i"
+    :selector="selector"
+    :style="style"
+  />
+</template>
+
+<script lang="ts" setup>
+import Highlight from './Highlight.ce.vue'
+
+defineProps <{
+  selector: string
+  styles: any[]
+}>()
+</script>
diff --git a/packages/app/src/runner/selector-playground/highlight-mounter.ts b/packages/app/src/runner/selector-playground/highlight-mounter.ts
new file mode 100644
index 000000000000..1d229e11b3a2
--- /dev/null
+++ b/packages/app/src/runner/selector-playground/highlight-mounter.ts
@@ -0,0 +1,19 @@
+import { App, createApp } from 'vue'
+import HighlightApp from './HighlightApp.ce.vue'
+
+let app: App<Element> | null = null
+
+export default {
+  mount (container: Element, selector: string, styles: any[]) {
+    if (app) {
+      app.unmount()
+    }
+
+    app = createApp(HighlightApp, {
+      selector,
+      styles,
+    })
+
+    app.mount(container)
+  },
+}
diff --git a/packages/runner/src/selector-playground/css.js b/packages/runner/src/selector-playground/css.js
deleted file mode 100644
index 2dae181f74e6..000000000000
--- a/packages/runner/src/selector-playground/css.js
+++ /dev/null
@@ -1,166 +0,0 @@
-export const css = `
-/**
-* This is a standalone file that gets included with the selector playground
-* highlight in the user's app html
-*/
-.tooltip {
-  background: #333;
-  border: solid 1px #333;
-  border-radius: 3px;
-  color: #e3e3e3;
-  display: inline-block;
-  font-size: 12px;
-  left: 0;
-  max-width: 200px;
-  padding: 4px 6px;
-  text-align: center;
-  top: 0;
-  z-index: 100;
-}
-.tooltip-arrow {
-  height: 0;
-  overflow: hidden;
-  position: absolute;
-  width: 0;
-}
-.tooltip-arrow svg {
-  fill: #333;
-  position: relative;
-  stroke: #333;
-  stroke-width: 1px;
-}
-.tooltip-top,
-.tooltip-top-start,
-.tooltip-top-end,
-.tooltip-bottom.tooltip-flipped,
-.tooltip-bottom-start.tooltip-flipped,
-.tooltip-bottom-end.tooltip-flipped {
-  margin-bottom: 5px;
-}
-.tooltip-top .tooltip-arrow,
-.tooltip-top-start .tooltip-arrow,
-.tooltip-top-end .tooltip-arrow,
-.tooltip-bottom.tooltip-flipped .tooltip-arrow,
-.tooltip-bottom-start.tooltip-flipped .tooltip-arrow,
-.tooltip-bottom-end.tooltip-flipped .tooltip-arrow {
-  top: auto;
-  bottom: -6px;
-  height: 6px;
-  width: 12px;
-}
-.tooltip-top .tooltip-arrow svg,
-.tooltip-top-start .tooltip-arrow svg,
-.tooltip-top-end .tooltip-arrow svg,
-.tooltip-bottom.tooltip-flipped .tooltip-arrow svg,
-.tooltip-bottom-start.tooltip-flipped .tooltip-arrow svg,
-.tooltip-bottom-end.tooltip-flipped .tooltip-arrow svg {
-  top: -5px;
-}
-.tooltip-right,
-.tooltip-right-start,
-.tooltip-right-end,
-.tooltip-left.tooltip-flipped,
-.tooltip-left-start.tooltip-flipped,
-.tooltip-left-end.tooltip-flipped {
-  margin-left: 5px;
-}
-.tooltip-right .tooltip-arrow,
-.tooltip-right-start .tooltip-arrow,
-.tooltip-right-end .tooltip-arrow,
-.tooltip-left.tooltip-flipped .tooltip-arrow,
-.tooltip-left-start.tooltip-flipped .tooltip-arrow,
-.tooltip-left-end.tooltip-flipped .tooltip-arrow {
-  right: auto;
-  left: -6px;
-  height: 12px;
-  width: 6px;
-}
-.tooltip-right svg,
-.tooltip-right-start svg,
-.tooltip-right-end svg,
-.tooltip-left.tooltip-flipped svg,
-.tooltip-left-start.tooltip-flipped svg,
-.tooltip-left-end.tooltip-flipped svg {
-  left: 0;
-}
-.tooltip-left,
-.tooltip-left-start,
-.tooltip-left-end,
-.tooltip-right.tooltip-flipped,
-.tooltip-right-start.tooltip-flipped,
-.tooltip-right-end.tooltip-flipped {
-  margin-right: 5px;
-}
-.tooltip-left .tooltip-arrow,
-.tooltip-left-start .tooltip-arrow,
-.tooltip-left-end .tooltip-arrow,
-.tooltip-right.tooltip-flipped .tooltip-arrow,
-.tooltip-right-start.tooltip-flipped .tooltip-arrow,
-.tooltip-right-end.tooltip-flipped .tooltip-arrow {
-  left: auto;
-  right: -6px;
-  height: 12px;
-  width: 6px;
-}
-.tooltip-left .tooltip-arrow svg,
-.tooltip-left-start .tooltip-arrow svg,
-.tooltip-left-end .tooltip-arrow svg,
-.tooltip-right.tooltip-flipped .tooltip-arrow svg,
-.tooltip-right-start.tooltip-flipped .tooltip-arrow svg,
-.tooltip-right-end.tooltip-flipped .tooltip-arrow svg {
-  left: -5px;
-}
-.tooltip-bottom,
-.tooltip-bottom-start,
-.tooltip-bottom-end,
-.tooltip-top.tooltip-flipped,
-.tooltip-top-start.tooltip-flipped,
-.tooltip-top-end.tooltip-flipped {
-  margin-top: 5px;
-}
-.tooltip-bottom .tooltip-arrow,
-.tooltip-bottom-start .tooltip-arrow,
-.tooltip-bottom-end .tooltip-arrow,
-.tooltip-top.tooltip-flipped .tooltip-arrow,
-.tooltip-top-start.tooltip-flipped .tooltip-arrow,
-.tooltip-top-end.tooltip-flipped .tooltip-arrow {
-  bottom: auto;
-  height: 6px;
-  top: -6px;
-  width: 12px;
-}
-.tooltip-bottom svg,
-.tooltip-bottom-start svg,
-.tooltip-bottom-end svg,
-.tooltip-top.tooltip-flipped svg,
-.tooltip-top-start.tooltip-flipped svg,
-.tooltip-top-end.tooltip-flipped svg {
-  top: 0;
-}
-.tooltip-top-start .tooltip-arrow,
-.tooltip-bottom-start .tooltip-arrow {
-  left: 0;
-}
-.tooltip-top-end .tooltip-arrow,
-.tooltip-bottom-end .tooltip-arrow {
-  right: 0;
-}
-.tooltip-left-start .tooltip-arrow,
-.tooltip-right-start .tooltip-arrow {
-  top: 0;
-}
-.tooltip-left-end .tooltip-arrow,
-.tooltip-right-end .tooltip-arrow {
-  bottom: 0;
-}
-.highlight {
-  background: rgba(159, 196, 231, 0.6);
-  border: solid 2px #9FC4E7;
-  cursor: pointer;
-}
-.tooltip {
-  font-family: sans-serif;
-  font-size: 14px;
-  max-width: 400px !important;
-}
-`
diff --git a/packages/runner/src/selector-playground/highlight.jsx b/packages/runner/src/selector-playground/highlight.jsx
deleted file mode 100644
index 5ea47f7e5a5c..000000000000
--- a/packages/runner/src/selector-playground/highlight.jsx
+++ /dev/null
@@ -1,37 +0,0 @@
-import _ from 'lodash'
-import React from 'react'
-import { render, unmountComponentAtNode } from 'react-dom'
-import Tooltip from '@cypress/react-tooltip'
-
-const Highlight = ({ selector, appendTo, styles, showTooltip = true }) => {
-  return (
-    <div>
-      {_.map(styles, (style, i) => {
-        // indicates that tooltip should change if one of these props change
-        const updateCue = _.values(_.pick(style, 'width', 'height', 'top', 'left', 'transform')).join()
-
-        return (
-          <Tooltip
-            key={i}
-            title={selector}
-            visible={showTooltip}
-            placement='top-start'
-            appendTo={appendTo}
-            updateCue={updateCue}
-          >
-            <div className='highlight' style={style} />
-          </Tooltip>
-        )
-      })}
-    </div>
-  )
-}
-
-function renderHighlight (container, props) {
-  render(<Highlight {...props} />, container)
-}
-
-export const selectorPlaygroundHighlight = {
-  render: renderHighlight,
-  unmount: unmountComponentAtNode,
-}
diff --git a/packages/runner/src/selector-playground/index.js b/packages/runner/src/selector-playground/index.js
deleted file mode 100644
index c9e80478ca73..000000000000
--- a/packages/runner/src/selector-playground/index.js
+++ /dev/null
@@ -1,8 +0,0 @@
-import { selectorPlaygroundHighlight } from './highlight'
-import { css } from './css'
-
-export const highlight = {
-  render: selectorPlaygroundHighlight.render,
-  unmount: selectorPlaygroundHighlight.unmount,
-  css,
-}
diff --git a/packages/runner/unified-runner.tsx b/packages/runner/unified-runner.tsx
index 06bc21e7ec0d..dfff25ad12d8 100644
--- a/packages/runner/unified-runner.tsx
+++ b/packages/runner/unified-runner.tsx
@@ -6,7 +6,6 @@ import shortcuts from '@packages/reporter/src/lib/shortcuts'
 import * as MobX from 'mobx'
 
 import { dom } from './src/dom'
-import { highlight } from './src/selector-playground'
 
 export const UnifiedRunner = {
   CypressJQuery: $Cypress.$,
@@ -14,7 +13,6 @@ export const UnifiedRunner = {
   CypressDriver: $Cypress,
 
   dom,
-  highlight,
 
   shortcuts,
 
diff --git a/system-tests/projects/selector-playground/cypress.config.js b/system-tests/projects/selector-playground/cypress.config.js
new file mode 100644
index 000000000000..d12d96d7e3e0
--- /dev/null
+++ b/system-tests/projects/selector-playground/cypress.config.js
@@ -0,0 +1,5 @@
+module.exports = {
+  e2e: {
+    supportFile: false,
+  },
+}
diff --git a/system-tests/projects/selector-playground/cypress/e2e/empty.cy.js b/system-tests/projects/selector-playground/cypress/e2e/empty.cy.js
new file mode 100644
index 000000000000..e69de29bb2d1
diff --git a/system-tests/projects/selector-playground/cypress/e2e/index.html b/system-tests/projects/selector-playground/cypress/e2e/index.html
new file mode 100644
index 000000000000..b380b7ef0a00
--- /dev/null
+++ b/system-tests/projects/selector-playground/cypress/e2e/index.html
@@ -0,0 +1,20 @@
+<!DOCTYPE html>
+<html lang="en">
+<head>
+  <meta charset="UTF-8">
+  <meta http-equiv="X-UA-Compatible" content="IE=edge">
+  <meta name="viewport" content="width=device-width, initial-scale=1.0">
+  <title>Hello Selector Playground</title>
+</head>
+<body>
+  <h1>Hello, Selector Playground!</h1> 
+  <hr />
+
+  <h2 data-cy="h2-contents">Some contents</h2>
+
+  <p>Para 1</p>
+  <p>Para 2</p>
+  <p>Para 3</p>
+  <p>Para 4</p>
+</body>
+</html>
diff --git a/system-tests/projects/selector-playground/cypress/e2e/spec.cy.js b/system-tests/projects/selector-playground/cypress/e2e/spec.cy.js
new file mode 100644
index 000000000000..14398fef3b5c
--- /dev/null
+++ b/system-tests/projects/selector-playground/cypress/e2e/spec.cy.js
@@ -0,0 +1,3 @@
+it('visits a basic html page', () => {
+  cy.visit('cypress/e2e/index.html')
+})