diff --git a/src/vs/workbench/browser/layout.ts b/src/vs/workbench/browser/layout.ts
index bb0d6570508c650a29d6f374d8b851e6ef4fd857..e8d196a218b1257b9943b22c129695188459afbe 100644
--- a/src/vs/workbench/browser/layout.ts
+++ b/src/vs/workbench/browser/layout.ts
@@ -178,6 +178,7 @@ export abstract class Layout extends Disposable implements IWorkbenchLayoutServi
 	private notificationService!: INotificationService;
 	private themeService!: IThemeService;
 	private activityBarService!: IActivityBarService;
+	private statusBarService!: IStatusbarService;
 
 	protected readonly state = {
 		fullscreen: false,
@@ -262,7 +263,7 @@ export abstract class Layout extends Disposable implements IWorkbenchLayoutServi
 		this.titleService = accessor.get(ITitleService);
 		this.notificationService = accessor.get(INotificationService);
 		this.activityBarService = accessor.get(IActivityBarService);
-		accessor.get(IStatusbarService); // not used, but called to ensure instantiated
+		this.statusBarService = accessor.get(IStatusbarService);
 
 		// Listeners
 		this.registerLayoutListeners();
@@ -850,8 +851,10 @@ export abstract class Layout extends Disposable implements IWorkbenchLayoutServi
 			case Parts.ACTIVITYBAR_PART:
 				this.activityBarService.focusActivityBar();
 				break;
+			case Parts.STATUSBAR_PART:
+				this.statusBarService.focus();
 			default:
-				// Status Bar, Activity Bar and Title Bar simply pass focus to container
+				// Title Bar simply pass focus to container
 				const container = this.getContainer(part);
 				if (container) {
 					container.focus();
diff --git a/src/vs/workbench/browser/parts/statusbar/statusbarPart.ts b/src/vs/workbench/browser/parts/statusbar/statusbarPart.ts
index 2b74fcdbd38c23ea5697a692ee20a6d9bca0dae5..fa4de06a425dd864842bfc26b0a426dc0df6b184 100644
--- a/src/vs/workbench/browser/parts/statusbar/statusbarPart.ts
+++ b/src/vs/workbench/browser/parts/statusbar/statusbarPart.ts
@@ -69,6 +69,10 @@ class StatusbarViewModel extends Disposable {
 	get entries(): IStatusbarViewModelEntry[] { return this._entries; }
 
 	private hidden!: Set<string>;
+	get lastFocusedEntry(): IStatusbarViewModelEntry | undefined {
+		return this._lastFocusedEntry && !this.isHidden(this._lastFocusedEntry.id) ? this._lastFocusedEntry : undefined;
+	}
+	private _lastFocusedEntry: IStatusbarViewModelEntry | undefined;
 
 	private readonly _onDidChangeEntryVisibility = this._register(new Emitter<{ id: string, visible: boolean }>());
 	readonly onDidChangeEntryVisibility = this._onDidChangeEntryVisibility.event;
@@ -219,6 +223,7 @@ class StatusbarViewModel extends Disposable {
 		if (focused) {
 			const entry = getVisibleEntry(this._entries.indexOf(focused) + delta);
 			if (entry) {
+				this._lastFocusedEntry = entry;
 				entry.labelContainer.focus();
 				return;
 			}
@@ -226,6 +231,7 @@ class StatusbarViewModel extends Disposable {
 
 		const entry = getVisibleEntry(restartPosition);
 		if (entry) {
+			this._lastFocusedEntry = entry;
 			entry.labelContainer.focus();
 		}
 	}
@@ -493,6 +499,15 @@ export class StatusbarPart extends Part implements IStatusbarService {
 		this.viewModel.focusPreviousEntry();
 	}
 
+	focus(preserveEntryFocus = true): void {
+		this.getContainer()?.focus();
+		const lastFocusedEntry = this.viewModel.lastFocusedEntry;
+		if (preserveEntryFocus && lastFocusedEntry) {
+			// Need a timeout, for some reason without it the inner label container will not get focused
+			setTimeout(() => lastFocusedEntry.labelContainer.focus(), 0);
+		}
+	}
+
 	createContentArea(parent: HTMLElement): HTMLElement {
 		this.element = parent;
 
@@ -680,10 +695,6 @@ export class StatusbarPart extends Part implements IStatusbarService {
 		return itemContainer;
 	}
 
-	focus(): void {
-		this.getContainer();
-	}
-
 	layout(width: number, height: number): void {
 		super.layout(width, height);
 		super.layoutContents(width, height);
@@ -935,3 +946,14 @@ KeybindingsRegistry.registerCommandAndKeybindingRule({
 		statusBarService.focusNextEntry();
 	}
 });
+
+KeybindingsRegistry.registerCommandAndKeybindingRule({
+	id: 'workbench.statusBar.clearFocus',
+	weight: KeybindingWeight.WorkbenchContrib,
+	primary: KeyCode.Escape,
+	when: CONTEXT_STATUS_BAR_FOCUSED,
+	handler: (accessor: ServicesAccessor) => {
+		const statusBarService = accessor.get(IStatusbarService);
+		statusBarService.focus(false);
+	}
+});
diff --git a/src/vs/workbench/services/statusbar/common/statusbar.ts b/src/vs/workbench/services/statusbar/common/statusbar.ts
index 7a90dfab5f3f5474f774bc98ea260d068c52f641..af13535d6227c684690f23001891ab7e65ca1887 100644
--- a/src/vs/workbench/services/statusbar/common/statusbar.ts
+++ b/src/vs/workbench/services/statusbar/common/statusbar.ts
@@ -90,6 +90,11 @@ export interface IStatusbarService {
 	 */
 	updateEntryVisibility(id: string, visible: boolean): void;
 
+	/**
+	 * Focused the status bar. If one of the status bar entries was focused, focuses it directly.
+	 */
+	focus(preserveEntryFocus?: boolean): void;
+
 	/**
 	 * Focuses the next status bar entry. If none focused, focuses the first.
 	 */