diff --git a/editor/editor_layouts_dialog.cpp b/editor/editor_layouts_dialog.cpp
index 3f788627f4c..57a0a888109 100644
--- a/editor/editor_layouts_dialog.cpp
+++ b/editor/editor_layouts_dialog.cpp
@@ -65,6 +65,20 @@ void EditorLayoutsDialog::_line_gui_input(const Ref<InputEvent> &p_event) {
 	}
 }
 
+void EditorLayoutsDialog::_update_ok_disable_state() {
+	if (layout_names->is_anything_selected()) {
+		get_ok_button()->set_disabled(false);
+	} else {
+		get_ok_button()->set_disabled(!name->is_visible() || name->get_text().is_empty());
+	}
+}
+
+void EditorLayoutsDialog::_deselect_layout_names() {
+	// The deselect method does not emit any signal, therefore we need update the disable state as well.
+	layout_names->deselect_all();
+	_update_ok_disable_state();
+}
+
 void EditorLayoutsDialog::_bind_methods() {
 	ADD_SIGNAL(MethodInfo("name_confirmed", PropertyInfo(Variant::STRING, "name")));
 }
@@ -82,8 +96,8 @@ void EditorLayoutsDialog::ok_pressed() {
 
 void EditorLayoutsDialog::_post_popup() {
 	ConfirmationDialog::_post_popup();
-	name->clear();
 	layout_names->clear();
+	name->clear();
 
 	Ref<ConfigFile> config;
 	config.instantiate();
@@ -112,9 +126,9 @@ EditorLayoutsDialog::EditorLayoutsDialog() {
 	makevb->set_anchor_and_offset(SIDE_RIGHT, Control::ANCHOR_END, -5);
 
 	layout_names = memnew(ItemList);
-	layout_names->set_auto_height(true);
 	makevb->add_margin_child(TTR("Select existing layout:"), layout_names);
-	layout_names->set_custom_minimum_size(Size2(300 * EDSCALE, 1));
+	layout_names->set_auto_height(true);
+	layout_names->set_custom_minimum_size(Size2(300 * EDSCALE, 50 * EDSCALE));
 	layout_names->set_visible(true);
 	layout_names->set_offset(SIDE_TOP, 5);
 	layout_names->set_anchor_and_offset(SIDE_LEFT, Control::ANCHOR_BEGIN, 5);
@@ -122,16 +136,17 @@ EditorLayoutsDialog::EditorLayoutsDialog() {
 	layout_names->set_v_size_flags(Control::SIZE_EXPAND_FILL);
 	layout_names->set_select_mode(ItemList::SELECT_MULTI);
 	layout_names->set_allow_rmb_select(true);
+	layout_names->connect("multi_selected", callable_mp(this, &EditorLayoutsDialog::_update_ok_disable_state).unbind(2));
 
 	name = memnew(LineEdit);
-	name->set_placeholder("Or enter new layout name");
 	makevb->add_child(name);
+	name->set_placeholder("Or enter new layout name");
 	name->set_offset(SIDE_TOP, 5);
-	name->set_custom_minimum_size(Size2(300 * EDSCALE, 1));
 	name->set_anchor_and_offset(SIDE_LEFT, Control::ANCHOR_BEGIN, 5);
 	name->set_anchor_and_offset(SIDE_RIGHT, Control::ANCHOR_END, -5);
 	name->connect("gui_input", callable_mp(this, &EditorLayoutsDialog::_line_gui_input));
-	name->connect("focus_entered", callable_mp(layout_names, &ItemList::deselect_all));
+	name->connect("focus_entered", callable_mp(this, &EditorLayoutsDialog::_deselect_layout_names));
+	name->connect("text_changed", callable_mp(this, &EditorLayoutsDialog::_update_ok_disable_state).unbind(1));
 }
 
 void EditorLayoutsDialog::set_name_line_enabled(bool p_enabled) {
diff --git a/editor/editor_layouts_dialog.h b/editor/editor_layouts_dialog.h
index 80a7ed0b532..e3557fbe71a 100644
--- a/editor/editor_layouts_dialog.h
+++ b/editor/editor_layouts_dialog.h
@@ -44,6 +44,8 @@ class EditorLayoutsDialog : public ConfirmationDialog {
 	VBoxContainer *makevb = nullptr;
 
 	void _line_gui_input(const Ref<InputEvent> &p_event);
+	void _update_ok_disable_state();
+	void _deselect_layout_names();
 
 protected:
 	static void _bind_methods();