diff --git a/chrome/content/zotero/browser.js b/chrome/content/zotero/browser.js
index 6ee4e0b01a..786cf4dfb0 100644
--- a/chrome/content/zotero/browser.js
+++ b/chrome/content/zotero/browser.js
@@ -40,8 +40,7 @@ var Zotero_Browser = new function() {
 	this.init = init;
 	this.scrapeThisPage = scrapeThisPage;
 	this.annotateThisPage = annotateThisPage;
-	this.toggleAnnotateMode = toggleAnnotateMode;
-	this.toggleHighlightMode = toggleHighlightMode;
+	this.toggleMode = toggleMode;
 	this.chromeLoad = chromeLoad;
 	this.chromeUnload = chromeUnload;
 	this.contentLoad = contentLoad;
@@ -66,6 +65,24 @@ var Zotero_Browser = new function() {
 		"questionmarket.com",
 		"atdmt.com"
 	];
+	
+	var tools = {
+		'zotero-annotate-tb-add':{
+			cursor:"pointer",
+			event:"click",
+			callback:function(e) { _add("annotation", e) }
+		},
+		'zotero-annotate-tb-highlight':{
+			cursor:"text",
+			event:"mouseup",
+			callback:function(e) { _add("highlight", e) }
+		},
+		'zotero-annotate-tb-unhighlight':{
+			cursor:"text",
+			event:"mouseup",
+			callback:function(e) { _add("unhighlight", e) }
+		}
+	};
 
 	//////////////////////////////////////////////////////////////////////////////
 	//
@@ -107,48 +124,31 @@ var Zotero_Browser = new function() {
 		tab.annotateNextLoad = true;
 		tab.annotateID = id;
 	}
-		
-	/*
-	 * toggles the "add annotation" button
-	 */
-	function toggleAnnotateMode() {
-		if(document.getElementById('zotero-annotate-tb-highlight').getAttribute("tool-active")) {
-			toggleHighlightMode();
-		}
-		
-		var body = Zotero_Browser.tabbrowser.selectedBrowser.contentDocument.getElementsByTagName("body")[0];
-		var addElement = document.getElementById('zotero-annotate-tb-add');
-		
-		if(addElement.getAttribute("tool-active")) {
-			body.style.cursor = "auto";
-			addElement.removeAttribute("tool-active");
-			Zotero_Browser.tabbrowser.selectedBrowser.removeEventListener("click", _addAnnotation, true);
-		} else {
-			body.style.cursor = "pointer";
-			addElement.setAttribute("tool-active", "true");
-			Zotero_Browser.tabbrowser.selectedBrowser.addEventListener("click", _addAnnotation, true);
-		}
-	}
 	
-	/*
-	 * toggles the "higlight" button
-	 */
-	function toggleHighlightMode() {
-		if(document.getElementById('zotero-annotate-tb-add').getAttribute("tool-active")) {
-			toggleAnnotateMode();
+	function toggleMode(toggleTool, ignoreOtherTools) {
+		// make sure other tools are turned off
+		if(!ignoreOtherTools) {
+			for(var tool in tools) {
+				if(tool != toggleTool && document.getElementById(tool).getAttribute("tool-active")) {
+					toggleMode(tool, true);
+				}
+			}
 		}
 		
+		if(!toggleTool) return;
+		
 		var body = Zotero_Browser.tabbrowser.selectedBrowser.contentDocument.getElementsByTagName("body")[0];
-		var addElement = document.getElementById('zotero-annotate-tb-highlight');
+		var addElement = document.getElementById(toggleTool);
 		
 		if(addElement.getAttribute("tool-active")) {
+			// turn off
 			body.style.cursor = "auto";
 			addElement.removeAttribute("tool-active");
-			Zotero_Browser.tabbrowser.selectedBrowser.removeEventListener("mouseup", _addHighlight, true);
+			Zotero_Browser.tabbrowser.selectedBrowser.removeEventListener(tools[toggleTool].event, tools[toggleTool].callback, true);
 		} else {
-			body.style.cursor = "text";
+			body.style.cursor = tools[toggleTool].cursor;
 			addElement.setAttribute("tool-active", "true");
-			Zotero_Browser.tabbrowser.selectedBrowser.addEventListener("mouseup", _addHighlight, true);
+			Zotero_Browser.tabbrowser.selectedBrowser.addEventListener(tools[toggleTool].event, tools[toggleTool].callback, true);
 		}
 	}
 	
@@ -326,7 +326,7 @@ var Zotero_Browser = new function() {
 	function tabClose(event) {
 		// To execute if document object does not exist
 		_deleteTabObject(event.target.linkedBrowser);
-		_deselectTools();
+		toggleMode(null);
 	}
 	
 	/*
@@ -442,59 +442,43 @@ var Zotero_Browser = new function() {
 		// set annotation bar status
 		if(tab.page.annotations) {
 			document.getElementById('zotero-annotate-tb').hidden = false;
-			_deselectTools();
+			toggleMode();
 		} else {
 			document.getElementById('zotero-annotate-tb').hidden = true;
 		}
 	}
 	
-	/*
-	 * Deselects annotation tools
-	 */
-	function _deselectTools() {
-		if(document.getElementById('zotero-annotate-tb-add').getAttribute("tool-active")) {
-			toggleAnnotateMode();
-		}
-		if(document.getElementById('zotero-annotate-tb-highlight').getAttribute("tool-active")) {
-			toggleHighlightMode();
-		}
-	}
-	
 	/*
 	 * adds an annotation
 	 */
-	 function _addAnnotation(e) {
+	 function _add(type, e) {
 		var tab = _getTabObject(Zotero_Browser.tabbrowser.selectedBrowser);
 		
-		// ignore click if it's on an existing annotation
-		if(e.target.getAttribute("zotero-annotation")) return;
-		
-		var annotation = tab.page.annotations.createAnnotation();
-		annotation.initWithEvent(e);
-		
-		// stop propagation
-		e.stopPropagation();
-		e.preventDefault();
-		
-		// disable add mode, now that we've used it
-		toggleAnnotateMode();
-	 }
-	 
-	 /*
-	  * adds a highlight
-	  */
-	 function _addHighlight(e) {
-		var tab = _getTabObject(Zotero_Browser.tabbrowser.selectedBrowser);
-		
-		try {
-		 	var selection = Zotero_Browser.tabbrowser.selectedBrowser.contentWindow.getSelection();
-		} catch(err) {
-			return;
+		if(type == "annotation") {
+			// ignore click if it's on an existing annotation
+			if(e.target.getAttribute("zotero-annotation")) return;
+			
+			var annotation = tab.page.annotations.createAnnotation();
+			annotation.initWithEvent(e);
+			
+			// disable add mode, now that we've used it
+			toggleMode();
+		} else {
+			try {
+				var selection = Zotero_Browser.tabbrowser.selectedBrowser.contentWindow.getSelection();
+			} catch(err) {
+				return;
+			}
+			if(selection.isCollapsed) return;
+			
+			if(type == "highlight") {
+	 			tab.page.annotations.createHighlight(selection.getRangeAt(0));
+			} else if(type == "unhighlight") {
+	 			tab.page.annotations.unhighlight(selection.getRangeAt(0));
+			}
+			
+			selection.removeAllRanges();
 		}
-	 	if(selection.isCollapsed) return;
-	 	
-	 	tab.page.annotations.createHighlight(selection.getRangeAt(0));
-		selection.removeAllRanges();
 		
 		// stop propagation
 		e.stopPropagation();
diff --git a/chrome/content/zotero/overlay.xul b/chrome/content/zotero/overlay.xul
index 548613c180..a02abecb9f 100644
--- a/chrome/content/zotero/overlay.xul
+++ b/chrome/content/zotero/overlay.xul
@@ -296,8 +296,9 @@
 		
 		<!-- Annotation Toolbar -->
 		<toolbar id="zotero-annotate-tb" crop="end" insertbefore="content" hidden="true">
-			<toolbarbutton id="zotero-annotate-tb-add" tooltiptext="&zotero.annotate.toolbar.add.label;" oncommand="Zotero_Browser.toggleAnnotateMode();"/>
-			<toolbarbutton id="zotero-annotate-tb-highlight" tooltiptext="&zotero.annotate.toolbar.highlight.label;" oncommand="Zotero_Browser.toggleHighlightMode();"/>
+			<toolbarbutton id="zotero-annotate-tb-add" tooltiptext="&zotero.annotate.toolbar.add.label;" oncommand="Zotero_Browser.toggleMode(this.id);"/>
+			<toolbarbutton id="zotero-annotate-tb-highlight" tooltiptext="&zotero.annotate.toolbar.highlight.label;" oncommand="Zotero_Browser.toggleMode(this.id);"/>
+			<toolbarbutton id="zotero-annotate-tb-unhighlight" tooltiptext="&zotero.annotate.toolbar.unhighlight.label;" oncommand="Zotero_Browser.toggleMode(this.id);"/>
 		</toolbar>
 	</vbox>
 	
diff --git a/chrome/content/zotero/xpcom/annotate.js b/chrome/content/zotero/xpcom/annotate.js
index 3ef86be084..e4dc78a5b8 100644
--- a/chrome/content/zotero/xpcom/annotate.js
+++ b/chrome/content/zotero/xpcom/annotate.js
@@ -49,18 +49,27 @@ Zotero.Annotate = new function() {
 		var path = {parent:"", textNode:null, offset:(offset ? offset : null)};
 		
 		var lastWasTextNode = node.nodeType == textType;
-		
-		// if the selected point is inside a highlight node
-		if(node.parentNode.getAttribute && node.parentNode.getAttribute("zotero")) {
-			// add offsets of preceding text nodes in this zotero node			
+
+		if(node.parentNode.getAttribute && node.parentNode.getAttribute("zotero")) {		
+			// if the selected point is inside a highlight node, add offsets of
+			// preceding text nodes in this zotero node			
 			var sibling = node.previousSibling;
 			while(sibling) {
-				if(child.nodeType == textType) path.offset += child.nodeValue.length;
+				if(sibling.nodeType == textType) path.offset += sibling.nodeValue.length;
 				sibling = sibling.previousSibling;
 			}
 			
 			// use parent node for future purposes
 			node = node.parentNode;
+		} else if(node.getAttribute && node.getAttribute("zotero")) {
+			// if selected point is a zotero node, move it to the last character
+			// of the previous node
+			node = node.previousSibling;
+			if(node.nodeType == textType) {
+				offset = node.nodeValue.length;
+			} else {
+				offset = 0;
+			}
 		}
 		
 		if(lastWasTextNode) {
@@ -329,6 +338,87 @@ Zotero.Annotations.prototype.createHighlight = function(selectedRange) {
 	return highlight;
 }
 
+Zotero.Annotations.prototype.unhighlight = function(selectedRange) {
+	// first, see if part of this range is already covered
+	for(var i in this.highlights) {
+		var compareHighlight = this.highlights[i];
+		var compareRange = compareHighlight.range;
+		
+		var startToStart = compareRange.compareBoundaryPoints(Components.interfaces.nsIDOMRange.START_TO_START, selectedRange);
+		var endToEnd = compareRange.compareBoundaryPoints(Components.interfaces.nsIDOMRange.END_TO_END, selectedRange);
+		
+		var done = false;
+		
+		if(startToStart == -1 && endToEnd == 1) {
+			Zotero.debug("checkpoint 1");
+			// there's a bug in Mozilla's handling of ranges
+			var selectStartPoint = Zotero.Annotate.getPathForPoint(selectedRange.startContainer, selectedRange.startOffset);
+			var compareStartPoint = Zotero.Annotate.getPathForPoint(compareRange.startContainer, compareRange.startOffset);
+			if(selectStartPoint.parent == compareStartPoint.parent &&
+			   selectStartPoint.textNode == compareStartPoint.textNode &&
+			   selectStartPoint.offset == compareStartPoint.offset) {
+				startToStart = 0;
+			} else {				
+				var selectEndPoint = Zotero.Annotate.getPathForPoint(selectedRange.endContainer, selectedRange.endOffset);
+				var compareEndPoint = Zotero.Annotate.getPathForPoint(compareRange.endContainer, compareRange.endOffset);
+				if(selectEndPoint.parent == compareEndPoint.parent &&
+				   selectEndPoint.textNode == compareEndPoint.textNode &&
+				   selectEndPoint.offset == compareEndPoint.offset) {
+					endToEnd = 0;
+				} else {
+					// this will unhighlight the entire end
+					compareHighlight.unhighlight(selectedRange.startContainer, selectedRange.startOffset, 2);
+					
+					// need to use point references because they disregard highlights
+					var newRange = this.document.createRange();
+					var startPoint = Zotero.Annotate.getPointForPath(selectEndPoint.parent, selectEndPoint.textNode, selectEndPoint.offset,
+						this.document, this.nsResolver);
+					var endPoint = Zotero.Annotate.getPointForPath(compareEndPoint.parent, compareEndPoint.textNode, compareEndPoint.offset,
+						this.document, this.nsResolver);
+					newRange.setStart(startPoint.node, startPoint.offset);
+					newRange.setEnd(endPoint.node, endPoint.offset);
+					
+					// create new node
+					var highlight = new Zotero.Highlight(this);
+					highlight.initWithRange(newRange);
+					this.highlights.push(highlight);
+					
+					done = true;
+				}
+			}
+		}
+		
+		if(!done) {
+			if(startToStart != -1 && endToEnd != 1) {
+				Zotero.debug("checkpoint 2");
+				// if this range is inside selected range, delete
+				compareHighlight.unhighlight(null, null, 0);
+				
+				this.highlights[i] = undefined;
+				delete this.highlights[i];
+			} else {
+				var endToStart = compareRange.compareBoundaryPoints(Components.interfaces.nsIDOMRange.END_TO_START, selectedRange);
+				if(endToStart != 1 && endToEnd != -1) {
+					Zotero.debug("checkpoint 3");
+					// if the end of the selected range is between the start and
+					// end of this range
+					//compareRange.setStart(selectedRange.endContainer, selectedRange.endOffset);
+					compareHighlight.unhighlight(selectedRange.endContainer, selectedRange.endOffset, 1);
+				} else {
+					var startToEnd = compareRange.compareBoundaryPoints(Components.interfaces.nsIDOMRange.START_TO_END, selectedRange);
+					if(startToEnd != -1 && startToStart != 1) {
+						Zotero.debug("checkpoint 4");
+						// if the start of the selected range is between the
+						// start and end of this range
+						//compareRange.setEnd(selectedRange.startContainer, selectedRange.startOffset);
+						compareHighlight.unhighlight(selectedRange.startContainer, selectedRange.startOffset, 2);
+					}
+				}
+			}
+		}
+	}
+}
+
 Zotero.Annotations.prototype.refresh = function() {
 	for each(var annotation in this.annotations) {
 		annotation.display();
@@ -660,40 +750,84 @@ Zotero.Highlight.prototype.save = function(index) {
 	Zotero.DB.query(query, parameters);	
 }
 
-Zotero.Highlight.prototype.remove = function() {
+/**
+ * Un-highlights a range. 
+ *
+ * mode can be:
+ *     0: unhighlight all
+ *     1: unhighlight from start to point
+ *     2: unhighlight from point to end
+ **/
+Zotero.Highlight.prototype.unhighlight = function(container, offset, mode) {
 	var textType = Components.interfaces.nsIDOMNode.TEXT_NODE;
 	
-	for each(var span in this.spans) {
-		var parentNode = span.parentNode;
-		
-		// deal with split text nodes
-		if(span.childNodes.length == 1 && span.previousSibling && span.nextSibling &&
-		  textType == span.previousSibling.nodeType == span.firstChild.nodeType == span.nextSibling.nodeType) {
-			span.previousSibling.nodeValue += span.firstChild.nodeValue + span.nextSibling.nodeValue;
-			span.removeChild(span.firstChild);
-			parentNode.removeChild(span.nextSibling);
-		} else if(span.previousSibling &&
-		          textType == span.firstChild.nodeType == span.previousSibling.nodeType) {
-			span.previousSibling.nodeValue += span.firstChild.nodeValue;
-			span.removeChild(span.firstChild);
-		} else if(span.nextSibling &&
-		          textType == span.lastChild.nodeType == span.nextSibling.nodeType) {
-			span.nextSibling.nodeValue = span.lastChild.nodeValue + span.nextSibling.nodeValue;
-			span.removeChild(span.lastChild);
-		}
-		
-		// attach child nodes before
-		while(span.firstChild) {
-			var child = span.firstChild;
-			span.removeChild(child);
-			parentNode.insertBefore(child, span);
-		}
-		
-		// remove span from tree
-		parentNode.removeChild(span);
+	if(mode == 1) {
+		this.range.setStart(container, offset);
+	} else if(mode == 2) {
+		this.range.setEnd(container, offset);
 	}
 	
-	this.spans = new Array();
+	for(var i in this.spans) {
+		var span = this.spans[i];
+		var parentNode = span.parentNode;
+		
+		if(mode != 0 && span.isSameNode(container.parentNode) && offset != 0) {
+			if(mode == 1) {
+				// split text node
+				var textNode = container.splitText(offset);
+				this.range.setStart(textNode, 0);
+				
+				if(span.nextSibling && span.nextSibling.nodeType == span.lastChild == textType) {
+					// attach last node to next text node if possible
+					span.nextSibling.nodeValue = span.lastChild.nodeValue + span.nextSibling.nodeValue;
+					span.removeChild(span.lastChild);
+				}
+				
+				// loop through, removing nodes
+				var node = span.firstChild;
+				
+				while(span.firstChild && !span.firstChild.isSameNode(textNode)) {
+					parentNode.insertBefore(span.removeChild(span.firstChild), span);
+				}
+			} else if(mode == 2) {
+				// split text node
+				var textNode = container.splitText(offset);
+				
+				if(span.previousSibling && span.previousSibling.nodeType == span.firstChild == textType) {
+					// attach last node to next text node if possible
+					span.previousSibling.nodeValue += span.firstChild.nodeValue;
+					span.removeChild(span.firstChild);
+				}
+				
+				// loop through, removing nodes
+				var node = textNode;
+				var child = node;
+				
+				while(node) {
+					child = node;
+					node = node.nextSibling;
+					
+					span.removeChild(child);
+					parentNode.insertBefore(child, span.nextSibling);
+				}
+				
+				this.range.setEnd(textNode, 0);
+			}
+		} else if(mode == 0 || !this.range.isPointInRange(span, 1)) {
+			Zotero.debug("point is in range");
+			
+			// attach child nodes before
+			while(span.hasChildNodes()) {
+				Zotero.debug("moving "+span.firstChild.textContent);
+				span.parentNode.insertBefore(span.removeChild(span.firstChild), span);
+			}
+			
+			// remove span from DOM
+			span.parentNode.removeChild(span);
+		}
+		
+		parentNode.normalize();
+	}
 }
 
 Zotero.Highlight.prototype._highlight = function() {
diff --git a/chrome/locale/en-US/zotero/zotero.dtd b/chrome/locale/en-US/zotero/zotero.dtd
index a30f57dbfe..92b92e2814 100644
--- a/chrome/locale/en-US/zotero/zotero.dtd
+++ b/chrome/locale/en-US/zotero/zotero.dtd
@@ -94,4 +94,5 @@
 <!ENTITY zotero.citation.line							"Line">
 
 <!ENTITY zotero.annotate.toolbar.add.label				"Add Annotation">
-<!ENTITY zotero.annotate.toolbar.highlight.label		"Highlight Text">
\ No newline at end of file
+<!ENTITY zotero.annotate.toolbar.highlight.label		"Highlight Text">
+<!ENTITY zotero.annotate.toolbar.unhighlight.label		"Unhighlight Text">
\ No newline at end of file
diff --git a/chrome/skin/default/zotero/overlay.css b/chrome/skin/default/zotero/overlay.css
index f68d8747e8..523ad7bf6e 100644
--- a/chrome/skin/default/zotero/overlay.css
+++ b/chrome/skin/default/zotero/overlay.css
@@ -257,6 +257,11 @@
 	list-style-image: url('chrome://zotero/skin/annotate-highlight.png');
 }
 
+#zotero-annotate-tb-unhighlight
+{
+	list-style-image: url('chrome://zotero/skin/annotate-unhighlight.png');
+}
+
 #zotero-annotate-tb-add[tool-active=true]
 {
 	list-style-image: url('chrome://zotero/skin/annotate-add-selected.png');
@@ -265,4 +270,9 @@
 #zotero-annotate-tb-highlight[tool-active=true]
 {
 	list-style-image: url('chrome://zotero/skin/annotate-highlight-selected.png');
+}
+
+#zotero-annotate-tb-unhighlight[tool-active=true]
+{
+	list-style-image: url('chrome://zotero/skin/annotate-unhighlight-selected.png');
 }
\ No newline at end of file