diff --git a/app/src/main/java/org/mozilla/fenix/tabtray/TabTrayViewHolder.kt b/app/src/main/java/org/mozilla/fenix/tabtray/TabTrayViewHolder.kt
index 6ee6bb8002..f9bcd26833 100644
--- a/app/src/main/java/org/mozilla/fenix/tabtray/TabTrayViewHolder.kt
+++ b/app/src/main/java/org/mozilla/fenix/tabtray/TabTrayViewHolder.kt
@@ -13,6 +13,7 @@ import androidx.annotation.VisibleForTesting
 import androidx.appcompat.content.res.AppCompatResources
 import androidx.appcompat.widget.AppCompatImageButton
 import androidx.core.content.ContextCompat
+import kotlinx.android.synthetic.main.tab_tray_grid_item.view.*
 import mozilla.components.browser.state.state.MediaState
 import mozilla.components.browser.state.store.BrowserStore
 import mozilla.components.browser.tabstray.TabViewHolder
@@ -79,7 +80,7 @@ class TabTrayViewHolder(
         updateUrl(tab)
         updateFavicon(tab)
         updateCloseButtonDescription(tab.title)
-        updateBackgroundColor(isSelected)
+        updateSelectedTabIndicator(isSelected)
 
         if (tab.thumbnail != null) {
             thumbnailView.setImageBitmap(tab.thumbnail)
@@ -170,9 +171,13 @@ class TabTrayViewHolder(
     }
 
     @VisibleForTesting
-    internal fun updateBackgroundColor(isSelected: Boolean) {
+    internal fun updateSelectedTabIndicator(isSelected: Boolean) {
         if (itemView.context.settings().gridTabView) {
-            // No need to set a background color in the item view for grid tabs.
+            itemView.tab_tray_grid_item.background = if (isSelected) {
+                AppCompatResources.getDrawable(itemView.context, R.drawable.tab_tray_grid_item_selected_border)
+            } else {
+                null
+            }
             return
         }
 
diff --git a/app/src/main/res/drawable/tab_tray_grid_item_selected_border.xml b/app/src/main/res/drawable/tab_tray_grid_item_selected_border.xml
new file mode 100644
index 0000000000..b2165f78e1
--- /dev/null
+++ b/app/src/main/res/drawable/tab_tray_grid_item_selected_border.xml
@@ -0,0 +1,27 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- This Source Code Form is subject to the terms of the Mozilla Public
+   - License, v. 2.0. If a copy of the MPL was not distributed with this
+   - file, You can obtain one at http://mozilla.org/MPL/2.0/. -->
+
+<layer-list
+    xmlns:android="http://schemas.android.com/apk/res/android">
+
+    <item
+        android:bottom="4dp"
+        android:left="4dp"
+        android:right="4dp"
+        android:top="4dp">
+
+        <shape
+            android:shape="rectangle">
+
+            <stroke
+                android:width="4dp"
+                android:color="@color/photonViolet70" />
+
+            <corners android:radius="@dimen/tab_tray_grid_item_border_radius" />
+        </shape>
+
+    </item>
+
+</layer-list>
diff --git a/app/src/main/res/layout/tab_tray_grid_item.xml b/app/src/main/res/layout/tab_tray_grid_item.xml
index 7ead6c8912..6dc1f3ba23 100644
--- a/app/src/main/res/layout/tab_tray_grid_item.xml
+++ b/app/src/main/res/layout/tab_tray_grid_item.xml
@@ -13,6 +13,7 @@ A FrameLayout here is an efficient way of having a views stack while allowing:
     xmlns:android="http://schemas.android.com/apk/res/android"
     xmlns:app="http://schemas.android.com/apk/res-auto"
     xmlns:tools="http://schemas.android.com/tools"
+    android:id="@+id/tab_tray_grid_item"
     android:layout_width="match_parent"
     android:layout_height="202dp"
     android:clipChildren="false"