diff --git a/packages/client/src/components/Component.svelte b/packages/client/src/components/Component.svelte
index a1550cf72f..582392babe 100644
--- a/packages/client/src/components/Component.svelte
+++ b/packages/client/src/components/Component.svelte
@@ -23,6 +23,7 @@
   import Manifest from "manifest.json"
   import { getActiveConditions, reduceConditionActions } from "utils/conditions"
   import Placeholder from "components/app/Placeholder.svelte"
+  import ComponentPlaceholder from "components/app/ComponentPlaceholder.svelte"
 
   export let instance = {}
   export let isLayout = false
@@ -81,6 +82,7 @@
   let definition
   let settingsDefinition
   let settingsDefinitionMap
+  let missingRequiredSettings = false
 
   // Set up initial state for each new component instance
   $: initialise(instance)
@@ -102,6 +104,7 @@
   $: editable = !!definition?.editable
   $: hasChildren = !!definition?.hasChildren
   $: showEmptyState = definition?.showEmptyState !== false
+  $: hasMissingRequiredSettings = missingRequiredSettings?.length > 0
 
   // Interactive components can be selected, dragged and highlighted inside
   // the builder preview
@@ -155,6 +158,7 @@
     name,
     editing,
     type: instance._component,
+    missingRequiredSettings,
   })
 
   const initialise = instance => {
@@ -201,6 +205,14 @@
     staticSettings = instanceSettings.staticSettings
     dynamicSettings = instanceSettings.dynamicSettings
 
+    // Check if we have any missing required settings
+    missingRequiredSettings = settingsDefinition.filter(setting => {
+      return (
+        setting.required &&
+        (instance[setting.key] == null || instance[setting.key] === "")
+      )
+    })
+
     // Force an initial enrichment of the new settings
     enrichComponentSettings(get(context), settingsDefinitionMap, {
       force: true,
@@ -414,17 +426,21 @@
     data-id={id}
     data-name={name}
   >
-    <svelte:component this={constructor} bind:this={ref} {...initialSettings}>
-      {#if children.length}
-        {#each children as child (child._id)}
-          <svelte:self instance={child} />
-        {/each}
-      {:else if emptyState}
-        <Placeholder />
-      {:else if isBlock}
-        <slot />
-      {/if}
-    </svelte:component>
+    {#if hasMissingRequiredSettings}
+      <ComponentPlaceholder />
+    {:else}
+      <svelte:component this={constructor} bind:this={ref} {...initialSettings}>
+        {#if children.length}
+          {#each children as child (child._id)}
+            <svelte:self instance={child} />
+          {/each}
+        {:else if emptyState}
+          <Placeholder />
+        {:else if isBlock}
+          <slot />
+        {/if}
+      </svelte:component>
+    {/if}
   </div>
 {/if}
 
diff --git a/packages/client/src/components/app/ComponentPlaceholder.svelte b/packages/client/src/components/app/ComponentPlaceholder.svelte
new file mode 100644
index 0000000000..e8164fdb8b
--- /dev/null
+++ b/packages/client/src/components/app/ComponentPlaceholder.svelte
@@ -0,0 +1,50 @@
+<script>
+  import { getContext } from "svelte"
+  import { builderStore } from "stores"
+
+  const { styleable } = getContext("sdk")
+  const component = getContext("component")
+
+  $: focusSetting = $component.missingRequiredSettings?.[0]
+</script>
+
+{#if $builderStore.inBuilder && focusSetting}
+  <div use:styleable={$component.styles}>
+    <div class="component-placeholder">
+      <span>
+        Add the <mark>{focusSetting?.label}</mark> setting to start using your component
+        &nbsp;
+      </span>
+      <span
+        class="spectrum-Link"
+        on:click={() => {
+          builderStore.actions.setFocus([
+            {
+              location: "component_settings",
+              key: focusSetting.key,
+              target: $component.id,
+            },
+          ])
+        }}
+      >
+        Show me
+      </span>
+    </div>
+  </div>
+{/if}
+
+<style>
+  .component-placeholder {
+    color: var(--spectrum-global-color-gray-600);
+    font-size: var(--font-size-s);
+    padding: var(--spacing-xs);
+  }
+  .component-placeholder mark {
+    background-color: var(--spectrum-global-color-gray-400);
+    padding: 0 2px;
+    border-radius: 2px;
+  }
+  .component-placeholder .spectrum-Link {
+    cursor: pointer;
+  }
+</style>
diff --git a/packages/client/src/components/app/Placeholder.svelte b/packages/client/src/components/app/Placeholder.svelte
index 4fb182ff12..203071e0b1 100644
--- a/packages/client/src/components/app/Placeholder.svelte
+++ b/packages/client/src/components/app/Placeholder.svelte
@@ -1,67 +1,15 @@
 <script>
   import { getContext } from "svelte"
-  import Manifest from "manifest.json"
-  import { builderStore } from "stores"
 
-  const { componentStore } = getContext("sdk")
+  const { builderStore } = getContext("sdk")
   const component = getContext("component")
 
   export let text
-
-  $: componentInstance = componentStore.actions.getComponentById($component.id)
-
-  const getComponentKey = compId => {
-    if (!compId) {
-      return
-    }
-    const prefix = "@budibase/standard-components/"
-    let componentKey = compId.replace(prefix, "")
-    return componentKey
-  }
-
-  const emptyFields = (definition, options) => {
-    if (!options) {
-      return []
-    }
-    return definition?.settings
-      ? definition.settings.filter(setting => {
-          return (
-            setting.required &&
-            (!options[setting.key] || options[setting.key] == "")
-          )
-        })
-      : []
-  }
-  const definition = Manifest[getComponentKey($component.type)]
-  $: focus_setting = emptyFields(definition, componentInstance)[0]
 </script>
 
 {#if $builderStore.inBuilder}
-  <div class="placeholder_wrap">
-    {#if componentInstance && focus_setting}
-      <div>
-        <span>
-          Add the <mark>{focus_setting?.label}</mark> setting to start using your
-          component &nbsp;
-        </span>
-        <span
-          class="showMe spectrum-Link"
-          on:click={() => {
-            builderStore.actions.setFocus([
-              {
-                location: "component_settings",
-                key: focus_setting.key,
-                target: $component.id,
-              },
-            ])
-          }}
-        >
-          Show me
-        </span>
-      </div>
-    {:else}
-      {text || $component.name || "Placeholder"}
-    {/if}
+  <div>
+    {text || $component.name || "Placeholder"}
   </div>
 {/if}
 
@@ -69,18 +17,5 @@
   div {
     color: var(--spectrum-global-color-gray-600);
     font-size: var(--font-size-s);
-    padding: var(--spacing-xs);
-  }
-  :global(div.placeholder_wrap mark) {
-    background-color: var(--spectrum-global-color-gray-400);
-    padding: 0px 2px;
-    border-radius: 2px;
-  }
-  :global(div.placeholder_wrap .showMe) {
-    cursor: pointer;
-  }
-  :global(div.placeholder_wrap .showMe:hover) {
-    text-decoration: underline;
-    cursor: pointer;
   }
 </style>