diff --git a/src/game/camera.c b/src/game/camera.c
index 500da623d..92a949bd9 100644
--- a/src/game/camera.c
+++ b/src/game/camera.c
@@ -10874,7 +10874,7 @@ void cutscene_palette_editor(struct Camera *c) {
         if (!pressed && m->action != ACT_TAKING_OFF_CAP && m->action != ACT_PUTTING_ON_CAP) {
             if (m->flags & MARIO_CAP_ON_HEAD) {
                 if (m->action == ACT_IDLE) {
-                    set_mario_action(m, ACT_TAKING_OFF_CAP, 0);
+                    set_mario_action(m, ACT_TAKING_OFF_CAP, 1); // Add palette editor action arg
                 } else {
                     cutscene_take_cap_off(m);
                     gCamera->paletteEditorCap = true;
diff --git a/src/game/mario_actions_cutscene.c b/src/game/mario_actions_cutscene.c
index 3d8d9e27a..060b78c00 100644
--- a/src/game/mario_actions_cutscene.c
+++ b/src/game/mario_actions_cutscene.c
@@ -1882,20 +1882,21 @@ s32 act_putting_on_cap(struct MarioState *m) {
 }
 
 // coop custom action
+// actionArg == 1: the action was inited from CUTSCENE_PALETTE_EDITOR
 s32 act_taking_off_cap(struct MarioState *m) {
     s16 animFrame = set_character_animation(m, CHAR_ANIM_TAKE_CAP_OFF_THEN_ON);
     switch (animFrame) {
         case 0:
-            if (gCamera->cutscene != CUTSCENE_PALETTE_EDITOR) {
+            if (m->actionArg != 1) {
                 enable_time_stop_if_alone();
             }
             break;
         case 12:
             cutscene_take_cap_off(m);
-            if (gCamera->cutscene == CUTSCENE_PALETTE_EDITOR) { gCamera->paletteEditorCap = true; }
+            if (m->actionArg == 1) { gCamera->paletteEditorCap = true; }
             break;
         default:
-            if (animFrame >= 30) {
+            if (animFrame >= 30 || gCamera->cutscene != CUTSCENE_PALETTE_EDITOR) {
                 set_mario_action(m, ACT_IDLE, 0);
                 disable_time_stop();
             }