diff --git a/src/systems/exit-on-blur.js b/src/systems/exit-on-blur.js
index f3b3979aa29ae52e924370f7cc1f87a3b20c119d..c6820a4016cbd3440bab91997e19741b006b6b29 100644
--- a/src/systems/exit-on-blur.js
+++ b/src/systems/exit-on-blur.js
@@ -3,11 +3,14 @@ AFRAME.registerSystem("exit-on-blur", {
     this.onBlur = this.onBlur.bind(this);
     this.onFocus = this.onFocus.bind(this);
     this.onTimeout = this.onTimeout.bind(this);
+    this.onEnterVR = this.onEnterVR.bind(this);
 
     this.isOculusBrowser = navigator.userAgent.match(/Oculus/);
+    this.enteredVR = false;
 
     window.addEventListener("blur", this.onBlur);
     window.addEventListener("focus", this.onFocus);
+    this.el.addEventListener("enter-vr", this.onEnterVR);
 
     this.exitTimeout = null;
   },
@@ -17,12 +20,17 @@ AFRAME.registerSystem("exit-on-blur", {
     // entered standby mode. Currently Oculus Browser is not emitting a blur, vrdisplaydeactivate,
     // vrdisplayblur, visibilitychange, or vrdisplaypresentchange event, so we wait 15 seconds after
     // the last requestAnimationFrame callback to determine if the headset has gone into standby mode.
-    if (this.isOculusBrowser) {
+    // We also check that you have entered VR so that this timeout does not occur in the setup UI.
+    if (this.isOculusBrowser && this.enteredVR) {
       clearTimeout(this.exitTimeout);
       this.exitTimeout = setTimeout(this.onTimeout, 15 * 1000);
     }
   },
 
+  onEnterVR() {
+    this.enteredVR = true;
+  },
+
   onBlur() {
     if (this.el.isMobile) {
       clearTimeout(this.exitTimeout);