I\'ve implemented a simple mouse listener where the background color changes whenever the mouse enters the component (a JPanel), and it reverts back whenever the mouse leave
I can't reproduce this behavior. Please edit your question to provide a short code sample that demonstrates the problem.
When I create a JPanel, and put something in it, the JPanel does not get mouseExit when the mouse moves over a child component of the JPanel. I'm guessing that you've added MouseListeners to the children.