diff --git a/include/sway/input/seat.h b/include/sway/input/seat.h
index 2e4da438..1f7792ba 100644
--- a/include/sway/input/seat.h
+++ b/include/sway/input/seat.h
@@ -21,6 +21,19 @@ struct sway_seat_container {
 	struct wl_listener destroy;
 };
 
+struct sway_drag_icon {
+	struct sway_seat *seat;
+	struct wlr_drag_icon *wlr_drag_icon;
+	struct wl_list link; // sway_root::drag_icons
+
+	double x, y; // in layout-local coordinates
+
+	struct wl_listener surface_commit;
+	struct wl_listener map;
+	struct wl_listener unmap;
+	struct wl_listener destroy;
+};
+
 struct sway_seat {
 	struct wlr_seat *wlr_seat;
 	struct sway_cursor *cursor;
@@ -35,8 +48,13 @@ struct sway_seat {
 	// If exclusive_client is set, no other clients will receive input events
 	struct wl_client *exclusive_client;
 
+	// Last touch point
+	int32_t touch_id;
+	double touch_x, touch_y;
+
 	struct wl_listener focus_destroy;
 	struct wl_listener new_container;
+	struct wl_listener new_drag_icon;
 
 	struct wl_list devices; // sway_seat_device::link
 
@@ -114,4 +132,6 @@ struct seat_config *seat_get_config(struct sway_seat *seat);
 
 bool seat_is_input_allowed(struct sway_seat *seat, struct wlr_surface *surface);
 
+void drag_icon_update_position(struct sway_drag_icon *icon);
+
 #endif
diff --git a/include/sway/tree/arrange.h b/include/sway/tree/arrange.h
index 897a9392..6c8c0dba 100644
--- a/include/sway/tree/arrange.h
+++ b/include/sway/tree/arrange.h
@@ -4,6 +4,12 @@
 
 struct sway_container;
 
+// Remove gaps around container
+void remove_gaps(struct sway_container *c);
+
+// Add gaps around container
+void add_gaps(struct sway_container *c);
+
 /**
  * Arrange layout for all the children of the given container, and add them to
  * the given transaction.
diff --git a/include/sway/tree/container.h b/include/sway/tree/container.h
index a8efd893..f4e978ea 100644
--- a/include/sway/tree/container.h
+++ b/include/sway/tree/container.h
@@ -60,6 +60,11 @@ struct sway_container_state {
 	double swayc_x, swayc_y;
 	double swayc_width, swayc_height;
 
+	bool has_gaps;
+	double current_gaps;
+	double gaps_inner;
+	double gaps_outer;
+
 	//struct sway_container *parent;
 	//list_t *children;
 
@@ -112,6 +117,13 @@ struct sway_container {
 	double saved_x, saved_y;
 	double saved_width, saved_height;
 
+	// The gaps currently applied to the container.
+	double current_gaps;
+
+	bool has_gaps;
+	double gaps_inner;
+	double gaps_outer;
+
 	list_t *children;
 
 	struct sway_container *parent;
diff --git a/include/sway/tree/layout.h b/include/sway/tree/layout.h
index cd131056..ba265623 100644
--- a/include/sway/tree/layout.h
+++ b/include/sway/tree/layout.h
@@ -28,6 +28,7 @@ struct sway_root {
 	struct wl_listener output_layout_change;
 
 	struct wl_list xwayland_unmanaged; // sway_xwayland_unmanaged::link
+	struct wl_list drag_icons; // sway_drag_icon::link
 
 	struct wlr_texture *debug_tree;
 
diff --git a/sway/commands.c b/sway/commands.c
index 1523fdd1..5b20857a 100644
--- a/sway/commands.c
+++ b/sway/commands.c
@@ -105,6 +105,8 @@ static struct cmd_handler handlers[] = {
 	{ "font", cmd_font },
 	{ "for_window", cmd_for_window },
 	{ "force_focus_wrapping", cmd_force_focus_wrapping },
+	{ "fullscreen", cmd_fullscreen },
+	{ "gaps", cmd_gaps },
 	{ "hide_edge_borders", cmd_hide_edge_borders },
 	{ "include", cmd_include },
 	{ "input", cmd_input },
@@ -114,6 +116,7 @@ static struct cmd_handler handlers[] = {
 	{ "seat", cmd_seat },
 	{ "set", cmd_set },
 	{ "show_marks", cmd_show_marks },
+	{ "smart_gaps", cmd_smart_gaps },
 	{ "workspace", cmd_workspace },
 	{ "workspace_auto_back_and_forth", cmd_ws_auto_back_and_forth },
 };
diff --git a/sway/commands/gaps.c b/sway/commands/gaps.c
new file mode 100644
index 00000000..801fb179
--- /dev/null
+++ b/sway/commands/gaps.c
@@ -0,0 +1,177 @@
+#include <string.h>
+#include "sway/commands.h"
+#include "sway/config.h"
+#include "sway/tree/arrange.h"
+#include "log.h"
+#include "stringop.h"
+#include <math.h>
+
+enum gaps_op {
+	GAPS_OP_SET,
+	GAPS_OP_ADD,
+	GAPS_OP_SUBTRACT
+};
+
+enum gaps_scope {
+	GAPS_SCOPE_ALL,
+	GAPS_SCOPE_WORKSPACE,
+	GAPS_SCOPE_CURRENT
+};
+
+struct cmd_results *cmd_gaps(int argc, char **argv) {
+	struct cmd_results *error = checkarg(argc, "gaps", EXPECTED_AT_LEAST, 1);
+	if (error) {
+		return error;
+	}
+
+	if (strcmp(argv[0], "edge_gaps") == 0) {
+		if ((error = checkarg(argc, "gaps", EXPECTED_AT_LEAST, 2))) {
+			return error;
+		}
+
+		if (strcmp(argv[1], "on") == 0) {
+			config->edge_gaps = true;
+		} else if (strcmp(argv[1], "off") == 0) {
+			config->edge_gaps = false;
+		} else if (strcmp(argv[1], "toggle") == 0) {
+			if (!config->active) {
+				return cmd_results_new(CMD_INVALID, "gaps",
+					"Cannot toggle gaps while not running.");
+			}
+			config->edge_gaps = !config->edge_gaps;
+		} else {
+			return cmd_results_new(CMD_INVALID, "gaps",
+				"gaps edge_gaps on|off|toggle");
+		}
+		arrange_and_commit(&root_container);
+	} else {
+		int amount_idx = 0; // the current index in argv
+		enum gaps_op op = GAPS_OP_SET;
+		enum gaps_scope scope = GAPS_SCOPE_ALL;
+		bool inner = true;
+
+		if (strcmp(argv[0], "inner") == 0) {
+			amount_idx++;
+			inner = true;
+		} else if (strcmp(argv[0], "outer") == 0) {
+			amount_idx++;
+			inner = false;
+		}
+
+		// If one of the long variants of the gaps command is used
+		// (which starts with inner|outer) check the number of args
+		if (amount_idx > 0) { // if we've seen inner|outer
+			if (argc > 2) { // check the longest variant
+				error = checkarg(argc, "gaps", EXPECTED_EQUAL_TO, 4);
+				if (error) {
+					return error;
+				}
+			} else { // check the next longest format
+				error = checkarg(argc, "gaps", EXPECTED_EQUAL_TO, 2);
+				if (error) {
+					return error;
+				}
+			}
+		} else {
+			error = checkarg(argc, "gaps", EXPECTED_EQUAL_TO, 1);
+			if (error) {
+				return error;
+			}
+		}
+
+		if (argc == 4) {
+			// Long format: all|workspace|current.
+			if (strcmp(argv[amount_idx], "all") == 0) {
+				amount_idx++;
+				scope = GAPS_SCOPE_ALL;
+			} else if (strcmp(argv[amount_idx], "workspace") == 0) {
+				amount_idx++;
+				scope = GAPS_SCOPE_WORKSPACE;
+			} else if (strcmp(argv[amount_idx], "current") == 0) {
+				amount_idx++;
+				scope = GAPS_SCOPE_CURRENT;
+			}
+
+			// Long format: set|plus|minus
+			if (strcmp(argv[amount_idx], "set") == 0) {
+				amount_idx++;
+				op = GAPS_OP_SET;
+			} else if (strcmp(argv[amount_idx], "plus") == 0) {
+				amount_idx++;
+				op = GAPS_OP_ADD;
+			} else if (strcmp(argv[amount_idx], "minus") == 0) {
+				amount_idx++;
+				op = GAPS_OP_SUBTRACT;
+			}
+		}
+
+		char *end;
+		double val = strtod(argv[amount_idx], &end);
+
+		if (strlen(end) && val == 0.0) { // invalid <amount>
+			// guess which variant of the command was attempted
+			if (argc == 1) {
+				return cmd_results_new(CMD_INVALID, "gaps", "gaps <amount>");
+			}
+			if (argc == 2) {
+				return cmd_results_new(CMD_INVALID, "gaps",
+					"gaps inner|outer <amount>");
+			}
+			return cmd_results_new(CMD_INVALID, "gaps",
+				"gaps inner|outer all|workspace|current set|plus|minus <amount>");
+		}
+
+		if (amount_idx == 0) { // gaps <amount>
+			config->gaps_inner = val;
+			config->gaps_outer = val;
+			arrange_and_commit(&root_container);
+			return cmd_results_new(CMD_SUCCESS, NULL, NULL);
+		}
+		// Other variants. The middle-length variant (gaps inner|outer <amount>)
+		// just defaults the scope to "all" and defaults the op to "set".
+
+		double total;
+		switch (op) {
+			case GAPS_OP_SUBTRACT: {
+				total = (inner ? config->gaps_inner : config->gaps_outer) - val;
+				if (total < 0) {
+					total = 0;
+				}
+				break;
+			}
+			case GAPS_OP_ADD: {
+				total = (inner ? config->gaps_inner : config->gaps_outer) + val;
+				break;
+			}
+			case GAPS_OP_SET: {
+				total = val;
+				break;
+			}
+		}
+
+		if (scope == GAPS_SCOPE_ALL) {
+			if (inner) {
+				config->gaps_inner = total;
+			} else {
+				config->gaps_outer = total;
+			}
+			arrange_and_commit(&root_container);
+		} else {
+			struct sway_container *c =
+				config->handler_context.current_container;
+			if (scope == GAPS_SCOPE_WORKSPACE && c->type != C_WORKSPACE) {
+				c = container_parent(c, C_WORKSPACE);
+			}
+			c->has_gaps = true;
+			if (inner) {
+				c->gaps_inner = total;
+			} else {
+				c->gaps_outer = total;
+			}
+
+			arrange_and_commit(c->parent ? c->parent : &root_container);
+		}
+	}
+
+	return cmd_results_new(CMD_SUCCESS, NULL, NULL);
+}
diff --git a/sway/commands/smart_gaps.c b/sway/commands/smart_gaps.c
new file mode 100644
index 00000000..f687e78e
--- /dev/null
+++ b/sway/commands/smart_gaps.c
@@ -0,0 +1,29 @@
+#include <string.h>
+#include "sway/commands.h"
+#include "sway/config.h"
+#include "sway/tree/arrange.h"
+#include "sway/tree/view.h"
+#include "sway/tree/container.h"
+#include "log.h"
+#include "stringop.h"
+
+struct cmd_results *cmd_smart_gaps(int argc, char **argv) {
+	struct cmd_results *error = checkarg(argc, "smart_gaps", EXPECTED_AT_LEAST, 1);
+
+	if (error) {
+		return error;
+	}
+
+	if (strcmp(argv[0], "on") == 0) {
+		config->smart_gaps = true;
+	} else if (strcmp(argv[0], "off") == 0) {
+		config->smart_gaps = false;
+	} else {
+		return cmd_results_new(CMD_INVALID, "smart_gaps",
+			"Expected 'smart_gaps <on|off>' ");
+	}
+
+	arrange_and_commit(&root_container);
+
+	return cmd_results_new(CMD_SUCCESS, NULL, NULL);
+}
diff --git a/sway/desktop/output.c b/sway/desktop/output.c
index 29efdd50..5c26ac52 100644
--- a/sway/desktop/output.c
+++ b/sway/desktop/output.c
@@ -194,6 +194,21 @@ static void unmanaged_for_each_surface(struct wl_list *unmanaged,
 	}
 }
 
+static void drag_icons_for_each_surface(struct wl_list *drag_icons,
+		struct sway_output *output, struct root_geometry *geo,
+		wlr_surface_iterator_func_t iterator, void *user_data) {
+	struct sway_drag_icon *drag_icon;
+	wl_list_for_each(drag_icon, drag_icons, link) {
+		double ox = drag_icon->x - output->swayc->x;
+		double oy = drag_icon->y - output->swayc->y;
+
+		if (drag_icon->wlr_drag_icon->mapped) {
+			surface_for_each_surface(drag_icon->wlr_drag_icon->surface,
+				ox, oy, geo, iterator, user_data);
+		}
+	}
+}
+
 static void scale_box(struct wlr_box *box, float scale) {
 	box->x *= scale;
 	box->y *= scale;
@@ -315,6 +330,17 @@ static void render_unmanaged(struct sway_output *output,
 		render_surface_iterator, &data);
 }
 
+static void render_drag_icons(struct sway_output *output,
+		pixman_region32_t *damage, struct wl_list *drag_icons) {
+	struct render_data data = {
+		.output = output,
+		.damage = damage,
+		.alpha = 1.0f,
+	};
+	drag_icons_for_each_surface(drag_icons, output, &data.root_geo,
+		render_surface_iterator, &data);
+}
+
 static void render_rect(struct wlr_output *wlr_output,
 		pixman_region32_t *output_damage, const struct wlr_box *_box,
 		float color[static 4]) {
@@ -959,6 +985,7 @@ static void render_output(struct sway_output *output, struct timespec *when,
 	}
 	render_layer(output, damage,
 		&output->layers[ZWLR_LAYER_SHELL_V1_LAYER_OVERLAY]);
+	render_drag_icons(output, damage, &root_container.sway_root->drag_icons);
 
 renderer_end:
 	if (root_container.sway_root->debug_tree) {
@@ -1009,6 +1036,12 @@ static void send_frame_done_unmanaged(struct send_frame_done_data *data,
 		send_frame_done_iterator, data);
 }
 
+static void send_frame_done_drag_icons(struct send_frame_done_data *data,
+		struct wl_list *drag_icons) {
+	drag_icons_for_each_surface(drag_icons, data->output, &data->root_geo,
+		send_frame_done_iterator, data);
+}
+
 static void send_frame_done_container_iterator(struct sway_container *con,
 		void *_data) {
 	struct send_frame_done_data *data = _data;
@@ -1062,6 +1095,7 @@ static void send_frame_done(struct sway_output *output, struct timespec *when) {
 
 	send_frame_done_layer(&data,
 		&output->layers[ZWLR_LAYER_SHELL_V1_LAYER_OVERLAY]);
+	send_frame_done_drag_icons(&data, &root_container.sway_root->drag_icons);
 }
 
 static void damage_handle_frame(struct wl_listener *listener, void *data) {
@@ -1227,12 +1261,10 @@ static void handle_destroy(struct wl_listener *listener, void *data) {
 		container_destroy(output->swayc);
 	}
 
-	if (&output->link) {
-		wl_list_remove(&output->link);
-		wl_list_remove(&output->destroy.link);
-		output->wlr_output = NULL;
-		free(output);
-	}
+	wl_list_remove(&output->link);
+	wl_list_remove(&output->destroy.link);
+	output->wlr_output->data = NULL;
+	free(output);
 }
 
 static void handle_mode(struct wl_listener *listener, void *data) {
@@ -1270,10 +1302,13 @@ void handle_new_output(struct wl_listener *listener, void *data) {
 	output->wlr_output = wlr_output;
 	wlr_output->data = output;
 	output->server = server;
-	wl_list_insert(&root_container.sway_root->outputs, &output->link);
-
 	output->damage = wlr_output_damage_create(wlr_output);
 
+	wl_signal_add(&wlr_output->events.destroy, &output->destroy);
+	output->destroy.notify = handle_destroy;
+
+	wl_list_insert(&root_container.sway_root->outputs, &output->link);
+
 	if (!wl_list_empty(&wlr_output->modes)) {
 		struct wlr_output_mode *mode =
 			wl_container_of(wlr_output->modes.prev, mode, link);
@@ -1286,6 +1321,10 @@ void handle_new_output(struct wl_listener *listener, void *data) {
 void output_enable(struct sway_output *output) {
 	struct wlr_output *wlr_output = output->wlr_output;
 
+	if (!sway_assert(output->swayc == NULL, "output is already enabled")) {
+		return;
+	}
+
 	output->swayc = output_create(output);
 	if (!output->swayc) {
 		// Output is disabled
@@ -1299,8 +1338,6 @@ void output_enable(struct sway_output *output) {
 
 	input_manager_configure_xcursor(input_manager);
 
-	wl_signal_add(&wlr_output->events.destroy, &output->destroy);
-	output->destroy.notify = handle_destroy;
 	wl_signal_add(&wlr_output->events.mode, &output->mode);
 	output->mode.notify = handle_mode;
 	wl_signal_add(&wlr_output->events.transform, &output->transform);
diff --git a/sway/desktop/transaction.c b/sway/desktop/transaction.c
index ee9883e2..07bfbf7a 100644
--- a/sway/desktop/transaction.c
+++ b/sway/desktop/transaction.c
@@ -82,6 +82,10 @@ void transaction_add_container(struct sway_transaction *transaction,
 	state->swayc_y = container->y;
 	state->swayc_width = container->width;
 	state->swayc_height = container->height;
+	state->has_gaps = container->has_gaps;
+	state->current_gaps = container->current_gaps;
+	state->gaps_inner = container->gaps_inner;
+	state->gaps_outer = container->gaps_outer;
 
 	if (container->type == C_VIEW) {
 		struct sway_view *view = container->sway_view;
diff --git a/sway/input/cursor.c b/sway/input/cursor.c
index 4100479c..37a87756 100644
--- a/sway/input/cursor.c
+++ b/sway/input/cursor.c
@@ -144,21 +144,22 @@ void cursor_send_pointer_motion(struct sway_cursor *cursor, uint32_t time_msec,
 		time_msec = get_current_time_msec();
 	}
 
-	struct wlr_seat *seat = cursor->seat->wlr_seat;
+	struct sway_seat *seat = cursor->seat;
+	struct wlr_seat *wlr_seat = seat->wlr_seat;
 	struct wlr_surface *surface = NULL;
 	double sx, sy;
 
 	// Find the container beneath the pointer's previous position
-	struct sway_container *prev_c = container_at_coords(cursor->seat,
+	struct sway_container *prev_c = container_at_coords(seat,
 			cursor->previous.x, cursor->previous.y, &surface, &sx, &sy);
 	// Update the stored previous position
 	cursor->previous.x = cursor->cursor->x;
 	cursor->previous.y = cursor->cursor->y;
 
-	struct sway_container *c = container_at_coords(cursor->seat,
+	struct sway_container *c = container_at_coords(seat,
 			cursor->cursor->x, cursor->cursor->y, &surface, &sx, &sy);
 	if (c && config->focus_follows_mouse && allow_refocusing) {
-		struct sway_container *focus = seat_get_focus(cursor->seat);
+		struct sway_container *focus = seat_get_focus(seat);
 		if (focus && c->type == C_WORKSPACE) {
 			// Only follow the mouse if it would move to a new output
 			// Otherwise we'll focus the workspace, which is probably wrong
@@ -170,20 +171,20 @@ void cursor_send_pointer_motion(struct sway_cursor *cursor, uint32_t time_msec,
 				output = container_parent(c, C_OUTPUT);
 			}
 			if (output != focus) {
-				seat_set_focus_warp(cursor->seat, c, false);
+				seat_set_focus_warp(seat, c, false);
 			}
 		} else if (c->type == C_VIEW) {
 			// Focus c if both of the following are true:
 			// - cursor is over a new view, i.e. entered a new window; and
 			// - the new view is visible, i.e. not hidden in a stack or tab.
 			if (c != prev_c && view_is_visible(c->sway_view)) {
-				seat_set_focus_warp(cursor->seat, c, false);
+				seat_set_focus_warp(seat, c, false);
 			} else {
 				struct sway_container *next_focus =
-					seat_get_focus_inactive(cursor->seat, &root_container);
+					seat_get_focus_inactive(seat, &root_container);
 				if (next_focus && next_focus->type == C_VIEW &&
 						view_is_visible(next_focus->sway_view)) {
-					seat_set_focus_warp(cursor->seat, next_focus, false);
+					seat_set_focus_warp(seat, next_focus, false);
 				}
 			}
 		}
@@ -202,12 +203,18 @@ void cursor_send_pointer_motion(struct sway_cursor *cursor, uint32_t time_msec,
 
 	// send pointer enter/leave
 	if (surface != NULL) {
-		if (seat_is_input_allowed(cursor->seat, surface)) {
-			wlr_seat_pointer_notify_enter(seat, surface, sx, sy);
-			wlr_seat_pointer_notify_motion(seat, time_msec, sx, sy);
+		if (seat_is_input_allowed(seat, surface)) {
+			wlr_seat_pointer_notify_enter(wlr_seat, surface, sx, sy);
+			wlr_seat_pointer_notify_motion(wlr_seat, time_msec, sx, sy);
 		}
 	} else {
-		wlr_seat_pointer_clear_focus(seat);
+		wlr_seat_pointer_clear_focus(wlr_seat);
+	}
+
+	struct wlr_drag_icon *wlr_drag_icon;
+	wl_list_for_each(wlr_drag_icon, &wlr_seat->drag_icons, link) {
+		struct sway_drag_icon *drag_icon = wlr_drag_icon->data;
+		drag_icon_update_position(drag_icon);
 	}
 }
 
@@ -293,22 +300,27 @@ static void handle_touch_down(struct wl_listener *listener, void *data) {
 	wlr_idle_notify_activity(cursor->seat->input->server->idle, cursor->seat->wlr_seat);
 	struct wlr_event_touch_down *event = data;
 
-	struct wlr_seat *seat = cursor->seat->wlr_seat;
+	struct sway_seat *seat = cursor->seat;
+	struct wlr_seat *wlr_seat = seat->wlr_seat;
 	struct wlr_surface *surface = NULL;
 
 	double lx, ly;
 	wlr_cursor_absolute_to_layout_coords(cursor->cursor, event->device,
 			event->x, event->y, &lx, &ly);
 	double sx, sy;
-	container_at_coords(cursor->seat, lx, ly, &surface, &sx, &sy);
+	container_at_coords(seat, lx, ly, &surface, &sx, &sy);
+
+	seat->touch_id = event->touch_id;
+	seat->touch_x = lx;
+	seat->touch_y = ly;
 
 	if (!surface) {
 		return;
 	}
 
 	// TODO: fall back to cursor simulation if client has not bound to touch
-	if (seat_is_input_allowed(cursor->seat, surface)) {
-		wlr_seat_touch_notify_down(seat, surface, event->time_msec,
+	if (seat_is_input_allowed(seat, surface)) {
+		wlr_seat_touch_notify_down(wlr_seat, surface, event->time_msec,
 				event->touch_id, sx, sy);
 		cursor->image_client = NULL;
 		wlr_cursor_set_image(cursor->cursor, NULL, 0, 0, 0, 0, 0, 0);
@@ -330,7 +342,8 @@ static void handle_touch_motion(struct wl_listener *listener, void *data) {
 	wlr_idle_notify_activity(cursor->seat->input->server->idle, cursor->seat->wlr_seat);
 	struct wlr_event_touch_motion *event = data;
 
-	struct wlr_seat *seat = cursor->seat->wlr_seat;
+	struct sway_seat *seat = cursor->seat;
+	struct wlr_seat *wlr_seat = seat->wlr_seat;
 	struct wlr_surface *surface = NULL;
 
 	double lx, ly;
@@ -339,14 +352,25 @@ static void handle_touch_motion(struct wl_listener *listener, void *data) {
 	double sx, sy;
 	container_at_coords(cursor->seat, lx, ly, &surface, &sx, &sy);
 
+	if (seat->touch_id == event->touch_id) {
+		seat->touch_x = lx;
+		seat->touch_y = ly;
+
+		struct wlr_drag_icon *wlr_drag_icon;
+		wl_list_for_each(wlr_drag_icon, &wlr_seat->drag_icons, link) {
+			struct sway_drag_icon *drag_icon = wlr_drag_icon->data;
+			drag_icon_update_position(drag_icon);
+		}
+	}
+
 	if (!surface) {
 		return;
 	}
 
 	// TODO: fall back to cursor simulation if client has not bound to touch
 	if (seat_is_input_allowed(cursor->seat, surface)) {
-		wlr_seat_touch_notify_motion(
-				seat, event->time_msec, event->touch_id, sx, sy);
+		wlr_seat_touch_notify_motion(wlr_seat, event->time_msec,
+			event->touch_id, sx, sy);
 	}
 }
 
diff --git a/sway/input/seat.c b/sway/input/seat.c
index 071ef020..1ea36466 100644
--- a/sway/input/seat.c
+++ b/sway/input/seat.c
@@ -6,21 +6,22 @@
 #include <wlr/types/wlr_cursor.h>
 #include <wlr/types/wlr_output_layout.h>
 #include <wlr/types/wlr_xcursor_manager.h>
+#include "log.h"
 #include "sway/debug.h"
-#include "sway/tree/container.h"
-#include "sway/tree/workspace.h"
-#include "sway/input/seat.h"
+#include "sway/desktop.h"
 #include "sway/input/cursor.h"
 #include "sway/input/input-manager.h"
 #include "sway/input/keyboard.h"
+#include "sway/input/seat.h"
 #include "sway/ipc-server.h"
 #include "sway/layers.h"
 #include "sway/output.h"
 #include "sway/tree/arrange.h"
 #include "sway/tree/container.h"
+#include "sway/tree/container.h"
 #include "sway/tree/view.h"
 #include "sway/tree/workspace.h"
-#include "log.h"
+#include "sway/tree/workspace.h"
 
 static void seat_device_destroy(struct sway_seat_device *seat_device) {
 	if (!seat_device) {
@@ -40,6 +41,8 @@ void seat_destroy(struct sway_seat *seat) {
 		seat_device_destroy(seat_device);
 	}
 	sway_cursor_destroy(seat->cursor);
+	wl_list_remove(&seat->new_container.link);
+	wl_list_remove(&seat->new_drag_icon.link);
 	wl_list_remove(&seat->link);
 	wlr_seat_destroy(seat->wlr_seat);
 }
@@ -234,6 +237,90 @@ static void handle_new_container(struct wl_listener *listener, void *data) {
 	seat_container_from_container(seat, con);
 }
 
+static void drag_icon_damage_whole(struct sway_drag_icon *icon) {
+	if (!icon->wlr_drag_icon->mapped) {
+		return;
+	}
+	desktop_damage_surface(icon->wlr_drag_icon->surface, icon->x, icon->y, true);
+}
+
+void drag_icon_update_position(struct sway_drag_icon *icon) {
+	drag_icon_damage_whole(icon);
+
+	struct wlr_drag_icon *wlr_icon = icon->wlr_drag_icon;
+	struct sway_seat *seat = icon->seat;
+	struct wlr_cursor *cursor = seat->cursor->cursor;
+	if (wlr_icon->is_pointer) {
+		icon->x = cursor->x + wlr_icon->sx;
+		icon->y = cursor->y + wlr_icon->sy;
+	} else {
+		struct wlr_touch_point *point =
+			wlr_seat_touch_get_point(seat->wlr_seat, wlr_icon->touch_id);
+		if (point == NULL) {
+			return;
+		}
+		icon->x = seat->touch_x + wlr_icon->sx;
+		icon->y = seat->touch_y + wlr_icon->sy;
+	}
+
+	drag_icon_damage_whole(icon);
+}
+
+static void drag_icon_handle_surface_commit(struct wl_listener *listener,
+		void *data) {
+	struct sway_drag_icon *icon =
+		wl_container_of(listener, icon, surface_commit);
+	drag_icon_update_position(icon);
+}
+
+static void drag_icon_handle_map(struct wl_listener *listener, void *data) {
+	struct sway_drag_icon *icon = wl_container_of(listener, icon, map);
+	drag_icon_damage_whole(icon);
+}
+
+static void drag_icon_handle_unmap(struct wl_listener *listener, void *data) {
+	struct sway_drag_icon *icon = wl_container_of(listener, icon, unmap);
+	drag_icon_damage_whole(icon);
+}
+
+static void drag_icon_handle_destroy(struct wl_listener *listener,
+		void *data) {
+	struct sway_drag_icon *icon = wl_container_of(listener, icon, destroy);
+	icon->wlr_drag_icon->data = NULL;
+	wl_list_remove(&icon->link);
+	wl_list_remove(&icon->surface_commit.link);
+	wl_list_remove(&icon->unmap.link);
+	wl_list_remove(&icon->destroy.link);
+	free(icon);
+}
+
+static void handle_new_drag_icon(struct wl_listener *listener, void *data) {
+	struct sway_seat *seat = wl_container_of(listener, seat, new_drag_icon);
+	struct wlr_drag_icon *wlr_drag_icon = data;
+
+	struct sway_drag_icon *icon = calloc(1, sizeof(struct sway_drag_icon));
+	if (icon == NULL) {
+		wlr_log(L_ERROR, "Allocation failed");
+		return;
+	}
+	icon->seat = seat;
+	icon->wlr_drag_icon = wlr_drag_icon;
+	wlr_drag_icon->data = icon;
+
+	icon->surface_commit.notify = drag_icon_handle_surface_commit;
+	wl_signal_add(&wlr_drag_icon->surface->events.commit, &icon->surface_commit);
+	icon->unmap.notify = drag_icon_handle_unmap;
+	wl_signal_add(&wlr_drag_icon->events.unmap, &icon->unmap);
+	icon->map.notify = drag_icon_handle_map;
+	wl_signal_add(&wlr_drag_icon->events.map, &icon->map);
+	icon->destroy.notify = drag_icon_handle_destroy;
+	wl_signal_add(&wlr_drag_icon->events.destroy, &icon->destroy);
+
+	wl_list_insert(&root_container.sway_root->drag_icons, &icon->link);
+
+	drag_icon_update_position(icon);
+}
+
 static void collect_focus_iter(struct sway_container *con, void *data) {
 	struct sway_seat *seat = data;
 	if (con->type > C_WORKSPACE) {
@@ -278,6 +365,9 @@ struct sway_seat *seat_create(struct sway_input_manager *input,
 		&seat->new_container);
 	seat->new_container.notify = handle_new_container;
 
+	wl_signal_add(&seat->wlr_seat->events.new_drag_icon, &seat->new_drag_icon);
+	seat->new_drag_icon.notify = handle_new_drag_icon;
+
 	seat->input = input;
 	wl_list_init(&seat->devices);
 
diff --git a/sway/ipc-json.c b/sway/ipc-json.c
index 5d402d1b..b9289e25 100644
--- a/sway/ipc-json.c
+++ b/sway/ipc-json.c
@@ -83,7 +83,8 @@ static const char *ipc_json_get_output_transform(enum wl_output_transform transf
 	return NULL;
 }
 
-static void ipc_json_describe_output(struct sway_container *container, json_object *object) {
+static void ipc_json_describe_output(struct sway_container *container,
+		json_object *object) {
 	struct wlr_output *wlr_output = container->sway_output->wlr_output;
 	json_object_object_add(object, "type",
 			json_object_new_string("output"));
@@ -141,12 +142,12 @@ static void ipc_json_describe_output(struct sway_container *container, json_obje
 
 json_object *ipc_json_describe_disabled_output(struct sway_output *output) {
 	struct wlr_output *wlr_output = output->wlr_output;
-	
+
 	json_object *object = json_object_new_object();
 
 	json_object_object_add(object, "type", json_object_new_string("output"));
 	json_object_object_add(object, "name",
-			wlr_output->name ? json_object_new_string(wlr_output->name) : NULL);
+			json_object_new_string(wlr_output->name));
 	json_object_object_add(object, "active", json_object_new_boolean(false));
 	json_object_object_add(object, "make",
 			json_object_new_string(wlr_output->make));
diff --git a/sway/meson.build b/sway/meson.build
index 5ff62490..c461b0ff 100644
--- a/sway/meson.build
+++ b/sway/meson.build
@@ -45,6 +45,7 @@ sway_sources = files(
 	'commands/for_window.c',
 	'commands/force_focus_wrapping.c',
 	'commands/fullscreen.c',
+	'commands/gaps.c',
 	'commands/hide_edge_borders.c',
 	'commands/kill.c',
 	'commands/mark.c',
@@ -65,6 +66,7 @@ sway_sources = files(
 	'commands/seat/fallback.c',
 	'commands/set.c',
 	'commands/show_marks.c',
+	'commands/smart_gaps.c',
 	'commands/split.c',
 	'commands/sticky.c',
 	'commands/swaybg_command.c',
diff --git a/sway/tree/arrange.c b/sway/tree/arrange.c
index e138410d..ac99c5df 100644
--- a/sway/tree/arrange.c
+++ b/sway/tree/arrange.c
@@ -41,6 +41,7 @@ static void apply_horiz_layout(struct sway_container *parent) {
 				child->width = parent->width;
 			}
 		}
+		remove_gaps(child);
 		total_width += child->width;
 	}
 	double scale = parent->width / total_width;
@@ -63,6 +64,7 @@ static void apply_horiz_layout(struct sway_container *parent) {
 		if (i == num_children - 1) {
 			child->width = parent->x + parent->width - child->x;
 		}
+		add_gaps(child);
 	}
 }
 
@@ -78,7 +80,7 @@ static void apply_vert_layout(struct sway_container *parent) {
 		parent_offset =
 			container_titlebar_height() * parent->parent->children->length;
 	}
-	size_t parent_height = parent->height - parent_offset;
+	size_t parent_height = parent->height + parent_offset;
 
 	// Calculate total height of children
 	double total_height = 0;
@@ -91,6 +93,7 @@ static void apply_vert_layout(struct sway_container *parent) {
 				child->height = parent_height;
 			}
 		}
+		remove_gaps(child);
 		total_height += child->height;
 	}
 	double scale = parent_height / total_height;
@@ -114,6 +117,7 @@ static void apply_vert_layout(struct sway_container *parent) {
 			child->height =
 				parent->y + parent_offset + parent_height - child->y;
 		}
+		add_gaps(child);
 	}
 }
 
@@ -131,10 +135,12 @@ static void apply_tabbed_or_stacked_layout(struct sway_container *parent) {
 	size_t parent_height = parent->height - parent_offset;
 	for (int i = 0; i < parent->children->length; ++i) {
 		struct sway_container *child = parent->children->items[i];
+		remove_gaps(child);
 		child->x = parent->x;
 		child->y = parent->y + parent_offset;
 		child->width = parent->width;
 		child->height = parent_height;
+		add_gaps(child);
 	}
 }
 
@@ -185,6 +191,11 @@ static void arrange_children_of(struct sway_container *parent,
 	// Recurse into child containers
 	for (int i = 0; i < parent->children->length; ++i) {
 		struct sway_container *child = parent->children->items[i];
+		if (parent->has_gaps && !child->has_gaps) {
+			child->has_gaps = true;
+			child->gaps_inner = parent->gaps_inner;
+			child->gaps_outer = parent->gaps_outer;
+		}
 		if (child->type == C_VIEW) {
 			view_autoconfigure(child->sway_view);
 		} else {
@@ -203,10 +214,12 @@ static void arrange_workspace(struct sway_container *workspace,
 	struct wlr_box *area = &output->sway_output->usable_area;
 	wlr_log(L_DEBUG, "Usable area for ws: %dx%d@%d,%d",
 			area->width, area->height, area->x, area->y);
+	remove_gaps(workspace);
 	workspace->width = area->width;
 	workspace->height = area->height;
 	workspace->x = output->x + area->x;
 	workspace->y = output->y + area->y;
+	add_gaps(workspace);
 	transaction_add_container(transaction, workspace);
 	wlr_log(L_DEBUG, "Arranging workspace '%s' at %f, %f", workspace->name,
 			workspace->x, workspace->y);
@@ -285,3 +298,41 @@ void arrange_and_commit(struct sway_container *container) {
 	arrange_windows(container, transaction);
 	transaction_commit(transaction);
 }
+
+void remove_gaps(struct sway_container *c) {
+	if (c->current_gaps == 0) {
+		wlr_log(L_DEBUG, "Removing gaps: not gapped: %p", c);
+		return;
+	}
+
+	c->width += c->current_gaps * 2;
+	c->height += c->current_gaps * 2;
+	c->x -= c->current_gaps;
+	c->y -= c->current_gaps;
+
+	c->current_gaps = 0;
+
+	wlr_log(L_DEBUG, "Removing gaps %p", c);
+}
+
+void add_gaps(struct sway_container *c) {
+	if (c->current_gaps > 0 || c->type == C_CONTAINER) {
+		wlr_log(L_DEBUG, "Not adding gaps: %p", c);
+		return;
+	}
+
+	if (c->type == C_WORKSPACE &&
+		!(config->edge_gaps || (config->smart_gaps && c->children->length > 1))) {
+		return;
+	}
+
+	double gaps = c->has_gaps ? c->gaps_inner : config->gaps_inner;
+
+	c->x += gaps;
+	c->y += gaps;
+	c->width -= 2 * gaps;
+	c->height -= 2 * gaps;
+	c->current_gaps = gaps;
+
+	wlr_log(L_DEBUG, "Adding gaps: %p", c);
+}
diff --git a/sway/tree/container.c b/sway/tree/container.c
index d312eb60..f8620b72 100644
--- a/sway/tree/container.c
+++ b/sway/tree/container.c
@@ -125,6 +125,11 @@ struct sway_container *container_create(enum sway_container_type type) {
 	wl_signal_add(&c->events.reparent, &c->reparent);
 	c->reparent.notify = handle_reparent;
 
+	c->has_gaps = false;
+	c->gaps_inner = 0;
+	c->gaps_outer = 0;
+	c->current_gaps = 0;
+
 	return c;
 }
 
diff --git a/sway/tree/layout.c b/sway/tree/layout.c
index 65b61495..3724361d 100644
--- a/sway/tree/layout.c
+++ b/sway/tree/layout.c
@@ -37,6 +37,7 @@ void layout_init(void) {
 	root_container.sway_root->output_layout = wlr_output_layout_create();
 	wl_list_init(&root_container.sway_root->outputs);
 	wl_list_init(&root_container.sway_root->xwayland_unmanaged);
+	wl_list_init(&root_container.sway_root->drag_icons);
 	wl_signal_init(&root_container.sway_root->events.new_container);
 
 	root_container.sway_root->output_layout_change.notify =
@@ -839,6 +840,8 @@ struct sway_container *container_split(struct sway_container *child,
 
 	wlr_log(L_DEBUG, "creating container %p around %p", cont, child);
 
+	remove_gaps(child);
+
 	cont->prev_layout = L_NONE;
 	cont->width = child->width;
 	cont->height = child->height;
@@ -847,6 +850,9 @@ struct sway_container *container_split(struct sway_container *child,
 
 	struct sway_seat *seat = input_manager_get_default_seat(input_manager);
 	bool set_focus = (seat_get_focus(seat) == child);
+
+	add_gaps(cont);
+
 	if (child->type == C_WORKSPACE) {
 		struct sway_container *workspace = child;
 		while (workspace->children->length) {
@@ -874,7 +880,6 @@ struct sway_container *container_split(struct sway_container *child,
 	}
 
 	container_notify_subtree_changed(cont);
-
 	return cont;
 }
 
diff --git a/sway/tree/output.c b/sway/tree/output.c
index ed7e941e..8af319d5 100644
--- a/sway/tree/output.c
+++ b/sway/tree/output.c
@@ -26,12 +26,10 @@ static void restore_workspaces(struct sway_container *output) {
 				j--;
 			}
 		}
-
-		arrange_output(other);
 	}
 
 	container_sort_workspaces(output);
-	arrange_output(output);
+	arrange_and_commit(&root_container);
 }
 
 struct sway_container *output_create(
@@ -68,6 +66,7 @@ struct sway_container *output_create(
 
 	struct sway_container *output = container_create(C_OUTPUT);
 	output->sway_output = sway_output;
+	sway_output->swayc = output;
 	output->name = strdup(name);
 	if (output->name == NULL) {
 		container_destroy(output);