diff --git a/editor/src/components/canvas/canvas-floating-toolbars.tsx b/editor/src/components/canvas/canvas-floating-toolbars.tsx
index eac19c39c880..87e1e7041f26 100644
--- a/editor/src/components/canvas/canvas-floating-toolbars.tsx
+++ b/editor/src/components/canvas/canvas-floating-toolbars.tsx
@@ -1,11 +1,11 @@
 import React from 'react'
 import { FlexColumn, FlexRow } from '../../uuiui'
 import { CanvasToolbar } from '../editor/canvas-toolbar'
-import { ClosedPanels } from '../editor/closed-panels'
 import { Substores, useEditorState } from '../editor/store/store-hook'
 import { ErrorOverlayComponent } from './canvas-error-overlay'
 import { SafeModeErrorOverlay } from './canvas-wrapper-component'
 import { CanvasStrategyPicker } from './controls/select-mode/canvas-strategy-picker'
+import { TestMenu } from '../titlebar/test-menu'
 
 export const CanvasFloatingToolbars = React.memo((props: { style: React.CSSProperties }) => {
   const safeMode = useEditorState(
@@ -32,21 +32,20 @@ export const CanvasFloatingToolbars = React.memo((props: { style: React.CSSPrope
           position: 'absolute',
           top: 0,
           alignItems: 'flex-start',
-          justifyContent: 'space-between',
+          justifyContent: 'center',
           padding: 6,
           width: '100%',
           height: '100%',
         }}
       >
-        <ClosedPanels side='left' />
         <FlexRow style={{ width: 250, alignItems: 'flex-start', gap: 10 }}>
           <CanvasToolbar />
           <CanvasStrategyPicker />
         </FlexRow>
-        <ClosedPanels side='right' />
       </FlexRow>
-      {/* The error overlays are deliberately the last here so they hide other canvas UI */}
+      {/* The error overlays are deliberately the last here so they hide other canvas UI, except the test menu */}
       {safeMode ? <SafeModeErrorOverlay /> : <ErrorOverlayComponent />}
+      <TestMenu />
     </FlexColumn>
   )
 })
diff --git a/editor/src/components/canvas/canvas-strategies/canvas-strategies.tsx b/editor/src/components/canvas/canvas-strategies/canvas-strategies.tsx
index c8c59d5527e3..ac434d214eef 100644
--- a/editor/src/components/canvas/canvas-strategies/canvas-strategies.tsx
+++ b/editor/src/components/canvas/canvas-strategies/canvas-strategies.tsx
@@ -229,6 +229,7 @@ function getInteractionTargetFromEditorState(editor: EditorState): InteractionTa
     case 'textEdit':
     case 'comment':
     case 'follow':
+    case 'panels':
       return targetPaths(editor.selectedViews)
     default:
       assertNever(editor.mode)
diff --git a/editor/src/components/canvas/controls/panels-mode/panels-mode-hooks.ts b/editor/src/components/canvas/controls/panels-mode/panels-mode-hooks.ts
new file mode 100644
index 000000000000..0f642ea90f76
--- /dev/null
+++ b/editor/src/components/canvas/controls/panels-mode/panels-mode-hooks.ts
@@ -0,0 +1,12 @@
+import type { MouseCallbacks } from '../select-mode/select-mode-hooks'
+import { NO_OP } from '../../../../core/shared/utils'
+
+const noop: MouseCallbacks = {
+  onMouseMove: NO_OP,
+  onMouseDown: NO_OP,
+  onMouseUp: NO_OP,
+}
+
+export function usePanelsModeSelectAndHover(): MouseCallbacks {
+  return noop
+}
diff --git a/editor/src/components/canvas/controls/select-mode/select-mode-hooks.tsx b/editor/src/components/canvas/controls/select-mode/select-mode-hooks.tsx
index a226f17ffdcf..fc368de424f8 100644
--- a/editor/src/components/canvas/controls/select-mode/select-mode-hooks.tsx
+++ b/editor/src/components/canvas/controls/select-mode/select-mode-hooks.tsx
@@ -64,6 +64,7 @@ import { getAllLockedElementPaths } from '../../../../core/shared/element-lockin
 import { treatElementAsGroupLike } from '../../canvas-strategies/strategies/group-helpers'
 import { useCommentModeSelectAndHover } from '../comment-mode/comment-mode-hooks'
 import { useFollowModeSelectAndHover } from '../follow-mode/follow-mode-hooks'
+import { usePanelsModeSelectAndHover } from '../panels-mode/panels-mode-hooks'
 
 const DRAG_START_THRESHOLD = 2
 
@@ -805,6 +806,7 @@ export function useSelectAndHover(
     mode?.type === 'comment' ? mode.comment : null,
   )
   const followModeCallbacks = useFollowModeSelectAndHover()
+  const panelsModeCallbacks = usePanelsModeSelectAndHover()
 
   if (hasInteractionSession) {
     return {
@@ -826,6 +828,8 @@ export function useSelectAndHover(
         return commentModeCallbacks
       case 'follow':
         return followModeCallbacks
+      case 'panels':
+        return panelsModeCallbacks
       default:
         const _exhaustiveCheck: never = modeType
         throw new Error(`Unhandled editor mode ${JSON.stringify(modeType)}`)
diff --git a/editor/src/components/editor/canvas-toolbar-states.tsx b/editor/src/components/editor/canvas-toolbar-states.tsx
index 091326327fbe..01121a624967 100644
--- a/editor/src/components/editor/canvas-toolbar-states.tsx
+++ b/editor/src/components/editor/canvas-toolbar-states.tsx
@@ -27,6 +27,7 @@ type ToolbarMode =
   | { primary: 'play' }
   | { primary: 'comment' }
   | { primary: 'zoom' }
+  | { primary: 'panels' }
 
 export function useToolbarMode(): ToolbarMode {
   const editorMode = useEditorState(
@@ -124,6 +125,10 @@ export function useToolbarMode(): ToolbarMode {
     }
   }
 
+  if (editorMode.type === 'panels') {
+    return { primary: 'panels' }
+  }
+
   // Edit Mode
   if (nothingSelected) {
     return { primary: 'edit', secondary: 'nothing-selected' }
diff --git a/editor/src/components/editor/canvas-toolbar.tsx b/editor/src/components/editor/canvas-toolbar.tsx
index fbac92139647..801c4ce49268 100644
--- a/editor/src/components/editor/canvas-toolbar.tsx
+++ b/editor/src/components/editor/canvas-toolbar.tsx
@@ -61,6 +61,7 @@ import { insertComponentPickerItem } from '../navigator/navigator-item/component
 import { useAtom } from 'jotai'
 import { ActiveRemixSceneAtom } from '../canvas/remix/utopia-remix-root-component'
 import * as EP from '../../core/shared/element-path'
+import { PanelsPicker } from '../navigator/navigator-item/panels-picker'
 
 export const InsertMenuButtonTestId = 'insert-menu-button'
 export const PlayModeButtonTestId = 'canvas-toolbar-play-mode'
@@ -267,6 +268,14 @@ export const CanvasToolbar = React.memo(() => {
     }
   }, [canvasToolbarMode.primary, dispatch, dispatchSwitchToSelectModeCloseMenus])
 
+  const togglePanelsButtonClicked = React.useCallback(() => {
+    if (canvasToolbarMode.primary === 'panels') {
+      dispatchSwitchToSelectModeCloseMenus()
+    } else {
+      dispatch([switchEditorMode(EditorModes.panelsMode())])
+    }
+  }, [canvasToolbarMode.primary, dispatch, dispatchSwitchToSelectModeCloseMenus])
+
   const currentStrategyState = useEditorState(
     Substores.restOfStore,
     (store) => store.strategyState,
@@ -423,6 +432,16 @@ export const CanvasToolbar = React.memo(() => {
           </div>,
         )}
         <Separator />
+        <Tooltip title='Manage panels' placement='bottom'>
+          <InsertModeButton
+            testid={commentButtonTestId}
+            iconType={'panels'}
+            iconCategory='tools'
+            primary={canvasToolbarMode.primary === 'panels'}
+            onClick={togglePanelsButtonClicked}
+            keepActiveInLiveMode
+          />
+        </Tooltip>
         <Tooltip title='Zoom to 100%' placement='bottom'>
           <SquareButton
             style={{
@@ -510,6 +529,18 @@ export const CanvasToolbar = React.memo(() => {
         : null}
       {/* Live Mode */}
       {showRemixNavBar ? wrapInSubmenu(<RemixNavigationBar />) : null}
+      {/* Panels Mode */}
+      {canvasToolbarMode.primary === 'panels'
+        ? wrapInSubmenu(
+            <FlexColumn style={{ padding: '3px 8px 0 8px', flexGrow: 1 }}>
+              <FlexRow>
+                <Tile style={{ flexGrow: 1 }}>
+                  <PanelsPicker />
+                </Tile>
+              </FlexRow>
+            </FlexColumn>,
+          )
+        : null}
     </FlexColumn>
   )
 })
diff --git a/editor/src/components/editor/closed-panels.tsx b/editor/src/components/editor/closed-panels.tsx
deleted file mode 100644
index a37a6072f3f9..000000000000
--- a/editor/src/components/editor/closed-panels.tsx
+++ /dev/null
@@ -1,204 +0,0 @@
-/** @jsxRuntime classic */
-/** @jsx jsx */
-/** @jsxFrag React.Fragment */
-import { jsx } from '@emotion/react'
-import React, { useState } from 'react'
-import type { TooltipProps } from '../../uuiui'
-import { UtopiaStyles, UtopiaTheme, colorTheme } from '../../uuiui'
-import { FlexColumn, Icn, SquareButton, Tooltip as TooltipWithoutSpanFixme } from '../../uuiui'
-import { useDispatch } from './store/dispatch-context'
-import { Substores, useEditorState } from './store/store-hook'
-import { togglePanel } from './actions/action-creators'
-import { stopPropagation } from '../inspector/common/inspector-utils'
-import { setFocus } from '../common/actions'
-import { useAtom } from 'jotai'
-import { GridPanelsStateAtom } from '../canvas/grid-panels-state'
-import type { StoredLayout, StoredPanel } from '../canvas/stored-layout'
-import { assertNever } from '../../core/shared/utils'
-import { TestMenu } from '../titlebar/test-menu'
-import { ToastRenderer } from './editor-component'
-
-function getPanelColumn(side: 'left' | 'right', panels: StoredLayout): Array<StoredPanel> {
-  switch (side) {
-    case 'left':
-      return [...panels[0].panels, ...panels[1].panels]
-    case 'right':
-      return [...panels[2].panels, ...panels[3].panels]
-    default:
-      assertNever(side)
-  }
-}
-
-export const ClosedPanels = React.memo((props: { side: 'left' | 'right' }) => {
-  const dispatch = useDispatch()
-  const [panelState] = useAtom(GridPanelsStateAtom)
-  const thisColumn = getPanelColumn(props.side, panelState)
-
-  const inspectorInvisible = useEditorState(
-    Substores.restOfEditor,
-    (store) => {
-      const theInspectorInvisible = !store.editor.rightMenu.visible
-      const inspectorOnThisSide = thisColumn.some((panel) => panel.name === 'inspector')
-      return theInspectorInvisible && inspectorOnThisSide
-    },
-    'SettingsPanel inspector.minimized',
-  )
-
-  const toggleInspectorVisible = React.useCallback(() => {
-    dispatch([togglePanel('rightmenu')])
-  }, [dispatch])
-
-  const navigatorInvisible = useEditorState(
-    Substores.restOfEditor,
-    (store) => {
-      const theNavigatorInvisible = !store.editor.leftMenu.visible
-      const navigatorOnThisSide = thisColumn.some((panel) => panel.name === 'navigator')
-      return theNavigatorInvisible && navigatorOnThisSide
-    },
-    'SettingsPanel navigator.minimised',
-  )
-
-  const toggleNavigatorVisible = React.useCallback(() => {
-    dispatch([togglePanel('leftmenu')])
-  }, [dispatch])
-
-  const editorInvisible = useEditorState(
-    Substores.restOfEditor,
-    (store) => {
-      const theEditorInvisible = !store.editor.interfaceDesigner.codePaneVisible
-      const codeEditorOnThisSide = thisColumn.some((panel) => panel.name === 'code-editor')
-      return theEditorInvisible && codeEditorOnThisSide
-    },
-    'SettingsPanel navigator.minimised',
-  )
-
-  const toggleCodeEditorVisible = React.useCallback(
-    () => dispatch([togglePanel('codeEditor')]),
-    [dispatch],
-  )
-
-  const focusCanvasOnMouseDown = React.useCallback(
-    (event: React.MouseEvent<Element>) => {
-      stopPropagation(event)
-      dispatch([setFocus('canvas')], 'everyone')
-    },
-    [dispatch],
-  )
-
-  const [isVisible, setIsVisible] = useState(false)
-  const setIsVisibleTrue = React.useCallback(() => {
-    setIsVisible(true)
-  }, [])
-
-  const setIsVisibleFalse = React.useCallback(() => {
-    setIsVisible(false)
-  }, [])
-
-  return (
-    <FlexColumn
-      style={{
-        alignItems: props.side === 'left' ? 'flex-start' : 'flex-end',
-        justifyContent: 'space-between',
-        height: '100%',
-        width: 32,
-      }}
-    >
-      <FlexColumn
-        // Mouse events should never go through this component.
-        onClick={stopPropagation}
-        onMouseDown={focusCanvasOnMouseDown}
-        onMouseUp={stopPropagation}
-        style={{
-          gap: 10,
-          width: 32,
-          pointerEvents: 'initial',
-        }}
-        onMouseEnter={setIsVisibleTrue}
-        onMouseLeave={setIsVisibleFalse}
-      >
-        {navigatorInvisible ? (
-          <Tooltip title='Toggle Navigator (⌘⌥1)' placement='bottom'>
-            <ClosedPanelButton
-              iconType='navigator'
-              onClick={toggleNavigatorVisible}
-              visible={isVisible}
-            />
-          </Tooltip>
-        ) : null}
-        {editorInvisible ? (
-          <Tooltip title='Toggle Code Editor (⌘.)' placement='bottom'>
-            <ClosedPanelButton
-              iconType='cody'
-              onClick={toggleCodeEditorVisible}
-              visible={isVisible}
-            />
-          </Tooltip>
-        ) : null}
-        {inspectorInvisible ? (
-          <Tooltip title='Toggle Inspector (⌘⌥2)' placement='bottom'>
-            <ClosedPanelButton
-              iconType='inspector'
-              onClick={toggleInspectorVisible}
-              visible={isVisible}
-            />
-          </Tooltip>
-        ) : null}
-      </FlexColumn>
-      {props.side === 'left' ? <TestMenu /> : <ToastRenderer />}
-    </FlexColumn>
-  )
-})
-ClosedPanels.displayName = 'ClosedPanels'
-
-interface ClosedPanelButtonProps {
-  iconType: string
-  visible?: boolean
-  onClick: (event: React.MouseEvent<Element>) => void
-}
-const ClosedPanelButton = React.memo((props: ClosedPanelButtonProps) => {
-  const [isHovered, setIsHovered] = useState(false)
-  const setIsHoveredTrue = React.useCallback(() => {
-    setIsHovered(true)
-  }, [])
-
-  const setIsHoveredFalse = React.useCallback(() => {
-    setIsHovered(false)
-  }, [])
-
-  return (
-    <SquareButton
-      style={{
-        background: props.visible ? colorTheme.bg1.value : colorTheme.canvasBackground.value,
-        overflow: 'hidden',
-        boxShadow: `inset 0px 1px 3px 0px #ffffff10, ${UtopiaStyles.shadowStyles.low.boxShadow}`,
-        pointerEvents: 'initial',
-        display: 'flex',
-        flexDirection: 'row',
-        width: 28,
-        height: 28,
-        borderRadius: 28,
-        transition: 'all .1s .1s ease-in-out',
-      }}
-      onClick={props.onClick}
-      onMouseEnter={setIsHoveredTrue}
-      onMouseLeave={setIsHoveredFalse}
-    >
-      <Icn
-        category='semantic'
-        type={props.iconType}
-        width={22}
-        height={22}
-        color={isHovered ? 'dynamic' : 'main'}
-      />
-    </SquareButton>
-  )
-})
-
-const Tooltip = (props: TooltipProps) => {
-  return (
-    <TooltipWithoutSpanFixme {...props}>
-      {/* TODO why do we need to wrap the children in a span? */}
-      <span>{props.children}</span>
-    </TooltipWithoutSpanFixme>
-  )
-}
diff --git a/editor/src/components/editor/editor-modes.ts b/editor/src/components/editor/editor-modes.ts
index 94323918a1b6..8c56b148b70b 100644
--- a/editor/src/components/editor/editor-modes.ts
+++ b/editor/src/components/editor/editor-modes.ts
@@ -165,7 +165,7 @@ export interface CommentMode {
   isDragging: IsDragging
 }
 
-export type SelectModeToolbarMode = 'none' | 'pseudo-insert'
+export type SelectModeToolbarMode = 'none' | 'pseudo-insert' | 'panels'
 
 export interface SelectMode {
   type: 'select'
@@ -200,6 +200,10 @@ export interface FollowMode {
   connectionId: number // the connection ID of the followed player
 }
 
+export interface PanelsMode {
+  type: 'panels'
+}
+
 export type Mode =
   | InsertMode
   | SelectMode
@@ -207,6 +211,7 @@ export type Mode =
   | TextEditMode
   | CommentMode
   | FollowMode
+  | PanelsMode
 export type PersistedMode = SelectMode | LiveCanvasMode
 
 export const EditorModes = {
@@ -262,6 +267,11 @@ export const EditorModes = {
       connectionId: connectionId,
     }
   },
+  panelsMode: function (): PanelsMode {
+    return {
+      type: 'panels',
+    }
+  },
 }
 
 export function isInsertMode(value: Mode): value is InsertMode {
@@ -295,6 +305,7 @@ export function convertModeToSavedMode(mode: Mode): PersistedMode {
     case 'textEdit':
     case 'comment':
     case 'follow':
+    case 'panels':
       return EditorModes.selectMode(null, false, 'none')
   }
 }
diff --git a/editor/src/components/editor/store/store-deep-equality-instances.ts b/editor/src/components/editor/store/store-deep-equality-instances.ts
index 8f5cef751b70..7bae85303aa3 100644
--- a/editor/src/components/editor/store/store-deep-equality-instances.ts
+++ b/editor/src/components/editor/store/store-deep-equality-instances.ts
@@ -530,6 +530,7 @@ import type {
   SelectModeToolbarMode,
   CommentMode,
   FollowMode,
+  PanelsMode,
   CommentId,
   NewComment,
   ExistingComment,
@@ -4018,6 +4019,12 @@ export const FollowModeKeepDeepEquality: KeepDeepEqualityCall<FollowMode> = comb
   EditorModes.followMode,
 )
 
+export const PanelsModeKeepDeepEquality: KeepDeepEqualityCall<PanelsMode> = combine1EqualityCall(
+  (mode) => mode.type,
+  StringKeepDeepEquality,
+  EditorModes.panelsMode,
+)
+
 export const ModeKeepDeepEquality: KeepDeepEqualityCall<Mode> = (oldValue, newValue) => {
   switch (oldValue.type) {
     case 'insert':
@@ -4050,6 +4057,11 @@ export const ModeKeepDeepEquality: KeepDeepEqualityCall<Mode> = (oldValue, newVa
         return FollowModeKeepDeepEquality(newValue, oldValue)
       }
       break
+    case 'panels':
+      if (newValue.type === oldValue.type) {
+        return PanelsModeKeepDeepEquality(oldValue, newValue)
+      }
+      break
     default:
       assertNever(oldValue)
   }
diff --git a/editor/src/components/navigator/navigator-item/panels-picker.tsx b/editor/src/components/navigator/navigator-item/panels-picker.tsx
new file mode 100644
index 000000000000..7f6af34440bd
--- /dev/null
+++ b/editor/src/components/navigator/navigator-item/panels-picker.tsx
@@ -0,0 +1,87 @@
+/** @jsxRuntime classic */
+/** @jsx jsx */
+import { jsx } from '@emotion/react'
+import React from 'react'
+import { CheckboxInput, colorTheme } from '../../../uuiui'
+import { FlexRow } from 'utopia-api'
+import { Substores, useEditorState } from '../../../components/editor/store/store-hook'
+import { togglePanel } from '../../../components/editor/actions/action-creators'
+import { useDispatch } from '../../../components/editor/store/dispatch-context'
+
+export const PanelsPicker = React.memo(() => {
+  const dispatch = useDispatch()
+
+  const { codeEditorVisible, navigatorVisible, inspectorVisible } = useEditorState(
+    Substores.restOfEditor,
+    (store) => {
+      return {
+        codeEditorVisible: store.editor.interfaceDesigner.codePaneVisible,
+        navigatorVisible: store.editor.leftMenu.visible,
+        inspectorVisible: store.editor.rightMenu.visible,
+      }
+    },
+    'storedLayoutToResolvedPanels panel visibility',
+  )
+
+  const toggleNavigator = React.useCallback(() => {
+    dispatch([togglePanel('leftmenu')])
+  }, [dispatch])
+
+  const toggleCodeEditor = React.useCallback(() => {
+    dispatch([togglePanel('codeEditor')])
+  }, [dispatch])
+
+  const toggleInspector = React.useCallback(() => {
+    dispatch([togglePanel('rightmenu')])
+  }, [dispatch])
+
+  return (
+    <div
+      style={{
+        display: 'flex',
+        flexDirection: 'column',
+        gap: 0,
+        width: '100%',
+        height: '100%',
+        borderRadius: 10,
+        padding: '8px 0',
+      }}
+    >
+      <CheckboxRow label='Navigator' checked={navigatorVisible} onChange={toggleNavigator} />
+      <CheckboxRow label='Code Editor' checked={codeEditorVisible} onChange={toggleCodeEditor} />
+      <CheckboxRow label='Inspector' checked={inspectorVisible} onChange={toggleInspector} />
+    </div>
+  )
+})
+
+interface CheckboxRowProps {
+  checked: boolean
+  label: string
+  onChange: () => void
+}
+
+const CheckboxRow = React.memo((props: CheckboxRowProps) => {
+  const { checked, label, onChange } = props
+
+  const id = `input-${label}`
+
+  return (
+    <FlexRow
+      css={{}}
+      style={{
+        alignItems: 'center',
+        cursor: 'pointer',
+        borderRadius: 4,
+        paddingLeft: 8,
+        color: '#EEE',
+      }}
+    >
+      <FlexRow css={{ gap: 10, height: 28, alignItems: 'center' }}>
+        <CheckboxInput id={id} checked={checked} onChange={onChange} />
+        <label htmlFor={id} style={{ color: colorTheme.textColor.value }}>
+          {label}
+        </label>
+      </FlexRow>
+    </FlexRow>
+  )
+})
diff --git a/editor/src/components/titlebar/test-menu.tsx b/editor/src/components/titlebar/test-menu.tsx
index f79b959ab2d0..017c9fb325a1 100644
--- a/editor/src/components/titlebar/test-menu.tsx
+++ b/editor/src/components/titlebar/test-menu.tsx
@@ -93,6 +93,8 @@ export const TestMenu = React.memo(() => {
   return (
     <div
       style={{
+        position: 'absolute',
+        bottom: 6,
         boxShadow: UtopiaStyles.shadowStyles.low.boxShadow,
         borderRadius: '15px',
         paddingLeft: 8,
diff --git a/editor/src/templates/editor-canvas.tsx b/editor/src/templates/editor-canvas.tsx
index 5635b684bdb2..aa2eec900f55 100644
--- a/editor/src/templates/editor-canvas.tsx
+++ b/editor/src/templates/editor-canvas.tsx
@@ -147,20 +147,19 @@ function cursorForHoveredControl(
 
 function getDefaultCursorForMode(mode: Mode): CSSCursor {
   switch (mode.type) {
-    case 'select':
-      return CSSCursor.Select
     case 'insert':
       return CSSCursor.Insert
     case 'live':
       return CSSCursor.BrowserAuto
-    case 'textEdit':
-      return CSSCursor.Select
     case 'comment':
       if (isCommentMode(mode)) {
         return CSSCursor.Comment
       }
       return CSSCursor.Select
+    case 'select':
     case 'follow':
+    case 'textEdit':
+    case 'panels':
       return CSSCursor.Select
     default:
       const _exhaustiveCheck: never = mode