diff --git a/river/Cursor.zig b/river/Cursor.zig
index 810d360..ca8745e 100644
--- a/river/Cursor.zig
+++ b/river/Cursor.zig
@@ -31,6 +31,7 @@ const server = &@import("main.zig").server;
 const util = @import("util.zig");
 
 const Config = @import("Config.zig");
+const DragIcon = @import("DragIcon.zig");
 const LayerSurface = @import("LayerSurface.zig");
 const LockSurface = @import("LockSurface.zig");
 const Output = @import("Output.zig");
@@ -523,6 +524,8 @@ fn handleTouchMotion(
         log.err("out of memory", .{});
     };
 
+    self.updateDragIcons();
+
     if (server.root.at(lx, ly)) |result| {
         self.seat.wlr_seat.touchNotifyMotion(event.time_msec, event.touch_id, result.sx, result.sy);
     }
@@ -721,6 +724,7 @@ fn processMotion(self: *Self, device: *wlr.InputDevice, time: u32, delta_x: f64,
         unaccel_dx,
         unaccel_dy,
     );
+
     var dx: f64 = delta_x;
     var dy: f64 = delta_y;
     switch (self.mode) {
@@ -728,6 +732,7 @@ fn processMotion(self: *Self, device: *wlr.InputDevice, time: u32, delta_x: f64,
             self.wlr_cursor.move(device, dx, dy);
             self.checkFocusFollowsCursor();
             self.passthrough(time);
+            self.updateDragIcons();
         },
         .down => |down| {
             self.wlr_cursor.move(device, dx, dy);
@@ -736,6 +741,7 @@ fn processMotion(self: *Self, device: *wlr.InputDevice, time: u32, delta_x: f64,
                 down.sx + (self.wlr_cursor.x - down.lx),
                 down.sy + (self.wlr_cursor.y - down.ly),
             );
+            self.updateDragIcons();
         },
         .move => |*data| {
             dx += data.delta_x;
@@ -933,3 +939,30 @@ fn warp(self: *Self) void {
         }
     }
 }
+
+fn updateDragIcons(self: *Self) void {
+    var it = server.root.layers.drag_icons.children.iterator(.forward);
+    while (it.next()) |node| {
+        const icon = @intToPtr(*DragIcon, node.data);
+
+        if (icon.wlr_drag_icon.drag.seat != self.seat.wlr_seat) continue;
+
+        switch (icon.wlr_drag_icon.drag.grab_type) {
+            .keyboard => unreachable,
+            .keyboard_pointer => {
+                icon.tree.node.setPosition(
+                    @floatToInt(c_int, self.wlr_cursor.x),
+                    @floatToInt(c_int, self.wlr_cursor.y),
+                );
+            },
+            .keyboard_touch => {
+                const touch_id = icon.wlr_drag_icon.drag.touch_id;
+                const point = self.touch_points.get(touch_id) orelse continue;
+                icon.tree.node.setPosition(
+                    @floatToInt(c_int, point.lx),
+                    @floatToInt(c_int, point.ly),
+                );
+            },
+        }
+    }
+}
diff --git a/river/DragIcon.zig b/river/DragIcon.zig
index 11683ea..bba55f2 100644
--- a/river/DragIcon.zig
+++ b/river/DragIcon.zig
@@ -23,40 +23,70 @@ const wl = @import("wayland").server.wl;
 const server = &@import("main.zig").server;
 const util = @import("util.zig");
 
-const Seat = @import("Seat.zig");
+const SceneNodeData = @import("SceneNodeData.zig");
 
-seat: *Seat,
 wlr_drag_icon: *wlr.Drag.Icon,
 
-// Accumulated x/y surface offset from the cursor/touch point position.
-sx: i32 = 0,
-sy: i32 = 0,
+tree: *wlr.SceneTree,
+surface: *wlr.SceneTree,
 
-// Always active
 destroy: wl.Listener(*wlr.Drag.Icon) = wl.Listener(*wlr.Drag.Icon).init(handleDestroy),
+map: wl.Listener(*wlr.Drag.Icon) = wl.Listener(*wlr.Drag.Icon).init(handleMap),
+unmap: wl.Listener(*wlr.Drag.Icon) = wl.Listener(*wlr.Drag.Icon).init(handleUnmap),
 commit: wl.Listener(*wlr.Surface) = wl.Listener(*wlr.Surface).init(handleCommit),
 
-pub fn init(drag_icon: *DragIcon, seat: *Seat, wlr_drag_icon: *wlr.Drag.Icon) void {
-    drag_icon.* = .{ .seat = seat, .wlr_drag_icon = wlr_drag_icon };
+pub fn create(wlr_drag_icon: *wlr.Drag.Icon) error{OutOfMemory}!void {
+    const tree = try server.root.layers.drag_icons.createSceneTree();
+    errdefer tree.node.destroy();
+
+    const drag_icon = try util.gpa.create(DragIcon);
+    errdefer util.gpa.destroy(drag_icon);
+
+    drag_icon.* = .{
+        .wlr_drag_icon = wlr_drag_icon,
+        .tree = tree,
+        .surface = try tree.createSceneSubsurfaceTree(wlr_drag_icon.surface),
+    };
+    tree.node.data = @ptrToInt(drag_icon);
+
+    tree.node.setEnabled(wlr_drag_icon.mapped);
 
     wlr_drag_icon.events.destroy.add(&drag_icon.destroy);
+    wlr_drag_icon.events.map.add(&drag_icon.map);
+    wlr_drag_icon.events.unmap.add(&drag_icon.unmap);
     wlr_drag_icon.surface.events.commit.add(&drag_icon.commit);
 }
 
 fn handleDestroy(listener: *wl.Listener(*wlr.Drag.Icon), _: *wlr.Drag.Icon) void {
     const drag_icon = @fieldParentPtr(DragIcon, "destroy", listener);
 
-    drag_icon.seat.drag_icon = null;
+    drag_icon.tree.node.destroy();
 
     drag_icon.destroy.link.remove();
+    drag_icon.map.link.remove();
+    drag_icon.unmap.link.remove();
     drag_icon.commit.link.remove();
 
     util.gpa.destroy(drag_icon);
 }
 
+fn handleMap(listener: *wl.Listener(*wlr.Drag.Icon), _: *wlr.Drag.Icon) void {
+    const drag_icon = @fieldParentPtr(DragIcon, "map", listener);
+
+    drag_icon.tree.node.setEnabled(true);
+}
+
+fn handleUnmap(listener: *wl.Listener(*wlr.Drag.Icon), _: *wlr.Drag.Icon) void {
+    const drag_icon = @fieldParentPtr(DragIcon, "unmap", listener);
+
+    drag_icon.tree.node.setEnabled(false);
+}
+
 fn handleCommit(listener: *wl.Listener(*wlr.Surface), surface: *wlr.Surface) void {
     const drag_icon = @fieldParentPtr(DragIcon, "commit", listener);
 
-    drag_icon.sx += surface.current.dx;
-    drag_icon.sy += surface.current.dy;
+    drag_icon.surface.node.setPosition(
+        drag_icon.surface.node.x + surface.current.dx,
+        drag_icon.surface.node.y + surface.current.dy,
+    );
 }
diff --git a/river/Output.zig b/river/Output.zig
index 036495c..2917bad 100644
--- a/river/Output.zig
+++ b/river/Output.zig
@@ -68,6 +68,7 @@ tree: *wlr.SceneTree,
 normal_content: *wlr.SceneTree,
 locked_content: *wlr.SceneTree,
 
+/// Child nodes of normal_content
 layers: struct {
     background_color_rect: *wlr.SceneRect,
     /// Background layer shell layer
@@ -82,7 +83,7 @@ layers: struct {
     fullscreen: *wlr.SceneTree,
     /// Overlay layer shell layer
     overlay: *wlr.SceneTree,
-    /// Xdg popups, Xwayland override redirect windows
+    /// xdg-popups of views and layer-shell surfaces
     popups: *wlr.SceneTree,
 },
 
@@ -166,7 +167,7 @@ pub fn create(wlr_output: *wlr.Output) !void {
     var height: c_int = undefined;
     wlr_output.effectiveResolution(&width, &height);
 
-    const tree = try server.root.scene.tree.createSceneTree();
+    const tree = try server.root.layers.outputs.createSceneTree();
     const normal_content = try tree.createSceneTree();
 
     self.* = .{
diff --git a/river/Root.zig b/river/Root.zig
index 4e1e5b9..01a2b10 100644
--- a/river/Root.zig
+++ b/river/Root.zig
@@ -37,6 +37,16 @@ const ViewStack = @import("view_stack.zig").ViewStack;
 const XwaylandOverrideRedirect = @import("XwaylandOverrideRedirect.zig");
 
 scene: *wlr.Scene,
+/// All direct children of the root scene node
+layers: struct {
+    /// Parent tree for output trees which have their position updated when
+    /// outputs are moved in the layout.
+    outputs: *wlr.SceneTree,
+    /// Drag icons which have a position in layout coordinates that is updated
+    /// on cursor/touch point movement.
+    /// This tree is ignored by Root.at()
+    drag_icons: *wlr.SceneTree,
+},
 
 new_output: wl.Listener(*wlr.Output) = wl.Listener(*wlr.Output).init(handleNewOutput),
 
@@ -94,12 +104,19 @@ pub fn init(self: *Self) !void {
     const transaction_timer = try event_loop.addTimer(*Self, handleTransactionTimeout, self);
     errdefer transaction_timer.remove();
 
+    const outputs = try scene.tree.createSceneTree();
+
     // TODO get rid of this hack somehow
     const noop_wlr_output = try server.headless_backend.headlessAddOutput(1920, 1080);
-    const noop_tree = try scene.tree.createSceneTree();
+    const noop_tree = try outputs.createSceneTree();
     noop_tree.node.setEnabled(false);
+
     self.* = .{
         .scene = scene,
+        .layers = .{
+            .outputs = outputs,
+            .drag_icons = try scene.tree.createSceneTree(),
+        },
         .output_layout = output_layout,
         .output_manager = try wlr.OutputManagerV1.create(server.wl_server),
         .power_manager = try wlr.OutputPowerManagerV1.create(server.wl_server),
@@ -153,11 +170,12 @@ pub const AtResult = struct {
     },
 };
 
-/// Return information about what is currently rendered at the given layout coordinates.
+/// Return information about what is currently rendered in the Root.layers.outputs
+/// tree at the given layout coordinates.
 pub fn at(self: Self, lx: f64, ly: f64) ?AtResult {
     var sx: f64 = undefined;
     var sy: f64 = undefined;
-    const node_at = self.scene.tree.node.at(lx, ly, &sx, &sy) orelse return null;
+    const node_at = self.layers.outputs.node.at(lx, ly, &sx, &sy) orelse return null;
 
     const surface: ?*wlr.Surface = blk: {
         if (node_at.type == .buffer) {
diff --git a/river/Seat.zig b/river/Seat.zig
index d53532c..3dd6883 100644
--- a/river/Seat.zig
+++ b/river/Seat.zig
@@ -92,7 +92,6 @@ drag: enum {
     pointer,
     touch,
 } = .none,
-drag_icon: ?*DragIcon = null,
 
 request_set_selection: wl.Listener(*wlr.Seat.event.RequestSetSelection) =
     wl.Listener(*wlr.Seat.event.RequestSetSelection).init(handleRequestSetSelection),
@@ -573,13 +572,11 @@ fn handleStartDrag(listener: *wl.Listener(*wlr.Drag), wlr_drag: *wlr.Drag) void
     wlr_drag.events.destroy.add(&self.drag_destroy);
 
     if (wlr_drag.icon) |wlr_drag_icon| {
-        const drag_icon = util.gpa.create(DragIcon) catch {
+        DragIcon.create(wlr_drag_icon) catch {
             log.err("out of memory", .{});
             wlr_drag.seat_client.client.postNoMemory();
             return;
         };
-        drag_icon.init(self, wlr_drag_icon);
-        self.drag_icon = drag_icon;
     }
 }