diff --git a/Common/CPlane.cpp b/Common/CPlane.cpp
new file mode 100644
index 00000000..0ec3e607
--- /dev/null
+++ b/Common/CPlane.cpp
@@ -0,0 +1,44 @@
+#include "CPlane.h"
+
+CPlane::CPlane()
+{
+    mNormal = CVector3f::skUp;
+    mDist = 0.f;
+}
+
+CPlane::CPlane(const CVector3f& normal, float dist)
+{
+    mNormal = normal;
+    mDist = dist;
+}
+
+CPlane::CPlane(const CVector3f& normal, const CVector3f& origin)
+{
+    Redefine(normal, origin);
+}
+
+void CPlane::Redefine(const CVector3f& normal, const CVector3f& origin)
+{
+    mNormal = normal;
+    mDist = -normal.Dot(origin);
+}
+
+CVector3f CPlane::Normal() const
+{
+    return mNormal;
+}
+
+float CPlane::Dist() const
+{
+    return mDist;
+}
+
+void CPlane::SetNormal(const CVector3f& normal)
+{
+    mNormal = normal;
+}
+
+void CPlane::SetDist(float dist)
+{
+    mDist = dist;
+}
diff --git a/Common/CPlane.h b/Common/CPlane.h
new file mode 100644
index 00000000..7a06dd20
--- /dev/null
+++ b/Common/CPlane.h
@@ -0,0 +1,23 @@
+#ifndef CPLANE_H
+#define CPLANE_H
+
+#include "CVector3f.h"
+
+class CPlane
+{
+    CVector3f mNormal;
+    float mDist;
+
+public:
+    CPlane();
+    CPlane(const CVector3f& normal, float dist);
+    CPlane(const CVector3f& normal, const CVector3f& origin);
+
+    void Redefine(const CVector3f& normal, const CVector3f& origin);
+    CVector3f Normal() const;
+    float Dist() const;
+    void SetNormal(const CVector3f& normal);
+    void SetDist(float dist);
+};
+
+#endif // CPLANE_H
diff --git a/Common/CQuaternion.cpp b/Common/CQuaternion.cpp
index 3208743e..4fbdd369 100644
--- a/Common/CQuaternion.cpp
+++ b/Common/CQuaternion.cpp
@@ -18,6 +18,47 @@ CQuaternion::CQuaternion(float _x, float _y, float _z, float _w)
     w = _w;
 }
 
+CVector3f CQuaternion::XAxis()
+{
+    return (*this * CVector3f::skUnitX);
+}
+
+CVector3f CQuaternion::YAxis()
+{
+    return (*this * CVector3f::skUnitY);
+}
+
+CVector3f CQuaternion::ZAxis()
+{
+    return (*this * CVector3f::skUnitZ);
+}
+
+CQuaternion CQuaternion::Inverse()
+{
+    float fNorm = (w * w) + (x * x) + (y * y) + (z * z);
+
+    if (fNorm > 0.f)
+    {
+        float fInvNorm = 1.f / fNorm;
+        return CQuaternion(-x * fInvNorm, -y * fInvNorm, -z * fInvNorm, w * fInvNorm);
+    }
+    else
+        return CQuaternion::skZero;
+}
+
+// ************ OPERATORS ************
+CVector3f CQuaternion::operator*(const CVector3f& vec) const
+{
+    CVector3f uv, uuv;
+    CVector3f qvec(x, y, z);
+    uv = qvec.Cross(vec);
+    uuv = qvec.Cross(uv);
+    uv *= (2.0f * w);
+    uuv *= 2.0f;
+
+    return vec + uv + uuv;
+}
+
 CQuaternion CQuaternion::operator*(const CQuaternion& other) const
 {
     CQuaternion out;
@@ -84,3 +125,4 @@ CQuaternion CQuaternion::FromAxisAngle(float angle, CVector3f axis)
 }
 
 CQuaternion CQuaternion::skIdentity = CQuaternion(0.f, 0.f, 0.f, 1.f);
+CQuaternion CQuaternion::skZero = CQuaternion(0.f, 0.f, 0.f, 0.f);
diff --git a/Common/CQuaternion.h b/Common/CQuaternion.h
index a22528c1..c6da1cc5 100644
--- a/Common/CQuaternion.h
+++ b/Common/CQuaternion.h
@@ -11,7 +11,13 @@ public:
     CQuaternion();
     CQuaternion(float _x, float _y, float _z, float _w);
 
+    CVector3f XAxis();
+    CVector3f YAxis();
+    CVector3f ZAxis();
+    CQuaternion Inverse();
+
     // Operators
+    CVector3f operator*(const CVector3f& vec) const;
     CQuaternion operator*(const CQuaternion& other) const;
     void operator *= (const CQuaternion& other);
 
@@ -20,6 +26,7 @@ public:
     static CQuaternion FromAxisAngle(float angle, CVector3f axis);
 
     static CQuaternion skIdentity;
+    static CQuaternion skZero;
 };
 
 #endif // CQUATERNION_H
diff --git a/Common/CVector3f.cpp b/Common/CVector3f.cpp
index 2a9c6aaf..91857477 100644
--- a/Common/CVector3f.cpp
+++ b/Common/CVector3f.cpp
@@ -279,12 +279,15 @@ const float& CVector3f::operator[](long index) const
 const CVector3f CVector3f::skZero     = CVector3f(0.f);
 const CVector3f CVector3f::skOne      = CVector3f(1.f);
 const CVector3f CVector3f::skInfinite = CVector3f(FLT_MAX);
-const CVector3f CVector3f::skForward  = CVector3f(0.f,  1.f, 0.f);
-const CVector3f CVector3f::skBack     = CVector3f(0.f, -1.f, 0.f);
-const CVector3f CVector3f::skRight    = CVector3f( 1.f, 0.f, 0.f);
-const CVector3f CVector3f::skLeft     = CVector3f(-1.f, 0.f, 0.f);
-const CVector3f CVector3f::skUp       = CVector3f(0.f, 0.f,  1.f);
-const CVector3f CVector3f::skDown     = CVector3f(0.f, 0.f, -1.f);
+const CVector3f CVector3f::skUnitX    = CVector3f(1.f, 0.f, 0.f);
+const CVector3f CVector3f::skUnitY    = CVector3f(0.f, 1.f, 0.f);
+const CVector3f CVector3f::skUnitZ    = CVector3f(0.f, 0.f, 1.f);
+const CVector3f CVector3f::skRight    = CVector3f::skUnitX;
+const CVector3f CVector3f::skLeft     = -CVector3f::skUnitX;
+const CVector3f CVector3f::skForward  = CVector3f::skUnitY;
+const CVector3f CVector3f::skBack     = -CVector3f::skUnitY;
+const CVector3f CVector3f::skUp       = CVector3f::skUnitZ;
+const CVector3f CVector3f::skDown     = -CVector3f::skUnitZ;
 
 // ************ OTHER ************
 std::ostream& operator<<(std::ostream& o, const CVector3f& Vector)
diff --git a/Common/CVector3f.h b/Common/CVector3f.h
index 565fb07b..b8ebe05b 100644
--- a/Common/CVector3f.h
+++ b/Common/CVector3f.h
@@ -75,10 +75,13 @@ public:
     static const CVector3f skZero;
     static const CVector3f skOne;
     static const CVector3f skInfinite;
-    static const CVector3f skForward;
-    static const CVector3f skBack;
+    static const CVector3f skUnitX;
+    static const CVector3f skUnitY;
+    static const CVector3f skUnitZ;
     static const CVector3f skRight;
     static const CVector3f skLeft;
+    static const CVector3f skForward;
+    static const CVector3f skBack;
     static const CVector3f skUp;
     static const CVector3f skDown;
 
diff --git a/Common/ETransformSpace.h b/Common/ETransformSpace.h
new file mode 100644
index 00000000..f39f6de7
--- /dev/null
+++ b/Common/ETransformSpace.h
@@ -0,0 +1,11 @@
+#ifndef ETRANSFORMSPACE
+#define ETRANSFORMSPACE
+
+enum ETransformSpace
+{
+    eWorldTransform,
+    eLocalTransform
+};
+
+#endif // ETRANSFORMSPACE
+
diff --git a/Common/Math.cpp b/Common/Math.cpp
index 563cc434..3684d9f5 100644
--- a/Common/Math.cpp
+++ b/Common/Math.cpp
@@ -3,6 +3,11 @@
 namespace Math
 {
 
+float Abs(float v)
+{
+    return fabs(v);
+}
+
 float Pow(float Base, float Exponent)
 {
     return pow(Base, Exponent);
@@ -15,6 +20,23 @@ float Distance(const CVector3f& A, const CVector3f& B)
                   Pow(B.z - A.z, 2.f) );
 }
 
+std::pair<bool,float> RayPlaneIntersecton(const CRay& ray, const CPlane& plane)
+{
+    // Code based on ray/plane intersect code from Ogre
+    // https://bitbucket.org/sinbad/ogre/src/197116fd2ac62c57cdeed1666f9866c3dddd4289/OgreMain/src/OgreMath.cpp?at=default#OgreMath.cpp-350
+
+    // Are ray and plane parallel?
+    float denom = plane.Normal().Dot(ray.Direction());
+
+    if (Abs(denom) < FLT_EPSILON)
+        return std::pair<bool,float>(false, 0.f);
+
+    // Not parallel
+    float nom = plane.Normal().Dot(ray.Origin()) + plane.Dist();
+    float t = -(nom / denom);
+    return std::pair<bool,float>(t >= 0.f, t);
+}
+
 std::pair<bool,float> RayBoxIntersection(const CRay& Ray, const CAABox& Box)
 {
     // Code slightly modified from Ogre
diff --git a/Common/Math.h b/Common/Math.h
index 2f83ca53..f5d5b955 100644
--- a/Common/Math.h
+++ b/Common/Math.h
@@ -3,6 +3,7 @@
 
 #include "CAABox.h"
 #include "CRay.h"
+#include "CPlane.h"
 #include "CVector3f.h"
 #include "SRayIntersection.h"
 #include <utility>
@@ -10,10 +11,14 @@
 namespace Math
 {
 
+float Abs(float v);
+
 float Pow(float Base, float Exponent);
 
 float Distance(const CVector3f& A, const CVector3f& B);
 
+std::pair<bool,float> RayPlaneIntersecton(const CRay& ray, const CPlane& plane);
+
 std::pair<bool,float> RayBoxIntersection(const CRay& Ray, const CAABox& Box);
 
 std::pair<bool,float> RayLineIntersection(const CRay& ray, const CVector3f& pointA,
diff --git a/Core/CRenderer.cpp b/Core/CRenderer.cpp
index be0e8c49..9e5623dc 100644
--- a/Core/CRenderer.cpp
+++ b/Core/CRenderer.cpp
@@ -140,10 +140,6 @@ void CRenderer::RenderBuckets(CCamera& Camera)
     mTransparentBucket.Sort(Camera);
     mTransparentBucket.Draw(mOptions);
     mTransparentBucket.Clear();
-
-    // Clear depth buffer to enable more rendering passes
-    glDepthMask(GL_TRUE);
-    glClear(GL_DEPTH_BUFFER_BIT);
 }
 
 void CRenderer::RenderBloom()
@@ -331,6 +327,12 @@ void CRenderer::EndFrame()
     gDrawCount = 0;
 }
 
+void CRenderer::ClearDepthBuffer()
+{
+    glDepthMask(GL_TRUE);
+    glClear(GL_DEPTH_BUFFER_BIT);
+}
+
 // ************ PRIVATE ************
 void CRenderer::InitFramebuffer()
 {
diff --git a/Core/CRenderer.h b/Core/CRenderer.h
index 62dba437..a90b7989 100644
--- a/Core/CRenderer.h
+++ b/Core/CRenderer.h
@@ -72,6 +72,7 @@ public:
     void AddTransparentMesh(IRenderable *pRenderable, u32 AssetID, CAABox& AABox, ERenderCommand Command);
     void BeginFrame();
     void EndFrame();
+    void ClearDepthBuffer();
 
     // Private
 private:
diff --git a/Core/CSceneManager.cpp b/Core/CSceneManager.cpp
index 70e7bdb0..8b6571d4 100644
--- a/Core/CSceneManager.cpp
+++ b/Core/CSceneManager.cpp
@@ -157,7 +157,6 @@ void CSceneManager::SetActiveArea(CGameArea* _area)
         {
             CScriptObject *pObj = pGenLayer->ObjectByIndex(o);
             CScriptNode *Node = AddScriptObject(pObj);
-            Node->BuildLightList(mpArea);
 
             // Add to map
             mScriptNodeMap[pObj->InstanceID()] = Node;
@@ -165,9 +164,12 @@ void CSceneManager::SetActiveArea(CGameArea* _area)
     }
     PickEnvironmentObjects();
 
-    // Ensure script nodes have valid positions
+    // Ensure script nodes have valid positions + build light lists
     for (auto it = mScriptNodeMap.begin(); it != mScriptNodeMap.end(); it++)
+    {
         it->second->GeneratePosition();
+        it->second->BuildLightList(mpArea);
+    }
 
     u32 NumLightLayers = mpArea->GetLightLayerCount();
     CGraphics::sAreaAmbientColor = CColor::skBlack;
diff --git a/PrimeWorldEditor.pro b/PrimeWorldEditor.pro
index 8b26ddff..942262f5 100644
--- a/PrimeWorldEditor.pro
+++ b/PrimeWorldEditor.pro
@@ -134,7 +134,8 @@ SOURCES += \
     UI/WScanPreviewPanel.cpp \
     UI/WIntegralSpinBox.cpp \
     UI/CAboutDialog.cpp \
-    UI/CGizmo.cpp
+    UI/CGizmo.cpp \
+    Common/CPlane.cpp
 
 HEADERS  += \
     Common/AnimUtil.h \
@@ -283,7 +284,9 @@ HEADERS  += \
     UI/CAboutDialog.h \
     UI/CGizmo.h \
     Core/IRenderable.h \
-    Core/SRenderablePtr.h
+    Core/SRenderablePtr.h \
+    Common/ETransformSpace.h \
+    Common/CPlane.h
 
 FORMS    += \
     UI/CWorldEditorWindow.ui \
diff --git a/Scene/CSceneNode.cpp b/Scene/CSceneNode.cpp
index 86ba0ec5..650a2281 100644
--- a/Scene/CSceneNode.cpp
+++ b/Scene/CSceneNode.cpp
@@ -185,15 +185,29 @@ void CSceneNode::DrawBoundingBox()
 }
 
 // ************ TRANSFORM ************
-void CSceneNode::Translate(const CVector3f& Translation)
+void CSceneNode::Translate(const CVector3f& translation, ETransformSpace transformSpace)
 {
-    mPosition += Translation;
+    switch (transformSpace)
+    {
+    case eWorldTransform:
+        mPosition += translation;
+        break;
+    case eLocalTransform:
+        mPosition += mRotation * translation;
+        break;
+    }
     MarkTransformChanged();
 }
 
-void CSceneNode::Scale(const CVector3f& Scale)
+void CSceneNode::Rotate(const CQuaternion& rotation, ETransformSpace transformSpace)
 {
-    mScale *= Scale;
+    mRotation *= rotation;
+    MarkTransformChanged();
+}
+
+void CSceneNode::Scale(const CVector3f& scale, ETransformSpace transformSpace)
+{
+    mScale *= scale;
     MarkTransformChanged();
 }
 
@@ -209,9 +223,9 @@ void CSceneNode::UpdateTransform()
 void CSceneNode::ForceRecalculateTransform()
 {
     _mCachedTransform = CTransform4f::skIdentity;
-    _mCachedTransform.Scale(GetAbsoluteScale());
-    _mCachedTransform.Rotate(GetAbsoluteRotation());
-    _mCachedTransform.Translate(GetAbsolutePosition());
+    _mCachedTransform.Scale(AbsoluteScale());
+    _mCachedTransform.Rotate(AbsoluteRotation());
+    _mCachedTransform.Translate(AbsolutePosition());
     _mCachedAABox = mLocalAABox.Transformed(_mCachedTransform);
 
     // Sync with children - only needed if caller hasn't marked transform changed already
@@ -259,47 +273,47 @@ CSceneManager* CSceneNode::Scene()
     return mpScene;
 }
 
-CVector3f CSceneNode::GetPosition() const
+CVector3f CSceneNode::LocalPosition() const
 {
     return mPosition;
 }
 
-CVector3f CSceneNode::GetAbsolutePosition() const
+CVector3f CSceneNode::AbsolutePosition() const
 {
     CVector3f ret = mPosition;
 
     if ((mpParent) && (InheritsPosition()))
-        ret += mpParent->GetAbsolutePosition();
+        ret += mpParent->AbsolutePosition();
 
     return ret;
 }
 
-CQuaternion CSceneNode::GetRotation() const
+CQuaternion CSceneNode::LocalRotation() const
 {
     return mRotation;
 }
 
-CQuaternion CSceneNode::GetAbsoluteRotation() const
+CQuaternion CSceneNode::AbsoluteRotation() const
 {
     CQuaternion ret = mRotation;
 
     if ((mpParent) && (InheritsRotation()))
-        ret *= mpParent->GetAbsoluteRotation();
+        ret *= mpParent->AbsoluteRotation();
 
     return ret;
 }
 
-CVector3f CSceneNode::GetScale() const
+CVector3f CSceneNode::LocalScale() const
 {
     return mScale;
 }
 
-CVector3f CSceneNode::GetAbsoluteScale() const
+CVector3f CSceneNode::AbsoluteScale() const
 {
     CVector3f ret = mScale;
 
     if ((mpParent) && (InheritsScale()))
-        ret *= mpParent->GetAbsoluteScale();
+        ret *= mpParent->AbsoluteScale();
 
     return ret;
 }
diff --git a/Scene/CSceneNode.h b/Scene/CSceneNode.h
index d6b82261..933689d3 100644
--- a/Scene/CSceneNode.h
+++ b/Scene/CSceneNode.h
@@ -3,13 +3,14 @@
 
 #include <Core/IRenderable.h>
 #include "ENodeType.h"
-#include <Common/CVector3f.h>
-#include <Common/CQuaternion.h>
 #include <Common/CAABox.h>
+#include <Common/CQuaternion.h>
 #include <Common/CRay.h>
 #include <Common/CRayCollisionTester.h>
-#include <Common/types.h>
 #include <Common/CTransform4f.h>
+#include <Common/CVector3f.h>
+#include <Common/ETransformSpace.h>
+#include <Common/types.h>
 #include <Core/ERenderOptions.h>
 #include <Resource/CLight.h>
 #include <Resource/CGameArea.h>
@@ -68,8 +69,9 @@ public:
     void DrawBoundingBox();
 
     // Transform
-    void Translate(const CVector3f& Translation);
-    void Scale(const CVector3f& Scale);
+    void Translate(const CVector3f& translation, ETransformSpace transformSpace);
+    void Rotate(const CQuaternion& rotation, ETransformSpace transformSpace);
+    void Scale(const CVector3f& scale, ETransformSpace transformSpace);
     void UpdateTransform();
     void ForceRecalculateTransform();
     void MarkTransformChanged();
@@ -79,12 +81,12 @@ public:
     std::string Name() const;
     CSceneNode* Parent() const;
     CSceneManager* Scene();
-    CVector3f GetPosition() const;
-    CVector3f GetAbsolutePosition() const;
-    CQuaternion GetRotation() const;
-    CQuaternion GetAbsoluteRotation() const;
-    CVector3f GetScale() const;
-    CVector3f GetAbsoluteScale() const;
+    CVector3f LocalPosition() const;
+    CVector3f AbsolutePosition() const;
+    CQuaternion LocalRotation() const;
+    CQuaternion AbsoluteRotation() const;
+    CVector3f LocalScale() const;
+    CVector3f AbsoluteScale() const;
     CAABox AABox();
     CVector3f CenterPoint();
     bool MarkedVisible() const;
diff --git a/Scene/CScriptNode.cpp b/Scene/CScriptNode.cpp
index c075d6ec..291386da 100644
--- a/Scene/CScriptNode.cpp
+++ b/Scene/CScriptNode.cpp
@@ -45,7 +45,7 @@ CScriptNode::CScriptNode(CSceneManager *pScene, CSceneNode *pParent, CScriptObje
             {
                 mpVolumePreviewNode = new CModelNode(pScene, this, pVolumeModel);
                 mpVolumePreviewNode->SetInheritance(true, (VolumeShape == 1), false);
-                mpVolumePreviewNode->Scale(mpInstance->GetVolume());
+                mpVolumePreviewNode->Scale(mpInstance->GetVolume(), eWorldTransform);
                 mpVolumePreviewNode->ForceAlphaEnabled(true);
             }
         }
@@ -266,7 +266,7 @@ void CScriptNode::GeneratePosition()
             const SLink& link = (mpInstance->NumInLinks() > 0 ? mpInstance->InLink(0) : mpInstance->OutLink(0));
             CScriptNode *pNode = mpScene->ScriptNodeByID(link.ObjectID);
             pNode->GeneratePosition();
-            mPosition = pNode->GetAbsolutePosition();
+            mPosition = pNode->AbsolutePosition();
             mPosition.z += (pNode->AABox().Size().z / 2.f);
             mPosition.z += (AABox().Size().z / 2.f);
             mPosition.z += 2.f;
diff --git a/UI/CEditorGLWidget.cpp b/UI/CEditorGLWidget.cpp
index 58853861..1bbcad81 100644
--- a/UI/CEditorGLWidget.cpp
+++ b/UI/CEditorGLWidget.cpp
@@ -105,24 +105,31 @@ void CEditorGLWidget::mousePressEvent(QMouseEvent *pEvent)
 
     // Left click only activates if mouse input is inactive to prevent the user from
     // clicking on things and creating selection rectangles while the cursor is hidden
-    else if (pEvent->button() == Qt::LeftButton)
-        mButtonsPressed |= eLeftButton;
+    else
+    {
+        if (pEvent->button() == Qt::LeftButton)
+            mButtonsPressed |= eLeftButton;
+
+        emit MouseClick(pEvent);
+    }
 
     mLastMousePos = pEvent->globalPos();
 }
 
 void CEditorGLWidget::mouseReleaseEvent(QMouseEvent *pEvent)
 {
+    bool fromMouseInput = IsMouseInputActive();
     if (pEvent->button() == Qt::LeftButton)  mButtonsPressed &= ~eLeftButton;
     if (pEvent->button() == Qt::MidButton)   mButtonsPressed &= ~eMiddleButton;
     if (pEvent->button() == Qt::RightButton) mButtonsPressed &= ~eRightButton;
 
-    // Make cursor visible and emit mouse click event if middle/right mouse buttons are both released
+    // Make cursor visible if needed
     if (!IsMouseInputActive())
-    {
         SetCursorVisible(true);
-        emit MouseClick(pEvent);
-    }
+
+    // Emit mouse release event if we didn't just exit mouse input (or regardless on left click)
+    if (!fromMouseInput || (pEvent->button() == Qt::LeftButton))
+        emit MouseRelease(pEvent);
 }
 
 void CEditorGLWidget::keyPressEvent(QKeyEvent *pEvent)
diff --git a/UI/CEditorGLWidget.h b/UI/CEditorGLWidget.h
index 12b840d1..646b490f 100644
--- a/UI/CEditorGLWidget.h
+++ b/UI/CEditorGLWidget.h
@@ -54,6 +54,7 @@ signals:
     void Render(CCamera& Camera);
     void PostRender();
     void MouseClick(QMouseEvent *pEvent);
+    void MouseRelease(QMouseEvent *pEvent);
     void MouseDrag(QMouseEvent *pEvent);
 
 private:
diff --git a/UI/CGizmo.cpp b/UI/CGizmo.cpp
index c94bc07d..ec21633d 100644
--- a/UI/CGizmo.cpp
+++ b/UI/CGizmo.cpp
@@ -2,6 +2,8 @@
 #include <Common/Math.h>
 #include <Core/CRenderer.h>
 #include <Core/CResCache.h>
+#include <Core/CDrawUtil.h>
+#include <iostream>
 
 CGizmo::CGizmo()
 {
@@ -15,9 +17,10 @@ CGizmo::CGizmo()
     mPosition = CVector3f::skZero;
     mRotation = CQuaternion::skIdentity;
     mScale = CVector3f::skOne;
-    mDeltaPosition = CVector3f::skZero;
+    mDeltaTranslation = CVector3f::skZero;
     mDeltaRotation = CQuaternion::skIdentity;
     mDeltaScale = CVector3f::skOne;
+    mSetOffset = false;
     mFlipScaleX = false;
     mFlipScaleY = false;
     mFlipScaleZ = false;
@@ -109,11 +112,10 @@ void CGizmo::UpdateForCamera(const CCamera &camera)
     mBillboardRotation = CQuaternion::FromAxisAngle(angle, axis);
 }
 
-bool CGizmo::IntersectsRay(const CRay &ray)
+bool CGizmo::CheckSelectedAxes(const CRay &ray)
 {
     // todo: fix raycasting for rotate gizmo; currently it can hit the invisible back side of the model
     CRay localRay = ray.Transformed(mTransform.Inverse());
-    float threshold = 0.02f * mGizmoSize * mCameraDist;
 
     // Do raycast on each model
     SModelPart *pPart = mpCurrentParts;
@@ -126,7 +128,12 @@ bool CGizmo::IntersectsRay(const CRay &ray)
 
     for (u32 iPart = 0; iPart < mNumCurrentParts; iPart++)
     {
-        if (!pPart->enableRayCast) continue;
+        if (!pPart->enableRayCast)
+        {
+            pPart++;
+            continue;
+        }
+
         CModel *pModel = pPart->pModel;
 
         // Ray/Model AABox test - allow buffer room because lines are small
@@ -141,7 +148,7 @@ bool CGizmo::IntersectsRay(const CRay &ray)
 
             for (u32 iSurf = 0; iSurf < pModel->GetSurfaceCount(); iSurf++)
             {
-                // Skip surface/box check
+                // Skip surface/box check - since we use lines the boxes might be too small
                 SSurface *pSurf = pModel->GetSurface(iSurf);
                 std::pair<bool,float> surfCheck = pSurf->IntersectsRay(localRay, 0.05f);
 
@@ -183,11 +190,129 @@ bool CGizmo::IntersectsRay(const CRay &ray)
     return true;
 }
 
+u32 CGizmo::NumSelectedAxes()
+{
+    u32 out = 0;
+
+    for (u32 iAxis = 1; iAxis < 8; iAxis <<= 1)
+        if (mSelectedAxes & (EGizmoAxes) iAxis) out++;
+
+    return out;
+}
+
+void CGizmo::ResetSelectedAxes()
+{
+    mSelectedAxes = eNone;
+}
+
+void CGizmo::StartTransform()
+{
+    mSetOffset = false;
+    mTotalTranslation = CVector3f::skZero;
+    mTotalRotation = CQuaternion::skIdentity;
+    mTotalScale = CVector3f::skOne;
+}
+
+bool CGizmo::TransformFromInput(const CRay& ray, const CCamera& camera)
+{
+    if (mMode == eTranslate)
+    {
+        // Create translate plane
+        CVector3f axisA, axisB;
+        u32 numAxes = NumSelectedAxes();
+
+        if (numAxes == 1)
+        {
+            if (mSelectedAxes & eX) axisB = mRotation.XAxis();
+            else if (mSelectedAxes & eY) axisB = mRotation.YAxis();
+            else axisB = mRotation.ZAxis();
+
+            CVector3f gizmoToCamera = (mPosition - camera.Position()).Normalized();
+            axisA = axisB.Cross(gizmoToCamera);
+        }
+
+        else if (numAxes == 2)
+        {
+            axisA = (mSelectedAxes & eX ? mRotation.XAxis() : mRotation.YAxis());
+            axisB = (mSelectedAxes & eZ ? mRotation.ZAxis() : mRotation.YAxis());
+        }
+
+        CVector3f planeNormal = axisA.Cross(axisB);
+        mTranslatePlane.Redefine(planeNormal, mPosition);
+
+        // Do translate
+        std::pair<bool,float> result = Math::RayPlaneIntersecton(ray, mTranslatePlane);
+
+        if (result.first)
+        {
+            CVector3f hit = ray.PointOnRay(result.second);
+            CVector3f localDelta = mRotation.Inverse() * (hit - mPosition);
+
+            // Calculate new position
+            CVector3f newPos = mPosition;
+            if (mSelectedAxes & eX) newPos += mRotation.XAxis() * localDelta.x;
+            if (mSelectedAxes & eY) newPos += mRotation.YAxis() * localDelta.y;
+            if (mSelectedAxes & eZ) newPos += mRotation.ZAxis() * localDelta.z;
+
+            // Check relativity of new pos to camera to reduce issue where the gizmo might
+            // go flying off into the distance if newPosToCamera is parallel to the plane
+            CVector3f newPosToCamera = (newPos - camera.Position()).Normalized();
+            float dot = Math::Abs(planeNormal.Dot(newPosToCamera));
+            if (dot < 0.02f) return false;
+
+            // Set offset
+            if (!mSetOffset)
+            {
+                mTranslateOffset = mPosition - newPos;
+                mDeltaTranslation = CVector3f::skZero;
+                mSetOffset = true;
+                return false;
+            }
+
+            // Apply translation
+            else
+            {
+                mDeltaTranslation = mRotation.Inverse() * (newPos - mPosition + mTranslateOffset);
+                mTotalTranslation += mDeltaTranslation;
+                mPosition = newPos + mTranslateOffset;
+                return true;
+            }
+        }
+
+        else
+        {
+            mDeltaTranslation = CVector3f::skZero;
+            return false;
+        }
+    }
+
+    return false;
+}
+
+void CGizmo::EndTransform()
+{
+}
+
 CGizmo::EGizmoMode CGizmo::Mode()
 {
     return mMode;
 }
 
+CVector3f CGizmo::Position()
+{
+    return mPosition;
+}
+
+CVector3f CGizmo::DeltaTranslation()
+{
+    return mDeltaTranslation;
+}
+
+CVector3f CGizmo::TotalTranslation()
+{
+    return mTotalTranslation;
+}
+
 void CGizmo::SetMode(EGizmoMode mode)
 {
     mMode = mode;
@@ -197,16 +322,22 @@ void CGizmo::SetMode(EGizmoMode mode)
     case eTranslate:
         mpCurrentParts = smTranslateModels;
         mNumCurrentParts = 9;
+        mDeltaRotation = CQuaternion::skIdentity;
+        mDeltaScale = CVector3f::skOne;
         break;
 
     case eRotate:
         mpCurrentParts = smRotateModels;
         mNumCurrentParts = 4;
+        mDeltaTranslation = CVector3f::skZero;
+        mDeltaScale = CVector3f::skOne;
         break;
 
     case eScale:
         mpCurrentParts = smScaleModels;
         mNumCurrentParts = 10;
+        mDeltaTranslation = CVector3f::skZero;
+        mDeltaRotation = CQuaternion::skIdentity;
         break;
     }
 }
@@ -216,9 +347,9 @@ void CGizmo::SetPosition(const CVector3f& position)
     mPosition = position;
 }
 
-void CGizmo::ResetSelectedAxes()
+void CGizmo::SetOrientation(const CQuaternion& orientation)
 {
-    mSelectedAxes = eNone;
+    mRotation = orientation;
 }
 
 // ************ PRIVATE STATIC ************
diff --git a/UI/CGizmo.h b/UI/CGizmo.h
index 9d7348fe..fa5deadd 100644
--- a/UI/CGizmo.h
+++ b/UI/CGizmo.h
@@ -1,8 +1,9 @@
 #ifndef CGIZMO_H
 #define CGIZMO_H
 
-#include <Common/CVector3f.h>
+#include <Common/CPlane.h>
 #include <Common/CQuaternion.h>
+#include <Common/CVector3f.h>
 #include <Common/EnumUtil.h>
 #include <Core/CCamera.h>
 #include <Core/CToken.h>
@@ -63,15 +64,24 @@ private:
 
     CTransform4f mTransform;
     CVector3f mPosition;
+    CVector3f mDeltaTranslation;
+    CVector3f mTotalTranslation;
     CQuaternion mRotation;
-    CVector3f mScale;
-    CVector3f mDeltaPosition;
     CQuaternion mDeltaRotation;
+    CQuaternion mTotalRotation;
+    CVector3f mScale;
     CVector3f mDeltaScale;
+    CVector3f mTotalScale;
     bool mFlipScaleX;
     bool mFlipScaleY;
     bool mFlipScaleZ;
 
+    CPlane mTranslatePlane;
+    CVector3f mLastTranslatePosition;
+    CVector3f mTranslateOffset;
+    bool mSetOffset;
+
+
     struct SModelPart
     {
         EGizmoAxes modelAxes;
@@ -104,12 +114,20 @@ public:
     void IncrementSize();
     void DecrementSize();
     void UpdateForCamera(const CCamera& camera);
-    bool IntersectsRay(const CRay& ray);
+    bool CheckSelectedAxes(const CRay& ray);
+    u32 NumSelectedAxes();
+    void ResetSelectedAxes();
+    void StartTransform();
+    bool TransformFromInput(const CRay& ray, const CCamera& camera);
+    void EndTransform();
 
     EGizmoMode Mode();
+    CVector3f Position();
+    CVector3f DeltaTranslation();
+    CVector3f TotalTranslation();
     void SetMode(EGizmoMode mode);
     void SetPosition(const CVector3f& position);
-    void ResetSelectedAxes();
+    void SetOrientation(const CQuaternion& orientation);
 
     // Protected
 protected:
diff --git a/UI/CWorldEditor.cpp b/UI/CWorldEditor.cpp
index f8fe2188..7263c21d 100644
--- a/UI/CWorldEditor.cpp
+++ b/UI/CWorldEditor.cpp
@@ -6,6 +6,7 @@
 #include <iostream>
 #include <QOpenGLContext>
 #include <QFontMetrics>
+#include <QComboBox>
 #include <Core/Log.h>
 #include "WDraggableSpinBox.h"
 
@@ -32,6 +33,9 @@ CWorldEditor::CWorldEditor(QWidget *parent) :
     mpHoverNode = nullptr;
     mDrawSky = true;
     mShowGizmo = false;
+    mGizmoHovering = false;
+    mGizmoTransforming = false;
+    mUpdateUILater = false;
 
     mFrameCount = 0;
     mFPSTimer.Start();
@@ -47,7 +51,6 @@ CWorldEditor::CWorldEditor(QWidget *parent) :
 
     delete pOldTitleBar;
 
-
     // Initialize UI stuff
     ui->ModifyTabContents->SetEditor(this);
     ui->InstancesTabContents->SetEditor(this, mpSceneManager);
@@ -55,17 +58,27 @@ CWorldEditor::CWorldEditor(QWidget *parent) :
     ui->CamSpeedSpinBox->SetDefaultValue(1.0);
     ResetHover();
 
+    mTransformSpace = eWorldTransform;
+
+    QComboBox *pTransformCombo = new QComboBox(this);
+    pTransformCombo->setMinimumWidth(75);
+    pTransformCombo->addItem("World");
+    pTransformCombo->addItem("Local");
+    ui->MainToolBar->insertWidget(0, pTransformCombo);
+
     // Initialize offscreen actions
     addAction(ui->ActionIncrementGizmo);
     addAction(ui->ActionDecrementGizmo);
 
     // Connect signals and slots
+    connect(pTransformCombo, SIGNAL(currentIndexChanged(int)), this, SLOT(SetTransformSpace(int)));
     connect(ui->CamSpeedSpinBox, SIGNAL(valueChanged(double)), this, SLOT(OnCameraSpeedChange(double)));
     connect(ui->MainViewport, SIGNAL(PreRender()), this, SLOT(ViewportPreRender()));
     connect(ui->MainViewport, SIGNAL(Render(CCamera&)), this, SLOT(ViewportRender(CCamera&)));
     connect(ui->MainViewport, SIGNAL(ViewportResized(int,int)), this, SLOT(SetViewportSize(int,int)));
     connect(ui->MainViewport, SIGNAL(frameSwapped()), this, SLOT(ViewportPostRender()));
     connect(ui->MainViewport, SIGNAL(MouseClick(QMouseEvent*)), this, SLOT(ViewportMouseClick(QMouseEvent*)));
+    connect(ui->MainViewport, SIGNAL(MouseRelease(QMouseEvent*)), this, SLOT(ViewportMouseRelease(QMouseEvent*)));
 }
 
 CWorldEditor::~CWorldEditor()
@@ -135,28 +148,58 @@ void CWorldEditor::ViewportRayCast(CRay Ray)
 {
     if (!ui->MainViewport->IsMouseInputActive())
     {
-        // Gizmo ray check
-        mGizmoHovering = mGizmo.IntersectsRay(Ray);
-
-        // Scene ray check
-        SRayIntersection Result = mpSceneManager->SceneRayCast(Ray);
-
-        if (Result.Hit)
+        if (!mGizmoTransforming)
         {
-            if (mpHoverNode)
-                mpHoverNode->SetMouseHovering(false);
+            // Gizmo hover check
+            if (mShowGizmo && !mSelectedNodes.empty())
+                mGizmoHovering = mGizmo.CheckSelectedAxes(Ray);
+            else
+            {
+                mGizmoHovering = false;
+                mGizmo.ResetSelectedAxes();
+            }
 
-            mpHoverNode = Result.pNode;
-            mpHoverNode->SetMouseHovering(true);
+            // Scene ray check
+            SRayIntersection Result = mpSceneManager->SceneRayCast(Ray);
 
-            mHoverPoint = Ray.PointOnRay(Result.Distance);
+            if (Result.Hit)
+            {
+                if (mpHoverNode)
+                    mpHoverNode->SetMouseHovering(false);
+
+                mpHoverNode = Result.pNode;
+                mpHoverNode->SetMouseHovering(true);
+
+                mHoverPoint = Ray.PointOnRay(Result.Distance);
+            }
+            else
+                ResetHover();
         }
         else
-            ResetHover();
+        {
+            bool moved = mGizmo.TransformFromInput(Ray, ui->MainViewport->Camera());
+
+            if (moved)
+            {
+                CVector3f delta = mGizmo.DeltaTranslation();
+
+                for (auto it = mSelectedNodes.begin(); it != mSelectedNodes.end(); it++)
+                {
+                    (*it)->Translate(delta, mTransformSpace);
+                    (*it)->BuildLightList(this->mpArea);
+                }
+                RecalculateSelectionBounds();
+                mUpdateUILater = true;
+            }
+        }
     }
     else
     {
-        mGizmo.ResetSelectedAxes();
+        if (!mGizmoTransforming)
+        {
+            mGizmoHovering = false;
+            mGizmo.ResetSelectedAxes();
+        }
         ResetHover();
     }
 }
@@ -229,44 +272,73 @@ void CWorldEditor::ClearSelection()
 // ************ SLOTS ************
 void CWorldEditor::ViewportMouseDrag(QMouseEvent *pEvent)
 {
-    // todo: gizmo translate/rotate/scale implementation
 }
 
 void CWorldEditor::ViewportMouseClick(QMouseEvent *pEvent)
 {
-    // Process left click (button press)
+    bool AltPressed = ((pEvent->modifiers() & Qt::AltModifier) != 0);
+    bool CtrlPressed = ((pEvent->modifiers() & Qt::ControlModifier) != 0);
+
+    if (mGizmoHovering && !AltPressed && !CtrlPressed)
+    {
+        mGizmoTransforming = true;
+        mGizmo.StartTransform();
+    }
+}
+
+void CWorldEditor::ViewportMouseRelease(QMouseEvent *pEvent)
+{
     if (pEvent->button() == Qt::LeftButton)
     {
-        bool ValidNode = ((mpHoverNode) && (mpHoverNode->NodeType() != eStaticNode));
-        bool AltPressed = ((pEvent->modifiers() & Qt::AltModifier) != 0);
-        bool CtrlPressed = ((pEvent->modifiers() & Qt::ControlModifier) != 0);
-
-        // Alt pressed - deselect object
-        if (AltPressed)
+        // Gizmo transform stop
+        if (mGizmoTransforming)
         {
-            // No valid node selected - do nothing
-            if (!ValidNode)
-                return;
-
-            DeselectNode(mpHoverNode);
+            mGizmoTransforming = false;
         }
 
-        // Other - select object
-        else
+        // Object selection/deselection
+        else if (!ui->MainViewport->IsMouseInputActive())
         {
-            // Control not pressed - clear existing selection
-            if (!CtrlPressed)
-                ClearSelection();
+            bool ValidNode = ((mpHoverNode) && (mpHoverNode->NodeType() != eStaticNode));
+            bool AltPressed = ((pEvent->modifiers() & Qt::AltModifier) != 0);
+            bool CtrlPressed = ((pEvent->modifiers() & Qt::ControlModifier) != 0);
 
-            // Add hover node to selection
-            if (ValidNode)
-                SelectNode(mpHoverNode);
+            // Alt pressed - deselect object
+            if (AltPressed)
+            {
+                // No valid node selected - do nothing
+                if (!ValidNode)
+                    return;
+
+                DeselectNode(mpHoverNode);
+            }
+
+            // Ctrl pressed - add object to selection
+            else if (CtrlPressed)
+            {
+                // Add hover node to selection
+                if (ValidNode)
+                    SelectNode(mpHoverNode);
+            }
+
+            // Neither pressed
+            else
+            {
+                // If the gizmo isn't under the mouse, clear existing selection + select object (if applicable)
+                if (!mGizmoHovering)
+                {
+                    ClearSelection();
+
+                    if (ValidNode)
+                        SelectNode(mpHoverNode);
+                }
+            }
+
+            UpdateSelectionUI();
         }
-
-        UpdateSelectionUI();
     }
 
-    // Later, possibly expand to context menu creation for right-click
+    // todo: context menu creation on right-click goes here
 }
 
 // ************ SLOTS ************
@@ -298,8 +370,10 @@ void CWorldEditor::ViewportRender(CCamera& Camera)
 
     if (mShowGizmo && (mSelectedNodes.size() > 0))
     {
+        mpRenderer->ClearDepthBuffer();
+
         Camera.LoadMatrices();
-        mGizmo.UpdateForCamera(Camera);
+        if (!mGizmoTransforming) mGizmo.UpdateForCamera(Camera);
         mGizmo.AddToRenderer(mpRenderer);
 
         if (mGizmo.Mode() == CGizmo::eRotate)
@@ -318,6 +392,12 @@ void CWorldEditor::ViewportPostRender()
     // Update UI with raycast results
     UpdateCursor();
     UpdateStatusBar();
+
+    if (mUpdateUILater)
+    {
+        UpdateSelectionUI();
+        mUpdateUILater = false;
+    }
 }
 
 void CWorldEditor::SetViewportSize(int Width, int Height)
@@ -325,6 +405,22 @@ void CWorldEditor::SetViewportSize(int Width, int Height)
     mpRenderer->SetViewportSize(Width, Height);
 }
 
+void CWorldEditor::SetTransformSpace(int space)
+{
+    switch (space)
+    {
+    case 0:
+        mTransformSpace = eWorldTransform;
+        mGizmo.SetOrientation(CQuaternion::skIdentity);
+        break;
+    case 1:
+        mTransformSpace = eLocalTransform;
+        if (!mSelectedNodes.empty())
+            mGizmo.SetOrientation(mSelectedNodes.front()->AbsoluteRotation());
+        break;
+    }
+}
+
 // ************ PRIVATE ************
 void CWorldEditor::RecalculateSelectionBounds()
 {
@@ -396,13 +492,21 @@ void CWorldEditor::UpdateSelectionUI()
     ui->SelectionInfoLabel->setText(SelectionText);
 
     // Update transform
-    CVector3f pos = (!mSelectedNodes.empty() ? mSelectedNodes.front()->GetAbsolutePosition() : CVector3f::skZero);
+    CVector3f pos = (!mSelectedNodes.empty() ? mSelectedNodes.front()->AbsolutePosition() : CVector3f::skZero);
     ui->XSpinBox->setValue(pos.x);
     ui->YSpinBox->setValue(pos.y);
     ui->ZSpinBox->setValue(pos.z);
 
     // Update gizmo
-    mGizmo.SetPosition(pos);
+    if (!mGizmoTransforming)
+    {
+        mGizmo.SetPosition(pos);
+
+        if ((mTransformSpace == eLocalTransform) && !mSelectedNodes.empty())
+            mGizmo.SetOrientation(mSelectedNodes.front()->AbsoluteRotation());
+        else
+            mGizmo.SetOrientation(CQuaternion::skIdentity);
+    }
 }
 
 // ************ ACTIONS ************
diff --git a/UI/CWorldEditor.h b/UI/CWorldEditor.h
index 858107c3..918d8637 100644
--- a/UI/CWorldEditor.h
+++ b/UI/CWorldEditor.h
@@ -9,6 +9,7 @@
 #include <Common/CTimer.h>
 #include <Common/EKeyInputs.h>
 #include <Common/SRayIntersection.h>
+#include <Common/ETransformSpace.h>
 #include <Core/CRenderer.h>
 #include <Core/CSceneManager.h>
 #include <Core/CToken.h>
@@ -25,6 +26,7 @@ class CWorldEditor : public QMainWindow
     CRenderer *mpRenderer;
     CSceneManager *mpSceneManager;
     CGizmo mGizmo;
+    ETransformSpace mTransformSpace;
     CCamera mCamera;
     CGameArea *mpArea;
     CWorld *mpWorld;
@@ -34,6 +36,8 @@ class CWorldEditor : public QMainWindow
     bool mDrawSky;
     bool mShowGizmo;
     bool mGizmoHovering;
+    bool mGizmoTransforming;
+    bool mUpdateUILater;
 
     CVector3f mHoverPoint;
     CSceneNode *mpHoverNode;
@@ -64,7 +68,9 @@ public slots:
     void ViewportPostRender();
     void ViewportMouseDrag(QMouseEvent *pEvent);
     void ViewportMouseClick(QMouseEvent *pEvent);
+    void ViewportMouseRelease(QMouseEvent *pEvent);
     void SetViewportSize(int Width, int Height);
+    void SetTransformSpace(int space);
 
 private:
     Ui::CWorldEditor *ui;
diff --git a/UI/CWorldEditor.ui b/UI/CWorldEditor.ui
index ac3ecab7..40935ee2 100644
--- a/UI/CWorldEditor.ui
+++ b/UI/CWorldEditor.ui
@@ -440,13 +440,16 @@
    <addaction name="menuWindow"/>
   </widget>
   <widget class="QStatusBar" name="statusbar"/>
-  <widget class="QToolBar" name="Toolbar">
+  <widget class="QToolBar" name="FileToolBar">
    <property name="contextMenuPolicy">
     <enum>Qt::NoContextMenu</enum>
    </property>
    <property name="windowTitle">
     <string>toolBar_2</string>
    </property>
+   <property name="movable">
+    <bool>false</bool>
+   </property>
    <attribute name="toolBarArea">
     <enum>TopToolBarArea</enum>
    </attribute>
@@ -593,13 +596,19 @@
     </layout>
    </widget>
   </widget>
-  <widget class="QToolBar" name="toolBar">
+  <widget class="QToolBar" name="MainToolBar">
    <property name="contextMenuPolicy">
     <enum>Qt::NoContextMenu</enum>
    </property>
    <property name="windowTitle">
     <string>toolBar</string>
    </property>
+   <property name="iconSize">
+    <size>
+     <width>32</width>
+     <height>32</height>
+    </size>
+   </property>
    <attribute name="toolBarArea">
     <enum>TopToolBarArea</enum>
    </attribute>