diff --git a/include/container.h b/include/container.h
index 8c54ee24..cb18de49 100644
--- a/include/container.h
+++ b/include/container.h
@@ -63,7 +63,7 @@ struct sway_container {
 
 	/**
 	 * The coordinates that this view appear at, relative to the output they
-	 * are located on.
+	 * are located on (output containers have absolute coordinates).
 	 */
 	double x, y;
 
diff --git a/include/output.h b/include/output.h
index 10ff0596..1307ead8 100644
--- a/include/output.h
+++ b/include/output.h
@@ -4,7 +4,16 @@
 #include "container.h"
 #include "focus.h"
 
-swayc_t *output_by_name(const char* name);
-swayc_t *swayc_adjacent_output(swayc_t *output, enum movement_direction dir);
+// Position is absolute coordinates on the edge where the adjacent output
+// should be searched for.
+swayc_t *output_by_name(const char* name, const struct wlc_point *abs_pos);
+swayc_t *swayc_adjacent_output(swayc_t *output, enum movement_direction dir, const struct wlc_point *abs_pos, bool pick_closest);
+
+// Place absolute coordinates for given container into given wlc_point.
+void get_absolute_position(swayc_t *container, struct wlc_point *point);
+
+// Place absolute coordinates for the center point of given container into
+// given wlc_point.
+void get_absolute_center_position(swayc_t *container, struct wlc_point *point);
 
 #endif
diff --git a/sway/commands.c b/sway/commands.c
index f194681e..dfb3c12d 100644
--- a/sway/commands.c
+++ b/sway/commands.c
@@ -377,11 +377,13 @@ static struct cmd_results *cmd_focus(int argc, char **argv) {
 	struct cmd_results *error = NULL;
 	if (argc > 0 && strcasecmp(argv[0], "output") == 0) {
 		swayc_t *output = NULL;
+		struct wlc_point abs_pos;
+		get_absolute_center_position(get_focused_container(&root_container), &abs_pos);
 		if ((error = checkarg(argc, "focus", EXPECTED_EQUAL_TO, 2))) {
 			return error;
-		} else if (!(output = output_by_name(argv[1]))) {
+		} else if (!(output = output_by_name(argv[1], &abs_pos))) {
 			return cmd_results_new(CMD_FAILURE, "focus output",
-				"Can't find output with name/at direction %s", argv[1]);
+				"Can't find output with name/at direction '%s' @ (%i,%i)", argv[1], abs_pos.x, abs_pos.y);
 		} else if (!workspace_switch(swayc_active_workspace_for(output))) {
 			return cmd_results_new(CMD_FAILURE, "focus output",
 				"Switching to workspace on output '%s' was blocked", argv[1]);
@@ -591,11 +593,13 @@ static struct cmd_results *cmd_move(int argc, char **argv) {
 		} else if (strcasecmp(argv[1], "to") == 0 && strcasecmp(argv[2], "output") == 0) {
 			// move container to output x
 			swayc_t *output = NULL;
+			struct wlc_point abs_pos;
+			get_absolute_center_position(view, &abs_pos);
 			if (view->type != C_CONTAINER && view->type != C_VIEW) {
 				return cmd_results_new(CMD_FAILURE, "move", "Can only move containers and views.");
-			} else if (!(output = output_by_name(argv[3]))) {
+			} else if (!(output = output_by_name(argv[3], &abs_pos))) {
 				return cmd_results_new(CMD_FAILURE, "move",
-					"Can't find output with name/direction '%s'", argv[3]);
+					"Can't find output with name/direction '%s' @ (%i,%i)", argv[3], abs_pos.x, abs_pos.y);
 			} else {
 				swayc_t *container = get_focused_container(output);
 				if (container->is_floating) {
@@ -610,13 +614,15 @@ static struct cmd_results *cmd_move(int argc, char **argv) {
 	} else if (strcasecmp(argv[0], "workspace") == 0) {
 		// move workspace (to output x)
 		swayc_t *output = NULL;
+		struct wlc_point abs_pos;
+		get_absolute_center_position(view, &abs_pos);
 		if ((error = checkarg(argc, "move workspace", EXPECTED_EQUAL_TO, 4))) {
 			return error;
 		} else if (strcasecmp(argv[1], "to") != 0 || strcasecmp(argv[2], "output") != 0) {
 			return cmd_results_new(CMD_INVALID, "move", expected_syntax);
-		} else if (!(output = output_by_name(argv[3]))) {
+		} else if (!(output = output_by_name(argv[3], &abs_pos))) {
 			return cmd_results_new(CMD_FAILURE, "move workspace",
-				"Can't find output with name/at direction '%s'", argv[3]);
+				"Can't find output with name/direction '%s' @ (%i,%i)", argv[3], abs_pos.x, abs_pos.y);
 		}
 		if (view->type == C_WORKSPACE) {
 			// This probably means we're moving an empty workspace, but
diff --git a/sway/handlers.c b/sway/handlers.c
index cadfce5c..3f3c1bdd 100644
--- a/sway/handlers.c
+++ b/sway/handlers.c
@@ -305,28 +305,39 @@ static bool handle_pointer_motion(wlc_handle handle, uint32_t time, const struct
 			!pointer_state.left.held && !pointer_state.right.held && !pointer_state.scroll.held) {
 
 		swayc_t *output = swayc_active_output(), *adjacent = NULL;
+		struct wlc_point abs_pos = *origin;
+		abs_pos.x += output->x;
+		abs_pos.y += output->y;
 		if (origin->x == 0) { // Left edge
-			if ((adjacent = swayc_adjacent_output(output, MOVE_LEFT))) {
+			if ((adjacent = swayc_adjacent_output(output, MOVE_LEFT, &abs_pos, false))) {
 				if (workspace_switch(swayc_active_workspace_for(adjacent))) {
 					new_origin.x = adjacent->width;
+					// adjust for differently aligned outputs (well, this is
+					// only correct when the two outputs have the same
+					// resolution or the same dpi I guess, it should take
+					// physical attributes into account)
+					new_origin.y += (output->y - adjacent->y);
 				}
 			}
 		} else if ((double)origin->x == output->width) { // Right edge
-			if ((adjacent = swayc_adjacent_output(output, MOVE_RIGHT))) {
+			if ((adjacent = swayc_adjacent_output(output, MOVE_RIGHT, &abs_pos, false))) {
 				if (workspace_switch(swayc_active_workspace_for(adjacent))) {
 					new_origin.x = 0;
+					new_origin.y += (output->y - adjacent->y);
 				}
 			}
 		} else if (origin->y == 0) { // Top edge
-			if ((adjacent = swayc_adjacent_output(output, MOVE_UP))) {
+			if ((adjacent = swayc_adjacent_output(output, MOVE_UP, &abs_pos, false))) {
 				if (workspace_switch(swayc_active_workspace_for(adjacent))) {
 					new_origin.y = adjacent->height;
+					new_origin.x += (output->x - adjacent->x);
 				}
 			}
 		} else if ((double)origin->y == output->height) { // Bottom edge
-			if ((adjacent = swayc_adjacent_output(output, MOVE_DOWN))) {
+			if ((adjacent = swayc_adjacent_output(output, MOVE_DOWN, &abs_pos, false))) {
 				if (workspace_switch(swayc_active_workspace_for(adjacent))) {
 					new_origin.y = 0;
+					new_origin.x += (output->x - adjacent->x);
 				}
 			}
 		}
diff --git a/sway/layout.c b/sway/layout.c
index fe7d820a..741addf1 100644
--- a/sway/layout.c
+++ b/sway/layout.c
@@ -533,13 +533,17 @@ swayc_t *get_swayc_in_direction_under(swayc_t *container, enum movement_directio
 			return parent;
 		}
 	}
+	// If moving to an adjacent output we need a starting position (since this
+	// output might border to multiple outputs).
+	struct wlc_point abs_pos;
+	get_absolute_center_position(container, &abs_pos);
 	while (true) {
 		// Test if we can even make a difference here
 		bool can_move = false;
 		int diff = 0;
 		if (parent->type == C_ROOT) {
 			sway_log(L_DEBUG, "Moving between outputs");
-			return swayc_adjacent_output(container, dir);
+			return swayc_adjacent_output(container, dir, &abs_pos, true);
 		} else {
 			if (dir == MOVE_LEFT || dir == MOVE_RIGHT) {
 				if (parent->layout == L_HORIZ) {
diff --git a/sway/output.c b/sway/output.c
index 5044b7aa..cf8ed9a5 100644
--- a/sway/output.c
+++ b/sway/output.c
@@ -2,15 +2,15 @@
 #include "output.h"
 #include "log.h"
 
-swayc_t *output_by_name(const char* name) {
+swayc_t *output_by_name(const char* name, const struct wlc_point *abs_pos) {
 	if (strcasecmp(name, "left") == 0) {
-		return swayc_adjacent_output(NULL, MOVE_LEFT);
+		return swayc_adjacent_output(NULL, MOVE_LEFT, abs_pos, true);
 	} else if (strcasecmp(name, "right") == 0) {
-		return swayc_adjacent_output(NULL, MOVE_RIGHT);
+		return swayc_adjacent_output(NULL, MOVE_RIGHT, abs_pos, true);
 	} else if (strcasecmp(name, "up") == 0) {
-		return swayc_adjacent_output(NULL, MOVE_UP);
+		return swayc_adjacent_output(NULL, MOVE_UP, abs_pos, true);
 	} else if (strcasecmp(name, "down") == 0) {
-		return swayc_adjacent_output(NULL, MOVE_DOWN);
+		return swayc_adjacent_output(NULL, MOVE_DOWN, abs_pos, true);
 	} else {
 		for(int i = 0; i < root_container.children->length; ++i) {
 			swayc_t *c = root_container.children->items[i];
@@ -22,65 +22,125 @@ swayc_t *output_by_name(const char* name) {
 	return NULL;
 }
 
-swayc_t *swayc_adjacent_output(swayc_t *output, enum movement_direction dir) {
-	// TODO: This implementation is naïve: We assume all outputs are
-	// perfectly aligned (ie. only a single output per edge which covers
-	// the whole edge).
+// Position is where on the edge (as absolute position) the adjacent output should be searched for.
+swayc_t *swayc_adjacent_output(swayc_t *output, enum movement_direction dir,
+		const struct wlc_point *abs_pos, bool pick_closest) {
+
 	if (!output) {
 		output = swayc_active_output();
 	}
+	// In order to find adjacent outputs we need to test that the outputs are
+	// aligned on one axis (decided by the direction given) and that the given
+	// position is within the edge of the adjacent output. If no such output
+	// exists we pick the adjacent output within the edge that is closest to
+	// the given position, if any.
 	swayc_t *adjacent = NULL;
+	char *dir_text = NULL;
 	switch(dir) {
 		case MOVE_LEFT:
+		case MOVE_RIGHT: ;
+			double delta_y = 0;
 			for(int i = 0; i < root_container.children->length; ++i) {
 				swayc_t *c = root_container.children->items[i];
 				if (c == output || c->type != C_OUTPUT) {
 					continue;
 				}
-				if (c->y == output->y && c->x + c->width == output->x) {
-					sway_log(L_DEBUG, "%s is left of current output %s", c->name, output->name);
+				bool x_aligned = dir == MOVE_LEFT ?
+					c->x + c->width == output->x :
+					c->x == output->x + output->width;
+				if (!x_aligned) {
+					continue;
+				}
+				if (abs_pos->y >= c->y && abs_pos->y <= c->y + c->height) {
+					delta_y = 0;
 					adjacent = c;
 					break;
+				} else if (pick_closest) {
+					// track closest adjacent output
+					double top_y = c->y, bottom_y = c->y + c->height;
+					if (top_y >= output->y && top_y <= output->y + output->height) {
+						double delta = top_y - abs_pos->y;
+						if (delta < 0) delta = -delta;
+						if (delta < delta_y || !adjacent) {
+							delta_y = delta;
+							adjacent = c;
+						}
+					}
+					// we check both points and pick the closest
+					if (bottom_y >= output->y && bottom_y <= output->y + output->height) {
+						double delta = bottom_y - abs_pos->y;
+						if (delta < 0) delta = -delta;
+						if (delta < delta_y || !adjacent) {
+							delta_y = delta;
+							adjacent = c;
+						}
+					}
 				}
 			}
-			break;
-		case MOVE_RIGHT:
-			for(int i = 0; i < root_container.children->length; ++i) {
-				swayc_t *c = root_container.children->items[i];
-				if (c == output || c->type != C_OUTPUT) {
-					continue;
-				}
-				if (c->y == output->y && output->x + output->width == c->x) {
-					sway_log(L_DEBUG, "%s is right of current output %s", c->name, output->name);
-					adjacent = c;
-					break;
-				}
+			dir_text = dir == MOVE_LEFT ? "left of" : "right of";
+			if (adjacent && delta_y == 0) {
+				sway_log(L_DEBUG, "%s (%.0fx%.0f+%.0f+%.0f) is %s current output %s (y-position %i)",
+						adjacent->name, adjacent->width, adjacent->height, adjacent->x, adjacent->y,
+						dir_text, output->name, abs_pos->y);
+			} else if (adjacent) {
+				// so we end up picking the closest adjacent output because
+				// there is no directly adjacent to the given position
+				sway_log(L_DEBUG, "%s (%.0fx%.0f+%.0f+%.0f) is %s current output %s (y-position %i, delta: %.0f)",
+					adjacent->name, adjacent->width, adjacent->height, adjacent->x, adjacent->y,
+					dir_text, output->name, abs_pos->y, delta_y);
 			}
 			break;
 		case MOVE_UP:
+		case MOVE_DOWN: ;
+			double delta_x = 0;
 			for(int i = 0; i < root_container.children->length; ++i) {
 				swayc_t *c = root_container.children->items[i];
 				if (c == output || c->type != C_OUTPUT) {
 					continue;
 				}
-				if (output->x == c->x && c->y + c->height == output->y) {
-					sway_log(L_DEBUG, "%s is above current output %s", c->name, output->name);
+				bool y_aligned = dir == MOVE_UP ?
+					c->y + c->height == output->y :
+					c->y == output->y + output->height;
+				if (!y_aligned) {
+					continue;
+				}
+				if (abs_pos->x >= c->x && abs_pos->x <= c->x + c->width) {
+					delta_x = 0;
 					adjacent = c;
 					break;
+				} else if (pick_closest) {
+					// track closest adjacent output
+					double left_x = c->x, right_x = c->x + c->width;
+					if (left_x >= output->x && left_x <= output->x + output->width) {
+						double delta = left_x - abs_pos->x;
+						if (delta < 0) delta = -delta;
+						if (delta < delta_x || !adjacent) {
+							delta_x = delta;
+							adjacent = c;
+						}
+					}
+					// we check both points and pick the closest
+					if (right_x >= output->x && right_x <= output->x + output->width) {
+						double delta = right_x - abs_pos->x;
+						if (delta < 0) delta = -delta;
+						if (delta < delta_x || !adjacent) {
+							delta_x = delta;
+							adjacent = c;
+						}
+					}
 				}
 			}
-			break;
-		case MOVE_DOWN:
-			for(int i = 0; i < root_container.children->length; ++i) {
-				swayc_t *c = root_container.children->items[i];
-				if (c == output || c->type != C_OUTPUT) {
-					continue;
-				}
-				if (output->x == c->x && output->y + output->height == c->y) {
-					sway_log(L_DEBUG, "%s is below current output %s", c->name, output->name);
-					adjacent = c;
-					break;
-				}
+			dir_text = dir == MOVE_UP ? "above" : "below";
+			if (adjacent && delta_x == 0) {
+				sway_log(L_DEBUG, "%s (%.0fx%.0f+%.0f+%.0f) is %s current output %s (x-position %i)",
+						adjacent->name, adjacent->width, adjacent->height, adjacent->x, adjacent->y,
+						dir_text, output->name, abs_pos->x);
+			} else if (adjacent) {
+				// so we end up picking the closest adjacent output because
+				// there is no directly adjacent to the given position
+				sway_log(L_DEBUG, "%s (%.0fx%.0f+%.0f+%.0f) is %s current output %s (x-position %i, delta: %.0f)",
+					adjacent->name, adjacent->width, adjacent->height, adjacent->x, adjacent->y,
+					dir_text, output->name, abs_pos->x, delta_x);
 			}
 			break;
 		default:
@@ -89,3 +149,31 @@ swayc_t *swayc_adjacent_output(swayc_t *output, enum movement_direction dir) {
 	}
 	return adjacent;
 }
+
+void get_absolute_position(swayc_t *container, struct wlc_point *point) {
+	if (!container || !point)
+		sway_abort("Need container and wlc_point (was %p, %p).", container, point);
+
+	if (container->type == C_OUTPUT) {
+		// Coordinates are already absolute.
+		point->x = container->x;
+		point->y = container->y;
+	} else {
+		swayc_t *output = swayc_parent_by_type(container, C_OUTPUT);
+		if (container->type == C_WORKSPACE) {
+			// Workspace coordinates are actually wrong/arbitrary, but should
+			// be same as output.
+			point->x = output->x;
+			point->y = output->y;
+		} else {
+			point->x = output->x + container->x;
+			point->y = output->y + container->y;
+		}
+	}
+}
+
+void get_absolute_center_position(swayc_t *container, struct wlc_point *point) {
+	get_absolute_position(container, point);
+	point->x += container->width/2;
+	point->y += container->height/2;
+}