diff --git a/include/sway/input/input-manager.h b/include/sway/input/input-manager.h
index 145edd4b6..45c751994 100644
--- a/include/sway/input/input-manager.h
+++ b/include/sway/input/input-manager.h
@@ -4,6 +4,7 @@
 #include <wlr/types/wlr_keyboard_shortcuts_inhibit_v1.h>
 #include <wlr/types/wlr_virtual_keyboard_v1.h>
 #include <wlr/types/wlr_virtual_pointer_v1.h>
+#include <wlr/types/wlr_transient_seat_v1.h>
 #include "sway/server.h"
 #include "sway/config.h"
 #include "list.h"
@@ -24,6 +25,7 @@ struct sway_input_manager {
 	struct wlr_virtual_keyboard_manager_v1 *virtual_keyboard;
 	struct wlr_virtual_pointer_manager_v1 *virtual_pointer;
 	struct wlr_pointer_gestures_v1 *pointer_gestures;
+	struct wlr_transient_seat_manager_v1 *transient_seat_manager;
 
 	struct wl_listener new_input;
 	struct wl_listener inhibit_activate;
@@ -31,6 +33,7 @@ struct sway_input_manager {
 	struct wl_listener keyboard_shortcuts_inhibit_new_inhibitor;
 	struct wl_listener virtual_keyboard_new;
 	struct wl_listener virtual_pointer_new;
+	struct wl_listener transient_seat_create;
 };
 
 struct sway_input_manager *input_manager_create(struct sway_server *server);
diff --git a/include/sway/input/seat.h b/include/sway/input/seat.h
index 475753d8a..428f96796 100644
--- a/include/sway/input/seat.h
+++ b/include/sway/input/seat.h
@@ -124,6 +124,7 @@ struct sway_seat {
 	struct wl_listener start_drag;
 	struct wl_listener request_set_selection;
 	struct wl_listener request_set_primary_selection;
+	struct wl_listener destroy;
 
 	struct wl_list devices; // sway_seat_device::link
 	struct wl_list keyboard_groups; // sway_keyboard_group::link
diff --git a/include/sway/output.h b/include/sway/output.h
index 30595f545..d546d4884 100644
--- a/include/sway/output.h
+++ b/include/sway/output.h
@@ -50,7 +50,7 @@ struct sway_output {
 	enum wl_output_subpixel detected_subpixel;
 	enum scale_filter_mode scale_filter;
 
-	bool enabling, enabled;
+	bool enabled;
 	list_t *workspaces;
 
 	struct sway_output_state current;
diff --git a/include/sway/server.h b/include/sway/server.h
index b2eb2c365..c71851f68 100644
--- a/include/sway/server.h
+++ b/include/sway/server.h
@@ -46,6 +46,7 @@ struct sway_server {
 
 	struct wl_listener new_output;
 	struct wl_listener output_layout_change;
+	struct wl_listener renderer_lost;
 
 	struct wlr_idle_notifier_v1 *idle_notifier_v1;
 	struct sway_idle_inhibit_manager_v1 idle_inhibit_manager_v1;
diff --git a/include/sway/tree/view.h b/include/sway/tree/view.h
index ef1a26b8c..7faacdcc2 100644
--- a/include/sway/tree/view.h
+++ b/include/sway/tree/view.h
@@ -192,6 +192,7 @@ struct sway_xdg_popup {
 
 	struct wl_listener surface_commit;
 	struct wl_listener new_popup;
+	struct wl_listener reposition;
 	struct wl_listener destroy;
 };
 
diff --git a/sway/config/output.c b/sway/config/output.c
index 557797710..1b2332e95 100644
--- a/sway/config/output.c
+++ b/sway/config/output.c
@@ -510,9 +510,6 @@ bool apply_output_config(struct output_config *oc, struct sway_output *output) {
 
 	struct wlr_output *wlr_output = output->wlr_output;
 
-	// Flag to prevent the output mode event handler from calling us
-	output->enabling = (!oc || oc->enabled);
-
 	struct wlr_output_state pending = {0};
 	queue_output_config(oc, output, &pending);
 
@@ -522,12 +519,9 @@ bool apply_output_config(struct output_config *oc, struct sway_output *output) {
 		// Leave the output disabled for now and try again when the output gets
 		// the mode we asked for.
 		sway_log(SWAY_ERROR, "Failed to commit output %s", wlr_output->name);
-		output->enabling = false;
 		return false;
 	}
 
-	output->enabling = false;
-
 	if (oc && !oc->enabled) {
 		sway_log(SWAY_DEBUG, "Disabling output %s", oc->name);
 		if (output->enabled) {
diff --git a/sway/desktop/output.c b/sway/desktop/output.c
index 600423bcf..b8f2d32d2 100644
--- a/sway/desktop/output.c
+++ b/sway/desktop/output.c
@@ -183,7 +183,15 @@ static void send_frame_done_iterator(struct wlr_scene_buffer *buffer,
 	}
 }
 
-static enum wlr_scale_filter_mode get_scale_filter(struct sway_output *output) {
+static enum wlr_scale_filter_mode get_scale_filter(struct sway_output *output,
+		struct wlr_scene_buffer *buffer) {
+	// if we are scaling down, we should always choose linear
+	if (buffer->dst_width > 0 && buffer->dst_height > 0 && (
+			buffer->dst_width < buffer->buffer_width ||
+			buffer->dst_height < buffer->buffer_height)) {
+		return WLR_SCALE_FILTER_BILINEAR;
+	}
+
 	switch (output->scale_filter) {
 	case SCALE_FILTER_LINEAR:
 		return WLR_SCALE_FILTER_BILINEAR;
@@ -212,7 +220,7 @@ static void output_configure_scene(struct sway_output *output,
 		// hack: don't call the scene setter because that will damage all outputs
 		// We don't want to damage outputs that aren't our current output that
 		// we're configuring
-		buffer->filter_mode = get_scale_filter(output);
+		buffer->filter_mode = get_scale_filter(output, buffer);
 
 		wlr_scene_buffer_set_opacity(buffer, opacity);
 	} else if (node->type == WLR_SCENE_NODE_TREE) {
diff --git a/sway/desktop/xdg_shell.c b/sway/desktop/xdg_shell.c
index 27a73f8a0..7c4178910 100644
--- a/sway/desktop/xdg_shell.c
+++ b/sway/desktop/xdg_shell.c
@@ -35,6 +35,7 @@ static void popup_handle_destroy(struct wl_listener *listener, void *data) {
 	wl_list_remove(&popup->new_popup.link);
 	wl_list_remove(&popup->destroy.link);
 	wl_list_remove(&popup->surface_commit.link);
+	wl_list_remove(&popup->reposition.link);
 	wlr_scene_node_destroy(&popup->scene_tree->node);
 	free(popup);
 }
@@ -70,6 +71,11 @@ static void popup_handle_surface_commit(struct wl_listener *listener, void *data
 	}
 }
 
+static void popup_handle_reposition(struct wl_listener *listener, void *data) {
+	struct sway_xdg_popup *popup = wl_container_of(listener, popup, reposition);
+	popup_unconstrain(popup);
+}
+
 static struct sway_xdg_popup *popup_create(struct wlr_xdg_popup *wlr_popup,
 		struct sway_view *view, struct wlr_scene_tree *parent) {
 	struct wlr_xdg_surface *xdg_surface = wlr_popup->base;
@@ -116,6 +122,8 @@ static struct sway_xdg_popup *popup_create(struct wlr_xdg_popup *wlr_popup,
 	popup->surface_commit.notify = popup_handle_surface_commit;
 	wl_signal_add(&xdg_surface->events.new_popup, &popup->new_popup);
 	popup->new_popup.notify = popup_handle_new_popup;
+	wl_signal_add(&wlr_popup->events.reposition, &popup->reposition);
+	popup->reposition.notify = popup_handle_reposition;
 	wl_signal_add(&wlr_popup->events.destroy, &popup->destroy);
 	popup->destroy.notify = popup_handle_destroy;
 
@@ -281,6 +289,7 @@ static void handle_commit(struct wl_listener *listener, void *data) {
 		}
 		// XXX: https://github.com/swaywm/sway/issues/2176
 		wlr_xdg_surface_schedule_configure(xdg_surface);
+		// TODO: wlr_xdg_toplevel_set_bounds()
 		return;
 	}
 
@@ -566,4 +575,7 @@ void handle_xdg_shell_toplevel(struct wl_listener *listener, void *data) {
 	wlr_scene_xdg_surface_create(xdg_shell_view->view.content_tree, xdg_toplevel->base);
 
 	xdg_toplevel->base->data = xdg_shell_view;
+
+	wlr_xdg_toplevel_set_wm_capabilities(xdg_toplevel,
+		XDG_TOPLEVEL_WM_CAPABILITIES_FULLSCREEN);
 }
diff --git a/sway/input/input-manager.c b/sway/input/input-manager.c
index 089e1e718..248ca34ee 100644
--- a/sway/input/input-manager.c
+++ b/sway/input/input-manager.c
@@ -2,7 +2,9 @@
 #include <stdio.h>
 #include <string.h>
 #include <math.h>
+#include <assert.h>
 #include <wlr/config.h>
+#include <wlr/backend/libinput.h>
 #include <wlr/types/wlr_cursor.h>
 #include <wlr/types/wlr_keyboard_group.h>
 #include <wlr/types/wlr_virtual_keyboard_v1.h>
@@ -431,6 +433,20 @@ void handle_virtual_pointer(struct wl_listener *listener, void *data) {
 	}
 }
 
+static void handle_transient_seat_manager_create_seat(
+		struct wl_listener *listener, void *data) {
+	struct wlr_transient_seat_v1 *transient_seat = data;
+	static uint64_t i;
+	char name[256];
+	snprintf(name, sizeof(name), "transient-%"PRIx64, i++);
+	struct sway_seat *seat = seat_create(name);
+	if (seat && seat->wlr_seat) {
+		wlr_transient_seat_v1_ready(transient_seat, seat->wlr_seat);
+	} else {
+		wlr_transient_seat_v1_deny(transient_seat);
+	}
+}
+
 struct sway_input_manager *input_manager_create(struct sway_server *server) {
 	struct sway_input_manager *input =
 		calloc(1, sizeof(struct sway_input_manager));
@@ -466,6 +482,15 @@ struct sway_input_manager *input_manager_create(struct sway_server *server) {
 
 	input->pointer_gestures = wlr_pointer_gestures_v1_create(server->wl_display);
 
+	input->transient_seat_manager =
+		wlr_transient_seat_manager_v1_create(server->wl_display);
+	assert(input->transient_seat_manager);
+
+	input->transient_seat_create.notify =
+		handle_transient_seat_manager_create_seat;
+	wl_signal_add(&input->transient_seat_manager->events.create_seat,
+			&input->transient_seat_create);
+
 	return input;
 }
 
diff --git a/sway/input/seat.c b/sway/input/seat.c
index f24868935..0c5672bca 100644
--- a/sway/input/seat.c
+++ b/sway/input/seat.c
@@ -67,6 +67,12 @@ static void seat_node_destroy(struct sway_seat_node *seat_node) {
 }
 
 void seat_destroy(struct sway_seat *seat) {
+	wlr_seat_destroy(seat->wlr_seat);
+}
+
+static void handle_seat_destroy(struct wl_listener *listener, void *data) {
+	struct sway_seat *seat = wl_container_of(listener, seat, destroy);
+
 	if (seat == config->handler_context.seat) {
 		config->handler_context.seat = input_manager_get_default_seat();
 	}
@@ -87,7 +93,7 @@ void seat_destroy(struct sway_seat *seat) {
 	wl_list_remove(&seat->request_set_selection.link);
 	wl_list_remove(&seat->request_set_primary_selection.link);
 	wl_list_remove(&seat->link);
-	wlr_seat_destroy(seat->wlr_seat);
+	wl_list_remove(&seat->destroy.link);
 	for (int i = 0; i < seat->deferred_bindings->length; i++) {
 		free_sway_binding(seat->deferred_bindings->items[i]);
 	}
@@ -534,6 +540,9 @@ struct sway_seat *seat_create(const char *seat_name) {
 		return NULL;
 	}
 
+	seat->destroy.notify = handle_seat_destroy;
+	wl_signal_add(&seat->wlr_seat->events.destroy, &seat->destroy);
+
 	seat->idle_inhibit_sources = seat->idle_wake_sources =
 		IDLE_SOURCE_KEYBOARD |
 		IDLE_SOURCE_POINTER |
diff --git a/sway/server.c b/sway/server.c
index 684b1dbde..d159dc9bd 100644
--- a/sway/server.c
+++ b/sway/server.c
@@ -65,7 +65,7 @@
 #include <wlr/types/wlr_drm_lease_v1.h>
 #endif
 
-#define SWAY_XDG_SHELL_VERSION 2
+#define SWAY_XDG_SHELL_VERSION 5
 #define SWAY_LAYER_SHELL_VERSION 4
 #define SWAY_FOREIGN_TOPLEVEL_LIST_VERSION 1
 
@@ -112,7 +112,8 @@ static bool is_privileged(const struct wl_global *global) {
 		global == server.session_lock.manager->global ||
 		global == server.input->keyboard_shortcuts_inhibit->global ||
 		global == server.input->virtual_keyboard->global ||
-		global == server.input->virtual_pointer->global;
+		global == server.input->virtual_pointer->global ||
+		global == server.input->transient_seat_manager->global;
 }
 
 static bool filter_global(const struct wl_client *client,
@@ -172,6 +173,45 @@ static void detect_proprietary(struct wlr_backend *backend, void *data) {
 	drmFreeVersion(version);
 }
 
+static void handle_renderer_lost(struct wl_listener *listener, void *data) {
+	struct sway_server *server = wl_container_of(listener, server, renderer_lost);
+
+	sway_log(SWAY_INFO, "Re-creating renderer after GPU reset");
+
+	struct wlr_renderer *renderer = wlr_renderer_autocreate(server->backend);
+	if (renderer == NULL) {
+		sway_log(SWAY_ERROR, "Unable to create renderer");
+		return;
+	}
+
+	struct wlr_allocator *allocator =
+		wlr_allocator_autocreate(server->backend, renderer);
+	if (allocator == NULL) {
+		sway_log(SWAY_ERROR, "Unable to create allocator");
+		wlr_renderer_destroy(renderer);
+		return;
+	}
+
+	struct wlr_renderer *old_renderer = server->renderer;
+	struct wlr_allocator *old_allocator = server->allocator;
+	server->renderer = renderer;
+	server->allocator = allocator;
+
+	wl_list_remove(&server->renderer_lost.link);
+	wl_signal_add(&server->renderer->events.lost, &server->renderer_lost);
+
+	wlr_compositor_set_renderer(server->compositor, renderer);
+
+	for (int i = 0; i < root->outputs->length; ++i) {
+		struct sway_output *output = root->outputs->items[i];
+		wlr_output_init_render(output->wlr_output,
+			server->allocator, server->renderer);
+	}
+
+	wlr_allocator_destroy(old_allocator);
+	wlr_renderer_destroy(old_renderer);
+}
+
 bool server_init(struct sway_server *server) {
 	sway_log(SWAY_DEBUG, "Initializing Wayland server");
 	server->wl_display = wl_display_create();
@@ -195,6 +235,9 @@ bool server_init(struct sway_server *server) {
 		return false;
 	}
 
+	server->renderer_lost.notify = handle_renderer_lost;
+	wl_signal_add(&server->renderer->events.lost, &server->renderer_lost);
+
 	wlr_renderer_init_wl_shm(server->renderer, server->wl_display);
 
 	if (wlr_renderer_get_dmabuf_texture_formats(server->renderer) != NULL) {
@@ -399,6 +442,7 @@ void server_fini(struct sway_server *server) {
 	wlr_xwayland_destroy(server->xwayland.wlr_xwayland);
 #endif
 	wl_display_destroy_clients(server->wl_display);
+	wlr_backend_destroy(server->backend);
 	wl_display_destroy(server->wl_display);
 	list_free(server->dirty_nodes);
 }
diff --git a/sway/sway-output.5.scd b/sway/sway-output.5.scd
index 028cb7abc..7d088d5db 100644
--- a/sway/sway-output.5.scd
+++ b/sway/sway-output.5.scd
@@ -72,13 +72,11 @@ must be separated by one space. For example:
 
 *output* <name> scale <factor>
 	Scales the specified output by the specified scale _factor_. An integer is
-	recommended, but fractional values are also supported. If a fractional
-	value are specified, be warned that it is not possible to faithfully
-	represent the contents of your windows - they will be rendered at the next
-	highest integer scale factor and downscaled. You may be better served by
-	setting an integer scale factor and adjusting the font size of your
-	applications to taste. HiDPI isn't supported with Xwayland clients (windows
-	will blur).
+	recommended, but fractional values are also supported. You may be better
+	served by setting an integer scale factor and adjusting the font size of
+	your applications to taste. HiDPI isn't supported with Xwayland clients
+	(windows will blur). A fractional scale may be slightly adjusted to match
+	requirements of the protocol.
 
 *output* <name> scale_filter linear|nearest|smart
 	Indicates how to scale application buffers that are rendered at a scale