diff --git a/include/sway/config.h b/include/sway/config.h
index 7de85ab7c..1b49c5c95 100644
--- a/include/sway/config.h
+++ b/include/sway/config.h
@@ -6,6 +6,7 @@
 #include <libinput.h>
 #include <stdint.h>
 #include <string.h>
+#include <wayland-server.h>
 #include <wlr/types/wlr_box.h>
 #include <xkbcommon/xkbcommon.h>
 #include <time.h>
@@ -80,8 +81,11 @@ struct output_config {
 	char *name;
 	int enabled;
 	int width, height;
+	float refresh_rate;
 	int x, y;
 	int scale;
+	enum wl_output_transform transform;
+
 	char *background;
 	char *background_option;
 };
diff --git a/include/sway/container.h b/include/sway/container.h
index 08a98ed95..e3f84fc64 100644
--- a/include/sway/container.h
+++ b/include/sway/container.h
@@ -132,6 +132,7 @@ swayc_t *new_output(struct sway_output *sway_output);
 swayc_t *new_workspace(swayc_t *output, const char *name);
 swayc_t *new_view(swayc_t *sibling, struct sway_view *sway_view);
 
+swayc_t *destroy_output(swayc_t *output);
 swayc_t *destroy_view(swayc_t *view);
 
 swayc_t *swayc_parent_by_type(swayc_t *container, enum swayc_types type);
diff --git a/sway/commands.c b/sway/commands.c
index 176381299..961cb8676 100644
--- a/sway/commands.c
+++ b/sway/commands.c
@@ -95,6 +95,7 @@ static struct cmd_handler handlers[] = {
 	{ "exec", cmd_exec },
 	{ "exec_always", cmd_exec_always },
 	{ "exit", cmd_exit },
+	{ "output", cmd_output },
 };
 
 static int handler_compare(const void *_a, const void *_b) {
diff --git a/sway/commands/output.c b/sway/commands/output.c
new file mode 100644
index 000000000..c964bef71
--- /dev/null
+++ b/sway/commands/output.c
@@ -0,0 +1,253 @@
+#define _XOPEN_SOURCE 500
+#include <ctype.h>
+#include <libgen.h>
+#include <stdlib.h>
+#include <string.h>
+#include <strings.h>
+#include <unistd.h>
+#include <wordexp.h>
+#include "sway/commands.h"
+#include "sway/config.h"
+#include "list.h"
+#include "log.h"
+#include "stringop.h"
+
+static char *bg_options[] = {
+	"stretch",
+	"center",
+	"fill",
+	"fit",
+	"tile",
+};
+
+struct cmd_results *cmd_output(int argc, char **argv) {
+	struct cmd_results *error = NULL;
+	if ((error = checkarg(argc, "output", EXPECTED_AT_LEAST, 1))) {
+		return error;
+	}
+	const char *name = argv[0];
+
+	struct output_config *output = calloc(1, sizeof(struct output_config));
+	if (!output) {
+		return cmd_results_new(CMD_FAILURE, "output", "Unable to allocate output config");
+	}
+	output->x = output->y = output->width = output->height = -1;
+	output->name = strdup(name);
+	output->enabled = -1;
+	output->scale = 1;
+
+	// TODO: atoi doesn't handle invalid numbers
+
+	int i;
+	for (i = 1; i < argc; ++i) {
+		const char *command = argv[i];
+
+		if (strcasecmp(command, "disable") == 0) {
+			output->enabled = 0;
+		} else if (strcasecmp(command, "resolution") == 0 || strcasecmp(command, "res") == 0) {
+			if (++i >= argc) {
+				error = cmd_results_new(CMD_INVALID, "output", "Missing resolution argument.");
+				goto fail;
+			}
+			char *res = argv[i];
+			char *x = strchr(res, 'x');
+			int width = -1, height = -1;
+			if (x != NULL) {
+				// Format is 1234x4321
+				*x = '\0';
+				width = atoi(res);
+				height = atoi(x + 1);
+				*x = 'x';
+			} else {
+				// Format is 1234 4321
+				width = atoi(res);
+				if (++i >= argc) {
+					error = cmd_results_new(CMD_INVALID, "output", "Missing resolution argument (height).");
+					goto fail;
+				}
+				res = argv[i];
+				height = atoi(res);
+			}
+			output->width = width;
+			output->height = height;
+		} else if (strcasecmp(command, "refresh_rate") == 0) {
+			if (++i >= argc) {
+				error = cmd_results_new(CMD_INVALID, "output", "Missing refresh_rate argument.");
+				goto fail;
+			}
+			output->refresh_rate = atof(argv[i]);
+		} else if (strcasecmp(command, "position") == 0 || strcasecmp(command, "pos") == 0) {
+			if (++i >= argc) {
+				error = cmd_results_new(CMD_INVALID, "output", "Missing position argument.");
+				goto fail;
+			}
+			char *res = argv[i];
+			char *c = strchr(res, ',');
+			int x = -1, y = -1;
+			if (c != NULL) {
+				// Format is 1234,4321
+				*c = '\0';
+				x = atoi(res);
+				y = atoi(c + 1);
+				*c = ',';
+			} else {
+				// Format is 1234 4321
+				x = atoi(res);
+				if (++i >= argc) {
+					error = cmd_results_new(CMD_INVALID, "output", "Missing position argument (y).");
+					goto fail;
+				}
+				res = argv[i];
+				y = atoi(res);
+			}
+			output->x = x;
+			output->y = y;
+		} else if (strcasecmp(command, "scale") == 0) {
+			if (++i >= argc) {
+				error = cmd_results_new(CMD_INVALID, "output", "Missing scale parameter.");
+				goto fail;
+			}
+			output->scale = atoi(argv[i]);
+		} else if (strcasecmp(command, "transform") == 0) {
+			if (++i >= argc) {
+				error = cmd_results_new(CMD_INVALID, "output", "Missing transform parameter.");
+				goto fail;
+			}
+			char *value = argv[i];
+			if (strcmp(value, "normal") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_NORMAL;
+			} else if (strcmp(value, "90") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_90;
+			} else if (strcmp(value, "180") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_180;
+			} else if (strcmp(value, "270") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_270;
+			} else if (strcmp(value, "flipped") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_FLIPPED;
+			} else if (strcmp(value, "flipped-90") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_FLIPPED_90;
+			} else if (strcmp(value, "flipped-180") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_FLIPPED_180;
+			} else if (strcmp(value, "flipped-270") == 0) {
+				output->transform = WL_OUTPUT_TRANSFORM_FLIPPED_270;
+			} else {
+				error = cmd_results_new(CMD_INVALID, "output", "Invalid output transform.");
+				goto fail;
+			}
+		} else if (strcasecmp(command, "background") == 0 || strcasecmp(command, "bg") == 0) {
+			wordexp_t p;
+			if (++i >= argc) {
+				error = cmd_results_new(CMD_INVALID, "output", "Missing background file or color specification.");
+				goto fail;
+			}
+			if (i + 1 >= argc) {
+				error = cmd_results_new(CMD_INVALID, "output", "Missing background scaling mode or `solid_color`.");
+				goto fail;
+			}
+			if (strcasecmp(argv[i + 1], "solid_color") == 0) {
+				output->background = strdup(argv[argc - 2]);
+				output->background_option = strdup("solid_color");
+			} else {
+				// argv[i+j]=bg_option
+				bool valid = false;
+				char *mode;
+				size_t j;
+				for (j = 0; j < (size_t) (argc - i); ++j) {
+					mode = argv[i + j];
+					for (size_t k = 0; k < sizeof(bg_options) / sizeof(char *); ++k) {
+						if (strcasecmp(mode, bg_options[k]) == 0) {
+							valid = true;
+							break;
+						}
+					}
+					if (valid) {
+						break;
+					}
+				}
+				if (!valid) {
+					error = cmd_results_new(CMD_INVALID, "output", "Missing background scaling mode.");
+					goto fail;
+				}
+
+				char *src = join_args(argv + i, j);
+				if (wordexp(src, &p, 0) != 0 || p.we_wordv[0] == NULL) {
+					error = cmd_results_new(CMD_INVALID, "output", "Invalid syntax (%s)", src);
+					goto fail;
+				}
+				free(src);
+				src = p.we_wordv[0];
+				if (config->reading && *src != '/') {
+					char *conf = strdup(config->current_config);
+					if (conf) {
+						char *conf_path = dirname(conf);
+						src = malloc(strlen(conf_path) + strlen(src) + 2);
+						if (src) {
+							sprintf(src, "%s/%s", conf_path, p.we_wordv[0]);
+						} else {
+							sway_log(L_ERROR, "Unable to allocate background source");
+						}
+						free(conf);
+					} else {
+						sway_log(L_ERROR, "Unable to allocate background source");
+					}
+				}
+				if (!src || access(src, F_OK) == -1) {
+					error = cmd_results_new(CMD_INVALID, "output", "Background file unreadable (%s)", src);
+					wordfree(&p);
+					goto fail;
+				}
+
+				output->background = strdup(src);
+				output->background_option = strdup(mode);
+				if (src != p.we_wordv[0]) {
+					free(src);
+				}
+				wordfree(&p);
+
+				i += j;
+			}
+		}
+	}
+
+	i = list_seq_find(config->output_configs, output_name_cmp, name);
+	if (i >= 0) {
+		// merge existing config
+		struct output_config *oc = config->output_configs->items[i];
+		merge_output_config(oc, output);
+		free_output_config(output);
+		output = oc;
+	} else {
+		list_add(config->output_configs, output);
+	}
+
+	sway_log(L_DEBUG, "Config stored for output %s (enabled:%d) (%d x %d @ "
+			"%d, %d scale %d transform %d refresh_rate %f) (bg %s %s)",
+			output->name, output->enabled, output->width,
+			output->height, output->x, output->y, output->scale,
+			output->transform, output->refresh_rate,
+			output->background, output->background_option);
+
+	if (output->name) {
+		// Try to find the output container and apply configuration now. If
+		// this is during startup then there will be no container and config
+		// will be applied during normal "new output" event from wlc.
+		swayc_t *cont = NULL;
+		for (int i = 0; i < root_container.children->length; ++i) {
+			cont = root_container.children->items[i];
+			if (cont->name && ((strcmp(cont->name, output->name) == 0) || (strcmp(output->name, "*") == 0))) {
+				apply_output_config(output, cont);
+
+				if (strcmp(output->name, "*") != 0) {
+					// stop looking if the output config isn't applicable to all outputs
+					break;
+				}
+			}
+		}
+	}
+
+	return cmd_results_new(CMD_SUCCESS, NULL, NULL);
+
+fail:
+	free_output_config(output);
+	return error;
+}
diff --git a/sway/config/output.c b/sway/config/output.c
new file mode 100644
index 000000000..02e18e59a
--- /dev/null
+++ b/sway/config/output.c
@@ -0,0 +1,166 @@
+#define _XOPEN_SOURCE 700
+#include <string.h>
+#include <assert.h>
+#include <wlr/types/wlr_output.h>
+#include "sway/config.h"
+#include "sway/output.h"
+#include "log.h"
+
+int output_name_cmp(const void *item, const void *data) {
+	const struct output_config *output = item;
+	const char *name = data;
+
+	return strcmp(output->name, name);
+}
+
+void merge_output_config(struct output_config *dst, struct output_config *src) {
+	if (src->name) {
+		if (dst->name) {
+			free(dst->name);
+		}
+		dst->name = strdup(src->name);
+	}
+	if (src->enabled != -1) {
+		dst->enabled = src->enabled;
+	}
+	if (src->width != -1) {
+		dst->width = src->width;
+	}
+	if (src->height != -1) {
+		dst->height = src->height;
+	}
+	if (src->x != -1) {
+		dst->x = src->x;
+	}
+	if (src->y != -1) {
+		dst->y = src->y;
+	}
+	if (src->scale != -1) {
+		dst->scale = src->scale;
+	}
+	if (src->background) {
+		if (dst->background) {
+			free(dst->background);
+		}
+		dst->background = strdup(src->background);
+	}
+	if (src->background_option) {
+		if (dst->background_option) {
+			free(dst->background_option);
+		}
+		dst->background_option = strdup(src->background_option);
+	}
+}
+
+static void set_mode(struct wlr_output *output, int width, int height,
+		float refresh_rate) {
+	struct wlr_output_mode *mode, *best = NULL;
+	int mhz = (int)(refresh_rate * 1000);
+	wl_list_for_each(mode, &output->modes, link) {
+		if (mode->width == width && mode->height == height) {
+			if (mode->refresh == mhz) {
+				best = mode;
+				break;
+			}
+			best = mode;
+		}
+	}
+	if (!best) {
+		sway_log(L_ERROR, "Configured mode for %s not available", output->name);
+	} else {
+		sway_log(L_DEBUG, "Assigning configured mode to %s", output->name);
+		wlr_output_set_mode(output, best);
+	}
+}
+
+void apply_output_config(struct output_config *oc, swayc_t *output) {
+	assert(output->type == C_OUTPUT);
+
+	if (oc && oc->enabled == 0) {
+		destroy_output(output);
+		return;
+	}
+
+	struct wlr_output *wlr_output = output->sway_output->wlr_output;
+	if (oc && oc->width > 0 && oc->height > 0) {
+		set_mode(wlr_output, oc->width, oc->height, oc->refresh_rate);
+	}
+	if (oc && oc->scale > 0) {
+		wlr_output->scale = oc->scale;
+	}
+	if (oc && oc->transform != WL_OUTPUT_TRANSFORM_NORMAL) {
+		wlr_output_transform(wlr_output, oc->transform);
+	}
+
+	// Find position for it
+	if (oc && oc->x != -1 && oc->y != -1) {
+		sway_log(L_DEBUG, "Set %s position to %d, %d", oc->name, oc->x, oc->y);
+		output->x = oc->x;
+		output->y = oc->y;
+	} else {
+		int x = 0;
+		for (int i = 0; i < root_container.children->length; ++i) {
+			swayc_t *c = root_container.children->items[i];
+			if (c->type == C_OUTPUT) {
+				if (c->width + c->x > x) {
+					x = c->width + c->x;
+				}
+			}
+		}
+		output->x = x;
+	}
+
+	if (!oc || !oc->background) {
+		// Look for a * config for background
+		int i = list_seq_find(config->output_configs, output_name_cmp, "*");
+		if (i >= 0) {
+			oc = config->output_configs->items[i];
+		} else {
+			oc = NULL;
+		}
+	}
+
+	int output_i;
+	for (output_i = 0; output_i < root_container.children->length; ++output_i) {
+		if (root_container.children->items[output_i] == output) {
+			break;
+		}
+	}
+
+	if (oc && oc->background) {
+		// TODO: swaybg
+		/*if (output->bg_pid != 0) {
+			terminate_swaybg(output->bg_pid);
+		}
+
+		sway_log(L_DEBUG, "Setting background for output %d to %s", output_i, oc->background);
+
+		size_t bufsize = 12;
+		char output_id[bufsize];
+		snprintf(output_id, bufsize, "%d", output_i);
+		output_id[bufsize-1] = 0;
+
+		char *const cmd[] = {
+			"swaybg",
+			output_id,
+			oc->background,
+			oc->background_option,
+			NULL,
+		};
+
+		output->bg_pid = fork();
+		if (output->bg_pid == 0) {
+			execvp(cmd[0], cmd);
+		}*/
+	}
+}
+
+void free_output_config(struct output_config *oc) {
+	if (!oc) {
+		return;
+	}
+	free(oc->name);
+	free(oc->background);
+	free(oc->background_option);
+	free(oc);
+}
diff --git a/sway/main.c b/sway/main.c
index bc843591d..8952f9973 100644
--- a/sway/main.c
+++ b/sway/main.c
@@ -404,6 +404,10 @@ int main(int argc, char **argv) {
 
 	security_sanity_check();
 
+	// TODO: wait for server to be ready
+	// TODO: consume config->cmd_queue
+	config->active = true;
+
 	if (!terminate_request) {
 		server_run(&server);
 	}
diff --git a/sway/meson.build b/sway/meson.build
index 84f481378..5ae7fbb3a 100644
--- a/sway/meson.build
+++ b/sway/meson.build
@@ -5,7 +5,9 @@ sway_sources = files(
 	'commands/exit.c',
 	'commands/exec.c',
 	'commands/exec_always.c',
+	'commands/output.c',
 	'config.c',
+	'config/output.c',
 	'ipc-json.c',
 	'ipc-server.c',
 	'desktop/output.c',
diff --git a/sway/tree/container.c b/sway/tree/container.c
index e205fbcf4..7720718fc 100644
--- a/sway/tree/container.c
+++ b/sway/tree/container.c
@@ -2,7 +2,9 @@
 #include <stdint.h>
 #include <stdlib.h>
 #include <string.h>
+#include <strings.h>
 #include <wlr/types/wlr_output_layout.h>
+#include "sway/config.h"
 #include "sway/container.h"
 #include "sway/layout.h"
 #include "sway/output.h"
@@ -23,6 +25,30 @@ void swayc_descendants_of_type(swayc_t *root, enum swayc_types type,
 	}
 }
 
+static void update_root_geometry() {
+	int width = 0;
+	int height = 0;
+	swayc_t *child;
+	int child_width;
+	int child_height;
+
+	for (int i = 0; i < root_container.children->length; ++i) {
+		child = root_container.children->items[i];
+		child_width = child->width + child->x;
+		child_height = child->height + child->y;
+		if (child_width > width) {
+			width = child_width;
+		}
+
+		if (child_height > height) {
+			height = child_height;
+		}
+	}
+
+	root_container.width = width;
+	root_container.height = height;
+}
+
 static swayc_t *new_swayc(enum swayc_types type) {
 	// next id starts at 1 because 0 is assigned to root_container in layout.c
 	static size_t next_id = 1;
@@ -44,10 +70,33 @@ static swayc_t *new_swayc(enum swayc_types type) {
 
 swayc_t *new_output(struct sway_output *sway_output) {
 	struct wlr_box size;
-	wlr_output_effective_resolution(
-			sway_output->wlr_output, &size.width, &size.height);
+	wlr_output_effective_resolution(sway_output->wlr_output, &size.width,
+		&size.height);
 	const char *name = sway_output->wlr_output->name;
 
+	struct output_config *oc = NULL, *all = NULL;
+	for (int i = 0; i < config->output_configs->length; ++i) {
+		struct output_config *cur = config->output_configs->items[i];
+		if (strcasecmp(name, cur->name) == 0) {
+			sway_log(L_DEBUG, "Matched output config for %s", name);
+			oc = cur;
+		}
+		if (strcasecmp("*", cur->name) == 0) {
+			sway_log(L_DEBUG, "Matched wildcard output config for %s", name);
+			all = cur;
+		}
+
+		if (oc && all) {
+			break;
+		}
+	}
+	if (!oc) {
+		oc = all;
+	}
+	if (oc && !oc->enabled) {
+		return NULL;
+	}
+
 	swayc_t *output = new_swayc(C_OUTPUT);
 	output->sway_output = sway_output;
 	output->name = name ? strdup(name) : NULL;
@@ -58,6 +107,8 @@ swayc_t *new_output(struct sway_output *sway_output) {
 	wlr_output_layout_add_auto(root_container.output_layout,
 		sway_output->wlr_output);
 
+	apply_output_config(oc, output);
+
 	add_child(&root_container, output);
 
 	// Create workspace
@@ -139,6 +190,34 @@ static void free_swayc(swayc_t *cont) {
 	free(cont);
 }
 
+swayc_t *destroy_output(swayc_t *output) {
+	if (!sway_assert(output, "null output passed to destroy_output")) {
+		return NULL;
+	}
+	if (output->children->length > 0) {
+		// TODO save workspaces when there are no outputs.
+		// TODO also check if there will ever be no outputs except for exiting
+		// program
+		if (root_container.children->length > 1) {
+			int p = root_container.children->items[0] == output;
+			// Move workspace from this output to another output
+			while (output->children->length) {
+				swayc_t *child = output->children->items[0];
+				remove_child(child);
+				add_child(root_container.children->items[p], child);
+			}
+			sort_workspaces(root_container.children->items[p]);
+			// TODO WLR: is this needed anymore?
+			//update_visibility(root_container.children->items[p]);
+			arrange_windows(root_container.children->items[p], -1, -1);
+		}
+	}
+	sway_log(L_DEBUG, "OUTPUT: Destroying output '%s'", output->name);
+	free_swayc(output);
+	update_root_geometry();
+	return &root_container;
+}
+
 swayc_t *destroy_view(swayc_t *view) {
 	if (!sway_assert(view, "null view passed to destroy_view")) {
 		return NULL;