diff --git a/assets/keymaps/default.json b/assets/keymaps/default.json
index b11a7900880ba44cc3772ab88135670ebbaf29d7..8995654523937ef4a75e0fb8eebf6bc64258a881 100644
--- a/assets/keymaps/default.json
+++ b/assets/keymaps/default.json
@@ -310,7 +310,7 @@
             "cmd-shift-m": "diagnostics::Deploy",
             "cmd-shift-e": "project_panel::ToggleFocus",
             "cmd-alt-s": "workspace::SaveAll",
-            "shift-escape": "workspace::ToggleDock"
+            "shift-escape": "workspace::ActivateOrHideDock"
         }
     },
     // Bindings from Sublime Text
@@ -426,12 +426,5 @@
             "cmd-v": "terminal::Paste",
             "cmd-k": "terminal::Clear"
         }
-    },
-    {
-        "context": "ModalTerminal",
-        "bindings": {
-            "ctrl-cmd-space": "terminal::ShowCharacterPalette",
-            "shift-escape": "terminal::DeployModal"
-        }
     }
 ]
\ No newline at end of file
diff --git a/crates/gpui/src/presenter.rs b/crates/gpui/src/presenter.rs
index dde8de831a60330935d5046a7d18123260c881ad..cba7d343782c09db731266f844181a53294a947b 100644
--- a/crates/gpui/src/presenter.rs
+++ b/crates/gpui/src/presenter.rs
@@ -218,6 +218,7 @@ impl Presenter {
     ) -> bool {
         if let Some(root_view_id) = cx.root_view_id(self.window_id) {
             let mut events_to_send = Vec::new();
+            let mut invalidated_views: HashSet<usize> = Default::default();
 
             // 1. Allocate the correct set of GPUI events generated from the platform events
             //  -> These are usually small: [Mouse Down] or [Mouse up, Click] or [Mouse Moved, Mouse Dragged?]
@@ -242,6 +243,12 @@ impl Presenter {
                                 }
                             })
                             .collect();
+
+                        // Clicked status is used when rendering views via the RenderContext.
+                        // So when it changes, these views need to be rerendered
+                        for clicked_region_id in self.clicked_region_ids.iter() {
+                            invalidated_views.insert(clicked_region_id.view_id());
+                        }
                         self.clicked_button = Some(e.button);
                     }
 
@@ -339,7 +346,6 @@ impl Presenter {
                 self.mouse_position = position;
             }
 
-            let mut invalidated_views: HashSet<usize> = Default::default();
             let mut any_event_handled = false;
             // 2. Process the raw mouse events into region events
             for mut region_event in events_to_send {
@@ -394,12 +400,19 @@ impl Presenter {
                             // Clear clicked regions and clicked button
                             let clicked_region_ids =
                                 std::mem::replace(&mut self.clicked_region_ids, Default::default());
+                            // Clicked status is used when rendering views via the RenderContext.
+                            // So when it changes, these views need to be rerendered
+                            for clicked_region_id in clicked_region_ids.iter() {
+                                invalidated_views.insert(clicked_region_id.view_id());
+                            }
                             self.clicked_button = None;
 
                             // Find regions which still overlap with the mouse since the last MouseDown happened
                             for (mouse_region, _) in self.mouse_regions.iter().rev() {
                                 if clicked_region_ids.contains(&mouse_region.id()) {
-                                    valid_regions.push(mouse_region.clone());
+                                    if mouse_region.bounds.contains_point(self.mouse_position) {
+                                        valid_regions.push(mouse_region.clone());
+                                    }
                                 }
                             }
                         }
@@ -439,13 +452,16 @@ impl Presenter {
                     if let MouseRegionEvent::Hover(e) = &mut region_event {
                         e.started = hovered_region_ids.contains(&valid_region.id())
                     }
-                    // Handle Down events if the MouseRegion has a Click handler. This makes the api more intuitive as you would
+                    // Handle Down events if the MouseRegion has a Click or Drag handler. This makes the api more intuitive as you would
                     // not expect a MouseRegion to be transparent to Down events if it also has a Click handler.
                     // This behavior can be overridden by adding a Down handler that calls cx.propogate_event
                     if let MouseRegionEvent::Down(e) = &region_event {
                         if valid_region
                             .handlers
                             .contains_handler(MouseRegionEvent::click_disc(), Some(e.button))
+                            || valid_region
+                                .handlers
+                                .contains_handler(MouseRegionEvent::drag_disc(), Some(e.button))
                         {
                             event_cx.handled = true;
                         }
diff --git a/crates/terminal/src/modal.rs b/crates/terminal/src/modal.rs
deleted file mode 100644
index 309a11d41f39ec0bad22c020678133f9cbb86c40..0000000000000000000000000000000000000000
--- a/crates/terminal/src/modal.rs
+++ /dev/null
@@ -1,72 +0,0 @@
-use gpui::{ModelHandle, ViewContext};
-use workspace::Workspace;
-
-use crate::{terminal_container_view::DeployModal, Event, Terminal};
-
-pub fn deploy_modal(_workspace: &mut Workspace, _: &DeployModal, _cx: &mut ViewContext<Workspace>) {
-    // let window = cx.window_id();
-
-    // // Pull the terminal connection out of the global if it has been stored
-    // let possible_terminal = Dock::remove::<Terminal, _>(window, cx);
-
-    // if let Some(terminal_handle) = possible_terminal {
-    //     workspace.toggle_modal(cx, |_, cx| {
-    //         // Create a view from the stored connection if the terminal modal is not already shown
-    //         cx.add_view(|cx| TerminalContainer::from_terminal(terminal_handle.clone(), true, cx))
-    //     });
-    //     // Toggle Modal will dismiss the terminal modal if it is currently shown, so we must
-    //     // store the terminal back in the global
-    //     Dock::insert_or_replace::<Terminal, _>(window, terminal_handle, cx);
-    // } else {
-    //     // No connection was stored, create a new terminal
-    //     if let Some(closed_terminal_handle) = workspace.toggle_modal(cx, |workspace, cx| {
-    //         // No terminal modal visible, construct a new one.
-    //         let wd_strategy = cx
-    //             .global::<Settings>()
-    //             .terminal_overrides
-    //             .working_directory
-    //             .clone()
-    //             .unwrap_or(WorkingDirectory::CurrentProjectDirectory);
-
-    //         let working_directory = get_working_directory(workspace, cx, wd_strategy);
-
-    //         let this = cx.add_view(|cx| TerminalContainer::new(working_directory, true, cx));
-
-    //         if let TerminalContainerContent::Connected(connected) = &this.read(cx).content {
-    //             let terminal_handle = connected.read(cx).handle();
-    //             cx.subscribe(&terminal_handle, on_event).detach();
-    //             // Set the global immediately if terminal construction was successful,
-    //             // in case the user opens the command palette
-    //             Dock::insert_or_replace::<Terminal, _>(window, terminal_handle, cx);
-    //         }
-
-    //         this
-    //     }) {
-    //         // Terminal modal was dismissed and the terminal view is connected, store the terminal
-    //         if let TerminalContainerContent::Connected(connected) =
-    //             &closed_terminal_handle.read(cx).content
-    //         {
-    //             let terminal_handle = connected.read(cx).handle();
-    //             // Set the global immediately if terminal construction was successful,
-    //             // in case the user opens the command palette
-    //             Dock::insert_or_replace::<Terminal, _>(window, terminal_handle, cx);
-    //         }
-    //     }
-    // }
-}
-
-pub fn on_event(
-    _workspace: &mut Workspace,
-    _: ModelHandle<Terminal>,
-    _event: &Event,
-    _cx: &mut ViewContext<Workspace>,
-) {
-    // Dismiss the modal if the terminal quit
-    // if let Event::CloseTerminal = event {
-    //     Dock::remove::<Terminal, _>(cx.window_id(), cx);
-
-    //     if workspace.modal::<TerminalContainer>().is_some() {
-    //         workspace.dismiss_modal(cx)
-    //     }
-    // }
-}
diff --git a/crates/terminal/src/terminal.rs b/crates/terminal/src/terminal.rs
index d6c22ee6bce68013123028d17fe1e176f9229c66..24c51d0ccac4e320c91d4aa671a37352e590b299 100644
--- a/crates/terminal/src/terminal.rs
+++ b/crates/terminal/src/terminal.rs
@@ -1,5 +1,4 @@
 pub mod mappings;
-pub mod modal;
 pub mod terminal_container_view;
 pub mod terminal_element;
 pub mod terminal_view;
@@ -32,7 +31,6 @@ use futures::{
 use mappings::mouse::{
     alt_scroll, mouse_button_report, mouse_moved_report, mouse_point, mouse_side, scroll_report,
 };
-use modal::deploy_modal;
 
 use procinfo::LocalProcessInfo;
 use settings::{AlternateScroll, Settings, Shell, TerminalBlink};
@@ -63,8 +61,6 @@ use crate::mappings::{
 
 ///Initialize and register all of our action handlers
 pub fn init(cx: &mut MutableAppContext) {
-    cx.add_action(deploy_modal);
-
     terminal_view::init(cx);
     terminal_container_view::init(cx);
 }
diff --git a/crates/theme/src/theme.rs b/crates/theme/src/theme.rs
index 259b9a690ceaef18ab2bbc8fc153ed09cada893e..657e3c59150ddedf15cdc704be5ac94d9a342b2d 100644
--- a/crates/theme/src/theme.rs
+++ b/crates/theme/src/theme.rs
@@ -571,6 +571,7 @@ pub struct CodeActions {
 pub struct Interactive<T> {
     pub default: T,
     pub hover: Option<T>,
+    pub clicked: Option<T>,
     pub active: Option<T>,
     pub disabled: Option<T>,
 }
@@ -579,6 +580,8 @@ impl<T> Interactive<T> {
     pub fn style_for(&self, state: MouseState, active: bool) -> &T {
         if active {
             self.active.as_ref().unwrap_or(&self.default)
+        } else if state.clicked == Some(gpui::MouseButton::Left) && self.clicked.is_some() {
+            self.clicked.as_ref().unwrap()
         } else if state.hovered {
             self.hover.as_ref().unwrap_or(&self.default)
         } else {
@@ -601,6 +604,7 @@ impl<'de, T: DeserializeOwned> Deserialize<'de> for Interactive<T> {
             #[serde(flatten)]
             default: Value,
             hover: Option<Value>,
+            clicked: Option<Value>,
             active: Option<Value>,
             disabled: Option<Value>,
         }
@@ -627,6 +631,7 @@ impl<'de, T: DeserializeOwned> Deserialize<'de> for Interactive<T> {
         };
 
         let hover = deserialize_state(json.hover)?;
+        let clicked = deserialize_state(json.clicked)?;
         let active = deserialize_state(json.active)?;
         let disabled = deserialize_state(json.disabled)?;
         let default = serde_json::from_value(json.default).map_err(serde::de::Error::custom)?;
@@ -634,6 +639,7 @@ impl<'de, T: DeserializeOwned> Deserialize<'de> for Interactive<T> {
         Ok(Interactive {
             default,
             hover,
+            clicked,
             active,
             disabled,
         })
diff --git a/crates/workspace/src/dock.rs b/crates/workspace/src/dock.rs
index b0ac47cc90b73d1876472c9b591d2337a1314a7c..a059687193965dda2483d591de775445c0417a66 100644
--- a/crates/workspace/src/dock.rs
+++ b/crates/workspace/src/dock.rs
@@ -17,15 +17,16 @@ pub struct MoveDock(pub DockAnchor);
 #[derive(PartialEq, Clone)]
 pub struct AddDefaultItemToDock;
 
-actions!(workspace, [ToggleDock]);
+actions!(workspace, [ToggleDock, ActivateOrHideDock]);
 impl_internal_actions!(workspace, [MoveDock, AddDefaultItemToDock]);
 
 pub fn init(cx: &mut MutableAppContext) {
     cx.add_action(Dock::toggle);
+    cx.add_action(Dock::activate_or_hide_dock);
     cx.add_action(Dock::move_dock);
 }
 
-#[derive(Copy, Clone)]
+#[derive(Copy, Clone, PartialEq, Eq)]
 pub enum DockPosition {
     Shown(DockAnchor),
     Hidden(DockAnchor),
@@ -72,6 +73,13 @@ impl DockPosition {
             DockPosition::Hidden(_) => self,
         }
     }
+
+    fn show(self) -> Self {
+        match self {
+            DockPosition::Hidden(anchor) => DockPosition::Shown(anchor),
+            DockPosition::Shown(_) => self,
+        }
+    }
 }
 
 pub type DefaultItemFactory =
@@ -88,6 +96,9 @@ impl Dock {
     pub fn new(cx: &mut ViewContext<Workspace>, default_item_factory: DefaultItemFactory) -> Self {
         let anchor = cx.global::<Settings>().default_dock_anchor;
         let pane = cx.add_view(|cx| Pane::new(Some(anchor), cx));
+        pane.update(cx, |pane, cx| {
+            pane.set_active(false, cx);
+        });
         let pane_id = pane.id();
         cx.subscribe(&pane, move |workspace, _, event, cx| {
             workspace.handle_pane_event(pane_id, event, cx);
@@ -119,6 +130,10 @@ impl Dock {
         new_position: DockPosition,
         cx: &mut ViewContext<Workspace>,
     ) {
+        if workspace.dock.position == new_position {
+            return;
+        }
+
         workspace.dock.position = new_position;
         // Tell the pane about the new anchor position
         workspace.dock.pane.update(cx, |pane, cx| {
@@ -139,7 +154,6 @@ impl Dock {
                 let item_to_add = (workspace.dock.default_item_factory)(workspace, cx);
                 Pane::add_item(workspace, &pane, item_to_add, true, true, None, cx);
             }
-            cx.focus(pane);
         } else if let Some(last_active_center_pane) = workspace.last_active_center_pane.clone() {
             cx.focus(last_active_center_pane);
         }
@@ -151,10 +165,40 @@ impl Dock {
         Self::set_dock_position(workspace, workspace.dock.position.hide(), cx);
     }
 
+    pub fn show(workspace: &mut Workspace, cx: &mut ViewContext<Workspace>) {
+        Self::set_dock_position(workspace, workspace.dock.position.show(), cx);
+    }
+
+    pub fn hide_on_sidebar_shown(
+        workspace: &mut Workspace,
+        sidebar_side: SidebarSide,
+        cx: &mut ViewContext<Workspace>,
+    ) {
+        if (sidebar_side == SidebarSide::Right && workspace.dock.is_anchored_at(DockAnchor::Right))
+            || workspace.dock.is_anchored_at(DockAnchor::Expanded)
+        {
+            Self::hide(workspace, cx);
+        }
+    }
+
     fn toggle(workspace: &mut Workspace, _: &ToggleDock, cx: &mut ViewContext<Workspace>) {
         Self::set_dock_position(workspace, workspace.dock.position.toggle(), cx);
     }
 
+    fn activate_or_hide_dock(
+        workspace: &mut Workspace,
+        _: &ActivateOrHideDock,
+        cx: &mut ViewContext<Workspace>,
+    ) {
+        let dock_pane = workspace.dock_pane().clone();
+        if dock_pane.read(cx).is_active() {
+            Self::hide(workspace, cx);
+        } else {
+            Self::show(workspace, cx);
+            cx.focus(dock_pane);
+        }
+    }
+
     fn move_dock(
         workspace: &mut Workspace,
         &MoveDock(new_anchor): &MoveDock,
@@ -178,18 +222,19 @@ impl Dock {
             .map(|anchor| match anchor {
                 DockAnchor::Bottom | DockAnchor::Right => {
                     let mut panel_style = style.panel.clone();
-                    let resize_side = if anchor == DockAnchor::Bottom {
+                    let (resize_side, initial_size) = if anchor == DockAnchor::Bottom {
                         panel_style.margin = Margin {
                             top: panel_style.margin.top,
                             ..Default::default()
                         };
-                        Side::Top
+
+                        (Side::Top, style.initial_size_bottom)
                     } else {
                         panel_style.margin = Margin {
                             left: panel_style.margin.left,
                             ..Default::default()
                         };
-                        Side::Left
+                        (Side::Left, style.initial_size_right)
                     };
 
                     enum DockResizeHandle {}
@@ -200,7 +245,10 @@ impl Dock {
                             resize_side as usize,
                             resize_side,
                             4.,
-                            self.panel_sizes.get(&anchor).copied().unwrap_or(200.),
+                            self.panel_sizes
+                                .get(&anchor)
+                                .copied()
+                                .unwrap_or(initial_size),
                             cx,
                         );
 
@@ -216,18 +264,29 @@ impl Dock {
 
                     resizable.flex(style.flex, false).boxed()
                 }
-                DockAnchor::Expanded => Container::new(
-                    MouseEventHandler::<Dock>::new(0, cx, |_state, _cx| {
-                        Container::new(ChildView::new(self.pane.clone()).boxed())
+                DockAnchor::Expanded => {
+                    enum ExpandedDockWash {}
+                    enum ExpandedDockPane {}
+                    Container::new(
+                        MouseEventHandler::<ExpandedDockWash>::new(0, cx, |_state, cx| {
+                            MouseEventHandler::<ExpandedDockPane>::new(0, cx, |_state, _cx| {
+                                ChildView::new(self.pane.clone()).boxed()
+                            })
+                            .capture_all()
+                            .contained()
                             .with_style(style.maximized)
                             .boxed()
-                    })
-                    .capture_all()
-                    .with_cursor_style(CursorStyle::Arrow)
-                    .boxed(),
-                )
-                .with_background_color(style.wash_color)
-                .boxed(),
+                        })
+                        .capture_all()
+                        .on_down(MouseButton::Left, |_, cx| {
+                            cx.dispatch_action(ToggleDock);
+                        })
+                        .with_cursor_style(CursorStyle::Arrow)
+                        .boxed(),
+                    )
+                    .with_background_color(style.wash_color)
+                    .boxed()
+                }
             })
     }
 }
diff --git a/crates/workspace/src/pane.rs b/crates/workspace/src/pane.rs
index a4937cbd970f46f2bf5ca30f3dc7f803c455312e..3d3fb24726a4183a61bb47909ab42a47ed6c11c8 100644
--- a/crates/workspace/src/pane.rs
+++ b/crates/workspace/src/pane.rs
@@ -279,6 +279,10 @@ impl Pane {
         }
     }
 
+    pub fn is_active(&self) -> bool {
+        self.is_active
+    }
+
     pub fn set_active(&mut self, is_active: bool, cx: &mut ViewContext<Self>) {
         self.is_active = is_active;
         cx.notify();
@@ -1010,9 +1014,9 @@ impl Pane {
                 action.position,
                 AnchorCorner::TopRight,
                 vec![
-                    ContextMenuItem::item("Move Dock Right", MoveDock(DockAnchor::Right)),
-                    ContextMenuItem::item("Move Dock Bottom", MoveDock(DockAnchor::Bottom)),
-                    ContextMenuItem::item("Move Dock Maximized", MoveDock(DockAnchor::Expanded)),
+                    ContextMenuItem::item("Anchor Dock Right", MoveDock(DockAnchor::Right)),
+                    ContextMenuItem::item("Anchor Dock Bottom", MoveDock(DockAnchor::Bottom)),
+                    ContextMenuItem::item("Expand Dock", MoveDock(DockAnchor::Expanded)),
                 ],
                 cx,
             );
@@ -1407,9 +1411,12 @@ impl View for Pane {
                                             )
                                             // Add the close dock button if this pane is a dock
                                             .with_children(self.docked.map(|_| {
-                                                tab_bar_button(3, "icons/x_mark_12.svg", cx, |_| {
-                                                    ToggleDock
-                                                })
+                                                tab_bar_button(
+                                                    3,
+                                                    "icons/x_mark_thin_8.svg",
+                                                    cx,
+                                                    |_| ToggleDock,
+                                                )
                                             }))
                                             .contained()
                                             .with_style(theme.workspace.tab_bar.container)
@@ -1426,7 +1433,7 @@ impl View for Pane {
                                     .flex(1., false)
                                     .named("tab bar")
                             })
-                            .with_child(ChildView::new(&self.toolbar).boxed())
+                            .with_child(ChildView::new(&self.toolbar).expanded().boxed())
                             .with_child(ChildView::new(active_item).flex(1., true).boxed())
                             .boxed()
                     } else {
diff --git a/crates/workspace/src/workspace.rs b/crates/workspace/src/workspace.rs
index 0f3920eae08608276a9f08d21a93551be25213a0..86a61141ad94b5580a9e018c5af884a60ca652e9 100644
--- a/crates/workspace/src/workspace.rs
+++ b/crates/workspace/src/workspace.rs
@@ -957,7 +957,6 @@ impl Workspace {
         .detach();
 
         let center_pane = cx.add_view(|cx| Pane::new(None, cx));
-        dbg!(&center_pane);
         let pane_id = center_pane.id();
         cx.subscribe(&center_pane, move |this, _, event, cx| {
             this.handle_pane_event(pane_id, event, cx)
@@ -993,7 +992,6 @@ impl Workspace {
 
         let dock = Dock::new(cx, dock_default_factory);
         let dock_pane = dock.pane().clone();
-        dbg!(&dock_pane);
 
         let left_sidebar = cx.add_view(|_| Sidebar::new(SidebarSide::Left));
         let right_sidebar = cx.add_view(|_| Sidebar::new(SidebarSide::Right));
@@ -1490,9 +1488,9 @@ impl Workspace {
             sidebar.set_open(open, cx);
             open
         });
-        if open && sidebar_side == SidebarSide::Right && self.dock.is_anchored_at(DockAnchor::Right)
-        {
-            Dock::hide(self, cx);
+
+        if open {
+            Dock::hide_on_sidebar_shown(self, sidebar_side, cx);
         }
 
         cx.focus_self();
@@ -1516,13 +1514,7 @@ impl Workspace {
         });
 
         if let Some(active_item) = active_item {
-            // If there is an active item, that means the sidebar was opened,
-            // which means we need to check if the dock is open and close it
-            if action.sidebar_side == SidebarSide::Right
-                && self.dock.is_anchored_at(DockAnchor::Right)
-            {
-                Dock::hide(self, cx);
-            }
+            Dock::hide_on_sidebar_shown(self, action.sidebar_side, cx);
 
             if active_item.is_focused(cx) {
                 cx.focus_self();
@@ -1551,11 +1543,7 @@ impl Workspace {
             sidebar.active_item().cloned()
         });
         if let Some(active_item) = active_item {
-            // If there is an active item, that means the sidebar was opened,
-            // which means we need to check if the dock is open and close it
-            if sidebar_side == SidebarSide::Right && self.dock.is_anchored_at(DockAnchor::Right) {
-                Dock::hide(self, cx);
-            }
+            Dock::hide_on_sidebar_shown(self, sidebar_side, cx);
 
             if active_item.is_focused(cx) {
                 cx.focus_self();
@@ -1726,8 +1714,13 @@ impl Workspace {
             });
             self.active_item_path_changed(cx);
 
-            if &pane != self.dock.pane() {
+            if &pane == self.dock_pane() {
+                Dock::show(self, cx);
+            } else {
                 self.last_active_center_pane = Some(pane.clone());
+                if self.dock.is_anchored_at(DockAnchor::Expanded) {
+                    Dock::hide(self, cx);
+                }
             }
             cx.notify();
         }
diff --git a/styles/src/styleTree/search.ts b/styles/src/styleTree/search.ts
index 3e9c30d8d9a14b9e2bcbe4e319dc0274a13bd70d..f3555256430ba181312b03333ecb665636416cd1 100644
--- a/styles/src/styleTree/search.ts
+++ b/styles/src/styleTree/search.ts
@@ -46,6 +46,11 @@ export default function search(theme: Theme) {
         background: backgroundColor(theme, "on500", "active"),
         border: border(theme, "muted"),
       },
+      clicked: {
+        ...text(theme, "mono", "active"),
+        background: backgroundColor(theme, "on300", "active"),
+        border: border(theme, "secondary"),
+      },
       hover: {
         ...text(theme, "mono", "active"),
         background: backgroundColor(theme, "on500", "hovered"),
diff --git a/styles/src/styleTree/workspace.ts b/styles/src/styleTree/workspace.ts
index a32334be634b57ceaf555e0bc25df0cbd236d35e..4b279c0360927d85b7bdf7a79bb4b69aaf275232 100644
--- a/styles/src/styleTree/workspace.ts
+++ b/styles/src/styleTree/workspace.ts
@@ -160,8 +160,8 @@ export default function workspace(theme: Theme) {
       margin: { right: 10, bottom: 10 },
     },
     dock: {
-      initialSizeRight: 240,
-      initialSizeBottom: 360,
+      initialSizeRight: 640,
+      initialSizeBottom: 480,
       wash_color: withOpacity(theme.backgroundColor[500].base, 0.5),
       flex: 0.5,
       panel: {