diff --git a/Modules/Bar/Extras/BarExclusionZone.qml b/Modules/Bar/Extras/BarExclusionZone.qml
index f5333b43d..1e7a9a01d 100644
--- a/Modules/Bar/Extras/BarExclusionZone.qml
+++ b/Modules/Bar/Extras/BarExclusionZone.qml
@@ -25,7 +25,6 @@ PanelWindow {
   mask: Region {}
 
   // Wayland layer shell configuration
-  WlrLayershell.layer: WlrLayer.Top
   WlrLayershell.namespace: "noctalia-bar-exclusion-" + (screen?.name || "unknown")
   WlrLayershell.exclusionMode: ExclusionMode.Auto
 
diff --git a/Modules/Cards/WeatherCard.qml b/Modules/Cards/WeatherCard.qml
index 5a853bd8c..592548f3a 100644
--- a/Modules/Cards/WeatherCard.qml
+++ b/Modules/Cards/WeatherCard.qml
@@ -61,7 +61,7 @@ NBox {
         }
 
         // Limit update rate to avoid using too much processing power
-        property real time: parent.shaderTime - (parent.shaderTime % (1 / ( root.isRaining ? 3 : root.isSnowing ? 6 : 2)))
+        property real time: parent.shaderTime - (parent.shaderTime % (1 / (root.isRaining ? 3 : root.isSnowing ? 6 : 2)))
         property real itemWidth: weatherEffect.width
         property real itemHeight: weatherEffect.height
         property color bgColor: root.color
diff --git a/Modules/Dock/Dock.qml b/Modules/Dock/Dock.qml
index 62502b32c..303b2457f 100644
--- a/Modules/Dock/Dock.qml
+++ b/Modules/Dock/Dock.qml
@@ -774,7 +774,6 @@ Loader {
           margins.left: peekCenterOffsetX
 
           WlrLayershell.namespace: "noctalia-dock-indicator-" + (screen?.name || "unknown")
-          WlrLayershell.layer: WlrLayer.Top
           WlrLayershell.exclusionMode: ExclusionMode.Ignore
           WlrLayershell.keyboardFocus: WlrKeyboardFocus.None
           implicitHeight: isVertical ? peekEdgeLength : indicatorThickness
diff --git a/Modules/MainScreen/BarContentWindow.qml b/Modules/MainScreen/BarContentWindow.qml
index 562cb1895..3e5da24b2 100644
--- a/Modules/MainScreen/BarContentWindow.qml
+++ b/Modules/MainScreen/BarContentWindow.qml
@@ -33,7 +33,6 @@ PanelWindow {
 
   // Wayland layer configuration
   WlrLayershell.namespace: "noctalia-bar-content-" + (barWindow.screen?.name || "unknown")
-  WlrLayershell.layer: WlrLayer.Top
   WlrLayershell.exclusionMode: ExclusionMode.Ignore // Don't reserve space - BarExclusionZone in MainScreen handles that
 
   // Position and size to match bar location (per-screen)
diff --git a/Modules/MainScreen/BarExclusionZone.qml b/Modules/MainScreen/BarExclusionZone.qml
index e9696e62e..db97fd8af 100644
--- a/Modules/MainScreen/BarExclusionZone.qml
+++ b/Modules/MainScreen/BarExclusionZone.qml
@@ -37,7 +37,6 @@ PanelWindow {
   mask: Region {}
 
   // Wayland layer shell configuration
-  WlrLayershell.layer: WlrLayer.Top
   WlrLayershell.namespace: "noctalia-bar-exclusion-" + edge + "-" + (screen?.name || "unknown")
   // When auto-hide, non-exclusive mode is enabled, OR bar is explicitly hidden via IPC, don't reserve space
   // Note: We check BarService.isVisible directly, NOT effectivelyVisible, because we want
diff --git a/Modules/MainScreen/BarTriggerZone.qml b/Modules/MainScreen/BarTriggerZone.qml
index b7a9cd58b..ae0538e20 100644
--- a/Modules/MainScreen/BarTriggerZone.qml
+++ b/Modules/MainScreen/BarTriggerZone.qml
@@ -26,7 +26,6 @@ PanelWindow {
   focusable: false
 
   WlrLayershell.namespace: "noctalia-bar-trigger-" + (screen?.name || "unknown")
-  WlrLayershell.layer: WlrLayer.Top
   WlrLayershell.exclusionMode: ExclusionMode.Ignore
 
   // Anchor to bar's edge
diff --git a/Modules/MainScreen/MainScreen.qml b/Modules/MainScreen/MainScreen.qml
index f51ad1157..c7c6f9e81 100644
--- a/Modules/MainScreen/MainScreen.qml
+++ b/Modules/MainScreen/MainScreen.qml
@@ -44,7 +44,6 @@ PanelWindow {
   }
 
   // Wayland
-  WlrLayershell.layer: WlrLayer.Top
   WlrLayershell.namespace: "noctalia-background-" + (screen?.name || "unknown")
   WlrLayershell.exclusionMode: ExclusionMode.Ignore // Don't reserve space - BarExclusionZone handles that
   WlrLayershell.keyboardFocus: {
@@ -68,18 +67,37 @@ PanelWindow {
   }
 
   anchors {
-    top: true
-    bottom: true
-    left: true
-    right: true
+    top: isFramed || _needsFullscreen || _barPosition !== "bottom"
+    bottom: isFramed || _needsFullscreen || _barPosition !== "top"
+    left: isFramed || _needsFullscreen || _barPosition !== "right"
+    right: isFramed || _needsFullscreen || _barPosition !== "left"
   }
 
+  // Implicit sizes control the non-anchored dimension when collapsed (3 anchors).
+  // Layout: [margin] [bar] [max(margin, shadow)] — screen-edge side uses margin, inner side uses whichever is larger.
+  // When fullscreen (4 anchors), compositor ignores these.
+  implicitWidth: Math.ceil(barPlaceholder.barMarginH + barPlaceholder.barHeight + _innerPaddingH)
+  implicitHeight: Math.ceil(barPlaceholder.barMarginV + barPlaceholder.barHeight + _innerPaddingV)
+
   // Desktop dimming when panels are open
   property real dimmerOpacity: Settings.data.general.dimmerOpacity ?? 0.8
   property bool isPanelOpen: (PanelService.openedPanel !== null) && (PanelService.openedPanel.screen === screen)
   property bool isPanelClosing: (PanelService.openedPanel !== null) && PanelService.openedPanel.isClosing
   property bool isAnyPanelOpen: PanelService.openedPanel !== null
 
+  // Dynamic fullscreen management — collapse to bar-sized when idle to avoid fullscreen compositor damage
+  readonly property bool isFramed: Settings.data.bar.barType === "framed"
+  readonly property string _barPosition: Settings.getBarPositionForScreen(screen?.name)
+  readonly property bool _barIsVertical: _barPosition === "left" || _barPosition === "right"
+  property bool _needsFullscreen: isAnyPanelOpen || PanelService.closingPanel !== null || _dimmerAnimating
+  property bool _dimmerAnimating: false
+
+  // Shadow padding for collapsed window — shadow extends beyond bar into the screen
+  readonly property real _shadowPadding: (Settings.data.general.enableShadows && !PowerProfileService.noctaliaPerformanceMode) ? Style.shadowBlurMax + Math.max(Math.abs(Style.shadowHorizontalOffset), Math.abs(Style.shadowVerticalOffset)) : 0
+  // Inner padding: the side facing into the screen needs at least shadow clearance
+  readonly property real _innerPaddingH: Math.max(barPlaceholder.barMarginH, _shadowPadding)
+  readonly property real _innerPaddingV: Math.max(barPlaceholder.barMarginV, _shadowPadding)
+
   color: {
     if (dimmerOpacity > 0 && isPanelOpen && !isPanelClosing) {
       return Qt.alpha(Color.mShadow, dimmerOpacity);
@@ -92,6 +110,7 @@ PanelWindow {
     ColorAnimation {
       duration: isPanelClosing ? Style.animationFaster : Style.animationNormal
       easing.type: Easing.OutQuad
+      onRunningChanged: root._dimmerAnimating = running
     }
   }
 
@@ -461,6 +480,11 @@ PanelWindow {
       // Expose bar dimensions directly on this Item for BarBackground
       // Use screen dimensions directly
       x: {
+        if (!root._needsFullscreen && !root.isFramed) {
+          // Collapsed: bar is at margin from screen edge, shadow extends inward.
+          // For right bar the window faces left (inner side first), so bar starts after shadow clearance.
+          return barPosition === "right" ? root._innerPaddingH : barMarginH;
+        }
         if (barPosition === "right")
           return (screen?.width ?? 0) - barHeight - barMarginH;
         if (isFramed && !barIsVertical)
@@ -468,6 +492,9 @@ PanelWindow {
         return barMarginH;
       }
       y: {
+        if (!root._needsFullscreen && !root.isFramed) {
+          return barPosition === "bottom" ? root._innerPaddingV : barMarginV;
+        }
         if (barPosition === "bottom")
           return (screen?.height ?? 0) - barHeight - barMarginV;
         if (isFramed && barIsVertical)
diff --git a/Modules/MainScreen/SmartPanel.qml b/Modules/MainScreen/SmartPanel.qml
index aff4af32b..863be1c70 100644
--- a/Modules/MainScreen/SmartPanel.qml
+++ b/Modules/MainScreen/SmartPanel.qml
@@ -145,8 +145,10 @@ Item {
 
   // Panel visibility and sizing
   visible: isPanelVisible
-  width: parent ? parent.width : 0
-  height: parent ? parent.height : 0
+  // Always use screen dimensions for layout — MainScreen may be collapsed to bar-sized when idle,
+  // but panels must compute positions and sizes against the full screen.
+  width: screen?.width ?? (parent ? parent.width : 0)
+  height: screen?.height ?? (parent ? parent.height : 0)
 
   // Panel control functions
   function toggle(buttonItem, buttonName) {
@@ -290,6 +292,11 @@ Item {
     PanelService.closedPanel(root);
     closed();
 
+    // Flush pending double-buffered Wayland state (blur regions) that won't
+    // be committed otherwise — after an app launch the compositor may stop
+    // sending frame callbacks, leaving the render loop idle.
+    Window.window?.flushWaylandState();
+
     Logger.d("SmartPanel", "Panel closed immediately", objectName);
   }
 
@@ -316,6 +323,9 @@ Item {
     PanelService.closedPanel(root);
     closed();
 
+    // Flush pending double-buffered Wayland state (blur regions).
+    Window.window?.flushWaylandState();
+
     Logger.d("SmartPanel", "Panel close finalized", objectName);
   }