diff --git a/glfw/glfw3.h b/glfw/glfw3.h
index 1976ea8c7..f1a30cbcb 100644
--- a/glfw/glfw3.h
+++ b/glfw/glfw3.h
@@ -1317,6 +1317,8 @@ typedef struct GLFWLayerShellConfig {
     unsigned requested_left_margin;
     unsigned requested_bottom_margin;
     unsigned requested_right_margin;
+    int requested_exclusive_zone;
+    unsigned override_exclusive_zone;
     void (*size_callback)(GLFWwindow *window, const struct GLFWLayerShellConfig *config, unsigned monitor_width, unsigned monitor_height, uint32_t *width, uint32_t *height);
 } GLFWLayerShellConfig;
 
diff --git a/glfw/wl_window.c b/glfw/wl_window.c
index ac32e91a3..210e365a7 100644
--- a/glfw/wl_window.c
+++ b/glfw/wl_window.c
@@ -964,7 +964,7 @@ find_output_by_name(const char* name) {
 static void
 layer_set_properties(_GLFWwindow *window) {
     enum zwlr_layer_surface_v1_anchor which_anchor = ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP | ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM | ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT | ZWLR_LAYER_SURFACE_V1_ANCHOR_RIGHT;
-    int exclusive_zone = -1;
+    int exclusive_zone = window->wl.layer_shell.config.requested_exclusive_zone;
     enum zwlr_layer_surface_v1_keyboard_interactivity focus_policy = ZWLR_LAYER_SURFACE_V1_KEYBOARD_INTERACTIVITY_NONE;
     switch(window->wl.layer_shell.config.focus_policy) {
         case GLFW_FOCUS_NOT_ALLOWED: focus_policy = ZWLR_LAYER_SURFACE_V1_KEYBOARD_INTERACTIVITY_NONE; break;
@@ -973,7 +973,8 @@ layer_set_properties(_GLFWwindow *window) {
     }
     int panel_width = 0, panel_height = 0;
     switch (window->wl.layer_shell.config.type) {
-        case GLFW_LAYER_SHELL_BACKGROUND: break; case GLFW_LAYER_SHELL_NONE: break;
+        case GLFW_LAYER_SHELL_NONE: break;
+        case GLFW_LAYER_SHELL_BACKGROUND: exclusive_zone = -1; break;
         case GLFW_LAYER_SHELL_TOP:
         case GLFW_LAYER_SHELL_OVERLAY:
         case GLFW_LAYER_SHELL_PANEL:
@@ -981,27 +982,27 @@ layer_set_properties(_GLFWwindow *window) {
                 case GLFW_EDGE_TOP:
                     which_anchor = ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP | ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT | ZWLR_LAYER_SURFACE_V1_ANCHOR_RIGHT;
                     panel_height = window->wl.height;
-                    exclusive_zone = window->wl.height;
+                    if (!window->wl.layer_shell.config.override_exclusive_zone) exclusive_zone = window->wl.height;
                     break;
                 case GLFW_EDGE_BOTTOM:
                     which_anchor = ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM | ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT | ZWLR_LAYER_SURFACE_V1_ANCHOR_RIGHT;
                     panel_height = window->wl.height;
-                    exclusive_zone = window->wl.height;
+                    if (!window->wl.layer_shell.config.override_exclusive_zone) exclusive_zone = window->wl.height;
                     break;
                 case GLFW_EDGE_LEFT:
                     which_anchor = ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT | ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP | ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM;
                     panel_width = window->wl.width;
-                    exclusive_zone = window->wl.width;
+                    if (!window->wl.layer_shell.config.override_exclusive_zone) exclusive_zone = window->wl.width;
                     break;
                 case GLFW_EDGE_RIGHT:
                     which_anchor = ZWLR_LAYER_SURFACE_V1_ANCHOR_RIGHT | ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP | ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM;
                     panel_width = window->wl.width;
-                    exclusive_zone = window->wl.width;
+                    if (!window->wl.layer_shell.config.override_exclusive_zone) exclusive_zone = window->wl.width;
                     break;
                 case GLFW_EDGE_NONE:
                     which_anchor = ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT | ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP | ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM; // None is anchored to "top left"
                     panel_width = window->wl.width;
-                    panel_width = window->wl.height;
+                    panel_height = window->wl.height;
                     break;
             }
     }
diff --git a/kittens/panel/main.py b/kittens/panel/main.py
index 33c0743bb..7ff512c64 100644
--- a/kittens/panel/main.py
+++ b/kittens/panel/main.py
@@ -44,24 +44,28 @@ The number of columns shown in the panel. Ignored for background and horizontal
 type=int
 default=0
 Request a given top margin to the compositor.
+Only works on a Wayland compositor that supports the wlr layer shell protocol.
 
 
 --margin-left
 type=int
 default=0
 Request a given left margin to the compositor.
+Only works on a Wayland compositor that supports the wlr layer shell protocol.
 
 
 --margin-bottom
 type=int
 default=0
 Request a given bottom margin to the compositor.
+Only works on a Wayland compositor that supports the wlr layer shell protocol.
 
 
 --margin-right
 type=int
 default=0
 Request a given right margin to the compositor.
+Only works on a Wayland compositor that supports the wlr layer shell protocol.
 
 
 --edge
@@ -72,14 +76,15 @@ Which edge of the screen to place the panel on. Note that some window managers
 The value :code:`background` means make the panel the "desktop wallpaper". This
 is only supported on Wayland, not X11 and note that when using sway if you set
 a background in your sway config it will cover the background drawn using this
-kitten. The value :code:`none` allow free placement of the window
-when combined with explicit margin parameters.
+kitten.
+The value :code:`none` anchors the panel to the top left corner by default
+and the panel should be placed using margins parameters.
 
 
 --layer
 choices=background,bottom,top,overlay
 default=bottom
-On a compositor that supports the wlr layer shell protocol, specifies the layer
+On a Wayland compositor that supports the wlr layer shell protocol, specifies the layer
 on which the panel should be drawn. This parameter is ignored and set to
 :code:`background` if :option:`--edge` is set to :code:`background`.
 
@@ -120,6 +125,22 @@ On a Wayland compositor that supports the wlr layer shell protocol, specify the
 interactivity with the panel. Please refer to the wlr layer shell protocol documentation for more details.
 
 
+--exclusive-zone
+type=int
+default=-1
+On a Wayland compositor that supports the wlr layer shell protocol, request a given exclusive zone for the panel.
+Please refer to the wlr layer shell documentation for more details on the meaning of exclusive and its value.
+If :option:`--edge` is set to anything else than :code:`none`, this flag will not have any effect unless
+the flag :option:`--override-exclusive-zone` is also set.
+If :option:`--edge` is set to :code:`background`, this option has no effect.
+
+
+--override-exclusive-zone
+type=bool-set
+On a Wayland compositor that supports the wlr layer shell protocol, override the default exclusive zone.
+This has effect only if :option:`--edge` is set to :code:`top`, :code:`left`, :code:`bottom` or :code:`right`.
+
+
 --debug-rendering
 type=bool-set
 For internal debugging use.
@@ -218,6 +239,8 @@ def layer_shell_config(opts: PanelCLIOptions) -> LayerShellConfig:
                             requested_bottom_margin=max(0, opts.margin_bottom),
                             requested_right_margin=max(0, opts.margin_right),
                             focus_policy=focus_policy,
+                            requested_exclusive_zone=opts.exclusive_zone,
+                            override_exclusive_zone=opts.override_exclusive_zone,
                             output_name=opts.output_name or '')
 
 
diff --git a/kitty/glfw-wrapper.h b/kitty/glfw-wrapper.h
index 8f97338cd..8b2a0a991 100644
--- a/kitty/glfw-wrapper.h
+++ b/kitty/glfw-wrapper.h
@@ -1055,6 +1055,8 @@ typedef struct GLFWLayerShellConfig {
     unsigned requested_left_margin;
     unsigned requested_bottom_margin;
     unsigned requested_right_margin;
+    int requested_exclusive_zone;
+    unsigned override_exclusive_zone;
     void (*size_callback)(GLFWwindow *window, const struct GLFWLayerShellConfig *config, unsigned monitor_width, unsigned monitor_height, uint32_t *width, uint32_t *height);
 } GLFWLayerShellConfig;
 
diff --git a/kitty/glfw.c b/kitty/glfw.c
index dccaa4934..6882a70ad 100644
--- a/kitty/glfw.c
+++ b/kitty/glfw.c
@@ -1094,6 +1094,8 @@ translate_layer_shell_config(PyObject *p, GLFWLayerShellConfig *ans) {
     A(requested_left_margin, PyLong_Check, PyLong_AsLong);
     A(requested_bottom_margin, PyLong_Check, PyLong_AsLong);
     A(requested_right_margin, PyLong_Check, PyLong_AsLong);
+    A(requested_exclusive_zone, PyLong_Check, PyLong_AsLong);
+    A(override_exclusive_zone, PyBool_Check, PyLong_AsLong);
 #undef A
 #define A(attr) { \
     RAII_PyObject(attr, PyObject_GetAttrString(p, #attr)); if (attr == NULL) return false; \
diff --git a/kitty/types.py b/kitty/types.py
index 4f306c5f6..16f908f8b 100644
--- a/kitty/types.py
+++ b/kitty/types.py
@@ -78,6 +78,8 @@ class LayerShellConfig(NamedTuple):
     requested_left_margin: int = 0
     requested_bottom_margin: int = 0
     requested_right_margin: int = 0
+    requested_exclusive_zone: int = -1
+    override_exclusive_zone: bool = False
 
 
 def mod_to_names(mods: int, has_kitty_mod: bool = False, kitty_mod: int = 0) -> Iterator[str]: