diff --git a/glfw/glfw3.h b/glfw/glfw3.h
index 446032b6e..f68c34cb8 100644
--- a/glfw/glfw3.h
+++ b/glfw/glfw3.h
@@ -1300,7 +1300,7 @@ typedef struct GLFWkeyevent
     bool fake_event_on_focus_change;
 } GLFWkeyevent;
 
-typedef enum { GLFW_LAYER_SHELL_NONE, GLFW_LAYER_SHELL_BACKGROUND, GLFW_LAYER_SHELL_PANEL } GLFWLayerShellType;
+typedef enum { GLFW_LAYER_SHELL_NONE, GLFW_LAYER_SHELL_BACKGROUND, GLFW_LAYER_SHELL_PANEL, GLFW_LAYER_SHELL_TOP, GLFW_LAYER_SHELL_OVERLAY } GLFWLayerShellType;
 
 typedef enum { GLFW_EDGE_TOP, GLFW_EDGE_BOTTOM, GLFW_EDGE_LEFT, GLFW_EDGE_RIGHT } GLFWEdge;
 
diff --git a/glfw/wl_window.c b/glfw/wl_window.c
index c791a42f6..7910f3295 100644
--- a/glfw/wl_window.c
+++ b/glfw/wl_window.c
@@ -974,6 +974,8 @@ 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_TOP:
+        case GLFW_LAYER_SHELL_OVERLAY:
         case GLFW_LAYER_SHELL_PANEL:
             switch (window->wl.layer_shell.config.edge) {
                 case GLFW_EDGE_TOP:
@@ -1057,8 +1059,13 @@ create_layer_shell_surface(_GLFWwindow *window) {
     }
     window->decorated = false;  // shell windows must not have decorations
     struct wl_output *wl_output = find_output_by_name(window->wl.layer_shell.config.output_name);
-    enum zwlr_layer_shell_v1_layer which_layer = ZWLR_LAYER_SHELL_V1_LAYER_BACKGROUND;
-    if (window->wl.layer_shell.config.type == GLFW_LAYER_SHELL_PANEL) which_layer = ZWLR_LAYER_SHELL_V1_LAYER_BOTTOM;
+    enum zwlr_layer_shell_v1_layer which_layer = ZWLR_LAYER_SHELL_V1_LAYER_BACKGROUND; // Default to background
+    switch (window->wl.layer_shell.config.type) {
+        case GLFW_LAYER_SHELL_BACKGROUND: break; case GLFW_LAYER_SHELL_NONE: break;
+        case GLFW_LAYER_SHELL_PANEL: which_layer = ZWLR_LAYER_SHELL_V1_LAYER_BOTTOM; break;
+        case GLFW_LAYER_SHELL_TOP: which_layer = ZWLR_LAYER_SHELL_V1_LAYER_TOP; break;
+        case GLFW_LAYER_SHELL_OVERLAY: which_layer = ZWLR_LAYER_SHELL_V1_LAYER_OVERLAY; break;
+    }
 #define ls window->wl.layer_shell.zwlr_layer_surface_v1
     ls = zwlr_layer_shell_v1_get_layer_surface(
             _glfw.wl.zwlr_layer_shell_v1, window->wl.surface, wl_output, which_layer, "kitty");
diff --git a/kittens/panel/main.py b/kittens/panel/main.py
index ee64126cb..f2a0b62af 100644
--- a/kittens/panel/main.py
+++ b/kittens/panel/main.py
@@ -14,6 +14,8 @@ from kitty.fast_data_types import (
     GLFW_EDGE_TOP,
     GLFW_LAYER_SHELL_BACKGROUND,
     GLFW_LAYER_SHELL_PANEL,
+    GLFW_LAYER_SHELL_TOP,
+    GLFW_LAYER_SHELL_OVERLAY,
     glfw_primary_monitor_size,
     make_x11_window_a_dock_window,
 )
@@ -39,6 +41,14 @@ a background in your sway config it will cover the background drawn using this
 kitten.
 
 
+--layer
+choices=background, bottom, top, overlay
+default=bottom
+On a 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 --edge is set to :code:`background`.
+
+
 --config -c
 type=list
 Path to config file to use for kitty when drawing the panel.
@@ -150,7 +160,11 @@ def initial_window_size_func(opts: WindowSizeData, cached_values: Dict[str, Any]
 
 
 def layer_shell_config(opts: PanelCLIOptions) -> LayerShellConfig:
-    ltype = GLFW_LAYER_SHELL_BACKGROUND if opts.edge == 'background' else GLFW_LAYER_SHELL_PANEL
+    ltype = {'background': GLFW_LAYER_SHELL_BACKGROUND,
+             'bottom': GLFW_LAYER_SHELL_PANEL,
+             'top': GLFW_LAYER_SHELL_TOP,
+             'overlay': GLFW_LAYER_SHELL_OVERLAY}.get(opts.layer, GLFW_LAYER_SHELL_PANEL)
+    ltype = GLFW_LAYER_SHELL_BACKGROUND if opts.edge == 'background' else ltype
     edge = {'top': GLFW_EDGE_TOP, 'bottom': GLFW_EDGE_BOTTOM, 'left': GLFW_EDGE_LEFT, 'right': GLFW_EDGE_RIGHT}.get(opts.edge, GLFW_EDGE_TOP)
     return LayerShellConfig(type=ltype, edge=edge, size_in_cells=max(1, opts.lines), output_name=opts.output_name or '')
 
diff --git a/kitty/fast_data_types.pyi b/kitty/fast_data_types.pyi
index acb4cb126..d41313f34 100644
--- a/kitty/fast_data_types.pyi
+++ b/kitty/fast_data_types.pyi
@@ -14,6 +14,8 @@ from kitty.typing import EdgeLiteral, NotRequired, ReadableBuffer, WriteableBuff
 # Constants {{{
 GLFW_LAYER_SHELL_NONE: int
 GLFW_LAYER_SHELL_PANEL: int
+GLFW_LAYER_SHELL_TOP: int
+GLFW_LAYER_SHELL_OVERLAY: int
 GLFW_LAYER_SHELL_BACKGROUND: int
 GLFW_EDGE_TOP: int
 GLFW_EDGE_BOTTOM: int
diff --git a/kitty/glfw-wrapper.h b/kitty/glfw-wrapper.h
index dfc38b6a8..67f6ef698 100644
--- a/kitty/glfw-wrapper.h
+++ b/kitty/glfw-wrapper.h
@@ -1038,7 +1038,7 @@ typedef struct GLFWkeyevent
     bool fake_event_on_focus_change;
 } GLFWkeyevent;
 
-typedef enum { GLFW_LAYER_SHELL_NONE, GLFW_LAYER_SHELL_BACKGROUND, GLFW_LAYER_SHELL_PANEL } GLFWLayerShellType;
+typedef enum { GLFW_LAYER_SHELL_NONE, GLFW_LAYER_SHELL_BACKGROUND, GLFW_LAYER_SHELL_PANEL, GLFW_LAYER_SHELL_TOP, GLFW_LAYER_SHELL_OVERLAY } GLFWLayerShellType;
 
 typedef enum { GLFW_EDGE_TOP, GLFW_EDGE_BOTTOM, GLFW_EDGE_LEFT, GLFW_EDGE_RIGHT } GLFWEdge;
 
diff --git a/kitty/glfw.c b/kitty/glfw.c
index 01911e630..2a5edc591 100644
--- a/kitty/glfw.c
+++ b/kitty/glfw.c
@@ -2351,7 +2351,7 @@ init_glfw(PyObject *m) {
     ADDC(GLFW_REPEAT);
     ADDC(true); ADDC(false);
     ADDC(GLFW_PRIMARY_SELECTION); ADDC(GLFW_CLIPBOARD);
-    ADDC(GLFW_LAYER_SHELL_NONE); ADDC(GLFW_LAYER_SHELL_PANEL); ADDC(GLFW_LAYER_SHELL_BACKGROUND);
+    ADDC(GLFW_LAYER_SHELL_NONE); ADDC(GLFW_LAYER_SHELL_PANEL); ADDC(GLFW_LAYER_SHELL_BACKGROUND); ADDC(GLFW_LAYER_SHELL_TOP); ADDC(GLFW_LAYER_SHELL_OVERLAY);
     ADDC(GLFW_FOCUS_NOT_ALLOWED); ADDC(GLFW_FOCUS_EXCLUSIVE); ADDC(GLFW_FOCUS_ON_DEMAND);
     ADDC(GLFW_EDGE_TOP); ADDC(GLFW_EDGE_BOTTOM); ADDC(GLFW_EDGE_LEFT); ADDC(GLFW_EDGE_RIGHT);
     ADDC(GLFW_COLOR_SCHEME_NO_PREFERENCE); ADDC(GLFW_COLOR_SCHEME_DARK); ADDC(GLFW_COLOR_SCHEME_LIGHT);