diff --git a/Cargo.lock b/Cargo.lock
index e55969e6f..6ebd53b78 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1121,13 +1121,14 @@ dependencies = [
 [[package]]
 name = "craft-update"
 version = "0.1.0"
-source = "git+https://github.com/storytold/craft-libs?rev=92d392cff132eaf53e13afff77f38b5c11b73aa0#92d392cff132eaf53e13afff77f38b5c11b73aa0"
+source = "git+https://github.com/storytold/craft-libs?rev=1065653e75854e9c17e1ff563acdd344c1b185f0#1065653e75854e9c17e1ff563acdd344c1b185f0"
 dependencies = [
  "chrono",
  "dunce",
  "egui",
  "flate2",
  "getrandom 0.3.4",
+ "image",
  "log",
  "plist",
  "semver",
@@ -4293,7 +4294,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "7d8fae84b431384b68627d0f9b3b1245fcf9f46f6c0e3dc902e9dce64edd1967"
 dependencies = [
  "libc",
- "windows-sys 0.61.2",
+ "windows-sys 0.45.0",
 ]
 
 [[package]]
diff --git a/Cargo.toml b/Cargo.toml
index 24791c08d..772f62ee4 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -14,7 +14,8 @@ repository = "https://github.com/storytold/effectcraft"
 craft-pdf = { git = "https://github.com/storytold/craft-libs", rev = "92d392cff132eaf53e13afff77f38b5c11b73aa0", version = "=0.1.0", default-features = false, features = ["read"] }
 craft-docpath = { version = "0.1.0", git = "https://github.com/storytold/craft-libs", rev = "92d392cff132eaf53e13afff77f38b5c11b73aa0" }
 craft-quit = { version = "0.1.0", git = "https://github.com/storytold/craft-libs", rev = "92d392cff132eaf53e13afff77f38b5c11b73aa0" }
-craft-update = { git = "https://github.com/storytold/craft-libs", version = "=0.1.0", rev = "92d392cff132eaf53e13afff77f38b5c11b73aa0", features = ["egui"] }
+# craft-update with storytold/craft-libs#434: the update prompt shows the app's icon, accent and developer.
+craft-update = { git = "https://github.com/storytold/craft-libs", version = "=0.1.0", rev = "1065653e75854e9c17e1ff563acdd344c1b185f0", features = ["egui"] }
 # internal
 effectcraft-time = { path = "crates/time" }
 effectcraft-geom = { path = "crates/geom" }
diff --git a/crates/engine/src/settings/prefs.rs b/crates/engine/src/settings/prefs.rs
index d2db7cd55..94c90c3a3 100644
--- a/crates/engine/src/settings/prefs.rs
+++ b/crates/engine/src/settings/prefs.rs
@@ -36,7 +36,7 @@ pub use sections::{
 use sections::{Extra, default_labels, lenient_comp_presets};
 
 /// Current settings layout version.
-pub const PREFS_VERSION: u32 = 3;
+pub const PREFS_VERSION: u32 = 4;
 /// Settings file name in the config store.
 pub const PREFS_FILE: &str = "prefs.json";
 
diff --git a/crates/engine/src/settings/prefs/document.rs b/crates/engine/src/settings/prefs/document.rs
index d82205352..1f68c4a06 100644
--- a/crates/engine/src/settings/prefs/document.rs
+++ b/crates/engine/src/settings/prefs/document.rs
@@ -9,6 +9,8 @@ use super::{Appearance, General, Map, PREFS_VERSION, Prefs, Startup, Value, json
 ///   `autoSaveMinutes`, `autoSaveVersions`, `labelNames` (array) and `theme` at the top level.
 /// - version 2 defaulted the disk cache to 100 GB, more than most laptops have free; the stored
 ///   old default becomes the new one (a size the user chose is kept).
+/// - version 3 and earlier could still hold `createSplitLayersAbove: false`, the default before
+///   #2083 (every save kept it); it becomes After Effects' default, above (#2545).
 pub fn migrate(mut v: Value) -> Value {
     let Some(obj) = v.as_object_mut() else { return json!({}) };
     let version = obj.get("version").and_then(Value::as_u64).unwrap_or(0);
@@ -42,6 +44,12 @@ pub fn migrate(mut v: Value) -> Value {
     {
         d.insert("diskCacheMaxGb".into(), json!(20));
     }
+    if version < 4
+        && let Some(g) = obj.get_mut("general").and_then(Value::as_object_mut)
+        && g.get("createSplitLayersAbove") == Some(&json!(false))
+    {
+        g.insert("createSplitLayersAbove".into(), json!(true));
+    }
     // Settings saved before appearance modes had one theme: keep showing it, as a fixed Dark or
     // Light mode, instead of switching established users to Auto.
     if let Some(a) = obj.get_mut("appearance").and_then(Value::as_object_mut)
diff --git a/crates/engine/src/tests/settings.rs b/crates/engine/src/tests/settings.rs
index f2fd5a3b7..79e9fa727 100644
--- a/crates/engine/src/tests/settings.rs
+++ b/crates/engine/src/tests/settings.rs
@@ -79,6 +79,15 @@ fn prefs_migrate_old_disk_cache_default() {
     assert_eq!(Prefs::from_json(r#"{"version": 3, "disk": {"diskCacheMaxGb": 100}}"#).disk.disk_cache_max_gb, 100);
 }
 
+#[test]
+fn prefs_migrate_old_split_layers_default() {
+    // Settings saved before #2083 kept "below"; they move to After Effects' "above" once (#2545).
+    let above = |doc: &str| Prefs::from_json(doc).general.create_split_layers_above;
+    assert!(above(r#"{"version": 3, "general": {"createSplitLayersAbove": false}}"#));
+    assert!(above(r#"{"version": 2, "general": {"createSplitLayersAbove": false}}"#));
+    assert!(!above(r#"{"version": 4, "general": {"createSplitLayersAbove": false}}"#), "a choice made since stays");
+}
+
 #[test]
 fn prefs_set_validates_keys_types_and_ranges() {
     let mut p = Prefs::default();
diff --git a/crates/gpu/src/tests.rs b/crates/gpu/src/tests.rs
index c57c1ef84..44e8922a6 100644
--- a/crates/gpu/src/tests.rs
+++ b/crates/gpu/src/tests.rs
@@ -510,6 +510,12 @@ fn layer_styles_collapsed_precomps_and_cpu_fallbacks() {
         adj.switches.adjustment = true;
         s.effect(&mut adj, "ec.channel.invert", &[]);
         s.push(adj);
+        // An adjustment layer in another blend mode blends the adjusted comp in that mode (#2618).
+        let mut adj = s.solid([1.0, 1.0, 1.0], 70, 40);
+        adj.switches.adjustment = true;
+        adj.blend_mode = BlendMode::Screen;
+        set(&mut adj, "transform/opacity", Value::Scalar(60.0));
+        s.push(adj);
         check(&format!("collapse + adjustment {depth:?}"), compare_at(&s, opts(), Tick::ZERO), 0.0);
     }
 }
diff --git a/crates/gpu/src/walk.rs b/crates/gpu/src/walk.rs
index d4d7a62a1..fdcb58dd4 100644
--- a/crates/gpu/src/walk.rs
+++ b/crates/gpu/src/walk.rs
@@ -352,8 +352,8 @@ fn draw_precomp(e: &mut Enc, r: &Renderer, ctx: &EvalCtx, layer: &Layer, canvas:
 
 /// Adjustment layer (`Renderer::draw_adjustment`): the effect stack runs on the comp below,
 /// resident on the GPU (non-GPU effects read back, run on the CPU and upload), and the result
-/// replaces the canvas inside the layer's footprint × track matte × opacity. `None` = draw it
-/// on the CPU.
+/// replaces the canvas inside the layer's footprint × track matte × opacity, or blends onto it in
+/// the layer's blend mode when that isn't Normal. `None` = draw it on the CPU.
 fn draw_adjustment(e: &mut Enc, r: &Renderer, ctx: &EvalCtx, layer: &Layer, canvas: &mut GpuImage) -> Option<()> {
     let opacity = r.layer_opacity(ctx, layer);
     let Some(foot) = r.adjustment_footprint(ctx, layer) else { return Some(()) };
@@ -379,7 +379,13 @@ fn draw_adjustment(e: &mut Enc, r: &Renderer, ctx: &EvalCtx, layer: &Layer, canv
     if let Some(c) = pipe.to_blend() {
         adjusted = ops::convert(e, &adjusted, &c);
     }
-    *canvas = ops::adjust_mix(e, canvas, &adjusted, &matte, opacity);
+    *canvas = if layer.blend_mode == BlendMode::Normal {
+        ops::adjust_mix(e, canvas, &adjusted, &matte, opacity)
+    } else {
+        // The adjusted comp is a layer in that mode over the comp below (#2618).
+        let iso = ops::matte(e, &adjusted, &matte, effectcraft_project::MatteKind::Alpha);
+        ops::blend_full(e, canvas, &iso, layer.blend_mode, opacity, layer.id.0 as u32, None)
+    };
     Some(())
 }
 
diff --git a/crates/render/src/layers.rs b/crates/render/src/layers.rs
index ce0a2dcde..d105c6f13 100644
--- a/crates/render/src/layers.rs
+++ b/crates/render/src/layers.rs
@@ -522,7 +522,7 @@ impl<'a> Renderer<'a> {
     }
 
     /// Adjustment layer: effects applied to the comp below, limited to the layer's footprint
-    /// and its track matte.
+    /// and its track matte, and blended back in the layer's blend mode.
     fn draw_adjustment(&self, ctx: &EvalCtx, layer: &Layer, canvas: &mut Image, opacity: f32) {
         let Some(mut foot) = self.source(ctx, layer) else { return };
         let _ = masks::apply(ctx, layer, &mut foot, self.mask_blur(ctx, layer));
@@ -548,6 +548,18 @@ impl<'a> Renderer<'a> {
         if adjusted.img.width != canvas.width || adjusted.img.height != canvas.height {
             return;
         }
+        if layer.blend_mode != BlendMode::Normal {
+            // The adjusted comp is a layer in that mode over the comp below, as in After Effects:
+            // an adjustment layer with no effects in Screen screens the comp with itself (#2618).
+            let mut iso = adjusted.img;
+            iso.data.par_iter_mut().zip(matte.data.par_iter()).for_each(|(p, m)| {
+                for c in p.iter_mut() {
+                    *c *= m[3];
+                }
+            });
+            canvas.blend_from(&iso, layer.blend_mode, opacity, layer.id.0 as u32);
+            return;
+        }
         canvas.data.par_iter_mut().zip(adjusted.img.data.par_iter()).zip(matte.data.par_iter()).for_each(|((c, a), m)| {
             let k = m[3] * opacity;
             for i in 0..4 {
diff --git a/crates/render/src/tests.rs b/crates/render/src/tests.rs
index 488f38ec7..3d2134e89 100644
--- a/crates/render/src/tests.rs
+++ b/crates/render/src/tests.rs
@@ -206,6 +206,32 @@ fn track_matte_limits_an_adjustment_layer() {
     }
 }
 
+/// An adjustment layer's blend mode blends the adjusted comp onto the comp below, inside its
+/// footprint: with no effects, Screen screens a 0.25 grey with itself, Multiply darkens it,
+/// Normal leaves it, and Opacity mixes toward the result (#2618).
+#[test]
+fn adjustment_layer_blends_in_its_mode() {
+    for (mode, opacity, want) in
+        [(BlendMode::Normal, 100.0, 0.25), (BlendMode::Screen, 100.0, 0.4375), (BlendMode::Multiply, 100.0, 0.0625), (BlendMode::Screen, 50.0, 0.34375)]
+    {
+        let (mut p, cid, comp) = setup();
+        let mut adj = solid(&mut p, &comp, [1.0, 1.0, 1.0], 100, 100);
+        adj.props.prop_mut("transform/position").unwrap().value = Value::Vec3([50.0, 50.0, 0.0]);
+        adj.props.prop_mut("transform/opacity").unwrap().value = Value::Scalar(opacity);
+        adj.switches.adjustment = true;
+        adj.blend_mode = mode;
+        let bg = solid(&mut p, &comp, [0.25, 0.25, 0.25], 200, 100);
+        let c = p.comp_mut(cid).unwrap();
+        c.layers.push(adj);
+        c.layers.push(bg);
+        let img = render_frame(&p, cid, Tick::ZERO, 1.0);
+        let (inside, outside) = (img.get(50, 50), img.get(150, 50));
+        assert!((inside[0] - want).abs() < 1e-4, "{mode:?} {opacity}: {inside:?}");
+        assert!((outside[0] - 0.25).abs() < 1e-4, "{mode:?} {opacity}: outside the footprint {outside:?}");
+        assert_eq!(inside[3], 1.0, "{mode:?} keeps the comp opaque");
+    }
+}
+
 #[test]
 fn shape_layer_draws_fill_and_stroke() {
     let (mut p, cid, comp) = setup();
diff --git a/crates/ui-egui/src/i18n/ui.rs b/crates/ui-egui/src/i18n/ui.rs
index 245593143..ed4378271 100644
--- a/crates/ui-egui/src/i18n/ui.rs
+++ b/crates/ui-egui/src/i18n/ui.rs
@@ -912,9 +912,45 @@ const JAPANESE: &[(&str, &str)] = &[
         "トラッカーパネルのフェイストラッキング（輪郭のみと詳細機能）はここで選んだモデルを使用します。モデルはオープンソースで、要求したときだけダウンロードされ、公開されているSHA-256と照合されます。",
     ),
     ("Match System", "システムに合わせる"),
+    ("Default", "デフォルト"),
+    ("Stored, but not used by EffectCraft yet", "保存されますが、EffectCraftではまだ使用されません"),
     ("Total Offset", "合計オフセット"),
     ("Per Layer", "レイヤーごと"),
     ("Track", "トラック"),
+    ("Selection Tool", "選択ツール"),
+    ("Hand Tool", "手のひらツール"),
+    ("Zoom Tool", "ズームツール"),
+    ("Orbit Around Cursor Tool", "カーソルのまわりを周回ツール"),
+    ("Pan Under Cursor Tool", "カーソルの下でパンツール"),
+    ("Dolly Towards Cursor Tool", "カーソルに向かってドリーツール"),
+    ("Rotation Tool", "回転ツール"),
+    ("Pan Behind (Anchor Point) Tool", "アンカーポイントツール"),
+    ("Rectangle Tool", "長方形ツール"),
+    ("Rounded Rectangle Tool", "角丸長方形ツール"),
+    ("Ellipse Tool", "楕円形ツール"),
+    ("Polygon Tool", "多角形ツール"),
+    ("Star Tool", "スターツール"),
+    ("Pen Tool", "ペンツール"),
+    ("Add Vertex Tool", "頂点を追加ツール"),
+    ("Delete Vertex Tool", "頂点を削除ツール"),
+    ("Convert Vertex Tool", "頂点を切り替えツール"),
+    ("Mask Feather Tool", "マスクの境界のぼかしツール"),
+    ("Horizontal Type Tool", "横書き文字ツール"),
+    ("Vertical Type Tool", "縦書き文字ツール"),
+    ("Brush Tool", "ブラシツール"),
+    ("Clone Stamp Tool", "コピースタンプツール"),
+    ("Eraser Tool", "消しゴムツール"),
+    ("Roto Brush Tool", "ロトブラシツール"),
+    ("Refine Edge Tool", "エッジを調整ツール"),
+    ("Object Matte Tool", "オブジェクトマットツール"),
+    ("Puppet Position Pin Tool", "パペット位置ピンツール"),
+    ("Puppet Starch Pin Tool", "パペットスターチピンツール"),
+    ("Puppet Bend Pin Tool", "パペットベンドピンツール"),
+    ("Puppet Advanced Pin Tool", "パペット詳細ピンツール"),
+    ("Puppet Overlap Pin Tool", "パペット重なりピンツール"),
+    ("Shortcut", "ショートカット"),
+    ("Range", "範囲"),
+    ("Play From", "再生開始位置"),
     ("Force alphabetical order", "アルファベット順を強制"),
     ("Frame rate (fps)", "フレームレート (fps)"),
     ("Import Kind", "読み込みの種類"),
@@ -1065,6 +1101,14 @@ const JAPANESE: &[(&str, &str)] = &[
     ("VR Comp Editor", "VRコンポジションエディター"),
     ("Media Duration", "メディアの長さ"),
     ("Frame Rate", "フレームレート"),
+    ("Resolution", "解像度"),
+    ("Overlays", "オーバーレイ"),
+    ("Layer Controls", "レイヤーコントロール"),
+    ("Loop", "ループ"),
+    ("Cache Before Playback", "再生前にキャッシュ"),
+    ("Pre-roll", "プリロール"),
+    ("Post-roll", "ポストロール"),
+    ("If caching, play cached frames", "キャッシュ中はキャッシュ済みフレームを再生"),
     ("File Path", "ファイルパス"),
     ("Interpret Footage", "フッテージの解釈"),
     ("Create a new Folder", "新しいフォルダーを作成"),
@@ -1087,6 +1131,9 @@ const JAPANESE: &[(&str, &str)] = &[
     ("ArtCraft website", "ArtCraftのウェブサイト"),
     ("Source code on GitHub", "GitHubのソースコード"),
     ("3D Renderer", "3Dレンダラー"),
+    ("Black", "黒"),
+    ("White", "白"),
+    ("Composition Settings", "コンポジション設定"),
     ("Preset Name", "プリセット名"),
     ("Save Preset…", "プリセットを保存…"),
     ("Delete Preset", "プリセットを削除"),
@@ -1182,6 +1229,17 @@ const JAPANESE: &[(&str, &str)] = &[
     ("* Animation Presets", "* アニメーションプリセット"),
     ("Select a layer to apply to", "適用するレイヤーを選択してください"),
     ("Search effects and presets", "エフェクトとプリセットを検索"),
+    ("Building waveform…", "波形を生成中…"),
+    ("No effects. Drag one from Effects & Presets.", "エフェクトがありません。エフェクト&プリセットからドラッグしてください。"),
+    (
+        "Click the ring to add a colour; Alt-click a stop (or drag it off) to remove it",
+        "リングをクリックするとカラーを追加します。Altを押しながらストップをクリック（または外へドラッグ）すると削除します",
+    ),
+    (
+        "Start from a ready-made project. Opening a template makes an untitled copy.",
+        "既成のプロジェクトから開始します。テンプレートを開くと無題のコピーが作成されます。",
+    ),
+    ("Square Pixels", "スクエアピクセル"),
     ("Alpha Expansion:", "アルファの拡張:"),
     ("Fill Method:", "塗りの方法:"),
     ("Edge Blend", "エッジのブレンド"),
diff --git a/crates/ui-egui/src/lib.rs b/crates/ui-egui/src/lib.rs
index 3b85c84cd..ad1842e3d 100644
--- a/crates/ui-egui/src/lib.rs
+++ b/crates/ui-egui/src/lib.rs
@@ -9,11 +9,12 @@
 
 pub(crate) mod a11y;
 
-/// EffectCraft as craft-update knows it, with its 128 px icon: the update prompt shows the icon,
-/// and an AppImage's menu entry gets it.
+/// EffectCraft as craft-update knows it, with its 128 px icon and accent colour: the update
+/// prompt shows both, and an AppImage's menu entry gets the icon.
 #[cfg(not(target_arch = "wasm32"))]
 pub const UPDATE_APP: craft_update::app::App = craft_update::app::App {
     icon_png: Some(include_bytes!("../../../assets/app-icon/hicolor/128x128/apps/ai.storyteller.effectcraft.png")),
+    accent: Some([0xe0, 0x36, 0x8f]),
     ..craft_update::suite::EFFECTCRAFT
 };
 
diff --git a/crates/ui-egui/src/panels.rs b/crates/ui-egui/src/panels.rs
index f6a5b5321..c4a6f4d3a 100644
--- a/crates/ui-egui/src/panels.rs
+++ b/crates/ui-egui/src/panels.rs
@@ -124,8 +124,10 @@ impl PresetRef {
 
 /// Layers carried by a Project item drag. Dragging a selected item uses the
 /// complete selection, while dragging an unselected item uses only that item.
-/// Folders and data files are not composition layers.
-pub(crate) fn project_drop_items(app: &EffectcraftApp, dragged: u64) -> Vec<u64> {
+/// Folders and data files are not composition layers, and the composition the
+/// drop lands in is left out of a selection: it cannot contain itself, and one
+/// such item would make the engine refuse the whole drop (#2589).
+pub(crate) fn project_drop_items(app: &EffectcraftApp, dragged: u64, target: Option<effectcraft_engine::project::ItemId>) -> Vec<u64> {
     use effectcraft_engine::project::{FootageKind, ItemId, ItemKind};
 
     let selected = &app.session.state.project_selection;
@@ -139,6 +141,9 @@ pub(crate) fn project_drop_items(app: &EffectcraftApp, dragged: u64) -> Vec<u64>
     candidates
         .into_iter()
         .filter(|id| {
+            if Some(ItemId(*id)) == target {
+                return false;
+            }
             app.session.project.item(ItemId(*id)).is_some_and(|item| match &item.kind {
                 ItemKind::Comp(_) | ItemKind::Solid(_) => true,
                 ItemKind::Footage(f) => f.kind != FootageKind::Data,
diff --git a/crates/ui-egui/src/panels/project.rs b/crates/ui-egui/src/panels/project.rs
index 2da839fe3..f84a49d84 100644
--- a/crates/ui-egui/src/panels/project.rs
+++ b/crates/ui-egui/src/panels/project.rs
@@ -618,9 +618,14 @@ fn item_menu(
         actions.push(("project.move".into(), json!({"items": targets(app, id, selected), "folder": null})));
         ui.close();
     }
-    if !it.is_folder() && ui.button(crate::i18n::tr("Add to Composition")).clicked() {
-        actions.push(("layer.addItem".into(), json!({"item": id.0})));
-        ui.close();
+    // A composition cannot contain itself, so its own row offers nothing to add to (#2589).
+    if !it.is_folder() {
+        let add = ui.add_enabled(app.session.state.active_comp != Some(id), egui::Button::new(crate::i18n::tr("Add to Composition")));
+        app.auto.add("project.context.addToComposition", add.rect, "Add to Composition");
+        if add.clicked() {
+            actions.push(("layer.addItem".into(), json!({"item": id.0})));
+            ui.close();
+        }
     }
     // File ▸ New Comp from Selection on the selection (the right-clicked row joins it
     // above): several items ask how in its dialog, as in After Effects (#360).
diff --git a/crates/ui-egui/src/panels/timeline.rs b/crates/ui-egui/src/panels/timeline.rs
index 19a8d9fc2..4fa75436b 100644
--- a/crates/ui-egui/src/panels/timeline.rs
+++ b/crates/ui-egui/src/panels/timeline.rs
@@ -1778,7 +1778,7 @@ fn empty_timeline(app: &mut EffectcraftApp, ui: &mut egui::Ui, rect: Rect) {
     if let Some(crate::panels::DragPayload::Item(dragged)) = egui::DragAndDrop::payload::<crate::panels::DragPayload>(&ctx).as_deref()
         && ui.rect_contains_pointer(rect)
     {
-        let items: Vec<ItemId> = crate::panels::project_drop_items(app, *dragged)
+        let items: Vec<ItemId> = crate::panels::project_drop_items(app, *dragged, None)
             .into_iter()
             .map(ItemId)
             .filter(|id| {
@@ -4964,7 +4964,7 @@ fn drop_insert_layers(app: &mut EffectcraftApp, g: &mut Rw, payload: &std::sync:
         match payload.as_ref() {
             crate::panels::DragPayload::Item(id) => {
                 // Insert each selected item at the drop point, in selection order.
-                for (offset, item) in crate::panels::project_drop_items(app, *id).into_iter().enumerate() {
+                for (offset, item) in crate::panels::project_drop_items(app, *id, Some(g.tl.cid)).into_iter().enumerate() {
                     actions.push(("layer.addItem".into(), json!({"item": item, "index": index.saturating_add(offset), "time": time.clone()})));
                 }
             }
diff --git a/crates/ui-egui/src/panels/viewer/frame.rs b/crates/ui-egui/src/panels/viewer/frame.rs
index 65095b399..e0d2a3bc8 100644
--- a/crates/ui-egui/src/panels/viewer/frame.rs
+++ b/crates/ui-egui/src/panels/viewer/frame.rs
@@ -25,7 +25,7 @@ pub(super) fn empty_state(app: &mut EffectcraftApp, ui: &mut egui::Ui, rect: Rec
     if let Some(crate::panels::DragPayload::Item(dragged)) = egui::DragAndDrop::payload::<crate::panels::DragPayload>(&ctx).as_deref()
         && ui.rect_contains_pointer(rect)
     {
-        let items: Vec<effectcraft_engine::project::ItemId> = crate::panels::project_drop_items(app, *dragged)
+        let items: Vec<effectcraft_engine::project::ItemId> = crate::panels::project_drop_items(app, *dragged, None)
             .into_iter()
             .map(effectcraft_engine::project::ItemId)
             .filter(|id| {
diff --git a/crates/ui-egui/src/panels/viewer_drop.rs b/crates/ui-egui/src/panels/viewer_drop.rs
index ac56d9acb..aadd2c122 100644
--- a/crates/ui-egui/src/panels/viewer_drop.rs
+++ b/crates/ui-egui/src/panels/viewer_drop.rs
@@ -54,7 +54,11 @@ pub(crate) fn show(app: &mut EffectcraftApp, ui: &egui::Ui, painter: &egui::Pain
             }
             // New layers go above the current selection, so insert in reverse
             // to preserve the order of the dragged Project items.
-            crate::panels::project_drop_items(app, *item).into_iter().rev().map(|item| ("layer.addItem", json!({"item": item, "position": at}))).collect()
+            crate::panels::project_drop_items(app, *item, app.session.state.active_comp)
+                .into_iter()
+                .rev()
+                .map(|item| ("layer.addItem", json!({"item": item, "position": at})))
+                .collect()
         }
         DragPayload::Files(paths) => vec![("mediaBrowser.import", json!({"paths": paths, "addToComp": true, "position": at}))],
         DragPayload::Property { .. } => vec![],
diff --git a/crates/ui-egui/src/prefs_live.rs b/crates/ui-egui/src/prefs_live.rs
index ee222c892..cc283635f 100644
--- a/crates/ui-egui/src/prefs_live.rs
+++ b/crates/ui-egui/src/prefs_live.rs
@@ -86,7 +86,17 @@ pub fn dropped_files(app: &mut EffectcraftApp, ui: &egui::Ui, bounds: Rect) {
             .find(|e| e.id == "viewer.area")
             .map(|e| Rect::from_min_size(egui::pos2(e.rect[0], e.rect[1]), egui::vec2(e.rect[2], e.rect[3])));
 
-        let at = if proj.is_empty() {
+        // Dropping a file on the Timeline adds it to the composition the panel shows, as it does
+        // on the viewer (#2588); the import decides the layer's position.
+        let over_timeline = ctx.input(|i| i.pointer.hover_pos()).is_some_and(|p| {
+            app.auto
+                .elements
+                .iter()
+                .find(|e| e.id == "panel.Timeline")
+                .is_some_and(|e| Rect::from_min_size(egui::pos2(e.rect[0], e.rect[1]), egui::vec2(e.rect[2], e.rect[3])).contains(p))
+        });
+
+        let at = if proj.is_empty() && !over_timeline {
             ctx.input(|i| i.pointer.hover_pos()).filter(|p| viewer.is_some_and(|v| v.contains(*p))).and_then(|p| crate::panels::viewer::screen_to_comp(&ctx, p))
         } else {
             None
@@ -101,7 +111,7 @@ pub fn dropped_files(app: &mut EffectcraftApp, ui: &egui::Ui, bounds: Rect) {
         let mut params = json!({
             "paths": rest,
             "drag": true,
-            "addToComp": at.is_some(),
+            "addToComp": at.is_some() || over_timeline,
             "position": at,
             "background": true
         });
diff --git a/crates/ui-egui/tests/it/main.rs b/crates/ui-egui/tests/it/main.rs
index e07382434..180b56232 100644
--- a/crates/ui-egui/tests/it/main.rs
+++ b/crates/ui-egui/tests/it/main.rs
@@ -69,6 +69,7 @@ mod ui_render_queue;
 mod ui_script_console;
 mod ui_scriptui;
 mod ui_scrolling;
+mod ui_self_drop;
 mod ui_settings_info;
 mod ui_tabs;
 mod ui_tail;
diff --git a/crates/ui-egui/tests/it/ui_drag_drop.rs b/crates/ui-egui/tests/it/ui_drag_drop.rs
index 5608dfcf3..42d0273f8 100644
--- a/crates/ui-egui/tests/it/ui_drag_drop.rs
+++ b/crates/ui-egui/tests/it/ui_drag_drop.rs
@@ -501,6 +501,19 @@ fn dropped_file_on_viewer_imports_and_adds_layer_at_pointer() {
     assert!((p[0] - 80.0).abs() <= tol && (p[1] - 45.0).abs() <= tol, "{p:?}");
 }
 
+/// #2588: a file dropped on the Timeline joins the composition the panel shows, as it does on the
+/// viewer; the import places the layer.
+#[test]
+fn dropped_file_on_the_timeline_becomes_a_layer() {
+    let (mut h, _) = harness();
+    h.state_mut().session.importer = Some(Arc::new(Gated { started: AtomicUsize::new(0), allow: Arc::new(AtomicUsize::new(usize::MAX)) }));
+    h.event(Event::PointerMoved(rect(&h, "panel.Timeline").center()));
+    h.step();
+    h.input_mut().dropped_files.push(Arc::new(Dropped(std::env::temp_dir().join("timeline-drop.mp4"))));
+    h.run_steps(2);
+    step_until(&mut h, |h| h.state().session.active_comp().is_some_and(|c| c.layers.iter().any(|l| l.name == "timeline-drop.mp4")));
+}
+
 /// #678: a dropped Photoshop file asks how to import it, as File ▸ Import ▸ File… does; the
 /// Import Kind starts at Settings ▸ Import ▸ Default Drag Import As, and OK imports the drop.
 #[test]
diff --git a/crates/ui-egui/tests/it/ui_self_drop.rs b/crates/ui-egui/tests/it/ui_self_drop.rs
new file mode 100644
index 000000000..a371cc80b
--- /dev/null
+++ b/crates/ui-egui/tests/it/ui_self_drop.rs
@@ -0,0 +1,75 @@
+//! #2589: a Project selection that contains the composition being dropped into must not fail the
+//! whole drop. Rendering writes a file named after the composition, so the Project panel holds
+//! both and selects both; the composition itself is not a layer it can hold.
+
+use effectcraft_engine::Session;
+use effectcraft_ui_egui::EffectcraftApp;
+use egui::{Event, Modifiers, Pos2, Rect, pos2, vec2};
+use egui_kittest::Harness;
+use serde_json::json;
+
+/// Compositions "Main" (active, 4 s at 30 fps, one solid) and "Clip".
+fn harness() -> (Harness<'static, EffectcraftApp>, u64, u64) {
+    let mut s = Session::default();
+    let clip = s.execute("comp.new", json!({"name": "Clip", "width": 160, "height": 90, "frameRate": 30, "duration": 1})).unwrap()["comp"].as_u64().unwrap();
+    let main = s.execute("comp.new", json!({"name": "Main", "width": 320, "height": 180, "frameRate": 30, "duration": 4})).unwrap()["comp"].as_u64().unwrap();
+    s.execute("layer.newSolid", json!({"name": "Bottom", "color": "#406080"})).unwrap();
+    let mut h = Harness::builder().with_size(vec2(1600.0, 1000.0)).build_eframe(|_| EffectcraftApp::new(s));
+    h.run_steps(3);
+    (h, main, clip)
+}
+
+fn rect(h: &Harness<'_, EffectcraftApp>, id: &str) -> Rect {
+    let e = h.state().auto.find(id).unwrap_or_else(|| panic!("no {id}")).clone();
+    Rect::from_min_size(pos2(e.rect[0], e.rect[1]), vec2(e.rect[2], e.rect[3]))
+}
+
+/// Press on `from`, move to `to` in steps, release there.
+fn drag(h: &mut Harness<'_, EffectcraftApp>, from: Pos2, to: Pos2) {
+    h.event(Event::PointerMoved(from));
+    h.step();
+    h.event(Event::PointerButton { pos: from, button: egui::PointerButton::Primary, pressed: true, modifiers: Modifiers::NONE });
+    h.step();
+    for k in 1..=10 {
+        h.event(Event::PointerMoved(from + (to - from) * (k as f32 / 10.0)));
+        h.step();
+    }
+    h.event(Event::PointerButton { pos: to, button: egui::PointerButton::Primary, pressed: false, modifiers: Modifiers::NONE });
+    h.run_steps(3);
+}
+
+fn stack(h: &Harness<'_, EffectcraftApp>) -> Vec<String> {
+    h.state().session.active_comp().unwrap().layers.iter().map(|l| l.name.clone()).collect()
+}
+
+fn layer_id(h: &Harness<'_, EffectcraftApp>, name: &str) -> u64 {
+    h.state().session.active_comp().unwrap().layers.iter().find(|l| l.name == name).unwrap().id.0
+}
+
+/// Both the composition and the render output are selected: dragging the file onto the Timeline
+/// still lands the file, and the composition is not carried along into itself.
+#[test]
+fn a_selection_holding_the_drop_target_does_not_fail_the_drop() {
+    let (mut h, main, clip) = harness();
+    h.state_mut().session.execute("project.select", json!({"items": [main, clip]})).unwrap();
+    h.run_steps(2);
+    let from = rect(&h, &format!("project.item.{clip}.name")).center();
+    let row = rect(&h, &format!("timeline.layer.{}.row", layer_id(&h, "Bottom")));
+    drag(&mut h, from, row.center());
+    assert_eq!(stack(&h), ["Bottom", "Clip"], "the composition the drop lands in is left out");
+    assert!(!h.state().ui.status.contains("contain itself"), "the drop did not fail: {}", h.state().ui.status);
+}
+
+/// Dragging the composition's own row onto its Timeline adds nothing and reports nothing.
+#[test]
+fn the_composition_dropped_on_itself_adds_nothing() {
+    let (mut h, main, _clip) = harness();
+    h.state_mut().session.execute("project.select", json!({"items": [main]})).unwrap();
+    h.run_steps(2);
+    let before = stack(&h);
+    let from = rect(&h, &format!("project.item.{main}.name")).center();
+    let row = rect(&h, &format!("timeline.layer.{}.row", layer_id(&h, "Bottom")));
+    drag(&mut h, from, row.center());
+    assert_eq!(stack(&h), before, "nothing is added");
+    assert!(!h.state().ui.status.contains("contain itself"), "no error: {}", h.state().ui.status);
+}