diff --git a/.fallowrc.jsonc b/.fallowrc.jsonc
index ccb30a1f32..ba82d3950b 100644
--- a/.fallowrc.jsonc
+++ b/.fallowrc.jsonc
@@ -55,6 +55,16 @@
     "packages/studio/src/hooks/gsapRuntimePreview.ts",
     // TEMP(studio-dnd): shipped unwired ahead of the NLE integration;
     // the app-shell swap PR (studio-dnd/pr22) wires the consumers and removes this block.
+    "packages/studio/src/components/nle/NLEContext.tsx",
+    "packages/studio/src/components/nle/PreviewPane.tsx",
+    "packages/studio/src/components/nle/AssetPreviewOverlay.tsx",
+    "packages/studio/src/player/components/TimelineOverlays.tsx",
+    "packages/studio/src/player/components/timelineClipChildren.tsx",
+    "packages/studio/src/player/components/timelineClipDragTypes.ts",
+    "packages/studio/src/player/hooks/useTimelinePlayerLoop.ts",
+    "packages/studio/src/utils/assetPreviewStore.ts",
+    // TEMP(studio-dnd): shipped unwired ahead of the NLE integration;
+    // the app-shell swap PR (studio-dnd/pr22) wires the consumers and removes this block.
     "packages/studio/src/components/editor/CanvasContextMenu.tsx",
   ],
   "ignorePatterns": [
@@ -446,6 +456,9 @@
     // complexity pre-dates the computed-timeline work. Exempted at file level
     // rather than refactored as scope creep.
     "ignore": [
+      // TEMP(studio-dnd): coexistence-window complexity flare (inherited/CRAP-no-coverage);
+      // removed by studio-dnd/pr22 when the final config lands.
+      "packages/studio/src/player/components/TimelineOverlays.tsx",
       // TEMP(studio-dnd): coexistence-window complexity flare (inherited/CRAP-no-coverage);
       // removed by studio-dnd/pr22 when the final config lands.
       "packages/studio/src/player/hooks/useTimelineSyncCallbacks.ts",
diff --git a/packages/studio/src/components/nle/AssetPreviewOverlay.tsx b/packages/studio/src/components/nle/AssetPreviewOverlay.tsx
new file mode 100644
index 0000000000..5364289f15
--- /dev/null
+++ b/packages/studio/src/components/nle/AssetPreviewOverlay.tsx
@@ -0,0 +1,147 @@
+/**
+ * CapCut-style asset preview overlay rendered inside PreviewPane.
+ *
+ * Shown when the user clicks an asset card that has NOT yet been added to the
+ * timeline. Displays the media (image / video / audio) without modifying the
+ * composition — no undo entry, no file mutation.
+ *
+ * Dismiss: X button, Escape key, or click on the scrim.
+ * Switching to another not-added asset replaces the current preview.
+ */
+import { useEffect, useCallback } from "react";
+import { VIDEO_EXT, IMAGE_EXT } from "../../utils/mediaTypes";
+import { useAssetPreviewStore } from "../../utils/assetPreviewStore";
+
+function basename(path: string): string {
+  return path.split("/").pop() ?? path;
+}
+
+type AssetKind = "image" | "video" | "audio";
+
+function resolveAssetKind(path: string): AssetKind {
+  if (VIDEO_EXT.test(path)) return "video";
+  if (IMAGE_EXT.test(path)) return "image";
+  return "audio";
+}
+
+/** The media element for a previewed asset, chosen by kind. */
+function AssetPreviewMedia({
+  kind,
+  serveUrl,
+  name,
+}: {
+  kind: AssetKind;
+  serveUrl: string;
+  name: string;
+}) {
+  if (kind === "image") {
+    return (
+      <img
+        src={serveUrl}
+        alt={name}
+        className="max-w-full max-h-[70vh] rounded-md object-contain shadow-2xl"
+      />
+    );
+  }
+  if (kind === "video") {
+    return (
+      <video
+        src={serveUrl}
+        controls
+        autoPlay
+        muted
+        playsInline
+        className="max-w-full max-h-[70vh] rounded-md shadow-2xl"
+      />
+    );
+  }
+  return (
+    <div className="flex flex-col items-center gap-4 px-6 py-8 rounded-xl bg-neutral-900 border border-neutral-800">
+      <svg
+        width="40"
+        height="40"
+        viewBox="0 0 24 24"
+        fill="none"
+        stroke="currentColor"
+        strokeWidth="1.5"
+        className="text-neutral-500"
+      >
+        <path d="M9 18V5l12-2v13" strokeLinecap="round" strokeLinejoin="round" />
+        <circle cx="6" cy="18" r="3" />
+        <circle cx="18" cy="16" r="3" />
+      </svg>
+      <audio src={serveUrl} controls className="w-64" />
+    </div>
+  );
+}
+
+export function AssetPreviewOverlay() {
+  const previewAsset = useAssetPreviewStore((s) => s.previewAsset);
+  const previewProjectId = useAssetPreviewStore((s) => s.previewProjectId);
+  const clearPreviewAsset = useAssetPreviewStore((s) => s.clearPreviewAsset);
+
+  const handleKeyDown = useCallback(
+    (e: KeyboardEvent) => {
+      if (e.key === "Escape") clearPreviewAsset();
+    },
+    [clearPreviewAsset],
+  );
+
+  useEffect(() => {
+    if (!previewAsset) return;
+    window.addEventListener("keydown", handleKeyDown);
+    return () => window.removeEventListener("keydown", handleKeyDown);
+  }, [previewAsset, handleKeyDown]);
+
+  if (!previewAsset || !previewProjectId) return null;
+
+  const encodedAsset = previewAsset.split("/").map(encodeURIComponent).join("/");
+  const serveUrl = `/api/projects/${previewProjectId}/preview/${encodedAsset}`;
+  const name = basename(previewAsset);
+
+  return (
+    <div
+      className="absolute inset-0 z-50 flex flex-col items-center justify-center bg-black/80"
+      onClick={clearPreviewAsset}
+      role="dialog"
+      aria-label={`Preview: ${name}`}
+      aria-modal="true"
+    >
+      {/* Close button */}
+      <button
+        className="absolute top-3 right-3 w-7 h-7 rounded-full bg-neutral-800 hover:bg-neutral-700 text-neutral-300 hover:text-white flex items-center justify-center transition-colors z-10"
+        onClick={(e) => {
+          e.stopPropagation();
+          clearPreviewAsset();
+        }}
+        aria-label="Close preview"
+      >
+        <svg
+          width="12"
+          height="12"
+          viewBox="0 0 24 24"
+          stroke="currentColor"
+          strokeWidth="2.5"
+          fill="none"
+          strokeLinecap="round"
+        >
+          <line x1="18" y1="6" x2="6" y2="18" />
+          <line x1="6" y1="6" x2="18" y2="18" />
+        </svg>
+      </button>
+
+      {/* Media */}
+      <div
+        className="flex flex-col items-center gap-3 max-w-[90%] max-h-[85%]"
+        onClick={(e) => e.stopPropagation()}
+      >
+        <AssetPreviewMedia kind={resolveAssetKind(previewAsset)} serveUrl={serveUrl} name={name} />
+
+        {/* Filename label */}
+        <span className="text-[12px] text-neutral-400 truncate max-w-full px-2 text-center">
+          {name}
+        </span>
+      </div>
+    </div>
+  );
+}
diff --git a/packages/studio/src/components/nle/NLEContext.test.ts b/packages/studio/src/components/nle/NLEContext.test.ts
new file mode 100644
index 0000000000..9c9617f7dc
--- /dev/null
+++ b/packages/studio/src/components/nle/NLEContext.test.ts
@@ -0,0 +1,88 @@
+// @vitest-environment happy-dom
+import React, { act } from "react";
+import { createRoot, type Root } from "react-dom/client";
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
+import { shouldDisableTimelineWhileCompositionLoading, NLEProvider } from "./NLEContext";
+import { useAssetPreviewStore } from "../../utils/assetPreviewStore";
+import { installReactActEnvironment } from "../../hooks/domSelectionTestHarness";
+
+installReactActEnvironment();
+
+// Render NLEProvider into a fresh detached host and settle the mount effect.
+async function mountNleProvider(props: {
+  projectId: string;
+  refreshKey?: number;
+}): Promise<{ host: HTMLDivElement; root: Root }> {
+  const host = document.createElement("div");
+  document.body.append(host);
+  const root = createRoot(host);
+  await renderNleProvider(root, props);
+  return { host, root };
+}
+
+// Re-render NLEProvider into an existing root and settle effects.
+async function renderNleProvider(
+  root: Root,
+  props: { projectId: string; refreshKey?: number },
+): Promise<void> {
+  await act(async () => {
+    root.render(React.createElement(NLEProvider, props, React.createElement("div")));
+    await Promise.resolve();
+  });
+}
+
+describe("timeline loading disable state", () => {
+  it("disables the timeline while the composition loading overlay is visible", () => {
+    expect(shouldDisableTimelineWhileCompositionLoading(true)).toBe(true);
+  });
+
+  it("reenables the timeline after composition loading finishes", () => {
+    expect(shouldDisableTimelineWhileCompositionLoading(false)).toBe(false);
+  });
+});
+
+describe("NLEProvider — asset preview scoping", () => {
+  beforeEach(() => {
+    // No project API in this unit test — stub fetch so the compIdToSrc mount
+    // effect's request rejects quietly instead of hitting the network.
+    vi.stubGlobal(
+      "fetch",
+      vi.fn(() => Promise.reject(new Error("no network in tests"))),
+    );
+  });
+
+  afterEach(() => {
+    vi.unstubAllGlobals();
+    useAssetPreviewStore.getState().clearPreviewAsset();
+  });
+
+  it("clears a stale cross-project asset preview when the active project changes", async () => {
+    const { host, root } = await mountNleProvider({ projectId: "project-a" });
+
+    useAssetPreviewStore.getState().setPreviewAsset("assets/photo.png", "project-a");
+    expect(useAssetPreviewStore.getState().previewAsset).toBe("assets/photo.png");
+
+    await renderNleProvider(root, { projectId: "project-b" });
+
+    // The overlay stays mounted across the project switch (EditorShell isn't
+    // keyed by projectId) — the store itself must be the thing that clears.
+    expect(useAssetPreviewStore.getState().previewAsset).toBeNull();
+    expect(useAssetPreviewStore.getState().previewProjectId).toBeNull();
+
+    act(() => root.unmount());
+    host.remove();
+  });
+
+  it("does not clear the preview on a re-render that keeps the same projectId", async () => {
+    const { host, root } = await mountNleProvider({ projectId: "project-a" });
+
+    useAssetPreviewStore.getState().setPreviewAsset("assets/photo.png", "project-a");
+
+    await renderNleProvider(root, { projectId: "project-a", refreshKey: 1 });
+
+    expect(useAssetPreviewStore.getState().previewAsset).toBe("assets/photo.png");
+
+    act(() => root.unmount());
+    host.remove();
+  });
+});
diff --git a/packages/studio/src/components/nle/NLEContext.tsx b/packages/studio/src/components/nle/NLEContext.tsx
new file mode 100644
index 0000000000..13db697f2e
--- /dev/null
+++ b/packages/studio/src/components/nle/NLEContext.tsx
@@ -0,0 +1,312 @@
+import {
+  createContext,
+  useContext,
+  useState,
+  useCallback,
+  useRef,
+  useEffect,
+  type ReactNode,
+} from "react";
+import { useMountEffect } from "../../hooks/useMountEffect";
+import { useTimelinePlayer, usePlayerStore } from "../../player";
+import type { TimelineElement } from "../../player";
+import type { CompositionLevel } from "./CompositionBreadcrumb";
+import { useCompositionStack } from "./useCompositionStack";
+import { MIN_TIMELINE_H, MIN_PREVIEW_H } from "./TimelineResizeDivider";
+import { setCompositionSourceMap } from "../editor/domEditingDom";
+import { ensureMotionPathPluginLoaded } from "../../utils/gsapSoftReload";
+import { readStudioUiPreferences, writeStudioUiPreferences } from "../../utils/studioUiPreferences";
+import { useAssetPreviewStore } from "../../utils/assetPreviewStore";
+
+// Timeline gets a generous default height so the preview isn't oversized and the
+// tracks have room to breathe (CapCut-style). Users can still drag the divider.
+const DEFAULT_TIMELINE_H = 340;
+
+export function shouldDisableTimelineWhileCompositionLoading(compositionLoading: boolean): boolean {
+  return compositionLoading;
+}
+
+export interface NLEContextValue {
+  projectId: string;
+  // player (from useTimelinePlayer — single instance for the whole shell)
+  iframeRef: React.MutableRefObject<HTMLIFrameElement | null>;
+  togglePlay: () => void;
+  seek: (time: number, options?: { keepPlaying?: boolean }) => boolean;
+  refreshPlayer: () => void;
+  onIframeLoad: () => void;
+  // composition stack (from useCompositionStack)
+  compositionStack: CompositionLevel[];
+  updateCompositionStack: React.Dispatch<React.SetStateAction<CompositionLevel[]>>;
+  handleNavigateComposition: (index: number) => void;
+  handleDrillDown: (element: TimelineElement) => void;
+  compIdToSrc: Map<string, string>;
+  // layout state
+  timelineH: number;
+  setTimelineH: React.Dispatch<React.SetStateAction<number>>;
+  persistTimelineH: (height: number) => void;
+  containerRef: React.RefObject<HTMLDivElement | null>;
+  // composition loading
+  compositionLoading: boolean;
+  setCompositionLoading: (loading: boolean) => void;
+  timelineDisabled: boolean;
+  hasLoadedOnceRef: React.MutableRefObject<boolean>;
+  // preview composition size (for preview block drop)
+  previewCompositionSize: { width: number; height: number } | null;
+  setPreviewCompositionSize: (size: { width: number; height: number } | null) => void;
+}
+
+const NLEContext = createContext<NLEContextValue | null>(null);
+
+export function useNLEContext(): NLEContextValue {
+  const ctx = useContext(NLEContext);
+  if (!ctx) throw new Error("useNLEContext must be used within an NLEProvider");
+  return ctx;
+}
+
+export interface NLEProviderProps {
+  projectId: string;
+  refreshKey?: number;
+  activeCompositionPath?: string | null;
+  onIframeRef?: (iframe: HTMLIFrameElement | null) => void;
+  onCompositionChange?: (compositionPath: string | null) => void;
+  onCompIdToSrcChange?: (map: Map<string, string>) => void;
+  onCompositionLoadingChange?: (loading: boolean) => void;
+  children: ReactNode;
+}
+
+export function NLEProvider({
+  projectId,
+  refreshKey,
+  activeCompositionPath,
+  onIframeRef,
+  onCompositionChange,
+  onCompIdToSrcChange,
+  onCompositionLoadingChange,
+  children,
+}: NLEProviderProps) {
+  const {
+    iframeRef,
+    togglePlay,
+    seek,
+    onIframeLoad: baseOnIframeLoad,
+    refreshPlayer,
+  } = useTimelinePlayer();
+
+  // Reset timeline state when the project changes. Done in an effect, not during
+  // render: reset() updates the player store, and updating another store/component
+  // mid-render triggers React's "Cannot update a component while rendering a
+  // different component" warning. The effect runs right after commit, so the new
+  // project's first frame may briefly show prior timeline state before it clears.
+  //
+  // Also clears the asset preview overlay store: it is project-scoped (see its
+  // doc-comment) but nothing else clears it on project change — EditorShell isn't
+  // keyed by projectId and the overlay stays mounted, so a preview opened in one
+  // project would otherwise keep rendering (and re-fetching from) the old project
+  // after switching.
+  useEffect(() => {
+    usePlayerStore.getState().reset();
+    useAssetPreviewStore.getState().clearPreviewAsset();
+  }, [projectId]);
+
+  // Authored composition size measured from the loaded preview — drives drop
+  // coordinate mapping so blocks land where the user pointed on any comp size.
+  const [previewCompositionSize, setPreviewCompositionSize] = useState<{
+    width: number;
+    height: number;
+  } | null>(null);
+
+  // Lightweight reload: change iframe src instead of destroying the Player.
+  const prevRefreshKeyRef = useRef(refreshKey);
+  useEffect(() => {
+    if (refreshKey === prevRefreshKeyRef.current) return;
+    prevRefreshKeyRef.current = refreshKey;
+    refreshPlayer();
+  }, [refreshKey, refreshPlayer]);
+
+  const onIframeLoad = useCallback(() => {
+    baseOnIframeLoad();
+    // Pre-load + register MotionPathPlugin once so adding a motion path in the
+    // studio doesn't take the async plugin-load flash path on the first soft
+    // reload (the comp may not ship the plugin until it actually uses one).
+    ensureMotionPathPluginLoaded(iframeRef.current);
+    onIframeRef?.(iframeRef.current);
+  }, [baseOnIframeLoad, iframeRef, onIframeRef]);
+
+  const {
+    compositionStack,
+    updateCompositionStack,
+    handleNavigateComposition,
+    handleDrillDown: drillDown,
+    compIdToSrc,
+    setCompIdToSrc,
+  } = useCompositionStack({
+    projectId,
+    activeCompositionPath,
+    onCompositionChange,
+  });
+
+  // Wrap handleDrillDown to also scan the iframe DOM for data-composition-src
+  const iframeRef_ = iframeRef;
+  const handleDrillDown = useCallback(
+    (element: TimelineElement) => {
+      if (!element.compositionSrc) return;
+      usePlayerStore.getState().setSelectedElementId(null);
+      // Check compIdToSrc map first; then scan iframe DOM; then fall through to drillDown
+      const compId = element.id;
+      let resolvedPath = compIdToSrc.get(compId);
+      if (!resolvedPath) {
+        try {
+          const doc = iframeRef_.current?.contentDocument;
+          if (doc) {
+            const host = doc.querySelector(
+              `[data-composition-id="${CSS.escape(compId)}"][data-composition-src]`,
+            );
+            if (host) {
+              resolvedPath = host.getAttribute("data-composition-src") || undefined;
+            }
+          }
+        } catch {
+          /* cross-origin */
+        }
+      }
+      // Delegate with the resolved compositionSrc (may be same as original)
+      drillDown({
+        id: compId,
+        compositionSrc: resolvedPath ?? element.compositionSrc,
+      });
+    },
+    [compIdToSrc, drillDown, iframeRef_],
+  );
+
+  // Composition ID → file path map from raw index.html
+  const compIdToSrcRef = useRef(compIdToSrc);
+  compIdToSrcRef.current = compIdToSrc;
+
+  useMountEffect(() => {
+    fetch(`/api/projects/${projectId}/files/index.html`)
+      .then((r) => {
+        if (!r.ok) throw new Error(`HTTP ${r.status}`);
+        return r.json();
+      })
+      .then((data: { content?: string }) => {
+        const html = data.content || "";
+        const map = new Map<string, string>();
+        const re =
+          /data-composition-id=["']([^"']+)["'][^>]*data-composition-src=["']([^"']+)["']|data-composition-src=["']([^"']+)["'][^>]*data-composition-id=["']([^"']+)["']/g;
+        let match;
+        while ((match = re.exec(html)) !== null) {
+          const id = match[1] || match[4];
+          const src = match[2] || match[3];
+          if (id && src) map.set(id, src);
+        }
+        setCompIdToSrc(map);
+        // Let DOM source-resolution recover a subcomposition element's source file
+        // (the runtime drops the linkage when inlining — see getSourceFileForElement).
+        setCompositionSourceMap(map);
+        onCompIdToSrcChange?.(map);
+      })
+      .catch((err: unknown) => {
+        // Non-fatal: drill-down still works via the iframe DOM scan; without
+        // the map only source-file resolution for sub-comps degrades.
+        console.warn("[studio] Couldn't load composition source map from index.html:", err);
+      });
+  });
+
+  // Patch elements with compositionSrc whenever elements or compIdToSrc change.
+  // eslint-disable-next-line no-restricted-syntax
+  useEffect(() => {
+    if (compIdToSrc.size === 0) return;
+    const patchElements = (elements: TimelineElement[]): TimelineElement[] | null => {
+      const map = compIdToSrcRef.current;
+      if (map.size === 0) return null;
+      let patched = false;
+      const updated = elements.map((el) => {
+        if (el.compositionSrc) return el;
+        const src = map.get(el.id) ?? map.get(el.id.replace(/-(host|comp|layer)$/, ""));
+        if (src) {
+          patched = true;
+          return { ...el, compositionSrc: src };
+        }
+        return el;
+      });
+      return patched ? updated : null;
+    };
+    const patched = patchElements(usePlayerStore.getState().elements);
+    if (patched) usePlayerStore.getState().setElements(patched);
+    let patching = false;
+    return usePlayerStore.subscribe((state, prev) => {
+      if (patching) return;
+      if (state.elements === prev.elements || state.elements.length === 0) return;
+      if (state.elements.every((el) => el.compositionSrc)) return;
+      patching = true;
+      const result = patchElements(state.elements);
+      if (result) state.setElements(result);
+      patching = false;
+    });
+  }, [compIdToSrc]);
+
+  // Resizable timeline height — persisted alongside zoom/pan so the user's
+  // workspace layout survives reloads.
+  const [timelineH, setTimelineH] = useState(() => {
+    const stored = readStudioUiPreferences().timelineHeight;
+    return stored !== undefined && stored >= MIN_TIMELINE_H ? stored : DEFAULT_TIMELINE_H;
+  });
+  const persistTimelineH = useCallback((height: number) => {
+    writeStudioUiPreferences({ timelineHeight: Math.round(height) });
+  }, []);
+  const containerRef = useRef<HTMLDivElement>(null);
+  // A height persisted on a tall window can exceed this window's container and
+  // collapse the flex-1 preview to 0px — clamp once the container is measurable
+  // (the drag/keyboard paths already clamp; the restore path must too).
+  useEffect(() => {
+    const containerH = containerRef.current?.getBoundingClientRect().height;
+    if (!containerH) return;
+    const max = containerH - MIN_PREVIEW_H;
+    setTimelineH((prev) => (prev > max ? Math.max(MIN_TIMELINE_H, max) : prev));
+  }, []);
+
+  const hasLoadedOnceRef = useRef(false);
+  const [compositionLoading, setCompositionLoadingRaw] = useState(true);
+  const setCompositionLoading = useCallback((loading: boolean) => {
+    if (!loading) hasLoadedOnceRef.current = true;
+    if (loading && hasLoadedOnceRef.current) return;
+    setCompositionLoadingRaw(loading);
+  }, []);
+  const timelineDisabled = shouldDisableTimelineWhileCompositionLoading(compositionLoading);
+
+  useEffect(() => {
+    onCompositionLoadingChange?.(compositionLoading);
+  }, [compositionLoading, onCompositionLoadingChange]);
+
+  const onIframeRefStable = useRef(onIframeRef);
+  onIframeRefStable.current = onIframeRef;
+  useEffect(() => {
+    onIframeRefStable.current?.(iframeRef.current);
+  }, [compositionStack.length, refreshKey, iframeRef]);
+
+  const value: NLEContextValue = {
+    projectId,
+    iframeRef,
+    togglePlay,
+    seek,
+    refreshPlayer,
+    onIframeLoad,
+    compositionStack,
+    updateCompositionStack,
+    handleNavigateComposition,
+    handleDrillDown,
+    compIdToSrc,
+    timelineH,
+    setTimelineH,
+    persistTimelineH,
+    containerRef,
+    compositionLoading,
+    setCompositionLoading,
+    timelineDisabled,
+    hasLoadedOnceRef,
+    previewCompositionSize,
+    setPreviewCompositionSize,
+  };
+
+  return <NLEContext.Provider value={value}>{children}</NLEContext.Provider>;
+}
diff --git a/packages/studio/src/components/nle/PreviewPane.tsx b/packages/studio/src/components/nle/PreviewPane.tsx
new file mode 100644
index 0000000000..530f4ba95f
--- /dev/null
+++ b/packages/studio/src/components/nle/PreviewPane.tsx
@@ -0,0 +1,163 @@
+import { useCallback, useRef, useSyncExternalStore, type ReactNode } from "react";
+import { PlayerControls } from "../../player";
+import type { TimelineElement } from "../../player";
+import { NLEPreview } from "./NLEPreview";
+import { CompositionBreadcrumb } from "./CompositionBreadcrumb";
+import { usePreviewBlockDrop } from "./usePreviewBlockDrop";
+import { useNLEContext } from "./NLEContext";
+import { AssetPreviewOverlay } from "./AssetPreviewOverlay";
+
+function subscribeFullscreen(cb: () => void) {
+  document.addEventListener("fullscreenchange", cb);
+  return () => document.removeEventListener("fullscreenchange", cb);
+}
+
+function getFullscreenElement() {
+  return document.fullscreenElement;
+}
+
+// Clear the timeline selection when a pointer lands outside the composition
+// frame (clicks *inside* the frame are handled by the DOM-edit overlay).
+// fallow-ignore-next-line complexity
+function deselectIfPointerOutsideFrame(
+  e: React.PointerEvent,
+  iframe: HTMLIFrameElement | null,
+  onDeselect?: (element: null) => void,
+): void {
+  const el = iframe?.parentElement ?? iframe;
+  if (!el) return;
+  const rect = el.getBoundingClientRect();
+  const outside =
+    e.clientX < rect.left ||
+    e.clientX > rect.right ||
+    e.clientY < rect.top ||
+    e.clientY > rect.bottom;
+  if (outside) onDeselect?.(null);
+}
+
+export interface PreviewPaneProps {
+  portrait?: boolean;
+  /** Slot for overlays rendered on top of the preview (cursors, highlights, etc.) */
+  previewOverlay?: ReactNode;
+  onSelectTimelineElement?: (element: TimelineElement | null) => void;
+  onPreviewBlockDrop?: (
+    blockName: string,
+    position: { left: number; top: number },
+  ) => Promise<void> | void;
+}
+
+// fallow-ignore-next-line complexity
+export function PreviewPane({
+  portrait,
+  previewOverlay,
+  onSelectTimelineElement,
+  onPreviewBlockDrop,
+}: PreviewPaneProps) {
+  const {
+    projectId,
+    iframeRef,
+    togglePlay,
+    seek,
+    onIframeLoad,
+    compositionStack,
+    handleNavigateComposition,
+    setCompositionLoading,
+    timelineDisabled,
+    hasLoadedOnceRef,
+    previewCompositionSize,
+    setPreviewCompositionSize,
+  } = useNLEContext();
+
+  const stageRefForDrop = useRef<HTMLDivElement | null>(null);
+  const handleStageRef = useCallback((ref: React.RefObject<HTMLDivElement | null>) => {
+    stageRefForDrop.current = ref.current;
+  }, []);
+
+  const {
+    isDragOver: previewDragOver,
+    handleDragEnter: handlePreviewDragEnter,
+    handleDragOver: handlePreviewDragOver,
+    handleDragLeave: handlePreviewDragLeave,
+    handleDrop: handlePreviewDrop,
+  } = usePreviewBlockDrop({
+    portrait,
+    compositionSize: previewCompositionSize,
+    stageRef: stageRefForDrop as React.RefObject<HTMLDivElement | null>,
+    onBlockDrop: onPreviewBlockDrop,
+  });
+
+  // Preview-only fullscreen: fullscreen targets THIS pane's container, so the
+  // browser shows only the preview (sidebars + timeline are excluded naturally).
+  const containerRef = useRef<HTMLDivElement>(null);
+  const fullscreenElement = useSyncExternalStore(subscribeFullscreen, getFullscreenElement);
+  const isFullscreen = fullscreenElement === containerRef.current && fullscreenElement != null;
+
+  const toggleFullscreen = useCallback(() => {
+    if (!containerRef.current) return;
+    if (document.fullscreenElement) {
+      void document.exitFullscreen();
+    } else {
+      void containerRef.current.requestFullscreen();
+    }
+  }, []);
+
+  const currentLevel = compositionStack[compositionStack.length - 1];
+  const directUrl = compositionStack.length > 1 ? currentLevel.previewUrl : undefined;
+
+  return (
+    <div
+      ref={containerRef}
+      // Panel chrome (rounded border) is dropped in fullscreen so the preview
+      // fills the screen edge-to-edge.
+      className={`flex-1 min-h-0 flex flex-col overflow-hidden bg-neutral-950 ${
+        isFullscreen ? "" : "rounded-lg border border-neutral-800/50"
+      }`}
+      data-studio-fullscreen-target=""
+    >
+      <div
+        className="flex-1 min-h-0 relative overflow-hidden"
+        data-preview-pan-surface="true"
+        onPointerDown={(e) =>
+          deselectIfPointerOutsideFrame(e, iframeRef.current, onSelectTimelineElement)
+        }
+        onDragEnter={handlePreviewDragEnter}
+        onDragOver={handlePreviewDragOver}
+        onDragLeave={handlePreviewDragLeave}
+        onDrop={handlePreviewDrop}
+      >
+        <div className="absolute inset-0 overflow-hidden">
+          <NLEPreview
+            projectId={projectId}
+            iframeRef={iframeRef}
+            onIframeLoad={onIframeLoad}
+            onCompositionLoadingChange={setCompositionLoading}
+            portrait={portrait}
+            directUrl={directUrl}
+            suppressLoadingOverlay={hasLoadedOnceRef.current}
+            onStageRef={handleStageRef}
+            onCompositionSizeChange={setPreviewCompositionSize}
+          />
+          {previewDragOver && (
+            <div className="absolute inset-2 z-40 rounded-lg border-2 border-dashed border-studio-accent/50 bg-studio-accent/[0.04] pointer-events-none" />
+          )}
+          <AssetPreviewOverlay />
+        </div>
+        {!isFullscreen && previewOverlay}
+      </div>
+      {/* Transport row: no own background or border — the controls sit flat on
+          the preview panel's surface (CapCut-style). */}
+      <div className="flex-shrink-0">
+        {!isFullscreen && compositionStack.length > 1 && (
+          <CompositionBreadcrumb stack={compositionStack} onNavigate={handleNavigateComposition} />
+        )}
+        <PlayerControls
+          onTogglePlay={togglePlay}
+          onSeek={seek}
+          disabled={timelineDisabled}
+          isFullscreen={isFullscreen}
+          onToggleFullscreen={toggleFullscreen}
+        />
+      </div>
+    </div>
+  );
+}
diff --git a/packages/studio/src/player/components/TimelineOverlays.tsx b/packages/studio/src/player/components/TimelineOverlays.tsx
new file mode 100644
index 0000000000..0f0efcb73d
--- /dev/null
+++ b/packages/studio/src/player/components/TimelineOverlays.tsx
@@ -0,0 +1,122 @@
+import type { KeyframeCacheEntry, TimelineElement } from "../store/playerStore";
+import type { TimelineTheme } from "./timelineTheme";
+import type { TimelineRangeSelection } from "./timelineEditing";
+import type { TimelineEditCallbacks } from "./timelineCallbacks";
+import { EditPopover } from "./EditModal";
+import {
+  KeyframeDiamondContextMenu,
+  type KeyframeDiamondContextMenuState,
+} from "./KeyframeDiamondContextMenu";
+import { ClipContextMenu } from "./ClipContextMenu";
+import { TimelineShortcutHint } from "./TimelineShortcutHint";
+
+interface ClipContextMenuState {
+  x: number;
+  y: number;
+  element: TimelineElement;
+}
+
+interface TimelineOverlaysProps {
+  theme: TimelineTheme;
+  showShortcutHint: boolean;
+  showPopover: boolean;
+  rangeSelection: TimelineRangeSelection | null;
+  setShowPopover: (value: boolean) => void;
+  setRangeSelection: (value: TimelineRangeSelection | null) => void;
+  kfContextMenu: KeyframeDiamondContextMenuState | null;
+  setKfContextMenu: (value: KeyframeDiamondContextMenuState | null) => void;
+  onDeleteKeyframe: TimelineEditCallbacks["onDeleteKeyframe"];
+  onDeleteAllKeyframes: TimelineEditCallbacks["onDeleteAllKeyframes"];
+  onChangeKeyframeEase: TimelineEditCallbacks["onChangeKeyframeEase"];
+  onMoveKeyframeToPlayhead: TimelineEditCallbacks["onMoveKeyframeToPlayhead"];
+  keyframeCache: Map<string, KeyframeCacheEntry>;
+  clipContextMenu: ClipContextMenuState | null;
+  setClipContextMenu: (value: ClipContextMenuState | null) => void;
+  currentTime: number;
+  onSplitElement: TimelineEditCallbacks["onSplitElement"];
+  pinZoomBeforeEdit: () => void;
+  onDeleteElement?: (element: TimelineElement) => Promise<void> | void;
+}
+
+// The timeline's floating overlays, rendered as siblings above the scroll area:
+// the shortcut hint, the range-edit popover, the keyframe-diamond context menu,
+// and the clip context menu.
+export function TimelineOverlays({
+  theme,
+  showShortcutHint,
+  showPopover,
+  rangeSelection,
+  setShowPopover,
+  setRangeSelection,
+  kfContextMenu,
+  setKfContextMenu,
+  onDeleteKeyframe,
+  onDeleteAllKeyframes,
+  onChangeKeyframeEase,
+  onMoveKeyframeToPlayhead,
+  keyframeCache,
+  clipContextMenu,
+  setClipContextMenu,
+  currentTime,
+  onSplitElement,
+  pinZoomBeforeEdit,
+  onDeleteElement,
+}: TimelineOverlaysProps) {
+  return (
+    <>
+      {showShortcutHint && !showPopover && !rangeSelection && (
+        <TimelineShortcutHint theme={theme} />
+      )}
+
+      {showPopover && rangeSelection && (
+        <EditPopover
+          rangeStart={rangeSelection.start}
+          rangeEnd={rangeSelection.end}
+          anchorX={rangeSelection.anchorX}
+          anchorY={rangeSelection.anchorY}
+          onClose={() => {
+            setShowPopover(false);
+            setRangeSelection(null);
+          }}
+        />
+      )}
+
+      {kfContextMenu && (
+        <KeyframeDiamondContextMenu
+          state={kfContextMenu}
+          onClose={() => setKfContextMenu(null)}
+          onDelete={(elId, pct) => onDeleteKeyframe?.(elId, pct)}
+          onDeleteAll={(elId) => onDeleteAllKeyframes?.(elId)}
+          onChangeEase={(elId, pct, ease) => onChangeKeyframeEase?.(elId, pct, ease)}
+          onMoveToPlayhead={
+            onMoveKeyframeToPlayhead
+              ? (elId, pct) => onMoveKeyframeToPlayhead(elId, pct)
+              : undefined
+          }
+          onCopyProperties={(elId, pct) => {
+            const kfData = keyframeCache.get(elId);
+            const kf = kfData?.keyframes.find((k) => k.percentage === pct);
+            if (kf) {
+              void navigator.clipboard.writeText(JSON.stringify(kf.properties, null, 2));
+            }
+          }}
+        />
+      )}
+
+      {clipContextMenu && (
+        <ClipContextMenu
+          x={clipContextMenu.x}
+          y={clipContextMenu.y}
+          element={clipContextMenu.element}
+          currentTime={currentTime}
+          onClose={() => setClipContextMenu(null)}
+          onSplit={(el, time) => onSplitElement?.(el, time)}
+          onDelete={(el) => {
+            pinZoomBeforeEdit();
+            onDeleteElement?.(el);
+          }}
+        />
+      )}
+    </>
+  );
+}
diff --git a/packages/studio/src/player/components/timelineClipChildren.tsx b/packages/studio/src/player/components/timelineClipChildren.tsx
new file mode 100644
index 0000000000..3482fbdc00
--- /dev/null
+++ b/packages/studio/src/player/components/timelineClipChildren.tsx
@@ -0,0 +1,39 @@
+import { type ReactNode } from "react";
+import { usePlayerStore, type TimelineElement } from "../store/playerStore";
+import type { TrackVisualStyle } from "./timelineIcons";
+
+function ClipLintDot({ element }: { element: TimelineElement }) {
+  const lint = usePlayerStore((s) => s.lintFindingsByElement.get(element.key ?? element.id));
+  if (!lint || lint.count === 0) return null;
+  return (
+    <span
+      className="absolute w-1.5 h-1.5 rounded-full bg-amber-400"
+      style={{ top: 7, right: 7 }}
+      title={lint.messages.join("\n")}
+    />
+  );
+}
+
+export function renderClipChildren(
+  element: TimelineElement,
+  clipStyle: TrackVisualStyle,
+  renderClipContent:
+    | ((element: TimelineElement, style: { clip: string; label: string }) => ReactNode)
+    | undefined,
+  renderClipOverlay: ((element: TimelineElement) => ReactNode) | undefined,
+): ReactNode {
+  return (
+    <>
+      {renderClipOverlay?.(element)}
+      {!renderClipContent && <ClipLintDot element={element} />}
+      {renderClipContent && (
+        // borderRadius: inherit — the clip itself is overflow-visible (keyframe
+        // diamonds hang outside its bounds), so the thumbnail layer must clip
+        // itself to the clip's rounded corners or sharp corners poke out.
+        <div className="absolute inset-0 overflow-hidden" style={{ borderRadius: "inherit" }}>
+          {renderClipContent(element, clipStyle)}
+        </div>
+      )}
+    </>
+  );
+}
diff --git a/packages/studio/src/player/components/timelineClipDragTypes.ts b/packages/studio/src/player/components/timelineClipDragTypes.ts
new file mode 100644
index 0000000000..8ac36c9a68
--- /dev/null
+++ b/packages/studio/src/player/components/timelineClipDragTypes.ts
@@ -0,0 +1,65 @@
+import type { TimelineElement } from "../store/playerStore";
+import type { TimelineSnapType } from "./timelineSnapping";
+import type { BlockedTimelineEditIntent } from "./timelineEditing";
+
+/* ── Shared clip-drag state types ───────────────────────────────── */
+export interface DraggedClipState {
+  element: TimelineElement;
+  originClientX: number;
+  originClientY: number;
+  originScrollLeft: number;
+  originScrollTop: number;
+  pointerClientX: number;
+  pointerClientY: number;
+  pointerOffsetX: number;
+  pointerOffsetY: number;
+  previewStart: number;
+  previewTrack: number;
+  /**
+   * The lane the POINTER aims at (from the drag's vertical position), before
+   * collision resolution. `previewTrack` is where the clip actually LANDS —
+   * which may differ from `desiredTrack` when the aimed span is occupied and the
+   * collision rules bump the dragged clip to a free lane. The commit reads this
+   * to tell a deliberate VERTICAL lane change (pointer aimed at another lane →
+   * stacking sync allowed) from a plain HORIZONTAL drag whose clip merely got
+   * bumped sideways (never touches z). Optional: when absent the commit falls
+   * back to `previewTrack` (pre-existing behaviour).
+   */
+  desiredTrack?: number;
+  /**
+   * When non-null, the drop inserts a NEW track at this visual row boundary
+   * (0 = above the top lane, trackOrder.length = below the bottom) instead of
+   * landing on previewTrack. Drives the insertion-line indicator.
+   */
+  insertRow: number | null;
+  /** Snap target the clip will land on, for the guide highlight. */
+  snapTime: number | null;
+  snapType: TimelineSnapType | null;
+  started: boolean;
+}
+
+export interface ResizingClipState {
+  element: TimelineElement;
+  edge: "start" | "end";
+  originClientX: number;
+  /**
+   * scrollLeft at gesture start. Edge auto-scroll moves the content under a
+   * stationary pointer, so the trim math folds (current − origin) scrollLeft
+   * into the pointer x — mirroring resolveTimelineMove's scroll compensation.
+   * Optional so pre-existing constructors/tests stay valid; when absent the
+   * first preview update captures the current scrollLeft.
+   */
+  originScrollLeft?: number;
+  previewStart: number;
+  previewDuration: number;
+  previewPlaybackStart?: number;
+  started: boolean;
+}
+
+export interface BlockedClipState {
+  element: TimelineElement;
+  intent: BlockedTimelineEditIntent;
+  originClientX: number;
+  originClientY: number;
+  started: boolean;
+}
diff --git a/packages/studio/src/player/hooks/useTimelinePlayerLoop.ts b/packages/studio/src/player/hooks/useTimelinePlayerLoop.ts
new file mode 100644
index 0000000000..bda3d50601
--- /dev/null
+++ b/packages/studio/src/player/hooks/useTimelinePlayerLoop.ts
@@ -0,0 +1,85 @@
+/**
+ * The forward playback loop for the timeline player.
+ *
+ * Owns the three requestAnimationFrame lifecycle callbacks that drive (and stop)
+ * playback:
+ *  - startRAFLoop     — the forward tick: advance liveTime, honour in/out loop
+ *                       points + loopEnabled, and pause + sync the store at the end.
+ *  - stopRAFLoop      — cancel the forward tick.
+ *  - stopReverseLoop  — cancel the reverse-shuttle tick (owned by the parent hook).
+ *
+ * Called unconditionally at the top level of useTimelinePlayer so its useCallback
+ * hooks run in a stable order; every dependency is passed in as an argument.
+ */
+
+import { useCallback } from "react";
+import { liveTime, usePlayerStore } from "../store/playerStore";
+import type { PlaybackAdapter } from "../lib/playbackTypes";
+
+interface UseTimelinePlayerLoopParams {
+  rafRef: React.MutableRefObject<number>;
+  reverseRafRef: React.MutableRefObject<number>;
+  getAdapter: () => PlaybackAdapter | null;
+  setCurrentTime: (v: number) => void;
+  setIsPlaying: (v: boolean) => void;
+}
+
+interface UseTimelinePlayerLoopResult {
+  startRAFLoop: () => void;
+  stopRAFLoop: () => void;
+  stopReverseLoop: () => void;
+}
+
+export function useTimelinePlayerLoop({
+  rafRef,
+  reverseRafRef,
+  getAdapter,
+  setCurrentTime,
+  setIsPlaying,
+}: UseTimelinePlayerLoopParams): UseTimelinePlayerLoopResult {
+  const stopReverseLoop = useCallback(() => {
+    cancelAnimationFrame(reverseRafRef.current);
+  }, [reverseRafRef]);
+
+  const startRAFLoop = useCallback(() => {
+    // fallow-ignore-next-line complexity
+    const tick = () => {
+      const adapter = getAdapter();
+      if (adapter) {
+        const rawTime = adapter.getTime();
+        const dur = adapter.getDuration();
+        const time = dur > 0 ? Math.min(rawTime, dur) : rawTime;
+        liveTime.notify(time); // direct DOM updates, no React re-render
+        const { inPoint, outPoint } = usePlayerStore.getState();
+        const rawLoopEnd = outPoint !== null ? Math.min(outPoint, dur) : dur;
+        const rawLoopStart = inPoint !== null ? inPoint : 0;
+        const loopEnd = rawLoopStart < rawLoopEnd ? rawLoopEnd : dur;
+        const loopStart = rawLoopStart < rawLoopEnd ? rawLoopStart : 0;
+        if (time >= loopEnd) {
+          if (usePlayerStore.getState().loopEnabled && dur > 0) {
+            // keepPlaying skips the adapter's implicit pause; play() below is then a no-op.
+            adapter.seek(loopStart, { keepPlaying: true });
+            liveTime.notify(loopStart);
+            adapter.play();
+            setIsPlaying(true);
+            rafRef.current = requestAnimationFrame(tick);
+            return;
+          }
+          if (adapter.isPlaying()) adapter.pause();
+          setCurrentTime(time); // sync Zustand once at end
+          setIsPlaying(false);
+          cancelAnimationFrame(rafRef.current);
+          return;
+        }
+      }
+      rafRef.current = requestAnimationFrame(tick);
+    };
+    rafRef.current = requestAnimationFrame(tick);
+  }, [rafRef, getAdapter, setCurrentTime, setIsPlaying]);
+
+  const stopRAFLoop = useCallback(() => {
+    cancelAnimationFrame(rafRef.current);
+  }, [rafRef]);
+
+  return { startRAFLoop, stopRAFLoop, stopReverseLoop };
+}
diff --git a/packages/studio/src/utils/assetPreviewStore.ts b/packages/studio/src/utils/assetPreviewStore.ts
new file mode 100644
index 0000000000..44e807bc54
--- /dev/null
+++ b/packages/studio/src/utils/assetPreviewStore.ts
@@ -0,0 +1,33 @@
+/**
+ * Tiny Zustand slice that carries the "asset preview overlay" state.
+ *
+ * When a user clicks an asset card that has NOT yet been added to the
+ * timeline the overlay fires up: a dark scrim + centered media element
+ * (img / video / audio) + filename label rendered inside PreviewPane.
+ *
+ * State lives here so AssetsTab (sidebar) and PreviewPane (preview column)
+ * can communicate without prop-drilling through the multi-layer EditorShell
+ * tree. The store is project-scoped: NLEProvider (NLEContext.tsx) clears it
+ * whenever `projectId` changes, so a preview opened in one project can't
+ * bleed into another (the overlay itself stays mounted across project
+ * switches — EditorShell isn't keyed by projectId).
+ */
+import { create } from "zustand";
+
+interface AssetPreviewState {
+  /** Project-relative asset path currently being previewed, or null. */
+  previewAsset: string | null;
+  /** projectId for which the preview was opened (used to build the serve URL). */
+  previewProjectId: string | null;
+  /** Open a media preview for the given asset. */
+  setPreviewAsset: (asset: string, projectId: string) => void;
+  /** Close the preview overlay. */
+  clearPreviewAsset: () => void;
+}
+
+export const useAssetPreviewStore = create<AssetPreviewState>((set) => ({
+  previewAsset: null,
+  previewProjectId: null,
+  setPreviewAsset: (asset, projectId) => set({ previewAsset: asset, previewProjectId: projectId }),
+  clearPreviewAsset: () => set({ previewAsset: null, previewProjectId: null }),
+}));