diff --git a/kitty/fast_data_types.pyi b/kitty/fast_data_types.pyi
index 4741f2207..1123cf91b 100644
--- a/kitty/fast_data_types.pyi
+++ b/kitty/fast_data_types.pyi
@@ -526,7 +526,7 @@ def monitor_pid(pid: int) -> None:
     pass
 
 
-def add_window(os_window_id: int, tab_id: int, title: str) -> int:
+def add_window(os_window_id: int, tab_id: int, title: str, is_floating: bool) -> int:
     pass
 
 
diff --git a/kitty/launch.py b/kitty/launch.py
index a60f73388..aacc099c6 100644
--- a/kitty/launch.py
+++ b/kitty/launch.py
@@ -16,7 +16,7 @@ from .clipboard import set_clipboard_string, set_primary_selection
 from .fast_data_types import add_timer, get_boss, get_options, get_os_window_title, patch_color_profiles
 from .options.utils import env as parse_env
 from .tabs import Tab, TabManager
-from .types import LayerShellConfig, OverlayType, run_once
+from .types import FloatType, LayerShellConfig, OverlayType, run_once
 from .utils import get_editor, log_error, resolve_custom_file, which
 from .window import CwdRequest, CwdRequestType, Watchers, Window
 
@@ -81,7 +81,7 @@ of the active window in the tab is used as the tab title. The special value
 --type
 type=choices
 default=window
-choices=window,tab,os-window,os-panel,overlay,overlay-main,background,clipboard,primary
+choices=window,tab,os-window,os-panel,overlay,overlay-main,float-in-window,float-in-tab,background,clipboard,primary
 Where to launch the child process:
 
 :code:`window`
@@ -105,6 +105,14 @@ Where to launch the child process:
     directory, the input text for kittens, launch commands, etc. Useful if this overlay is
     intended to run for a long time as a primary window.
 
+:code:`float-in-window`
+    A floating window that is drawn over a non-floating window, usually the currently
+    active window.
+
+:code:`float-in-tab`
+    A floating window that is drawn over all windows in a tab, usually the currently
+    active tab.
+
 :code:`background`
     The process will be run in the :italic:`background`, without a kitty
     window. Note that if :option:`kitten @ launch --allow-remote-control` is
@@ -753,8 +761,9 @@ def _launch(
             tab = tab_for_window(boss, opts, target_tab, next_to)
         watchers = load_watch_modules(opts.watcher)
         with Window.set_ignore_focus_changes_for_new_windows(opts.keep_focus):
+            float_type = {'float-in-window': FloatType.window, 'float-in-tab': FloatType.tab}.get(opts.type, FloatType.none)
             new_window: Window = tab.new_window(
-                env=env or None, watchers=watchers or None, is_clone_launch=is_clone_launch, next_to=next_to, **kw)
+                env=env or None, watchers=watchers or None, is_clone_launch=is_clone_launch, next_to=next_to, float_type=float_type, **kw)
             if child_death_callback is not None:
                 boss.monitor_pid(new_window.child.pid or 0, child_death_callback)
         if spacing:
diff --git a/kitty/layout/base.py b/kitty/layout/base.py
index 3493e7f1c..df177f694 100644
--- a/kitty/layout/base.py
+++ b/kitty/layout/base.py
@@ -341,14 +341,14 @@ class Layout:
         return False
 
     def update_visibility(self, all_windows: WindowList) -> None:
-        active_window = all_windows.active_window
+        active_non_floating_window = all_windows.active_non_floating_window
         floating_windows = []
         vismap = {}
         for window, is_group_leader, is_floating in all_windows.iter_windows_with_visibility():
             if is_floating:
                 floating_windows.append((window, is_group_leader))
             else:
-                is_visible = window is active_window or (is_group_leader and not self.only_active_window_visible)
+                is_visible = window is active_non_floating_window or (is_group_leader and not self.only_active_window_visible)
                 window.set_visible_in_layout(is_visible)
                 vismap[window.id] = is_visible
         for window, is_group_leader in sorted(floating_windows, key=lambda x: x[0].id):
diff --git a/kitty/shaders.c b/kitty/shaders.c
index f6c58b567..4ab037b8f 100644
--- a/kitty/shaders.c
+++ b/kitty/shaders.c
@@ -1134,7 +1134,7 @@ draw_cells(ssize_t vao_idx, const WindowRenderData *srd, OSWindow *os_window, bo
     }
     bool use_premult = false;
     has_underlying_image |= grd.num_of_below_refs > 0 || grd.num_of_negative_refs > 0;
-    if (os_window->is_semi_transparent) {
+    if (os_window->is_semi_transparent || srd->float_data.is_floating) {
         if (has_underlying_image) { draw_cells_interleaved_premult(vao_idx, screen, os_window, &crd, grd, wl); use_premult = true; }
         else draw_cells_simple(vao_idx, screen, &crd, grd, os_window->is_semi_transparent);
     } else {
diff --git a/kitty/state.c b/kitty/state.c
index ece1296f3..5832db606 100644
--- a/kitty/state.c
+++ b/kitty/state.c
@@ -7,6 +7,7 @@
 
 #include "cleanup.h"
 #include "options/to-c-generated.h"
+#include "iqsort.h"
 #include <math.h>
 #include <sys/mman.h>
 
@@ -288,10 +289,11 @@ set_window_logo(Window *w, const char *path, const ImageAnchorPosition pos, floa
 }
 
 static void
-initialize_window(Window *w, PyObject *title, bool init_gpu_resources) {
+initialize_window(Window *w, PyObject *title, bool init_gpu_resources, bool is_floating) {
     w->id = ++global_state.window_id_counter;
     w->visible = true;
     w->title = title;
+    w->render_data.float_data.is_floating = is_floating;
     Py_XINCREF(title);
     if (!set_window_logo(w, OPT(default_window_logo), OPT(window_logo_position), OPT(window_logo_alpha), true, NULL, 0)) {
         log_error("Failed to load default window logo: %s", OPT(default_window_logo));
@@ -303,14 +305,23 @@ initialize_window(Window *w, PyObject *title, bool init_gpu_resources) {
     }
 }
 
+static void
+sort_windows_in_render_order(Window *windows, size_t count) {
+#define lt(a, b) (!a->render_data.float_data.is_floating && b->render_data.float_data.is_floating) || (a->render_data.float_data.is_floating == b->render_data.float_data.is_floating && a->id < b->id)
+    QSORT(Window, windows, count, lt)
+#undef lt
+}
+
 static id_type
-add_window(id_type os_window_id, id_type tab_id, PyObject *title) {
+add_window(id_type os_window_id, id_type tab_id, PyObject *title, bool is_floating) {
     WITH_TAB(os_window_id, tab_id);
         ensure_space_for(tab, windows, Window, tab->num_windows + 1, capacity, 1, true);
         make_os_window_context_current(osw);
         zero_at_i(tab->windows, tab->num_windows);
-        initialize_window(tab->windows + tab->num_windows, title, true);
-        return tab->windows[tab->num_windows++].id;
+        initialize_window(tab->windows + tab->num_windows, title, true, is_floating);
+        Window *ans = tab->windows + tab->num_windows++;
+        sort_windows_in_render_order(tab->windows, tab->num_windows);
+        return ans->id;
     END_WITH_TAB;
     return 0;
 }
@@ -1290,13 +1301,14 @@ static PyObject*
 pycreate_mock_window(PyObject *self UNUSED, PyObject *args) {
     Screen *screen;
     PyObject *title = NULL;
-    if (!PyArg_ParseTuple(args, "O|U", &screen, &title)) return NULL;
+    int is_floating = 0;
+    if (!PyArg_ParseTuple(args, "O|Up", &screen, &title, &is_floating)) return NULL;
     Window *w = PyMem_Calloc(sizeof(Window), 1);
     if (!w) return NULL;
     Py_INCREF(screen);
     PyObject *ans = PyCapsule_New(w, "Window", destroy_mock_window);
     if (ans != NULL) {
-        initialize_window(w, title, false);
+        initialize_window(w, title, false, is_floating);
         w->render_data.screen = screen;
     }
     return ans;
@@ -1404,7 +1416,11 @@ THREE_ID(remove_window)
 THREE_ID(detach_window)
 THREE_ID(attach_window)
 PYWRAP1(add_tab) { return PyLong_FromUnsignedLongLong(add_tab(PyLong_AsUnsignedLongLong(args))); }
-PYWRAP1(add_window) { PyObject *title; id_type a, b; PA("KKO", &a, &b, &title); return PyLong_FromUnsignedLongLong(add_window(a, b, title)); }
+PYWRAP1(add_window) {
+    PyObject *title; id_type a, b; int is_floating;
+    PA("KKOp", &a, &b, &title, &is_floating);
+    return PyLong_FromUnsignedLongLong(add_window(a, b, title, is_floating));
+}
 PYWRAP0(current_os_window) { OSWindow *w = current_os_window(); if (!w) Py_RETURN_NONE; return PyLong_FromUnsignedLongLong(w->id); }
 TWO_ID(remove_tab)
 KI(set_active_tab)
diff --git a/kitty/state.h b/kitty/state.h
index 2f7cd25a1..449c39285 100644
--- a/kitty/state.h
+++ b/kitty/state.h
@@ -141,10 +141,15 @@ typedef struct WindowLogoRenderData {
     bool using_default;
 } WindowLogoRenderData;
 
+typedef struct FloatRenderData {
+    bool is_floating;
+} FloatRenderData;
+
 typedef struct {
     ssize_t vao_idx;
     float xstart, ystart, dx, dy;
     Screen *screen;
+    FloatRenderData float_data;
 } WindowRenderData;
 
 typedef struct {
diff --git a/kitty/tabs.py b/kitty/tabs.py
index 2cc95d797..767f605a2 100644
--- a/kitty/tabs.py
+++ b/kitty/tabs.py
@@ -52,7 +52,7 @@ from .layout.base import Layout
 from .layout.interface import create_layout_object_for, evict_cached_layouts
 from .progress import ProgressState
 from .tab_bar import TabBar, TabBarData
-from .types import ac
+from .types import FloatType, ac
 from .typing_compat import EdgeLiteral, SessionTab, SessionType, TypedDict
 from .utils import cmdline_for_hold, log_error, platform_window_id, resolved_shell, shlex_split, which
 from .window import CwdRequest, Watchers, Window, WindowDict
@@ -568,15 +568,21 @@ class Tab:  # {{{
         pass_fds: tuple[int, ...] = (),
         remote_control_fd: int = -1,
         next_to: Window | None = None,
+        float_type: FloatType = FloatType.none,
     ) -> Window:
         child = self.launch_child(
             use_shell=use_shell, cmd=cmd, stdin=stdin, cwd_from=cwd_from, cwd=cwd, env=env,
             is_clone_launch=is_clone_launch, add_listen_on_env_var=False if allow_remote_control and remote_control_passwords else True,
             hold=hold, pass_fds=pass_fds, remote_control_fd=remote_control_fd,
         )
+        floating_in = 0
+        if float_type is FloatType.window:
+            w = next_to or self.active_window
+            if w:
+                floating_in = w.id
         window = Window(
-            self, child, self.args, override_title=override_title,
-            copy_colors_from=copy_colors_from, watchers=watchers,
+            self, child, self.args, override_title=override_title, floating_in_window=floating_in,
+            copy_colors_from=copy_colors_from, watchers=watchers, float_type=float_type,
             allow_remote_control=allow_remote_control, remote_control_passwords=remote_control_passwords
         )
         # Must add child before laying out so that resize_pty succeeds
diff --git a/kitty/window.py b/kitty/window.py
index a4e7b0ff5..f3adad808 100644
--- a/kitty/window.py
+++ b/kitty/window.py
@@ -663,7 +663,7 @@ class Window:
         self.child_title = self.default_title
         self.title_stack: Deque[str] = deque(maxlen=10)
         self.user_vars: dict[str, str] = {}
-        self.id: int = add_window(tab.os_window_id, tab.id, self.title)
+        self.id: int = add_window(tab.os_window_id, tab.id, self.title, self.is_floating)
         self.clipboard_request_manager = ClipboardRequestManager(self.id)
         self.margin = EdgeWidths()
         self.padding = EdgeWidths()
diff --git a/kitty/window_list.py b/kitty/window_list.py
index c92793898..b7328e376 100644
--- a/kitty/window_list.py
+++ b/kitty/window_list.py
@@ -9,7 +9,7 @@ from itertools import count
 from typing import Any, Deque, Union
 
 from .fast_data_types import Color, get_options
-from .types import OverlayType, WindowGeometry
+from .types import FloatType, OverlayType, WindowGeometry
 from .typing_compat import EdgeLiteral, TabType, WindowType
 
 WindowOrId = Union[WindowType, int]
@@ -333,6 +333,31 @@ class WindowList:
             return self.id_map[self.groups[self.active_group_idx].active_window_id]
         return None
 
+    @property
+    def active_non_floating_window(self) -> WindowType | None:
+        w = self.active_window
+        if w is None:
+            return None
+        if not w.is_floating:
+            return w
+        if w.float_type is FloatType.window:
+            parent = self.id_map.get(w.floating_in_window)
+            if parent is not None:
+                g = self.group_for_window(parent)
+                if g is not None:
+                    ans = self.id_map.get(g.active_window_id)
+                    if ans is not None:
+                        return ans
+        # tab or os window float or parent window closed
+        gid_map = {g.id: g for g in self.groups}
+        for gid in reversed(self.active_group_history):
+            g = gid_map.get(gid)
+            if g is not None:
+                w = self.id_map.get(g.active_window_id)
+                if w is not None and not w.is_floating:
+                    return w
+        return None
+
     @property
     def active_group_main(self) -> WindowType | None:
         with suppress(Exception):