diff --git a/assets/voxygen/voxel/object/pouch.vox b/assets/voxygen/voxel/object/pouch.vox
new file mode 100644
index 0000000000..4f863db0a9
--- /dev/null
+++ b/assets/voxygen/voxel/object/pouch.vox
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:41c5c4dacb7050121ce597d73957976e7476630e0078c2d9536fe179855b8edf
+size 58277
diff --git a/client/src/lib.rs b/client/src/lib.rs
index 70da461859..a296cb567b 100644
--- a/client/src/lib.rs
+++ b/client/src/lib.rs
@@ -4,14 +4,13 @@ pub mod error;
 
 // Reexports
 pub use crate::error::Error;
-pub use specs::join::Join;
-pub use specs::Entity as EcsEntity;
+pub use specs::{join::Join, saveload::Marker, Entity as EcsEntity, ReadStorage};
 
 use common::{
     comp,
     msg::{ClientMsg, ClientState, ServerError, ServerInfo, ServerMsg},
     net::PostBox,
-    state::State,
+    state::{State, Uid},
     terrain::{block::Block, chonk::ChonkMetrics, TerrainChunk, TerrainChunkSize},
     vol::VolSize,
     ChatType,
@@ -165,6 +164,21 @@ impl Client {
             .send_message(ClientMsg::SetViewDistance(self.view_distance.unwrap())); // Can't fail
     }
 
+    pub fn swap_inventory_slots(&mut self, a: usize, b: usize) {
+        self.postbox
+            .send_message(ClientMsg::SwapInventorySlots(a, b))
+    }
+
+    pub fn drop_inventory_slot(&mut self, x: usize) {
+        self.postbox.send_message(ClientMsg::DropInventorySlot(x))
+    }
+
+    pub fn pick_up(&mut self, entity: EcsEntity) {
+        if let Some(uid) = self.state.ecs().read_storage::<Uid>().get(entity).copied() {
+            self.postbox.send_message(ClientMsg::PickUp(uid.id()));
+        }
+    }
+
     pub fn view_distance(&self) -> Option<u32> {
         self.view_distance
     }
@@ -188,6 +202,10 @@ impl Client {
         self.state.terrain().get_key_arc(chunk_pos).cloned()
     }
 
+    pub fn inventories(&self) -> ReadStorage<comp::Inventory> {
+        self.state.read_storage()
+    }
+
     /// Send a chat message to the server.
     #[allow(dead_code)]
     pub fn send_chat(&mut self, msg: String) {
@@ -421,6 +439,9 @@ impl Client {
                             self.state.write_component(entity, action_state);
                         }
                     }
+                    ServerMsg::InventoryUpdate(inventory) => {
+                        self.state.write_component(self.entity, inventory)
+                    }
                     ServerMsg::TerrainChunkUpdate { key, chunk } => {
                         self.state.insert_chunk(key, *chunk);
                         self.pending_chunks.remove(&key);
diff --git a/common/src/comp/body/object.rs b/common/src/comp/body/object.rs
index f45cea9d2e..0bd17f3fe7 100644
--- a/common/src/comp/body/object.rs
+++ b/common/src/comp/body/object.rs
@@ -48,6 +48,7 @@ pub enum Body {
     CarpetHumanSquare,
     CarpetHumanSquare2,
     CarpetHumanSquircle,
+    Pouch,
 }
 
 impl Body {
diff --git a/common/src/comp/inventory/item.rs b/common/src/comp/inventory/item.rs
index faca9b5b57..f8a38794ef 100644
--- a/common/src/comp/inventory/item.rs
+++ b/common/src/comp/inventory/item.rs
@@ -1,8 +1,8 @@
-use specs::Component;
+use specs::{Component, FlaggedStorage};
 use specs_idvs::IDVStorage;
 
 #[derive(Copy, Clone, Debug, PartialEq, Eq, Hash, Serialize, Deserialize)]
-pub enum Weapon {
+pub enum Tool {
     Daggers,
     SwordShield,
     Sword,
@@ -11,14 +11,29 @@ pub enum Weapon {
     Bow,
     Staff,
 }
-pub const ALL_WEAPONS: [Weapon; 7] = [
-    Weapon::Daggers,
-    Weapon::SwordShield,
-    Weapon::Sword,
-    Weapon::Axe,
-    Weapon::Hammer,
-    Weapon::Bow,
-    Weapon::Staff,
+
+impl Tool {
+    pub fn name(&self) -> &'static str {
+        match self {
+            Tool::Daggers => "daggers",
+            Tool::SwordShield => "sword and shield",
+            Tool::Sword => "sword",
+            Tool::Axe => "axe",
+            Tool::Hammer => "hammer",
+            Tool::Bow => "bow",
+            Tool::Staff => "staff",
+        }
+    }
+}
+
+pub const ALL_TOOLS: [Tool; 7] = [
+    Tool::Daggers,
+    Tool::SwordShield,
+    Tool::Sword,
+    Tool::Axe,
+    Tool::Hammer,
+    Tool::Bow,
+    Tool::Staff,
 ];
 
 #[derive(Copy, Clone, Debug, PartialEq, Eq, Hash, Serialize, Deserialize)]
@@ -37,29 +52,82 @@ pub enum Armor {
     Necklace,
 }
 
+impl Armor {
+    pub fn name(&self) -> &'static str {
+        match self {
+            Armor::Helmet => "helmet",
+            Armor::Shoulders => "shoulder pads",
+            Armor::Chestplate => "chestplate",
+            Armor::Belt => "belt",
+            Armor::Gloves => "gloves",
+            Armor::Pants => "pants",
+            Armor::Boots => "boots",
+            Armor::Back => "back",
+            Armor::Tabard => "tabard",
+            Armor::Gem => "gem",
+            Armor::Necklace => "necklace",
+        }
+    }
+}
+
 #[derive(Copy, Clone, Debug, PartialEq, Eq, Hash, Serialize, Deserialize)]
-pub enum Rarity {
-    Common,
-    Uncommon,
-    Rare,
-    Legendary,
+pub enum ConsumptionEffect {
+    Health(i32),
+    Xp(i32),
 }
 
 #[derive(Copy, Clone, Debug, PartialEq, Eq, Hash, Serialize, Deserialize)]
 pub enum Item {
-    Weapon {
+    Tool {
+        kind: Tool,
         damage: i32,
         strength: i32,
-        rarity: Rarity,
     },
     Armor {
+        kind: Armor,
         defense: i32,
         health_bonus: i32,
-        rarity: Rarity,
-        variant: Armor,
     },
+    Consumable {
+        effect: ConsumptionEffect,
+    },
+    Ingredient,
+}
+
+impl Item {
+    pub fn name(&self) -> &'static str {
+        match self {
+            Item::Tool { kind, .. } => kind.name(),
+            Item::Armor { kind, .. } => kind.name(),
+            Item::Consumable { .. } => "<consumable>",
+            Item::Ingredient => "<ingredient>",
+        }
+    }
+
+    pub fn category(&self) -> &'static str {
+        match self {
+            Item::Tool { .. } => "tool",
+            Item::Armor { .. } => "armour",
+            Item::Consumable { .. } => "consumable",
+            Item::Ingredient => "ingredient",
+        }
+    }
+
+    pub fn description(&self) -> String {
+        format!("{} ({})", self.name(), self.category())
+    }
+}
+
+impl Default for Item {
+    fn default() -> Self {
+        Item::Tool {
+            kind: Tool::Hammer,
+            damage: 0,
+            strength: 0,
+        }
+    }
 }
 
 impl Component for Item {
-    type Storage = IDVStorage<Self>;
+    type Storage = FlaggedStorage<Self, IDVStorage<Self>>;
 }
diff --git a/common/src/comp/inventory/mod.rs b/common/src/comp/inventory/mod.rs
index 7843684e18..598e2f681f 100644
--- a/common/src/comp/inventory/mod.rs
+++ b/common/src/comp/inventory/mod.rs
@@ -1,11 +1,11 @@
-use specs::{Component, HashMapStorage};
-use specs_idvs::IDVStorage;
-
 //Re-Exports
 pub mod item;
 
-use item::Item;
-use std::mem::swap;
+// Reexports
+pub use self::item::Item;
+
+use specs::{Component, HashMapStorage, NullStorage};
+use specs_idvs::IDVStorage;
 
 #[derive(Clone, Debug, PartialEq, Eq, Hash, Serialize, Deserialize)]
 pub struct Inventory {
@@ -13,9 +13,21 @@ pub struct Inventory {
 }
 
 impl Inventory {
-    pub fn new() -> Inventory {
-        Inventory {
-            slots: vec![None; 24],
+    pub fn slots(&self) -> &[Option<Item>] {
+        &self.slots
+    }
+
+    pub fn len(&self) -> usize {
+        self.slots.len()
+    }
+
+    pub fn insert(&mut self, item: Item) -> Option<Item> {
+        match self.slots.iter_mut().find(|slot| slot.is_none()) {
+            Some(slot) => {
+                *slot = Some(item);
+                None
+            }
+            None => Some(item),
         }
     }
 
@@ -30,18 +42,40 @@ impl Inventory {
         self.slots.get_mut(cell).and_then(|cell| cell.replace(item))
     }
 
-    // Remove an item from the slot
-    pub fn remove(&mut self, cell: usize, item: Item) -> Option<Item> {
-        let mut tmp_item = Some(item);
+    pub fn swap_slots(&mut self, a: usize, b: usize) {
+        if a.max(b) < self.slots.len() {
+            self.slots.swap(a, b);
+        }
+    }
 
-        if let Some(old_item) = self.slots.get_mut(cell) {
-            swap(old_item, &mut tmp_item);
+    // Remove an item from the slot
+    pub fn remove(&mut self, cell: usize) -> Option<Item> {
+        self.slots.get_mut(cell).and_then(|item| item.take())
+    }
+}
+
+impl Default for Inventory {
+    fn default() -> Inventory {
+        let mut this = Inventory {
+            slots: vec![None; 24],
+        };
+
+        for _ in 0..18 {
+            this.insert(Item::default());
         }
 
-        tmp_item
+        this
     }
 }
 
 impl Component for Inventory {
     type Storage = HashMapStorage<Self>;
 }
+
+// ForceUpdate
+#[derive(Copy, Clone, Debug, Default, Serialize, Deserialize)]
+pub struct InventoryUpdate;
+
+impl Component for InventoryUpdate {
+    type Storage = NullStorage<Self>;
+}
diff --git a/common/src/comp/mod.rs b/common/src/comp/mod.rs
index 86a948dd21..65ce76c53f 100644
--- a/common/src/comp/mod.rs
+++ b/common/src/comp/mod.rs
@@ -20,7 +20,7 @@ pub use controller::Controller;
 pub use inputs::{
     Attacking, CanBuild, Gliding, Jumping, MoveDir, OnGround, Respawning, Rolling, Wielding,
 };
-pub use inventory::{item, Inventory};
+pub use inventory::{item, Inventory, InventoryUpdate, Item};
 pub use last::Last;
 pub use phys::{ForceUpdate, Ori, Pos, Vel};
 pub use player::Player;
diff --git a/common/src/comp/phys.rs b/common/src/comp/phys.rs
index 46144c8977..977f85f21d 100644
--- a/common/src/comp/phys.rs
+++ b/common/src/comp/phys.rs
@@ -3,7 +3,7 @@ use specs_idvs::IDVStorage;
 use vek::*;
 
 // Position
-#[derive(Copy, Clone, Debug, PartialEq, Serialize, Deserialize)]
+#[derive(Copy, Clone, Default, Debug, PartialEq, Serialize, Deserialize)]
 pub struct Pos(pub Vec3<f32>);
 
 impl Component for Pos {
@@ -11,7 +11,7 @@ impl Component for Pos {
 }
 
 // Velocity
-#[derive(Copy, Clone, Debug, PartialEq, Serialize, Deserialize)]
+#[derive(Copy, Clone, Default, Debug, PartialEq, Serialize, Deserialize)]
 pub struct Vel(pub Vec3<f32>);
 
 impl Component for Vel {
@@ -19,7 +19,7 @@ impl Component for Vel {
 }
 
 // Orientation
-#[derive(Copy, Clone, Debug, PartialEq, Serialize, Deserialize)]
+#[derive(Copy, Clone, Default, Debug, PartialEq, Serialize, Deserialize)]
 pub struct Ori(pub Vec3<f32>);
 
 impl Component for Ori {
diff --git a/common/src/msg/client.rs b/common/src/msg/client.rs
index 6f3919159b..cc325415d8 100644
--- a/common/src/msg/client.rs
+++ b/common/src/msg/client.rs
@@ -28,6 +28,9 @@ pub enum ClientMsg {
         vel: comp::Vel,
         ori: comp::Ori,
     },
+    SwapInventorySlots(usize, usize),
+    DropInventorySlot(usize),
+    PickUp(u64),
     TerrainChunkRequest {
         key: Vec2<i32>,
     },
diff --git a/common/src/msg/ecs_packet.rs b/common/src/msg/ecs_packet.rs
index b2f3d8bbbe..56bf63c68a 100644
--- a/common/src/msg/ecs_packet.rs
+++ b/common/src/msg/ecs_packet.rs
@@ -25,6 +25,7 @@ sphynx::sum_type! {
         CanBuild(comp::CanBuild),
         Stats(comp::Stats),
         LightEmitter(comp::LightEmitter),
+        Item(comp::Item),
     }
 }
 // Automatically derive From<T> for EcsCompPhantom
@@ -40,6 +41,7 @@ sphynx::sum_type! {
         CanBuild(PhantomData<comp::CanBuild>),
         Stats(PhantomData<comp::Stats>),
         LightEmitter(PhantomData<comp::LightEmitter>),
+        Item(PhantomData<comp::Item>),
     }
 }
 impl sphynx::CompPacket for EcsCompPacket {
diff --git a/common/src/msg/server.rs b/common/src/msg/server.rs
index 26a0f4f248..8686e6f089 100644
--- a/common/src/msg/server.rs
+++ b/common/src/msg/server.rs
@@ -55,6 +55,7 @@ pub enum ServerMsg {
         entity: u64,
         action_state: comp::ActionState,
     },
+    InventoryUpdate(comp::Inventory),
     TerrainChunkUpdate {
         key: Vec2<i32>,
         chunk: Box<TerrainChunk>,
diff --git a/common/src/state.rs b/common/src/state.rs
index 9269d6e101..ee8bcb7d2e 100644
--- a/common/src/state.rs
+++ b/common/src/state.rs
@@ -131,6 +131,7 @@ impl State {
         ecs.register_synced::<comp::Stats>();
         ecs.register_synced::<comp::CanBuild>();
         ecs.register_synced::<comp::LightEmitter>();
+        ecs.register_synced::<comp::Item>();
 
         // Register components send from clients -> server
         ecs.register::<comp::Controller>();
@@ -142,6 +143,7 @@ impl State {
         ecs.register::<comp::Pos>();
         ecs.register::<comp::Vel>();
         ecs.register::<comp::Ori>();
+        ecs.register::<comp::Inventory>();
 
         // Register client-local components
         ecs.register::<comp::AnimationInfo>();
@@ -156,6 +158,7 @@ impl State {
         ecs.register::<comp::Respawning>();
         ecs.register::<comp::Dying>();
         ecs.register::<comp::ForceUpdate>();
+        ecs.register::<comp::InventoryUpdate>();
         ecs.register::<comp::Inventory>();
         // Controller effects
         ecs.register::<comp::MoveDir>();
diff --git a/common/src/sys/movement.rs b/common/src/sys/movement.rs
index a1744d9fa6..f278655d72 100644
--- a/common/src/sys/movement.rs
+++ b/common/src/sys/movement.rs
@@ -11,7 +11,7 @@ const HUMANOID_ACCEL: f32 = 70.0;
 const HUMANOID_SPEED: f32 = 120.0;
 const HUMANOID_AIR_ACCEL: f32 = 10.0;
 const HUMANOID_AIR_SPEED: f32 = 100.0;
-const HUMANOID_JUMP_ACCEL: f32 = 16.5;
+const HUMANOID_JUMP_ACCEL: f32 = 18.0;
 const ROLL_ACCEL: f32 = 120.0;
 const ROLL_SPEED: f32 = 550.0;
 const GLIDE_ACCEL: f32 = 15.0;
diff --git a/common/src/sys/phys.rs b/common/src/sys/phys.rs
index f196a29f9c..1eaf57693a 100644
--- a/common/src/sys/phys.rs
+++ b/common/src/sys/phys.rs
@@ -16,8 +16,8 @@ const FRIC_AIR: f32 = 0.015;
 // lv = linear velocity
 // damp = linear damping
 // Friction is a type of damping.
-fn integrate_forces(dt: f32, mut lv: Vec3<f32>, damp: f32) -> Vec3<f32> {
-    lv.z = (lv.z - GRAVITY * dt).max(-50.0);
+fn integrate_forces(dt: f32, mut lv: Vec3<f32>, grav: f32, damp: f32) -> Vec3<f32> {
+    lv.z = (lv.z - grav * dt).max(-50.0);
 
     let linear_damp = (1.0 - dt * damp).max(0.0);
 
@@ -63,8 +63,13 @@ impl<'a> System<'a> for Sys {
         {
             // Integrate forces
             // Friction is assumed to be a constant dependent on location
-            let friction = 50.0 * if a.on_ground { FRIC_GROUND } else { FRIC_AIR };
-            vel.0 = integrate_forces(dt.0, vel.0, friction);
+            let friction = 50.0
+                * if on_grounds.get(entity).is_some() {
+                    FRIC_GROUND
+                } else {
+                    FRIC_AIR
+                };
+            vel.0 = integrate_forces(dt.0, vel.0, GRAVITY, friction);
 
             // Basic collision with terrain
             let player_rad = 0.3f32; // half-width of the player's AABB
@@ -126,6 +131,7 @@ impl<'a> System<'a> for Sys {
             let increments = (pos_delta.map(|e| e.abs()).reduce_partial_max() / 0.3)
                 .ceil()
                 .max(1.0);
+            let old_pos = pos.0;
             for _ in 0..increments as usize {
                 pos.0 += pos_delta / increments;
 
@@ -197,12 +203,12 @@ impl<'a> System<'a> for Sys {
                         && -dir.z > 0.1
                         // ...and we're falling/standing OR there is a block *directly* beneath our current origin (note: not hitbox)...
                         && (vel.0.z <= 0.0 || terrain
-                            .get((pos.0 - Vec3::unit_z()).map(|e| e.floor() as i32))
+                            .get((pos.0 - Vec3::unit_z() * 0.1).map(|e| e.floor() as i32))
                             .map(|vox| !vox.is_empty())
                             .unwrap_or(false))
                         // ...and there is a collision with a block beneath our current hitbox...
                         && collision_with(
-                            pos.0 + resolve_dir - Vec3::unit_z() * 1.05,
+                            old_pos + resolve_dir - Vec3::unit_z() * 1.05,
                             near_iter.clone(),
                         )
                     {
diff --git a/server/src/cmd.rs b/server/src/cmd.rs
index 38e34ef03c..93cf4069d7 100644
--- a/server/src/cmd.rs
+++ b/server/src/cmd.rs
@@ -547,7 +547,7 @@ fn handle_object(server: &mut Server, entity: EcsEntity, args: String, _action:
             }
         };
         server
-            .create_object(pos, ori, obj_type)
+            .create_object(pos, obj_type)
             .with(comp::Ori(
                 // converts player orientation into a 90° rotation for the object by using the axis with the highest value
                 ori.0
diff --git a/server/src/lib.rs b/server/src/lib.rs
index b467289571..346099ea9f 100644
--- a/server/src/lib.rs
+++ b/server/src/lib.rs
@@ -23,6 +23,7 @@ use common::{
     vol::Vox,
 };
 use log::debug;
+use rand::Rng;
 use specs::{join::Join, world::EntityBuilder as EcsEntityBuilder, Builder, Entity as EcsEntity};
 use std::{
     collections::HashSet,
@@ -155,14 +156,12 @@ impl Server {
     pub fn create_object(
         &mut self,
         pos: comp::Pos,
-        ori: comp::Ori,
         object: comp::object::Body,
     ) -> EcsEntityBuilder {
         self.state
             .ecs_mut()
             .create_entity_synced()
             .with(pos)
-            .with(ori)
             .with(comp::Vel(Vec3::zero()))
             .with(comp::Ori(Vec3::unit_y()))
             .with(comp::Body::Object(object))
@@ -191,6 +190,8 @@ impl Server {
         state.write_component(entity, comp::Vel(Vec3::zero()));
         state.write_component(entity, comp::Ori(Vec3::unit_y()));
         state.write_component(entity, comp::ActionState::default());
+        state.write_component(entity, comp::Inventory::default());
+        state.write_component(entity, comp::InventoryUpdate);
         // Make sure physics are accepted.
         state.write_component(entity, comp::ForceUpdate);
 
@@ -417,6 +418,7 @@ impl Server {
         let mut disconnected_clients = Vec::new();
         let mut requested_chunks = Vec::new();
         let mut modified_blocks = Vec::new();
+        let mut dropped_items = Vec::new();
 
         self.clients.remove_if(|entity, client| {
             let mut disconnect = false;
@@ -488,6 +490,66 @@ impl Server {
                             }
                             _ => {}
                         },
+                        ClientMsg::SwapInventorySlots(a, b) => {
+                            state
+                                .ecs()
+                                .write_storage::<comp::Inventory>()
+                                .get_mut(entity)
+                                .map(|inv| inv.swap_slots(a, b));
+                            state.write_component(entity, comp::InventoryUpdate);
+                        }
+                        ClientMsg::DropInventorySlot(x) => {
+                            let item = state
+                                .ecs()
+                                .write_storage::<comp::Inventory>()
+                                .get_mut(entity)
+                                .and_then(|inv| inv.remove(x));
+
+                            state.write_component(entity, comp::InventoryUpdate);
+
+                            if let (Some(item), Some(pos)) =
+                                (item, state.ecs().read_storage::<comp::Pos>().get(entity))
+                            {
+                                dropped_items.push((
+                                    *pos,
+                                    state
+                                        .ecs()
+                                        .read_storage::<comp::Ori>()
+                                        .get(entity)
+                                        .copied()
+                                        .unwrap_or(comp::Ori(Vec3::unit_y())),
+                                    item,
+                                ));
+                            }
+                        }
+                        ClientMsg::PickUp(uid) => {
+                            let item_entity = state.ecs_mut().entity_from_uid(uid);
+
+                            let ecs = state.ecs_mut();
+
+                            let item_entity = if let (Some((item, item_entity)), Some(inv)) = (
+                                item_entity.and_then(|item_entity| {
+                                    ecs.write_storage::<comp::Item>()
+                                        .get_mut(item_entity)
+                                        .map(|item| (*item, item_entity))
+                                }),
+                                ecs.write_storage::<comp::Inventory>().get_mut(entity),
+                            ) {
+                                if inv.insert(item).is_none() {
+                                    Some(item_entity)
+                                } else {
+                                    None
+                                }
+                            } else {
+                                None
+                            };
+
+                            if let Some(item_entity) = item_entity {
+                                let _ = ecs.delete_entity_synced(item_entity);
+                            }
+
+                            state.write_component(entity, comp::InventoryUpdate);
+                        }
                         ClientMsg::Character { name, body } => match client.client_state {
                             // Become Registered first.
                             ClientState::Connected => {
@@ -664,6 +726,17 @@ impl Server {
             self.state.set_block(pos, block);
         }
 
+        for (pos, ori, item) in dropped_items {
+            let vel = ori.0.normalized() * 5.0
+                + Vec3::unit_z() * 10.0
+                + Vec3::<f32>::zero().map(|_| rand::thread_rng().gen::<f32>() - 0.5) * 4.0;
+            self.create_object(Default::default(), comp::object::Body::Pouch)
+                .with(comp::Pos(pos.0 + Vec3::unit_z() * 0.25))
+                .with(item)
+                .with(comp::Vel(vel))
+                .build();
+        }
+
         Ok(frontend_events)
     }
 
@@ -919,11 +992,27 @@ impl Server {
             }
         }
 
+        // Sync inventories
+        for (entity, inventory, _) in (
+            &self.state.ecs().entities(),
+            &self.state.ecs().read_storage::<comp::Inventory>(),
+            &self.state.ecs().read_storage::<comp::InventoryUpdate>(),
+        )
+            .join()
+        {
+            self.clients
+                .notify(entity, ServerMsg::InventoryUpdate(inventory.clone()));
+        }
+
         // Remove all force flags.
         self.state
             .ecs_mut()
             .write_storage::<comp::ForceUpdate>()
             .clear();
+        self.state
+            .ecs_mut()
+            .write_storage::<comp::InventoryUpdate>()
+            .clear();
     }
 
     pub fn generate_chunk(&mut self, key: Vec2<i32>) {
diff --git a/voxygen/shaders/terrain.frag b/voxygen/shaders/terrain.frag
index 03981a2cb3..75bc338d6f 100644
--- a/voxygen/shaders/terrain.frag
+++ b/voxygen/shaders/terrain.frag
@@ -30,7 +30,7 @@ void main() {
 		f_norm = vec3(0.0, 0.0, 1.0) * norm_dir;
 	}
 
-	vec3 light = (get_sun_diffuse(f_norm, time_of_day.x) + light_at(f_pos, f_norm)) * f_light;
+	vec3 light = get_sun_diffuse(f_norm, time_of_day.x) * f_light + light_at(f_pos, f_norm);
 	vec3 surf_color = f_col * light;
 
 	float fog_level = fog(f_pos.xy, focus_pos.xy);
diff --git a/voxygen/src/anim/character/cidle.rs b/voxygen/src/anim/character/cidle.rs
index 1c7026dacb..c21ce75f9b 100644
--- a/voxygen/src/anim/character/cidle.rs
+++ b/voxygen/src/anim/character/cidle.rs
@@ -2,7 +2,7 @@ use super::{
     super::{Animation, SkeletonAttr},
     CharacterSkeleton,
 };
-use common::comp::item::Weapon;
+use common::comp::item::Tool;
 use std::{f32::consts::PI, ops::Mul};
 use vek::*;
 
@@ -61,9 +61,9 @@ impl Animation for CidleAnimation {
         next.shorts.ori = Quaternion::rotation_x(0.0);
         next.shorts.scale = Vec3::one();
 
-        match Weapon::Hammer {
+        match Tool::Hammer {
             //TODO: Inventory
-            Weapon::Sword => {
+            Tool::Sword => {
                 next.l_hand.offset = Vec3::new(
                     -6.0 + wave_ultra_slow_cos * 1.0,
                     3.5 + wave_ultra_slow_cos * 0.5,
@@ -88,7 +88,7 @@ impl Animation for CidleAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Axe => {
+            Tool::Axe => {
                 next.l_hand.offset = Vec3::new(
                     -6.0 + wave_ultra_slow_cos * 1.0,
                     3.5 + wave_ultra_slow_cos * 0.5,
@@ -113,7 +113,7 @@ impl Animation for CidleAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Hammer => {
+            Tool::Hammer => {
                 next.l_hand.offset = Vec3::new(-7.0, 8.25, 2.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3)
                     * Quaternion::rotation_y(-1.2)
@@ -134,7 +134,7 @@ impl Animation for CidleAnimation {
                     * Quaternion::rotation_z(wave_ultra_slow * 0.2);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Staff => {
+            Tool::Staff => {
                 next.l_hand.offset = Vec3::new(
                     -6.0 + wave_ultra_slow_cos * 1.0,
                     3.5 + wave_ultra_slow_cos * 0.5,
@@ -159,7 +159,7 @@ impl Animation for CidleAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::SwordShield => {
+            Tool::SwordShield => {
                 next.l_hand.offset = Vec3::new(
                     -6.0 + wave_ultra_slow_cos * 1.0,
                     3.5 + wave_ultra_slow_cos * 0.5,
@@ -184,7 +184,7 @@ impl Animation for CidleAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Bow => {
+            Tool::Bow => {
                 next.l_hand.offset = Vec3::new(
                     -6.0 + wave_ultra_slow_cos * 1.0,
                     3.5 + wave_ultra_slow_cos * 0.5,
@@ -209,7 +209,7 @@ impl Animation for CidleAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Daggers => {
+            Tool::Daggers => {
                 next.l_hand.offset = Vec3::new(
                     -6.0 + wave_ultra_slow_cos * 1.0,
                     3.5 + wave_ultra_slow_cos * 0.5,
diff --git a/voxygen/src/anim/character/cjump.rs b/voxygen/src/anim/character/cjump.rs
index d464f40498..33803d7e70 100644
--- a/voxygen/src/anim/character/cjump.rs
+++ b/voxygen/src/anim/character/cjump.rs
@@ -2,7 +2,7 @@ use super::{
     super::{Animation, SkeletonAttr},
     CharacterSkeleton,
 };
-use common::comp::item::Weapon;
+use common::comp::item::Tool;
 use std::f32::consts::PI;
 use vek::*;
 
@@ -43,9 +43,9 @@ impl Animation for CjumpAnimation {
         next.shorts.ori = Quaternion::rotation_z(0.0);
         next.shorts.scale = Vec3::one();
 
-        match Weapon::Hammer {
+        match Tool::Hammer {
             //TODO: Inventory
-            Weapon::Sword => {
+            Tool::Sword => {
                 next.l_hand.offset = Vec3::new(-7.0, 3.25, 0.25 + wave_stop * 2.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -62,7 +62,7 @@ impl Animation for CjumpAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Axe => {
+            Tool::Axe => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -79,7 +79,7 @@ impl Animation for CjumpAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Hammer => {
+            Tool::Hammer => {
                 next.l_hand.offset = Vec3::new(-7.0, 8.25, 2.0 + wave_stop * 2.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3)
                     * Quaternion::rotation_y(-1.2)
@@ -100,7 +100,7 @@ impl Animation for CjumpAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Staff => {
+            Tool::Staff => {
                 next.l_hand.offset = Vec3::new(-7.0, 7.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3)
                     * Quaternion::rotation_y(-1.7)
@@ -121,7 +121,7 @@ impl Animation for CjumpAnimation {
                     * Quaternion::rotation_z(1.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::SwordShield => {
+            Tool::SwordShield => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -138,7 +138,7 @@ impl Animation for CjumpAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Bow => {
+            Tool::Bow => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -155,7 +155,7 @@ impl Animation for CjumpAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Daggers => {
+            Tool::Daggers => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
diff --git a/voxygen/src/anim/character/crun.rs b/voxygen/src/anim/character/crun.rs
index fcb2d617b4..a4c28bf17a 100644
--- a/voxygen/src/anim/character/crun.rs
+++ b/voxygen/src/anim/character/crun.rs
@@ -2,7 +2,7 @@ use super::{
     super::{Animation, SkeletonAttr},
     CharacterSkeleton,
 };
-use common::comp::item::Weapon;
+use common::comp::item::Tool;
 use std::f32::consts::PI;
 use std::ops::Mul;
 use vek::*;
@@ -61,9 +61,9 @@ impl Animation for CrunAnimation {
         next.shorts.ori = Quaternion::rotation_z(wave * 0.6);
         next.shorts.scale = Vec3::one();
 
-        match Weapon::Hammer {
+        match Tool::Hammer {
             //TODO: Inventory
-            Weapon::Sword => {
+            Tool::Sword => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.75, 0.25);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -80,7 +80,7 @@ impl Animation for CrunAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Axe => {
+            Tool::Axe => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -97,7 +97,7 @@ impl Animation for CrunAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Hammer => {
+            Tool::Hammer => {
                 next.l_hand.offset = Vec3::new(-7.0, 8.25, 3.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3)
                     * Quaternion::rotation_y(-1.2)
@@ -118,7 +118,7 @@ impl Animation for CrunAnimation {
                     * Quaternion::rotation_z(wave * -0.25);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Staff => {
+            Tool::Staff => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -135,7 +135,7 @@ impl Animation for CrunAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::SwordShield => {
+            Tool::SwordShield => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -152,7 +152,7 @@ impl Animation for CrunAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Bow => {
+            Tool::Bow => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
@@ -169,7 +169,7 @@ impl Animation for CrunAnimation {
                     * Quaternion::rotation_z(0.0);
                 next.weapon.scale = Vec3::one();
             }
-            Weapon::Daggers => {
+            Tool::Daggers => {
                 next.l_hand.offset = Vec3::new(-6.0, 3.5, 0.0);
                 next.l_hand.ori = Quaternion::rotation_x(-0.3);
                 next.l_hand.scale = Vec3::one() * 1.01;
diff --git a/voxygen/src/anim/mod.rs b/voxygen/src/anim/mod.rs
index 96df4e6cb7..94eb60c25b 100644
--- a/voxygen/src/anim/mod.rs
+++ b/voxygen/src/anim/mod.rs
@@ -5,7 +5,7 @@ pub mod quadruped;
 pub mod quadrupedmedium;
 
 use crate::render::FigureBoneData;
-use common::comp::{self, item::Weapon};
+use common::comp::{self, item::Tool};
 use vek::*;
 
 #[derive(Copy, Clone)]
@@ -145,25 +145,25 @@ impl<'a> From<&'a comp::humanoid::Body> for SkeletonAttr {
                 (Danari, Male) => 0.0,
                 (Danari, Female) => 0.0,
             },
-            weapon_x: match Weapon::Hammer {
+            weapon_x: match Tool::Hammer {
                 // TODO: Inventory
-                Weapon::Sword => 0.0,
-                Weapon::Axe => 3.0,
-                Weapon::Hammer => 0.0,
-                Weapon::SwordShield => 3.0,
-                Weapon::Staff => 3.0,
-                Weapon::Bow => 0.0,
-                Weapon::Daggers => 0.0,
+                Tool::Sword => 0.0,
+                Tool::Axe => 3.0,
+                Tool::Hammer => 0.0,
+                Tool::SwordShield => 3.0,
+                Tool::Staff => 3.0,
+                Tool::Bow => 0.0,
+                Tool::Daggers => 0.0,
             },
-            weapon_y: match Weapon::Hammer {
+            weapon_y: match Tool::Hammer {
                 // TODO: Inventory
-                Weapon::Sword => -1.25,
-                Weapon::Axe => 0.0,
-                Weapon::Hammer => -2.0,
-                Weapon::SwordShield => 0.0,
-                Weapon::Staff => 0.0,
-                Weapon::Bow => -2.0,
-                Weapon::Daggers => -2.0,
+                Tool::Sword => -1.25,
+                Tool::Axe => 0.0,
+                Tool::Hammer => -2.0,
+                Tool::SwordShield => 0.0,
+                Tool::Staff => 0.0,
+                Tool::Bow => -2.0,
+                Tool::Daggers => -2.0,
             },
         }
     }
diff --git a/voxygen/src/hud/bag.rs b/voxygen/src/hud/bag.rs
index c0a7f86188..749732e001 100644
--- a/voxygen/src/hud/bag.rs
+++ b/voxygen/src/hud/bag.rs
@@ -1,4 +1,5 @@
-use super::{img_ids::Imgs, Fonts, TEXT_COLOR};
+use super::{img_ids::Imgs, Event as HudEvent, Fonts, TEXT_COLOR};
+use client::Client;
 use conrod_core::{
     color,
     position::Relative,
@@ -16,17 +17,16 @@ widget_ids! {
         inv_grid_1,
         inv_grid_2,
         inv_scrollbar,
-        inv_slot_0,
+        inv_slots_0,
         map_title,
-        inv_slot[],
-        item1,
+        inv_slots[],
+        items[],
     }
 }
 
 #[derive(WidgetCommon)]
 pub struct Bag<'a> {
-    inventory_space: usize,
-
+    client: &'a Client,
     imgs: &'a Imgs,
     fonts: &'a Fonts,
     #[conrod(common_builder)]
@@ -34,9 +34,9 @@ pub struct Bag<'a> {
 }
 
 impl<'a> Bag<'a> {
-    pub fn new(inventory_space: usize, imgs: &'a Imgs, fonts: &'a Fonts) -> Self {
+    pub fn new(client: &'a Client, imgs: &'a Imgs, fonts: &'a Fonts) -> Self {
         Self {
-            inventory_space,
+            client,
             imgs,
             fonts,
             common: widget::CommonBuilder::default(),
@@ -46,11 +46,13 @@ impl<'a> Bag<'a> {
 
 pub struct State {
     ids: Ids,
+    selected_slot: Option<usize>,
 }
 
 const BAG_SCALE: f64 = 4.0;
 
 pub enum Event {
+    HudEvent(HudEvent),
     Close,
 }
 
@@ -62,6 +64,7 @@ impl<'a> Widget for Bag<'a> {
     fn init_state(&self, id_gen: widget::id::Generator) -> Self::State {
         State {
             ids: Ids::new(id_gen),
+            selected_slot: None,
         }
     }
 
@@ -72,87 +75,115 @@ impl<'a> Widget for Bag<'a> {
     fn update(self, args: widget::UpdateArgs<Self>) -> Self::Event {
         let widget::UpdateArgs { state, ui, .. } = args;
 
+        let mut event = None;
+
+        let invs = self.client.inventories();
+        let inventory = match invs.get(self.client.entity()) {
+            Some(inv) => inv,
+            None => return None,
+        };
+
         // Bag parts
         Image::new(self.imgs.bag_bot)
             .w_h(61.0 * BAG_SCALE, 9.0 * BAG_SCALE)
             .bottom_right_with_margins_on(ui.window, 60.0, 5.0)
             .set(state.ids.bag_bot, ui);
-        Image::new(self.imgs.bag_mid)
-            .w_h(
-                61.0 * BAG_SCALE,
-                ((self.inventory_space + 4) / 5) as f64 * 44.0,
-            )
-            .up_from(state.ids.bag_bot, 0.0)
-            .set(state.ids.bag_mid, ui);
         Image::new(self.imgs.bag_top)
             .w_h(61.0 * BAG_SCALE, 9.0 * BAG_SCALE)
             .up_from(state.ids.bag_mid, 0.0)
             .set(state.ids.bag_top, ui);
+        Image::new(self.imgs.bag_mid)
+            .w_h(61.0 * BAG_SCALE, ((inventory.len() + 4) / 5) as f64 * 44.0)
+            .up_from(state.ids.bag_bot, 0.0)
+            .set(state.ids.bag_mid, ui);
 
         // Alignment for Grid
         Rectangle::fill_with(
-            [
-                54.0 * BAG_SCALE,
-                ((self.inventory_space + 4) / 5) as f64 * 44.0,
-            ],
+            [54.0 * BAG_SCALE, ((inventory.len() + 4) / 5) as f64 * 44.0],
             color::TRANSPARENT,
         )
         .top_left_with_margins_on(state.ids.bag_top, 9.0 * BAG_SCALE, 3.0 * BAG_SCALE)
         .scroll_kids()
         .scroll_kids_vertically()
         .set(state.ids.inv_alignment, ui);
-
-        // Grid
-        /*Image::new(self.imgs.inv_grid)
-            .w_h(61.0 * BAG_SCALE, 111.0 * BAG_SCALE)
-            .color(Some(Color::Rgba(1.0, 1.0, 1.0, 0.5)))
-            .mid_top_with_margin_on(state.ids.inv_alignment, 0.0)
-            .set(state.ids.inv_grid_1, ui);
-        Image::new(self.imgs.inv_grid)
-            .w_h(61.0 * BAG_SCALE, 111.0 * BAG_SCALE)
-            .color(Some(Color::Rgba(1.0, 1.0, 1.0, 0.5)))
-            .mid_top_with_margin_on(state.ids.inv_alignment, 110.0 * BAG_SCALE)
-            .set(state.ids.inv_grid_2, ui);
-        Scrollbar::y_axis(state.ids.inv_alignment)
-            .thickness(5.0)
-            .rgba(0.33, 0.33, 0.33, 1.0)
-            .set(state.ids.inv_scrollbar, ui);*/
         // Create available inventory slot widgets
-        if state.ids.inv_slot.len() < self.inventory_space {
+
+        if state.ids.inv_slots.len() < inventory.len() {
             state.update(|s| {
                 s.ids
-                    .inv_slot
-                    .resize(self.inventory_space, &mut ui.widget_id_generator());
+                    .inv_slots
+                    .resize(inventory.len(), &mut ui.widget_id_generator());
             });
         }
-        // "Allowed" max. inventory space should be handled serverside and thus isn't limited in the UI
-        for i in 0..self.inventory_space {
+
+        if state.ids.items.len() < inventory.len() {
+            state.update(|s| {
+                s.ids
+                    .items
+                    .resize(inventory.len(), &mut ui.widget_id_generator());
+            });
+        }
+
+        // Display inventory contents
+
+        for (i, item) in inventory.slots().iter().enumerate() {
             let x = i % 5;
             let y = i / 5;
-            Button::image(self.imgs.inv_slot)
+
+            let is_selected = Some(i) == state.selected_slot;
+
+            // Slot
+            if Button::image(self.imgs.inv_slot)
                 .top_left_with_margins_on(
                     state.ids.inv_alignment,
                     4.0 + y as f64 * (40.0 + 4.0),
                     4.0 + x as f64 * (40.0 + 4.0),
                 ) // conrod uses a (y,x) format for placing...
-                .parent(state.ids.bag_mid) // Avoids the background overlapping available slots
+                .parent(state.ids.inv_alignment) // Avoids the background overlapping available slots
                 .w_h(40.0, 40.0)
-                .set(state.ids.inv_slot[i], ui);
+                .image_color(if is_selected {
+                    color::WHITE
+                } else {
+                    color::DARK_YELLOW
+                })
+                .floating(true)
+                .set(state.ids.inv_slots[i], ui)
+                .was_clicked()
+            {
+                let selected_slot = match state.selected_slot {
+                    Some(a) => {
+                        if a == i {
+                            event = Some(Event::HudEvent(HudEvent::DropInventorySlot(i)));
+                        } else {
+                            event = Some(Event::HudEvent(HudEvent::SwapInventorySlots(a, i)));
+                        }
+                        None
+                    }
+                    None if item.is_some() => Some(i),
+                    None => None,
+                };
+                state.update(|s| s.selected_slot = selected_slot);
+            }
+
+            // Item
+            if item.is_some() {
+                Button::image(self.imgs.potion_red) // TODO: Insert variable image depending on the item displayed in that slot
+                    .w_h(4.0 * 4.4, 7.0 * 4.4) // TODO: Fix height and scale width correctly to that to avoid a stretched item image
+                    .middle_of(state.ids.inv_slots[i]) // TODO: Items need to be assigned to a certain slot and then placed like in this example
+                    .label("5x") // TODO: Quantity goes here...
+                    .label_font_id(self.fonts.opensans)
+                    .label_font_size(12)
+                    .label_x(Relative::Scalar(10.0))
+                    .label_y(Relative::Scalar(-10.0))
+                    .label_color(TEXT_COLOR)
+                    .parent(state.ids.inv_slots[i])
+                    .graphics_for(state.ids.inv_slots[i])
+                    .set(state.ids.items[i], ui);
+            }
         }
-        // Test Item
-        if self.inventory_space > 0 {
-            Button::image(self.imgs.potion_red) // TODO: Insert variable image depending on the item displayed in that slot
-                .w_h(4.0 * 4.4, 7.0 * 4.4) // TODO: Fix height and scale width correctly to that to avoid a stretched item image
-                .middle_of(state.ids.inv_slot[0]) // TODO: Items need to be assigned to a certain slot and then placed like in this example
-                .label("5x") // TODO: Quantity goes here...
-                .label_font_id(self.fonts.opensans)
-                .label_font_size(12)
-                .label_x(Relative::Scalar(10.0))
-                .label_y(Relative::Scalar(-10.0))
-                .label_color(TEXT_COLOR)
-                .set(state.ids.item1, ui); // TODO: Add widget_id generator for displayed items
-        }
-        // X-button
+
+        // Close button
+
         if Button::image(self.imgs.close_button)
             .w_h(28.0, 28.0)
             .hover_image(self.imgs.close_button_hover)
@@ -161,9 +192,9 @@ impl<'a> Widget for Bag<'a> {
             .set(state.ids.bag_close, ui)
             .was_clicked()
         {
-            Some(Event::Close)
-        } else {
-            None
+            event = Some(Event::Close);
         }
+
+        event
     }
 }
diff --git a/voxygen/src/hud/mod.rs b/voxygen/src/hud/mod.rs
index 689f1f5668..1a52b1192e 100644
--- a/voxygen/src/hud/mod.rs
+++ b/voxygen/src/hud/mod.rs
@@ -141,6 +141,8 @@ pub enum Event {
     CrosshairType(CrosshairType),
     UiScale(ScaleChange),
     CharacterSelection,
+    SwapInventorySlots(usize, usize),
+    DropInventorySlot(usize),
     Logout,
     Quit,
 }
@@ -588,9 +590,8 @@ impl Hud {
 
         // Bag contents
         if self.show.bag {
-            match Bag::new(self.inventory_space, &self.imgs, &self.fonts)
-                .set(self.ids.bag, ui_widgets)
-            {
+            match Bag::new(client, &self.imgs, &self.fonts).set(self.ids.bag, ui_widgets) {
+                Some(bag::Event::HudEvent(event)) => events.push(event),
                 Some(bag::Event::Close) => {
                     self.show.bag(false);
                     self.force_ungrab = true;
diff --git a/voxygen/src/menu/char_selection/ui.rs b/voxygen/src/menu/char_selection/ui.rs
index 225e96e504..700532ece5 100644
--- a/voxygen/src/menu/char_selection/ui.rs
+++ b/voxygen/src/menu/char_selection/ui.rs
@@ -8,7 +8,7 @@ use crate::{
     GlobalState,
 };
 use client::Client;
-use common::comp::{humanoid, item::Weapon};
+use common::comp::{humanoid, item::Tool};
 use conrod_core::{
     color,
     color::TRANSPARENT,
@@ -109,7 +109,7 @@ widget_ids! {
         body_type_1,
         body_type_2,
 
-        // Weapons
+        // Tools
         sword,
         sword_button,
         daggers,
@@ -152,7 +152,7 @@ image_ids! {
         slider_range: "voxygen/element/slider/track.png",
         slider_indicator: "voxygen/element/slider/indicator.png",
 
-        // Weapon Icons
+        // Tool Icons
         daggers: "voxygen/element/icons/daggers.png",
         sword: "voxygen/element/icons/sword.png",
         axe: "voxygen/element/icons/axe.png",
@@ -209,7 +209,7 @@ pub struct CharSelectionUi {
     character_creation: bool,
     pub character_name: String,
     pub character_body: humanoid::Body,
-    pub character_weapon: Weapon, // TODO: Move into ecs inventory struct?
+    pub character_weapon: Tool, // TODO: Move into ecs inventory struct?
 }
 
 impl CharSelectionUi {
@@ -235,7 +235,7 @@ impl CharSelectionUi {
             character_creation: false,
             character_name: "Character Name".to_string(),
             character_body: humanoid::Body::random(),
-            character_weapon: Weapon::Sword,
+            character_weapon: Tool::Sword,
         }
     }
 
@@ -344,7 +344,7 @@ impl CharSelectionUi {
                 .was_clicked()
             {
                 self.character_creation = true;
-                self.character_weapon = Weapon::Sword;
+                self.character_weapon = Tool::Sword;
             }
 
             // Alpha Version
@@ -553,7 +553,7 @@ impl CharSelectionUi {
                 self.character_body.body_type = humanoid::BodyType::Female;
             }
 
-            // Alignment for Races and Weapons
+            // Alignment for Races and Tools
             Rectangle::fill_with([214.0, 304.0], color::TRANSPARENT)
                 .mid_bottom_with_margin_on(self.ids.creation_buttons_alignment_1, -324.0)
                 .set(self.ids.creation_buttons_alignment_2, ui_widgets);
@@ -710,7 +710,7 @@ impl CharSelectionUi {
                 .w_h(70.0, 70.0)
                 .bottom_left_with_margins_on(self.ids.creation_buttons_alignment_2, 0.0, 0.0)
                 .set(self.ids.hammer, ui_widgets);
-            if Button::image(if let Weapon::Hammer = self.character_weapon {
+            if Button::image(if let Tool::Hammer = self.character_weapon {
                 self.imgs.icon_border_pressed
             } else {
                 self.imgs.icon_border
@@ -721,7 +721,7 @@ impl CharSelectionUi {
             .set(self.ids.hammer_button, ui_widgets)
             .was_clicked()
             {
-                self.character_weapon = Weapon::Hammer;
+                self.character_weapon = Tool::Hammer;
             }
             // REMOVE THIS AFTER IMPLEMENTATION
             /*Rectangle::fill_with([67.0, 67.0], color::rgba(0.0, 0.0, 0.0, 0.8))
@@ -734,7 +734,7 @@ impl CharSelectionUi {
                 .w_h(70.0, 70.0)
                 .right_from(self.ids.hammer, 2.0)
                 .set(self.ids.bow, ui_widgets);
-            if Button::image(if let Weapon::Bow = self.character_weapon {
+            if Button::image(if let Tool::Bow = self.character_weapon {
                 self.imgs.icon_border_pressed
             } else {
                 self.imgs.icon_border
@@ -745,7 +745,7 @@ impl CharSelectionUi {
             .set(self.ids.bow_button, ui_widgets)
             .was_clicked()
             {
-                //self.character_weapon = Weapon::Bow;
+                //self.character_weapon = Tool::Bow;
             }
             // REMOVE THIS AFTER IMPLEMENTATION
             Rectangle::fill_with([67.0, 67.0], color::rgba(0.0, 0.0, 0.0, 0.8))
@@ -756,7 +756,7 @@ impl CharSelectionUi {
                 .w_h(70.0, 70.0)
                 .right_from(self.ids.bow, 2.0)
                 .set(self.ids.staff, ui_widgets);
-            if Button::image(if let Weapon::Staff = self.character_weapon {
+            if Button::image(if let Tool::Staff = self.character_weapon {
                 self.imgs.icon_border_pressed
             } else {
                 self.imgs.icon_border
@@ -767,7 +767,7 @@ impl CharSelectionUi {
             .set(self.ids.staff_button, ui_widgets)
             .was_clicked()
             {
-                //self.character_weapon = Weapon::Staff;
+                //self.character_weapon = Tool::Staff;
             }
             // REMOVE THIS AFTER IMPLEMENTATION
             Rectangle::fill_with([67.0, 67.0], color::rgba(0.0, 0.0, 0.0, 0.8))
@@ -778,7 +778,7 @@ impl CharSelectionUi {
                 .w_h(70.0, 70.0)
                 .up_from(self.ids.hammer, 2.0)
                 .set(self.ids.sword, ui_widgets);
-            if Button::image(if let Weapon::Sword = self.character_weapon {
+            if Button::image(if let Tool::Sword = self.character_weapon {
                 self.imgs.icon_border_pressed
             } else {
                 self.imgs.icon_border
@@ -789,7 +789,7 @@ impl CharSelectionUi {
             .set(self.ids.sword_button, ui_widgets)
             .was_clicked()
             {
-                self.character_weapon = Weapon::Sword;
+                self.character_weapon = Tool::Sword;
             }
 
             // Daggers
@@ -797,7 +797,7 @@ impl CharSelectionUi {
                 .w_h(70.0, 70.0)
                 .right_from(self.ids.sword, 2.0)
                 .set(self.ids.daggers, ui_widgets);
-            if Button::image(if let Weapon::Daggers = self.character_weapon {
+            if Button::image(if let Tool::Daggers = self.character_weapon {
                 self.imgs.icon_border_pressed
             } else {
                 self.imgs.icon_border
@@ -808,7 +808,7 @@ impl CharSelectionUi {
             .set(self.ids.daggers_button, ui_widgets)
             .was_clicked()
             {
-                // self.character_weapon = Weapon::Daggers;
+                // self.character_weapon = Tool::Daggers;
             } // REMOVE THIS AFTER IMPLEMENTATION
             Rectangle::fill_with([67.0, 67.0], color::rgba(0.0, 0.0, 0.0, 0.8))
                 .middle_of(self.ids.daggers)
@@ -819,7 +819,7 @@ impl CharSelectionUi {
                 .w_h(70.0, 70.0)
                 .right_from(self.ids.daggers, 2.0)
                 .set(self.ids.axe, ui_widgets);
-            if Button::image(if let Weapon::Axe = self.character_weapon {
+            if Button::image(if let Tool::Axe = self.character_weapon {
                 self.imgs.icon_border_pressed
             } else {
                 self.imgs.icon_border
@@ -830,7 +830,7 @@ impl CharSelectionUi {
             .set(self.ids.axe_button, ui_widgets)
             .was_clicked()
             {
-                self.character_weapon = Weapon::Axe;
+                self.character_weapon = Tool::Axe;
             }
             // REMOVE THIS AFTER IMPLEMENTATION
             /*Rectangle::fill_with([67.0, 67.0], color::rgba(0.0, 0.0, 0.0, 0.8))
diff --git a/voxygen/src/scene/figure.rs b/voxygen/src/scene/figure.rs
index 47ecbb8219..8a8d800b83 100644
--- a/voxygen/src/scene/figure.rs
+++ b/voxygen/src/scene/figure.rs
@@ -12,7 +12,7 @@ use crate::{
 use client::Client;
 use common::{
     assets,
-    comp::{self, humanoid, item::Weapon, object, quadruped, quadruped_medium, Body},
+    comp::{self, humanoid, item::Tool, object, quadruped, quadruped_medium, Body},
     figure::Segment,
     terrain::TerrainChunkSize,
     vol::VolSize,
@@ -61,7 +61,7 @@ impl FigureModelCache {
                                     Some(Self::load_right_hand(body.hand)),
                                     Some(Self::load_left_foot(body.foot)),
                                     Some(Self::load_right_foot(body.foot)),
-                                    Some(Self::load_weapon(Weapon::Hammer)), // TODO: Inventory
+                                    Some(Self::load_weapon(Tool::Hammer)), // TODO: Inventory
                                     Some(Self::load_left_shoulder(body.shoulder)),
                                     Some(Self::load_right_shoulder(body.shoulder)),
                                     Some(Self::load_draw()),
@@ -312,15 +312,15 @@ impl FigureModelCache {
         )
     }
 
-    fn load_weapon(weapon: Weapon) -> Mesh<FigurePipeline> {
+    fn load_weapon(weapon: Tool) -> Mesh<FigurePipeline> {
         let (name, offset) = match weapon {
-            Weapon::Sword => ("weapon/sword/rusty_2h.vox", Vec3::new(-1.5, -6.5, -4.0)),
-            Weapon::Axe => ("weapon/axe/rusty_2h.vox", Vec3::new(-1.5, -6.5, -4.0)),
-            Weapon::Hammer => ("weapon/hammer/rusty_2h.vox", Vec3::new(-2.5, -5.5, -4.0)),
-            Weapon::Daggers => ("weapon/hammer/rusty_2h.vox", Vec3::new(-2.5, -5.5, -4.0)),
-            Weapon::SwordShield => ("weapon/axe/rusty_2h.vox", Vec3::new(-2.5, -6.5, -2.0)),
-            Weapon::Bow => ("weapon/hammer/rusty_2h.vox", Vec3::new(-2.5, -5.5, -4.0)),
-            Weapon::Staff => ("weapon/axe/rusty_2h.vox", Vec3::new(-2.5, -6.5, -2.0)),
+            Tool::Sword => ("weapon/sword/rusty_2h.vox", Vec3::new(-1.5, -6.5, -4.0)),
+            Tool::Axe => ("weapon/axe/rusty_2h.vox", Vec3::new(-1.5, -6.5, -4.0)),
+            Tool::Hammer => ("weapon/hammer/rusty_2h.vox", Vec3::new(-2.5, -5.5, -4.0)),
+            Tool::Daggers => ("weapon/hammer/rusty_2h.vox", Vec3::new(-2.5, -5.5, -4.0)),
+            Tool::SwordShield => ("weapon/axe/rusty_2h.vox", Vec3::new(-2.5, -6.5, -2.0)),
+            Tool::Bow => ("weapon/hammer/rusty_2h.vox", Vec3::new(-2.5, -5.5, -4.0)),
+            Tool::Staff => ("weapon/axe/rusty_2h.vox", Vec3::new(-2.5, -6.5, -2.0)),
         };
         Self::load_mesh(name, offset)
     }
@@ -583,6 +583,7 @@ impl FigureModelCache {
                 "object/carpet_human_squircle.vox",
                 Vec3::new(-21.0, -21.0, -0.5),
             ),
+            object::Body::Pouch => ("object/pouch.vox", Vec3::new(-5.5, -4.5, 0.0)),
         };
         Self::load_mesh(name, offset)
     }
@@ -970,8 +971,13 @@ impl<S: Skeleton> FigureState<S> {
         dt: f32,
     ) {
         // Update interpolation values
-        self.pos = Lerp::lerp(self.pos, pos, 15.0 * dt);
-        self.ori = Slerp::slerp(self.ori, ori, 7.5 * dt);
+        if self.pos.distance_squared(pos) < 64.0 * 64.0 {
+            self.pos = Lerp::lerp(self.pos, pos, 15.0 * dt);
+            self.ori = Slerp::slerp(self.ori, ori, 7.5 * dt);
+        } else {
+            self.pos = pos;
+            self.ori = ori;
+        }
 
         let mat = Mat4::<f32>::identity()
             * Mat4::translation_3d(self.pos)
diff --git a/voxygen/src/session.rs b/voxygen/src/session.rs
index 7279c89470..647d83675a 100644
--- a/voxygen/src/session.rs
+++ b/voxygen/src/session.rs
@@ -9,6 +9,7 @@ use crate::{
 use client::{self, Client};
 use common::{clock::Clock, comp, comp::Pos, msg::ClientState, terrain::Block, vol::ReadVol};
 use log::error;
+use specs::Join;
 use std::{cell::RefCell, rc::Rc, time::Duration};
 use vek::*;
 
@@ -212,6 +213,35 @@ impl PlayState for SessionState {
                     Event::InputUpdate(GameInput::Glide, state) => {
                         self.controller.glide = state;
                     }
+                    Event::InputUpdate(GameInput::Interact, state) => {
+                        let mut client = self.client.borrow_mut();
+
+                        let player_pos = client
+                            .state()
+                            .read_storage::<comp::Pos>()
+                            .get(client.entity())
+                            .copied();
+
+                        if let (Some(player_pos), true) = (player_pos, state) {
+                            let entity = (
+                                &client.state().ecs().entities(),
+                                &client.state().ecs().read_storage::<comp::Pos>(),
+                                &client.state().ecs().read_storage::<comp::Item>(),
+                            )
+                                .join()
+                                .filter(|(_, pos, _)| {
+                                    pos.0.distance_squared(player_pos.0) < 3.0 * 3.0
+                                })
+                                .min_by_key(|(_, pos, _)| {
+                                    (pos.0.distance_squared(player_pos.0) * 1000.0) as i32
+                                })
+                                .map(|(entity, _, _)| entity);
+
+                            if let Some(entity) = entity {
+                                client.pick_up(entity);
+                            }
+                        }
+                    }
 
                     // Pass all other events to the scene
                     event => {
@@ -318,6 +348,12 @@ impl PlayState for SessionState {
                         global_state.settings.graphics.max_fps = fps;
                         global_state.settings.save_to_file_warn();
                     }
+                    HudEvent::SwapInventorySlots(a, b) => {
+                        self.client.borrow_mut().swap_inventory_slots(a, b)
+                    }
+                    HudEvent::DropInventorySlot(x) => {
+                        self.client.borrow_mut().drop_inventory_slot(x)
+                    }
                 }
             }
 
diff --git a/voxygen/src/settings.rs b/voxygen/src/settings.rs
index 8995241ffc..938e77bb82 100644
--- a/voxygen/src/settings.rs
+++ b/voxygen/src/settings.rs
@@ -35,6 +35,7 @@ pub struct ControlSettings {
     pub attack: KeyMouse,
     pub second_attack: KeyMouse,
     pub roll: KeyMouse,
+    pub interact: KeyMouse,
 }
 
 impl Default for ControlSettings {
@@ -66,6 +67,7 @@ impl Default for ControlSettings {
             attack: KeyMouse::Mouse(MouseButton::Left),
             second_attack: KeyMouse::Mouse(MouseButton::Right),
             roll: KeyMouse::Mouse(MouseButton::Middle),
+            interact: KeyMouse::Key(VirtualKeyCode::E),
         }
     }
 }
diff --git a/voxygen/src/window.rs b/voxygen/src/window.rs
index 88dff356f8..a7b5dc2266 100644
--- a/voxygen/src/window.rs
+++ b/voxygen/src/window.rs
@@ -38,6 +38,7 @@ pub enum GameInput {
     SecondAttack,
     Roll,
     Respawn,
+    Interact,
 }
 
 /// Represents an incoming event from the window.
@@ -143,6 +144,7 @@ impl Window {
         key_map.insert(settings.controls.attack, GameInput::Attack);
         key_map.insert(settings.controls.second_attack, GameInput::SecondAttack);
         key_map.insert(settings.controls.roll, GameInput::Roll);
+        key_map.insert(settings.controls.interact, GameInput::Interact);
 
         let keypress_map = HashMap::new();