diff --git a/packages/editor/src/components/ui/controls/material-paint-panel.tsx b/packages/editor/src/components/ui/controls/material-paint-panel.tsx
index d2fd2d244..4abae9b62 100644
--- a/packages/editor/src/components/ui/controls/material-paint-panel.tsx
+++ b/packages/editor/src/components/ui/controls/material-paint-panel.tsx
@@ -8,7 +8,7 @@ import {
   useScene,
 } from '@pascal-app/core'
 import { useViewer } from '@pascal-app/viewer'
-import { Eraser, RotateCcw } from 'lucide-react'
+import { Eraser, Plus, RotateCcw } from 'lucide-react'
 import { useEffect, useState } from 'react'
 import {
   buildResetSurfaceMaterialUpdates,
@@ -16,15 +16,16 @@ import {
 } from './../../../lib/material-paint'
 import useEditor from './../../../store/use-editor'
 import { Button } from '../primitives/button'
+import { Tooltip, TooltipContent, TooltipTrigger } from '../primitives/tooltip'
 import { MaterialPicker } from './material-picker'
-import { PanelSection } from './panel-section'
 import { SceneMaterialList } from './scene-material-list'
 
 /**
  * Material picker for paint mode. Embedders render this wherever paint controls
  * belong (the community editor places it in the Build sidebar while paint mode
- * is active). It owns the paint-target/material wiring so the host only needs
- * to mount it; it fills its container's width.
+ * is active). It fills its container's height and lays out as three bands: a
+ * fixed control/category header, a single scrolling catalog grid, and a fixed
+ * scene-material footer (always visible, with a `+` to add a custom material).
  */
 export function MaterialPaintPanel() {
   const activePaintMaterial = useEditor((state) => state.activePaintMaterial)
@@ -55,9 +56,34 @@ export function MaterialPaintPanel() {
     useScene.getState().updateNodes(buildResetSurfaceMaterialUpdates(nodes, selectedNode))
   }
 
+  // Create a blank custom scene material, select it as the brush (`scene:` ref so
+  // edits propagate), and open its inline editor. Available from any category.
+  const createCustomMaterial = () => {
+    const id = generateSceneMaterialId()
+    const count = Object.keys(useScene.getState().materials).length
+    useScene.getState().addSceneMaterial({
+      id,
+      name: `Material ${count + 1}`,
+      material: {
+        preset: 'custom',
+        properties: {
+          color: '#ffffff',
+          roughness: 0.5,
+          metalness: 0,
+          opacity: 1,
+          transparent: false,
+          side: 'front',
+        },
+      },
+    })
+    setActivePaintMaterial({ materialPreset: toSceneMaterialRef(id), sourceTarget: activePaintTarget })
+    setAutoEditMaterialId(id)
+  }
+
   return (
-    <div className="w-full space-y-2">
-      <div className="flex items-center gap-2">
+    <div className="flex h-full min-h-0 w-full flex-col">
+      {/* Fixed: eraser / reset. */}
+      <div className="flex shrink-0 items-center gap-2 pb-2">
         <Button
           aria-pressed={paintEraser}
           className="flex-1"
@@ -79,32 +105,48 @@ export function MaterialPaintPanel() {
           Reset all
         </Button>
       </div>
-      <MaterialPicker
-        onChange={(material) => {
-          // Custom-create: pre-create a scene material and select it as the
-          // brush via a `scene:` ref so painting stores the ref and edits to
-          // it propagate everywhere. The user edits it inline in the scene-
-          // material list below (auto-opened) — no separate right-side pane.
-          const id = generateSceneMaterialId()
-          const count = Object.keys(useScene.getState().materials).length
-          useScene.getState().addSceneMaterial({ id, name: `Material ${count + 1}`, material })
-          setActivePaintMaterial({
-            materialPreset: toSceneMaterialRef(id),
-            sourceTarget: activePaintTarget,
-          })
-          setAutoEditMaterialId(id)
-        }}
-        onSelectMaterialPreset={(materialPreset) => {
-          setActivePaintMaterial({ materialPreset, sourceTarget: activePaintTarget })
-        }}
-        selectedMaterialPreset={activePaintMaterial?.materialPreset}
-        value={activePaintMaterial?.material}
-      />
-      {materialCount > 0 ? (
-        <PanelSection title="Scene materials">
-          <SceneMaterialList autoEditId={autoEditMaterialId} />
-        </PanelSection>
-      ) : null}
+
+      {/* Scrolls: category tabs (fixed inside) + catalog grid (the scroll). */}
+      <div className="min-h-0 flex-1">
+        <MaterialPicker
+          onSelectMaterialPreset={(materialPreset) => {
+            setActivePaintMaterial({ materialPreset, sourceTarget: activePaintTarget })
+          }}
+          selectedMaterialPreset={activePaintMaterial?.materialPreset}
+        />
+      </div>
+
+      {/* Fixed footer: scene materials, always visible, with a `+` to add one. */}
+      <div className="mt-2 shrink-0 space-y-1.5 border-border/60 border-t pt-2">
+        <div className="flex items-center justify-between">
+          <span className="font-medium text-muted-foreground text-xs uppercase tracking-[0.12em]">
+            Scene materials
+          </span>
+          <Tooltip>
+            <TooltipTrigger asChild>
+              <Button
+                aria-label="Add material"
+                onClick={createCustomMaterial}
+                size="icon-sm"
+                type="button"
+                variant="outline"
+              >
+                <Plus />
+              </Button>
+            </TooltipTrigger>
+            <TooltipContent>Add material</TooltipContent>
+          </Tooltip>
+        </div>
+        <div className="subtle-scrollbar max-h-56 overflow-y-auto">
+          {materialCount > 0 ? (
+            <SceneMaterialList autoEditId={autoEditMaterialId} />
+          ) : (
+            <p className="px-0.5 py-1 text-muted-foreground text-xs">
+              No custom materials yet — add one with +.
+            </p>
+          )}
+        </div>
+      </div>
     </div>
   )
 }
diff --git a/packages/editor/src/components/ui/controls/material-picker.tsx b/packages/editor/src/components/ui/controls/material-picker.tsx
index e0b5469f9..e0284a1a4 100644
--- a/packages/editor/src/components/ui/controls/material-picker.tsx
+++ b/packages/editor/src/components/ui/controls/material-picker.tsx
@@ -5,7 +5,6 @@ import {
   getLibraryMaterialIdFromRef,
   getMaterialsForCategory,
   MATERIAL_CATEGORIES,
-  type MaterialSchema,
   type MaterialTarget,
   toLibraryMaterialRef,
 } from '@pascal-app/core'
@@ -13,9 +12,7 @@ import { useEffect, useState } from 'react'
 import { triggerSFX } from '../../../lib/sfx-bus'
 
 type MaterialPickerProps = {
-  value?: MaterialSchema
   selectedMaterialPreset?: string
-  onChange?: (material: MaterialSchema) => void
   onSelectMaterialPreset?: (materialPreset: string) => void
   disabled?: boolean
   nodeType?: MaterialTarget
@@ -26,14 +23,16 @@ function getCategoryLabel(category: (typeof MATERIAL_CATEGORIES)[number]) {
   return category.charAt(0).toUpperCase() + category.slice(1)
 }
 
+/**
+ * Catalog material picker: a fixed row of category tabs over a scrollable grid
+ * of swatches. Custom-material creation lives in the scene-material section
+ * (the host's `+` action), not here, so it's available from any category.
+ */
 export function MaterialPicker({
-  value,
   selectedMaterialPreset,
-  onChange,
   onSelectMaterialPreset,
   disabled = false,
 }: MaterialPickerProps) {
-  const [showCustom, setShowCustom] = useState<boolean>(!!value?.properties)
   const [selectedCategory, setSelectedCategory] = useState<(typeof MATERIAL_CATEGORIES)[number]>(
     MATERIAL_CATEGORIES[0],
   )
@@ -42,143 +41,87 @@ export function MaterialPicker({
   )
   const catalogItems = getMaterialsForCategory(selectedCategory)
 
+  // Keep the visible category in sync with the externally-selected catalog
+  // material (a `scene:` ref matches no catalog entry, so the tab stays put).
   useEffect(() => {
-    setShowCustom(!!value?.properties && !selectedMaterialPreset)
-  }, [selectedMaterialPreset, value?.properties])
-
-  useEffect(() => {
-    if (!selectedMaterialPreset && value?.properties) {
-      setSelectedCategory('colors')
-      return
-    }
-
-    const catalogId =
-      getLibraryMaterialIdFromRef(selectedMaterialPreset) ?? value?.id ?? undefined
-    const selectedCatalogEntry = getCatalogMaterialById(catalogId)
-    if (selectedCatalogEntry?.category) {
-      setSelectedCategory(selectedCatalogEntry.category)
-    }
-  }, [selectedMaterialPreset, value?.id])
-
-  const selectedCatalogId =
-    selectedMaterialPreset ?? (value?.id ? toLibraryMaterialRef(value.id) : undefined)
-  const selectedCatalogMaterialId = getLibraryMaterialIdFromRef(selectedCatalogId) ?? undefined
-  const selectedCatalogEntry = getCatalogMaterialById(selectedCatalogMaterialId)
+    const catalogId = getLibraryMaterialIdFromRef(selectedMaterialPreset) ?? undefined
+    const entry = getCatalogMaterialById(catalogId)
+    if (entry?.category) setSelectedCategory(entry.category)
+  }, [selectedMaterialPreset])
 
   const handleCatalogSelect = (materialId: string) => {
     if (disabled) return
-    setShowCustom(false)
     onSelectMaterialPreset?.(toLibraryMaterialRef(materialId))
   }
 
-  // Seed a new custom material from the current/forked colour and hand it to
-  // the host (MaterialPaintPanel), which pre-creates a scene material the user
-  // edits inline in the build pane — no separate right-side editor pane.
-  const handleCustomOpen = () => {
-    if (disabled) return
-    const forkColor = selectedMaterialPreset
-      ? (selectedCatalogEntry?.previewColor ?? '#ffffff')
-      : '#ffffff'
-    onChange?.({
-      preset: 'custom',
-      properties: {
-        color: value?.properties?.color || forkColor,
-        roughness: value?.properties?.roughness ?? 0.5,
-        metalness: value?.properties?.metalness ?? 0,
-        opacity: value?.properties?.opacity ?? 1,
-        transparent: value?.properties?.transparent ?? false,
-        side: value?.properties?.side ?? 'front',
-      },
-    })
-  }
-
   return (
-    <div className={`min-w-0 space-y-3 ${disabled ? 'pointer-events-none opacity-50' : ''}`}>
-      {(catalogItems.length > 0 || onChange) && (
-        <div className="min-w-0 space-y-1">
-          <div className="flex flex-wrap gap-1 pb-1">
-            {availableCategories.map((category) => (
-              <button
-                className={`rounded-full px-3 py-1 font-medium text-xs transition-colors ${
-                  selectedCategory === category
-                    ? 'bg-foreground text-background'
-                    : 'text-muted-foreground hover:text-foreground'
-                }`}
-                key={category}
-                onClick={() => {
-                  setSelectedCategory(category)
-                  if (showCustom) {
-                    setShowCustom(false)
-                  }
-                }}
-                type="button"
-              >
-                {getCategoryLabel(category)}
-              </button>
-            ))}
-          </div>
-          <div
-            className="grid gap-2 pb-1"
-            style={{ gridTemplateColumns: 'repeat(auto-fill, minmax(72px, 1fr))' }}
+    <div
+      className={`flex h-full min-h-0 flex-col gap-2 ${disabled ? 'pointer-events-none opacity-50' : ''}`}
+    >
+      {/* Fixed category tabs — outside the scroll region. */}
+      <div className="flex shrink-0 flex-wrap gap-1">
+        {availableCategories.map((category) => (
+          <button
+            className={`rounded-full px-3 py-1 font-medium text-xs transition-colors ${
+              selectedCategory === category
+                ? 'bg-foreground text-background'
+                : 'text-muted-foreground hover:text-foreground'
+            }`}
+            key={category}
+            onClick={() => {
+              setSelectedCategory(category)
+              // Auto-select the first material in the category so the brush is
+              // immediately ready (and the swatch shows as selected).
+              const first = getMaterialsForCategory(category)[0]
+              if (first) handleCatalogSelect(first.id)
+            }}
+            type="button"
           >
-            {catalogItems.map((item) => {
-              const isSelected = selectedCatalogId === toLibraryMaterialRef(item.id)
-              return (
-                <button
-                  className={`group relative flex flex-col gap-1.5 rounded-xl p-1.5 transition-colors hover:cursor-pointer hover:bg-sidebar-accent ${
-                    isSelected ? 'bg-sidebar-accent ring-2 ring-primary-foreground' : ''
-                  }`}
-                  key={item.id}
-                  onClick={() => {
-                    triggerSFX('sfx:menu-click')
-                    handleCatalogSelect(item.id)
-                  }}
-                  onMouseEnter={() => triggerSFX('sfx:menu-hover')}
-                  type="button"
-                >
-                  <div className="relative aspect-square w-full overflow-hidden rounded-lg">
-                    {item.previewThumbnailUrl ? (
-                      <img
-                        alt={item.label}
-                        className="h-full w-full object-cover"
-                        src={item.previewThumbnailUrl}
-                      />
-                    ) : (
-                      <div
-                        className="h-full w-full"
-                        style={{ backgroundColor: item.previewColor ?? '#f3f4f6' }}
-                      />
-                    )}
-                  </div>
-                  <span className="truncate px-0.5 text-left font-medium text-[11px] text-muted-foreground group-hover:text-foreground">
-                    {item.label}
-                  </span>
-                </button>
-              )
-            })}
-            {selectedCategory === 'colors' && onChange ? (
-              <button
-                className={`group relative flex flex-col gap-1.5 rounded-xl p-1.5 transition-colors hover:cursor-pointer hover:bg-sidebar-accent ${
-                  showCustom ? 'bg-sidebar-accent ring-2 ring-primary-foreground' : ''
-                }`}
-                onClick={() => {
-                  triggerSFX('sfx:menu-click')
-                  handleCustomOpen()
-                }}
-                onMouseEnter={() => triggerSFX('sfx:menu-hover')}
-                type="button"
-              >
-                <div className="flex aspect-square w-full items-center justify-center rounded-lg bg-muted text-lg text-muted-foreground group-hover:text-foreground">
-                  +
-                </div>
-                <span className="truncate px-0.5 text-left font-medium text-[11px] text-muted-foreground group-hover:text-foreground">
-                  Custom
-                </span>
-              </button>
-            ) : null}
-          </div>
-        </div>
-      )}
+            {getCategoryLabel(category)}
+          </button>
+        ))}
+      </div>
+      {/* The only scrolling region. */}
+      <div
+        className="subtle-scrollbar grid min-h-0 flex-1 auto-rows-min gap-2 overflow-y-auto pb-1"
+        style={{ gridTemplateColumns: 'repeat(auto-fill, minmax(72px, 1fr))' }}
+      >
+        {catalogItems.map((item) => {
+          const isSelected = selectedMaterialPreset === toLibraryMaterialRef(item.id)
+          return (
+            <button
+              className={`group relative flex flex-col gap-1.5 rounded-xl p-1.5 transition-colors hover:cursor-pointer hover:bg-sidebar-accent ${
+                isSelected ? 'bg-sidebar-accent ring-1 ring-primary ring-inset' : ''
+              }`}
+              key={item.id}
+              onClick={() => {
+                triggerSFX('sfx:menu-click')
+                handleCatalogSelect(item.id)
+              }}
+              onMouseEnter={() => triggerSFX('sfx:menu-hover')}
+              type="button"
+            >
+              <div className="relative aspect-square w-full overflow-hidden rounded-lg">
+                {item.previewThumbnailUrl ? (
+                  <img
+                    alt={item.label}
+                    className="h-full w-full object-cover"
+                    src={item.previewThumbnailUrl}
+                  />
+                ) : (
+                  <div
+                    className="h-full w-full"
+                    style={{ backgroundColor: item.previewColor ?? '#f3f4f6' }}
+                  />
+                )}
+              </div>
+              <span className="truncate px-0.5 text-left font-medium text-[11px] text-muted-foreground group-hover:text-foreground">
+                {item.label}
+              </span>
+            </button>
+          )
+        })}
+      </div>
     </div>
   )
 }
diff --git a/packages/editor/src/components/ui/controls/scene-material-list.tsx b/packages/editor/src/components/ui/controls/scene-material-list.tsx
index a300ffc33..a95ccb4a3 100644
--- a/packages/editor/src/components/ui/controls/scene-material-list.tsx
+++ b/packages/editor/src/components/ui/controls/scene-material-list.tsx
@@ -32,6 +32,7 @@ export function SceneMaterialList({ autoEditId }: { autoEditId?: SceneMaterialId
   const updateSceneMaterial = useScene((state) => state.updateSceneMaterial)
   const removeSceneMaterial = useScene((state) => state.removeSceneMaterial)
   const activePaintTarget = useEditor((state) => state.activePaintTarget)
+  const activePaintRef = useEditor((state) => state.activePaintMaterial?.materialPreset)
   const setActivePaintMaterial = useEditor((state) => state.setActivePaintMaterial)
 
   const materialEntries = useMemo(
@@ -71,6 +72,7 @@ export function SceneMaterialList({ autoEditId }: { autoEditId?: SceneMaterialId
           activePaintTarget={activePaintTarget}
           autoEdit={autoEditId === id}
           id={id}
+          isActive={activePaintRef === toSceneMaterialRef(id)}
           key={id}
           removeSceneMaterial={removeSceneMaterial}
           sceneMaterial={sceneMaterial}
@@ -89,6 +91,7 @@ function SceneMaterialRow({
   usageCount,
   activePaintTarget,
   autoEdit,
+  isActive,
   addSceneMaterial,
   updateSceneMaterial,
   removeSceneMaterial,
@@ -99,6 +102,7 @@ function SceneMaterialRow({
   usageCount: number
   activePaintTarget: ReturnType<typeof useEditor.getState>['activePaintTarget']
   autoEdit: boolean
+  isActive: boolean
   addSceneMaterial: ReturnType<typeof useScene.getState>['addSceneMaterial']
   updateSceneMaterial: ReturnType<typeof useScene.getState>['updateSceneMaterial']
   removeSceneMaterial: ReturnType<typeof useScene.getState>['removeSceneMaterial']
@@ -133,7 +137,11 @@ function SceneMaterialRow({
   }
 
   return (
-    <div className="rounded-md border border-border/60 bg-background/40 p-2">
+    <div
+      className={`rounded-md border border-border/60 bg-background/40 p-2 ${
+        isActive ? 'ring-1 ring-primary ring-inset' : ''
+      }`}
+    >
       <div className="flex items-center gap-2">
         <span
           className="h-8 w-8 shrink-0 rounded-md border border-border/70"