diff --git a/packages/core/src/components/html-container/html-container.tsx b/packages/core/src/components/html-container/html-container.tsx
new file mode 100644
index 000000000..1dbd576d8
--- /dev/null
+++ b/packages/core/src/components/html-container/html-container.tsx
@@ -0,0 +1,15 @@
+import * as React from 'react'
+
+interface HTMLContainerProps extends React.HTMLProps<HTMLDivElement> {
+  children: React.ReactNode
+}
+
+export const HTMLContainer = React.memo(
+  React.forwardRef<HTMLDivElement, HTMLContainerProps>(({ children, ...rest }, ref) => {
+    return (
+      <div ref={ref} className="tl-positioned-div" {...rest}>
+        {children}
+      </div>
+    )
+  })
+)
diff --git a/packages/core/src/components/html-container/index.ts b/packages/core/src/components/html-container/index.ts
new file mode 100644
index 000000000..c87e8e9b0
--- /dev/null
+++ b/packages/core/src/components/html-container/index.ts
@@ -0,0 +1 @@
+export * from './html-container'
diff --git a/packages/core/src/components/index.tsx b/packages/core/src/components/index.tsx
index 966c00473..8ede353af 100644
--- a/packages/core/src/components/index.tsx
+++ b/packages/core/src/components/index.tsx
@@ -1,3 +1,4 @@
 export * from './renderer'
 export { brushUpdater } from './brush'
 export * from './svg-container'
+export * from './html-container'
diff --git a/packages/core/src/hooks/useStyle.tsx b/packages/core/src/hooks/useStyle.tsx
index 3cec52f12..cb22bc4ea 100644
--- a/packages/core/src/hooks/useStyle.tsx
+++ b/packages/core/src/hooks/useStyle.tsx
@@ -153,6 +153,13 @@ const tlcss = css`
     height: 100%;
   }
 
+  .tl-positioned-div {
+    position: relative;
+    width: 100%;
+    height: 100%;
+    padding: var(--tl-padding);
+  }
+
   .tl-layer {
     transform: scale(var(--tl-zoom), var(--tl-zoom))
       translate(var(--tl-camera-x), var(--tl-camera-y));
diff --git a/packages/core/src/types.ts b/packages/core/src/types.ts
index 153268c98..2b72e9d4c 100644
--- a/packages/core/src/types.ts
+++ b/packages/core/src/types.ts
@@ -2,6 +2,7 @@
 /* eslint-disable @typescript-eslint/no-explicit-any */
 /* --------------------- Primary -------------------- */
 
+import { Intersect, Vec } from '+utils'
 import React, { ForwardedRef } from 'react'
 
 export type Patch<T> = Partial<{ [P in keyof T]: T | Partial<T> | Patch<T[P]> }>
@@ -304,16 +305,6 @@ export abstract class TLShapeUtil<T extends TLShape, E extends HTMLElement | SVG
 
   abstract getRotatedBounds(shape: T): TLBounds
 
-  abstract hitTest(shape: T, point: number[]): boolean
-
-  abstract hitTestBounds(shape: T, bounds: TLBounds): boolean
-
-  abstract transform(shape: T, bounds: TLBounds, info: TLTransformInfo<T>): Partial<T>
-
-  transformSingle(shape: T, bounds: TLBounds, info: TLTransformInfo<T>): Partial<T> {
-    return this.transform(shape, bounds, info)
-  }
-
   shouldRender(_prev: T, _next: T): boolean {
     return true
   }
@@ -356,6 +347,14 @@ export abstract class TLShapeUtil<T extends TLShape, E extends HTMLElement | SVG
     return { ...shape, ...props }
   }
 
+  transform(shape: T, bounds: TLBounds, info: TLTransformInfo<T>): Partial<T> | void {
+    return undefined
+  }
+
+  transformSingle(shape: T, bounds: TLBounds, info: TLTransformInfo<T>): Partial<T> | void {
+    return this.transform(shape, bounds, info)
+  }
+
   updateChildren<K extends TLShape>(shape: T, children: K[]): Partial<K>[] | void {
     return
   }
@@ -409,6 +408,40 @@ export abstract class TLShapeUtil<T extends TLShape, E extends HTMLElement | SVG
   onStyleChange(shape: T): Partial<T> | void {
     return
   }
+
+  hitTest(shape: T, point: number[]) {
+    const bounds = this.getBounds(shape)
+    return !(
+      point[0] < bounds.minX ||
+      point[0] > bounds.maxX ||
+      point[1] < bounds.minY ||
+      point[1] > bounds.maxY
+    )
+  }
+
+  hitTestBounds(shape: T, bounds: TLBounds) {
+    const { minX, minY, maxX, maxY, width, height } = this.getBounds(shape)
+    const center = [minX + width / 2, minY + height / 2]
+
+    const corners = [
+      [minX, minY],
+      [maxX, minY],
+      [maxX, maxY],
+      [minX, maxY],
+    ].map((point) => Vec.rotWith(point, center, shape.rotation || 0))
+
+    return (
+      corners.every(
+        (point) =>
+          !(
+            point[0] < bounds.minX ||
+            point[0] > bounds.maxX ||
+            point[1] < bounds.minY ||
+            point[1] > bounds.maxY
+          )
+      ) || Intersect.polyline.bounds(corners, bounds).length > 0
+    )
+  }
 }
 
 /* -------------------- Internal -------------------- */
diff --git a/packages/tldraw/src/components/tldraw/tldraw.tsx b/packages/tldraw/src/components/tldraw/tldraw.tsx
index 8709a13c5..d7b267f8f 100644
--- a/packages/tldraw/src/components/tldraw/tldraw.tsx
+++ b/packages/tldraw/src/components/tldraw/tldraw.tsx
@@ -2,7 +2,7 @@ import * as React from 'react'
 import { IdProvider } from '@radix-ui/react-id'
 import { Renderer } from '@tldraw/core'
 import styled from '~styles'
-import type { Data, TLDrawDocument } from '~types'
+import { Data, TLDrawDocument, TLDrawStatus, TLDrawToolType } from '~types'
 import { TLDrawState } from '~state'
 import { TLDrawContext, useCustomFonts, useKeyboardShortcuts, useTLDrawContext } from '~hooks'
 import { tldrawShapeUtils } from '~shape'
@@ -109,7 +109,8 @@ function InnerTldraw({
   const hideHandles = isInSession || !isSelecting
 
   // Hide indicators when not using the select tool, or when in session
-  const hideIndicators = isInSession || !isSelecting
+  const hideIndicators =
+    (isInSession && tlstate.appState.status.current !== TLDrawStatus.Brushing) || !isSelecting
 
   // Custom rendering meta, with dark mode for shapes
   const meta = React.useMemo(() => ({ isDarkMode }), [isDarkMode])
diff --git a/packages/tldraw/src/shape/shape-utils.tsx b/packages/tldraw/src/shape/shape-utils.tsx
index ee775a5a9..1f30a9c72 100644
--- a/packages/tldraw/src/shape/shape-utils.tsx
+++ b/packages/tldraw/src/shape/shape-utils.tsx
@@ -1,4 +1,4 @@
-import { Rectangle, Ellipse, Arrow, Draw, Text, Group } from './shapes'
+import { Rectangle, Ellipse, Arrow, Draw, Text, Group, PostIt } from './shapes'
 import { TLDrawShapeType, TLDrawShape, TLDrawShapeUtil, TLDrawShapeUtils } from '~types'
 
 export const tldrawShapeUtils: TLDrawShapeUtils = {
@@ -8,6 +8,7 @@ export const tldrawShapeUtils: TLDrawShapeUtils = {
   [TLDrawShapeType.Arrow]: new Arrow(),
   [TLDrawShapeType.Text]: new Text(),
   [TLDrawShapeType.Group]: new Group(),
+  [TLDrawShapeType.PostIt]: new PostIt(),
 } as TLDrawShapeUtils
 
 export type ShapeByType<T extends keyof TLDrawShapeUtils> = TLDrawShapeUtils[T]
diff --git a/packages/tldraw/src/shape/shapes/index.ts b/packages/tldraw/src/shape/shapes/index.ts
index 559540f9a..7430dd01e 100644
--- a/packages/tldraw/src/shape/shapes/index.ts
+++ b/packages/tldraw/src/shape/shapes/index.ts
@@ -4,3 +4,4 @@ export * from './rectangle'
 export * from './ellipse'
 export * from './text'
 export * from './group'
+export * from './post-it'
diff --git a/packages/tldraw/src/shape/shapes/post-it/index.ts b/packages/tldraw/src/shape/shapes/post-it/index.ts
new file mode 100644
index 000000000..bcc5c46a8
--- /dev/null
+++ b/packages/tldraw/src/shape/shapes/post-it/index.ts
@@ -0,0 +1 @@
+export * from './post-it'
diff --git a/packages/tldraw/src/shape/shapes/post-it/post-it.spec.tsx b/packages/tldraw/src/shape/shapes/post-it/post-it.spec.tsx
new file mode 100644
index 000000000..50cd911bc
--- /dev/null
+++ b/packages/tldraw/src/shape/shapes/post-it/post-it.spec.tsx
@@ -0,0 +1,7 @@
+import { PostIt } from './post-it'
+
+describe('Post-It shape', () => {
+  it('Creates an instance', () => {
+    new PostIt()
+  })
+})
diff --git a/packages/tldraw/src/shape/shapes/post-it/post-it.tsx b/packages/tldraw/src/shape/shapes/post-it/post-it.tsx
new file mode 100644
index 000000000..28656989a
--- /dev/null
+++ b/packages/tldraw/src/shape/shapes/post-it/post-it.tsx
@@ -0,0 +1,250 @@
+import * as React from 'react'
+import {
+  TLBounds,
+  Utils,
+  Vec,
+  TLTransformInfo,
+  Intersect,
+  TLShapeProps,
+  HTMLContainer,
+} from '@tldraw/core'
+import { defaultStyle, getShapeStyle } from '~shape/shape-styles'
+import { PostItShape, TLDrawShapeUtil, TLDrawShapeType, TLDrawToolType, ArrowShape } from '~types'
+
+// TODO
+// [ ] - Make sure that fill does not extend drawn shape at corners
+
+export class PostIt extends TLDrawShapeUtil<PostItShape, HTMLDivElement> {
+  type = TLDrawShapeType.PostIt as const
+  toolType = TLDrawToolType.Bounds
+  canBind = true
+  pathCache = new WeakMap<number[], string>([])
+
+  defaultProps: PostItShape = {
+    id: 'id',
+    type: TLDrawShapeType.PostIt as const,
+    name: 'PostIt',
+    parentId: 'page',
+    childIndex: 1,
+    point: [0, 0],
+    size: [1, 1],
+    text: '',
+    rotation: 0,
+    style: defaultStyle,
+  }
+
+  shouldRender(prev: PostItShape, next: PostItShape) {
+    return next.size !== prev.size || next.style !== prev.style
+  }
+
+  render = React.forwardRef<HTMLDivElement, TLShapeProps<PostItShape, HTMLDivElement>>(
+    ({ shape, isBinding, meta, events }, ref) => {
+      const [count, setCount] = React.useState(0)
+
+      return (
+        <HTMLContainer ref={ref} {...events}>
+          <div
+            style={{
+              pointerEvents: 'all',
+              backgroundColor: 'rgba(255, 220, 100)',
+              border: '1px solid black',
+              fontFamily: 'sans-serif',
+              height: '100%',
+              width: '100%',
+            }}
+          >
+            <div onPointerDown={(e) => e.preventDefault()}>
+              <input
+                type="textarea"
+                style={{ width: '100%', height: '50%', background: 'none' }}
+                onPointerDown={(e) => e.stopPropagation()}
+              />
+              <button onPointerDown={() => setCount((count) => count + 1)}>{count}</button>
+            </div>
+          </div>
+        </HTMLContainer>
+      )
+    }
+  )
+
+  renderIndicator(shape: PostItShape) {
+    const {
+      style,
+      size: [width, height],
+    } = shape
+
+    const styles = getShapeStyle(style, false)
+    const strokeWidth = +styles.strokeWidth
+
+    const sw = strokeWidth
+
+    return (
+      <rect
+        x={sw / 2}
+        y={sw / 2}
+        rx={1}
+        ry={1}
+        width={Math.max(1, width - sw)}
+        height={Math.max(1, height - sw)}
+      />
+    )
+  }
+
+  getBounds(shape: PostItShape) {
+    const bounds = Utils.getFromCache(this.boundsCache, shape, () => {
+      const [width, height] = shape.size
+      return {
+        minX: 0,
+        maxX: width,
+        minY: 0,
+        maxY: height,
+        width,
+        height,
+      }
+    })
+
+    return Utils.translateBounds(bounds, shape.point)
+  }
+
+  getRotatedBounds(shape: PostItShape) {
+    return Utils.getBoundsFromPoints(Utils.getRotatedCorners(this.getBounds(shape), shape.rotation))
+  }
+
+  getCenter(shape: PostItShape): number[] {
+    return Utils.getBoundsCenter(this.getBounds(shape))
+  }
+
+  getBindingPoint(
+    shape: PostItShape,
+    fromShape: ArrowShape,
+    point: number[],
+    origin: number[],
+    direction: number[],
+    padding: number,
+    anywhere: boolean
+  ) {
+    const bounds = this.getBounds(shape)
+
+    const expandedBounds = Utils.expandBounds(bounds, padding)
+
+    let bindingPoint: number[]
+    let distance: number
+
+    // The point must be inside of the expanded bounding box
+    if (!Utils.pointInBounds(point, expandedBounds)) return
+
+    // The point is inside of the shape, so we'll assume the user is
+    // indicating a specific point inside of the shape.
+    if (anywhere) {
+      if (Vec.dist(point, this.getCenter(shape)) < 12) {
+        bindingPoint = [0.5, 0.5]
+      } else {
+        bindingPoint = Vec.divV(Vec.sub(point, [expandedBounds.minX, expandedBounds.minY]), [
+          expandedBounds.width,
+          expandedBounds.height,
+        ])
+      }
+
+      distance = 0
+    } else {
+      // TODO: What if the shape has a curve? In that case, should we
+      // intersect the circle-from-three-points instead?
+
+      // Find furthest intersection between ray from
+      // origin through point and expanded bounds.
+
+      // TODO: Make this a ray vs rounded rect intersection
+      const intersection = Intersect.ray
+        .bounds(origin, direction, expandedBounds)
+        .filter((int) => int.didIntersect)
+        .map((int) => int.points[0])
+        .sort((a, b) => Vec.dist(b, origin) - Vec.dist(a, origin))[0]
+      // The anchor is a point between the handle and the intersection
+      const anchor = Vec.med(point, intersection)
+
+      // If we're close to the center, snap to the center
+      if (Vec.distanceToLineSegment(point, anchor, this.getCenter(shape)) < 12) {
+        bindingPoint = [0.5, 0.5]
+      } else {
+        // Or else calculate a normalized point
+        bindingPoint = Vec.divV(Vec.sub(anchor, [expandedBounds.minX, expandedBounds.minY]), [
+          expandedBounds.width,
+          expandedBounds.height,
+        ])
+      }
+
+      if (Utils.pointInBounds(point, bounds)) {
+        distance = 16
+      } else {
+        // If the binding point was close to the shape's center, snap to the center
+        // Find the distance between the point and the real bounds of the shape
+        distance = Math.max(
+          16,
+          Utils.getBoundsSides(bounds)
+            .map((side) => Vec.distanceToLineSegment(side[1][0], side[1][1], point))
+            .sort((a, b) => a - b)[0]
+        )
+      }
+    }
+
+    return {
+      point: Vec.clampV(bindingPoint, 0, 1),
+      distance,
+    }
+  }
+
+  hitTestBounds(shape: PostItShape, bounds: TLBounds) {
+    const rotatedCorners = Utils.getRotatedCorners(this.getBounds(shape), shape.rotation)
+
+    return (
+      rotatedCorners.every((point) => Utils.pointInBounds(point, bounds)) ||
+      Intersect.polyline.bounds(rotatedCorners, bounds).length > 0
+    )
+  }
+
+  transform(
+    shape: PostItShape,
+    bounds: TLBounds,
+    { initialShape, transformOrigin, scaleX, scaleY }: TLTransformInfo<PostItShape>
+  ) {
+    if (!shape.rotation && !shape.isAspectRatioLocked) {
+      return {
+        point: Vec.round([bounds.minX, bounds.minY]),
+        size: Vec.round([bounds.width, bounds.height]),
+      }
+    } else {
+      const size = Vec.round(
+        Vec.mul(initialShape.size, Math.min(Math.abs(scaleX), Math.abs(scaleY)))
+      )
+
+      const point = Vec.round([
+        bounds.minX +
+          (bounds.width - shape.size[0]) *
+            (scaleX < 0 ? 1 - transformOrigin[0] : transformOrigin[0]),
+        bounds.minY +
+          (bounds.height - shape.size[1]) *
+            (scaleY < 0 ? 1 - transformOrigin[1] : transformOrigin[1]),
+      ])
+
+      const rotation =
+        (scaleX < 0 && scaleY >= 0) || (scaleY < 0 && scaleX >= 0)
+          ? initialShape.rotation
+            ? -initialShape.rotation
+            : 0
+          : initialShape.rotation
+
+      return {
+        size,
+        point,
+        rotation,
+      }
+    }
+  }
+
+  transformSingle(_shape: PostItShape, bounds: TLBounds) {
+    return {
+      size: Vec.round([bounds.width, bounds.height]),
+      point: Vec.round([bounds.minX, bounds.minY]),
+    }
+  }
+}
diff --git a/packages/tldraw/src/shape/shapes/rectangle/rectangle.tsx b/packages/tldraw/src/shape/shapes/rectangle/rectangle.tsx
index eacec22ff..4b55df950 100644
--- a/packages/tldraw/src/shape/shapes/rectangle/rectangle.tsx
+++ b/packages/tldraw/src/shape/shapes/rectangle/rectangle.tsx
@@ -7,6 +7,7 @@ import {
   Intersect,
   TLShapeProps,
   SVGContainer,
+  HTMLContainer,
 } from '@tldraw/core'
 import getStroke from 'perfect-freehand'
 import { getPerfectDashProps, defaultStyle, getShapeStyle } from '~shape/shape-styles'
@@ -120,7 +121,7 @@ export class Rectangle extends TLDrawShapeUtil<RectangleShape, SVGSVGElement> {
       })
 
       return (
-        <g ref={ref} {...events}>
+        <SVGContainer ref={ref} {...events}>
           {isBinding && (
             <rect
               className="tl-binding-indicator"
@@ -141,7 +142,7 @@ export class Rectangle extends TLDrawShapeUtil<RectangleShape, SVGSVGElement> {
             pointerEvents="all"
           />
           <g pointerEvents="stroke">{paths}</g>
-        </g>
+        </SVGContainer>
       )
     }
   )
@@ -272,19 +273,6 @@ export class Rectangle extends TLDrawShapeUtil<RectangleShape, SVGSVGElement> {
     }
   }
 
-  hitTest(shape: RectangleShape, point: number[]) {
-    return Utils.pointInBounds(point, this.getBounds(shape))
-  }
-
-  hitTestBounds(shape: RectangleShape, bounds: TLBounds) {
-    const rotatedCorners = Utils.getRotatedCorners(this.getBounds(shape), shape.rotation)
-
-    return (
-      rotatedCorners.every((point) => Utils.pointInBounds(point, bounds)) ||
-      Intersect.polyline.bounds(rotatedCorners, bounds).length > 0
-    )
-  }
-
   transform(
     shape: RectangleShape,
     bounds: TLBounds,
diff --git a/packages/tldraw/src/state/tlstate.ts b/packages/tldraw/src/state/tlstate.ts
index 5b1651002..4ce5ba894 100644
--- a/packages/tldraw/src/state/tlstate.ts
+++ b/packages/tldraw/src/state/tlstate.ts
@@ -2394,6 +2394,8 @@ export class TLDrawState extends StateManager<Data> {
             }
 
             // Start a brush session
+            // TODO: Don't start a brush session right away: we might
+            // be "maybe brushing" or "maybe double clicking"
             this.startBrushSession(this.getPagePoint(info.point))
             break
           }
@@ -2407,13 +2409,9 @@ export class TLDrawState extends StateManager<Data> {
     // Unused
     switch (this.appState.status.current) {
       case TLDrawStatus.Idle: {
-        switch (this.appState.activeTool) {
-          case TLDrawShapeType.Text: {
-            // Create a text shape
-            this.createActiveToolShape(info.point)
-            break
-          }
-        }
+        // TODO: Create a text shape
+        // this.selectTool(TLDrawShapeType.Text)
+        // this.createActiveToolShape(info.point)
         break
       }
     }
diff --git a/packages/tldraw/src/types.ts b/packages/tldraw/src/types.ts
index 03ea0d9ef..0cae8619c 100644
--- a/packages/tldraw/src/types.ts
+++ b/packages/tldraw/src/types.ts
@@ -134,6 +134,7 @@ export enum TLDrawToolType {
 }
 
 export enum TLDrawShapeType {
+  PostIt = 'post-it',
   Ellipse = 'ellipse',
   Rectangle = 'rectangle',
   Draw = 'draw',
@@ -191,6 +192,12 @@ export interface GroupShape extends TLDrawBaseShape {
   children: string[]
 }
 
+export interface PostItShape extends TLDrawBaseShape {
+  type: TLDrawShapeType.PostIt
+  size: number[]
+  text: string
+}
+
 export type TLDrawShape =
   | RectangleShape
   | EllipseShape
@@ -198,6 +205,7 @@ export type TLDrawShape =
   | ArrowShape
   | TextShape
   | GroupShape
+  | PostItShape
 
 export abstract class TLDrawShapeUtil<
   T extends TLDrawShape,