diff --git a/include/labwc.h b/include/labwc.h
index da07a3e1..b60d7647 100644
--- a/include/labwc.h
+++ b/include/labwc.h
@@ -160,7 +160,6 @@ struct seat {
 		struct wlr_scene_tree *icons;
 	} drag;
 
-	/* Private use by overlay.c */
 	struct overlay overlay;
 	/* Used to prevent region snapping when starting a move with A-Left */
 	bool region_prevent_snap;
diff --git a/include/overlay.h b/include/overlay.h
index bd9b0050..963da8e7 100644
--- a/include/overlay.h
+++ b/include/overlay.h
@@ -14,23 +14,23 @@ struct overlay {
 		struct multi_rect *pixman_rect;
 	};
 
-	/* For caching previously shown overlay */
+	/* Represents currently shown or delayed overlay */
 	struct {
+		/* Region overlay */
 		struct region *region;
+
+		/* Snap-to-edge overlay */
 		enum view_edge edge;
+		struct output *output;
 	} active;
 
 	/* For delayed snap-to-edge overlay */
 	struct wl_event_source *timer;
-	struct {
-		struct view *view;
-		struct wlr_box box;
-	} pending;
 };
 
-/* Calls overlay_hide() internally if the view is not to be snapped */
-void overlay_show(struct seat *seat, struct view *view);
-/* This function must be called when grabbed view is destroyed */
+/* Calls overlay_hide() internally if there's no overlay to show */
+void overlay_show(struct seat *seat);
+/* This function must be called when server->grabbed_view is destroyed */
 void overlay_hide(struct seat *seat);
 
 #endif
diff --git a/src/input/cursor.c b/src/input/cursor.c
index 04334389..23309f0e 100644
--- a/src/input/cursor.c
+++ b/src/input/cursor.c
@@ -225,7 +225,7 @@ process_cursor_move(struct server *server, uint32_t time)
 	resistance_move_apply(view, &dx, &dy);
 	view_move(view, dx, dy);
 
-	overlay_show(&server->seat, view);
+	overlay_show(&server->seat);
 }
 
 static void
diff --git a/src/input/keyboard.c b/src/input/keyboard.c
index fb7ac204..08d5a4b3 100644
--- a/src/input/keyboard.c
+++ b/src/input/keyboard.c
@@ -80,6 +80,8 @@ keyboard_modifiers_notify(struct wl_listener *listener, void *data)
 	if (server->input_mode == LAB_INPUT_STATE_MOVE) {
 		/* Any change to the modifier state re-enable region snap */
 		seat->region_prevent_snap = false;
+		/* Pressing/releasing modifier key may show/hide region overlay */
+		overlay_show(seat);
 	}
 
 	if (server->osd_state.cycle_view
@@ -97,10 +99,6 @@ keyboard_modifiers_notify(struct wl_listener *listener, void *data)
 			}
 		}
 	}
-	/* Pressing/releasing modifier key may show/hide region overlay */
-	if (server->grabbed_view) {
-		overlay_show(seat, server->grabbed_view);
-	}
 
 	if (!input_method_keyboard_grab_forward_modifiers(keyboard)) {
 		wlr_seat_keyboard_notify_modifiers(seat->seat,
diff --git a/src/output.c b/src/output.c
index 605b3acb..e81abaee 100644
--- a/src/output.c
+++ b/src/output.c
@@ -102,13 +102,17 @@ static void
 output_destroy_notify(struct wl_listener *listener, void *data)
 {
 	struct output *output = wl_container_of(listener, output, destroy);
+	struct seat *seat = &output->server->seat;
 	regions_evacuate_output(output);
-	regions_destroy(&output->server->seat, &output->regions);
+	regions_destroy(seat, &output->regions);
+	if (seat->overlay.active.output == output) {
+		overlay_hide(seat);
+	}
 	wl_list_remove(&output->link);
 	wl_list_remove(&output->frame.link);
 	wl_list_remove(&output->destroy.link);
 	wl_list_remove(&output->request_state.link);
-	seat_output_layout_changed(&output->server->seat);
+	seat_output_layout_changed(seat);
 
 	for (size_t i = 0; i < ARRAY_SIZE(output->layer_tree); i++) {
 		wlr_scene_node_destroy(&output->layer_tree[i]->node);
diff --git a/src/overlay.c b/src/overlay.c
index f2bc373a..3f517744 100644
--- a/src/overlay.c
+++ b/src/overlay.c
@@ -32,24 +32,16 @@ create_overlay(struct seat *seat)
 }
 
 static void
-cancel_pending_overlay(struct overlay *overlay)
+show_overlay(struct seat *seat, struct wlr_box *box)
 {
-	if (overlay->timer) {
-		wl_event_source_timer_update(overlay->timer, 0);
-	}
-	overlay->pending.view = NULL;
-	overlay->pending.box = (struct wlr_box){0};
-}
+	struct server *server = seat->server;
+	struct view *view = server->grabbed_view;
+	assert(view);
 
-static void
-show_overlay(struct seat *seat, struct view *view, struct wlr_box *box)
-{
 	if (!seat->overlay.tree) {
 		create_overlay(seat);
 	}
 
-	/* Update overlay */
-	struct server *server = seat->server;
 	struct wlr_scene_node *node = &seat->overlay.tree->node;
 	if (!wlr_renderer_is_pixman(server->renderer)) {
 		/* Hardware assisted rendering: Half transparent overlay */
@@ -66,19 +58,22 @@ show_overlay(struct seat *seat, struct view *view, struct wlr_box *box)
 	}
 	wlr_scene_node_set_position(node, box->x, box->y);
 	wlr_scene_node_set_enabled(node, true);
-
-	cancel_pending_overlay(&seat->overlay);
 }
 
 static void
-show_region_overlay(struct seat *seat, struct view *view, struct region *region)
+show_region_overlay(struct seat *seat, struct region *region)
 {
 	if (region == seat->overlay.active.region) {
 		return;
 	}
 	seat->overlay.active.region = region;
 	seat->overlay.active.edge = VIEW_EDGE_INVALID;
-	show_overlay(seat, view, &region->geo);
+	seat->overlay.active.output = NULL;
+	if (seat->overlay.timer) {
+		wl_event_source_timer_update(seat->overlay.timer, 0);
+	}
+
+	show_overlay(seat, &region->geo);
 }
 
 /* TODO: share logic with view_get_edge_snap_box() */
@@ -109,37 +104,40 @@ static struct wlr_box get_edge_snap_box(enum view_edge edge, struct output *outp
 }
 
 static int
-handle_overlay_timeout(void *data)
+handle_edge_overlay_timeout(void *data)
 {
 	struct seat *seat = data;
-	show_overlay(seat, seat->overlay.pending.view,
-		&seat->overlay.pending.box);
+	assert(seat->overlay.active.edge != VIEW_EDGE_INVALID
+		&& seat->overlay.active.output);
+	struct wlr_box box = get_edge_snap_box(seat->overlay.active.edge,
+		seat->overlay.active.output);
+	show_overlay(seat, &box);
 	return 0;
 }
 
 static void
-show_edge_overlay_delayed(struct seat *seat, struct view *view,
-		enum view_edge edge, struct output *output)
+show_edge_overlay_delayed(struct seat *seat, enum view_edge edge,
+		struct output *output)
 {
-	if (seat->overlay.active.edge == edge) {
+	if (seat->overlay.active.edge == edge
+			&& seat->overlay.active.output == output) {
 		return;
 	}
-	seat->overlay.active.edge = edge;
 	seat->overlay.active.region = NULL;
+	seat->overlay.active.edge = edge;
+	seat->overlay.active.output = output;
 
-	seat->overlay.pending.view = view;
-	seat->overlay.pending.box = get_edge_snap_box(edge, output);
 	if (!seat->overlay.timer) {
 		seat->overlay.timer = wl_event_loop_add_timer(
 			seat->server->wl_event_loop,
-			handle_overlay_timeout, seat);
+			handle_edge_overlay_timeout, seat);
 	}
 	/* Delay for 150ms */
 	wl_event_source_timer_update(seat->overlay.timer, 150);
 }
 
 void
-overlay_show(struct seat *seat, struct view *view)
+overlay_show(struct seat *seat)
 {
 	struct server *server = seat->server;
 
@@ -147,7 +145,7 @@ overlay_show(struct seat *seat, struct view *view)
 	if (regions_should_snap(server)) {
 		struct region *region = regions_from_cursor(server);
 		if (region) {
-			show_region_overlay(seat, view, region);
+			show_region_overlay(seat, region);
 			return;
 		}
 	}
@@ -161,7 +159,7 @@ overlay_show(struct seat *seat, struct view *view)
 		 * flickering when dragging view across output edges in
 		 * multi-monitor setup.
 		 */
-		show_edge_overlay_delayed(seat, view, edge, output);
+		show_edge_overlay_delayed(seat, edge, output);
 		return;
 	}
 
@@ -171,9 +169,12 @@ overlay_show(struct seat *seat, struct view *view)
 void
 overlay_hide(struct seat *seat)
 {
-	cancel_pending_overlay(&seat->overlay);
-	seat->overlay.active.edge = VIEW_EDGE_INVALID;
 	seat->overlay.active.region = NULL;
+	seat->overlay.active.edge = VIEW_EDGE_INVALID;
+	seat->overlay.active.output = NULL;
+	if (seat->overlay.timer) {
+		wl_event_source_timer_update(seat->overlay.timer, 0);
+	}
 
 	if (!seat->overlay.tree) {
 		return;
diff --git a/src/regions.c b/src/regions.c
index 159d82d9..1b265fe3 100644
--- a/src/regions.c
+++ b/src/regions.c
@@ -164,7 +164,7 @@ regions_destroy(struct seat *seat, struct wl_list *regions)
 	wl_list_for_each_safe(region, region_tmp, regions, link) {
 		wl_list_remove(&region->link);
 		if (seat && seat->overlay.active.region == region) {
-			seat->overlay.active.region = NULL;
+			overlay_hide(seat);
 		}
 		zfree(region->name);
 		zfree(region);