diff --git a/include/labwc.h b/include/labwc.h
index d5ff2d95..2d9cb239 100644
--- a/include/labwc.h
+++ b/include/labwc.h
@@ -154,6 +154,7 @@ struct server {
 	uint32_t resize_edges;
 
 	struct wlr_scene_tree *osd_tree;
+	struct wlr_scene_tree *menu_tree;
 
 	struct wl_list outputs;
 	struct wl_listener new_output;
@@ -175,8 +176,7 @@ struct server {
 
 	struct theme *theme;
 
-	struct menu *rootmenu;
-	struct menu *windowmenu;
+	struct menu *menu_current;
 };
 
 struct output {
diff --git a/include/menu/menu.h b/include/menu/menu.h
index 9cdc8c6f..a5ec7dd8 100644
--- a/include/menu/menu.h
+++ b/include/menu/menu.h
@@ -3,19 +3,29 @@
 #define __LABWC_MENU_H
 
 #include <wayland-server.h>
-#include <wlr/render/wlr_renderer.h>
+
+struct lab_data_buffer;
+struct wlr_scene_node;
+
+enum menu_align {
+	LAB_MENU_OPEN_AUTO   = 0,
+	LAB_MENU_OPEN_LEFT   = 1 << 0,
+	LAB_MENU_OPEN_RIGHT  = 1 << 1,
+	LAB_MENU_OPEN_TOP    = 1 << 2,
+	LAB_MENU_OPEN_BOTTOM = 1 << 3,
+};
+
+struct menu_scene {
+	struct lab_data_buffer *buffer;
+	struct wlr_scene_node *text;
+	struct wlr_scene_node *background;
+};
 
 struct menuitem {
 	struct wl_list actions;
 	struct menu *submenu;
-	struct wlr_box box;
-	struct {
-		struct wlr_texture *active;
-		struct wlr_texture *inactive;
-		int offset_x;
-		int offset_y;
-	} texture;
-	bool selected;
+	struct menu_scene normal;
+	struct menu_scene selected;
 	struct wl_list link; /* menu::menuitems */
 };
 
@@ -23,27 +33,62 @@ struct menuitem {
 struct menu {
 	char *id;
 	char *label;
-	bool visible;
+	int item_height;
 	struct menu *parent;
-	struct wlr_box box;
+	struct {
+		int width;
+		int height;
+	} size;
 	struct wl_list menuitems;
 	struct server *server;
+	struct {
+		struct menu *menu;
+		struct menuitem *item;
+	} selection;
+	struct wlr_scene_tree *scene_tree;
 };
 
 void menu_init_rootmenu(struct server *server);
 void menu_init_windowmenu(struct server *server);
 void menu_finish(void);
 
-/* menu_move - move to position (x, y) */
-void menu_move(struct menu *menu, int x, int y);
+/**
+ * menu_get_by_id - get menu by id
+ *
+ * @id id string defined in menu.xml like "root-menu"
+ */
+struct menu *menu_get_by_id(const char *id);
 
-/* menu_set_selected - select item at (x, y) */
-void menu_set_selected(struct menu *menu, int x, int y);
+/**
+ * menu_open - open menu on position (x, y)
+ *
+ * This function will close server->menu_current, open the
+ * new menu and assign @menu to server->menu_current.
+ *
+ * Additionally, server->input_mode wil be set to LAB_INPUT_STATE_MENU.
+ */
+void menu_open(struct menu *menu, int x, int y);
 
-/* menu_action_selected - select item at (x, y) */
-void menu_action_selected(struct server *server, struct menu *menu);
+/**
+ * menu_process_cursor_motion
+ *
+ * - handles hover effects
+ * - may open/close submenus
+ */
+void menu_process_cursor_motion(struct menu *menu, struct wlr_scene_node *node);
+
+/**
+ * menu_call_actions - call actions associated with a menu entry
+ *
+ * If actions are found, server->menu_current will be closed and set to NULL
+ * Returns true if handled
+ */
+bool menu_call_actions(struct menu *menu, struct wlr_scene_node *node);
+
+/* menu_close - close menu */
+void menu_close(struct menu *menu);
 
 /* menu_reconfigure - reload theme and content */
-void menu_reconfigure(struct server *server, struct menu *menu);
+void menu_reconfigure(struct server *server);
 
 #endif /* __LABWC_MENU_H */
diff --git a/src/action.c b/src/action.c
index 23d3dcf3..65aee0dc 100644
--- a/src/action.c
+++ b/src/action.c
@@ -91,19 +91,15 @@ void action_list_free(struct wl_list *action_list) {
 static void
 show_menu(struct server *server, struct view *view, const char *menu_name)
 {
-	struct menu *menu = NULL;
 	bool force_menu_top_left = false;
-
-	if (!menu_name) {
+	struct menu *menu = menu_get_by_id(menu_name);
+	if (!menu) {
 		return;
 	}
-
-	if (!strcasecmp(menu_name, "root-menu")) {
-		menu = server->rootmenu;
-		server->windowmenu->visible = false;
-	} else if (!strcasecmp(menu_name, "client-menu") && view) {
-		menu = server->windowmenu;
-		server->rootmenu->visible = false;
+	if (!strcasecmp(menu_name, "client-menu")) {
+		if (!view) {
+			return;
+		}
 		enum ssd_part_type type = ssd_at(view, server->seat.cursor->x,
 			server->seat.cursor->y);
 		if (type == LAB_SSD_BUTTON_WINDOW_MENU) {
@@ -113,13 +109,8 @@ show_menu(struct server *server, struct view *view, const char *menu_name)
 		} else {
 			force_menu_top_left = true;
 		}
-	} else {
-		return;
 	}
 
-	menu->visible = true;
-	server->input_mode = LAB_INPUT_STATE_MENU;
-
 	int x, y;
 	if (force_menu_top_left) {
 		x = view->x;
@@ -128,8 +119,7 @@ show_menu(struct server *server, struct view *view, const char *menu_name)
 		x = server->seat.cursor->x;
 		y = server->seat.cursor->y;
 	}
-	menu_move(menu, x, y);
-	damage_all_outputs(server);
+	menu_open(menu, x, y);
 }
 
 static struct view *
diff --git a/src/cursor.c b/src/cursor.c
index 633b0c0a..adb68d3f 100644
--- a/src/cursor.c
+++ b/src/cursor.c
@@ -41,7 +41,7 @@ request_cursor_notify(struct wl_listener *listener, void *data)
 {
 	struct seat *seat = wl_container_of(listener, seat, request_cursor);
 	/*
-	 * This event is rasied by the seat when a client provides a cursor
+	 * This event is raised by the seat when a client provides a cursor
 	 * image
 	 */
 	struct wlr_seat_pointer_request_set_cursor_event *event = data;
@@ -187,19 +187,6 @@ process_cursor_motion(struct server *server, uint32_t time)
 	} else if (server->input_mode == LAB_INPUT_STATE_RESIZE) {
 		process_cursor_resize(server, time);
 		return;
-	} else if (server->input_mode == LAB_INPUT_STATE_MENU) {
-		struct menu *menu = NULL;
-		if (server->rootmenu->visible) {
-			menu = server->rootmenu;
-		} else if (server->windowmenu->visible) {
-			menu = server->windowmenu;
-		} else {
-			return;
-		}
-		menu_set_selected(menu,
-			server->seat.cursor->x, server->seat.cursor->y);
-		damage_all_outputs(server);
-		return;
 	}
 
 	/* Otherwise, find view under the pointer and send the event along */
@@ -239,6 +226,10 @@ process_cursor_motion(struct server *server, uint32_t time)
 		}
 	}
 
+	if (view_area == LAB_SSD_MENU) {
+		menu_process_cursor_motion(server->menu_current, node);
+		return;
+	}
 
 	if (view && rc.focus_follow_mouse) {
 		desktop_focus_and_activate_view(&server->seat, view);
@@ -648,11 +639,18 @@ cursor_button(struct wl_listener *listener, void *data)
 	}
 
 	if (server->input_mode == LAB_INPUT_STATE_MENU) {
-		if (server->rootmenu->visible) {
-			menu_action_selected(server, server->rootmenu);
-		} else if (server->windowmenu->visible) {
-			menu_action_selected(server, server->windowmenu);
+		if (!server->menu_current) {
+			wlr_log(WLR_ERROR,
+				"on mouse button input_mode STATE_MENU but no current menu");
+		} else if (view_area != LAB_SSD_MENU) {
+			menu_close(server->menu_current);
+			server->menu_current = NULL;
+		} else if (!menu_call_actions(server->menu_current, node)) {
+			/* Action was not successfull, maybe this menu has a submenu */
+			return;
 		}
+		/* TODO: following causes stray release */
+		/* Maybe add LAB_INPUT_STATE_IGNORE_MOUSE_RELEASE ? */
 		server->input_mode = LAB_INPUT_STATE_PASSTHROUGH;
 		cursor_rebase(&server->seat, event->time_msec);
 		return;
diff --git a/src/debug.c b/src/debug.c
index 46ff3723..8d36daf0 100644
--- a/src/debug.c
+++ b/src/debug.c
@@ -76,4 +76,12 @@ debug_dump_scene(struct server *server)
 			dump_tree(node, 0, node->state.x, node->state.y);
 		}
 	}
+
+	printf(":: osd_tree ::\n");
+	node = &server->osd_tree->node;
+	dump_tree(node, 0, node->state.x, node->state.y);
+
+	printf(":: menu_tree ::\n");
+	node = &server->menu_tree->node;
+	dump_tree(node, 0, node->state.x, node->state.y);
 }
diff --git a/src/desktop.c b/src/desktop.c
index 7b6afa0a..d17544dd 100644
--- a/src/desktop.c
+++ b/src/desktop.c
@@ -282,12 +282,15 @@ desktop_node_and_view_at(struct server *server, double lx, double ly,
 		*view_area = LAB_SSD_NONE;
 	}
 	struct wlr_scene_node *osd = &server->osd_tree->node;
+	struct wlr_scene_node *menu = &server->menu_tree->node;
 	while (node && !node->data) {
 		if (node == osd) {
 			*view_area = LAB_SSD_OSD;
 			return NULL;
+		} else if (node == menu) {
+			*view_area = LAB_SSD_MENU;
+			return NULL;
 		}
-		/* TODO: node == &server->menu_tree->node */
 		node = node->parent;
 	}
 	if (!node) {
diff --git a/src/menu/menu.c b/src/menu/menu.c
index 5dc768c1..beb85c58 100644
--- a/src/menu/menu.c
+++ b/src/menu/menu.c
@@ -19,6 +19,7 @@
 #include "menu/menu.h"
 #include "theme.h"
 #include "action.h"
+#include "buffer.h"
 
 #define MENUWIDTH (110)
 #define MENU_ITEM_PADDING_Y (4)
@@ -51,12 +52,19 @@ menu_create(struct server *server, const char *id, const char *label)
 	menu->label = strdup(label);
 	menu->parent = current_menu;
 	menu->server = server;
+	menu->size.width = MENUWIDTH;
+	/* menu->size.height will be kept up to date by adding items */
+	menu->scene_tree = wlr_scene_tree_create(&server->menu_tree->node);
+	wlr_scene_node_set_enabled(&menu->scene_tree->node, false);
 	return menu;
 }
 
-static struct menu *
-get_menu_by_id(const char *id)
+struct menu *
+menu_get_by_id(const char *id)
 {
+	if (!id) {
+		return NULL;
+	}
 	struct menu *menu;
 	for (int i = 0; i < nr_menus; ++i) {
 		menu = menus + i;
@@ -74,32 +82,58 @@ item_create(struct menu *menu, const char *text)
 	if (!menuitem) {
 		return NULL;
 	}
-/* FIXME */
-#if 0
 	struct server *server = menu->server;
 	struct theme *theme = server->theme;
-#endif
 	struct font font = {
 		.name = rc.font_name_menuitem,
 		.size = rc.font_size_menuitem,
 	};
 
-	menuitem->box.width = MENUWIDTH;
-	menuitem->box.height = font_height(&font) + 2 * MENU_ITEM_PADDING_Y;
+	if (!menu->item_height) {
+		menu->item_height = font_height(&font) + 2 * MENU_ITEM_PADDING_Y;
+	}
 
-/* FIXME */
-#if 0
+	int x, y;
 	int item_max_width = MENUWIDTH - 2 * MENU_ITEM_PADDING_X;
-	font_texture_create(server, &menuitem->texture.active, item_max_width,
-		text, &font, theme->menu_items_active_text_color);
-	font_texture_create(server, &menuitem->texture.inactive, item_max_width,
-		text, &font, theme->menu_items_text_color);
+	struct wlr_scene_node *parent = &menu->scene_tree->node;
 
-	/* center align vertically */
-	menuitem->texture.offset_y =
-		(menuitem->box.height - menuitem->texture.active->height) / 2;
-	menuitem->texture.offset_x = MENU_ITEM_PADDING_X;
-#endif
+	/* Font buffer */
+	font_buffer_create(&menuitem->normal.buffer, item_max_width,
+		text, &font, theme->menu_items_text_color);
+	font_buffer_create(&menuitem->selected.buffer, item_max_width,
+		text, &font, theme->menu_items_active_text_color);
+
+	/* Item background nodes */
+	menuitem->normal.background = &wlr_scene_rect_create(parent,
+		MENUWIDTH, menu->item_height,
+		theme->menu_items_bg_color)->node;
+	menuitem->selected.background = &wlr_scene_rect_create(parent,
+		MENUWIDTH, menu->item_height,
+		theme->menu_items_active_bg_color)->node;
+
+	/* Font nodes */
+	menuitem->normal.text = &wlr_scene_buffer_create(
+		menuitem->normal.background, &menuitem->normal.buffer->base)->node;
+	menuitem->selected.text = &wlr_scene_buffer_create(
+		menuitem->selected.background, &menuitem->selected.buffer->base)->node;
+
+	/* Center font nodes */
+	y = (menu->item_height - menuitem->normal.buffer->base.height) / 2;
+	x = MENU_ITEM_PADDING_X;
+	wlr_scene_node_set_position(menuitem->normal.text, x, y);
+	wlr_scene_node_set_position(menuitem->selected.text, x, y);
+
+	/* Position the item in relation to its menu */
+	int item_count = wl_list_length(&menu->menuitems);
+	y = item_count * menu->item_height;
+	wlr_scene_node_set_position(menuitem->normal.background, 0, y);
+	wlr_scene_node_set_position(menuitem->selected.background, 0, y);
+
+	/* Hide selected state */
+	wlr_scene_node_set_enabled(menuitem->selected.background, false);
+
+	/* Update menu extends */
+	menu->size.height = (item_count + 1) * menu->item_height;
 
 	wl_list_insert(&menu->menuitems, &menuitem->link);
 	wl_list_init(&menuitem->actions);
@@ -210,7 +244,7 @@ handle_menu_element(xmlNode *n, struct server *server)
 		current_menu = current_menu->parent;
 		--menu_level;
 	} else if (id) {
-		struct menu *menu = get_menu_by_id(id);
+		struct menu *menu = menu_get_by_id(id);
 		if (menu) {
 			current_item = item_create(current_menu, menu->label);
 			current_item->submenu = menu;
@@ -286,78 +320,127 @@ err:
 	free(b.buf);
 }
 
+static int
+menu_get_full_width(struct menu *menu)
+{
+	int width = menu->size.width - menu->server->theme->menu_overlap_x;
+	int child_width;
+	int max_child_width = 0;
+	struct menuitem *item;
+	wl_list_for_each_reverse(item, &menu->menuitems, link) {
+		if (!item->submenu) {
+			continue;
+		}
+		child_width = menu_get_full_width(item->submenu);
+		if (child_width > max_child_width) {
+			max_child_width = child_width;
+		}
+	}
+	return width + max_child_width;
+}
+
 static void
-menu_configure(struct menu *menu, int x, int y)
+menu_configure(struct menu *menu, int lx, int ly, enum menu_align align)
 {
 	struct theme *theme = menu->server->theme;
 
-	menu->box.x = x;
-	menu->box.y = y;
+	/* Get output local coordinates + output usable area */
+	double ox = lx;
+	double oy = ly;
+	struct wlr_output *wlr_output = wlr_output_layout_output_at(
+		menu->server->output_layout, lx, ly);
+	wlr_output_layout_output_coords(menu->server->output_layout,
+		wlr_output, &ox, &oy);
+	struct wlr_box usable = output_usable_area_from_cursor_coords(menu->server);
 
-	int offset = 0;
-	struct menuitem *menuitem;
-	wl_list_for_each_reverse (menuitem, &menu->menuitems, link) {
-		menuitem->box.x = menu->box.x;
-		menuitem->box.y = menu->box.y + offset;
-		offset += menuitem->box.height;
-		if (menuitem->submenu) {
-			menu_configure(menuitem->submenu, menuitem->box.x
-				+ MENUWIDTH - theme->menu_overlap_x,
-				menuitem->box.y + theme->menu_overlap_y);
+	if (align == LAB_MENU_OPEN_AUTO) {
+		int full_width = menu_get_full_width(menu);
+		if (ox + full_width > usable.width) {
+			align = LAB_MENU_OPEN_LEFT;
+		} else {
+			align = LAB_MENU_OPEN_RIGHT;
 		}
 	}
 
-	menu->box.width = MENUWIDTH;
-	menu->box.height = offset;
+	if (oy + menu->size.height > usable.height) {
+		align &= ~LAB_MENU_OPEN_BOTTOM;
+		align |= LAB_MENU_OPEN_TOP;
+	} else {
+		align &= ~LAB_MENU_OPEN_TOP;
+		align |= LAB_MENU_OPEN_BOTTOM;
+	}
+
+	if (align & LAB_MENU_OPEN_LEFT) {
+		lx -= MENUWIDTH - theme->menu_overlap_x;
+	}
+	if (align & LAB_MENU_OPEN_TOP) {
+		ly -= menu->size.height;
+		if (menu->parent) {
+			/* For submenus adjust y to bottom left corner */
+			ly += menu->item_height;
+		}
+	}
+	wlr_scene_node_set_position(&menu->scene_tree->node, lx, ly);
+
+	int rel_y;
+	int new_lx, new_ly;
+	struct menuitem *item;
+	wl_list_for_each_reverse(item, &menu->menuitems, link) {
+		if (!item->submenu) {
+			continue;
+		}
+		if (align & LAB_MENU_OPEN_RIGHT) {
+			new_lx = lx + MENUWIDTH - theme->menu_overlap_x;
+		} else {
+			new_lx = lx;
+		}
+		rel_y = item->normal.background->state.y;
+		new_ly = ly + rel_y - theme->menu_overlap_y;
+		menu_configure(item->submenu, new_lx, new_ly, align);
+	}
 }
 
 void
 menu_init_rootmenu(struct server *server)
 {
 	parse_xml("menu.xml", server);
-	server->rootmenu = get_menu_by_id("root-menu");
+	struct menu *menu = menu_get_by_id("root-menu");
 
 	/* Default menu if no menu.xml found */
-	if (!server->rootmenu) {
+	if (!menu) {
 		current_menu = NULL;
-		server->rootmenu = menu_create(server, "root-menu", "");
+		menu = menu_create(server, "root-menu", "");
 	}
-	if (wl_list_empty(&server->rootmenu->menuitems)) {
-		current_item = item_create(server->rootmenu, "Reconfigure");
+	if (wl_list_empty(&menu->menuitems)) {
+		current_item = item_create(menu, "Reconfigure");
 		fill_item("name.action", "Reconfigure");
-		current_item = item_create(server->rootmenu, "Exit");
+		current_item = item_create(menu, "Exit");
 		fill_item("name.action", "Exit");
 	}
-
-	server->rootmenu->visible = true;
-	menu_configure(server->rootmenu, 100, 100);
 }
 
 void
 menu_init_windowmenu(struct server *server)
 {
-	server->windowmenu = get_menu_by_id("client-menu");
+	struct menu *menu = menu_get_by_id("client-menu");
 
 	/* Default menu if no menu.xml found */
-	if (!server->windowmenu) {
+	if (!menu) {
 		current_menu = NULL;
-		server->windowmenu = menu_create(server, "client-menu", "");
+		menu = menu_create(server, "client-menu", "");
 	}
-	if (wl_list_empty(&server->windowmenu->menuitems)) {
-		current_item = item_create(server->windowmenu, "Minimize");
+	if (wl_list_empty(&menu->menuitems)) {
+		current_item = item_create(menu, "Minimize");
 		fill_item("name.action", "Iconify");
-		current_item = item_create(server->windowmenu, "Maximize");
+		current_item = item_create(menu, "Maximize");
 		fill_item("name.action", "ToggleMaximize");
-		current_item = item_create(server->windowmenu, "Fullscreen");
+		current_item = item_create(menu, "Fullscreen");
 		fill_item("name.action", "ToggleFullscreen");
-		current_item = item_create(server->windowmenu, "Decorations");
+		current_item = item_create(menu, "Decorations");
 		fill_item("name.action", "ToggleDecorations");
-		current_item = item_create(server->windowmenu, "Close");
+		current_item = item_create(menu, "Close");
 		fill_item("name.action", "Close");
 	}
-
-	server->windowmenu->visible = true;
-	menu_configure(server->windowmenu, 100, 100);
 }
 
 void
@@ -370,104 +453,157 @@ menu_finish(void)
 		wl_list_for_each_safe(item, next, &menu->menuitems, link) {
 			wl_list_remove(&item->link);
 			action_list_free(&item->actions);
+			wlr_scene_node_destroy(item->normal.text);
+			wlr_scene_node_destroy(item->selected.text);
+			wlr_scene_node_destroy(item->normal.background);
+			wlr_scene_node_destroy(item->selected.background);
+			wlr_buffer_drop(&item->normal.buffer->base);
+			wlr_buffer_drop(&item->selected.buffer->base);
 			free(item);
 		}
+		wlr_scene_node_destroy(&menu->scene_tree->node);
 	}
 	zfree(menus);
 	alloc_menus = 0;
 	nr_menus = 0;
 }
 
+/* Sets selection (or clears selection if passing NULL) */
+static void
+menu_set_selection(struct menu *menu, struct menuitem *item)
+{
+	/* Clear old selection */
+	if (menu->selection.item) {
+		wlr_scene_node_set_enabled(
+			menu->selection.item->normal.background, true);
+		wlr_scene_node_set_enabled(
+			menu->selection.item->selected.background, false);
+	}
+	/* Set new selection */
+	if (item) {
+		wlr_scene_node_set_enabled(item->normal.background, false);
+		wlr_scene_node_set_enabled(item->selected.background, true);
+	}
+	menu->selection.item = item;
+}
+
 static void
 close_all_submenus(struct menu *menu)
 {
 	struct menuitem *item;
 	wl_list_for_each (item, &menu->menuitems, link) {
 		if (item->submenu) {
-			item->submenu->visible = false;
+			wlr_scene_node_set_enabled(&item->submenu->scene_tree->node, false);
 			close_all_submenus(item->submenu);
 		}
 	}
+	menu->selection.menu = NULL;
 }
 
 void
-menu_move(struct menu *menu, int x, int y)
+menu_open(struct menu *menu, int x, int y)
 {
 	assert(menu);
+	if (menu->server->menu_current) {
+		menu_close(menu->server->menu_current);
+	}
 	close_all_submenus(menu);
-	menu_configure(menu, x, y);
+	menu_set_selection(menu, NULL);
+	menu_configure(menu, x, y, LAB_MENU_OPEN_AUTO);
+	wlr_scene_node_set_enabled(&menu->scene_tree->node, true);
+	menu->server->menu_current = menu;
+	menu->server->input_mode = LAB_INPUT_STATE_MENU;
 }
 
-/* TODO: consider renaming function to menu_process_cursor_motion */
 void
-menu_set_selected(struct menu *menu, int x, int y)
+menu_process_cursor_motion(struct menu *menu, struct wlr_scene_node *node)
 {
-	if (!menu->visible) {
+	if (!node) {
+		wlr_log(WLR_ERROR, "menu_process_cursor_motion() node == NULL");
 		return;
 	}
+	assert(menu);
+
+	/* TODO: this would be much easier if we could use node->data */
 
 	struct menuitem *item;
 	wl_list_for_each (item, &menu->menuitems, link) {
-		item->selected = wlr_box_contains_point(&item->box, x, y);
-
-		if (!item->selected) {
-			if (item->submenu && item->submenu->visible) {
-				/*
-				 * Handle the case where a submenu is already
-				 * open.
-				 */
-				item->selected = true;
-				menu_set_selected(item->submenu, x, y);
-			}
-			continue;
+		if (node == item->selected.background
+				|| node->parent == item->selected.background) {
+			/* We are on an already selected item */
+			return;
 		}
-
-		/* We're now on an item that has mouse-focus */
-		if (item->submenu) {
-			if (item->submenu->visible) {
-				/* do nothing - submenu already open */
-			} else {
-				/* open submenu */
-				close_all_submenus(menu);
-				item->submenu->visible = true;
-				menu_set_selected(item->submenu, x, y);
+		if (node == item->normal.background
+				|| node->parent == item->normal.background) {
+			/* We are on an item that has new mouse-focus */
+			menu_set_selection(menu, item);
+			if (menu->selection.menu) {
+				/* Close old submenu tree */
+				menu_close(menu->selection.menu);
 			}
-		} else {
-			close_all_submenus(menu);
+			if (item->submenu) {
+				/* And open the new one */
+				wlr_scene_node_set_enabled(
+					&item->submenu->scene_tree->node, true);
+			}
+			menu->selection.menu = item->submenu;
+			return;
+		}
+		if (item->submenu && item->submenu == menu->selection.menu) {
+			menu_process_cursor_motion(item->submenu, node);
 		}
 	}
 }
 
-static void
-menu_clear_selection(struct menu *menu)
+
+bool
+menu_call_actions(struct menu *menu, struct wlr_scene_node *node)
 {
-	struct menuitem *item;
-	wl_list_for_each (item, &menu->menuitems, link) {
-		item->selected = false;
-		if (item->submenu) {
-			menu_clear_selection(item->submenu);
+	/* TODO: this would be much easier if we could use node->data */
+
+	if (!menu->selection.item) {
+		/* No item selected in current menu */
+		wlr_log(WLR_ERROR, "No item on menu_action_selected");
+		return false;
+	}
+	struct wlr_scene_node *menu_node =
+		menu->selection.item->selected.background;
+	if (node == menu_node || node->parent == menu_node) {
+		/* We found the correct menu item */
+		if (menu->selection.item->submenu) {
+			/* ..but it just opens a submenu */
+			return false;
 		}
+		action(NULL, menu->server, &menu->selection.item->actions, 0);
+		menu_close(menu->server->menu_current);
+		menu->server->menu_current = NULL;
+		return true;
+	}
+	if (menu->selection.menu) {
+		return menu_call_actions(menu->selection.menu, node);
+	}
+	wlr_log(WLR_ERROR, "No match on menu_action_selected");
+	return false;
+}
+
+void
+menu_close(struct menu *menu)
+{
+	if (!menu) {
+		wlr_log(WLR_ERROR, "Trying to close non exiting menu");
+		return;
+	}
+	/* TODO: Maybe reset input state here instead of in cursor.c ? */
+	wlr_scene_node_set_enabled(&menu->scene_tree->node, false);
+	menu_set_selection(menu, NULL);
+	if (menu->selection.menu) {
+		menu_close(menu->selection.menu);
+		menu->selection.menu = NULL;
 	}
 }
 
 void
-menu_action_selected(struct server *server, struct menu *menu)
-{
-	struct menuitem *menuitem;
-	wl_list_for_each (menuitem, &menu->menuitems, link) {
-		if (menuitem->selected && !menuitem->submenu) {
-			action(NULL, server, &menuitem->actions, 0);
-			break;
-		}
-		if (menuitem->submenu) {
-			menu_action_selected(server, menuitem->submenu);
-		}
-	}
-	menu_clear_selection(menu);
-}
-
-void
-menu_reconfigure(struct server *server, struct menu *menu)
+menu_reconfigure(struct server *server)
 {
 	menu_finish();
 	menu_init_rootmenu(server);
diff --git a/src/server.c b/src/server.c
index fbefa0e2..60c6c4e8 100644
--- a/src/server.c
+++ b/src/server.c
@@ -43,7 +43,7 @@ reload_config_and_theme(void)
 		ssd_update_geometry(view, true);
 	}
 
-	menu_reconfigure(g_server, g_server->rootmenu);
+	menu_reconfigure(g_server);
 	seat_reconfigure(g_server);
 	damage_all_outputs(g_server);
 }
@@ -225,6 +225,7 @@ server_init(struct server *server)
 	}
 	server->view_tree = wlr_scene_tree_create(&server->scene->node);
 	server->osd_tree = wlr_scene_tree_create(&server->scene->node);
+	server->menu_tree = wlr_scene_tree_create(&server->scene->node);
 	wlr_scene_attach_output_layout(server->scene, server->output_layout);
 
 	/*