diff --git a/src/interaction.js b/src/interaction.js
index 6c5a202..a91ff4d 100644
--- a/src/interaction.js
+++ b/src/interaction.js
@@ -23,6 +23,16 @@ export class InteractionManager {
     });
     this._outlineGroup = null;
 
+    // Drag state
+    this._isDragging = false;
+    this._dragPlane = new THREE.Plane(new THREE.Vector3(0, 1, 0), 0); // Y=0 floor plane
+    this._dragOffset = new THREE.Vector3();
+    this._dragStartPos = null; // world position at drag start
+    this.snapEnabled = true;
+    this.snapSize = 0.25; // metres
+    this._roomBounds = new Map();
+    this._furniturePadding = 0.05; // small buffer from walls
+
     this._listeners = new Set();
 
     // Bind event handlers (keep references for dispose)
@@ -30,14 +40,24 @@ export class InteractionManager {
     this._onRoomClick = this._onRoomClick.bind(this);
     this._onKeyDown = this._onKeyDown.bind(this);
     this._onFloorChange = this._onFloorChange.bind(this);
+    this._onPointerDown = this._onPointerDown.bind(this);
+    this._onPointerMove = this._onPointerMove.bind(this);
+    this._onPointerUp = this._onPointerUp.bind(this);
 
+    const canvas = this.renderer.renderer.domElement;
     this.renderer.container.addEventListener('furnitureclick', this._onFurnitureClick);
     this.renderer.container.addEventListener('roomclick', this._onRoomClick);
     this.renderer.container.addEventListener('floorchange', this._onFloorChange);
+    canvas.addEventListener('pointerdown', this._onPointerDown);
+    canvas.addEventListener('pointermove', this._onPointerMove);
+    canvas.addEventListener('pointerup', this._onPointerUp);
     window.addEventListener('keydown', this._onKeyDown);
 
     // Listen to DesignState changes to keep scene in sync
     this._unsubState = this.state.onChange((type, detail) => this._onStateChange(type, detail));
+
+    // Build initial room bounds
+    this._buildRoomBounds();
   }
 
   // ---- Mode system ----
@@ -152,6 +172,11 @@ export class InteractionManager {
   // ---- Event handlers ----
 
   _onFurnitureClick(event) {
+    // Don't handle click if we just finished a drag
+    if (this._wasDragging) {
+      this._wasDragging = false;
+      return;
+    }
     const { mesh } = event.detail;
     if (mesh) {
       this.select(mesh);
@@ -167,10 +192,124 @@ export class InteractionManager {
 
   _onFloorChange(_event) {
     // Floor switch invalidates selection (meshes are disposed)
+    this._isDragging = false;
     this.selectedObject = null;
     this.selectedRoomId = null;
     this.selectedIndex = -1;
     this._outlineGroup = null;
+    this._buildRoomBounds();
+  }
+
+  // ---- Drag handling ----
+
+  _getNDC(event) {
+    const rect = this.renderer.renderer.domElement.getBoundingClientRect();
+    return new THREE.Vector2(
+      ((event.clientX - rect.left) / rect.width) * 2 - 1,
+      -((event.clientY - rect.top) / rect.height) * 2 + 1
+    );
+  }
+
+  _onPointerDown(event) {
+    if (event.button !== 0) return; // left click only
+    if (!this.selectedObject || this.selectedObject.userData.wallMounted) return;
+
+    // Raycast to check if we're clicking the selected furniture
+    const ndc = this._getNDC(event);
+    this.renderer.raycaster.setFromCamera(ndc, this.renderer.camera);
+    const hits = this.renderer.raycaster.intersectObject(this.selectedObject, true);
+    if (hits.length === 0) return;
+
+    // Calculate drag offset so object doesn't jump to cursor
+    const intersection = new THREE.Vector3();
+    this.renderer.raycaster.ray.intersectPlane(this._dragPlane, intersection);
+    if (!intersection) return;
+
+    this._dragOffset.copy(this.selectedObject.position).sub(intersection);
+    this._dragStartPos = this.selectedObject.position.clone();
+    this._isDragging = true;
+    this._wasDragging = false;
+    this.mode = 'move';
+
+    // Disable orbit controls during drag
+    this.renderer.setControlsEnabled(false);
+  }
+
+  _onPointerMove(event) {
+    if (!this._isDragging || !this.selectedObject) return;
+
+    const ndc = this._getNDC(event);
+    this.renderer.raycaster.setFromCamera(ndc, this.renderer.camera);
+    const intersection = new THREE.Vector3();
+    this.renderer.raycaster.ray.intersectPlane(this._dragPlane, intersection);
+    if (!intersection) return;
+
+    // Apply drag offset
+    intersection.add(this._dragOffset);
+
+    // Grid snapping (snap world position)
+    if (this.snapEnabled) {
+      intersection.x = Math.round(intersection.x / this.snapSize) * this.snapSize;
+      intersection.z = Math.round(intersection.z / this.snapSize) * this.snapSize;
+    }
+
+    // Room bounds constraint
+    const bounds = this._roomBounds.get(this.selectedRoomId);
+    if (bounds) {
+      const pad = this._furniturePadding;
+      intersection.x = clamp(intersection.x, bounds.minX + pad, bounds.maxX - pad);
+      intersection.z = clamp(intersection.z, bounds.minZ + pad, bounds.maxZ - pad);
+    }
+
+    // Keep original Y
+    intersection.y = this.selectedObject.position.y;
+    this.selectedObject.position.copy(intersection);
+  }
+
+  _onPointerUp(_event) {
+    if (!this._isDragging) return;
+    this._isDragging = false;
+    this.renderer.setControlsEnabled(true);
+
+    if (!this.selectedObject || !this._dragStartPos) {
+      this.mode = 'select';
+      return;
+    }
+
+    // Check if position actually changed
+    const moved = !this.selectedObject.position.equals(this._dragStartPos);
+    if (moved) {
+      this._wasDragging = true; // prevent click handler from re-selecting
+
+      // Convert world position back to room-local coords for state
+      const floor = this.renderer.houseData.floors[this.renderer.currentFloor];
+      const room = floor?.rooms.find(r => r.id === this.selectedRoomId);
+      if (room) {
+        const localX = this.selectedObject.position.x - room.position.x;
+        const localZ = this.selectedObject.position.z - room.position.y;
+        this.state.moveFurniture(this.selectedRoomId, this.selectedIndex, { x: localX, z: localZ });
+      }
+    }
+
+    this.mode = 'select';
+    this._dragStartPos = null;
+  }
+
+  // ---- Room bounds ----
+
+  _buildRoomBounds() {
+    this._roomBounds.clear();
+    if (!this.renderer.houseData) return;
+    const floor = this.renderer.houseData.floors[this.renderer.currentFloor];
+    if (!floor) return;
+    for (const room of floor.rooms) {
+      this._roomBounds.set(room.id, {
+        minX: room.position.x,
+        maxX: room.position.x + room.dimensions.width,
+        minZ: room.position.y,
+        maxZ: room.position.y + room.dimensions.length
+      });
+    }
   }
 
   _onStateChange(type, _detail) {
@@ -315,9 +454,13 @@ export class InteractionManager {
   // ---- Cleanup ----
 
   dispose() {
+    const canvas = this.renderer.renderer.domElement;
     this.renderer.container.removeEventListener('furnitureclick', this._onFurnitureClick);
     this.renderer.container.removeEventListener('roomclick', this._onRoomClick);
     this.renderer.container.removeEventListener('floorchange', this._onFloorChange);
+    canvas.removeEventListener('pointerdown', this._onPointerDown);
+    canvas.removeEventListener('pointermove', this._onPointerMove);
+    canvas.removeEventListener('pointerup', this._onPointerUp);
     window.removeEventListener('keydown', this._onKeyDown);
     this._unsubState();
     this._removeOutline();
@@ -325,3 +468,7 @@ export class InteractionManager {
     this._listeners.clear();
   }
 }
+
+function clamp(val, min, max) {
+  return Math.max(min, Math.min(max, val));
+}