diff --git a/apps/builder/app/builder/features/help/remote-dialog.tsx b/apps/builder/app/builder/features/help/remote-dialog.tsx
index 407ef91ebd..4661982bfe 100644
--- a/apps/builder/app/builder/features/help/remote-dialog.tsx
+++ b/apps/builder/app/builder/features/help/remote-dialog.tsx
@@ -13,7 +13,6 @@ import { ExternalLinkIcon } from "@webstudio-is/icons";
 
 export const RemoteDialog = () => {
   const options = useStore($remoteDialog);
-
   if (options === undefined) {
     return;
   }
@@ -25,11 +24,16 @@ export const RemoteDialog = () => {
         $remoteDialog.set(undefined);
       }}
       modal={false}
+      draggable
+      resize="auto"
     >
-      <DialogContent draggable resize="auto" width={640} height={640}>
+      <DialogContent width={640} height={640}>
         <iframe
           src={options.url}
-          style={{ border: 0, height: "100%" }}
+          style={{
+            border: 0,
+            height: "100%",
+          }}
         ></iframe>
         {/* Title is at the end intentionally,
          * to make the close button last in the tab order
diff --git a/apps/builder/app/builder/features/project-settings/project-settings.tsx b/apps/builder/app/builder/features/project-settings/project-settings.tsx
index 78105832e2..833fd2869a 100644
--- a/apps/builder/app/builder/features/project-settings/project-settings.tsx
+++ b/apps/builder/app/builder/features/project-settings/project-settings.tsx
@@ -41,9 +41,12 @@ export const ProjectSettingsView = ({
   const isDesignMode = useStore($isDesignMode);
 
   return (
-    <Dialog open={sections.has(currentSection!)} onOpenChange={onOpenChange}>
+    <Dialog
+      draggable
+      open={sections.has(currentSection!)}
+      onOpenChange={onOpenChange}
+    >
       <DialogContent
-        draggable
         css={{
           width: `calc(${leftPanelWidth} + ${rightPanelWidth})`,
           maxWidth: "none",
diff --git a/apps/builder/app/builder/features/style-panel/shared/repeated-style.tsx b/apps/builder/app/builder/features/style-panel/shared/repeated-style.tsx
index 578afdc742..4396bceeb8 100644
--- a/apps/builder/app/builder/features/style-panel/shared/repeated-style.tsx
+++ b/apps/builder/app/builder/features/style-panel/shared/repeated-style.tsx
@@ -390,7 +390,7 @@ export const RepeatedStyle = (props: {
             >
               <CssValueListItem
                 id={id}
-                draggable={true}
+                draggable
                 active={dragItemId === id}
                 index={index}
                 label={<Label truncate>{itemLabel}</Label>}
diff --git a/apps/builder/app/builder/features/workspace/canvas-tools/resize-handles.tsx b/apps/builder/app/builder/features/workspace/canvas-tools/resize-handles.tsx
index a822f02c5d..3eb9b67c12 100644
--- a/apps/builder/app/builder/features/workspace/canvas-tools/resize-handles.tsx
+++ b/apps/builder/app/builder/features/workspace/canvas-tools/resize-handles.tsx
@@ -142,22 +142,12 @@ const useScrub = ({ side }: { side: "right" | "left" }) => {
   return ref;
 };
 
-const useResize = () => {
+export const ResizeHandles = () => {
   const isResizing = useStore($isResizingCanvas);
   const leftRef = useScrub({ side: "left" });
   const rightRef = useScrub({ side: "right" });
   const state = isResizing ? "resizing" : "idle";
 
-  return {
-    state,
-    leftRef,
-    rightRef,
-  };
-};
-
-export const ResizeHandles = () => {
-  const { state, leftRef, rightRef } = useResize();
-
   return (
     <>
       <div
diff --git a/packages/design-system/src/components/css-value-list-item.stories.tsx b/packages/design-system/src/components/css-value-list-item.stories.tsx
index ac1f6003f5..9279cdfa11 100644
--- a/packages/design-system/src/components/css-value-list-item.stories.tsx
+++ b/packages/design-system/src/components/css-value-list-item.stories.tsx
@@ -56,7 +56,7 @@ const ListItem = (props: {
       }
       thumbnail={<Thumbnail />}
       hidden={props.hidden}
-      draggable={true}
+      draggable
       state={props.state}
       focused={props.focused}
       active={props.active}
diff --git a/packages/design-system/src/components/dialog.tsx b/packages/design-system/src/components/dialog.tsx
index b7d6bd37bb..42f71c01c1 100644
--- a/packages/design-system/src/components/dialog.tsx
+++ b/packages/design-system/src/components/dialog.tsx
@@ -13,12 +13,13 @@ import * as Primitive from "@radix-ui/react-dialog";
 import { css, theme, type CSS } from "../stitches.config";
 import { PanelTitle } from "./panel-title";
 import { Flex } from "./flex";
-import { useDisableCanvasPointerEvents } from "../utilities";
+import { useDisableCanvasPointerEvents, useResize } from "../utilities";
 import type { CSSProperties } from "@stitches/react";
 import { mergeRefs } from "@react-aria/utils";
 import { Button } from "./button";
 import { XIcon, MaximizeIcon, MinimizeIcon } from "@webstudio-is/icons";
 import { Separator } from "./separator";
+import { Text } from "./text";
 
 export const DialogTrigger = Primitive.Trigger;
 
@@ -51,15 +52,28 @@ const panelStyle = css({
 const DialogContext = createContext<{
   isMaximized: boolean;
   setIsMaximized: (isMaximized: boolean) => void;
+  resize?: "auto" | "none";
+  draggable?: boolean;
 }>({
   isMaximized: false,
   setIsMaximized: () => {},
+  draggable: true,
+  resize: "none",
 });
 
-export const Dialog = (props: ComponentProps<typeof Primitive.Dialog>) => {
+export const Dialog = ({
+  resize,
+  draggable,
+  ...props
+}: ComponentProps<typeof Primitive.Dialog> & {
+  resize?: "auto" | "none";
+  draggable?: boolean;
+}) => {
   const [isMaximized, setIsMaximized] = useState(false);
   return (
-    <DialogContext.Provider value={{ isMaximized, setIsMaximized }}>
+    <DialogContext.Provider
+      value={{ isMaximized, setIsMaximized, resize, draggable }}
+    >
       <Primitive.Dialog {...props} />
     </DialogContext.Provider>
   );
@@ -128,16 +142,13 @@ const useDraggable = ({
         rect: Rect;
       }
   >(undefined);
-  const { enableCanvasPointerEvents, disableCanvasPointerEvents } =
-    useDisableCanvasPointerEvents();
-  const draggableRef = useRef<HTMLDivElement | null>(null);
+  const ref = useRef<HTMLDivElement | null>(null);
 
   const handleDragStart: DragEventHandler = (event) => {
-    const target = draggableRef.current;
+    const target = ref.current;
     if (target === null) {
       return;
     }
-    disableCanvasPointerEvents();
     if (placeholderImage) {
       event.dataTransfer.setDragImage(placeholderImage, 0, 0);
     }
@@ -153,7 +164,7 @@ const useDraggable = ({
   };
 
   const handleDrag: DragEventHandler = (event) => {
-    const target = draggableRef.current;
+    const target = ref.current;
 
     if (
       event.pageX <= 0 ||
@@ -206,9 +217,45 @@ const useDraggable = ({
   return {
     onDragStart: handleDragStart,
     onDrag: handleDrag,
-    onDragEnd: enableCanvasPointerEvents,
     style,
-    draggableRef,
+    ref,
+  };
+};
+
+// This is needed to prevent pointer events on the iframe from interfering with dragging and resizing.
+const useSetPointerEvents = () => {
+  const { enableCanvasPointerEvents, disableCanvasPointerEvents } =
+    useDisableCanvasPointerEvents();
+
+  const setPointerEvents = (value: string) => {
+    return () => {
+      value === "none"
+        ? disableCanvasPointerEvents()
+        : enableCanvasPointerEvents();
+      // RAF is needed otherwise dragstart event won't fire because of pointer-events: none
+      requestAnimationFrame(() => {
+        if (element) {
+          element.style.pointerEvents = value;
+        }
+      });
+    };
+  };
+
+  const [element, ref] = useResize({
+    onResizeStart: setPointerEvents("none"),
+    onResizeEnd: setPointerEvents("auto"),
+  });
+
+  const { resize, draggable } = useContext(DialogContext);
+
+  if (resize === "none" && draggable !== true) {
+    return {};
+  }
+
+  return {
+    ref,
+    onDragStartCapture: setPointerEvents("none"),
+    onDragEndCapture: setPointerEvents("auto"),
   };
 };
 
@@ -218,7 +265,6 @@ export const DialogContent = forwardRef(
       children,
       className,
       css,
-      resize = "none",
       width,
       height,
       x,
@@ -229,11 +275,11 @@ export const DialogContent = forwardRef(
     }: ComponentProps<typeof Primitive.Content> &
       UseDraggableProps & {
         css?: CSS;
-        resize?: "auto" | "none";
       },
     forwardedRef: Ref<HTMLDivElement>
   ) => {
-    const { draggableRef, ...draggableProps } = useDraggable({
+    const { resize } = useContext(DialogContext);
+    const { ref: draggableRef, ...draggableProps } = useDraggable({
       width,
       height,
       x,
@@ -242,14 +288,18 @@ export const DialogContent = forwardRef(
       minHeight,
     });
 
+    const { ref: pointerEventsRef, ...pointerEventsProps } =
+      useSetPointerEvents();
+
     return (
       <Primitive.Portal>
         <Primitive.Overlay className={overlayStyle()} />
         <Primitive.Content
           className={contentStyle({ className, css, resize })}
           {...draggableProps}
+          {...pointerEventsProps}
           {...props}
-          ref={mergeRefs(forwardedRef, draggableRef)}
+          ref={mergeRefs(forwardedRef, draggableRef, pointerEventsRef)}
         >
           {children}
         </Primitive.Content>
@@ -265,6 +315,13 @@ const titleSlotStyle = css({
   order: -1,
 });
 
+const titleStyle = css({
+  display: "flex",
+  flexGrow: 1,
+  height: "100%",
+  alignItems: "center",
+});
+
 export const DialogTitle = ({
   children,
   suffix,
@@ -272,27 +329,30 @@ export const DialogTitle = ({
 }: ComponentProps<typeof PanelTitle> & {
   suffix?: ReactNode;
   closeLabel?: string;
-}) => (
-  <div className={titleSlotStyle()}>
-    <PanelTitle {...rest} suffix={suffix ?? <DialogClose />}>
-      <Primitive.Title className={titleStyle()}>{children}</Primitive.Title>
-    </PanelTitle>
-    <Separator />
-  </div>
-);
+}) => {
+  const { draggable } = useContext(DialogContext);
+
+  return (
+    <div className={titleSlotStyle()}>
+      <PanelTitle {...rest} suffix={suffix ?? <DialogClose />}>
+        <Primitive.Title asChild>
+          <Text
+            draggable={draggable}
+            className={titleStyle()}
+            variant="titles"
+            truncate
+          >
+            {children}
+          </Text>
+        </Primitive.Title>
+      </PanelTitle>
+      <Separator />
+    </div>
+  );
+};
 
 export const DialogTitleActions = ({ children }: { children: ReactNode }) => {
-  return (
-    <Flex
-      gap="1"
-      onMouseDown={(event) => {
-        // Prevent dragging dialog
-        event.preventDefault();
-      }}
-    >
-      {children}
-    </Flex>
-  );
+  return <Flex gap="1">{children}</Flex>;
 };
 
 export const DialogActions = ({ children }: { children: ReactNode }) => {
@@ -345,8 +405,3 @@ const contentStyle = css(panelStyle, {
     },
   },
 });
-
-const titleStyle = css({
-  // Resetting H2 styles (Primitive.Title is H2)
-  all: "unset",
-});
diff --git a/packages/design-system/src/components/floating-panel.tsx b/packages/design-system/src/components/floating-panel.tsx
index b2b5474237..c8a9edbe4c 100644
--- a/packages/design-system/src/components/floating-panel.tsx
+++ b/packages/design-system/src/components/floating-panel.tsx
@@ -52,7 +52,7 @@ type FloatingPanelProps = {
   content: ReactNode;
   children: ReactNode;
   maximizable?: boolean;
-  resize?: ComponentProps<typeof DialogContent>["resize"];
+  resize?: ComponentProps<typeof Dialog>["resize"];
   width?: number;
   height?: number;
   // - bottom - below the trigger button
@@ -134,13 +134,17 @@ export const FloatingPanel = ({
   useLayoutEffect(calcPosition, [calcPosition]);
 
   return (
-    <Dialog open={open} modal={false} onOpenChange={onOpenChange}>
+    <Dialog
+      draggable
+      resize={resize}
+      open={open}
+      modal={false}
+      onOpenChange={onOpenChange}
+    >
       <DialogTrigger asChild ref={triggerRef}>
         {children}
       </DialogTrigger>
       <DialogContent
-        draggable
-        resize={resize}
         className={contentStyle()}
         width={width}
         height={height}
diff --git a/packages/design-system/src/components/panel-title.tsx b/packages/design-system/src/components/panel-title.tsx
index c14a1dadf3..8ec72be4fc 100644
--- a/packages/design-system/src/components/panel-title.tsx
+++ b/packages/design-system/src/components/panel-title.tsx
@@ -10,16 +10,14 @@ import {
   type Ref,
 } from "react";
 import { theme, styled, type CSS } from "../stitches.config";
-import { truncate } from "../utilities";
-import { textVariants } from "./text";
-import { Box } from "./box";
+import { Text } from "./text";
 
 type TitleProps = ComponentProps<"div"> & {
   suffix?: ReactNode;
   css?: CSS;
 };
 
-const Container = styled("div", textVariants.titles, {
+const Container = styled("div", {
   display: "flex",
   alignItems: "center",
   flexShrink: 0,
@@ -27,7 +25,6 @@ const Container = styled("div", textVariants.titles, {
   height: theme.spacing[15],
   paddingInline: theme.panel.paddingInline,
   paddingRight: theme.spacing[5],
-  color: theme.colors.foregroundMain,
 });
 
 const SuffixSlot = styled("div", {
@@ -48,7 +45,13 @@ export const PanelTitle = forwardRef(
     ref: Ref<HTMLDivElement>
   ) => (
     <Container className={className} css={css} {...rest} ref={ref}>
-      <Box css={truncate()}>{children}</Box>
+      {typeof children === "string" ? (
+        <Text variant="titles" truncate>
+          {children}
+        </Text>
+      ) : (
+        children
+      )}
       {suffix && <SuffixSlot>{suffix}</SuffixSlot>}
     </Container>
   )
diff --git a/packages/design-system/src/utilities.ts b/packages/design-system/src/utilities.ts
index c59d243d1c..963680e020 100644
--- a/packages/design-system/src/utilities.ts
+++ b/packages/design-system/src/utilities.ts
@@ -1,4 +1,4 @@
-import { useEffect, useMemo, useRef } from "react";
+import { useEffect, useMemo, useRef, useState } from "react";
 import warnOnce from "warn-once";
 import type { CSS } from "./stitches.config";
 
@@ -85,6 +85,63 @@ export const useDisableCanvasPointerEvents = () => {
   return enableDisable;
 };
 
+/**
+ * Uses ResizeObserver to notify about resize events, with start, end and timeout.
+ */
+export const useResize = ({
+  onResizeStart,
+  onResize,
+  onResizeEnd,
+  timeout = 300,
+}: {
+  onResizeStart?: () => void;
+  onResize?: () => void;
+  onResizeEnd?: () => void;
+  timeout?: number;
+}) => {
+  const [element, ref] = useState<HTMLElement | null>(null);
+  const timeoutRef = useRef<ReturnType<typeof setTimeout>>();
+  const onResizeStartRef = useRef(onResizeStart);
+  onResizeStartRef.current = onResizeStart;
+  const onResizeRef = useRef(onResize);
+  onResizeRef.current = onResize;
+  const onResizeEndRef = useRef(onResizeEnd);
+  onResizeEndRef.current = onResizeEnd;
+  const isResizingRef = useRef<boolean | undefined>();
+
+  useEffect(() => {
+    if (element === null) {
+      return;
+    }
+    // Mark resizing as on a new observer instance, we will use this to skip first resize event.
+    isResizingRef.current = undefined;
+    const observer = new ResizeObserver(() => {
+      // Resize observer called first time is not a start of resize
+      if (isResizingRef.current === undefined) {
+        isResizingRef.current = false;
+        return;
+      }
+      if (isResizingRef.current === false) {
+        isResizingRef.current = true;
+        onResizeStartRef.current?.();
+      }
+      onResizeRef.current?.();
+      clearTimeout(timeoutRef.current);
+      timeoutRef.current = setTimeout(() => {
+        onResizeEndRef.current?.();
+        isResizingRef.current = false;
+      }, timeout);
+    });
+    observer.observe(element);
+    return () => {
+      clearTimeout(timeoutRef.current);
+      observer.disconnect();
+    };
+  }, [element, onResizeStartRef, onResizeRef, onResizeEndRef, timeout]);
+
+  return [element, ref] as const;
+};
+
 export const truncate = (): CSS => ({
   whiteSpace: "nowrap",
   textOverflow: "ellipsis",