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The docs say I should be able to rearrange my layer stacking order by dragging and dropping.

Doesn't seem to work for me. Am I doing something wrong or is this not implemented in the plugin yet?

(talking about material editor here)

I'm not seeing a problem with it -- when dragging an item, you should see the "not allowed" cursor type until you are hovering over an allowed drop zone, which in the case of a layer, is the top-level node in the tree.

Yes, that worked for me.

So if you have 10 layers in your material, and you want to swap the bottom two... You have to juggle all of them?

Yes, though that should be a pretty rare scenario. I see MXED allows dropping a layer on another layer, putting one above the other; I can see about doing that in the plugin.

that would be very nice. i find it a bit limiting and more prone to error the way it works now.

just the other day i had to reorganize a material because i needed a certain layer to fade into not possible to create with the mask on the top.

and if you don't name all the "layers" they are all called "layer" and it gets pretty confusing quickly if you are not sure if the drag and drop was actually successfull.