diff --git a/src/CortexEngine.App/ObjectManipulator.cs b/src/CortexEngine.App/ObjectManipulator.cs
new file mode 100644
index 0000000..2466776
--- /dev/null
+++ b/src/CortexEngine.App/ObjectManipulator.cs
@@ -0,0 +1,173 @@
+using System.Numerics;
+using Engine.Core;
+using Engine.Core.Components;
+using Engine.Physics;
+using Flecs.NET.Core;
+using Raylib_cs;
+using EngineMesh = Engine.Core.Components.Mesh;
+using EngineTransform = Engine.Core.Components.Transform;
+using EngineRigidBody = Engine.Core.Components.RigidBody;
+
+namespace CortexEngine.App;
+
+/// <summary>
+/// Unity-like object manipulation: left-click to pick, drag to move on ground plane.
+/// Only active when ImGui is not capturing the mouse.
+/// </summary>
+public sealed class ObjectManipulator
+{
+    private Entity _selectedEntity;
+    private bool _isDragging;
+    private Vector3 _dragOffset;
+    private float _dragDepth;
+
+    public string SelectedEntityName => _selectedEntity.IsValid() ? _selectedEntity.Name() : "";
+    public bool IsDragging => _isDragging;
+
+    /// <summary>
+    /// Process input for object picking and dragging.
+    /// Returns true if input was consumed (ImGui should be ignored).
+    /// </summary>
+    public bool ProcessInput(World world, Camera camera, IInputState input)
+    {
+        // Skip if ImGui is capturing mouse
+        if (ImGuiNET.ImGui.GetIO().WantCaptureMouse)
+        {
+            _isDragging = false;
+            return false;
+        }
+
+        var mousePos = new Vector2(input.MouseX, input.MouseY);
+        var ray = Raylib.GetScreenToWorldRay(mousePos, ToRaylibCamera(camera));
+
+        // Left click — pick or start drag
+        if (input.MouseLeft && !_isDragging)
+        {
+            var hit = RaycastEntities(world, ray);
+            if (hit.IsValid())
+            {
+                _selectedEntity = hit;
+                _isDragging = true;
+                // Store depth along camera forward axis and offset from object center
+                var objPos = hit.Get<EngineTransform>().Position;
+                var camForward = Vector3.Normalize(camera.Target - camera.Position);
+                _dragDepth = Vector3.Dot(objPos - camera.Position, camForward);
+                _dragOffset = objPos - ProjectToCameraPlane(ray, camera, _dragDepth);
+                return true;
+            }
+        }
+
+        // Drag — move object on plane orthogonal to camera (screen-space movement)
+        if (_isDragging)
+        {
+            if (input.MouseLeft)
+            {
+                var targetPos = ProjectToCameraPlane(ray, camera, _dragDepth) + _dragOffset;
+
+                if (_selectedEntity.IsValid() && _selectedEntity.Has<EngineTransform>())
+                {
+                    var t = _selectedEntity.Get<EngineTransform>();
+                    t.Position = targetPos;
+                    _selectedEntity.Set(t);
+                }
+                return true;
+            }
+            else
+            {
+                _isDragging = false;
+            }
+        }
+
+        return false;
+    }
+
+    /// <summary>
+    /// After physics step, re-sync dragged entity position to physics body.
+    /// </summary>
+    public void SyncToPhysics(PhysicsWorld physicsWorld)
+    {
+        if (_isDragging && _selectedEntity.IsValid() && _selectedEntity.Has<EngineTransform>())
+        {
+            var t = _selectedEntity.Get<EngineTransform>();
+            physicsWorld.SyncToPhysics(_selectedEntity, t);
+        }
+    }
+
+    /// <summary>
+    /// Get the entity currently being dragged (for physics sync skip).
+    /// </summary>
+    public Entity? GetDraggedEntity() => _isDragging ? _selectedEntity : null;
+
+    private static Entity RaycastEntities(World world, Ray ray)
+    {
+        Entity closest = default;
+        var closestDist = float.MaxValue;
+
+        world.Each((Entity e, ref EngineTransform t, ref EngineMesh _) =>
+        {
+            var name = e.Name();
+            if (string.IsNullOrEmpty(name) || name == "Grid" || name == "Floor")
+                return;
+
+            // Simple sphere intersection using position + approximate radius
+            var radius = 1.0f;
+            if (e.Has<EngineRigidBody>())
+            {
+                var rb = e.Get<EngineRigidBody>();
+                radius = rb.ShapeSize.Length();
+            }
+
+            var toCenter = t.Position - ray.Position;
+            var proj = Vector3.Dot(toCenter, ray.Direction);
+            if (proj < 0) return; // behind camera
+
+            var closestPoint = ray.Position + ray.Direction * proj;
+            var dist = Vector3.Distance(closestPoint, t.Position);
+
+            if (dist <= radius)
+            {
+                var rayDist = Vector3.Distance(ray.Position, t.Position);
+                if (rayDist < closestDist)
+                {
+                    closestDist = rayDist;
+                    closest = e;
+                }
+            }
+        });
+
+        return closest;
+    }
+
+    /// <summary>
+    /// Project a screen ray onto a plane orthogonal to the camera at the given depth.
+    /// This makes objects move in screen-space (like Unity's screen-space drag).
+    /// </summary>
+    private static Vector3 ProjectToCameraPlane(Ray ray, Camera camera, float depth)
+    {
+        var camForward = Vector3.Normalize(camera.Target - camera.Position);
+        var planePoint = camera.Position + camForward * depth;
+
+        // Ray-plane intersection: plane through planePoint with normal = camForward
+        var denom = Vector3.Dot(ray.Direction, camForward);
+        if (MathF.Abs(denom) < 0.0001f)
+            return planePoint;
+
+        var t = Vector3.Dot(planePoint - ray.Position, camForward) / denom;
+        if (t < 0)
+            return planePoint;
+
+        return ray.Position + ray.Direction * t;
+    }
+
+    private static Camera3D ToRaylibCamera(Camera camera)
+    {
+        return new Camera3D
+        {
+            Position = camera.Position,
+            Target = camera.Target,
+            Up = camera.Up,
+            FovY = camera.FieldOfView * 180.0f / MathF.PI,
+            Projection = CameraProjection.Perspective
+        };
+    }
+}
diff --git a/src/CortexEngine.App/Program.cs b/src/CortexEngine.App/Program.cs
index 6222143..c6a0239 100644
--- a/src/CortexEngine.App/Program.cs
+++ b/src/CortexEngine.App/Program.cs
@@ -50,6 +50,7 @@ class Program
 
             // ImGui editor layer
             var imGuiLayer = new ImGuiLayer();
+            var objectManipulator = new ObjectManipulator();
             if (!cameraTour)
             {
                 imGuiLayer.Initialize();
@@ -240,6 +241,13 @@ class Program
                     }
                 }
 
+                // Object manipulation (Unity-like drag)
+                if (!cameraTour)
+                {
+                    var cam = cameraEntity.Get<Camera>();
+                    objectManipulator.ProcessInput(world, cam, input);
+                }
+
                 // Physics: create bodies, step, sync transforms
                 if (!cameraTour)
                 {
@@ -258,8 +266,13 @@ class Program
                         e.Set(rb);
                     }
 
+                    // Sync dragged object to physics before stepping
+                    objectManipulator.SyncToPhysics(physicsWorld);
+
                     physicsWorld.Update((float)timing.DeltaTime);
-                    physicsWorld.SyncTransforms(world);
+
+                    // Sync all transforms EXCEPT the dragged object
+                    physicsWorld.SyncTransforms(world, objectManipulator.IsDragging ? objectManipulator.GetDraggedEntity() : null);
                 }
 
                 // Capture a demo screenshot after the scene warms up (non-tour mode only).
@@ -272,6 +285,10 @@ class Program
                 // Feed frame data to ImGui before rendering.
                 imGuiLayer.SetFrameData(world, timing, currentFps);
 
+                // Sync selection between manipulator and ImGui
+                if (objectManipulator.IsDragging && !string.IsNullOrEmpty(objectManipulator.SelectedEntityName))
+                    imGuiLayer.SetSelectedEntity(objectManipulator.SelectedEntityName);
+
                 renderer.RenderWorld(world);
                 queue.CompletePendingScreenshots();
 
diff --git a/src/Engine.Graphics.Raylib/ImGuiLayer.cs b/src/Engine.Graphics.Raylib/ImGuiLayer.cs
index 62c6b44..899d589 100644
--- a/src/Engine.Graphics.Raylib/ImGuiLayer.cs
+++ b/src/Engine.Graphics.Raylib/ImGuiLayer.cs
@@ -26,6 +26,16 @@ public sealed class ImGuiLayer : IDisposable
     private Timing? _timing;
     private int _fps;
 
+    /// <summary>
+    /// Set the selected entity name from external (e.g. ObjectManipulator).
+    /// </summary>
+    public void SetSelectedEntity(string name) { _selectedEntity = name; }
+
+    /// <summary>
+    /// Get the currently selected entity name.
+    /// </summary>
+    public string GetSelectedEntity() => _selectedEntity;
+
     /// <summary>
     /// Set per-frame data before calling RenderImGuiUI.
     /// </summary>
diff --git a/src/Engine.Physics/PhysicsWorld.cs b/src/Engine.Physics/PhysicsWorld.cs
index 35c3347..c39c617 100644
--- a/src/Engine.Physics/PhysicsWorld.cs
+++ b/src/Engine.Physics/PhysicsWorld.cs
@@ -121,7 +121,7 @@ public sealed class PhysicsWorld : IDisposable
         _physicsSystem.Update(deltaTime, collisionSteps, _jobSystem);
     }
 
-    public void SyncTransforms(World world)
+    public void SyncTransforms(World world, Entity? skipEntity = null)
     {
         // Collect updates first to avoid calling entity.Set() during dictionary iteration
         var updates = new List<(Entity entity, Vector3 pos, Quaternion rot)>();
@@ -130,6 +130,9 @@ public sealed class PhysicsWorld : IDisposable
             if ((ulong)entity.Id == 0)
                 continue;
 
+            if (skipEntity.HasValue && skipEntity.Value.Id == entity.Id)
+                continue;
+
             var pos = _bodyInterface.GetPosition(bodyId);
             var rot = _bodyInterface.GetRotation(bodyId);
             updates.Add((entity, pos, rot));
@@ -154,6 +157,8 @@ public sealed class PhysicsWorld : IDisposable
             return;
 
         _bodyInterface.SetPositionAndRotation(bodyId, transform.Position, transform.Rotation, Activation.Activate);
+        // Zero out velocity so the object doesn't accumulate momentum while being dragged
+        _bodyInterface.SetLinearAndAngularVelocity(bodyId, Vector3.Zero, Vector3.Zero);
     }
 
     private static Shape CreateShape(RigidBody rb)