diff --git a/src/css/settings-application.css b/src/css/settings-application.css
index e100e72b..a2407055 100644
--- a/src/css/settings-application.css
+++ b/src/css/settings-application.css
@@ -62,6 +62,11 @@
   text-align: center;
 }
 
+.settings-item-grid-size {
+  display: flex;
+  align-items: center;
+}
+
 .grid-width-select,
 .color-format-select {
   margin: 5px 5px 0 5px;
diff --git a/src/css/pensize.css b/src/css/widgets-size-picker.css
similarity index 55%
rename from src/css/pensize.css
rename to src/css/widgets-size-picker.css
index 4fc85931..715d65ed 100644
--- a/src/css/pensize.css
+++ b/src/css/widgets-size-picker.css
@@ -1,9 +1,13 @@
-.pen-size-container {
+/***********************/
+/* SIZE PICKER WIDGET */
+/***********************/
+
+.size-picker-container {
   overflow: hidden;
   padding: 5px 5px;
 }
 
-.pen-size-option {
+.size-picker-option {
   float: left;
   box-sizing: border-box;
   width: 20px;
@@ -15,20 +19,20 @@
   cursor: pointer;
 }
 
-.pen-size-option[data-size='1'] {
+.size-picker-option[data-size='1'] {
   padding: 5px;
 }
-.pen-size-option[data-size='2'] {
+.size-picker-option[data-size='2'] {
   padding: 4px;
 }
-.pen-size-option[data-size='3'] {
+.size-picker-option[data-size='3'] {
   padding: 3px;
 }
-.pen-size-option[data-size='4'] {
+.size-picker-option[data-size='4'] {
   padding: 2px;
 }
 
-.pen-size-option:before {
+.size-picker-option:before {
   content: '';
   width: 100%;
   height: 100%;
@@ -39,19 +43,19 @@
   font-size: 90%;
 }
 
-.pen-size-option:hover {
+.size-picker-option:hover {
   border-color: #888;
 }
 
-.pen-size-option.selected:before {
+.size-picker-option.selected:before {
   background-color: var(--highlight-color);
 }
 
-.pen-size-option.selected {
+.size-picker-option.selected {
   border-color: var(--highlight-color);
 }
 
-.pen-size-option.labeled:before {
-  content: attr(real-pen-size);
+.size-picker-option.labeled:before {
+  content: attr(real-size);
   color: black;
 }
diff --git a/src/js/app.js b/src/js/app.js
index 33098bf5..e38a4692 100644
--- a/src/js/app.js
+++ b/src/js/app.js
@@ -10,6 +10,9 @@
   ns.app = {
 
     init : function () {
+      // Run preferences migration scripts for version v0.12.0
+      pskl.UserSettings.migrate_to_v0_12();
+
       /**
        * When started from APP Engine, appEngineToken_ (Boolean) should be set on window.pskl
        */
diff --git a/src/js/controller/PenSizeController.js b/src/js/controller/PenSizeController.js
index 324e4cf6..41e619be 100644
--- a/src/js/controller/PenSizeController.js
+++ b/src/js/controller/PenSizeController.js
@@ -1,23 +1,19 @@
 (function () {
   var ns = $.namespace('pskl.controller');
 
-  ns.PenSizeController = function () {};
+  ns.PenSizeController = function () {
+    this.sizePicker = new pskl.widgets.SizePicker(this.onSizePickerChanged_.bind(this));
+  };
 
   ns.PenSizeController.prototype.init = function () {
-    this.container = document.querySelector('.pen-size-container');
-    pskl.utils.Event.addEventListener(this.container, 'click', this.onPenSizeOptionClick_, this);
+    this.sizePicker.init(document.querySelector('.pen-size-container'));
 
     $.subscribe(Events.PEN_SIZE_CHANGED, this.onPenSizeChanged_.bind(this));
-
     this.updateSelectedOption_();
   };
 
-  ns.PenSizeController.prototype.onPenSizeOptionClick_ = function (e) {
-    var size = e.target.dataset.size;
-    if (!isNaN(size)) {
-      size = parseInt(size, 10);
-      pskl.app.penSizeService.setPenSize(size);
-    }
+  ns.PenSizeController.prototype.onSizePickerChanged_ = function (size) {
+    pskl.app.penSizeService.setPenSize(size);
   };
 
   ns.PenSizeController.prototype.onPenSizeChanged_ = function (e) {
@@ -25,19 +21,7 @@
   };
 
   ns.PenSizeController.prototype.updateSelectedOption_ = function () {
-    pskl.utils.Dom.removeClass('labeled', this.container);
-    pskl.utils.Dom.removeClass('selected', this.container);
     var size = pskl.app.penSizeService.getPenSize();
-    var selectedOption;
-    if (size <= 4) {
-      selectedOption = this.container.querySelector('[data-size="' + size + '"]');
-    } else {
-      selectedOption = this.container.querySelector('[data-size="4"]');
-      selectedOption.classList.add('labeled');
-      selectedOption.setAttribute('real-pen-size', size);
-    }
-    if (selectedOption) {
-      selectedOption.classList.add('selected');
-    }
+    this.sizePicker.setSize(size);
   };
 })();
diff --git a/src/js/controller/settings/application/GridApplicationController.js b/src/js/controller/settings/application/GridApplicationController.js
index 91ba09a7..edc29edb 100644
--- a/src/js/controller/settings/application/GridApplicationController.js
+++ b/src/js/controller/settings/application/GridApplicationController.js
@@ -4,23 +4,35 @@
   ns.GridApplicationController = function (piskelController, applicationController) {
     this.piskelController = piskelController;
     this.applicationController = applicationController;
+    this.sizePicker = new pskl.widgets.SizePicker(this.onSizePickerChanged_.bind(this));
   };
 
   pskl.utils.inherit(ns.GridApplicationController, pskl.controller.settings.AbstractSettingController);
 
   ns.GridApplicationController.prototype.init = function () {
-    // Grid display and size
-    var gridWidth = pskl.UserSettings.get(pskl.UserSettings.GRID_WIDTH);
-    var gridSelect = document.querySelector('.grid-width-select');
-    var selectedOption = gridSelect.querySelector('option[value="' + gridWidth + '"]');
-    if (selectedOption) {
-      selectedOption.setAttribute('selected', 'selected');
+    var isEnabled = pskl.UserSettings.get(pskl.UserSettings.GRID_ENABLED);
+    var enableGridCheckbox = document.querySelector('.enable-grid-checkbox');
+    if (isEnabled) {
+      enableGridCheckbox.setAttribute('checked', 'true');
     }
-    this.addEventListener(gridSelect, 'change', this.onGridWidthChange_);
+    this.addEventListener(enableGridCheckbox, 'change', this.onEnableGridChange_);
+
+    // Grid size
+    var gridWidth = pskl.UserSettings.get(pskl.UserSettings.GRID_WIDTH);
+    this.sizePicker.init(document.querySelector('.grid-size-container'));
+    this.sizePicker.setSize(gridWidth);
   };
 
-  ns.GridApplicationController.prototype.onGridWidthChange_ = function (evt) {
-    var width = parseInt(evt.target.value, 10);
-    pskl.UserSettings.set(pskl.UserSettings.GRID_WIDTH, width);
+  ns.GridApplicationController.prototype.destroy = function () {
+    this.sizePicker.destroy();
+    this.superclass.destroy.call(this);
+  };
+
+  ns.GridApplicationController.prototype.onSizePickerChanged_ = function (size) {
+    pskl.UserSettings.set(pskl.UserSettings.GRID_WIDTH, size);
+  };
+
+  ns.GridApplicationController.prototype.onEnableGridChange_ = function (evt) {
+    pskl.UserSettings.set(pskl.UserSettings.GRID_ENABLED, evt.currentTarget.checked);
   };
 })();
diff --git a/src/js/rendering/frame/FrameRenderer.js b/src/js/rendering/frame/FrameRenderer.js
index 1a802d49..0a48130a 100644
--- a/src/js/rendering/frame/FrameRenderer.js
+++ b/src/js/rendering/frame/FrameRenderer.js
@@ -55,7 +55,7 @@
     this.displayCanvas = null;
     this.setDisplaySize(renderingOptions.width, renderingOptions.height);
 
-    this.setGridWidth(pskl.UserSettings.get(pskl.UserSettings.GRID_WIDTH));
+    this.setGridWidth(this.getUserGridWidth_());
 
     $.subscribe(Events.USER_SETTINGS_CHANGED, this.onUserSettingsChange_.bind(this));
   };
@@ -180,11 +180,18 @@
   };
 
   ns.FrameRenderer.prototype.onUserSettingsChange_ = function (evt, settingName, settingValue) {
-    if (settingName == pskl.UserSettings.GRID_WIDTH) {
-      this.setGridWidth(settingValue);
+    var settings = pskl.UserSettings;
+    if (settingName == settings.GRID_WIDTH || settingName == settings.GRID_ENABLED) {
+      this.setGridWidth(this.getUserGridWidth_());
     }
   };
 
+  ns.FrameRenderer.prototype.getUserGridWidth_ = function () {
+    var gridEnabled = pskl.UserSettings.get(pskl.UserSettings.GRID_ENABLED);
+    var width = pskl.UserSettings.get(pskl.UserSettings.GRID_WIDTH);
+    return gridEnabled ? width : 0;
+  };
+
   /**
    * Transform a screen pixel-based coordinate (relative to the top-left corner of the rendered
    * frame) into a sprite coordinate in column and row.
diff --git a/src/js/utils/UserSettings.js b/src/js/utils/UserSettings.js
index b1af51bd..1ca0e8da 100644
--- a/src/js/utils/UserSettings.js
+++ b/src/js/utils/UserSettings.js
@@ -2,6 +2,7 @@
   var ns = $.namespace('pskl');
 
   ns.UserSettings = {
+    GRID_ENABLED : 'GRID_ENABLED',
     GRID_WIDTH : 'GRID_WIDTH',
     MAX_FPS : 'MAX_FPS',
     DEFAULT_SIZE : 'DEFAULT_SIZE',
@@ -21,7 +22,8 @@
     TRANSFORM_SHOW_MORE: 'TRANSFORM_SHOW_MORE',
     APPLICATION_SETTINGS_TAB: 'APPLICATION_SETTINGS_TAB',
     KEY_TO_DEFAULT_VALUE_MAP_ : {
-      'GRID_WIDTH' : 0,
+      'GRID_ENABLED' : false,
+      'GRID_WIDTH' : 1,
       'MAX_FPS' : 24,
       'DEFAULT_SIZE' : {
         width : Constants.DEFAULT.WIDTH,
@@ -81,7 +83,7 @@
     /**
      * @private
      */
-    readFromLocalStorage_ : function(key) {
+    readFromLocalStorage_ : function (key) {
       var value = window.localStorage[key];
       if (typeof value != 'undefined') {
         value = JSON.parse(value);
@@ -92,7 +94,7 @@
     /**
      * @private
      */
-    writeToLocalStorage_ : function(key, value) {
+    writeToLocalStorage_ : function (key, value) {
       // TODO(grosbouddha): Catch storage exception here.
       window.localStorage[key] = JSON.stringify(value);
     },
@@ -107,7 +109,7 @@
     /**
      * @private
      */
-    checkKeyValidity_ : function(key) {
+    checkKeyValidity_ : function (key) {
       if (key.indexOf(pskl.service.keyboard.Shortcut.USER_SETTINGS_PREFIX) === 0) {
         return true;
       }
@@ -118,4 +120,20 @@
       }
     }
   };
+
+  // Migration script for version 11 to version 12. Initialize the GRID_ENABLED pref from
+  // the current GRID_WIDTH and update the stored grid width to 1 if it was set to 0.
+  // SHOULD BE REMOVED FOR RELEASE 13.
+  ns.UserSettings.migrate_to_v0_12 = function () {
+    var storedGridEnabled = ns.UserSettings.readFromLocalStorage_('GRID_ENABLED');
+    if (typeof storedGridEnabled === 'undefined' || storedGridEnabled === null) {
+      var gridWidth = ns.UserSettings.get('GRID_WIDTH');
+      ns.UserSettings.writeToLocalStorage_('GRID_ENABLED', gridWidth > 0);
+    }
+
+    var storedGridWidth = ns.UserSettings.readFromLocalStorage_('GRID_WIDTH');
+    if (storedGridWidth === 0) {
+      ns.UserSettings.writeToLocalStorage_('GRID_WIDTH', 1);
+    }
+  };
 })();
diff --git a/src/js/widgets/SizePicker.js b/src/js/widgets/SizePicker.js
new file mode 100644
index 00000000..6550c5f2
--- /dev/null
+++ b/src/js/widgets/SizePicker.js
@@ -0,0 +1,50 @@
+(function () {
+  var ns = $.namespace('pskl.widgets');
+
+  ns.SizePicker = function (onChange) {
+    this.onChange = onChange;
+  };
+
+  ns.SizePicker.prototype.init = function (container) {
+    this.container = container;
+    pskl.utils.Event.addEventListener(this.container, 'click', this.onSizeOptionClick_, this);
+  };
+
+  ns.SizePicker.prototype.destroy = function () {
+    pskl.utils.Event.removeAllEventListeners(this);
+  };
+
+  ns.SizePicker.prototype.getSize = function () {
+    var selectedOption = this.container.querySelector('.selected');
+    return selectedOption ? selectedOption.dataset.size : null;
+  };
+
+  ns.SizePicker.prototype.setSize = function (size) {
+    if (this.getSize() === size) {
+      return;
+    }
+
+    pskl.utils.Dom.removeClass('labeled', this.container);
+    pskl.utils.Dom.removeClass('selected', this.container);
+    var selectedOption;
+    if (size <= 4) {
+      selectedOption = this.container.querySelector('[data-size="' + size + '"]');
+    } else {
+      selectedOption = this.container.querySelector('[data-size="4"]');
+      selectedOption.classList.add('labeled');
+      selectedOption.setAttribute('real-size', size);
+    }
+    if (selectedOption) {
+      selectedOption.classList.add('selected');
+    }
+  };
+
+  ns.SizePicker.prototype.onSizeOptionClick_ = function (e) {
+    var size = e.target.dataset.size;
+    if (!isNaN(size)) {
+      size = parseInt(size, 10);
+      this.onChange(size);
+      this.setSize(size);
+    }
+  };
+})();
diff --git a/src/js/widgets/Tabs.js b/src/js/widgets/Tabs.js
index dd4c7fab..b0ecec7f 100644
--- a/src/js/widgets/Tabs.js
+++ b/src/js/widgets/Tabs.js
@@ -1,19 +1,6 @@
 (function () {
   var ns = $.namespace('pskl.widgets');
 
-  /**
-   * Simple layout widget to display one step element (DOM Element) at a time.
-   * When switching to another step, the new step element will slide over the
-   * current step element. When going back to the previous step, the current
-   * step element will slide out from the container to reveal the previous one.
-   *
-   * @param {Object} steps map of step descriptions with the step name as the key.
-   *        Each step description contains:
-   *        - el {Element} the DOM Element corresponding to this step
-   *        - name {String} the name of the step (redundant with the key)
-   * @param {Element} container the DOM Element in which the wizard should be
-   *        displayed.
-   */
   ns.Tabs = function (tabs, parentController, settingsName) {
     this.tabs = tabs;
     this.parentController = parentController;
diff --git a/src/piskel-script-list.js b/src/piskel-script-list.js
index fceedccd..2c4b21a4 100644
--- a/src/piskel-script-list.js
+++ b/src/piskel-script-list.js
@@ -162,6 +162,7 @@
   "js/widgets/FramePicker.js",
   "js/widgets/HslRgbColorPicker.js",
   "js/widgets/SizeInput.js",
+  "js/widgets/SizePicker.js",
   "js/widgets/SynchronizedInputs.js",
   "js/widgets/Tabs.js",
   "js/widgets/Wizard.js",
diff --git a/src/piskel-style-list.js b/src/piskel-style-list.js
index 6594a9e9..3760668c 100644
--- a/src/piskel-style-list.js
+++ b/src/piskel-style-list.js
@@ -15,7 +15,6 @@
   "css/settings-resize.css",
   "css/settings-save.css",
   "css/tools.css",
-  "css/pensize.css",
   "css/icons.css",
   "css/color-picker-slider.css",
   "css/dialogs.css",
@@ -39,6 +38,7 @@
   "css/minimap.css",
   "css/widgets-anchor.css",
   "css/widgets-frame-picker.css",
+  "css/widgets-size-picker.css",
   "css/widgets-tabs.css",
   "css/widgets-wizard.css"
 ];
\ No newline at end of file
diff --git a/src/templates/drawing-tools.html b/src/templates/drawing-tools.html
index 62c174b8..6d792a96 100644
--- a/src/templates/drawing-tools.html
+++ b/src/templates/drawing-tools.html
@@ -1,11 +1,11 @@
 <div class="sticky-section left-sticky-section" id="tool-section">
   <div class="sticky-section-wrap">
     <div class="vertical-centerer">
-      <div class="pen-size-container" title="Pen size<br/>from 1 to 4 pixels" rel="tooltip" data-placement="top">
-        <div class="pen-size-option" data-size="1"></div>
-        <div class="pen-size-option" data-size="2"></div>
-        <div class="pen-size-option" data-size="3"></div>
-        <div class="pen-size-option" data-size="4"></div>
+      <div class="pen-size-container size-picker-container" title="Pen size<br/>from 1 to 4 pixels" rel="tooltip" data-placement="top">
+        <div class="pen-size-option size-picker-option" data-size="1"></div>
+        <div class="pen-size-option size-picker-option" data-size="2"></div>
+        <div class="pen-size-option size-picker-option" data-size="3"></div>
+        <div class="pen-size-option size-picker-option" data-size="4"></div>
       </div>
       <ul id="tools-container" class="tools-wrapper">
         <!-- Drawing tools will be inserted here -->
diff --git a/src/templates/settings/application/grid.html b/src/templates/settings/application/grid.html
index f6cd6cec..8b2bf5b8 100644
--- a/src/templates/settings/application/grid.html
+++ b/src/templates/settings/application/grid.html
@@ -1,13 +1,31 @@
 <script type="text/html" id="templates/settings/application/grid.html">
   <div class="application-panel-grid">
     <div class="settings-item">
-      <label for="grid-width">Pixel grid</label>
-      <select id="grid-width" class="grid-width-select">
-        <option value="0">Disabled</option>
-        <option value="1">1px</option>
-        <option value="2">2px</option>
-        <option value="3">3px</option>
-        <option value="4">4px</option>
+      <label>
+        Enable grid
+        <input type="checkbox" value="1" class="enable-grid-checkbox" name="enable-grid-checkbox"/>
+      </label>
+    </div>
+    <div class="settings-item settings-item-grid-size">
+      <label>Grid size</label>
+      <div class="grid-size-container size-picker-container">
+        <div class="grid-size-option size-picker-option"
+          title="1px" rel="tooltip" data-placement="top" data-size="1"></div>
+        <div class="grid-size-option size-picker-option"
+          title="2px" rel="tooltip" data-placement="top" data-size="2"></div>
+        <div class="grid-size-option size-picker-option"
+          title="3px" rel="tooltip" data-placement="top" data-size="3"></div>
+        <div class="grid-size-option size-picker-option"
+          title="4px" rel="tooltip" data-placement="top" data-size="4"></div>
+      </div>
+    </div>
+    <div class="settings-item">
+      <label for="grid-color">Grid color</label>
+      <select id="grid-color" class="grid-color-select">
+        <option value="transparent">transparent</option>
+        <option value="blue">blue</option>
+        <option value="red">red</option>
+        <option value="green">green</option>
       </select>
     </div>
   </div>
diff --git a/src/templates/settings/application/tile.html b/src/templates/settings/application/tile.html
index da7a4f47..7d5a7e2b 100644
--- a/src/templates/settings/application/tile.html
+++ b/src/templates/settings/application/tile.html
@@ -2,13 +2,13 @@
   <div class="application-panel-tile">
     <div class="settings-item">
       <label>
-        Seamless drawing mode
+        Enable tile mode
         <input type="checkbox" value="1" class="seamless-mode-checkbox" name="seamless-mode-checkbox"/>
       </label>
     </div>
 
     <div class="settings-item">
-      <label>Seamless opacity</label>
+      <label>Tiles opacity</label>
       <input type="range" class="settings-opacity-input seamless-opacity-input" name="seamless-opacity" min="0"  max="0.5" step="0.01"/>
       <span class="settings-opacity-text seamless-opacity-text"></span>
     </div>