Index: automation_time_axis.h
===================================================================
--- automation_time_axis.h	(revision 11514)
+++ automation_time_axis.h	(working copy)
@@ -86,7 +86,7 @@
 	void get_selectables (ARDOUR::framepos_t start, ARDOUR::framepos_t end, double top, double bot, std::list<Selectable *>&);
 	void get_inverted_selectables (Selection&, std::list<Selectable*>& results);
 
-	void show_timestretch (framepos_t /*start*/, framepos_t /*end*/) {}
+	void show_timestretch (framepos_t /*start*/, framepos_t /*end*/, int /*layers*/, int /*layer*/) {}
 	void hide_timestretch () {}
 
 	/* editing operations */
Index: editor_drag.cc
===================================================================
--- editor_drag.cc	(revision 11514)
+++ editor_drag.cc	(working copy)
@@ -3275,11 +3275,16 @@
 TimeFXDrag::motion (GdkEvent* event, bool)
 {
 	RegionView* rv = _primary;
+	StreamView* cv = rv->get_time_axis_view().view ();
 
+	pair<TimeAxisView*, double> const tv = _editor->trackview_by_y_position (grab_y());
+	int layer = tv.first->layer_display() == Overlaid ? 0 : tv.second;
+	int layers = tv.first->layer_display() == Overlaid ? 1 : cv->layers();
+
 	framepos_t const pf = adjusted_current_frame (event);
 
 	if (pf > rv->region()->position()) {
-		rv->get_time_axis_view().show_timestretch (rv->region()->position(), pf);
+		rv->get_time_axis_view().show_timestretch (rv->region()->position(), pf, layers, layer);
 	}
 
 	show_verbose_cursor_time (pf);
Index: route_time_axis.cc
===================================================================
--- route_time_axis.cc	(revision 11514)
+++ route_time_axis.cc	(working copy)
@@ -768,13 +768,12 @@
 }
 
 void
-RouteTimeAxisView::show_timestretch (framepos_t start, framepos_t end)
+RouteTimeAxisView::show_timestretch (framepos_t start, framepos_t end, int layers, int layer)
 {
 	double x1;
 	double x2;
-	double y2;
 
-	TimeAxisView::show_timestretch (start, end);
+	TimeAxisView::show_timestretch (start, end, layers, layer);
 
 	hide_timestretch ();
 
@@ -815,12 +814,11 @@
 
 	x1 = start / _editor.get_current_zoom();
 	x2 = (end - 1) / _editor.get_current_zoom();
-	y2 = current_height() - 2;
 
 	timestretch_rect->property_x1() = x1;
-	timestretch_rect->property_y1() = 1.0;
+	timestretch_rect->property_y1() = current_height()*(layers - layer - 1)/layers;
 	timestretch_rect->property_x2() = x2;
-	timestretch_rect->property_y2() = y2;
+	timestretch_rect->property_y2() = current_height()*(layers - layer)/layers;
 }
 
 void
Index: route_time_axis.h
===================================================================
--- route_time_axis.h	(revision 11514)
+++ route_time_axis.h	(working copy)
@@ -81,7 +81,7 @@
 
 	void set_samples_per_unit (double);
  	void set_height (uint32_t h);
-	void show_timestretch (framepos_t start, framepos_t end);
+	void show_timestretch (framepos_t start, framepos_t end, int layers, int layer);
 	void hide_timestretch ();
 	void selection_click (GdkEventButton*);
 	void set_selected_points (PointSelection&);
Index: time_axis_view.cc
===================================================================
--- time_axis_view.cc	(revision 11514)
+++ time_axis_view.cc	(working copy)
@@ -780,10 +780,10 @@
 }
 
 void
-TimeAxisView::show_timestretch (framepos_t start, framepos_t end)
+TimeAxisView::show_timestretch (framepos_t start, framepos_t end, int layers, int layer)
 {
 	for (Children::iterator i = children.begin(); i != children.end(); ++i) {
-		(*i)->show_timestretch (start, end);
+		(*i)->show_timestretch (start, end, layers, layer);
 	}
 }
 
Index: time_axis_view.h
===================================================================
--- time_axis_view.h	(revision 11514)
+++ time_axis_view.h	(working copy)
@@ -157,7 +157,7 @@
 	virtual void show_selection (TimeSelection&);
 	virtual void hide_selection ();
 	virtual void reshow_selection (TimeSelection&);
-	virtual void show_timestretch (framepos_t start, framepos_t end);
+	virtual void show_timestretch (framepos_t start, framepos_t end, int layers, int layer);
 	virtual void hide_timestretch ();
 
 	virtual void hide_dependent_views (TimeAxisViewItem&) {}
Index: visual_time_axis.cc
===================================================================
--- visual_time_axis.cc	(revision 11514)
+++ visual_time_axis.cc	(working copy)
@@ -409,7 +409,7 @@
 // Super class methods not handled by VisualTimeAxis
 
 void
-VisualTimeAxis::show_timestretch (framepos_t start, framepos_t end)
+VisualTimeAxis::show_timestretch (framepos_t start, framepos_t end, int layers, int layer)
 {
 	// Not handled by purely visual TimeAxis
 }
Index: visual_time_axis.h
===================================================================
--- visual_time_axis.h	(revision 11514)
+++ visual_time_axis.h	(working copy)
@@ -250,7 +250,7 @@
 		 *
 		 * @todo should VisualTimeAxis handle this?
 		 */
-		void show_timestretch (nframes_t start, nframes_t end);
+		void show_timestretch (nframes_t start, nframes_t end, int layers, int layer);
 
 		/**
 		 * Not handle by purely visual TimeAxis