diff --git a/gtk2_ardour/ardour.menus.in b/gtk2_ardour/ardour.menus.in
index ecddc52058..5dce3f45b7 100644
--- a/gtk2_ardour/ardour.menus.in
+++ b/gtk2_ardour/ardour.menus.in
@@ -432,6 +432,8 @@
 
       <separator/>
 
+      <menuitem action="toggle-layer-display"/>
+      
       <menu action="PrimaryClockMenu">
         <menuitem action='focus-on-clock'/>
         <menuitem action="primary-clock-timecode"/>
diff --git a/gtk2_ardour/editor.h b/gtk2_ardour/editor.h
index 18e67b8cbc..618a96d93f 100644
--- a/gtk2_ardour/editor.h
+++ b/gtk2_ardour/editor.h
@@ -1509,6 +1509,7 @@ private:
 	bool select_new_marker;
 
 	void toggle_all_existing_automation ();
+	void toggle_layer_display ();
 
 	void reverse_selection ();
 	void edit_envelope ();
diff --git a/gtk2_ardour/editor_actions.cc b/gtk2_ardour/editor_actions.cc
index 1993568dd0..eaeda52d19 100644
--- a/gtk2_ardour/editor_actions.cc
+++ b/gtk2_ardour/editor_actions.cc
@@ -257,6 +257,7 @@ Editor::register_actions ()
 	reg_sens (editor_actions, "select-prev-stripable", _("Select Previous Strip"), sigc::bind (sigc::mem_fun(*this, &Editor::select_prev_stripable), false));
 
 	reg_sens (editor_actions, "toggle-all-existing-automation", _("Toggle All Existing Automation"), sigc::mem_fun (*this, &Editor::toggle_all_existing_automation));
+	reg_sens (editor_actions, "toggle-layer-display", _("Toggle Layer Display"), sigc::mem_fun (*this, &Editor::toggle_layer_display));
 
 	act = reg_sens (editor_actions, "track-record-enable-toggle", _("Toggle Record Enable"), sigc::mem_fun(*this, &Editor::toggle_record_enable));
 	ActionManager::track_selection_sensitive_actions.push_back (act);
diff --git a/gtk2_ardour/editor_ops.cc b/gtk2_ardour/editor_ops.cc
index 09101347e0..92385e41b7 100644
--- a/gtk2_ardour/editor_ops.cc
+++ b/gtk2_ardour/editor_ops.cc
@@ -8531,3 +8531,34 @@ Editor::toggle_all_existing_automation ()
 		tvl.foreach_stripable_time_axis (boost::bind (&StripableTimeAxisView::hide_all_automation, _1, false));
 	}
 }
+
+void
+Editor::toggle_layer_display ()
+{
+	TrackViewList & tvl (selection->tracks.empty() ? track_views : selection->tracks);
+	bool seen_stacked = false;
+	bool seen_overlaid = false;
+
+	for (TrackViewList::const_iterator t = tvl.begin(); t != tvl.end(); ++t) {
+		RouteTimeAxisView* rtav = dynamic_cast<RouteTimeAxisView*> (*t);
+
+		if (!rtav || !rtav->is_track()) {
+			continue;
+		}
+
+		if (rtav->layer_display () == Stacked) {
+			seen_stacked = true;
+		} else if (rtav->layer_display() == Overlaid) {
+			seen_overlaid = true;
+		}
+	}
+
+	if (seen_stacked && seen_overlaid) {
+		/* inconsistent current display - go to overlaid */
+		tvl.foreach_route_time_axis (boost::bind (&RouteTimeAxisView::set_layer_display, _1, Overlaid));
+
+	} else {
+		tvl.foreach_route_time_axis (boost::bind (&RouteTimeAxisView::toggle_layer_display, _1));
+	}
+
+}