diff --git a/packages/element/src/bounds.ts b/packages/element/src/bounds.ts
index a73a7d28bb..a615aea52d 100644
--- a/packages/element/src/bounds.ts
+++ b/packages/element/src/bounds.ts
@@ -1281,7 +1281,7 @@ export const elementCenterPoint = (
   xOffset: number = 0,
   yOffset: number = 0,
 ) => {
-  if (isLinearElement(element)) {
+  if (isLinearElement(element) || isFreeDrawElement(element)) {
     const [x1, y1, x2, y2] = getElementAbsoluteCoords(element, elementsMap);
     const [x, y] = pointFrom<GlobalPoint>((x1 + x2) / 2, (y1 + y2) / 2);
 
diff --git a/packages/element/src/collision.ts b/packages/element/src/collision.ts
index b17d563dbe..4a5abf47d0 100644
--- a/packages/element/src/collision.ts
+++ b/packages/element/src/collision.ts
@@ -154,14 +154,11 @@ export const hitElementItself = ({
 
   // Hit test against the extended, rotated bounding box of the element first
   const bounds = getElementBounds(element, elementsMap, true);
-  const hitBounds = isPointWithinBounds(
-    pointFrom(bounds[0] - threshold, bounds[1] - threshold),
-    pointRotateRads(
-      point,
-      getCenterForBounds(bounds),
-      -element.angle as Radians,
-    ),
-    pointFrom(bounds[2] + threshold, bounds[3] + threshold),
+  const hitBounds = isPointInRotatedBounds(
+    point,
+    bounds,
+    element.angle,
+    threshold,
   );
 
   // PERF: Bail out early if the point is not even in the
@@ -192,18 +189,98 @@ export const hitElementItself = ({
   return result;
 };
 
+const getBoundsCorners = (bounds: Bounds, angle: Radians = 0 as Radians) => {
+  const [x1, y1, x2, y2] = bounds;
+  const center = getCenterForBounds(bounds);
+  const corners = [
+    pointFrom<GlobalPoint>(x1, y1),
+    pointFrom<GlobalPoint>(x2, y1),
+    pointFrom<GlobalPoint>(x2, y2),
+    pointFrom<GlobalPoint>(x1, y2),
+  ] as const;
+
+  if (angle === 0) {
+    return corners;
+  }
+
+  return corners.map((point) => pointRotateRads(point, center, angle)) as [
+    GlobalPoint,
+    GlobalPoint,
+    GlobalPoint,
+    GlobalPoint,
+  ];
+};
+
+const getBoundsEdges = (
+  corners: readonly [GlobalPoint, GlobalPoint, GlobalPoint, GlobalPoint],
+) =>
+  [
+    lineSegment(corners[0], corners[1]),
+    lineSegment(corners[1], corners[2]),
+    lineSegment(corners[2], corners[3]),
+    lineSegment(corners[3], corners[0]),
+  ] as const;
+
+const isPointInRotatedBounds = (
+  point: GlobalPoint,
+  bounds: Bounds,
+  angle: Radians,
+  tolerance = 0,
+) => {
+  const adjustedPoint =
+    angle === 0
+      ? point
+      : pointRotateRads(point, getCenterForBounds(bounds), -angle as Radians);
+
+  return isPointWithinBounds(
+    pointFrom(bounds[0] - tolerance, bounds[1] - tolerance),
+    adjustedPoint,
+    pointFrom(bounds[2] + tolerance, bounds[3] + tolerance),
+  );
+};
+
 export const hitElementBoundingBox = (
   point: GlobalPoint,
   element: ExcalidrawElement,
   elementsMap: ElementsMap,
   tolerance = 0,
 ) => {
-  let [x1, y1, x2, y2] = getElementBounds(element, elementsMap);
-  x1 -= tolerance;
-  y1 -= tolerance;
-  x2 += tolerance;
-  y2 += tolerance;
-  return isPointWithinBounds(pointFrom(x1, y1), point, pointFrom(x2, y2));
+  const bounds = getElementBounds(element, elementsMap, true);
+  return isPointInRotatedBounds(point, bounds, element.angle, tolerance);
+};
+
+export const doBoundsIntersectElementBoundingBox = (
+  intersectorBounds: Bounds,
+  element: ExcalidrawElement,
+  elementsMap: ElementsMap,
+) => {
+  const [x1, y1, x2, y2] = intersectorBounds;
+  const intersectorCorners = [
+    pointFrom<GlobalPoint>(x1, y1),
+    pointFrom<GlobalPoint>(x2, y1),
+    pointFrom<GlobalPoint>(x2, y2),
+    pointFrom<GlobalPoint>(x1, y2),
+  ] as const;
+  const intersectorEdges = getBoundsEdges(intersectorCorners);
+
+  const elementBounds = getElementBounds(element, elementsMap, true);
+  const elementBoundsCorners = getBoundsCorners(elementBounds, element.angle);
+  const elementBoundsEdges = getBoundsEdges(elementBoundsCorners);
+
+  return (
+    elementBoundsCorners.some((point) =>
+      isPointWithinBounds(intersectorCorners[0], point, intersectorCorners[2]),
+    ) ||
+    intersectorCorners.some((point) =>
+      isPointInRotatedBounds(point, elementBounds, element.angle),
+    ) ||
+    intersectorEdges.some((selectionEdge) =>
+      elementBoundsEdges.some(
+        (elementBoundsEdge) =>
+          !!lineSegmentIntersectionPoints(selectionEdge, elementBoundsEdge),
+      ),
+    )
+  );
 };
 
 export const hitElementBoundingBoxOnly = (
diff --git a/packages/element/src/frame.ts b/packages/element/src/frame.ts
index 3c82099546..c5f0a7bee2 100644
--- a/packages/element/src/frame.ts
+++ b/packages/element/src/frame.ts
@@ -99,7 +99,7 @@ export const isElementContainingFrame = (
   element: ExcalidrawElement,
   frame: ExcalidrawFrameLikeElement,
   elementsMap: ElementsMap,
-) => {
+): boolean => {
   return getElementsWithinSelection([frame], element, elementsMap).some(
     (e) => e.id === frame.id,
   );
@@ -140,7 +140,7 @@ export const elementOverlapsWithFrame = (
   element: ExcalidrawElement,
   frame: ExcalidrawFrameLikeElement,
   elementsMap: ElementsMap,
-) => {
+): boolean => {
   return (
     elementsAreInFrameBounds([element], frame, elementsMap) ||
     isElementIntersectingFrame(element, frame, elementsMap) ||
diff --git a/packages/element/src/selection.ts b/packages/element/src/selection.ts
index ea7fdb1b77..0c11328581 100644
--- a/packages/element/src/selection.ts
+++ b/packages/element/src/selection.ts
@@ -1,11 +1,27 @@
-import { arrayToMap, isShallowEqual } from "@excalidraw/common";
+import { arrayToMap, isShallowEqual, type Bounds } from "@excalidraw/common";
+import {
+  lineSegment,
+  pointFrom,
+  type GlobalPoint,
+  type LineSegment,
+} from "@excalidraw/math";
 
 import type {
   AppState,
+  BoxSelectionMode,
   InteractiveCanvasAppState,
 } from "@excalidraw/excalidraw/types";
 
-import { getElementAbsoluteCoords, getElementBounds } from "./bounds";
+import {
+  getElementAbsoluteCoords,
+  getElementBounds,
+  getElementLineSegments,
+} from "./bounds";
+import {
+  doBoundsIntersectElementBoundingBox,
+  intersectElementWithLineSegment,
+  shouldTestInside,
+} from "./collision";
 import { isElementInViewport } from "./sizeHelpers";
 import {
   isBoundToContainer,
@@ -30,6 +46,180 @@ import type {
   NonDeletedExcalidrawElement,
 } from "./types";
 
+// Broad-phase only for overlap mode. This decides whether plain AABB overlap
+// should be refined via the element's rotated local bounds. Elements that fail
+// `shouldTestInside()` still go through the outline-specific path below, so
+// this is intentionally not the whole overlap-selection policy.
+const shouldUseRotatedOverlapBroadPhase = (
+  element: NonDeletedExcalidrawElement,
+) =>
+  element.angle !== 0 &&
+  (isTextElement(element) ||
+    element.type === "freedraw" ||
+    element.type === "image");
+
+const clipLineSegmentToBounds = (
+  segment: LineSegment<GlobalPoint>,
+  bounds: Bounds,
+): LineSegment<GlobalPoint> | null => {
+  const [minX, minY, maxX, maxY] = bounds;
+  const [[x1, y1], [x2, y2]] = segment;
+  const deltaX = x2 - x1;
+  const deltaY = y2 - y1;
+  let tMin = 0;
+  let tMax = 1;
+
+  const clip = (p: number, q: number) => {
+    if (p === 0) {
+      return q >= 0;
+    }
+
+    const ratio = q / p;
+
+    if (p < 0) {
+      if (ratio > tMax) {
+        return false;
+      }
+      tMin = Math.max(tMin, ratio);
+      return true;
+    }
+
+    if (ratio < tMin) {
+      return false;
+    }
+    tMax = Math.min(tMax, ratio);
+    return true;
+  };
+
+  if (
+    !clip(-deltaX, x1 - minX) ||
+    !clip(deltaX, maxX - x1) ||
+    !clip(-deltaY, y1 - minY) ||
+    !clip(deltaY, maxY - y1)
+  ) {
+    return null;
+  }
+
+  return lineSegment(
+    pointFrom<GlobalPoint>(x1 + tMin * deltaX, y1 + tMin * deltaY),
+    pointFrom<GlobalPoint>(x1 + tMax * deltaX, y1 + tMax * deltaY),
+  );
+};
+
+const isPointWithinAabb = (point: GlobalPoint, bounds: Bounds) =>
+  point[0] >= bounds[0] &&
+  point[0] <= bounds[2] &&
+  point[1] >= bounds[1] &&
+  point[1] <= bounds[3];
+
+const shouldSkipElementFromSelection = (element: NonDeletedExcalidrawElement) =>
+  element.locked || element.type === "selection" || isBoundToContainer(element);
+
+const getFrameBoundsForSelection = (
+  element: NonDeletedExcalidrawElement,
+  elementsMap: ElementsMap,
+): Bounds | null => {
+  if (!element.frameId) {
+    return null;
+  }
+
+  const containingFrame = getContainingFrame(element, elementsMap);
+  return containingFrame
+    ? (getElementBounds(containingFrame, elementsMap) as Bounds)
+    : null;
+};
+
+const finalizeElementsInSelection = (
+  elementsInSelection: NonDeletedExcalidrawElement[],
+  excludeElementsInFrames: boolean,
+  elementsMap: ElementsMap,
+): NonDeletedExcalidrawElement[] => {
+  elementsInSelection = excludeElementsInFrames
+    ? excludeElementsInFramesFromSelection(elementsInSelection)
+    : elementsInSelection;
+
+  return elementsInSelection.filter((element) => {
+    const containingFrame = getContainingFrame(element, elementsMap);
+
+    if (containingFrame) {
+      return elementOverlapsWithFrame(element, containingFrame, elementsMap);
+    }
+
+    return true;
+  });
+};
+
+const getSelectionEdges = (
+  selectionBounds: Bounds,
+): readonly LineSegment<GlobalPoint>[] => {
+  const selectionTopLeft = pointFrom<GlobalPoint>(
+    selectionBounds[0],
+    selectionBounds[1],
+  );
+  const selectionBottomRight = pointFrom<GlobalPoint>(
+    selectionBounds[2],
+    selectionBounds[3],
+  );
+
+  return [
+    lineSegment(
+      selectionTopLeft,
+      pointFrom<GlobalPoint>(selectionBounds[2], selectionBounds[1]),
+    ),
+    lineSegment(
+      pointFrom<GlobalPoint>(selectionBounds[2], selectionBounds[1]),
+      selectionBottomRight,
+    ),
+    lineSegment(
+      selectionBottomRight,
+      pointFrom<GlobalPoint>(selectionBounds[0], selectionBounds[3]),
+    ),
+    lineSegment(
+      pointFrom<GlobalPoint>(selectionBounds[0], selectionBounds[3]),
+      selectionTopLeft,
+    ),
+  ];
+};
+
+const getVisibleElementOutlineSegments = (
+  element: NonDeletedExcalidrawElement,
+  frameBounds: Bounds | null,
+  elementsMap: ElementsMap,
+) =>
+  frameBounds
+    ? getElementLineSegments(element, elementsMap).flatMap((segment) => {
+        const clippedSegment = clipLineSegmentToBounds(segment, frameBounds);
+        return clippedSegment ? [clippedSegment] : [];
+      })
+    : getElementLineSegments(element, elementsMap);
+
+const doesSelectionIntersectElementOutline = (
+  element: NonDeletedExcalidrawElement,
+  frameBounds: Bounds | null,
+  selectionEdges: readonly LineSegment<GlobalPoint>[],
+  elementsMap: ElementsMap,
+) =>
+  selectionEdges.some((selectionEdge) =>
+    intersectElementWithLineSegment(
+      element,
+      elementsMap,
+      selectionEdge,
+      0,
+      true,
+    ).some((point) => !frameBounds || isPointWithinAabb(point, frameBounds)),
+  );
+
+const doesSelectionContainElementOutline = (
+  outlineSegments: readonly LineSegment<GlobalPoint>[],
+  selectionBounds: Bounds,
+) =>
+  outlineSegments.length > 0 &&
+  outlineSegments.every(
+    (outlineSegment) =>
+      isPointWithinAabb(outlineSegment[0], selectionBounds) &&
+      isPointWithinAabb(outlineSegment[1], selectionBounds),
+  );
+
 /**
  * Frames and their containing elements are not to be selected at the same time.
  * Given an array of selected elements, if there are frames and their containing elements
@@ -62,55 +252,153 @@ export const getElementsWithinSelection = (
   selection: NonDeletedExcalidrawElement,
   elementsMap: ElementsMap,
   excludeElementsInFrames: boolean = true,
-) => {
-  const [selectionX1, selectionY1, selectionX2, selectionY2] =
+  boxSelectionMode: BoxSelectionMode = "contain",
+): NonDeletedExcalidrawElement[] => {
+  const [selectionStartX, selectionStartY, selectionEndX, selectionEndY] =
     getElementAbsoluteCoords(selection, elementsMap);
+  const selectionX1 = Math.min(selectionStartX, selectionEndX);
+  const selectionY1 = Math.min(selectionStartY, selectionEndY);
+  const selectionX2 = Math.max(selectionStartX, selectionEndX);
+  const selectionY2 = Math.max(selectionStartY, selectionEndY);
+  const selectionBounds = [
+    selectionX1,
+    selectionY1,
+    selectionX2,
+    selectionY2,
+  ] as Bounds;
 
-  let elementsInSelection = elements.filter((element) => {
-    let [elementX1, elementY1, elementX2, elementY2] = getElementBounds(
-      element,
-      elementsMap,
-    );
+  if (boxSelectionMode !== "overlap") {
+    const elementsInSelection: NonDeletedExcalidrawElement[] = [];
 
-    const containingFrame = getContainingFrame(element, elementsMap);
-    if (containingFrame) {
-      const [fx1, fy1, fx2, fy2] = getElementBounds(
-        containingFrame,
-        elementsMap,
-      );
+    for (const element of elements) {
+      if (shouldSkipElementFromSelection(element)) {
+        continue;
+      }
 
-      elementX1 = Math.max(fx1, elementX1);
-      elementY1 = Math.max(fy1, elementY1);
-      elementX2 = Math.min(fx2, elementX2);
-      elementY2 = Math.min(fy2, elementY2);
+      const elementBounds = getElementBounds(element, elementsMap) as Bounds;
+      const frameBounds = getFrameBoundsForSelection(element, elementsMap);
+      let elementX1 = elementBounds[0];
+      let elementY1 = elementBounds[1];
+      let elementX2 = elementBounds[2];
+      let elementY2 = elementBounds[3];
+
+      if (frameBounds) {
+        elementX1 = Math.max(frameBounds[0], elementX1);
+        elementY1 = Math.max(frameBounds[1], elementY1);
+        elementX2 = Math.min(frameBounds[2], elementX2);
+        elementY2 = Math.min(frameBounds[3], elementY2);
+      }
+
+      if (
+        selectionX1 <= elementX1 &&
+        selectionY1 <= elementY1 &&
+        selectionX2 >= elementX2 &&
+        selectionY2 >= elementY2
+      ) {
+        elementsInSelection.push(element);
+      }
     }
 
-    return (
-      element.locked === false &&
-      element.type !== "selection" &&
-      !isBoundToContainer(element) &&
+    return finalizeElementsInSelection(
+      elementsInSelection,
+      excludeElementsInFrames,
+      elementsMap,
+    );
+  }
+
+  const selectionEdges = getSelectionEdges(selectionBounds);
+  const elementsInSelection: NonDeletedExcalidrawElement[] = [];
+
+  for (const element of elements) {
+    if (shouldSkipElementFromSelection(element)) {
+      continue;
+    }
+
+    const elementBounds = getElementBounds(element, elementsMap) as Bounds;
+    const frameBounds = getFrameBoundsForSelection(element, elementsMap);
+    let elementX1 = elementBounds[0];
+    let elementY1 = elementBounds[1];
+    let elementX2 = elementBounds[2];
+    let elementY2 = elementBounds[3];
+
+    if (frameBounds) {
+      elementX1 = Math.max(frameBounds[0], elementX1);
+      elementY1 = Math.max(frameBounds[1], elementY1);
+      elementX2 = Math.min(frameBounds[2], elementX2);
+      elementY2 = Math.min(frameBounds[3], elementY2);
+    }
+
+    const isSelectionContainingElement =
       selectionX1 <= elementX1 &&
       selectionY1 <= elementY1 &&
       selectionX2 >= elementX2 &&
-      selectionY2 >= elementY2
-    );
-  });
+      selectionY2 >= elementY2;
 
-  elementsInSelection = excludeElementsInFrames
-    ? excludeElementsInFramesFromSelection(elementsInSelection)
-    : elementsInSelection;
+    const isSelectionOverlappingElementAabb =
+      selectionX1 <= elementX2 &&
+      selectionY1 <= elementY2 &&
+      selectionX2 >= elementX1 &&
+      selectionY2 >= elementY1;
+    const isSelectionOverlappingElement = shouldUseRotatedOverlapBroadPhase(
+      element,
+    )
+      ? isSelectionOverlappingElementAabb &&
+        doBoundsIntersectElementBoundingBox(
+          selectionBounds,
+          element,
+          elementsMap,
+        )
+      : isSelectionOverlappingElementAabb;
 
-  elementsInSelection = elementsInSelection.filter((element) => {
-    const containingFrame = getContainingFrame(element, elementsMap);
+    const shouldSelectFromInside = shouldTestInside(element);
 
-    if (containingFrame) {
-      return elementOverlapsWithFrame(element, containingFrame, elementsMap);
+    if (shouldSelectFromInside) {
+      if (isSelectionOverlappingElement) {
+        elementsInSelection.push(element);
+      }
+      continue;
     }
 
-    return true;
-  });
+    if (!isSelectionOverlappingElement) {
+      continue;
+    }
 
-  return elementsInSelection;
+    if (isSelectionContainingElement) {
+      elementsInSelection.push(element);
+      continue;
+    }
+
+    if (
+      doesSelectionIntersectElementOutline(
+        element,
+        frameBounds,
+        selectionEdges,
+        elementsMap,
+      )
+    ) {
+      elementsInSelection.push(element);
+      continue;
+    }
+
+    const outlineSegments = getVisibleElementOutlineSegments(
+      element,
+      frameBounds,
+      elementsMap,
+    );
+
+    if (
+      outlineSegments.length > 0 &&
+      doesSelectionContainElementOutline(outlineSegments, selectionBounds)
+    ) {
+      elementsInSelection.push(element);
+    }
+  }
+
+  return finalizeElementsInSelection(
+    elementsInSelection,
+    excludeElementsInFrames,
+    elementsMap,
+  );
 };
 
 export const getVisibleAndNonSelectedElements = (
diff --git a/packages/excalidraw/appState.ts b/packages/excalidraw/appState.ts
index e51865b2ea..c8a87b63d6 100644
--- a/packages/excalidraw/appState.ts
+++ b/packages/excalidraw/appState.ts
@@ -193,6 +193,7 @@ const APP_STATE_STORAGE_CONF = (<
   gridModeEnabled: { browser: true, export: true, server: true },
   height: { browser: false, export: false, server: false },
   isBindingEnabled: { browser: true, export: false, server: false },
+  boxSelectionMode: { browser: true, export: false, server: false },
   bindingPreference: { browser: true, export: false, server: false },
   isMidpointSnappingEnabled: { browser: true, export: false, server: false },
   defaultSidebarDockedPreference: {
diff --git a/packages/excalidraw/components/App.tsx b/packages/excalidraw/components/App.tsx
index 5561594cb0..767a751e25 100644
--- a/packages/excalidraw/components/App.tsx
+++ b/packages/excalidraw/components/App.tsx
@@ -10267,6 +10267,7 @@ class App extends React.Component<AppProps, AppState> {
                 this.state.selectionElement,
                 this.scene.getNonDeletedElementsMap(),
                 false,
+                this.state.boxSelectionMode,
               )
             : [];
 
diff --git a/packages/excalidraw/components/RadioGroup.scss b/packages/excalidraw/components/RadioGroup.scss
index 28ddc8889b..d550d95b3b 100644
--- a/packages/excalidraw/components/RadioGroup.scss
+++ b/packages/excalidraw/components/RadioGroup.scss
@@ -26,13 +26,16 @@
     background: var(--RadioGroup-background);
     border: 1px solid var(--RadioGroup-border);
 
+    gap: 2px;
+
     &__choice {
       position: relative;
       display: flex;
       align-items: center;
       justify-content: center;
-      width: 32px;
+      min-width: 20px;
       height: 24px;
+      padding: 0 0.375rem;
 
       color: var(--RadioGroup-choice-color-off);
       background: var(--RadioGroup-choice-background-off);
diff --git a/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss b/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss
index e207203d60..3080314250 100644
--- a/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss
+++ b/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss
@@ -2,7 +2,7 @@
 
 .excalidraw {
   .dropdown-menu {
-    max-width: 16rem;
+    max-width: 20rem;
     z-index: 1;
 
     &--placement-top {
diff --git a/packages/excalidraw/components/dropdownMenu/DropdownMenuItemContentRadio.tsx b/packages/excalidraw/components/dropdownMenu/DropdownMenuItemContentRadio.tsx
index 4f2986c30e..63646745fb 100644
--- a/packages/excalidraw/components/dropdownMenu/DropdownMenuItemContentRadio.tsx
+++ b/packages/excalidraw/components/dropdownMenu/DropdownMenuItemContentRadio.tsx
@@ -1,4 +1,5 @@
 import { useEditorInterface } from "../App";
+import { Ellipsify } from "../Ellipsify";
 import { RadioGroup } from "../RadioGroup";
 
 type Props<T> = {
@@ -12,6 +13,7 @@ type Props<T> = {
   onChange: (value: T) => void;
   children: React.ReactNode;
   name: string;
+  icon?: React.ReactNode;
 };
 
 const DropdownMenuItemContentRadio = <T,>({
@@ -21,13 +23,17 @@ const DropdownMenuItemContentRadio = <T,>({
   choices,
   children,
   name,
+  icon,
 }: Props<T>) => {
   const editorInterface = useEditorInterface();
 
   return (
     <>
       <div className="dropdown-menu-item-base dropdown-menu-item-bare">
-        <label className="dropdown-menu-item__text">{children}</label>
+        {icon && <div className="dropdown-menu-item__icon">{icon}</div>}
+        <label className="dropdown-menu-item__text">
+          <Ellipsify>{children}</Ellipsify>
+        </label>
         <RadioGroup
           name={name}
           value={value}
diff --git a/packages/excalidraw/components/main-menu/DefaultItems.tsx b/packages/excalidraw/components/main-menu/DefaultItems.tsx
index 8865dfa7ae..0dc48f3105 100644
--- a/packages/excalidraw/components/main-menu/DefaultItems.tsx
+++ b/packages/excalidraw/components/main-menu/DefaultItems.tsx
@@ -39,7 +39,13 @@ import DropdownMenuItemCheckbox from "../dropdownMenu/DropdownMenuItemCheckbox";
 import DropdownMenuItemContentRadio from "../dropdownMenu/DropdownMenuItemContentRadio";
 import DropdownMenuItemLink from "../dropdownMenu/DropdownMenuItemLink";
 import DropdownMenuSub from "../dropdownMenu/DropdownMenuSub";
-import { GithubIcon, DiscordIcon, XBrandIcon, settingsIcon } from "../icons";
+import {
+  GithubIcon,
+  DiscordIcon,
+  XBrandIcon,
+  settingsIcon,
+  emptyIcon,
+} from "../icons";
 import {
   boltIcon,
   DeviceDesktopIcon,
@@ -427,6 +433,40 @@ const PreferencesToggleToolLockItem = () => {
   );
 };
 
+const PreferencesBoxSelectionModeItem = () => {
+  const { t } = useI18n();
+  const appState = useUIAppState();
+  const setAppState = useExcalidrawSetAppState();
+  const boxSelectionMode = appState.boxSelectionMode ?? "contain";
+
+  return (
+    <DropdownMenuItemContentRadio<"contain" | "overlap">
+      name="boxSelectionMode"
+      icon={emptyIcon}
+      value={boxSelectionMode}
+      onChange={(value) => {
+        setAppState({
+          boxSelectionMode: value === "contain" ? undefined : value,
+        });
+      }}
+      choices={[
+        {
+          value: "contain",
+          label: t("labels.boxSelectionContain"),
+          ariaLabel: t("labels.boxSelectionContain"),
+        },
+        {
+          value: "overlap",
+          label: t("labels.boxSelectionOverlap"),
+          ariaLabel: t("labels.boxSelectionOverlap"),
+        },
+      ]}
+    >
+      {t("labels.boxSelectionMode")}
+    </DropdownMenuItemContentRadio>
+  );
+};
+
 const PreferencesToggleSnapModeItem = () => {
   const { t } = useI18n();
   const actionManager = useExcalidrawActionManager();
@@ -568,6 +608,7 @@ export const Preferences = ({
       <DropdownMenuSub.Content className="excalidraw-main-menu-preferences-submenu">
         {children || (
           <>
+            <PreferencesBoxSelectionModeItem />
             <PreferencesToggleToolLockItem />
             <PreferencesToggleSnapModeItem />
             <PreferencesToggleGridModeItem />
@@ -585,6 +626,7 @@ export const Preferences = ({
 };
 
 Preferences.ToggleToolLock = PreferencesToggleToolLockItem;
+Preferences.BoxSelectionMode = PreferencesBoxSelectionModeItem;
 Preferences.ToggleSnapMode = PreferencesToggleSnapModeItem;
 Preferences.ToggleArrowBinding = PreferencesToggleArrowBindingItem;
 Preferences.ToggleMidpointSnapping = PreferencesToggleMidpointSnappingItem;
diff --git a/packages/excalidraw/data/restore.ts b/packages/excalidraw/data/restore.ts
index 1ed068dc1c..7a8b9e586c 100644
--- a/packages/excalidraw/data/restore.ts
+++ b/packages/excalidraw/data/restore.ts
@@ -936,6 +936,12 @@ export const restoreAppState = (
         : defaultValue;
   }
 
+  const boxSelectionMode =
+    appState.boxSelectionMode ?? localAppState?.boxSelectionMode;
+  if (boxSelectionMode !== undefined) {
+    nextAppState.boxSelectionMode = boxSelectionMode;
+  }
+
   return {
     ...nextAppState,
     cursorButton: localAppState?.cursorButton || "up",
diff --git a/packages/excalidraw/locales/en.json b/packages/excalidraw/locales/en.json
index 42e87bdf82..05d3bf702e 100644
--- a/packages/excalidraw/locales/en.json
+++ b/packages/excalidraw/locales/en.json
@@ -185,6 +185,9 @@
     "shapeSwitch": "Switch shape",
     "preferences": "Preferences",
     "preferences_toolLock": "Tool lock",
+    "boxSelectionMode": "Select on",
+    "boxSelectionContain": "Wrap",
+    "boxSelectionOverlap": "Overlap",
     "arrowBinding": "Arrow binding",
     "midpointSnapping": "Snap to midpoints"
   },
diff --git a/packages/excalidraw/tests/__snapshots__/contextmenu.test.tsx.snap b/packages/excalidraw/tests/__snapshots__/contextmenu.test.tsx.snap
index 15458fa366..d178cc64ab 100644
--- a/packages/excalidraw/tests/__snapshots__/contextmenu.test.tsx.snap
+++ b/packages/excalidraw/tests/__snapshots__/contextmenu.test.tsx.snap
@@ -4358,7 +4358,7 @@ exports[`contextMenu element > selecting 'Ungroup selection' in context menu ung
   "type": "rectangle",
   "updated": 1,
   "version": 5,
-  "versionNonce": 760410951,
+  "versionNonce": 1006504105,
   "width": 20,
   "x": -10,
   "y": 0,
@@ -4383,14 +4383,14 @@ exports[`contextMenu element > selecting 'Ungroup selection' in context menu ung
   "opacity": 100,
   "roughness": 1,
   "roundness": null,
-  "seed": 238820263,
+  "seed": 400692809,
   "strokeColor": "#1e1e1e",
   "strokeStyle": "solid",
   "strokeWidth": 2,
   "type": "rectangle",
   "updated": 1,
   "version": 5,
-  "versionNonce": 1006504105,
+  "versionNonce": 289600103,
   "width": 20,
   "x": 20,
   "y": 30,
@@ -6864,7 +6864,7 @@ exports[`contextMenu element > shows 'Ungroup selection' in context menu for gro
   "type": "rectangle",
   "updated": 1,
   "version": 4,
-  "versionNonce": 747212839,
+  "versionNonce": 1723083209,
   "width": 10,
   "x": -10,
   "y": 0,
@@ -6891,14 +6891,14 @@ exports[`contextMenu element > shows 'Ungroup selection' in context menu for gro
   "opacity": 100,
   "roughness": 1,
   "roundness": null,
-  "seed": 238820263,
+  "seed": 400692809,
   "strokeColor": "#1e1e1e",
   "strokeStyle": "solid",
   "strokeWidth": 2,
   "type": "rectangle",
   "updated": 1,
   "version": 4,
-  "versionNonce": 1723083209,
+  "versionNonce": 760410951,
   "width": 10,
   "x": 12,
   "y": 0,
diff --git a/packages/excalidraw/tests/selection.test.tsx b/packages/excalidraw/tests/selection.test.tsx
index 64204f1a00..449f6c13dc 100644
--- a/packages/excalidraw/tests/selection.test.tsx
+++ b/packages/excalidraw/tests/selection.test.tsx
@@ -1,7 +1,9 @@
 import React from "react";
 import { vi } from "vitest";
 
-import { KEYS, reseed } from "@excalidraw/common";
+import { KEYS, ROUNDNESS, reseed } from "@excalidraw/common";
+import { getElementBounds, getElementLineSegments } from "@excalidraw/element";
+import { pointFrom, type LocalPoint } from "@excalidraw/math";
 
 import { SHAPES } from "../components/shapes";
 
@@ -12,6 +14,7 @@ import * as StaticScene from "../renderer/staticScene";
 import { API } from "./helpers/api";
 import { Keyboard, Pointer, UI } from "./helpers/ui";
 import {
+  act,
   render,
   fireEvent,
   mockBoundingClientRect,
@@ -39,6 +42,19 @@ const { h } = window;
 
 const mouse = new Pointer("mouse");
 
+const getOutlineBounds = (element: ReturnType<typeof API.createElement>) => {
+  const sceneElement = API.getElement(element);
+  const elementsMap = h.scene.getNonDeletedElementsMap();
+  const points = getElementLineSegments(sceneElement, elementsMap).flat();
+
+  return [
+    Math.min(...points.map((point) => point[0])),
+    Math.min(...points.map((point) => point[1])),
+    Math.max(...points.map((point) => point[0])),
+    Math.max(...points.map((point) => point[1])),
+  ] as const;
+};
+
 describe("box-selection", () => {
   beforeEach(async () => {
     await render(<Excalidraw />);
@@ -108,6 +124,368 @@ describe("box-selection", () => {
 
     assertSelectedElements([]);
   });
+
+  it("should not select an element when the selection box only partially overlaps it", () => {
+    const rect1 = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 50,
+      height: 50,
+      backgroundColor: "red",
+      fillStyle: "solid",
+    });
+
+    API.setElements([rect1]);
+
+    mouse.downAt(25, -20);
+    mouse.move(-1000, -1000);
+    mouse.moveTo(75, 70);
+    mouse.up();
+
+    assertSelectedElements([]);
+  });
+});
+
+describe("lasso reselection", () => {
+  beforeEach(async () => {
+    await render(<Excalidraw />);
+  });
+
+  it("should allow ctrl+alt lasso reselection when starting inside the active common bounds", () => {
+    const rectA = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      backgroundColor: "red",
+      fillStyle: "solid",
+    });
+    const rectB = API.createElement({
+      type: "rectangle",
+      x: 220,
+      y: 0,
+      width: 100,
+      height: 100,
+      backgroundColor: "blue",
+      fillStyle: "solid",
+    });
+
+    API.setElements([rectA, rectB]);
+    mouse.select([rectA, rectB]);
+    act(() => {
+      h.app.setActiveTool({ type: "lasso" });
+    });
+
+    Keyboard.withModifierKeys({ ctrl: true, alt: true }, () => {
+      mouse.downAt(110, 50);
+      mouse.moveTo(50, -20);
+
+      expect(h.app.lassoTrail.hasCurrentTrail).toBe(true);
+
+      mouse.moveTo(-20, 50);
+      mouse.moveTo(50, 120);
+      mouse.moveTo(110, 50);
+      mouse.up();
+    });
+
+    assertSelectedElements([rectA.id]);
+  });
+});
+
+describe("box-selection overlap mode", () => {
+  const boxSelect = (
+    startX: number,
+    startY: number,
+    endX: number,
+    endY: number,
+  ) => {
+    mouse.downAt(startX, startY);
+    mouse.move(-1000, -1000);
+    mouse.moveTo(endX, endY);
+    mouse.up();
+  };
+
+  beforeEach(async () => {
+    await render(
+      <Excalidraw
+        initialData={{ appState: { boxSelectionMode: "overlap" } }}
+      />,
+    );
+  });
+
+  it("should select an element when the selection box partially overlaps it", () => {
+    const rect1 = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 50,
+      height: 50,
+      backgroundColor: "red",
+      fillStyle: "solid",
+    });
+
+    API.setElements([rect1]);
+
+    boxSelect(25, -20, 75, 70);
+
+    assertSelectedElements([rect1.id]);
+  });
+
+  it("should not select a transparent rectangle when the selection box stays inside it", () => {
+    const rect1 = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      backgroundColor: "transparent",
+      fillStyle: "solid",
+    });
+
+    API.setElements([rect1]);
+
+    boxSelect(25, 25, 75, 75);
+
+    assertSelectedElements([]);
+  });
+
+  it("should select a transparent rectangle when the selection box crosses its outline", () => {
+    const rect1 = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      backgroundColor: "transparent",
+      fillStyle: "solid",
+    });
+
+    API.setElements([rect1]);
+
+    boxSelect(25, 25, 125, 75);
+
+    assertSelectedElements([rect1.id]);
+  });
+
+  it("should not select a rotated transparent rectangle when the selection box stays inside it", () => {
+    const rect1 = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      angle: Math.PI / 4,
+      backgroundColor: "transparent",
+      fillStyle: "solid",
+    });
+
+    API.setElements([rect1]);
+
+    boxSelect(40, 40, 60, 60);
+
+    assertSelectedElements([]);
+  });
+
+  it("should select a rotated rounded rectangle when the selection box contains its outline but not its bounds", () => {
+    const rect = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 180,
+      angle: Math.PI / 6,
+      backgroundColor: "transparent",
+      fillStyle: "solid",
+      roundness: { type: ROUNDNESS.ADAPTIVE_RADIUS },
+      roughness: 0,
+    });
+
+    API.setElements([rect]);
+
+    const sceneRect = API.getElement(rect);
+    const elementsMap = h.scene.getNonDeletedElementsMap();
+    const [boundsX1, boundsY1, boundsX2, boundsY2] = getElementBounds(
+      sceneRect,
+      elementsMap,
+    );
+    const [outlineX1, outlineY1, outlineX2, outlineY2] = getOutlineBounds(rect);
+
+    expect(outlineX1).toBeGreaterThan(boundsX1);
+    expect(outlineY1).toBeGreaterThan(boundsY1);
+    expect(outlineX2).toBeLessThan(boundsX2);
+    expect(outlineY2).toBeLessThan(boundsY2);
+
+    boxSelect(
+      outlineX1 - (outlineX1 - boundsX1) / 2,
+      outlineY1 - (outlineY1 - boundsY1) / 2,
+      outlineX2 + (boundsX2 - outlineX2) / 2,
+      outlineY2 + (boundsY2 - outlineY2) / 2,
+    );
+
+    assertSelectedElements([rect.id]);
+  });
+
+  it("should not select rotated text when the selection box only overlaps its axis-aligned bounds", () => {
+    const text = API.createElement({
+      type: "text",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      angle: Math.PI / 4,
+      text: "test",
+    });
+
+    API.setElements([text]);
+
+    boxSelect(-18, -18, -8, -8);
+
+    assertSelectedElements([]);
+  });
+
+  it("should not select rotated image when the selection box only overlaps its axis-aligned bounds", () => {
+    const image = API.createElement({
+      type: "image",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      angle: Math.PI / 4,
+      fileId: "file_A",
+      status: "saved",
+    });
+
+    API.setElements([image]);
+
+    boxSelect(-18, -18, -8, -8);
+
+    assertSelectedElements([]);
+  });
+
+  it("should deselect a selected rotated rectangle when clicking in the empty corner of its axis-aligned bounds", () => {
+    const rect = API.createElement({
+      type: "rectangle",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      angle: Math.PI / 4,
+      backgroundColor: "red",
+      fillStyle: "solid",
+    });
+
+    API.setElements([rect]);
+
+    mouse.clickAt(50, 50);
+    assertSelectedElements([rect.id]);
+
+    const sceneRect = API.getElement(rect);
+    const elementsMap = h.scene.getNonDeletedElementsMap();
+    const [x1, y1] = getElementBounds(sceneRect, elementsMap);
+
+    mouse.clickAt(x1 + 2, y1 + 2);
+
+    assertSelectedElements([]);
+  });
+
+  it("should not select a line when the selection box only overlaps its bounds", () => {
+    const line = API.createElement({
+      type: "line",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      backgroundColor: "transparent",
+      points: [pointFrom<LocalPoint>(0, 0), pointFrom<LocalPoint>(100, 100)],
+    });
+
+    API.setElements([line]);
+
+    boxSelect(20, 50, 30, 60);
+
+    assertSelectedElements([]);
+  });
+
+  it("should not click-select rotated freedraw in the corner of its axis-aligned bounds", () => {
+    const freedraw = API.createElement({
+      type: "freedraw",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      angle: Math.PI / 4,
+      backgroundColor: "transparent",
+      points: [
+        pointFrom<LocalPoint>(0, 0),
+        pointFrom<LocalPoint>(100, 0),
+        pointFrom<LocalPoint>(100, 100),
+        pointFrom<LocalPoint>(0, 100),
+        pointFrom<LocalPoint>(0, 0),
+      ],
+    });
+
+    API.setElements([freedraw]);
+
+    const sceneFreedraw = API.getElement(freedraw);
+    const elementsMap = h.scene.getNonDeletedElementsMap();
+    const [x1, y1] = getElementBounds(sceneFreedraw, elementsMap);
+
+    mouse.clickAt(x1 + 2, y1 + 2);
+
+    assertSelectedElements([]);
+  });
+
+  it("should not select a freedraw when the selection box only overlaps its bounds", () => {
+    const freedraw = API.createElement({
+      type: "freedraw",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      backgroundColor: "transparent",
+      points: [
+        pointFrom<LocalPoint>(0, 0),
+        pointFrom<LocalPoint>(50, 50),
+        pointFrom<LocalPoint>(100, 100),
+      ],
+    });
+
+    API.setElements([freedraw]);
+
+    boxSelect(20, 50, 30, 60);
+
+    assertSelectedElements([]);
+  });
+
+  it("should not select a transparent framed element when the selection box stays inside its clipped bounds", () => {
+    const frame = API.createElement({
+      type: "frame",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+      backgroundColor: "transparent",
+      fillStyle: "solid",
+    });
+    const rect1 = API.createElement({
+      type: "rectangle",
+      x: 50,
+      y: 10,
+      width: 100,
+      height: 80,
+      frameId: frame.id,
+      backgroundColor: "transparent",
+      fillStyle: "solid",
+    });
+
+    API.setElements([frame, rect1]);
+
+    boxSelect(60, 20, 90, 60);
+
+    assertSelectedElements([]);
+  });
 });
 
 describe("inner box-selection", () => {
diff --git a/packages/excalidraw/types.ts b/packages/excalidraw/types.ts
index cae4e7b93f..79c35dd1c8 100644
--- a/packages/excalidraw/types.ts
+++ b/packages/excalidraw/types.ts
@@ -269,6 +269,8 @@ export type ObservedElementsAppState = {
   activeLockedId: AppState["activeLockedId"];
 };
 
+export type BoxSelectionMode = "contain" | "overlap";
+
 export interface AppState {
   contextMenu: {
     items: ContextMenuItems;
@@ -307,6 +309,8 @@ export interface AppState {
    * `bindingPreference` and keyboard modifiers (ctrl/alt)
    */
   isBindingEnabled: boolean;
+  /** user box selection preference; defaults to "contain" when unset */
+  boxSelectionMode?: BoxSelectionMode;
   /** user arrow binding preference */
   bindingPreference: "enabled" | "disabled";
   /** user preference whether arrow snap to midpoints while binding */