diff --git a/Cargo.lock b/Cargo.lock
index aec3b9902..edd194524 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -924,7 +924,7 @@ dependencies = [
 [[package]]
 name = "cosmic-settings-config"
 version = "0.1.0"
-source = "git+https://github.com/pop-os/cosmic-settings-daemon#e37160f14d1e7ee428f973cd2848b4e95f83dfe1"
+source = "git+https://github.com/krakotay/cosmic-settings-daemon?branch=caps-lock-bindings#da097d919fa5b660c72c9a0e6a517f795d449ff0"
 dependencies = [
  "cosmic-config",
  "ron 0.11.0",
@@ -945,7 +945,7 @@ dependencies = [
 [[package]]
 name = "cosmic-settings-daemon-config"
 version = "0.1.0"
-source = "git+https://github.com/pop-os/cosmic-settings-daemon#e37160f14d1e7ee428f973cd2848b4e95f83dfe1"
+source = "git+https://github.com/krakotay/cosmic-settings-daemon?branch=caps-lock-bindings#da097d919fa5b660c72c9a0e6a517f795d449ff0"
 dependencies = [
  "cosmic-config",
  "cosmic-theme",
diff --git a/Cargo.toml b/Cargo.toml
index fb9fa0bcb..b337d7a09 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -9,6 +9,10 @@ rust-version = "1.93"
 [workspace]
 members = ["cosmic-comp-config"]
 
+[patch.'https://github.com/pop-os/cosmic-settings-daemon']
+cosmic-settings-config = { git = "https://github.com/krakotay/cosmic-settings-daemon", branch = "caps-lock-bindings"}
+cosmic-settings-daemon-config = { git = "https://github.com/krakotay/cosmic-settings-daemon", branch = "caps-lock-bindings"}
+
 [dependencies]
 anyhow = { version = "1.0.102", features = ["backtrace"] }
 bitflags = "2.11.0"
diff --git a/src/config/mod.rs b/src/config/mod.rs
index 1d9b9c921..d3202180a 100644
--- a/src/config/mod.rs
+++ b/src/config/mod.rs
@@ -5,7 +5,8 @@ use crate::{
     state::{BackendData, State},
     utils::prelude::OutputExt,
     wayland::protocols::{
-        output_configuration::OutputConfigurationState, workspace::WorkspaceUpdateGuard,
+        keyboard_layout::KeyboardLayoutState, output_configuration::OutputConfigurationState,
+        workspace::WorkspaceUpdateGuard,
     },
 };
 use anyhow::Context;
@@ -807,19 +808,17 @@ fn config_changed(config: cosmic_config::Config, keys: Vec<String>, state: &mut
                         if let Err(err) = keyboard.set_xkb_config(state, xkb_config_to_wl(&value)) {
                             error!(?err, "Failed to load provided xkb config");
                             // TODO Revert to default?
-                        }
-
-                        // Press and release the numlock key to update modifiers.
-                        if old_modifier_state.num_lock != keyboard.modifier_state().num_lock {
-                            const NUMLOCK_SCANCODE: u32 = 69;
-                            change_modifier_state(&keyboard, NUMLOCK_SCANCODE, state);
-                        }
-                        if old_modifier_state.caps_lock != keyboard.modifier_state().caps_lock {
-                            const CAPSLOCK_SCANCODE: u32 = 58;
-                            change_modifier_state(&keyboard, CAPSLOCK_SCANCODE, state);
+                        } else if keyboard.set_modifier_state(old_modifier_state) != 0 {
+                            keyboard.advertise_modifier_state(state);
+                            <State as smithay::input::SeatHandler>::led_state_changed(
+                                state,
+                                &seat,
+                                keyboard.led_state(),
+                            );
                         }
                     }
                 }
+                KeyboardLayoutState::refresh(state);
                 state.common.config.cosmic_conf.xkb_config = value;
             }
             "keyboard_config" => {
diff --git a/src/input/actions.rs b/src/input/actions.rs
index 3d017697d..3ce75b4b3 100644
--- a/src/input/actions.rs
+++ b/src/input/actions.rs
@@ -9,7 +9,8 @@ use crate::{
     },
     utils::prelude::*,
     wayland::{
-        handlers::xdg_activation::ActivationContext, protocols::workspace::WorkspaceUpdateGuard,
+        handlers::xdg_activation::ActivationContext,
+        protocols::{keyboard_layout::KeyboardLayoutState, workspace::WorkspaceUpdateGuard},
     },
 };
 use cosmic_comp_config::{TileBehavior, workspace::WorkspaceLayout};
@@ -23,6 +24,7 @@ use smithay::{
 #[cfg(not(feature = "debug"))]
 use tracing::info;
 use tracing::{error, warn};
+use xkbcommon::xkb::Keysym;
 
 use std::{os::unix::process::CommandExt, thread};
 
@@ -35,6 +37,24 @@ fn propagate_by_default(action: &shortcuts::Action) -> bool {
     )
 }
 
+fn rotate_layouts(layouts: &mut String, variants: &mut String, active_layout: usize) {
+    let mut layout_entries = layouts.split(',').collect::<Vec<_>>();
+    let mut variant_entries = variants
+        .split(',')
+        .chain(std::iter::repeat(""))
+        .take(layout_entries.len())
+        .collect::<Vec<_>>();
+    if !layout_entries.is_empty() {
+        let offset = active_layout % layout_entries.len();
+        layout_entries.rotate_left(offset);
+        variant_entries.rotate_left(offset);
+    }
+    let new_layouts = layout_entries.join(",");
+    let new_variants = variant_entries.join(",");
+    *layouts = new_layouts;
+    *variants = new_variants;
+}
+
 impl State {
     pub fn handle_action(
         &mut self,
@@ -45,6 +65,30 @@ impl State {
         pattern: shortcuts::Binding,
         direction: Option<Direction>,
     ) {
+        if let Some(keyboard) = seat.get_keyboard() {
+            let mut modifiers = keyboard.modifier_state();
+            let clear_lock = match pattern.key {
+                Some(Keysym::Caps_Lock) if modifiers.caps_lock => {
+                    modifiers.caps_lock = false;
+                    true
+                }
+                Some(Keysym::Num_Lock) if modifiers.num_lock => {
+                    modifiers.num_lock = false;
+                    true
+                }
+                _ => false,
+            };
+
+            if clear_lock && keyboard.set_modifier_state(modifiers) != 0 {
+                keyboard.advertise_modifier_state(self);
+                <State as smithay::input::SeatHandler>::led_state_changed(
+                    self,
+                    seat,
+                    keyboard.led_state(),
+                );
+            }
+        }
+
         // TODO: Detect if started from login manager or tty, and only allow
         // `Terminate` if it will return to login manager.
         if self.common.shell.read().session_lock.is_some()
@@ -1013,6 +1057,31 @@ impl State {
                 self.common.shell.write().toggle_sticky_current(seat);
             }
 
+            Action::System(shortcuts::action::System::InputSourceSwitch) => {
+                if let Some(keyboard) = seat.get_keyboard() {
+                    let active_layout = keyboard.with_xkb_state(self, |mut context| {
+                        context.cycle_next_layout();
+                        context.xkb().lock().unwrap().active_layout().0 as usize
+                    });
+                    KeyboardLayoutState::refresh(self);
+
+                    let mut xkb_config = self.common.config.cosmic_conf.xkb_config.clone();
+                    rotate_layouts(
+                        &mut xkb_config.layout,
+                        &mut xkb_config.variant,
+                        active_layout,
+                    );
+                    if let Err(err) = self
+                        .common
+                        .config
+                        .cosmic_helper
+                        .set("xkb_config", &xkb_config)
+                    {
+                        error!(?err, "Failed to persist active input source");
+                    }
+                }
+            }
+
             // Gets the configured command for a given system action.
             Action::System(system) => {
                 if let Some(command) = self.common.config.system_actions.get(&system) {
@@ -1178,3 +1247,19 @@ fn to_previous_workspace(
         workspace_state,
     )
 }
+
+#[cfg(test)]
+mod tests {
+    use super::rotate_layouts;
+
+    #[test]
+    fn rotating_layouts_keeps_variants_aligned() {
+        let mut layouts = "us,ru,de".to_string();
+        let mut variants = ",phonetic".to_string();
+
+        rotate_layouts(&mut layouts, &mut variants, 1);
+
+        assert_eq!(layouts, "ru,de,us");
+        assert_eq!(variants, "phonetic,,");
+    }
+}
diff --git a/src/input/mod.rs b/src/input/mod.rs
index 39bff9dc0..39813e429 100644
--- a/src/input/mod.rs
+++ b/src/input/mod.rs
@@ -28,6 +28,7 @@ use crate::{
         image_copy_capture::{SessionHolder, cursor_capture_constraints},
         xwayland_keyboard_grab::XWaylandGrabSeat,
     },
+    wayland::protocols::keyboard_layout::KeyboardLayoutState,
 };
 use calloop::{
     RegistrationToken,
@@ -304,6 +305,12 @@ impl State {
                                 keyboard.modifier_state().num_lock;
                         }
                     }
+
+                    if previous_modifiers.serialized.layout_effective
+                        != keyboard.modifier_state().serialized.layout_effective
+                    {
+                        KeyboardLayoutState::refresh(self);
+                    }
                 }
             }
 
@@ -1633,6 +1640,8 @@ impl State {
         let key_matches = |binding_key: Keysym| -> bool {
             raw_syms.contains(&binding_key) || latin_sym.is_some_and(|sym| sym == binding_key)
         };
+        let keycode_matches =
+            |binding_keycode: u32| -> bool { event.key_code().raw() == binding_keycode };
 
         let mut shell = self.common.shell.write();
 
@@ -1919,6 +1928,7 @@ impl State {
 
                 // is this a released (triggered) modifier-only binding?
                 if binding.key.is_none()
+                    && binding.keycode.is_none()
                     && event.state() == KeyState::Released
                     && !cosmic_modifiers_eq_smithay(&binding.modifiers, modifiers)
                     && modifiers_queue.take(binding)
@@ -1932,6 +1942,7 @@ impl State {
 
                 // could this potentially become a modifier-only binding?
                 if binding.key.is_none()
+                    && binding.keycode.is_none()
                     && event.state() == KeyState::Pressed
                     && cosmic_modifiers_eq_smithay(&binding.modifiers, modifiers)
                 {
@@ -1940,9 +1951,9 @@ impl State {
                 }
 
                 // is this a normal binding?
-                if binding.key.is_some()
+                if (binding.key.is_some_and(key_matches)
+                    || binding.keycode.is_some_and(keycode_matches))
                     && event.state() == KeyState::Pressed
-                    && key_matches(binding.key.unwrap())
                     && cosmic_modifiers_eq_smithay(&binding.modifiers, modifiers)
                 {
                     modifiers_queue.clear();
diff --git a/src/wayland/protocols/keyboard_layout.rs b/src/wayland/protocols/keyboard_layout.rs
index f3a44f0a8..108d1710e 100644
--- a/src/wayland/protocols/keyboard_layout.rs
+++ b/src/wayland/protocols/keyboard_layout.rs
@@ -161,6 +161,7 @@ where
                     handle.with_xkb_state(state, |mut context| {
                         context.set_layout(Layout(group));
                     });
+                    KeyboardLayoutState::refresh(state);
                 }
             }
             zcosmic_keyboard_layout_v1::Request::Destroy => {}