diff --git a/excalidraw-app/App.tsx b/excalidraw-app/App.tsx
index 67536cc4d5..43cfeecb24 100644
--- a/excalidraw-app/App.tsx
+++ b/excalidraw-app/App.tsx
@@ -119,6 +119,7 @@ import {
   LibraryIndexedDBAdapter,
   LibraryLocalStorageMigrationAdapter,
   LocalData,
+  localStorageQuotaExceededAtom,
 } from "./data/LocalData";
 import { isBrowserStorageStateNewer } from "./data/tabSync";
 import { ShareDialog, shareDialogStateAtom } from "./share/ShareDialog";
@@ -727,6 +728,8 @@ const ExcalidrawWrapper = () => {
 
   const isOffline = useAtomValue(isOfflineAtom);
 
+  const localStorageQuotaExceeded = useAtomValue(localStorageQuotaExceededAtom);
+
   const onCollabDialogOpen = useCallback(
     () => setShareDialogState({ isOpen: true, type: "collaborationOnly" }),
     [setShareDialogState],
@@ -901,10 +904,15 @@ const ExcalidrawWrapper = () => {
 
         <TTDDialogTrigger />
         {isCollaborating && isOffline && (
-          <div className="collab-offline-warning">
+          <div className="alertalert--warning">
             {t("alerts.collabOfflineWarning")}
           </div>
         )}
+        {localStorageQuotaExceeded && (
+          <div className="alert alert--danger">
+            {t("alerts.localStorageQuotaExceeded")}
+          </div>
+        )}
         {latestShareableLink && (
           <ShareableLinkDialog
             link={latestShareableLink}
diff --git a/excalidraw-app/data/LocalData.ts b/excalidraw-app/data/LocalData.ts
index 35a6837b7d..e4f472d82f 100644
--- a/excalidraw-app/data/LocalData.ts
+++ b/excalidraw-app/data/LocalData.ts
@@ -26,6 +26,8 @@ import {
   get,
 } from "idb-keyval";
 
+import { appJotaiStore, atom } from "excalidraw-app/app-jotai";
+
 import type { LibraryPersistedData } from "@excalidraw/excalidraw/data/library";
 import type { ImportedDataState } from "@excalidraw/excalidraw/data/types";
 import type { ExcalidrawElement, FileId } from "@excalidraw/element/types";
@@ -44,6 +46,8 @@ import { updateBrowserStateVersion } from "./tabSync";
 
 const filesStore = createStore("files-db", "files-store");
 
+export const localStorageQuotaExceededAtom = atom(false);
+
 class LocalFileManager extends FileManager {
   clearObsoleteFiles = async (opts: { currentFileIds: FileId[] }) => {
     await entries(filesStore).then((entries) => {
@@ -68,6 +72,9 @@ const saveDataStateToLocalStorage = (
   elements: readonly ExcalidrawElement[],
   appState: AppState,
 ) => {
+  const localStorageQuotaExceeded = appJotaiStore.get(
+    localStorageQuotaExceededAtom,
+  );
   try {
     const _appState = clearAppStateForLocalStorage(appState);
 
@@ -87,12 +94,22 @@ const saveDataStateToLocalStorage = (
       JSON.stringify(_appState),
     );
     updateBrowserStateVersion(STORAGE_KEYS.VERSION_DATA_STATE);
+    if (localStorageQuotaExceeded) {
+      appJotaiStore.set(localStorageQuotaExceededAtom, false);
+    }
   } catch (error: any) {
     // Unable to access window.localStorage
     console.error(error);
+    if (isQuotaExceededError(error) && !localStorageQuotaExceeded) {
+      appJotaiStore.set(localStorageQuotaExceededAtom, true);
+    }
   }
 };
 
+const isQuotaExceededError = (error: any) => {
+  return error instanceof DOMException && error.name === "QuotaExceededError";
+};
+
 type SavingLockTypes = "collaboration";
 
 export class LocalData {
diff --git a/excalidraw-app/index.scss b/excalidraw-app/index.scss
index cfaaf9cea2..9f320775be 100644
--- a/excalidraw-app/index.scss
+++ b/excalidraw-app/index.scss
@@ -58,7 +58,7 @@
     }
   }
 
-  .collab-offline-warning {
+  .alert {
     pointer-events: none;
     position: absolute;
     top: 6.5rem;
@@ -69,10 +69,18 @@
     text-align: center;
     line-height: 1.5;
     border-radius: var(--border-radius-md);
-    background-color: var(--color-warning);
-    color: var(--color-text-warning);
     z-index: 6;
     white-space: pre;
+
+    &--warning {
+      background-color: var(--color-warning);
+      color: var(--color-text-warning);
+    }
+
+    &--danger {
+      background-color: var(--color-danger-dark);
+      color: var(--color-danger-text);
+    }
   }
 }
 
diff --git a/packages/common/src/binary-heap.ts b/packages/common/src/binary-heap.ts
index 788a05c223..5abf484998 100644
--- a/packages/common/src/binary-heap.ts
+++ b/packages/common/src/binary-heap.ts
@@ -5,17 +5,18 @@ export class BinaryHeap<T> {
 
   sinkDown(idx: number) {
     const node = this.content[idx];
+    const nodeScore = this.scoreFunction(node);
     while (idx > 0) {
       const parentN = ((idx + 1) >> 1) - 1;
       const parent = this.content[parentN];
-      if (this.scoreFunction(node) < this.scoreFunction(parent)) {
-        this.content[parentN] = node;
+      if (nodeScore < this.scoreFunction(parent)) {
         this.content[idx] = parent;
         idx = parentN; // TODO: Optimize
       } else {
         break;
       }
     }
+    this.content[idx] = node;
   }
 
   bubbleUp(idx: number) {
@@ -24,35 +25,39 @@ export class BinaryHeap<T> {
     const score = this.scoreFunction(node);
 
     while (true) {
-      const child2N = (idx + 1) << 1;
-      const child1N = child2N - 1;
-      let swap = null;
-      let child1Score = 0;
+      const child1N = ((idx + 1) << 1) - 1;
+      const child2N = child1N + 1;
+      let smallestIdx = idx;
+      let smallestScore = score;
 
+      // Check left child
       if (child1N < length) {
-        const child1 = this.content[child1N];
-        child1Score = this.scoreFunction(child1);
-        if (child1Score < score) {
-          swap = child1N;
+        const child1Score = this.scoreFunction(this.content[child1N]);
+        if (child1Score < smallestScore) {
+          smallestIdx = child1N;
+          smallestScore = child1Score;
         }
       }
 
+      // Check right child
       if (child2N < length) {
-        const child2 = this.content[child2N];
-        const child2Score = this.scoreFunction(child2);
-        if (child2Score < (swap === null ? score : child1Score)) {
-          swap = child2N;
+        const child2Score = this.scoreFunction(this.content[child2N]);
+        if (child2Score < smallestScore) {
+          smallestIdx = child2N;
         }
       }
 
-      if (swap !== null) {
-        this.content[idx] = this.content[swap];
-        this.content[swap] = node;
-        idx = swap; // TODO: Optimize
-      } else {
+      if (smallestIdx === idx) {
         break;
       }
+
+      // Move the smaller child up, continue finding position for node
+      this.content[idx] = this.content[smallestIdx];
+      idx = smallestIdx;
     }
+
+    // Place node in its final position
+    this.content[idx] = node;
   }
 
   push(node: T) {
diff --git a/packages/element/src/index.ts b/packages/element/src/index.ts
index b8427a2923..a365c517de 100644
--- a/packages/element/src/index.ts
+++ b/packages/element/src/index.ts
@@ -28,6 +28,9 @@ export const hashElementsVersion = (elements: ElementsMapOrArray): number => {
 
 // string hash function (using djb2). Not cryptographically secure, use only
 // for versioning and such.
+// note: hashes individual code units (not code points),
+// but for hashing purposes this is fine as it iterates through every code unit
+// (as such, no need to encode to byte string first)
 export const hashString = (s: string): number => {
   let hash: number = 5381;
   for (let i = 0; i < s.length; i++) {
diff --git a/packages/excalidraw/components/InlineIcon.tsx b/packages/excalidraw/components/InlineIcon.tsx
index f2fe9d5252..04c04fb688 100644
--- a/packages/excalidraw/components/InlineIcon.tsx
+++ b/packages/excalidraw/components/InlineIcon.tsx
@@ -12,8 +12,9 @@ export const InlineIcon = ({
       className={className}
       style={{
         width: size,
+        height: "100%",
         margin: "0 0.5ex 0 0.5ex",
-        display: "inline-block",
+        display: "inline-flex",
         lineHeight: 0,
         verticalAlign: "middle",
         flex: "0 0 auto",
diff --git a/packages/excalidraw/components/LibraryMenu.tsx b/packages/excalidraw/components/LibraryMenu.tsx
index 0aa6071aa0..9a4f29f179 100644
--- a/packages/excalidraw/components/LibraryMenu.tsx
+++ b/packages/excalidraw/components/LibraryMenu.tsx
@@ -281,19 +281,29 @@ export const LibraryMenu = memo(() => {
           if (target.closest(`.${CLASSES.SIDEBAR}`)) {
             // stop propagation so that we don't prevent it downstream
             // (default browser behavior is to clear search input on ESC)
-            event.stopPropagation();
             if (selectedItems.length > 0) {
+              event.stopPropagation();
               setSelectedItems([]);
             } else if (
               isWritableElement(target) &&
               target instanceof HTMLInputElement &&
               !target.value
             ) {
+              event.stopPropagation();
               // if search input empty -> close library
               // (maybe not a good idea?)
               setAppState({ openSidebar: null });
               app.focusContainer();
             }
+          } else if (selectedItems.length > 0) {
+            const { x, y } = app.lastViewportPosition;
+            const elementUnderCursor = document.elementFromPoint(x, y);
+            // also deselect elements if sidebar doesn't have focus but the
+            // cursor is over it
+            if (elementUnderCursor?.closest(`.${CLASSES.SIDEBAR}`)) {
+              event.stopPropagation();
+              setSelectedItems([]);
+            }
           }
         }
       },
diff --git a/packages/excalidraw/components/LibraryMenuItems.tsx b/packages/excalidraw/components/LibraryMenuItems.tsx
index 3a78bbec4e..c64351b1b3 100644
--- a/packages/excalidraw/components/LibraryMenuItems.tsx
+++ b/packages/excalidraw/components/LibraryMenuItems.tsx
@@ -34,6 +34,8 @@ import { TextField } from "./TextField";
 
 import { useDevice } from "./App";
 
+import { Button } from "./Button";
+
 import type { ExcalidrawLibraryIds } from "../data/types";
 
 import type {
@@ -136,10 +138,13 @@ export default function LibraryMenuItems({
           }
 
           const selectedItemsMap = arrayToMap(selectedItems);
+          // Support both top-down and bottom-up selection by using min/max
+          const minRange = Math.min(rangeStart, rangeEnd);
+          const maxRange = Math.max(rangeStart, rangeEnd);
           const nextSelectedIds = orderedItems.reduce(
             (acc: LibraryItem["id"][], item, idx) => {
               if (
-                (idx >= rangeStart && idx <= rangeEnd) ||
+                (idx >= minRange && idx <= maxRange) ||
                 selectedItemsMap.has(item.id)
               ) {
                 acc.push(item.id);
@@ -167,6 +172,14 @@ export default function LibraryMenuItems({
     ],
   );
 
+  useEffect(() => {
+    // if selection is removed (e.g. via esc), reset last selected item
+    // so that subsequent shift+clicks don't select a large range
+    if (!selectedItems.length) {
+      setLastSelectedItem(null);
+    }
+  }, [selectedItems]);
+
   const getInsertedElements = useCallback(
     (id: string) => {
       let targetElements;
@@ -319,7 +332,14 @@ export default function LibraryMenuItems({
       <div className="library-menu-items-container__header">
         {t("library.search.heading")}
         {!isLoading && (
-          <div className="library-menu-items-container__header__hint">
+          <div
+            className="library-menu-items-container__header__hint"
+            style={{ cursor: "pointer" }}
+            onPointerDown={(e) => e.preventDefault()}
+            onClick={(event) => {
+              setSearchInputValue("");
+            }}
+          >
             <kbd>esc</kbd> to clear
           </div>
         )}
@@ -341,6 +361,15 @@ export default function LibraryMenuItems({
           <div className="library-menu-items__no-items__hint">
             {t("library.search.noResults")}
           </div>
+          <Button
+            onPointerDown={(e) => e.preventDefault()}
+            onSelect={() => {
+              setSearchInputValue("");
+            }}
+            style={{ width: "auto", marginTop: "1rem" }}
+          >
+            {t("library.search.clearSearch")}
+          </Button>
         </div>
       )}
     </>
diff --git a/packages/excalidraw/components/PublishLibrary.tsx b/packages/excalidraw/components/PublishLibrary.tsx
index 076b303d70..cdc038dac3 100644
--- a/packages/excalidraw/components/PublishLibrary.tsx
+++ b/packages/excalidraw/components/PublishLibrary.tsx
@@ -518,7 +518,7 @@ const PublishLibrary = ({
           </div>
           <div className="publish-library__buttons">
             <DialogActionButton
-              label={t("buttons.cancel")}
+              label={t("buttons.saveLibNames")}
               onClick={onDialogClose}
               data-testid="cancel-clear-canvas-button"
             />
diff --git a/packages/excalidraw/data/library.ts b/packages/excalidraw/data/library.ts
index 429ba1046c..abe2fec853 100644
--- a/packages/excalidraw/data/library.ts
+++ b/packages/excalidraw/data/library.ts
@@ -62,6 +62,7 @@ type LibraryUpdate = {
   deletedItems: Map<LibraryItem["id"], LibraryItem>;
   /** newly added items in the library */
   addedItems: Map<LibraryItem["id"], LibraryItem>;
+  updatedItems: Map<LibraryItem["id"], LibraryItem>;
 };
 
 // an object so that we can later add more properties to it without breaking,
@@ -170,6 +171,7 @@ const createLibraryUpdate = (
   const update: LibraryUpdate = {
     deletedItems: new Map<LibraryItem["id"], LibraryItem>(),
     addedItems: new Map<LibraryItem["id"], LibraryItem>(),
+    updatedItems: new Map<LibraryItem["id"], LibraryItem>(),
   };
 
   for (const item of prevLibraryItems) {
@@ -181,8 +183,11 @@ const createLibraryUpdate = (
   const prevItemsMap = arrayToMap(prevLibraryItems);
 
   for (const item of nextLibraryItems) {
-    if (!prevItemsMap.has(item.id)) {
+    const prevItem = prevItemsMap.get(item.id);
+    if (!prevItem) {
       update.addedItems.set(item.id, item);
+    } else if (getLibraryItemHash(prevItem) !== getLibraryItemHash(item)) {
+      update.updatedItems.set(item.id, item);
     }
   }
 
@@ -586,12 +591,14 @@ class AdapterTransaction {
 let lastSavedLibraryItemsHash = 0;
 let librarySaveCounter = 0;
 
+const getLibraryItemHash = (item: LibraryItem) => {
+  return `${item.id}:${item.name || ""}:${hashElementsVersion(item.elements)}`;
+};
+
 export const getLibraryItemsHash = (items: LibraryItems) => {
   return hashString(
     items
-      .map((item) => {
-        return `${item.id}:${hashElementsVersion(item.elements)}`;
-      })
+      .map((item) => getLibraryItemHash(item))
       .sort()
       .join(),
   );
@@ -641,6 +648,13 @@ const persistLibraryUpdate = async (
         }
       }
 
+      // replace existing items with their updated versions
+      if (update.updatedItems) {
+        for (const [id, item] of update.updatedItems) {
+          nextLibraryItemsMap.set(id, item);
+        }
+      }
+
       const nextLibraryItems = addedItems.concat(
         Array.from(nextLibraryItemsMap.values()),
       );
diff --git a/packages/excalidraw/locales/en.json b/packages/excalidraw/locales/en.json
index cd03cfe2f8..b0058575d2 100644
--- a/packages/excalidraw/locales/en.json
+++ b/packages/excalidraw/locales/en.json
@@ -185,7 +185,8 @@
     "search": {
       "inputPlaceholder": "Search library",
       "heading": "Library matches",
-      "noResults": "No matching items found..."
+      "noResults": "No matching items found...",
+      "clearSearch": "Clear search"
     }
   },
   "search": {
@@ -229,10 +230,11 @@
     "objectsSnapMode": "Snap to objects",
     "exitZenMode": "Exit zen mode",
     "cancel": "Cancel",
+    "saveLibNames": "Save name(s) and exit",
     "clear": "Clear",
     "remove": "Remove",
     "embed": "Toggle embedding",
-    "publishLibrary": "Publish selected",
+    "publishLibrary": "Rename or publish",
     "submit": "Submit",
     "confirm": "Confirm",
     "embeddableInteractionButton": "Click to interact"
@@ -258,7 +260,8 @@
     "resetLibrary": "This will clear your library. Are you sure?",
     "removeItemsFromsLibrary": "Delete {{count}} item(s) from library?",
     "invalidEncryptionKey": "Encryption key must be of 22 characters. Live collaboration is disabled.",
-    "collabOfflineWarning": "No internet connection available.\nYour changes will not be saved!"
+    "collabOfflineWarning": "No internet connection available.\nYour changes will not be saved!",
+    "localStorageQuotaExceeded": "Browser storage quota exceeded. Changes will not be saved."
   },
   "errors": {
     "unsupportedFileType": "Unsupported file type.",