diff --git a/include/sway/desktop/fx_renderer/fx_renderer.h b/include/sway/desktop/fx_renderer/fx_renderer.h
index 2e78357c..4f2fd1db 100644
--- a/include/sway/desktop/fx_renderer/fx_renderer.h
+++ b/include/sway/desktop/fx_renderer/fx_renderer.h
@@ -18,6 +18,7 @@
 		.saturation = 1.0f, \
 		.has_titlebar = false, \
 		.blur = false, \
+		.can_blur_xray = false, \
 		.shadow = false, \
 	}
 
@@ -45,6 +46,7 @@ struct decoration_data {
 	float *dim_color;
 	bool has_titlebar;
 	bool blur;
+	bool can_blur_xray;
 	bool shadow;
 };
 
diff --git a/sway/desktop/layer_shell.c b/sway/desktop/layer_shell.c
index 85ea639c..256ad98c 100644
--- a/sway/desktop/layer_shell.c
+++ b/sway/desktop/layer_shell.c
@@ -692,6 +692,8 @@ void handle_layer_shell_surface(struct wl_listener *listener, void *data) {
 			struct layer_effects *effect = config->layer_effects->items[i];
 			if (strcmp(effect->namespace, layer_surface->namespace) == 0) {
 				sway_layer->effects = effect;
+				// Blur optimization won't work for BOTTOM layered surfaces
+				sway_layer->effects->deco_data.can_blur_xray = layer != ZWLR_LAYER_SHELL_V1_LAYER_BOTTOM;
 				break;
 			}
 		}
diff --git a/sway/desktop/render.c b/sway/desktop/render.c
index 04b34f30..e7f28692 100644
--- a/sway/desktop/render.c
+++ b/sway/desktop/render.c
@@ -333,7 +333,7 @@ void render_blur(bool optimized, struct sway_output *output,
 	wlr_region_scale(&inverse_opaque, &inverse_opaque, wlr_output->scale);
 
 	struct fx_framebuffer *buffer = &renderer->blur_buffer;
-	if (!buffer->texture.id || (!optimized && !config->blur_xray)) {
+	if (!buffer->texture.id || !optimized) {
 		pixman_region32_translate(&inverse_opaque, dst_box->x, dst_box->y);
 		pixman_region32_intersect(&inverse_opaque, &inverse_opaque, &damage);
 
@@ -451,10 +451,10 @@ static void render_surface_iterator(struct sway_output *output,
 
 	// render blur (view->surface == surface excludes blurring subsurfaces)
 	bool is_subsurface = false; // TODO: discussion here, would all cases where view is null be a non subsurface?
-	bool should_optimize_blur = config->blur_xray; // TODO: for layershell bottom layer should be optimized
+	bool should_optimize_blur = deco_data.can_blur_xray && config->blur_xray;
 	if (view) {
 		is_subsurface = view->surface != surface;
-		should_optimize_blur = !container_is_floating(view->container);
+		should_optimize_blur = !container_is_floating(view->container) || config->blur_xray;
 	}
 	if (deco_data.blur && should_parameters_blur() && !is_subsurface) {
 		pixman_region32_t opaque_region;
@@ -1446,6 +1446,7 @@ static void render_containers_linear(struct sway_output *output,
 				.saturation = child->saturation,
 				.has_titlebar = has_titlebar,
 				.blur = child->blur_enabled,
+				.can_blur_xray = true,
 				.shadow = child->shadow_enabled,
 			};
 			render_view(output, damage, child, colors, deco_data);
@@ -1496,6 +1497,7 @@ static void render_containers_tabbed(struct sway_output *output,
 		.saturation = current->saturation,
 		.has_titlebar = true,
 		.blur = current->blur_enabled,
+		.can_blur_xray = true,
 	};
 
 	// Render tabs
@@ -1591,6 +1593,7 @@ static void render_containers_stacked(struct sway_output *output,
 				? 0 : current->corner_radius,
 		.has_titlebar = true,
 		.blur = current->blur_enabled,
+		.can_blur_xray = true,
 	};
 
 	// Render titles
@@ -1738,6 +1741,7 @@ static void render_floating_container(struct sway_output *soutput,
 			.corner_radius = con->corner_radius,
 			.has_titlebar = has_titlebar,
 			.blur = con->blur_enabled,
+			.can_blur_xray = true,
 			.shadow = con->shadow_enabled,
 		};
 		render_view(soutput, damage, con, colors, deco_data);
@@ -1855,7 +1859,9 @@ static struct workspace_effect_info get_workspace_effect_info(struct sway_output
 				if (layer_effects->deco_data.blur && !lsurface->layer_surface->surface->opaque) {
 					effect_info.container_wants_blur = true;
 					// Check if we should render optimized blur
-					if (renderer->blur_buffer_dirty && config->blur_xray) {
+					if (renderer->blur_buffer_dirty && config->blur_xray
+							&& lsurface->layer != ZWLR_LAYER_SHELL_V1_LAYER_BACKGROUND
+							&& lsurface->layer != ZWLR_LAYER_SHELL_V1_LAYER_BOTTOM) {
 						effect_info.should_render_optimized_blur = true;
 					}
 				}
@@ -2079,6 +2085,7 @@ void output_render(struct sway_output *output, struct timespec *when,
 			.saturation = focus->saturation,
 			.has_titlebar = false,
 			.blur = false,
+			.can_blur_xray = false,
 			.shadow = false,
 		};
 		render_view_popups(focus->view, output, damage, deco_data);
diff --git a/sway/sway.5.scd b/sway/sway.5.scd
index 8d23a265..9ad3626e 100644
--- a/sway/sway.5.scd
+++ b/sway/sway.5.scd
@@ -74,8 +74,8 @@ The following commands may only be used in the configuration file.
 *layer_effects* <layer-namespace> <effects>
 	Apply effects on specific layer shell surfaces, eg waybar or rofi.
 	At least one effect needs to be provided. The <layer-namespace> can be
-	gotten through *sway-ipc*. Note: only surfaces in the _top_ and _overlay_
-	layers can use these effects.
+	gotten through *sway-ipc*. Note: Surfaces in the _bottom_ layer cannot
+	use these effects.
 
 	Effects:
 	- *blur* <enable|disable>