diff --git a/autogen/lua_definitions/constants.lua b/autogen/lua_definitions/constants.lua
index 385ef1b7..3a437fd8 100644
--- a/autogen/lua_definitions/constants.lua
+++ b/autogen/lua_definitions/constants.lua
@@ -2462,6 +2462,9 @@ CUTSCENE_LOOP = 0x7FFF
 --- @type integer
 CUTSCENE_NONPAINTING_DEATH = 170
 
+--- @type integer
+CUTSCENE_PALETTE_EDITOR = 182
+
 --- @type integer
 CUTSCENE_PREPARE_CANNON = 150
 
@@ -8797,6 +8800,9 @@ ACT_SUFFOCATION = 0x00021314
 --- @type integer
 ACT_SWIMMING_END = 0x300024D1
 
+--- @type integer
+ACT_TAKING_OFF_CAP = 0x0000133E
+
 --- @type integer
 ACT_TELEPORT_FADE_IN = 0x00001337
 
diff --git a/autogen/lua_definitions/structs.lua b/autogen/lua_definitions/structs.lua
index 58a18b4f..5ff48a20 100644
--- a/autogen/lua_definitions/structs.lua
+++ b/autogen/lua_definitions/structs.lua
@@ -219,6 +219,7 @@
 --- @field public mode integer
 --- @field public mtx Mat4
 --- @field public nextYaw integer
+--- @field public paletteEditorCap boolean
 --- @field public pos Vec3f
 --- @field public unusedVec1 Vec3f
 --- @field public yaw integer
diff --git a/docs/lua/constants.md b/docs/lua/constants.md
index 74b96bd4..f483010c 100644
--- a/docs/lua/constants.md
+++ b/docs/lua/constants.md
@@ -777,6 +777,7 @@
 - CUTSCENE_KEY_DANCE
 - CUTSCENE_LOOP
 - CUTSCENE_NONPAINTING_DEATH
+- CUTSCENE_PALETTE_EDITOR
 - CUTSCENE_PREPARE_CANNON
 - CUTSCENE_QUICKSAND_DEATH
 - CUTSCENE_RACE_DIALOG
@@ -3144,6 +3145,7 @@
 - ACT_STOP_CROUCHING
 - ACT_SUFFOCATION
 - ACT_SWIMMING_END
+- ACT_TAKING_OFF_CAP
 - ACT_TELEPORT_FADE_IN
 - ACT_TELEPORT_FADE_OUT
 - ACT_THROWING
diff --git a/docs/lua/structs.md b/docs/lua/structs.md
index 6925c3f8..333e5d24 100644
--- a/docs/lua/structs.md
+++ b/docs/lua/structs.md
@@ -365,6 +365,7 @@
 | mode | `integer` |  |
 | mtx | `Mat4` | read-only |
 | nextYaw | `integer` |  |
+| paletteEditorCap | `boolean` |  |
 | pos | [Vec3f](structs.md#Vec3f) | read-only |
 | unusedVec1 | [Vec3f](structs.md#Vec3f) | read-only |
 | yaw | `integer` |  |
diff --git a/include/sm64.h b/include/sm64.h
index 80bdd25b..b3a2c68a 100644
--- a/include/sm64.h
+++ b/include/sm64.h
@@ -396,6 +396,7 @@
 #define ACT_BUTT_STUCK_IN_GROUND       0x0002033B // (0x13B | ACT_FLAG_STATIONARY | ACT_FLAG_INVULNERABLE)
 #define ACT_FEET_STUCK_IN_GROUND       0x0002033C // (0x13C | ACT_FLAG_STATIONARY | ACT_FLAG_INVULNERABLE)
 #define ACT_PUTTING_ON_CAP             0x0000133D // (0x13D | ACT_FLAG_STATIONARY | ACT_FLAG_INTANGIBLE)
+#define ACT_TAKING_OFF_CAP             0x0000133E // (0x13E | ACT_FLAG_STATIONARY | ACT_FLAG_INTANGIBLE) // ! COOP ACTION
 
 // group 0x140: "automatic" actions
 #define ACT_HOLDING_POLE               0x08100340 // (0x140 | ACT_FLAG_STATIONARY | ACT_FLAG_ON_POLE | ACT_FLAG_PAUSE_EXIT)
diff --git a/src/game/camera.c b/src/game/camera.c
index 63215367..0b5f5fc2 100644
--- a/src/game/camera.c
+++ b/src/game/camera.c
@@ -28,6 +28,7 @@
 #include "paintings.h"
 #include "engine/graph_node.h"
 #include "level_table.h"
+#include "mario.h"
 #include "game/hardcoded.h"
 #include "game/sound_init.h"
 #include "pc/configfile.h"
@@ -472,6 +473,8 @@ s32 update_slide_or_0f_camera(struct Camera *c, Vec3f, Vec3f);
 s32 update_spiral_stairs_camera(struct Camera *c, Vec3f, Vec3f);
 s32 update_rom_hack_camera(struct Camera *c, Vec3f, Vec3f);
 void mode_rom_hack_camera(struct Camera *c);
+void cutscene_take_cap_off(struct MarioState *m);
+void cutscene_put_cap_on(struct MarioState *m);
 
 typedef s32 (*CameraTransition)(struct Camera *c, Vec3f, Vec3f);
 CameraTransition sModeTransitions[] = {
@@ -3343,6 +3346,12 @@ void update_camera(struct Camera *c) {
     update_lakitu(c);
 
     gLakituState.lastFrameAction = sMarioCamState->action;
+
+    // Make sure the palette editor cutscene is properly reset
+    if (c->paletteEditorCap && c->cutscene != CUTSCENE_PALETTE_EDITOR && (gMarioState->flags & MARIO_CAP_ON_HEAD) == 0) {
+        cutscene_put_cap_on(gMarioState);
+        c->paletteEditorCap = false;
+    }
 }
 
 void soft_reset_camera(struct Camera* c) {
@@ -10849,6 +10858,35 @@ BAD_RETURN(s32) cutscene_door_mode(struct Camera *c) {
     }
 }
 
+// coop specific
+void cutscene_palette_editor(struct Camera *c) {
+    if (!c) { return; }
+    struct MarioState* m = gMarioState;
+
+    if (!gInPlayerMenu) {
+        if (c->paletteEditorCap) {
+            if (!(m->flags & MARIO_CAP_ON_HEAD)) {
+                set_mario_action(m, ACT_PUTTING_ON_CAP, 0);
+            }
+            c->paletteEditorCap = false;
+        }
+        c->cutscene = 0;
+        return;
+    }
+    if (m->action == ACT_IDLE && m->flags & MARIO_CAP_ON_HEAD) {
+        set_mario_action(m, ACT_TAKING_OFF_CAP, 0);
+        c->paletteEditorCap = true;
+    }
+
+    c->pos[0] = m->pos[0] + (0x200 * sins(m->faceAngle[1]));
+    c->pos[1] = m->pos[1] + 0x80;
+    c->pos[2] = m->pos[2] + (0x200 * coss(m->faceAngle[1]));
+
+    c->focus[0] = m->pos[0];
+    c->focus[1] = m->pos[1] + 0x80;
+    c->focus[2] = m->pos[2];
+}
+
 /******************************************************************************************************
  * Cutscenes
  ******************************************************************************************************/
@@ -11247,6 +11285,10 @@ struct Cutscene sCutsceneReadMessage[] = {
     { cutscene_read_message_end, 0 }
 };
 
+struct Cutscene sCutscenePaletteEditor[] = {
+    { cutscene_palette_editor, CUTSCENE_LOOP },
+};
+
 /* TODO:
  * The next two arrays are both related to levels, and they look generated.
  * These should be split into their own file.
@@ -11720,6 +11762,7 @@ void play_cutscene(struct Camera *c) {
         CUTSCENE(CUTSCENE_RACE_DIALOG, sCutsceneDialog)
         CUTSCENE(CUTSCENE_ENTER_PYRAMID_TOP, sCutsceneEnterPyramidTop)
         CUTSCENE(CUTSCENE_SSL_PYRAMID_EXPLODE, sCutscenePyramidTopExplode)
+        CUTSCENE(CUTSCENE_PALETTE_EDITOR, sCutscenePaletteEditor)
     }
 
 #undef CUTSCENE
diff --git a/src/game/camera.h b/src/game/camera.h
index 217ad751..20f8cbaa 100644
--- a/src/game/camera.h
+++ b/src/game/camera.h
@@ -257,6 +257,7 @@ extern u8 gRomhackCameraAllowDpad;
 #define CUTSCENE_EXIT_WATERFALL       179
 #define CUTSCENE_EXIT_FALL_WMOTR      180
 #define CUTSCENE_ENTER_POOL           181
+#define CUTSCENE_PALETTE_EDITOR       182
 
 /**
  * Stop the cutscene.
@@ -575,6 +576,7 @@ struct Camera
     /// when paused. See zoom_out_if_paused_and_outside
     /*0x68*/ f32 areaCenY;
     /*????*/ Mat4 mtx;
+    /*????*/ bool paletteEditorCap;
 };
 
 /**
diff --git a/src/game/ingame_menu.c b/src/game/ingame_menu.c
index a10ce041..53e717c5 100644
--- a/src/game/ingame_menu.c
+++ b/src/game/ingame_menu.c
@@ -3154,7 +3154,7 @@ s16 render_pause_courses_and_castle(void) {
         gDialogTextAlpha += 25;
     }
 
-    if (gDjuiPanelPauseCreated) { shade_screen(); }
+    if (gDjuiPanelPauseCreated && !gInPlayerMenu) { shade_screen(); }
     if (gPlayer1Controller->buttonPressed & R_TRIG) {
         djui_panel_pause_create(NULL);
     }
diff --git a/src/game/level_update.c b/src/game/level_update.c
index c2535546..4fee9d4b 100644
--- a/src/game/level_update.c
+++ b/src/game/level_update.c
@@ -1646,6 +1646,12 @@ void update_menu_level(void) {
             gMarioState->faceAngle[1] = -0x1C34;
             break;
     }
+    gLakituState.skipCameraInterpolationTimestamp = gGlobalTimer;
+    extern s32 gCamSkipInterp;
+    gCamSkipInterp = 1;
+    vec3f_copy(gCurrentArea->camera->pos, gLakituState.curPos);
+    vec3f_copy(gLakituState.pos, gLakituState.curPos);
+    vec3f_copy(gLakituState.goalPos, gLakituState.curPos);
 
     gMarioState->health = 0x880;
     // reset input
diff --git a/src/game/mario_actions_cutscene.c b/src/game/mario_actions_cutscene.c
index a0ec7b8d..30a101b0 100644
--- a/src/game/mario_actions_cutscene.c
+++ b/src/game/mario_actions_cutscene.c
@@ -1847,7 +1847,7 @@ s32 act_squished(struct MarioState *m) {
 s32 act_putting_on_cap(struct MarioState *m) {
     s32 animFrame = set_character_animation(m, CHAR_ANIM_PUT_CAP_ON);
 
-    if (animFrame == 0) {
+    if (animFrame == 0 && !m->area->camera->paletteEditorCap) {
         enable_time_stop_if_alone();
     }
 
@@ -1864,6 +1864,28 @@ s32 act_putting_on_cap(struct MarioState *m) {
     return FALSE;
 }
 
+// coop custom action
+s32 act_taking_off_cap(struct MarioState *m) {
+    s16 animFrame = set_character_animation(m, CHAR_ANIM_TAKE_CAP_OFF_THEN_ON);
+    switch (animFrame) {
+        case 0:
+            if (!m->area->camera->paletteEditorCap) {
+                enable_time_stop_if_alone();
+            }
+            break;
+        case 12:
+            cutscene_take_cap_off(m);
+            break;
+        case 30:
+            set_mario_action(m, ACT_IDLE, 0);
+            disable_time_stop();
+            break;
+    }
+
+    stationary_ground_step(m);
+    return FALSE;
+}
+
 void stuck_in_ground_handler(struct MarioState *m, s32 animation, s32 unstuckFrame, s32 target2,
                              s32 target3, s32 endAction) {
     if (!m) { return; }
@@ -3124,6 +3146,7 @@ s32 mario_execute_cutscene_action(struct MarioState *m) {
             case ACT_BUTT_STUCK_IN_GROUND:       cancel = act_butt_stuck_in_ground(m);       break;
             case ACT_FEET_STUCK_IN_GROUND:       cancel = act_feet_stuck_in_ground(m);       break;
             case ACT_PUTTING_ON_CAP:             cancel = act_putting_on_cap(m);             break;
+            case ACT_TAKING_OFF_CAP:             cancel = act_taking_off_cap(m);             break;
             default:
                 LOG_ERROR("Attempted to execute unimplemented action '%04X'", m->action);
                 set_mario_action(m, ACT_IDLE, 0);
diff --git a/src/game/mario_actions_stationary.c b/src/game/mario_actions_stationary.c
index 0bc00d9a..c64f6523 100644
--- a/src/game/mario_actions_stationary.c
+++ b/src/game/mario_actions_stationary.c
@@ -132,11 +132,11 @@ s32 act_idle(struct MarioState *m) {
         if (m->area && ((m->area->terrainType & TERRAIN_MASK) == TERRAIN_SNOW)) {
             return set_mario_action(m, ACT_SHIVERING, 0);
         } else {
-            if (!gDjuiInMainMenu) {
-                return set_mario_action(m, ACT_START_SLEEPING, 0);
-            } else {
+            if (gDjuiInMainMenu || gInPlayerMenu) {
                 m->actionState = 0;
                 m->actionTimer = 0;
+            } else {
+                return set_mario_action(m, ACT_START_SLEEPING, 0);
             }
         }
     }
@@ -274,7 +274,7 @@ s32 act_sleeping(struct MarioState *m) {
     if (!m) { return 0; }
     s32 animFrame;
     if (m->playerIndex == 0) {
-        if (m->input 
+        if (m->input
             & (INPUT_NONZERO_ANALOG | INPUT_A_PRESSED | INPUT_OFF_FLOOR | INPUT_ABOVE_SLIDE
                | INPUT_FIRST_PERSON | INPUT_UNKNOWN_10 | INPUT_B_PRESSED | INPUT_Z_PRESSED)) {
             return set_mario_action(m, ACT_WAKING_UP, m->actionState);
diff --git a/src/pc/djui/djui_panel_player.c b/src/pc/djui/djui_panel_player.c
index a2bbbfc3..226c62ca 100644
--- a/src/pc/djui/djui_panel_player.c
+++ b/src/pc/djui/djui_panel_player.c
@@ -20,6 +20,14 @@ static struct DjuiSelectionbox* sPalettePresetSelection;
 static struct DjuiInputbox* sHexColorTextBox;
 static struct DjuiSlider *sSliderR, *sSliderG, *sSliderB;
 
+bool gDjuiPanelPlayerCreated = false;
+
+static void djui_panel_player_update_camera_cutscene(void) {
+    if (gMarioState->area && gMarioState->area->camera && gMarioState->area->camera->cutscene == 0) {
+        gMarioState->area->camera->cutscene = CUTSCENE_PALETTE_EDITOR;
+    }
+}
+
 static void djui_panel_player_edit_palette_update_hex_code_box(void) {
     char buf[7];
     static const char digitToChar[] = "0123456789abcdef";
@@ -235,6 +243,7 @@ static void djui_panel_player_destroy(UNUSED struct DjuiBase* caller) {
 
 void djui_panel_player_create(struct DjuiBase* caller) {
     djui_panel_player_prevent_demo(NULL);
+    djui_panel_player_update_camera_cutscene();
     gInPlayerMenu = true;
 
     struct DjuiThreePanel* panel = djui_panel_menu_create(DLANG(PLAYER, PLAYER_TITLE));
diff --git a/src/pc/lua/smlua_cobject_autogen.c b/src/pc/lua/smlua_cobject_autogen.c
index d52b8444..b2f5914c 100644
--- a/src/pc/lua/smlua_cobject_autogen.c
+++ b/src/pc/lua/smlua_cobject_autogen.c
@@ -254,23 +254,24 @@ static struct LuaObjectField sBullyCollisionDataFields[LUA_BULLY_COLLISION_DATA_
     { "velZ",            LVT_F32, offsetof(struct BullyCollisionData, velZ),            false, LOT_NONE },
 };
 
-#define LUA_CAMERA_FIELD_COUNT 13
+#define LUA_CAMERA_FIELD_COUNT 14
 static struct LuaObjectField sCameraFields[LUA_CAMERA_FIELD_COUNT] = {
-    { "areaCenX",   LVT_F32,     offsetof(struct Camera, areaCenX),   false, LOT_NONE  },
-    { "areaCenY",   LVT_F32,     offsetof(struct Camera, areaCenY),   false, LOT_NONE  },
-    { "areaCenZ",   LVT_F32,     offsetof(struct Camera, areaCenZ),   false, LOT_NONE  },
-    { "cutscene",   LVT_U8,      offsetof(struct Camera, cutscene),   false, LOT_NONE  },
-    { "defMode",    LVT_U8,      offsetof(struct Camera, defMode),    false, LOT_NONE  },
-    { "doorStatus", LVT_U8,      offsetof(struct Camera, doorStatus), false, LOT_NONE  },
-//  { "filler31",   LOT_???,     offsetof(struct Camera, filler31),   false, LOT_???   }, <--- UNIMPLEMENTED
-//  { "filler3C",   LOT_???,     offsetof(struct Camera, filler3C),   false, LOT_???   }, <--- UNIMPLEMENTED
-    { "focus",      LVT_COBJECT, offsetof(struct Camera, focus),      true,  LOT_VEC3F },
-    { "mode",       LVT_U8,      offsetof(struct Camera, mode),       false, LOT_NONE  },
-    { "mtx",        LVT_COBJECT, offsetof(struct Camera, mtx),        true,  LOT_MAT4  },
-    { "nextYaw",    LVT_S16,     offsetof(struct Camera, nextYaw),    false, LOT_NONE  },
-    { "pos",        LVT_COBJECT, offsetof(struct Camera, pos),        true,  LOT_VEC3F },
-    { "unusedVec1", LVT_COBJECT, offsetof(struct Camera, unusedVec1), true,  LOT_VEC3F },
-    { "yaw",        LVT_S16,     offsetof(struct Camera, yaw),        false, LOT_NONE  },
+    { "areaCenX",         LVT_F32,     offsetof(struct Camera, areaCenX),         false, LOT_NONE  },
+    { "areaCenY",         LVT_F32,     offsetof(struct Camera, areaCenY),         false, LOT_NONE  },
+    { "areaCenZ",         LVT_F32,     offsetof(struct Camera, areaCenZ),         false, LOT_NONE  },
+    { "cutscene",         LVT_U8,      offsetof(struct Camera, cutscene),         false, LOT_NONE  },
+    { "defMode",          LVT_U8,      offsetof(struct Camera, defMode),          false, LOT_NONE  },
+    { "doorStatus",       LVT_U8,      offsetof(struct Camera, doorStatus),       false, LOT_NONE  },
+//  { "filler31",         LOT_???,     offsetof(struct Camera, filler31),         false, LOT_???   }, <--- UNIMPLEMENTED
+//  { "filler3C",         LOT_???,     offsetof(struct Camera, filler3C),         false, LOT_???   }, <--- UNIMPLEMENTED
+    { "focus",            LVT_COBJECT, offsetof(struct Camera, focus),            true,  LOT_VEC3F },
+    { "mode",             LVT_U8,      offsetof(struct Camera, mode),             false, LOT_NONE  },
+    { "mtx",              LVT_COBJECT, offsetof(struct Camera, mtx),              true,  LOT_MAT4  },
+    { "nextYaw",          LVT_S16,     offsetof(struct Camera, nextYaw),          false, LOT_NONE  },
+    { "paletteEditorCap", LVT_BOOL,    offsetof(struct Camera, paletteEditorCap), false, LOT_NONE  },
+    { "pos",              LVT_COBJECT, offsetof(struct Camera, pos),              true,  LOT_VEC3F },
+    { "unusedVec1",       LVT_COBJECT, offsetof(struct Camera, unusedVec1),       true,  LOT_VEC3F },
+    { "yaw",              LVT_S16,     offsetof(struct Camera, yaw),              false, LOT_NONE  },
 };
 
 #define LUA_CAMERA_FOVSTATUS_FIELD_COUNT 8
diff --git a/src/pc/lua/smlua_constants_autogen.c b/src/pc/lua/smlua_constants_autogen.c
index 7781f292..2fd0b6c2 100644
--- a/src/pc/lua/smlua_constants_autogen.c
+++ b/src/pc/lua/smlua_constants_autogen.c
@@ -1059,6 +1059,7 @@ char gSmluaConstants[] = ""
 "CUTSCENE_EXIT_WATERFALL = 179\n"
 "CUTSCENE_EXIT_FALL_WMOTR = 180\n"
 "CUTSCENE_ENTER_POOL = 181\n"
+"CUTSCENE_PALETTE_EDITOR = 182\n"
 "CUTSCENE_STOP = 0x8000\n"
 "CUTSCENE_LOOP = 0x7FFF\n"
 "HAND_CAM_SHAKE_OFF = 0\n"
@@ -3232,6 +3233,7 @@ char gSmluaConstants[] = ""
 "ACT_BUTT_STUCK_IN_GROUND = 0x0002033B\n"
 "ACT_FEET_STUCK_IN_GROUND = 0x0002033C\n"
 "ACT_PUTTING_ON_CAP = 0x0000133D\n"
+"ACT_TAKING_OFF_CAP = 0x0000133E\n"
 "ACT_HOLDING_POLE = 0x08100340\n"
 "ACT_GRAB_POLE_SLOW = 0x00100341\n"
 "ACT_GRAB_POLE_FAST = 0x00100342\n"