diff --git a/src/vs/base/browser/ui/splitview/paneview.ts b/src/vs/base/browser/ui/splitview/paneview.ts
index 8d310aefee9..dd943d0ed32 100644
--- a/src/vs/base/browser/ui/splitview/paneview.ts
+++ b/src/vs/base/browser/ui/splitview/paneview.ts
@@ -15,6 +15,7 @@ import { Color, RGBA } from 'vs/base/common/color';
 import { SplitView, IView } from './splitview';
 import { isFirefox } from 'vs/base/browser/browser';
 import { DataTransfers } from 'vs/base/browser/dnd';
+import { Orientation } from 'vs/base/browser/ui/sash/sash';
 import { localize } from 'vs/nls';
 
 export interface IPaneOptions {
@@ -49,6 +50,7 @@ export abstract class Pane extends Disposable implements IView {
 	private body!: HTMLElement;
 
 	protected _expanded: boolean;
+	protected _preventCollapse?: boolean;
 
 	private expandedSize: number | undefined = undefined;
 	private _headerVisible = true;
@@ -184,20 +186,23 @@ export abstract class Pane extends Disposable implements IView {
 
 		this.updateHeader();
 
-		const onHeaderKeyDown = Event.chain(domEvent(this.header, 'keydown'))
-			.map(e => new StandardKeyboardEvent(e));
 
-		this._register(onHeaderKeyDown.filter(e => e.keyCode === KeyCode.Enter || e.keyCode === KeyCode.Space)
-			.event(() => this.setExpanded(!this.isExpanded()), null));
+		if (!this._preventCollapse) {
+			const onHeaderKeyDown = Event.chain(domEvent(this.header, 'keydown'))
+				.map(e => new StandardKeyboardEvent(e));
 
-		this._register(onHeaderKeyDown.filter(e => e.keyCode === KeyCode.LeftArrow)
-			.event(() => this.setExpanded(false), null));
+			this._register(onHeaderKeyDown.filter(e => e.keyCode === KeyCode.Enter || e.keyCode === KeyCode.Space)
+				.event(() => this.setExpanded(!this.isExpanded()), null));
 
-		this._register(onHeaderKeyDown.filter(e => e.keyCode === KeyCode.RightArrow)
-			.event(() => this.setExpanded(true), null));
+			this._register(onHeaderKeyDown.filter(e => e.keyCode === KeyCode.LeftArrow)
+				.event(() => this.setExpanded(false), null));
 
-		this._register(domEvent(this.header, 'click')
-			(() => this.setExpanded(!this.isExpanded()), null));
+			this._register(onHeaderKeyDown.filter(e => e.keyCode === KeyCode.RightArrow)
+				.event(() => this.setExpanded(true), null));
+
+			this._register(domEvent(this.header, 'click')
+				(() => this.setExpanded(!this.isExpanded()), null));
+		}
 
 		this.body = append(this.element, $('.pane-body'));
 		this.renderBody(this.body);
@@ -372,6 +377,7 @@ export class DefaultPaneDndController implements IPaneDndController {
 
 export interface IPaneViewOptions {
 	dnd?: IPaneDndController;
+	orientation?: Orientation;
 }
 
 interface IPaneItem {
@@ -387,6 +393,7 @@ export class PaneView extends Disposable {
 	private paneItems: IPaneItem[] = [];
 	private width: number = 0;
 	private splitview: SplitView;
+	private orientation: Orientation;
 	private animationTimer: number | undefined = undefined;
 
 	private _onDidDrop = this._register(new Emitter<{ from: Pane, to: Pane }>());
@@ -398,8 +405,9 @@ export class PaneView extends Disposable {
 		super();
 
 		this.dnd = options.dnd;
+		this.orientation = options.orientation ?? Orientation.VERTICAL;
 		this.el = append(container, $('.monaco-pane-view'));
-		this.splitview = this._register(new SplitView(this.el));
+		this.splitview = this._register(new SplitView(this.el, { orientation: this.orientation }));
 		this.onDidSashChange = this.splitview.onDidSashChange;
 	}
 
@@ -472,7 +480,7 @@ export class PaneView extends Disposable {
 			paneItem.pane.width = width;
 		}
 
-		this.splitview.layout(height);
+		this.splitview.layout(this.orientation === Orientation.HORIZONTAL ? width : height);
 	}
 
 	private setupAnimation(): void {
diff --git a/src/vs/workbench/browser/parts/compositeBar.ts b/src/vs/workbench/browser/parts/compositeBar.ts
index f61a5326174..51c974473a4 100644
--- a/src/vs/workbench/browser/parts/compositeBar.ts
+++ b/src/vs/workbench/browser/parts/compositeBar.ts
@@ -81,7 +81,7 @@ export class CompositeDragAndDrop implements ICompositeDragAndDrop {
 				if (targetCompositeId) {
 					const destinationContainer = viewContainerRegistry.get(targetCompositeId);
 					if (destinationContainer && !destinationContainer.rejectAddedViews) {
-						if (this.targetContainerLocation === ViewContainerLocation.Sidebar) {
+						if (this.targetContainerLocation === ViewContainerLocation.Sidebar || this.targetContainerLocation === ViewContainerLocation.Panel) {
 							this.viewDescriptorService.moveViewsToContainer([viewDescriptor], destinationContainer);
 							this.openComposite(targetCompositeId, true).then(composite => {
 								if (composite) {
diff --git a/src/vs/workbench/browser/parts/panel/media/panelpart.css b/src/vs/workbench/browser/parts/panel/media/panelpart.css
index a5b9004ca72..b4f6d8b08bb 100644
--- a/src/vs/workbench/browser/parts/panel/media/panelpart.css
+++ b/src/vs/workbench/browser/parts/panel/media/panelpart.css
@@ -12,19 +12,19 @@
 	z-index: initial;
 }
 
-.monaco-workbench .part.panel .title {
+.monaco-workbench .part.panel .composite.title {
 	height: 35px;
 	display: flex;
 	flex-direction: row;
 	justify-content: space-between;
 }
 
-.monaco-workbench .part.panel.bottom .title {
+.monaco-workbench .part.panel.bottom .composite.title {
 	border-top-width: 1px;
 	border-top-style: solid;
 }
 
-.monaco-workbench.noeditorarea .part.panel.bottom .title {
+.monaco-workbench.noeditorarea .part.panel.bottom .composite.title {
 	border-top-width: 0; /* no border when editor area is hiden */
 }
 
@@ -46,13 +46,13 @@
 	border-right-width: 0; /* no border when editor area is hiden */
 }
 
-.monaco-workbench .part.panel > .title > .title-actions .monaco-action-bar .action-item .action-label {
+.monaco-workbench .part.panel > .composite.tit > .title-actions .monaco-action-bar .action-item .action-label {
 	outline-offset: -2px;
 }
 
 /** Panel Switcher */
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container.composite-bar > .monaco-action-bar .action-label.codicon-more {
+.monaco-workbench .part.panel > .composite.tit > .panel-switcher-container.composite-bar > .monaco-action-bar .action-label.codicon-more {
 	display: flex;
 	align-items: center;
 	justify-content: center;
@@ -66,16 +66,16 @@
 	width: 100px;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar {
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar {
 	line-height: 27px; /* matches panel titles in settings */
 	height: 35px;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar .action-item:first-child {
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar .action-item:first-child {
 	padding-left: 12px;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar .action-item {
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar .action-item {
 	text-transform: uppercase;
 	padding-left: 10px;
 	padding-right: 10px;
@@ -85,24 +85,24 @@
 	display: flex;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar .action-item .action-label{
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar .action-item .action-label{
 	margin-right: 0;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar .action-item:last-child {
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar .action-item:last-child {
 	padding-right: 10px;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar .action-item.checked .action-label {
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar .action-item.checked .action-label {
 	border-bottom: 1px solid;
 	margin-right: 0;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar .badge {
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar .badge {
 	margin-left: 8px;
 }
 
-.monaco-workbench .part.panel > .title > .panel-switcher-container > .monaco-action-bar .badge .badge-content {
+.monaco-workbench .part.panel > .composite.title> .panel-switcher-container > .monaco-action-bar .badge .badge-content {
 	padding: 3px 5px;
 	border-radius: 11px;
 	font-size: 11px;
diff --git a/src/vs/workbench/browser/parts/views/media/paneviewlet.css b/src/vs/workbench/browser/parts/views/media/paneviewlet.css
index fc7221b9eaa..9ec114b965a 100644
--- a/src/vs/workbench/browser/parts/views/media/paneviewlet.css
+++ b/src/vs/workbench/browser/parts/views/media/paneviewlet.css
@@ -19,3 +19,7 @@
 	-webkit-margin-before: 0;
 	-webkit-margin-after: 0;
 }
+
+.monaco-pane-view .pane > .pane-header h3.title:first-child {
+	margin-left: 7px;
+}
diff --git a/src/vs/workbench/browser/parts/views/viewPaneContainer.ts b/src/vs/workbench/browser/parts/views/viewPaneContainer.ts
index 4ad5250ccf6..afc66e4979b 100644
--- a/src/vs/workbench/browser/parts/views/viewPaneContainer.ts
+++ b/src/vs/workbench/browser/parts/views/viewPaneContainer.ts
@@ -43,6 +43,7 @@ import { IOpenerService } from 'vs/platform/opener/common/opener';
 import { Button } from 'vs/base/browser/ui/button/button';
 import { Link } from 'vs/platform/opener/browser/link';
 import { LocalSelectionTransfer } from 'vs/workbench/browser/dnd';
+import { Orientation } from 'vs/base/browser/ui/sash/sash';
 
 export interface IPaneColors extends IColorMapping {
 	dropBackground?: ColorIdentifier;
@@ -210,6 +211,8 @@ export abstract class ViewPane extends Pane implements IView {
 		this.title = options.title;
 		this.showActionsAlways = !!options.showActionsAlways;
 		this.focusedViewContextKey = FocusedViewContext.bindTo(contextKeyService);
+		this._preventCollapse = this.viewDescriptorService.getViewLocation(this.id) === ViewContainerLocation.Panel;
+		this._expanded = this._preventCollapse || this._expanded;
 
 		this.menuActions = this._register(instantiationService.createInstance(ViewMenuActions, this.id, options.titleMenuId || MenuId.ViewTitle, MenuId.ViewTitleContext));
 		this._register(this.menuActions.onDidChangeTitle(() => this.updateActions()));
@@ -265,7 +268,9 @@ export abstract class ViewPane extends Pane implements IView {
 	protected renderHeader(container: HTMLElement): void {
 		this.headerContainer = container;
 
-		this.renderTwisties(container);
+		if (!this._preventCollapse) {
+			this.renderTwisties(container);
+		}
 
 		this.renderHeaderTitle(container, this.title);
 
@@ -563,6 +568,8 @@ export class ViewPaneContainer extends Component implements IViewPaneContainer {
 	}
 
 	create(parent: HTMLElement): void {
+		const options = this.options as IPaneViewOptions;
+		options.orientation = this.viewDescriptorService.getViewContainerLocation(this.viewContainer) === ViewContainerLocation.Panel ? Orientation.HORIZONTAL : Orientation.VERTICAL;
 		this.paneview = this._register(new PaneView(parent, this.options));
 		this._register(this.paneview.onDidDrop(({ from, to }) => this.movePane(from as ViewPane, to as ViewPane)));
 		this._register(addDisposableListener(parent, EventType.CONTEXT_MENU, (e: MouseEvent) => this.showContextMenu(new StandardMouseEvent(e))));
@@ -836,8 +843,7 @@ export class ViewPaneContainer extends Component implements IViewPaneContainer {
 				{
 					id: viewDescriptor.id,
 					title: viewDescriptor.name,
-					expanded: !collapsed,
-					minimumBodySize: this.viewDescriptorService.getViewContainerLocation(this.viewContainer) === ViewContainerLocation.Panel ? 0 : 120
+					expanded: !collapsed
 				});
 
 			pane.render();