diff --git a/indra/llprimitive/llmaterial.cpp b/indra/llprimitive/llmaterial.cpp
index 7de38af7d0bd51183f11c1ea21b5d35b8fbd54f0..472287b8b591f856e366da9b1c2230ab8374e819 100644
--- a/indra/llprimitive/llmaterial.cpp
+++ b/indra/llprimitive/llmaterial.cpp
@@ -332,17 +332,6 @@ void LLMaterial::setAlphaMaskCutoff(U8 cutoff)
     mAlphaMaskCutoff = cutoff;
 }
 
-LLUUID LLMaterial::getMaterialID() const
-{
-    // TODO - not null
-    return LLUUID::null;
-}
-
-void LLMaterial::setMaterialID(const LLUUID &material_id)
-{
-    // TODO - set
-}
-
 LLSD LLMaterial::asLLSD() const
 {
     LLSD material_data;
diff --git a/indra/llprimitive/llmaterial.h b/indra/llprimitive/llmaterial.h
index 0adaa6b62c1cee1ed8eec19d473eeca750b5621d..fac97a7465bba1c5981b26f4b6179f0adf3bd018 100644
--- a/indra/llprimitive/llmaterial.h
+++ b/indra/llprimitive/llmaterial.h
@@ -115,8 +115,6 @@ class LLMaterial final : public LLRefCount
     void        setDiffuseAlphaMode(U8 alpha_mode);
     U8          getAlphaMaskCutoff() const;
     void        setAlphaMaskCutoff(U8 cutoff);
-    LLUUID      getMaterialID() const;
-    void        setMaterialID(LLUUID const & material_id);
 
     bool        isNull() const;
     static const LLMaterial null;
diff --git a/indra/newview/app_settings/settings.xml b/indra/newview/app_settings/settings.xml
index fe28a314ac6609b7af13d0bcdfc74562b0148c2a..b72c1e28d236d70d123556a26d667d6e90de1a6b 100644
--- a/indra/newview/app_settings/settings.xml
+++ b/indra/newview/app_settings/settings.xml
@@ -573,7 +573,7 @@
     <key>TextureLivePreview</key>
     <map>
       <key>Comment</key>
-      <string>Preview selections in texture picker immediately</string>
+      <string>Preview selections in texture picker or material picker immediately</string>
       <key>Persist</key>
       <integer>1</integer>
       <key>Type</key>
diff --git a/indra/newview/llmaterialeditor.cpp b/indra/newview/llmaterialeditor.cpp
index e740b75a7bbf41af913deb13dc2ca96b4d32ce1c..1e4591c8c2041948c24715912064a00065bcd324 100644
--- a/indra/newview/llmaterialeditor.cpp
+++ b/indra/newview/llmaterialeditor.cpp
@@ -37,6 +37,7 @@
 #include "llfilesystem.h"
 #include "llgltfmateriallist.h"
 #include "llinventorymodel.h"
+#include "llinventoryobserver.h"
 #include "lllocalgltfmaterials.h"
 #include "llnotificationsutil.h"
 #include "lltexturectrl.h"
@@ -238,7 +239,9 @@ struct LLSelectedTEGetMatData : public LLSelectedTEFunctor
     LLUUID mTexEmissiveId;
     LLUUID mTexNormalId;
     LLUUID mObjectId;
+    LLViewerObject* mObject = nullptr;
     S32 mObjectTE;
+    LLUUID mMaterialId;
     LLPointer<LLGLTFMaterial> mMaterial;
     LLPointer<LLLocalGLTFMaterial> mLocalMaterial;
 };
@@ -260,6 +263,7 @@ bool LLSelectedTEGetMatData::apply(LLViewerObject* objectp, S32 te_index)
         return false;
     }
     LLUUID mat_id = objectp->getRenderMaterialID(te_index);
+    mMaterialId = mat_id;
     bool can_use = mIsOverride ? objectp->permModify() : objectp->permCopy();
     LLTextureEntry *tep = objectp->getTE(te_index);
     // We might want to disable this entirely if at least
@@ -291,6 +295,7 @@ bool LLSelectedTEGetMatData::apply(LLViewerObject* objectp, S32 te_index)
                 mTexEmissiveId = tex_emissive_id;
                 mTexNormalId = tex_normal_id;
                 mObjectTE = te_index;
+                mObject = objectp;
                 mObjectId = objectp->getID();
                 mFirst = false;
             }
@@ -319,6 +324,8 @@ bool LLSelectedTEGetMatData::apply(LLViewerObject* objectp, S32 te_index)
             LLGLTFMaterial *mat = tep->getGLTFMaterial();
             LLLocalGLTFMaterial *local_mat = dynamic_cast<LLLocalGLTFMaterial*>(mat);
 
+            mObject = objectp;
+            mObjectId = objectp->getID();
             if (local_mat)
             {
                 mLocalMaterial = local_mat;
@@ -1193,7 +1200,9 @@ bool LLMaterialEditor::saveIfNeeded()
     { 
         //make a new inventory item
         std::string res_desc = buildMaterialDescription();
-        createInventoryItem(buffer, mMaterialName, res_desc);
+        LLPermissions local_permissions;
+        local_permissions.init(gAgent.getID(), gAgent.getID(), LLUUID::null, LLUUID::null);
+        createInventoryItem(buffer, mMaterialName, res_desc, local_permissions);
 
         // We do not update floater with uploaded asset yet, so just close it.
         closeFloater();
@@ -1287,36 +1296,37 @@ bool LLMaterialEditor::updateInventoryItem(const std::string &buffer, const LLUU
     return true;
 }
 
-void LLMaterialEditor::createInventoryItem(const std::string &buffer, const std::string &name, const std::string &desc)
+// Callback intended for when a material is saved from an object and needs to
+// be modified to reflect the new asset/name.
+class LLObjectsMaterialItemCallback : public LLInventoryCallback
 {
-    // gen a new uuid for this asset
-    LLTransactionID tid;
-    tid.generate();     // timestamp-based randomization + uniquification
-    U32 next_owner_perm = LLFloaterPerms::getNextOwnerPerms("Materials");
-    LLUUID parent = gInventory.findUserDefinedCategoryUUIDForType(LLFolderType::FT_MATERIAL);
-    const U8 subtype = NO_INV_SUBTYPE;  // TODO maybe use AT_SETTINGS and LLSettingsType::ST_MATERIAL ?
+public:
+    LLObjectsMaterialItemCallback(const LLPermissions& permissions, const std::string& asset_data, const std::string& new_name)
+        : mPermissions(permissions),
+        mAssetData(asset_data),
+        mNewName(new_name)
+    {
+    }
 
-    create_inventory_item(gAgent.getID(), gAgent.getSessionID(), parent, tid, name, desc,
-        LLAssetType::AT_MATERIAL, LLInventoryType::IT_MATERIAL, subtype, next_owner_perm,
-        new LLBoostFuncInventoryCallback([output = buffer](LLUUID const& inv_item_id)
+    void fire(const LLUUID& inv_item_id) override
     {
         LLViewerInventoryItem* item = gInventory.getItem(inv_item_id);
-        if (item)
+        if (!item)
         {
-            // create_inventory_item doesn't allow presetting some permissions, fix it now
-            LLPermissions perm = item->getPermissions();
-            if (perm.getMaskEveryone() != LLFloaterPerms::getEveryonePerms("Materials")
-                || perm.getMaskGroup() != LLFloaterPerms::getGroupPerms("Materials"))
-            {
-                perm.setMaskEveryone(LLFloaterPerms::getEveryonePerms("Materials"));
-                perm.setMaskGroup(LLFloaterPerms::getGroupPerms("Materials"));
+            return;
+        }
 
-                item->setPermissions(perm);
+        // create_inventory_item/copy_inventory_item don't allow presetting some permissions, fix it now
+        item->setPermissions(mPermissions);
+        item->updateServer(FALSE);
+        gInventory.updateItem(item);
+        gInventory.notifyObservers();
 
-                item->updateServer(FALSE);
-                gInventory.updateItem(item);
-                gInventory.notifyObservers();
-            }
+        if (item->getName() != mNewName)
+        {
+            LLSD updates;
+            updates["name"] = mNewName;
+            update_inventory_item(inv_item_id, updates, NULL);
         }
 
         // from reference in LLSettingsVOBase::createInventoryItem()/updateInventoryItem()
@@ -1324,7 +1334,7 @@ void LLMaterialEditor::createInventoryItem(const std::string &buffer, const std:
             std::make_shared<LLBufferedAssetUploadInfo>(
                 inv_item_id,
                 LLAssetType::AT_MATERIAL,
-                output,
+                mAssetData,
                 [](LLUUID item_id, LLUUID new_asset_id, LLUUID new_item_id, LLSD response)
                 {
                     // done callback
@@ -1343,8 +1353,25 @@ void LLMaterialEditor::createInventoryItem(const std::string &buffer, const std:
             }
             LLViewerAssetUpload::EnqueueInventoryUpload(agent_url, uploadInfo);
         }
-    })
-    );
+    }
+private:
+    LLPermissions mPermissions;
+    std::string mAssetData;
+    std::string mNewName;
+};
+
+void LLMaterialEditor::createInventoryItem(const std::string &buffer, const std::string &name, const std::string &desc, const LLPermissions& permissions)
+{
+    // gen a new uuid for this asset
+    LLTransactionID tid;
+    tid.generate();     // timestamp-based randomization + uniquification
+    LLUUID parent = gInventory.findUserDefinedCategoryUUIDForType(LLFolderType::FT_MATERIAL);
+    const U8 subtype = NO_INV_SUBTYPE;  // TODO maybe use AT_SETTINGS and LLSettingsType::ST_MATERIAL ?
+
+    LLPointer<LLObjectsMaterialItemCallback> cb = new LLObjectsMaterialItemCallback(permissions, buffer, name);
+    create_inventory_item(gAgent.getID(), gAgent.getSessionID(), parent, tid, name, desc,
+        LLAssetType::AT_MATERIAL, LLInventoryType::IT_MATERIAL, subtype, permissions.getMaskNextOwner(),
+        cb);
 }
 
 void LLMaterialEditor::finishInventoryUpload(LLUUID itemId, LLUUID newAssetId, LLUUID newItemId)
@@ -1793,55 +1820,146 @@ void LLMaterialEditor::loadLive()
     }
 }
 
-void LLMaterialEditor::saveObjectsMaterialAs()
+// *NOTE: permissions_out includes user preferences for new item creation (LLFloaterPerms)
+bool can_use_objects_material(LLSelectedTEGetMatData& func, const std::vector<PermissionBit>& ops, LLPermissions& permissions_out, LLViewerInventoryItem*& item_out)
 {
-    LLSelectedTEGetMatData func(false);
+    if (!LLMaterialEditor::capabilitiesAvailable())
+    {
+        return false;
+    }
+
     LLSelectMgr::getInstance()->getSelection()->applyToTEs(&func, true /*first applicable*/);
-    saveMaterialAs(func.mMaterial, func.mLocalMaterial);
-}
-void LLMaterialEditor::savePickedMaterialAs()
-{
-    LLPickInfo pick = LLToolPie::getInstance()->getPick();
-    if (pick.mPickType != LLPickInfo::PICK_OBJECT || !pick.getObject())
+    LLViewerObject* selected_object = func.mObject;
+    if (!selected_object)
     {
-        return;
+        // LLSelectedTEGetMatData can fail if there are no selected faces
+        // with materials, but we expect at least some object is selected.
+        llassert(LLSelectMgr::getInstance()->getSelection()->getFirstObject());
+        return false;
+    }
+    if (selected_object->isInventoryPending())
+    {
+        return false;
+    }
+    for (PermissionBit op : ops)
+    {
+        if (op == PERM_MODIFY && selected_object->isPermanentEnforced())
+        {
+            return false;
+        }
     }
 
-    LLPointer<LLGLTFMaterial> render_material;
-    LLPointer<LLLocalGLTFMaterial> local_material;
+    item_out = selected_object->getInventoryItemByAsset(func.mMaterialId);
 
-    LLViewerObject *objectp = pick.getObject();
-    LLUUID mat_id = objectp->getRenderMaterialID(pick.mObjectFace);
-    if (mat_id.notNull() && objectp->permCopy())
+    LLPermissions item_permissions;
+    if (item_out)
+    {
+        item_permissions.set(item_out->getPermissions());
+        for (PermissionBit op : ops)
+        {
+            if (!gAgent.allowOperation(op, item_permissions, GP_OBJECT_MANIPULATE))
+            {
+                return false;
+            }
+        }
+        // Update flags for new owner
+        if (!item_permissions.setOwnerAndGroup(LLUUID::null, gAgent.getID(), LLUUID::null, true))
+        {
+            llassert(false);
+            return false;
+        }
+    }
+    else
     {
-        // Try a face user picked first
-        // (likely the only method we need, but in such case
-        // enable_object_save_gltf_material will need to check this)
-        LLTextureEntry *tep = objectp->getTE(pick.mObjectFace);
-        LLGLTFMaterial *mat = tep->getGLTFMaterial();
-        LLLocalGLTFMaterial *local_mat = dynamic_cast<LLLocalGLTFMaterial*>(mat);
+        item_permissions.init(gAgent.getID(), gAgent.getID(), LLUUID::null, LLUUID::null);
+    }
 
-        if (local_mat)
+    // Use root object for permissions checking
+    LLViewerObject* root_object = selected_object->getRootEdit();
+    LLPermissions* object_permissions_p = LLSelectMgr::getInstance()->findObjectPermissions(root_object);
+    LLPermissions object_permissions;
+    if (object_permissions_p)
+    {
+        object_permissions.set(*object_permissions_p);
+        for (PermissionBit op : ops)
+        {
+            if (!gAgent.allowOperation(op, object_permissions, GP_OBJECT_MANIPULATE))
+            {
+                return false;
+            }
+        }
+        // Update flags for new owner
+        if (!object_permissions.setOwnerAndGroup(LLUUID::null, gAgent.getID(), LLUUID::null, true))
         {
-            local_material = local_mat;
+            llassert(false);
+            return false;
         }
-        render_material = tep->getGLTFRenderMaterial();
     }
     else
     {
-        // Find an applicable material.
-        // Do this before showing message, because
-        // message is going to drop selection.
-        LLSelectedTEGetMatData func(false);
-        LLSelectMgr::getInstance()->getSelection()->applyToTEs(&func, true /*first applicable*/);
-        local_material = func.mLocalMaterial;
-        render_material = func.mMaterial;
+        object_permissions.init(gAgent.getID(), gAgent.getID(), LLUUID::null, LLUUID::null);
+    }
+
+    LLPermissions floater_perm;
+    floater_perm.init(gAgent.getID(), gAgent.getID(), LLUUID::null, LLUUID::null);
+    floater_perm.setMaskEveryone(LLFloaterPerms::getEveryonePerms("Materials"));
+    floater_perm.setMaskGroup(LLFloaterPerms::getGroupPerms("Materials"));
+    floater_perm.setMaskNext(LLFloaterPerms::getNextOwnerPerms("Materials"));
+
+    // *NOTE: A close inspection of LLPermissions::accumulate shows that
+    // conflicting UUIDs will be unset. This is acceptable behavior for now.
+    // The server will populate creator info based on the item creation method
+    // used.
+    // *NOTE: As far as I'm aware, there is currently no good way to preserve
+    // creation history when there's no material item present. In that case,
+    // the agent who saved the material will be considered the creator.
+    // -Cosmic,2023-08-07
+    if (item_out)
+    {
+        permissions_out.set(item_permissions);
+    }
+    else
+    {
+        permissions_out.set(object_permissions);
     }
+    permissions_out.accumulate(floater_perm);
 
-    saveMaterialAs(render_material, local_material);
+    return true;
+}
+
+bool LLMaterialEditor::canModifyObjectsMaterial()
+{
+    LLSelectedTEGetMatData func(false);
+    LLPermissions permissions;
+    LLViewerInventoryItem* item_out;
+    return can_use_objects_material(func, std::vector({PERM_MODIFY}), permissions, item_out);
+}
+
+bool LLMaterialEditor::canSaveObjectsMaterial()
+{
+    LLSelectedTEGetMatData func(false);
+    LLPermissions permissions;
+    LLViewerInventoryItem* item_out;
+    return can_use_objects_material(func, std::vector({PERM_COPY, PERM_MODIFY}), permissions, item_out);
 }
 
-void LLMaterialEditor::saveMaterialAs(const LLGLTFMaterial* render_material, const LLLocalGLTFMaterial *local_material)
+void LLMaterialEditor::saveObjectsMaterialAs()
+{
+    LLSelectedTEGetMatData func(false);
+    LLPermissions permissions;
+    LLViewerInventoryItem* item = nullptr;
+    bool allowed = can_use_objects_material(func, std::vector({PERM_COPY, PERM_MODIFY}), permissions, item);
+    if (!allowed)
+    {
+        LL_WARNS("MaterialEditor") << "Failed to save GLTF material from object" << LL_ENDL;
+        return;
+    }
+    const LLUUID item_id = item ? item->getUUID() : LLUUID::null;
+    saveObjectsMaterialAs(func.mMaterial, func.mLocalMaterial, permissions, func.mObjectId, item_id);
+}
+
+
+void LLMaterialEditor::saveObjectsMaterialAs(const LLGLTFMaterial* render_material, const LLLocalGLTFMaterial *local_material, const LLPermissions& permissions, const LLUUID& object_id, const LLUUID& item_id)
 {
     if (local_material)
     {
@@ -1917,26 +2035,98 @@ void LLMaterialEditor::saveMaterialAs(const LLGLTFMaterial* render_material, con
     LLSD args;
     args["DESC"] = LLTrans::getString("New Material");
 
-    LLNotificationsUtil::add("SaveMaterialAs", args, payload, boost::bind(&LLMaterialEditor::onSaveObjectsMaterialAsMsgCallback, _1, _2));
+    if (local_material)
+    {
+        LLPermissions local_permissions;
+        local_permissions.init(gAgent.getID(), gAgent.getID(), LLUUID::null, LLUUID::null);
+        LLNotificationsUtil::add("SaveMaterialAs", args, payload, boost::bind(&LLMaterialEditor::onSaveObjectsMaterialAsMsgCallback, _1, _2, local_permissions));
+    }
+    else
+    {
+        if (item_id.notNull())
+        {
+            // Copy existing item from object inventory, and create new composite asset on top of it
+            LLNotificationsUtil::add("SaveMaterialAs", args, payload, boost::bind(&LLMaterialEditor::onCopyObjectsMaterialAsMsgCallback, _1, _2, permissions, object_id, item_id));
+        }
+        else
+        {
+            LLNotificationsUtil::add("SaveMaterialAs", args, payload, boost::bind(&LLMaterialEditor::onSaveObjectsMaterialAsMsgCallback, _1, _2, permissions));
+        }
+    }
 }
 
-void LLMaterialEditor::onSaveObjectsMaterialAsMsgCallback(const LLSD& notification, const LLSD& response)
+// static
+void LLMaterialEditor::onCopyObjectsMaterialAsMsgCallback(const LLSD& notification, const LLSD& response, const LLPermissions& permissions, const LLUUID& object_id, const LLUUID& item_id)
 {
     S32 option = LLNotificationsUtil::getSelectedOption(notification, response);
-    if (0 == option)
+    if (0 != option)
     {
-        LLSD asset;
-        asset["version"] = LLGLTFMaterial::ASSET_VERSION;
-        asset["type"] = LLGLTFMaterial::ASSET_TYPE;
-        // This is the string serialized from LLGLTFMaterial::asJSON
-        asset["data"] = notification["payload"]["data"];
+        return;
+    }
 
-        std::ostringstream str;
-        LLSDSerialize::serialize(asset, str, LLSDSerialize::LLSD_BINARY);
+    LLSD asset;
+    asset["version"] = LLGLTFMaterial::ASSET_VERSION;
+    asset["type"] = LLGLTFMaterial::ASSET_TYPE;
+    // This is the string serialized from LLGLTFMaterial::asJSON
+    asset["data"] = notification["payload"]["data"];
 
-        std::string new_name = response["message"].asString();
-        createInventoryItem(str.str(), new_name, std::string());
+    std::ostringstream str;
+    LLSDSerialize::serialize(asset, str, LLSDSerialize::LLSD_BINARY);
+
+    LLViewerObject* object = gObjectList.findObject(object_id);
+    if (!object)
+    {
+        return;
+    }
+    const LLInventoryItem* item = object->getInventoryItem(item_id);
+    if (!item)
+    {
+        return;
     }
+
+    std::string new_name = response["message"].asString();
+    LLInventoryObject::correctInventoryName(new_name);
+    if (new_name.empty())
+    {
+        return;
+    }
+
+    const LLUUID destination_id = gInventory.findCategoryUUIDForType(LLFolderType::FT_MATERIAL);
+
+    LLPointer<LLInventoryCallback> cb = new LLObjectsMaterialItemCallback(permissions, str.str(), new_name);
+    // NOTE: This should be an item copy. Saving a material to an inventory should be disabled when the associated material is no-copy.
+    move_or_copy_inventory_from_object(destination_id,
+                                       object_id,
+                                       item_id,
+                                       cb);
+}
+
+// static
+void LLMaterialEditor::onSaveObjectsMaterialAsMsgCallback(const LLSD& notification, const LLSD& response, const LLPermissions& permissions)
+{
+    S32 option = LLNotificationsUtil::getSelectedOption(notification, response);
+    if (0 != option)
+    {
+        return;
+    }
+
+    LLSD asset;
+    asset["version"] = LLGLTFMaterial::ASSET_VERSION;
+    asset["type"] = LLGLTFMaterial::ASSET_TYPE;
+    // This is the string serialized from LLGLTFMaterial::asJSON
+    asset["data"] = notification["payload"]["data"];
+
+    std::ostringstream str;
+    LLSDSerialize::serialize(asset, str, LLSDSerialize::LLSD_BINARY);
+
+    std::string new_name = response["message"].asString();
+    LLInventoryObject::correctInventoryName(new_name);
+    if (new_name.empty())
+    {
+        return;
+    }
+
+    createInventoryItem(str.str(), new_name, std::string(), permissions);
 }
 
 const void upload_bulk(const std::vector<std::string>& filenames, LLFilePicker::ELoadFilter type);
@@ -2709,7 +2899,10 @@ bool LLMaterialEditor::setFromSelection()
     if (func.mMaterial.notNull())
     {
         setFromGLTFMaterial(func.mMaterial);
-        setEnableEditing(true);
+        LLViewerObject* selected_object = func.mObject;
+        const LLViewerInventoryItem* item = selected_object->getInventoryItemByAsset(func.mMaterialId);
+        const bool allow_modify = !item || canModify(selected_object, item);
+        setEnableEditing(allow_modify);
     }
     else
     {
diff --git a/indra/newview/llmaterialeditor.h b/indra/newview/llmaterialeditor.h
index 6f674a41708a22f8ae7b03326cc0603fcf6c3f4b..6b2f49e2fc6697cdce086e977049ce5671a0eeae 100644
--- a/indra/newview/llmaterialeditor.h
+++ b/indra/newview/llmaterialeditor.h
@@ -38,6 +38,7 @@ class LLGLTFMaterial;
 class LLLocalGLTFMaterial;
 class LLTextureCtrl;
 class LLTextBox;
+class LLViewerInventoryItem;
 
 namespace tinygltf
 {
@@ -112,9 +113,11 @@ class LLMaterialEditor : public LLPreview, public LLVOInventoryListener
     static void updateLive(const LLUUID &object_id, S32 te);
     static void loadLive();
 
+    static bool canModifyObjectsMaterial();
+    static bool canSaveObjectsMaterial();
     static void saveObjectsMaterialAs();
-    static void savePickedMaterialAs();
-    static void onSaveObjectsMaterialAsMsgCallback(const LLSD& notification, const LLSD& response);
+    static void onCopyObjectsMaterialAsMsgCallback(const LLSD& notification, const LLSD& response, const LLPermissions& permissions, const LLUUID& object_id, const LLUUID& item_id);
+    static void onSaveObjectsMaterialAsMsgCallback(const LLSD& notification, const LLSD& response, const LLPermissions& permissions);
 
     static void onLoadComplete(const LLUUID& asset_uuid, LLAssetType::EType type, void* user_data, S32 status, LLExtStat ext_status);
 
@@ -229,10 +232,10 @@ class LLMaterialEditor : public LLPreview, public LLVOInventoryListener
     static bool capabilitiesAvailable();
 
 private:
-    static void saveMaterialAs(const LLGLTFMaterial *render_material, const LLLocalGLTFMaterial *local_material);
+    static void saveObjectsMaterialAs(const LLGLTFMaterial *render_material, const LLLocalGLTFMaterial *local_material, const LLPermissions& permissions, const LLUUID& object_id /* = LLUUID::null */, const LLUUID& item /* = LLUUID::null */);
 
     static bool updateInventoryItem(const std::string &buffer, const LLUUID &item_id, const LLUUID &task_id);
-    static void createInventoryItem(const std::string &buffer, const std::string &name, const std::string &desc);
+    static void createInventoryItem(const std::string &buffer, const std::string &name, const std::string &desc, const LLPermissions& permissions);
 
     void setFromGLTFMaterial(LLGLTFMaterial* mat);
     bool setFromSelection();
diff --git a/indra/newview/llpanelface.cpp b/indra/newview/llpanelface.cpp
index 60e097b6e0115a44c71f1ab2b9e3a5a6d447daa9..a721000b4ef0c8d2db2886aa8532756267089164 100644
--- a/indra/newview/llpanelface.cpp
+++ b/indra/newview/llpanelface.cpp
@@ -51,6 +51,7 @@
 #include "llinventorymodelbackgroundfetch.h"
 #include "llfloatermediasettings.h"
 #include "llfloaterreg.h"
+#include "llfloatertools.h"
 #include "lllineeditor.h"
 #include "llmaterialmgr.h"
 #include "llmaterialeditor.h"
@@ -77,6 +78,7 @@
 #include "llviewerregion.h"
 #include "llviewerstats.h"
 #include "llvovolume.h"
+#include "llvoinventorylistener.h"
 #include "lluictrlfactory.h"
 #include "llpluginclassmedia.h"
 #include "llviewertexturelist.h"// Update sel manager as to which channel we're editing so it can reflect the correct overlay UI
@@ -1064,7 +1066,7 @@ void LLPanelFace::updateUI(bool force_set_values /*false*/)
 		getChildView("checkbox_sync_settings")->setEnabled(editable);
 		childSetValue("checkbox_sync_settings", gSavedSettings.getBOOL("SyncMaterialSettings"));
 
-		updateVisibility();
+		updateVisibility(objectp);
 
 		// Color swatch
 		{
@@ -1780,13 +1782,54 @@ void LLPanelFace::updateUI(bool force_set_values /*false*/)
 	}
 }
 
+// One-off listener that updates the build floater UI when the prim inventory updates
+class PBRPickerItemListener : public LLVOInventoryListener
+{
+protected:
+    LLViewerObject* mObjectp;
+    bool mChangePending = true;
+public:
+
+    PBRPickerItemListener(LLViewerObject* object)
+    : mObjectp(object)
+    {
+        registerVOInventoryListener(mObjectp, nullptr);
+    }
+
+    const bool isListeningFor(const LLViewerObject* objectp) const
+    {
+        return mChangePending && (objectp == mObjectp);
+    }
+
+    void inventoryChanged(LLViewerObject* object,
+        LLInventoryObject::object_list_t* inventory,
+        S32 serial_num,
+        void* user_data) override
+    {
+        if (gFloaterTools)
+        {
+            gFloaterTools->dirty();
+        }
+        removeVOInventoryListener();
+        mChangePending = false;
+    }
+
+    ~PBRPickerItemListener()
+    {
+        removeVOInventoryListener();
+        mChangePending = false;
+    }
+};
+
 void LLPanelFace::updateUIGLTF(LLViewerObject* objectp, bool& has_pbr_material, bool& has_faces_without_pbr, bool force_set_values)
 {
     has_pbr_material = false;
 
-    const bool editable = objectp->permModify() && !objectp->isPermanentEnforced();
     bool has_pbr_capabilities = LLMaterialEditor::capabilitiesAvailable();
     bool identical_pbr = true;
+    const bool settable = has_pbr_capabilities && objectp->permModify() && !objectp->isPermanentEnforced();
+    const bool editable = LLMaterialEditor::canModifyObjectsMaterial();
+    const bool saveable = LLMaterialEditor::canSaveObjectsMaterial();
 
     // pbr material
     LLTextureCtrl* pbr_ctrl = findChild<LLTextureCtrl>("pbr_control");
@@ -1796,13 +1839,25 @@ void LLPanelFace::updateUIGLTF(LLViewerObject* objectp, bool& has_pbr_material,
         LLSelectedTE::getPbrMaterialId(pbr_id, identical_pbr, has_pbr_material, has_faces_without_pbr);
 
         pbr_ctrl->setTentative(identical_pbr ? FALSE : TRUE);
-        pbr_ctrl->setEnabled(editable && has_pbr_capabilities);
+        pbr_ctrl->setEnabled(settable);
         pbr_ctrl->setImageAssetID(pbr_id);
     }
 
-    getChildView("pbr_from_inventory")->setEnabled(editable && has_pbr_capabilities);
-    getChildView("edit_selected_pbr")->setEnabled(editable && has_pbr_material && !has_faces_without_pbr && has_pbr_capabilities);
-    getChildView("save_selected_pbr")->setEnabled(objectp->permCopy() && has_pbr_material && identical_pbr && has_pbr_capabilities);
+    getChildView("pbr_from_inventory")->setEnabled(settable);
+    getChildView("edit_selected_pbr")->setEnabled(editable && !has_faces_without_pbr);
+    getChildView("save_selected_pbr")->setEnabled(saveable && identical_pbr);
+    if (objectp->isInventoryPending())
+    {
+        // Reuse the same listener when possible
+        if (!mInventoryListener || !mInventoryListener->isListeningFor(objectp))
+        {
+            mInventoryListener = std::make_unique<PBRPickerItemListener>(objectp);
+        }
+    }
+    else
+    {
+        mInventoryListener = nullptr;
+    }
 
     const bool show_pbr = mComboMatMedia->getCurrentIndex() == MATMEDIA_PBR && mComboMatMedia->getEnabled();
     if (show_pbr)
@@ -1827,9 +1882,10 @@ void LLPanelFace::updateUIGLTF(LLViewerObject* objectp, bool& has_pbr_material,
     }
 }
 
-void LLPanelFace::updateVisibilityGLTF()
+void LLPanelFace::updateVisibilityGLTF(LLViewerObject* objectp /*= nullptr */)
 {
     const bool show_pbr = mComboMatMedia->getCurrentIndex() == MATMEDIA_PBR && mComboMatMedia->getEnabled();
+    const bool inventory_pending = objectp && objectp->isInventoryPending();
 
     LLRadioGroup* radio_pbr_type = findChild<LLRadioGroup>("radio_pbr_type");
     radio_pbr_type->setVisible(show_pbr);
@@ -1840,8 +1896,9 @@ void LLPanelFace::updateVisibilityGLTF()
     getChildView("pbr_control")->setVisible(show_pbr_render_material_id);
 
     getChildView("pbr_from_inventory")->setVisible(show_pbr_render_material_id);
-    getChildView("edit_selected_pbr")->setVisible(show_pbr_render_material_id);
-    getChildView("save_selected_pbr")->setVisible(show_pbr_render_material_id);
+    getChildView("edit_selected_pbr")->setVisible(show_pbr_render_material_id && !inventory_pending);
+    getChildView("save_selected_pbr")->setVisible(show_pbr_render_material_id && !inventory_pending);
+    getChildView("material_permissions_loading_label")->setVisible(show_pbr_render_material_id && inventory_pending);
 
     getChildView("gltfTextureScaleU")->setVisible(show_pbr);
     getChildView("gltfTextureScaleV")->setVisible(show_pbr);
@@ -2682,7 +2739,7 @@ void LLPanelFace::onCommitMaterialsMedia(LLUICtrl* ctrl, void* userdata)
 	self->refreshMedia();
 }
 
-void LLPanelFace::updateVisibility()
+void LLPanelFace::updateVisibility(LLViewerObject* objectp /* = nullptr */)
 {
     LLRadioGroup* radio_mat_type = findChild<LLRadioGroup>("radio_material_type");
     LLRadioGroup* radio_pbr_type = findChild<LLRadioGroup>("radio_pbr_type");
@@ -2773,7 +2830,7 @@ void LLPanelFace::updateVisibility()
     getChild<LLSpinCtrl>("rptctrl")->setVisible(show_material || show_media);
 
     // PBR controls
-    updateVisibilityGLTF();
+    updateVisibilityGLTF(objectp);
 }
 
 // static
@@ -3001,11 +3058,7 @@ void LLPanelFace::onSelectPbr(const LLSD& data)
         {
             id = pbr_ctrl->getImageAssetID();
         }
-        if (LLSelectMgr::getInstance()->selectionSetGLTFMaterial(id))
-        {
-            LLSelectedTEMaterial::setMaterialID(this, id);
-        }
-        else
+        if (!LLSelectMgr::getInstance()->selectionSetGLTFMaterial(id))
         {
             refresh();
         }
@@ -4901,23 +4954,24 @@ void LLPanelFace::onPbrSelectionChanged(LLInventoryItem* itemp)
         LLSaleInfo sale_info;
         LLSelectMgr::instance().selectGetSaleInfo(sale_info);
 
-        bool can_copy = itemp->getPermissions().allowCopyBy(gAgentID); // do we have perm to copy this texture?
-        bool can_transfer = itemp->getPermissions().allowOperationBy(PERM_TRANSFER, gAgentID); // do we have perm to transfer this texture?
-        bool is_object_owner = gAgentID == obj_owner_id; // does object for which we are going to apply texture belong to the agent?
-        bool not_for_sale = !sale_info.isForSale(); // is object for which we are going to apply texture not for sale?
+        bool can_copy = itemp->getPermissions().allowCopyBy(gAgentID); // do we have perm to copy this material?
+        bool can_transfer = itemp->getPermissions().allowOperationBy(PERM_TRANSFER, gAgentID); // do we have perm to transfer this material?
+        bool can_modify = itemp->getPermissions().allowOperationBy(PERM_MODIFY, gAgentID); // do we have perm to transfer this material?
+        bool is_object_owner = gAgentID == obj_owner_id; // does object for which we are going to apply material belong to the agent?
+        bool not_for_sale = !sale_info.isForSale(); // is object for which we are going to apply material not for sale?
 
-        if (can_copy && can_transfer)
+        if (can_copy && can_transfer && can_modify)
         {
             pbr_ctrl->setCanApply(true, true);
             return;
         }
 
-        // if texture has (no-transfer) attribute it can be applied only for object which we own and is not for sale
+        // if material has (no-transfer) attribute it can be applied only for object which we own and is not for sale
         pbr_ctrl->setCanApply(false, can_transfer ? true : is_object_owner && not_for_sale);
 
         if (gSavedSettings.getBOOL("TextureLivePreview"))
         {
-            LLNotificationsUtil::add("LivePreviewUnavailable");
+            LLNotificationsUtil::add("LivePreviewUnavailablePBR");
         }
     }
 }
diff --git a/indra/newview/llpanelface.h b/indra/newview/llpanelface.h
index 4de7a6dc9c3f400cd13e4f05eef1cf693721c267..fdb393690322394e24f930099aa2257c43e633f6 100644
--- a/indra/newview/llpanelface.h
+++ b/indra/newview/llpanelface.h
@@ -35,6 +35,8 @@
 #include "lltextureentry.h"
 #include "llselectmgr.h"
 
+#include <memory>
+
 class LLButton;
 class LLCheckBoxCtrl;
 class LLColorSwatchCtrl;
@@ -52,6 +54,8 @@ class LLMediaCtrl;
 class LLMenuButton;
 class LLRadioGroup;
 
+class PBRPickerItemListener;
+
 // Represents an edit for use in replicating the op across one or more materials in the selection set.
 //
 // The apply function optionally performs the edit which it implements
@@ -316,7 +320,7 @@ class LLPanelFace : public LLPanel
 	//
 	// Do NOT call updateUI from within this function.
 	//
-	void updateVisibility();
+	void updateVisibility(LLViewerObject* objectp = nullptr);
 
 	// Hey look everyone, a type-safe alternative to copy and paste! :)
 	//
@@ -477,7 +481,7 @@ class LLPanelFace : public LLPanel
     void onPbrSelectionChanged(LLInventoryItem* itemp);
 
     void updateUIGLTF(LLViewerObject* objectp, bool& has_pbr_material, bool& has_faces_without_pbr, bool force_set_values);
-    void updateVisibilityGLTF();
+    void updateVisibilityGLTF(LLViewerObject* objectp = nullptr);
 
     void updateSelectedGLTFMaterials(std::function<void(LLGLTFMaterial*)> func);
     void updateGLTFTextureTransform(float value, U32 pbr_type, std::function<void(LLGLTFMaterial::TextureTransform*)> edit);
@@ -527,6 +531,8 @@ class LLPanelFace : public LLPanel
 
     static Selection sMaterialOverrideSelection;
 
+    std::unique_ptr<PBRPickerItemListener> mInventoryListener;
+
 public:
 	#if defined(DEF_GET_MAT_STATE)
 		#undef DEF_GET_MAT_STATE
@@ -607,7 +613,6 @@ class LLPanelFace : public LLPanel
 		DEF_EDIT_MAT_STATE(LLUUID,const LLUUID&,setNormalID);
 		DEF_EDIT_MAT_STATE(LLUUID,const LLUUID&,setSpecularID);
 		DEF_EDIT_MAT_STATE(LLColor4U,	const LLColor4U&,setSpecularLightColor);
-		DEF_EDIT_MAT_STATE(LLUUID, const LLUUID&, setMaterialID);
 	};
 
 	class LLSelectedTE
diff --git a/indra/newview/llpreview.cpp b/indra/newview/llpreview.cpp
index 0017315af77d9acc1de339a2034ff9e4c563a6d5..bcb5a638961bb1e448d22d4cf1489d6ea8aacb94 100644
--- a/indra/newview/llpreview.cpp
+++ b/indra/newview/llpreview.cpp
@@ -287,14 +287,22 @@ void LLPreview::refreshFromItem()
 // static
 BOOL LLPreview::canModify(const LLUUID taskUUID, const LLInventoryItem* item)
 {
+    const LLViewerObject* object = nullptr;
 	if (taskUUID.notNull())
 	{
-		LLViewerObject* object = gObjectList.findObject(taskUUID);
-		if(object && !object->permModify())
-		{
-			// No permission to edit in-world inventory
-			return FALSE;
-		}
+		object = gObjectList.findObject(taskUUID);
+	}
+
+	return canModify(object, item);
+}
+
+// static
+BOOL LLPreview::canModify(const LLViewerObject* object, const LLInventoryItem* item)
+{
+	if (object && !object->permModify())
+	{
+        // No permission to edit in-world inventory
+        return FALSE;
 	}
 
 	return item && gAgent.allowOperation(PERM_MODIFY, item->getPermissions(), GP_OBJECT_MANIPULATE);
diff --git a/indra/newview/llpreview.h b/indra/newview/llpreview.h
index 0831e24b64364049034da580c2ea2a6e0dac1c35..c8317b86777219ee89bcdc499d1b16481567bac2 100644
--- a/indra/newview/llpreview.h
+++ b/indra/newview/llpreview.h
@@ -36,6 +36,7 @@
 #include <map>
 
 class LLInventoryItem;
+class LLViewerObject;
 class LLLineEditor;
 class LLRadioGroup;
 class LLPreview;
@@ -112,6 +113,7 @@ class LLPreview : public LLFloater, LLInventoryObserver
 	// We can't modify Item or description in preview if either in-world Object
 	// or Item  itself is unmodifiable
 	static BOOL canModify(const LLUUID taskUUID, const LLInventoryItem* item);
+	static BOOL canModify(const LLViewerObject* object, const LLInventoryItem* item);
 
 // [SL:KB] - Patch: Build-ScriptRecover | Checked: 2012-02-06 (Catznip-3.2)
 	// Backup functionality
diff --git a/indra/newview/llselectmgr.cpp b/indra/newview/llselectmgr.cpp
index ebfe841de27a6d5fd4ee247d766c5a0f643189da..573a1c331530b5263a0a52c3fd01b864ef14c5ee 100644
--- a/indra/newview/llselectmgr.cpp
+++ b/indra/newview/llselectmgr.cpp
@@ -1773,15 +1773,17 @@ void LLObjectSelection::applyNoCopyTextureToTEs(LLViewerInventoryItem* item)
 	}
 }
 
-void LLObjectSelection::applyNoCopyPbrMaterialToTEs(LLViewerInventoryItem* item)
+bool LLObjectSelection::applyRestrictedPbrMaterialToTEs(LLViewerInventoryItem* item)
 {
     if (!item)
     {
-        return;
+        return false;
     }
 
     LLUUID asset_id = item->getAssetUUID();
 
+    bool material_copied_all_faces = true;
+
     for (iterator iter = begin(); iter != end(); ++iter)
     {
         LLSelectNode* node = *iter;
@@ -1797,12 +1799,17 @@ void LLObjectSelection::applyNoCopyPbrMaterialToTEs(LLViewerInventoryItem* item)
         {
             if (node->isTESelected(te))
             {
-                //(no-copy) materials must be moved to the object's inventory only once
+                //(no-copy), (no-modify), and (no-transfer) materials must be moved to the object's inventory only once
                 // without making any copies
                 if (!material_copied && asset_id.notNull())
                 {
-                    LLToolDragAndDrop::handleDropMaterialProtections(object, item, LLToolDragAndDrop::SOURCE_AGENT, LLUUID::null);
-                    material_copied = true;
+                    material_copied = (bool)LLToolDragAndDrop::handleDropMaterialProtections(object, item, LLToolDragAndDrop::SOURCE_AGENT, LLUUID::null);
+                }
+                if (!material_copied)
+                {
+                    // Applying the material is not possible for this object given the current inventory
+					material_copied_all_faces = false;
+                    break;
                 }
 
                 // apply texture for the selected faces
@@ -1814,6 +1821,8 @@ void LLObjectSelection::applyNoCopyPbrMaterialToTEs(LLViewerInventoryItem* item)
     }
 
     LLGLTFMaterialList::flushUpdates();
+
+    return material_copied_all_faces;
 }
 
 
@@ -1927,6 +1936,8 @@ bool LLSelectMgr::selectionSetGLTFMaterial(const LLUUID& mat_id)
     {
         LLViewerInventoryItem* mItem;
         LLUUID mMatId;
+        bool material_copied_any_face = false;
+        bool material_copied_all_faces = true;
         f(LLViewerInventoryItem* item, const LLUUID& id) : mItem(item), mMatId(id) {}
         bool apply(LLViewerObject* objectp, S32 te)
         {
@@ -1953,14 +1964,19 @@ bool LLSelectMgr::selectionSetGLTFMaterial(const LLUUID& mat_id)
         }
     };
 
-    if (item && !item->getPermissions().allowOperationBy(PERM_COPY, gAgent.getID()))
+    bool success = true;
+    if (item &&
+            (!item->getPermissions().allowOperationBy(PERM_COPY, gAgent.getID()) ||
+             !item->getPermissions().allowOperationBy(PERM_TRANSFER, gAgent.getID()) ||
+             !item->getPermissions().allowOperationBy(PERM_MODIFY, gAgent.getID())
+            ))
     {
-        getSelection()->applyNoCopyPbrMaterialToTEs(item);
+        success = success && getSelection()->applyRestrictedPbrMaterialToTEs(item);
     }
     else
     {
         f setfunc(item, mat_id);
-        getSelection()->applyToTEs(&setfunc);
+        success = success && getSelection()->applyToTEs(&setfunc);
     }
 
     struct g : public LLSelectedObjectFunctor
@@ -1989,11 +2005,11 @@ bool LLSelectMgr::selectionSetGLTFMaterial(const LLUUID& mat_id)
             return true;
         }
     } sendfunc(item);
-    getSelection()->applyToObjects(&sendfunc);
+    success = success && getSelection()->applyToObjects(&sendfunc);
 
     LLGLTFMaterialList::flushUpdates();
 
-    return true;
+    return success;
 }
 
 //-----------------------------------------------------------------------------
diff --git a/indra/newview/llselectmgr.h b/indra/newview/llselectmgr.h
index b905d54e4ebfe48ac9f2f6d1675526b63b32fdd5..4205497109e60004135bb721056b4a4e152ae937 100644
--- a/indra/newview/llselectmgr.h
+++ b/indra/newview/llselectmgr.h
@@ -391,7 +391,17 @@ class LLObjectSelection : public LLRefCount
 	 * Then this only texture is used for all selected faces.
 	 */
 	void applyNoCopyTextureToTEs(LLViewerInventoryItem* item);
-    void applyNoCopyPbrMaterialToTEs(LLViewerInventoryItem* item);
+    /*
+     * Multi-purpose function for applying PBR materials to the
+     * selected object or faces, any combination of copy/mod/transfer
+     * permission restrictions. This method moves the restricted
+     * material to the object's inventory and doesn't make a copy of the
+     * material for each face. Then this only material is used for
+     * all selected faces.
+     * Returns false if applying the material failed on one or more selected
+     * faces.
+     */
+    bool applyRestrictedPbrMaterialToTEs(LLViewerInventoryItem* item);
 
 	ESelectType getSelectType() const { return mSelectType; }
 
@@ -649,7 +659,7 @@ class LLSelectMgr final : public LLEditMenuHandler, public LLSimpleton<LLSelectM
 	void selectionSetRestitution(F32 restitution);
 	void selectionSetMaterial(U8 material);
 	bool selectionSetImage(const LLUUID& imageid); // could be item or asset id
-    bool selectionSetGLTFMaterial(const LLUUID& mat_id); // could be item or asset id
+    bool selectionSetGLTFMaterial(const LLUUID& mat_id); // material id only
 	void selectionSetColor(const LLColor4 &color);
 	void selectionSetColorOnly(const LLColor4 &color); // Set only the RGB channels
 	void selectionSetAlphaOnly(const F32 alpha); // Set only the alpha channel
diff --git a/indra/newview/lltooldraganddrop.cpp b/indra/newview/lltooldraganddrop.cpp
index f5b06c59fe7662f4e97ead8624cb251dcbeb00ca..a19f6ca731c426440137dfa24bea39d65286dc9b 100644
--- a/indra/newview/lltooldraganddrop.cpp
+++ b/indra/newview/lltooldraganddrop.cpp
@@ -936,6 +936,8 @@ BOOL LLToolDragAndDrop::handleDropMaterialProtections(LLViewerObject* hit_obj,
 													 LLToolDragAndDrop::ESource source,
 													 const LLUUID& src_id)
 {
+	if (!item) return FALSE;
+
 	// Always succeed if....
 	// material is from the library 
 	// or already in the contents of the object
@@ -954,7 +956,14 @@ BOOL LLToolDragAndDrop::handleDropMaterialProtections(LLViewerObject* hit_obj,
 	{
 		hit_obj->requestInventory();
 		LLSD args;
-		args["ERROR_MESSAGE"] = "Unable to add texture.\nPlease wait a few seconds and try again.";
+        if (LLAssetType::AT_MATERIAL == item->getType())
+        {
+            args["ERROR_MESSAGE"] = "Unable to add material.\nPlease wait a few seconds and try again.";
+        }
+        else
+        {
+            args["ERROR_MESSAGE"] = "Unable to add texture.\nPlease wait a few seconds and try again.";
+        }
 		LLNotificationsUtil::add("ErrorMessage", args);
 		return FALSE;
 	}
@@ -963,11 +972,9 @@ BOOL LLToolDragAndDrop::handleDropMaterialProtections(LLViewerObject* hit_obj,
 		// if the asset is already in the object's inventory 
 		// then it can always be added to a side.
 		// This saves some work if the task's inventory is already loaded
-		// and ensures that the texture item is only added once.
+		// and ensures that the asset item is only added once.
 		return TRUE;
 	}
-
-	if (!item) return FALSE;
 	
 	LLPointer<LLViewerInventoryItem> new_item = new LLViewerInventoryItem(item);
 	if (!item->getPermissions().allowOperationBy(PERM_COPY, gAgent.getID()))
@@ -1001,7 +1008,7 @@ BOOL LLToolDragAndDrop::handleDropMaterialProtections(LLViewerObject* hit_obj,
 				return FALSE;
 			}
 		}
-		// Add the texture item to the target object's inventory.
+		// Add the asset item to the target object's inventory.
         if (LLAssetType::AT_TEXTURE == new_item->getType()
             || LLAssetType::AT_MATERIAL == new_item->getType())
         {
@@ -1011,20 +1018,24 @@ BOOL LLToolDragAndDrop::handleDropMaterialProtections(LLViewerObject* hit_obj,
 		{
 			hit_obj->updateInventory(new_item, TASK_INVENTORY_ITEM_KEY, true);
 		}
- 		// TODO: Check to see if adding the item was successful; if not, then
-		// we should return false here.
+		// Force the object to update and refetch its inventory so it has this asset.
+		hit_obj->dirtyInventory();
+		hit_obj->requestInventory();
+		// TODO: Check to see if adding the item was successful; if not, then
+		// we should return false here. This will requre a separate listener
+		// since without listener, we have no way to receive update
 	}
 	else if (!item->getPermissions().allowOperationBy(PERM_TRANSFER,
 													 gAgent.getID()))
 	{
-		// Check that we can add the texture as inventory to the object
+		// Check that we can add the asset as inventory to the object
 		if (willObjectAcceptInventory(hit_obj,item) < ACCEPT_YES_COPY_SINGLE )
 		{
 			return FALSE;
 		}
 		// *FIX: may want to make sure agent can paint hit_obj.
 
-		// Add the texture item to the target object's inventory.
+		// Add the asset item to the target object's inventory.
 		if (LLAssetType::AT_TEXTURE == new_item->getType()
             || LLAssetType::AT_MATERIAL == new_item->getType())
 		{
@@ -1034,7 +1045,27 @@ BOOL LLToolDragAndDrop::handleDropMaterialProtections(LLViewerObject* hit_obj,
 		{
 			hit_obj->updateInventory(new_item, TASK_INVENTORY_ITEM_KEY, true);
 		}
-		// Force the object to update and refetch its inventory so it has this texture.
+		// Force the object to update and refetch its inventory so it has this asset.
+		hit_obj->dirtyInventory();
+		hit_obj->requestInventory();
+		// TODO: Check to see if adding the item was successful; if not, then
+		// we should return false here. This will requre a separate listener
+		// since without listener, we have no way to receive update
+	}
+	else if (LLAssetType::AT_MATERIAL == new_item->getType() &&
+             !item->getPermissions().allowOperationBy(PERM_MODIFY, gAgent.getID()))
+	{
+		// Check that we can add the material as inventory to the object
+		if (willObjectAcceptInventory(hit_obj,item) < ACCEPT_YES_COPY_SINGLE )
+		{
+			return FALSE;
+		}
+		// *FIX: may want to make sure agent can paint hit_obj.
+
+		// Add the material item to the target object's inventory.
+        hit_obj->updateMaterialInventory(new_item, TASK_INVENTORY_ITEM_KEY, true);
+
+		// Force the object to update and refetch its inventory so it has this material.
 		hit_obj->dirtyInventory();
 		hit_obj->requestInventory();
 		// TODO: Check to see if adding the item was successful; if not, then
diff --git a/indra/newview/llviewerinventory.cpp b/indra/newview/llviewerinventory.cpp
index 839125628456e4392fd8ab420e59c915943370a0..f407bde93e1edc1f19968dbd7084ae656c7fb4d5 100644
--- a/indra/newview/llviewerinventory.cpp
+++ b/indra/newview/llviewerinventory.cpp
@@ -1866,6 +1866,67 @@ void copy_inventory_from_notecard(const LLUUID& destination_id,
     }
 }
 
+void move_or_copy_inventory_from_object(const LLUUID& destination_id,
+                                        const LLUUID& object_id,
+                                        const LLUUID& item_id,
+                                        LLPointer<LLInventoryCallback> cb)
+{
+    LLViewerObject* object = gObjectList.findObject(object_id);
+    if (!object)
+    {
+        return;
+    }
+    const LLInventoryItem* item = object->getInventoryItem(item_id);
+    if (!item)
+    {
+        return;
+    }
+
+    class LLItemAddedObserver : public LLInventoryObserver
+    {
+    public:
+        LLItemAddedObserver(const LLUUID& copied_asset_id, LLPointer<LLInventoryCallback> cb)
+        : LLInventoryObserver(),
+          mAssetId(copied_asset_id),
+          mCallback(cb)
+        {
+        }
+
+        void changed(U32 mask) override
+        {
+            if((mask & (LLInventoryObserver::ADD)) == 0)
+            {
+                return;
+            }
+            for (const LLUUID& changed_id : gInventory.getChangedIDs())
+            {
+                LLViewerInventoryItem* changed_item = gInventory.getItem(changed_id);
+                if (changed_item->getAssetUUID() == mAssetId)
+                {
+                    changeComplete(changed_item->getUUID());
+                    return;
+                }
+            }
+        }
+
+    private:
+        void changeComplete(const LLUUID& item_id)
+        {
+			mCallback->fire(item_id);
+            gInventory.removeObserver(this);
+            delete this;
+        }
+
+        LLUUID mAssetId;
+        LLPointer<LLInventoryCallback> mCallback;
+    };
+
+	const LLUUID& asset_id = item->getAssetUUID();
+    LLItemAddedObserver* observer = new LLItemAddedObserver(asset_id, cb);
+    gInventory.addObserver(observer);
+    object->moveInventory(destination_id, item_id);
+}
+
 void create_new_item(const std::string& name,
 				   const LLUUID& parent_id,
 				   LLAssetType::EType asset_type,
diff --git a/indra/newview/llviewerinventory.h b/indra/newview/llviewerinventory.h
index 01081977f3989f72242935afbf4dd13b523a0c1e..93ec4efc7d4d9c6fc570485d5b58d32b74031dc1 100644
--- a/indra/newview/llviewerinventory.h
+++ b/indra/newview/llviewerinventory.h
@@ -449,6 +449,10 @@ void copy_inventory_from_notecard(const LLUUID& destination_id,
 								  const LLInventoryItem *src,
 								  U32 callback_id = 0);
 
+void move_or_copy_inventory_from_object(const LLUUID& destination_id,
+                                        const LLUUID& object_id,
+                                        const LLUUID& item_id,
+                                        LLPointer<LLInventoryCallback> cb);
 
 void menu_create_inventory_item(LLInventoryPanel* root,
 								LLFolderBridge* bridge,
diff --git a/indra/newview/llviewerobject.cpp b/indra/newview/llviewerobject.cpp
index bb9b59a006ad83b0dfae0ea87ac948f747e9a1ad..019a46ac8fe6900cc0624a20fe290275981f4be0 100644
--- a/indra/newview/llviewerobject.cpp
+++ b/indra/newview/llviewerobject.cpp
@@ -3670,6 +3670,17 @@ LLInventoryObject* LLViewerObject::getInventoryObject(const LLUUID& item_id)
 	return rv;
 }
 
+LLInventoryItem* LLViewerObject::getInventoryItem(const LLUUID& item_id)
+{
+	LLInventoryObject* iobj = getInventoryObject(item_id);
+	if (!iobj || iobj->getType() == LLAssetType::AT_CATEGORY)
+	{
+		return NULL;
+	}
+	LLInventoryItem* item = dynamic_cast<LLInventoryItem*>(iobj);
+	return item;
+}
+
 void LLViewerObject::getInventoryContents(LLInventoryObject::object_list_t& objects)
 {
 	if(mInventory)
diff --git a/indra/newview/llviewerobject.h b/indra/newview/llviewerobject.h
index 78d8f62172dca9da04c54030e0586f845cfe8537..0bf58d8e9699b98af91cc2a239da1d4ab9f8629a 100644
--- a/indra/newview/llviewerobject.h
+++ b/indra/newview/llviewerobject.h
@@ -519,6 +519,7 @@ class LLViewerObject
 	void updateInventoryLocal(LLInventoryItem* item, U8 key); // Update without messaging.
 	void updateMaterialInventory(LLViewerInventoryItem* item, U8 key, bool is_new);
 	LLInventoryObject* getInventoryObject(const LLUUID& item_id);
+	LLInventoryItem* getInventoryItem(const LLUUID& item_id);
 
 	// Get content except for root category
 	void getInventoryContents(LLInventoryObject::object_list_t& objects);
diff --git a/indra/newview/skins/default/xui/en/notifications.xml b/indra/newview/skins/default/xui/en/notifications.xml
index 2a8033eaede0777bf5807e5894c4714388c5f95a..3536bdd55222e0aca6d5067913a13cb03aa6433e 100644
--- a/indra/newview/skins/default/xui/en/notifications.xml
+++ b/indra/newview/skins/default/xui/en/notifications.xml
@@ -9376,6 +9376,18 @@ We cannot display a preview of this texture because it is no-copy and/or no-tran
     yestext="OK"/>
   </notification>
 
+  <notification
+   icon="alertmodal.tga"
+   name="LivePreviewUnavailablePBR"
+   type="alert">
+   
+We cannot display a preview of this material because it is no-copy, no-transfer, and/or no-modify.
+  <usetemplate
+    ignoretext="Warn me that Live Preview mode is not available for no-copy, no-transfer, and/or no-modify materials"
+    name="okignore"
+    yestext="OK"/>
+  </notification>
+
   <notification
    icon="alertmodal.tga"
    name="FacePasteFailed"
diff --git a/indra/newview/skins/default/xui/en/panel_tools_texture.xml b/indra/newview/skins/default/xui/en/panel_tools_texture.xml
index 68dd38451afd34ca7863973ed8adc39f55df8f58..a9f138d6c2cd8a58bd1f50246c592788d72f5830 100644
--- a/indra/newview/skins/default/xui/en/panel_tools_texture.xml
+++ b/indra/newview/skins/default/xui/en/panel_tools_texture.xml
@@ -284,12 +284,26 @@
              name="pbr_from_inventory"
              label="Choose from inventory"
              width="140"/>
+            <text
+             visible="false"
+             type="string"
+             length="1"
+             follows="left|top"
+             height="10"
+             layout="topleft"
+             top_pad="4"
+             left_delta="0"
+             name="material_permissions_loading_label"
+             text_readonly_color="LabelDisabledColor"
+             width="160">
+                Loading contents...
+            </text>
             <button
              follows="left|top"
              height="23"
              layout="topleft"
              left_delta="0"
-             top_pad="4"
+             top_delta="0"
              name="edit_selected_pbr"
              label="Edit Selected"
              width="140"/>