diff --git a/package.json b/package.json
index 059fdd390f..572dcddeb5 100644
--- a/package.json
+++ b/package.json
@@ -65,6 +65,7 @@
     "lodash": "^4.13.1",
     "matrix-js-sdk": "0.7.8",
     "optimist": "^0.6.1",
+    "prop-types": "^15.5.8",
     "q": "^1.4.1",
     "react": "^15.4.0",
     "react-addons-css-transition-group": "15.3.2",
diff --git a/src/components/views/elements/ActionButton.js b/src/components/views/elements/ActionButton.js
new file mode 100644
index 0000000000..08fb6faa1d
--- /dev/null
+++ b/src/components/views/elements/ActionButton.js
@@ -0,0 +1,84 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import PropTypes from 'prop-types';
+import AccessibleButton from './AccessibleButton';
+import dis from '../../../dispatcher';
+import sdk from '../../../index';
+
+export default React.createClass({
+    displayName: 'RoleButton',
+
+    propTypes: {
+        size: PropTypes.string,
+        tooltip: PropTypes.bool,
+        action: PropTypes.string.isRequired,
+        mouseOverAction: PropTypes.string,
+        label: PropTypes.string.isRequired,
+        iconPath: PropTypes.string.isRequired,
+    },
+
+    getDefaultProps: function() {
+        return {
+            size: "25",
+            tooltip: false,
+        };
+    },
+
+    getInitialState: function() {
+        return {
+            showTooltip: false,
+        };
+    },
+
+    _onClick: function(ev) {
+        ev.stopPropagation();
+        dis.dispatch({action: this.props.action});
+    },
+
+    _onMouseEnter: function() {
+        if (this.props.tooltip) this.setState({showTooltip: true});
+        if (this.props.mouseOverAction) {
+            dis.dispatch({action: this.props.mouseOverAction});
+        }
+    },
+
+    _onMouseLeave: function() {
+        this.setState({showTooltip: false});
+    },
+
+    render: function() {
+        const TintableSvg = sdk.getComponent("elements.TintableSvg");
+
+        let tooltip;
+        if (this.state.showTooltip) {
+            const RoomTooltip = sdk.getComponent("rooms.RoomTooltip");
+            tooltip = <RoomTooltip className="mx_RoleButton_tooltip" label={this.props.label} />;
+        }
+
+        return (
+            <AccessibleButton className="mx_RoleButton"
+                onClick={this._onClick}
+                onMouseEnter={this._onMouseEnter}
+                onMouseLeave={this._onMouseLeave}
+            >
+                <TintableSvg src={this.props.iconPath} width={this.props.size} height={this.props.size} />
+                {tooltip}
+            </AccessibleButton>
+        );
+    }
+});
diff --git a/src/components/views/elements/CreateRoomButton.js b/src/components/views/elements/CreateRoomButton.js
new file mode 100644
index 0000000000..82643559b3
--- /dev/null
+++ b/src/components/views/elements/CreateRoomButton.js
@@ -0,0 +1,39 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import sdk from '../../../index';
+import PropTypes from 'prop-types';
+
+const CreateRoomButton = function(props) {
+    const ActionButton = sdk.getComponent('elements.ActionButton');
+    return (
+        <ActionButton action="view_create_chat"
+            mouseOverAction={props.callout ? "callout_create_room" : null}
+            label="Create new room"
+            iconPath="img/icons-create-room.svg"
+            size={props.size}
+            tooltip={props.tooltip}
+        />
+    );
+};
+
+CreateRoomButton.propTypes = {
+    size: PropTypes.string,
+    tooltip: PropTypes.bool,
+};
+
+export default CreateRoomButton;
diff --git a/src/components/views/elements/HomeButton.js b/src/components/views/elements/HomeButton.js
new file mode 100644
index 0000000000..5c446f24c9
--- /dev/null
+++ b/src/components/views/elements/HomeButton.js
@@ -0,0 +1,38 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import sdk from '../../../index';
+import PropTypes from 'prop-types';
+
+const HomeButton = function(props) {
+    const ActionButton = sdk.getComponent('elements.ActionButton');
+    return (
+        <ActionButton action="view_home_page"
+            label="Welcome page"
+            iconPath="img/icons-home.svg"
+            size={props.size}
+            tooltip={props.tooltip}
+        />
+    );
+};
+
+HomeButton.propTypes = {
+    size: PropTypes.string,
+    tooltip: PropTypes.bool,
+};
+
+export default HomeButton;
diff --git a/src/components/views/elements/RoomDirectoryButton.js b/src/components/views/elements/RoomDirectoryButton.js
new file mode 100644
index 0000000000..fc04a666df
--- /dev/null
+++ b/src/components/views/elements/RoomDirectoryButton.js
@@ -0,0 +1,39 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import sdk from '../../../index';
+import PropTypes from 'prop-types';
+
+const RoomDirectoryButton = function(props) {
+    const ActionButton = sdk.getComponent('elements.ActionButton');
+    return (
+        <ActionButton action="view_room_directory"
+            mouseOverAction={props.callout ? "callout_room_directory" : null}
+            label="Room directory"
+            iconPath="img/icons-directory.svg"
+            size={props.size}
+            tooltip={props.tooltip}
+        />
+    );
+};
+
+RoomDirectoryButton.propTypes = {
+    size: PropTypes.string,
+    tooltip: PropTypes.bool,
+};
+
+export default RoomDirectoryButton;
diff --git a/src/components/views/elements/SettingsButton.js b/src/components/views/elements/SettingsButton.js
new file mode 100644
index 0000000000..c6438da277
--- /dev/null
+++ b/src/components/views/elements/SettingsButton.js
@@ -0,0 +1,38 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import sdk from '../../../index';
+import PropTypes from 'prop-types';
+
+const SettingsButton = function(props) {
+    const ActionButton = sdk.getComponent('elements.ActionButton');
+    return (
+        <ActionButton action="view_user_settings"
+            label="Settings"
+            iconPath="img/icons-settings.svg"
+            size={props.size}
+            tooltip={props.tooltip}
+        />
+    );
+};
+
+SettingsButton.propTypes = {
+    size: PropTypes.string,
+    tooltip: PropTypes.bool,
+};
+
+export default SettingsButton;
diff --git a/src/components/views/elements/StartChatButton.js b/src/components/views/elements/StartChatButton.js
new file mode 100644
index 0000000000..c13b51ee67
--- /dev/null
+++ b/src/components/views/elements/StartChatButton.js
@@ -0,0 +1,39 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import sdk from '../../../index';
+import PropTypes from 'prop-types';
+
+const StartChatButton = function(props) {
+    const ActionButton = sdk.getComponent('elements.ActionButton');
+    return (
+        <ActionButton action="view_create_chat"
+            mouseOverAction={props.callout ? "callout_start_chat" : null}
+            label="Start chat"
+            iconPath="img/icons-people.svg"
+            size={props.size}
+            tooltip={props.tooltip}
+        />
+    );
+};
+
+StartChatButton.propTypes = {
+    size: PropTypes.string,
+    tooltip: PropTypes.bool,
+};
+
+export default StartChatButton;
diff --git a/src/components/views/rooms/RoomList.js b/src/components/views/rooms/RoomList.js
index 760b0543c6..216dd972cf 100644
--- a/src/components/views/rooms/RoomList.js
+++ b/src/components/views/rooms/RoomList.js
@@ -1,5 +1,6 @@
 /*
 Copyright 2015, 2016 OpenMarket Ltd
+Copyright 2017 Vector Creations Ltd
 
 Licensed under the Apache License, Version 2.0 (the "License");
 you may not use this file except in compliance with the License.
@@ -29,7 +30,14 @@ var Rooms = require('../../../Rooms');
 import DMRoomMap from '../../../utils/DMRoomMap';
 var Receipt = require('../../../utils/Receipt');
 
-var HIDE_CONFERENCE_CHANS = true;
+const HIDE_CONFERENCE_CHANS = true;
+
+const VERBS = {
+    'm.favourite': 'favourite',
+    'im.vector.fake.direct': 'tag direct chat',
+    'im.vector.fake.recent': 'restore',
+    'm.lowpriority': 'demote',
+};
 
 module.exports = React.createClass({
     displayName: 'RoomList',
@@ -44,6 +52,7 @@ module.exports = React.createClass({
     getInitialState: function() {
         return {
             isLoadingLeftRooms: false,
+            totalRoomCount: null,
             lists: {},
             incomingCall: null,
         };
@@ -63,8 +72,17 @@ module.exports = React.createClass({
         cli.on("RoomMember.name", this.onRoomMemberName);
         cli.on("accountData", this.onAccountData);
 
-        var s = this.getRoomLists();
-        this.setState(s);
+        // lookup for which lists a given roomId is currently in.
+        this.listsForRoomId = {};
+
+        this.refreshRoomList();
+
+        // order of the sublists
+        //this.listOrder = [];
+
+        // loop count to stop a stack overflow if the user keeps waggling the
+        // mouse for >30s in a row, or if running under mocha
+        this._delayedRefreshRoomListLoopCount = 0
     },
 
     componentDidMount: function() {
@@ -202,31 +220,33 @@ module.exports = React.createClass({
     }, 500),
 
     refreshRoomList: function() {
-        // console.log("DEBUG: Refresh room list delta=%s ms",
-        //     (!this._lastRefreshRoomListTs ? "-" : (Date.now() - this._lastRefreshRoomListTs))
-        // );
-
-        // TODO: rather than bluntly regenerating and re-sorting everything
-        // every time we see any kind of room change from the JS SDK
-        // we could do incremental updates on our copy of the state
-        // based on the room which has actually changed.  This would stop
-        // us re-rendering all the sublists every time anything changes anywhere
-        // in the state of the client.
-        this.setState(this.getRoomLists());
+        // TODO: ideally we'd calculate this once at start, and then maintain
+        // any changes to it incrementally, updating the appropriate sublists
+        // as needed.
+        // Alternatively we'd do something magical with Immutable.js or similar.
+        const lists = this.getRoomLists();
+        let totalRooms = 0;
+        for (const l of Object.values(lists)) {
+            totalRooms += l.length;
+        }
+        this.setState({
+            lists: this.getRoomLists(),
+            totalRoomCount: totalRooms,
+        });
 
         // this._lastRefreshRoomListTs = Date.now();
     },
 
     getRoomLists: function() {
         var self = this;
-        var s = { lists: {} };
+        const lists = {};
 
-        s.lists["im.vector.fake.invite"] = [];
-        s.lists["m.favourite"] = [];
-        s.lists["im.vector.fake.recent"] = [];
-        s.lists["im.vector.fake.direct"] = [];
-        s.lists["m.lowpriority"] = [];
-        s.lists["im.vector.fake.archived"] = [];
+        lists["im.vector.fake.invite"] = [];
+        lists["m.favourite"] = [];
+        lists["im.vector.fake.recent"] = [];
+        lists["im.vector.fake.direct"] = [];
+        lists["m.lowpriority"] = [];
+        lists["im.vector.fake.archived"] = [];
 
         const dmRoomMap = new DMRoomMap(MatrixClientPeg.get());
 
@@ -240,7 +260,8 @@ module.exports = React.createClass({
             //             ", prevMembership = " + me.events.member.getPrevContent().membership);
 
             if (me.membership == "invite") {
-                s.lists["im.vector.fake.invite"].push(room);
+                self.listsForRoomId[room.roomId].push("im.vector.fake.invite");
+                lists["im.vector.fake.invite"].push(room);
             }
             else if (HIDE_CONFERENCE_CHANS && Rooms.isConfCallRoom(room, me, self.props.ConferenceHandler)) {
                 // skip past this room & don't put it in any lists
@@ -254,48 +275,55 @@ module.exports = React.createClass({
                 if (tagNames.length) {
                     for (var i = 0; i < tagNames.length; i++) {
                         var tagName = tagNames[i];
-                        s.lists[tagName] = s.lists[tagName] || [];
-                        s.lists[tagNames[i]].push(room);
+                        lists[tagName] = lists[tagName] || [];
+                        lists[tagName].push(room);
+                        self.listsForRoomId[room.roomId].push(tagName);
+                        otherTagNames[tagName] = 1;
                     }
                 }
                 else if (dmRoomMap.getUserIdForRoomId(room.roomId)) {
                     // "Direct Message" rooms (that we're still in and that aren't otherwise tagged)
-                    s.lists["im.vector.fake.direct"].push(room);
+                    self.listsForRoomId[room.roomId].push("im.vector.fake.direct");
+                    lists["im.vector.fake.direct"].push(room);
                 }
                 else {
-                    s.lists["im.vector.fake.recent"].push(room);
+                    self.listsForRoomId[room.roomId].push("im.vector.fake.recent");
+                    lists["im.vector.fake.recent"].push(room);
                 }
             }
             else if (me.membership === "leave") {
-                s.lists["im.vector.fake.archived"].push(room);
+                self.listsForRoomId[room.roomId].push("im.vector.fake.archived");
+                lists["im.vector.fake.archived"].push(room);
             }
             else {
                 console.error("unrecognised membership: " + me.membership + " - this should never happen");
             }
         });
 
-        if (s.lists["im.vector.fake.direct"].length == 0 &&
+        if (lists["im.vector.fake.direct"].length == 0 &&
             MatrixClientPeg.get().getAccountData('m.direct') === undefined &&
             !MatrixClientPeg.get().isGuest())
         {
             // scan through the 'recents' list for any rooms which look like DM rooms
             // and make them DM rooms
-            const oldRecents = s.lists["im.vector.fake.recent"];
-            s.lists["im.vector.fake.recent"] = [];
+            const oldRecents = lists["im.vector.fake.recent"];
+            lists["im.vector.fake.recent"] = [];
 
             for (const room of oldRecents) {
                 const me = room.getMember(MatrixClientPeg.get().credentials.userId);
 
                 if (me && Rooms.looksLikeDirectMessageRoom(room, me)) {
-                    s.lists["im.vector.fake.direct"].push(room);
+                    self.listsForRoomId[room.roomId].push("im.vector.fake.direct");
+                    lists["im.vector.fake.direct"].push(room);
                 } else {
-                    s.lists["im.vector.fake.recent"].push(room);
+                    self.listsForRoomId[room.roomId].push("im.vector.fake.recent");
+                    lists["im.vector.fake.recent"].push(room);
                 }
             }
 
             // save these new guessed DM rooms into the account data
             const newMDirectEvent = {};
-            for (const room of s.lists["im.vector.fake.direct"]) {
+            for (const room of lists["im.vector.fake.direct"]) {
                 const me = room.getMember(MatrixClientPeg.get().credentials.userId);
                 const otherPerson = Rooms.getOnlyOtherMember(room, me);
                 if (!otherPerson) continue;
@@ -313,7 +341,22 @@ module.exports = React.createClass({
 
         // we actually apply the sorting to this when receiving the prop in RoomSubLists.
 
-        return s;
+        // we'll need this when we get to iterating through lists programatically - e.g. ctrl-shift-up/down
+/*
+        this.listOrder = [
+            "im.vector.fake.invite",
+            "m.favourite",
+            "im.vector.fake.recent",
+            "im.vector.fake.direct",
+            Object.keys(otherTagNames).filter(tagName=>{
+                return (!tagName.match(/^m\.(favourite|lowpriority)$/));
+            }).sort(),
+            "m.lowpriority",
+            "im.vector.fake.archived"
+        ];
+*/
+
+        return lists;
     },
 
     _getScrollNode: function() {
@@ -467,6 +510,62 @@ module.exports = React.createClass({
         this.refs.gemscroll.forceUpdate();
     },
 
+    _getEmptyContent: function(section) {
+        const RoomDropTarget = sdk.getComponent('rooms.RoomDropTarget');
+
+        if (this.props.collapsed) {
+            return <RoomDropTarget label="" />;
+        }
+
+        const StartChatButton = sdk.getComponent('elements.StartChatButton');
+        const RoomDirectoryButton = sdk.getComponent('elements.RoomDirectoryButton');
+        const CreateRoomButton = sdk.getComponent('elements.CreateRoomButton');
+        if (this.state.totalRoomCount === 0) {
+            const TintableSvg = sdk.getComponent('elements.TintableSvg');
+            switch (section) {
+                case 'im.vector.fake.direct':
+                    return <div className="mx_RoomList_emptySubListTip">
+                        Press
+                        <StartChatButton size="16" callout={true}/>
+                        to start a chat with someone
+                    </div>;
+                case 'im.vector.fake.recent':
+                    return <div className="mx_RoomList_emptySubListTip">
+                        You're not in any rooms yet! Press
+                        <CreateRoomButton size="16" callout={true}/>
+                        to make a room or
+                        <RoomDirectoryButton size="16" callout={true}/>
+                        to browse the directory
+                    </div>;
+            }
+        }
+
+        if (this.state.totalRoomCount === 0) {
+            return null;
+        }
+
+        const labelText = 'Drop here to ' + (VERBS[section] || 'tag ' + section);
+
+        return <RoomDropTarget label={labelText} />;
+    },
+
+    _getHeaderItems: function(section) {
+        const StartChatButton = sdk.getComponent('elements.StartChatButton');
+        const RoomDirectoryButton = sdk.getComponent('elements.RoomDirectoryButton');
+        const CreateRoomButton = sdk.getComponent('elements.CreateRoomButton');
+        switch (section) {
+            case 'im.vector.fake.direct':
+                return <span className="mx_RoomList_headerButtons">
+                    <StartChatButton size="16" />
+                </span>;
+            case 'im.vector.fake.recent':
+                return <span className="mx_RoomList_headerButtons">
+                    <RoomDirectoryButton size="16" />
+                    <CreateRoomButton size="16" />
+                </span>;
+        }
+    },
+
     render: function() {
         var RoomSubList = sdk.getComponent('structures.RoomSubList');
         var self = this;
@@ -489,7 +588,7 @@ module.exports = React.createClass({
                 <RoomSubList list={ self.state.lists['m.favourite'] }
                              label="Favourites"
                              tagName="m.favourite"
-                             verb="favourite"
+                             emptyContent={this._getEmptyContent('m.favourite')}
                              editable={ true }
                              order="manual"
                              selectedRoom={ self.props.selectedRoom }
@@ -502,7 +601,8 @@ module.exports = React.createClass({
                 <RoomSubList list={ self.state.lists['im.vector.fake.direct'] }
                              label="People"
                              tagName="im.vector.fake.direct"
-                             verb="tag direct chat"
+                             emptyContent={this._getEmptyContent('im.vector.fake.direct')}
+                             headerItems={this._getHeaderItems('im.vector.fake.direct')}
                              editable={ true }
                              order="recent"
                              selectedRoom={ self.props.selectedRoom }
@@ -516,7 +616,8 @@ module.exports = React.createClass({
                 <RoomSubList list={ self.state.lists['im.vector.fake.recent'] }
                              label="Rooms"
                              editable={ true }
-                             verb="restore"
+                             emptyContent={this._getEmptyContent('im.vector.fake.recent')}
+                             headerItems={this._getHeaderItems('im.vector.fake.recent')}
                              order="recent"
                              selectedRoom={ self.props.selectedRoom }
                              incomingCall={ self.state.incomingCall }
@@ -531,7 +632,7 @@ module.exports = React.createClass({
                              key={ tagName }
                              label={ tagName }
                              tagName={ tagName }
-                             verb={ "tag as " + tagName }
+                             emptyContent={this._getEmptyContent(tagName)}
                              editable={ true }
                              order="manual"
                              selectedRoom={ self.props.selectedRoom }
@@ -547,7 +648,7 @@ module.exports = React.createClass({
                 <RoomSubList list={ self.state.lists['m.lowpriority'] }
                              label="Low priority"
                              tagName="m.lowpriority"
-                             verb="demote"
+                             emptyContent={this._getEmptyContent('m.lowpriority')}
                              editable={ true }
                              order="recent"
                              selectedRoom={ self.props.selectedRoom }