diff --git a/source/Components/Xceed.Wpf.AvalonDock/Controls/LayoutAnchorableFloatingWindowControl.cs b/source/Components/Xceed.Wpf.AvalonDock/Controls/LayoutAnchorableFloatingWindowControl.cs
index ef15595a..246de59e 100644
--- a/source/Components/Xceed.Wpf.AvalonDock/Controls/LayoutAnchorableFloatingWindowControl.cs
+++ b/source/Components/Xceed.Wpf.AvalonDock/Controls/LayoutAnchorableFloatingWindowControl.cs
@@ -324,6 +324,8 @@ private void OnExecuteHideWindowCommand( object parameter )
         var anchorableLayoutItem = manager.GetLayoutItemFromModel( anchorable ) as LayoutAnchorableItem;
         anchorableLayoutItem.HideCommand.Execute( parameter );
       }
+
+      Hide(); // Bring toolwindows inside hidden FloatingWindow back requires restart of app
     }
     #endregion
 
diff --git a/source/Components/Xceed.Wpf.AvalonDock/DockingManager.cs b/source/Components/Xceed.Wpf.AvalonDock/DockingManager.cs
index 289e25da..dab25ed3 100644
--- a/source/Components/Xceed.Wpf.AvalonDock/DockingManager.cs
+++ b/source/Components/Xceed.Wpf.AvalonDock/DockingManager.cs
@@ -2069,16 +2069,18 @@ internal UIElement CreateUIElementForModel( ILayoutElement model )
         };
         newFW.SetParentToMainWindowOf( this );
 
-        var paneForExtensions = modelFW.RootPanel.Children.OfType<LayoutAnchorablePane>().FirstOrDefault();
-        if( paneForExtensions != null )
+        // Floating Window can also contain only Pane Groups at its base (issue #27) so we check for
+        // RootPanel (which is a LayoutAnchorablePaneGroup) and make sure the window is positioned back
+        // in current (or nearest) monitor
+        var panegroup = modelFW.RootPanel;
+        if (panegroup != null)
         {
-          //ensure that floating window position is inside current (or nearest) monitor
-          paneForExtensions.KeepInsideNearestMonitor();
+          panegroup.KeepInsideNearestMonitor();  // Check position is valid in current setup
 
-          newFW.Left = paneForExtensions.FloatingLeft;
-          newFW.Top = paneForExtensions.FloatingTop;
-          newFW.Width = paneForExtensions.FloatingWidth;
-          newFW.Height = paneForExtensions.FloatingHeight;
+          newFW.Left = panegroup.FloatingLeft;   // Position the window to previous or nearest valid position
+          newFW.Top = panegroup.FloatingTop;
+          newFW.Width = panegroup.FloatingWidth;
+          newFW.Height = panegroup.FloatingHeight;
         }
 
         newFW.ShowInTaskbar = false;
@@ -2088,11 +2090,11 @@ internal UIElement CreateUIElementForModel( ILayoutElement model )
            newFW.Show();
         } ), DispatcherPriority.Send );
 
-        // Do not set the WindowState before showing or it will be lost
-        if( paneForExtensions != null && paneForExtensions.IsMaximized )
+        if( panegroup != null && panegroup.IsMaximized )
         {
           newFW.WindowState = WindowState.Maximized;
         }
+
         return newFW;
       }
 
diff --git a/source/Components/Xceed.Wpf.AvalonDock/Layout/LayoutAnchorable.cs b/source/Components/Xceed.Wpf.AvalonDock/Layout/LayoutAnchorable.cs
index c07ffd9f..29b8e0f4 100644
--- a/source/Components/Xceed.Wpf.AvalonDock/Layout/LayoutAnchorable.cs
+++ b/source/Components/Xceed.Wpf.AvalonDock/Layout/LayoutAnchorable.cs
@@ -765,6 +765,14 @@ private void NotifyIsVisibleChanged()
 
     private void UpdateParentVisibility()
     {
+      // Element is Hidden since it has no parent but a previous parent
+      if (this.PreviousContainer != null && Parent == null)
+      {
+        // Go back to using previous parent
+        Parent = PreviousContainer;
+////        PreviousContainer = null;
+      }
+
       var parentPane = Parent as ILayoutElementWithVisibility;
       if( parentPane != null )
         parentPane.ComputeVisibility();
diff --git a/source/MLibTest/MLibTest/Demos/PanesTemplateSelector.cs b/source/MLibTest/MLibTest/Demos/PanesTemplateSelector.cs
index ddfe94bc..f5bed864 100644
--- a/source/MLibTest/MLibTest/Demos/PanesTemplateSelector.cs
+++ b/source/MLibTest/MLibTest/Demos/PanesTemplateSelector.cs
@@ -36,6 +36,8 @@ public PanesTemplateSelector()
         /// </summary>
         public DataTemplate ColorPickerViewTemplate { get; set; }
 
+        public DataTemplate Tooln_ViewTemplate { get; set; }
+
         /// <summary>
         /// Gets a template for simple testing tool windows.
         /// </summary>
diff --git a/source/MLibTest/MLibTest/Demos/ViewModels/WorkSpaceViewModel.cs b/source/MLibTest/MLibTest/Demos/ViewModels/WorkSpaceViewModel.cs
index 9f0d8575..3a216af8 100644
--- a/source/MLibTest/MLibTest/Demos/ViewModels/WorkSpaceViewModel.cs
+++ b/source/MLibTest/MLibTest/Demos/ViewModels/WorkSpaceViewModel.cs
@@ -106,6 +106,9 @@ internal class WorkSpaceViewModel : MLibTest.ViewModels.Base.ViewModelBase, IWor
         private Tool3_ViewModel _Tool3;
 
         private FileViewModel _activeDocument = null;
+        private Tool1_ViewModel _Tool1;
+        private Tool2_ViewModel _Tool2;
+        private Tool3_ViewModel _Tool3;
         #endregion private fields
 
         #region constructors
@@ -167,7 +170,8 @@ public IEnumerable<ToolViewModel> Tools
             get
             {
                 if (_tools == null)
-                    _tools = new ToolViewModel[] { FileStats, ColorPicker, Tool1, Tool2, Tool3 };
+                    _tools = new ToolViewModel[] { FileStats, ColorPicker, _Tool1, _Tool2, _Tool3 };
+
                 return _tools;
             }
         }
diff --git a/source/MLibTest/MLibTest/MLibTest.csproj b/source/MLibTest/MLibTest/MLibTest.csproj
index 59d9e339..dc48a8bc 100644
--- a/source/MLibTest/MLibTest/MLibTest.csproj
+++ b/source/MLibTest/MLibTest/MLibTest.csproj
@@ -21,7 +21,7 @@
     <DebugType>full</DebugType>
     <Optimize>false</Optimize>
     <OutputPath>bin\Debug\</OutputPath>
-    <DefineConstants>DEBUG;TRACE</DefineConstants>
+    <DefineConstants>TRACE;DEBUG</DefineConstants>
     <ErrorReport>prompt</ErrorReport>
     <WarningLevel>4</WarningLevel>
   </PropertyGroup>
@@ -81,9 +81,14 @@
     <Compile Include="Demos\LayoutInitializer.cs" />
     <Compile Include="Demos\PanesStyleSelector.cs" />
     <Compile Include="Demos\PanesTemplateSelector.cs" />
+    <Compile Include="Demos\ViewModels\Tools\Tool2_ViewModel.cs" />
+    <Compile Include="Demos\ViewModels\Tools\Tool3_ViewModel.cs" />
+    <Compile Include="Demos\ViewModels\Tools\Tool1_ViewModel.cs" />
+    <Compile Include="Demos\ViewModels\Tools\FileStatsViewModel.cs" />
     <Compile Include="Demos\ViewModels\AD\FileViewModel.cs" />
     <Compile Include="Demos\ViewModels\AD\PaneViewModel.cs" />
     <Compile Include="Demos\ViewModels\AD\ToolViewModel.cs" />
+    <Compile Include="Demos\ViewModels\Tools\ColorPickerViewModel.cs" />
     <Compile Include="Demos\ViewModels\Interfaces\IWorkSpaceViewModel.cs" />
     <Compile Include="Demos\ViewModels\Tools\ColorPickerViewModel.cs" />
     <Compile Include="Demos\ViewModels\Tools\FileStatsViewModel.cs" />
@@ -193,5 +198,6 @@
   <ItemGroup>
     <Resource Include="Demos\Images\property-blue.png" />
   </ItemGroup>
+  <ItemGroup />
   <Import Project="$(MSBuildToolsPath)\Microsoft.CSharp.targets" />
 </Project>
\ No newline at end of file