diff --git a/scripts/cube_logic.lua b/scripts/cube_logic.lua
index c448235..14dd345 100644
--- a/scripts/cube_logic.lua
+++ b/scripts/cube_logic.lua
@@ -574,8 +574,8 @@ local function create_room_objects()
             {room.wall_thickness, room.wall_height, room.half_size}, green_wall),
     }
 
-    -- Add lanterns in the four corners
-    local lantern_offset = 4.0
+    -- Add lanterns in the four corners (adjusted for bigger room)
+    local lantern_offset = room.half_size - 2.0  -- 2 units from wall
     objects[#objects + 1] = create_lantern(lantern_offset, lantern_offset)
     objects[#objects + 1] = create_lantern(-lantern_offset, lantern_offset)
     objects[#objects + 1] = create_lantern(lantern_offset, -lantern_offset)
diff --git a/scripts/dev_commands.py b/scripts/dev_commands.py
index f6a876f..8e11bbc 100644
--- a/scripts/dev_commands.py
+++ b/scripts/dev_commands.py
@@ -324,6 +324,7 @@ def _sync_assets(build_dir: str, dry_run: bool) -> None:
         ("scripts", ["*.lua"]),
         ("shaders", ["*.spv"]),
         ("scripts/models", ["*.stl", "*.obj", "*.fbx"]),
+        ("config", ["*.json"]),
     ]
 
     print("\n=== Syncing Assets ===")
@@ -369,7 +370,7 @@ def run_demo(args: argparse.Namespace) -> None:
 
     exe_name = args.target or ("sdl3_app.exe" if IS_WINDOWS else "sdl3_app")
     binary = str(Path(build_dir) / exe_name)
-    cmd: list[str] = [binary]
+    cmd: list[str] = [binary, "-j", "config/seed_runtime.json"]
     run_args = _strip_leading_double_dash(args.args)
     if run_args:
         cmd.extend(run_args)
diff --git a/shaders/solid.frag b/shaders/solid.frag
index 9791877..cec1102 100644
--- a/shaders/solid.frag
+++ b/shaders/solid.frag
@@ -4,7 +4,52 @@ layout(location = 0) in vec3 fragColor;
 layout(location = 1) in vec3 fragWorldPos;
 layout(location = 0) out vec4 outColor;
 
-void main() {
-    // Use vertex color directly for solid colors
-    outColor = vec4(fragColor, 1.0);
+// Lantern positions (8 lights)
+const vec3 LIGHT_POSITIONS[8] = vec3[8](
+    vec3(13.0, 4.5, 13.0),    // Corner
+    vec3(-13.0, 4.5, 13.0),   // Corner
+    vec3(13.0, 4.5, -13.0),   // Corner
+    vec3(-13.0, 4.5, -13.0),  // Corner
+    vec3(0.0, 4.5, 13.0),     // Wall midpoint
+    vec3(0.0, 4.5, -13.0),    // Wall midpoint
+    vec3(13.0, 4.5, 0.0),     // Wall midpoint
+    vec3(-13.0, 4.5, 0.0)     // Wall midpoint
+);
+
+const vec3 LIGHT_COLOR = vec3(1.0, 0.9, 0.6);  // Warm lantern color
+const float LIGHT_INTENSITY = 0.8;
+const float AMBIENT_STRENGTH = 0.08;  // Low ambient for darker atmosphere
+
+float calculateAttenuation(float distance) {
+    // Quadratic attenuation: 1 / (constant + linear*d + quadratic*d^2)
+    const float kConstant = 1.0;
+    const float kLinear = 0.09;
+    const float kQuadratic = 0.032;
+    return 1.0 / (kConstant + kLinear * distance + kQuadratic * distance * distance);
+}
+
+void main() {
+    vec3 ambient = AMBIENT_STRENGTH * fragColor;
+    vec3 lighting = vec3(0.0);
+
+    // Calculate contribution from each lantern
+    for (int i = 0; i < 8; i++) {
+        vec3 lightDir = LIGHT_POSITIONS[i] - fragWorldPos;
+        float distance = length(lightDir);
+        lightDir = normalize(lightDir);
+
+        // Distance attenuation
+        float attenuation = calculateAttenuation(distance);
+
+        // Add light contribution
+        lighting += LIGHT_COLOR * LIGHT_INTENSITY * attenuation;
+    }
+
+    // Combine ambient and dynamic lighting with surface color
+    vec3 finalColor = ambient + fragColor * lighting;
+
+    // Clamp to prevent over-bright areas
+    finalColor = clamp(finalColor, 0.0, 1.0);
+
+    outColor = vec4(finalColor, 1.0);
 }
diff --git a/shaders/solid.frag.spv b/shaders/solid.frag.spv
index 45f555f..b11bf63 100644
Binary files a/shaders/solid.frag.spv and b/shaders/solid.frag.spv differ
diff --git a/src/services/impl/sdl_window_service.cpp b/src/services/impl/sdl_window_service.cpp
index e25de35..22349f0 100644
--- a/src/services/impl/sdl_window_service.cpp
+++ b/src/services/impl/sdl_window_service.cpp
@@ -263,9 +263,34 @@ void SdlWindowService::PollEvents() {
     logger_->Trace("SdlWindowService", "PollEvents");
     SDL_Event event;
     while (SDL_PollEvent(&event)) {
-        // Convert SDL event to application event and publish
-        PublishEvent(event);
-        HandleMouseGrabEvent(event);
+        // Check if this event should trigger mouse grab
+        bool isGrabTrigger = false;
+        if (window_ && mouseGrabConfig_.enabled && mouseGrabConfig_.grabOnClick &&
+            event.type == SDL_EVENT_MOUSE_BUTTON_DOWN &&
+            event.button.button == grabMouseButton_) {
+            isGrabTrigger = true;
+            if (logger_) {
+                logger_->Info("SdlWindowService: Mouse grab triggered by click (button=" +
+                             std::to_string(event.button.button) + ")");
+            }
+            ApplyMouseGrab(true);
+        }
+
+        // Handle release separately (doesn't suppress event)
+        if (window_ && mouseGrabConfig_.enabled && mouseGrabConfig_.releaseOnEscape &&
+            event.type == SDL_EVENT_KEY_DOWN &&
+            event.key.key == releaseKey_ &&
+            !event.key.repeat) {
+            if (logger_) {
+                logger_->Info("SdlWindowService: Mouse grab released by escape key");
+            }
+            ApplyMouseGrab(false);
+        }
+
+        // Only publish event if it's not the grab-triggering click
+        if (!isGrabTrigger) {
+            PublishEvent(event);
+        }
 
         // Check for quit event
         if (event.type == SDL_EVENT_QUIT || event.type == SDL_EVENT_WINDOW_CLOSE_REQUESTED) {
@@ -307,9 +332,11 @@ void SdlWindowService::ConfigureMouseGrabBindings() {
     }
 
     if (logger_) {
-        logger_->Trace("SdlWindowService", "ConfigureMouseGrabBindings",
-                       "grabMouseButton=" + std::to_string(static_cast<int>(grabMouseButton_)) +
-                       ", releaseKey=" + std::to_string(static_cast<int>(releaseKey_)));
+        logger_->Info("SdlWindowService: Mouse grab config: enabled=" +
+                     std::string(mouseGrabConfig_.enabled ? "true" : "false") +
+                     ", grabOnClick=" + std::string(mouseGrabConfig_.grabOnClick ? "true" : "false") +
+                     ", grabMouseButton=" + std::to_string(static_cast<int>(grabMouseButton_)) +
+                     ", releaseKey=" + std::to_string(static_cast<int>(releaseKey_)));
     }
 }