diff --git a/demos/blocklyfactory/workspacefactory/index.html b/demos/blocklyfactory/workspacefactory/index.html
index 061749f59..0f3a0be24 100644
--- a/demos/blocklyfactory/workspacefactory/index.html
+++ b/demos/blocklyfactory/workspacefactory/index.html
@@ -30,23 +30,45 @@ goog.require('goog.ui.ColorPicker');
   <tr>
     <td>
       <p>
-        <input type="file" id="input_import" class="inputfile"></input>
-        <label for="input_import">Import</label>
+        <div class="dropdown">
+        <button id="button_import">Import</button>
+        <div id="dropdownDiv_import" class="dropdown-content">
+          <input type="file" id="input_importToolbox" class="inputfile"></input>
+          <label for="input_importToolbox">Toolbox</label>
+          <input type="file" id="input_importPreload" class="inputfile"></input>
+          <label for="input_importPreload">Workspace Blocks</label>
+        </div>
+        </div>
+
+        <div class="dropdown">
         <button id="button_export">Export</button>
-        <button id="button_print">Print</button>
-        <button id="button_clear">Clear</button>
+        <div id="dropdownDiv_export" class="dropdown-content">
+          <a id='dropdown_exportToolbox'>Toolbox</a>
+          <a id='dropdown_exportPreload'>Workspace Blocks</a>
+          <a id='dropdown_exportOptions'>Inject Options</a>
+          <a id='dropdown_exportAll'>All</a>
+        </div>
+        </div>
+
+        <button id="button_print">Print Toolbox</button>
+        <button id="button_clear">Clear Toolbox</button>
       </p>
     </td>
   </tr>
 </table>
 
 <section id="createDiv">
-  <p>Drag blocks into your toolbox:</p>
+  <p id="editHelpText">Drag blocks into your toolbox:</p>
+  <table id='workspaceTabs'>
+    <td id="tab_toolbox" class="tabon">Toolbox</td>
+    <td id="tab_preload" class="taboff">Workspace</td>
+  </table>
   <section id="toolbox_section">
     <div id="toolbox_blocks" class="content"></div>
     <div id='disable_div'></div>
   </section>
-  <aside id="category_section">
+
+  <aside id="toolbox_div">
     <table id="categoryTable">
       <td id="tab_help">Your categories will appear here</td>
     </table>
@@ -75,7 +97,9 @@ goog.require('goog.ui.ColorPicker');
     </div>
     </div>
 
-    <div class='dropdown'>
+  </aside>
+
+  <div class='dropdown'>
     <button id="button_editShadow">Edit Block</button>
     <div id="dropdownDiv_editShadowAdd" class="dropdown-content">
       <a id='dropdown_addShadow'>Add Shadow</a>
@@ -83,9 +107,42 @@ goog.require('goog.ui.ColorPicker');
     <div id="dropdownDiv_editShadowRemove" class="dropdown-content">
       <a id='dropdown_removeShadow'>Remove Shadow</a>
     </div>
-    </div>
+  </div>
 
+  <aside id='preload_div' style='display:none'>
+    <p>Configure the <a href="https://developers.google.com/blockly/guides/get-started/web">options</a> for your Blockly inject call.</p>
+    <button class="small" id="button_standardOptions">Standard Options</button>
+    <form id="workspace_options">
+      <input type="checkbox" id="option_collapse_checkbox" name="collapse">Collapsible Blocks<br>
+      <input type="checkbox" id="option_comments_checkbox" name="comments">Comments for Blocks<br>
+      <input type="checkbox" id="option_css_checkbox" name="css">Use Blockly CSS<br>
+      <input type="checkbox" id="option_disable_checkbox" name="disable">Disabled Blocks<br>
+      <input type="checkbox" id="option_grid_checkbox" name="grid">Use Grid<br>
+      <div id="grid_options" name="grid" style="display:none">
+        Spacing <input type="text" id="gridOption_spacing_text" name="spacing" value="0"><br>
+        Length <input type="text" id="gridOption_length_text" name="length" value="1"><br>
+        Color <input type="text" id="gridOption_colour_text" name="colour" value="#888"><br>
+        <input type="checkbox" id="gridOption_snap_checkbox" value="grid_snap_checkbox" name="snap">Snap<br>
+      </div>
+      Max Blocks <input type="text" id="option_maxBlocks_text" name="maxBlocks" value="Infinity"><br>
+      Path to Blockly Media <input type="text" id="option_media_text" name="media"><br>
+      <input type="checkbox" id="option_readOnly_checkbox" name="readOnly">Read Only<br>
+      <input type="checkbox" id="option_rtl_checkbox" name="rtl">Layout with RTL<br>
+      <input type="checkbox" id="option_scrollbars_checkbox" name="scrollbars">Scrollbars<br>
+      <input type="checkbox" id="option_sounds_checkbox" name="sounds">Sounds<br>
+      <input type="checkbox" id="option_trashcan_checkbox" name="trashcan">Trashcan<br>
+      <input type="checkbox" id="option_zoom_checkbox" name="zoom">Zoom<br>
+      <div id="zoom_options" name="zoom" style="display:none">
+        <input type="checkbox" id="zoomOption_controls_checkbox" name="controls">Zoom Controls<br>
+        <input type="checkbox" id="zoomOption_wheel_checkbox" name="wheel">Zoom Wheel<br>
+        Start Scale <input type="text" id="zoomOption_startScale_text" name="startScale" value="1.0"><br>
+        Max Scale <input type="text" id="zoomOption_maxScale_text" name="maxScale" value="3"><br>
+        Min Scale <input type="text" id="zoomOption_minScale_text" name="minScale" value="0.3"><br>
+        Scale Speed <input type="text" id="zoomOption_scaleSpeed_text" name="scaleSpeed" value="1.2"><br>
+      </div>
+    </form>
   </aside>
+
 </section>
 
 <aside id="previewDiv">
@@ -507,7 +564,8 @@ goog.require('goog.ui.ColorPicker');
     controller.removeElement();
   };
   var exportWrapper = function() {
-    controller.exportConfig();
+    document.getElementById('dropdownDiv_export').classList.toggle("show");
+    document.getElementById('dropdownDiv_import').classList.remove("show");
   };
   var printWrapper = function() {
     controller.printConfig();
@@ -557,11 +615,53 @@ goog.require('goog.ui.ColorPicker');
       }
     }
   };
-  var importWrapper = function(event) {
-    controller.importFile(event.target.files[0]);
+  var importWrapper = function() {
+    document.getElementById('dropdownDiv_import').classList.toggle("show");
+    document.getElementById('dropdownDiv_export').classList.remove("show");
   };
   var clearWrapper = function() {
-    controller.clear();
+    controller.clearToolbox();
+  };
+  var editToolboxWrapper = function() {
+    controller.setMode(FactoryController.MODE_TOOLBOX);
+  };
+  var editPreloadWrapper = function() {
+    controller.setMode(FactoryController.MODE_PRELOAD);
+  };
+  var importToolboxWrapper = function(e) {
+    controller.importFile(event.target.files[0], FactoryController.MODE_TOOLBOX);
+    document.getElementById('dropdownDiv_import').classList.remove("show");
+  };
+  var importPreloadWrapper = function(e) {
+    controller.importFile(event.target.files[0], FactoryController.MODE_PRELOAD);
+    document.getElementById('dropdownDiv_import').classList.remove("show");
+  };
+  var editToolboxWrapper = function() {
+    controller.setMode(FactoryController.MODE_TOOLBOX);
+  };
+  var editPreloadWrapper = function() {
+    controller.setMode(FactoryController.MODE_PRELOAD);
+  };
+  var exportToolboxWrapper = function() {
+    controller.exportFile(FactoryController.MODE_TOOLBOX);
+    document.getElementById('dropdownDiv_export').classList.remove("show");
+  }
+  var exportPreloadWrapper = function() {
+    controller.exportXmlFile(FactoryController.MODE_PRELOAD);
+    document.getElementById('dropdownDiv_export').classList.remove("show");
+  }
+  var exportOptionsWrapper = function() {
+    controller.exportOptionsFile();
+    document.getElementById('dropdownDiv_export').classList.remove("show");
+  }
+  var exportAllWrapper = function() {
+    controller.exportXmlFile(FactoryController.MODE_TOOLBOX);
+    controller.exportXmlFile(FactoryController.MODE_PRELOAD);
+    controller.exportOptionsFile();
+    document.getElementById('dropdownDiv_export').classList.remove("show");
+  }
+  var standardOptionsWrapper = function() {
+    controller.setStandardOptionsAndUpdate();
   };
 
   document.getElementById('button_add').addEventListener
@@ -574,6 +674,14 @@ goog.require('goog.ui.ColorPicker');
       ('click', separatorWrapper);
   document.getElementById('button_remove').addEventListener
       ('click', removeWrapper);
+  document.getElementById('dropdown_exportToolbox').addEventListener
+      ('click', exportToolboxWrapper);
+  document.getElementById('dropdown_exportPreload').addEventListener
+      ('click', exportPreloadWrapper);
+  document.getElementById('dropdown_exportOptions').addEventListener
+      ('click', exportOptionsWrapper);
+  document.getElementById('dropdown_exportAll').addEventListener
+      ('click', exportAllWrapper);
   document.getElementById('button_export').addEventListener
       ('click', exportWrapper);
   document.getElementById('button_print').addEventListener
@@ -588,14 +696,24 @@ goog.require('goog.ui.ColorPicker');
       ('click', editShadowWrapper);
   document.getElementById('dropdown_name').addEventListener
       ('click', nameWrapper);
-  document.getElementById('input_import').addEventListener
-      ('change', importWrapper);
+  document.getElementById('button_import').addEventListener
+      ('click', importWrapper);
+  document.getElementById('input_importToolbox').addEventListener
+      ('change', importToolboxWrapper);
+  document.getElementById('input_importPreload').addEventListener
+      ('change', importPreloadWrapper);
   document.getElementById('button_clear').addEventListener
       ('click', clearWrapper);
   document.getElementById('dropdown_addShadow').addEventListener
       ('click', shadowAddWrapper);
   document.getElementById('dropdown_removeShadow').addEventListener
       ('click', shadowRemoveWrapper);
+  document.getElementById('tab_toolbox').addEventListener
+      ('click', editToolboxWrapper);
+  document.getElementById('tab_preload').addEventListener
+      ('click', editPreloadWrapper);
+  document.getElementById('button_standardOptions').addEventListener
+      ('click', standardOptionsWrapper);
 
   // Use up and down arrow keys to move categories.
   // TODO(evd2014): When merge with next CL for editing preloaded blocks, make sure
@@ -635,6 +753,7 @@ goog.require('goog.ui.ColorPicker');
     // blocks when dragging them into workspace. Could cause problems if ever load
     // blocks into workspace directly without calling updatePreview.
     if (e.type == Blockly.Events.MOVE || e.type == Blockly.Events.DELETE) {
+      controller.saveStateFromWorkspace();
       controller.updatePreview();
     }
 
@@ -678,5 +797,51 @@ goog.require('goog.ui.ColorPicker');
     }
   });
 
+  // Add event listeners for checkboxes and text fields for configuring the Options object.
+
+  // Checking the grid checkbox displays grid options and updates the options
+  // object.
+  document.getElementById('option_grid_checkbox').addEventListener('change', function(e) {
+      document.getElementById('grid_options').style.display = document.getElementById('option_grid_checkbox').checked ? 'block' : 'none';
+      controller.generateNewOptions();
+  });
+
+  // Checking the grid checkbox displays zoom options and updates the options
+  // object.
+  document.getElementById('option_zoom_checkbox').addEventListener('change', function(e) {
+      document.getElementById('zoom_options').style.display = document.getElementById('option_zoom_checkbox').checked ? 'block' : 'none';
+      controller.generateNewOptions();
+  });
+
+  var optionListener = function() {
+    controller.generateNewOptions();
+  };
+
+  // Add event listeners to generate new options for each options input field.
+  document.getElementById('option_collapse_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_comments_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_css_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_disable_checkbox').addEventListener('change', optionListener);
+  document.getElementById('gridOption_spacing_text').addEventListener('change', optionListener);
+  document.getElementById('gridOption_length_text').addEventListener('change', optionListener);
+  document.getElementById('gridOption_colour_text').addEventListener('change', optionListener);
+  document.getElementById('gridOption_snap_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_maxBlocks_text').addEventListener('change', optionListener);
+  document.getElementById('option_media_text').addEventListener('change', optionListener);
+  document.getElementById('option_readOnly_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_rtl_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_scrollbars_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_sounds_checkbox').addEventListener('change', optionListener);
+  document.getElementById('option_trashcan_checkbox').addEventListener('change', optionListener);
+  document.getElementById('zoomOption_controls_checkbox').addEventListener('change', optionListener);
+  document.getElementById('zoomOption_wheel_checkbox').addEventListener('change', optionListener);
+  document.getElementById('zoomOption_startScale_text').addEventListener('change', optionListener);
+  document.getElementById('zoomOption_maxScale_text').addEventListener('change', optionListener);
+  document.getElementById('zoomOption_minScale_text').addEventListener('change', optionListener);
+  document.getElementById('zoomOption_scaleSpeed_text').addEventListener('change', optionListener);
+
+  // Check standard options and apply the changes to update the view.
+  controller.setStandardOptionsAndUpdate();
+
 </script>
 </html>
diff --git a/demos/blocklyfactory/workspacefactory/style.css b/demos/blocklyfactory/workspacefactory/style.css
index efa5897fa..507d8f331 100644
--- a/demos/blocklyfactory/workspacefactory/style.css
+++ b/demos/blocklyfactory/workspacefactory/style.css
@@ -21,6 +21,10 @@ aside {
   border-bottom: none;
 }
 
+#workspaceTabs>table {
+  float: right;
+}
+
 td.tabon {
   border-bottom-color: #ddd !important;
   background-color: #ddd;
@@ -63,31 +67,8 @@ button:hover:not(:disabled)>* {
   opacity: 1;
 }
 
-label {
-  border-radius: 4px;
-  border: 1px solid #ddd;
-  background-color: #eee;
-  color: #000;
-  font-size: large;
-  margin: 0 5px;
-  padding: 10px;
-}
-
-label:hover:not(:disabled) {
-  box-shadow: 2px 2px 5px #888;
-}
-
-label:disabled {
-  opacity: .6;
-}
-
-label>* {
-  opacity: .6;
-  vertical-align: text-bottom;
-}
-
-label:hover:not(:disabled)>* {
-  opacity: 1;
+button.small {
+  font-size: small;
 }
 
 table {
@@ -135,7 +116,11 @@ td {
   width: 30%;
 }
 
-#category_section {
+#toolbox_div {
+  width: 20%;
+}
+
+#preload_div {
   width: 20%;
 }
 
@@ -200,25 +185,32 @@ td {
 
 /* Dropdown Content (Hidden by Default) */
 .dropdown-content {
-    background-color: #f9f9f9;
-    box-shadow: 0px 8px 16px 0px rgba(0,0,0,.2);
-    display: none;
-    min-width: 170px;
-    opacity: 1;
-    position: absolute;
-    z-index: 1;
+  background-color: #f9f9f9;
+  box-shadow: 0px 8px 16px 0px rgba(0,0,0,.2);
+  display: none;
+  min-width: 170px;
+  opacity: 1;
+  position: absolute;
+  z-index: 1;
 }
 
 /* Links inside the dropdown */
 .dropdown-content a {
-    color: black;
-    display: block;
-    padding: 12px 16px;
-    text-decoration: none;
+  color: black;
+  display: block;
+  padding: 12px 16px;
+  text-decoration: none;
 }
 
-/* Change color of dropdown links on hover */
-.dropdown-content a:hover {
+.dropdown-content label {
+  color: black;
+  display: block;
+  padding: 12px 16px;
+  text-decoration: none;
+}
+
+/* Change color of dropdown links on hover. */
+.dropdown-content a:hover, .dropdown-content label:hover {
   background-color: #f1f1f1
 }
 
diff --git a/demos/blocklyfactory/workspacefactory/wfactory_controller.js b/demos/blocklyfactory/workspacefactory/wfactory_controller.js
index 994f0442e..5df156121 100644
--- a/demos/blocklyfactory/workspacefactory/wfactory_controller.js
+++ b/demos/blocklyfactory/workspacefactory/wfactory_controller.js
@@ -53,21 +53,31 @@ FactoryController = function(toolboxWorkspace, previewWorkspace) {
   this.view = new FactoryView();
   // Generates XML for categories.
   this.generator = new FactoryGenerator(this.model);
+  // Tracks which editing mode the user is in. Toolbox mode on start.
+  this.selectedMode = FactoryController.MODE_TOOLBOX;
 };
 
+// Toolbox editing mode. Changes the user makes to the workspace updates the
+// toolbox.
+FactoryController.MODE_TOOLBOX = 'toolbox';
+// Pre-loaded workspace editing mode. Changes the user makes to the workspace
+// udpates the pre-loaded blocks.
+FactoryController.MODE_PRELOAD = 'preload';
+
 /**
  * Currently prompts the user for a name, checking that it's valid (not used
  * before), and then creates a tab and switches to it.
  */
 FactoryController.prototype.addCategory = function() {
   // Check if it's the first category added.
-  var firstCategory = !this.model.hasToolbox();
+  var isFirstCategory = !this.model.hasElements();
   // Give the option to save blocks if their workspace is not empty and they
   // are creating their first category.
-  if (firstCategory && this.toolboxWorkspace.getAllBlocks().length > 0) {
+  if (isFirstCategory && this.toolboxWorkspace.getAllBlocks().length > 0) {
     var confirmCreate = confirm('Do you want to save your work in another '
         + 'category? If you don\'t, the blocks in your workspace will be ' +
         'deleted.');
+
     // Create a new category for current blocks.
     if (confirmCreate) {
       var name = prompt('Enter the name of the category for your ' +
@@ -75,21 +85,35 @@ FactoryController.prototype.addCategory = function() {
       if (!name) {  // Exit if cancelled.
         return;
       }
+
+      // Create the new category.
       this.createCategory(name, true);
-      this.model.setSelectedById(this.model.getCategoryIdByName(name));
+      // Set the new category as selected.
+      var id = this.model.getCategoryIdByName(name);
+      this.model.setSelectedById(id);
+      this.view.setCategoryTabSelection(id, true);
+      // Allow user to use the default options for injecting with categories.
+      this.allowToSetDefaultOptions();
     }
   }
+
   // After possibly creating a category, check again if it's the first category.
-  firstCategory = !this.model.hasToolbox();
+  isFirstCategory = !this.model.hasElements();
   // Get name from user.
   name = this.promptForNewCategoryName('Enter the name of your new category: ');
   if (!name) {  //Exit if cancelled.
     return;
   }
   // Create category.
-  this.createCategory(name, firstCategory);
+  this.createCategory(name, isFirstCategory);
   // Switch to category.
   this.switchElement(this.model.getCategoryIdByName(name));
+
+   // Allow the user to use the default options for injecting the workspace
+  // when there are categories if adding the first category.
+  if (isFirstCategory) {
+    this.allowToSetDefaultOptions();
+  }
   // Update preview.
   this.updatePreview();
 };
@@ -101,15 +125,15 @@ FactoryController.prototype.addCategory = function() {
  *
  * @param {!string} name Name of category being added.
  * @param {!string} id The ID of the category being added.
- * @param {boolean} firstCategory True if it's the first category created,
+ * @param {boolean} isFirstCategory True if it's the first category created,
  * false otherwise.
  */
-FactoryController.prototype.createCategory = function(name, firstCategory) {
+FactoryController.prototype.createCategory = function(name, isFirstCategory) {
   // Create empty category
   var category = new ListElement(ListElement.TYPE_CATEGORY, name);
   this.model.addElementToList(category);
   // Create new category.
-  var tab = this.view.addCategoryRow(name, category.id, firstCategory);
+  var tab = this.view.addCategoryRow(name, category.id, isFirstCategory);
   this.addClickToSwitch(tab, category.id);
 };
 
@@ -142,30 +166,44 @@ FactoryController.prototype.removeElement = function() {
   if (!this.model.getSelected()) {
     return;
   }
+
   // Check if user wants to remove current category.
   var check = confirm('Are you sure you want to delete the currently selected '
         + this.model.getSelected().type + '?');
   if (!check) { // If cancelled, exit.
     return;
   }
+
   var selectedId = this.model.getSelectedId();
   var selectedIndex = this.model.getIndexByElementId(selectedId);
   // Delete element visually.
   this.view.deleteElementRow(selectedId, selectedIndex);
   // Delete element in model.
   this.model.deleteElementFromList(selectedIndex);
+
   // Find next logical element to switch to.
   var next = this.model.getElementByIndex(selectedIndex);
-  if (!next && this.model.hasToolbox()) {
+  if (!next && this.model.hasElements()) {
     next = this.model.getElementByIndex(selectedIndex - 1);
   }
   var nextId = next ? next.id : null;
+
   // Open next element.
   this.clearAndLoadElement(nextId);
+
+  // If no element to switch to, display message, clear the workspace, and
+  // set a default selected element not in toolbox list in the model.
   if (!nextId) {
     alert('You currently have no categories or separators. All your blocks' +
         ' will be displayed in a single flyout.');
+    this.toolboxWorkspace.clear();
+    this.toolboxWorkspace.clearUndo();
+    this.model.createDefaultSelectedIfEmpty();
+    // Allow the user to use the default options for injecting the workspace
+    // when there are no categories.
+    this.allowToSetDefaultOptions();
   }
+
   // Update preview.
   this.updatePreview();
 };
@@ -226,28 +264,21 @@ FactoryController.prototype.clearAndLoadElement = function(id) {
     this.view.disableWorkspace(false);
   }
 
-  // Set next category.
-  this.model.setSelectedById(id);
-
-  // Clear workspace.
-  this.toolboxWorkspace.clear();
-  this.toolboxWorkspace.clearUndo();
-
-  // Loads next category if switching to an element.
+  // If switching to another category, set category selection in the model and
+  // view.
   if (id != null) {
-    this.view.setCategoryTabSelection(id, true);
-    Blockly.Xml.domToWorkspace(this.model.getSelectedXml(),
-        this.toolboxWorkspace);
-    // Disable workspace if switching to a separator.
-    if (this.model.getSelected().type == ListElement.TYPE_SEPARATOR) {
-      this.view.disableWorkspace(true);
-    }
-  }
+    // Set next category.
+    this.model.setSelectedById(id);
 
-  // Mark all shadow blocks laoded and order blocks as if shown in a flyout.
-  this.view.markShadowBlocks(this.model.getShadowBlocksInWorkspace
-        (toolboxWorkspace.getAllBlocks()));
-  this.toolboxWorkspace.cleanUp_();
+    // Clears workspace and loads next category.
+    this.clearAndLoadXml_(this.model.getSelectedXml());
+
+    // Selects the next tab.
+    this.view.setCategoryTabSelection(id, true);
+
+    // Order blocks as if shown in the flyout.
+    this.toolboxWorkspace.cleanUp_();
+  }
 
   // Update category editing buttons.
   this.view.updateState(this.model.getIndexByElementId
@@ -255,15 +286,34 @@ FactoryController.prototype.clearAndLoadElement = function(id) {
 };
 
 /**
- * Tied to "Export Config" button. Gets a file name from the user and downloads
+ * Tied to "Export" button. Gets a file name from the user and downloads
  * the corresponding configuration xml to that file.
+ *
+ * @param {!string} exportMode The type of file to export
+ *    (FactoryController.MODE_TOOLBOX for the toolbox configuration, and
+ *    FactoryController.MODE_PRELOAD for the pre-loaded workspace configuration)
  */
-FactoryController.prototype.exportConfig = function() {
+FactoryController.prototype.exportXmlFile = function(exportMode) {
   // Generate XML.
-  var configXml = Blockly.Xml.domToPrettyText
-      (this.generator.generateConfigXml(this.toolboxWorkspace));
+  if (exportMode == FactoryController.MODE_TOOLBOX) {
+    // Export the toolbox XML.
+
+    var configXml = Blockly.Xml.domToPrettyText
+        (this.generator.generateToolboxXml());
+  } else if (exportMode == FactoryController.MODE_PRELOAD) {
+    // Export the pre-loaded block XML.
+
+    var configXml = Blockly.Xml.domToPrettyText
+        (this.generator.generateWorkspaceXml());
+  } else {
+    // Unknown mode. Throw error.
+    throw new Error ("Unknown export mode: " + exportMode);
+  }
+
   // Get file name.
-  var fileName = prompt("File Name: ");
+  var fileName = prompt('File Name for ' + (exportMode ==
+      FactoryController.MODE_TOOLBOX ? 'toolbox XML: ' :
+      'pre-loaded workspace XML: '));
   if (!fileName) { // If cancelled
     return;
   }
@@ -273,12 +323,33 @@ FactoryController.prototype.exportConfig = function() {
  };
 
 /**
- * Tied to "Print Config" button. Mainly used for debugging purposes. Prints
+ * Export the options object to be used for the Blockly inject call. Gets a
+ * file name from the user and downloads the options object to that file.
+ */
+FactoryController.prototype.exportOptionsFile = function() {
+  var fileName = prompt('File Name for options object for injecting: ');
+  if (!fileName) {  // If cancelled.
+    return;
+  }
+  // Generate new options to remove toolbox XML from options object (if
+  // necessary).
+  this.generateNewOptions();
+  // TODO(evd2014): Use Regex to prettify JSON generated.
+  var data = new Blob([JSON.stringify(this.model.options)],
+      {type: 'text/plain'});
+  this.view.createAndDownloadFile(fileName, data);
+};
+
+/**
+ * Tied to "Print" button. Mainly used for debugging purposes. Prints
  * the configuration XML to the console.
  */
 FactoryController.prototype.printConfig = function() {
+  // Capture any changes made by user before generating XML.
+  this.saveStateFromWorkspace();
+  // Print XML.
   window.console.log(Blockly.Xml.domToPrettyText
-      (this.generator.generateConfigXml(this.toolboxWorkspace)));
+      (this.generator.generateToolboxXml()));
 };
 
 /**
@@ -287,33 +358,71 @@ FactoryController.prototype.printConfig = function() {
  * Blockly with reinjectPreview, otherwise just updates without reinjecting.
  * Called whenever a list element is created, removed, or modified and when
  * Blockly move and delete events are fired. Do not call on create events
- * or disabling will cause the user to "drop" their current blocks.
+ * or disabling will cause the user to "drop" their current blocks. Make sure
+ * that no changes have been made to the workspace since updating the model
+ * (if this might be the case, call saveStateFromWorkspace).
  */
 FactoryController.prototype.updatePreview = function() {
   // Disable events to stop updatePreview from recursively calling itself
   // through event handlers.
   Blockly.Events.disable();
-  var tree = Blockly.Options.parseToolboxTree
-      (this.generator.generateConfigXml(this.toolboxWorkspace));
-  // No categories, creates a simple flyout.
-  if (tree.getElementsByTagName('category').length == 0) {
-    if (this.previewWorkspace.toolbox_) {
-      this.reinjectPreview(tree); // Switch to simple flyout, more expensive.
+
+  if (this.selectedMode == FactoryController.MODE_TOOLBOX) {
+    // If currently editing the toolbox.
+    // Get toolbox XML.
+    var tree = Blockly.Options.parseToolboxTree
+        (this.generator.generateToolboxXml());
+    // No categories, creates a simple flyout.
+    if (tree.getElementsByTagName('category').length == 0) {
+      // No categories, creates a simple flyout.
+      if (this.previewWorkspace.toolbox_) {
+        this.reinjectPreview(tree); // Switch to simple flyout, more expensive.
+      } else {
+        this.previewWorkspace.flyout_.show(tree.childNodes);
+      }
+
     } else {
-      this.previewWorkspace.flyout_.show(tree.childNodes);
-    }
-  // Uses categories, creates a toolbox.
-  } else {
-    if (!previewWorkspace.toolbox_) {
-      this.reinjectPreview(tree); // Create a toolbox, more expensive.
-    } else {
-      this.previewWorkspace.toolbox_.populate_(tree);
+      // Uses categories, creates a toolbox.
+
+      if (!previewWorkspace.toolbox_) {
+        this.reinjectPreview(tree); // Create a toolbox, more expensive.
+      } else {
+        this.previewWorkspace.toolbox_.populate_(tree);
+      }
     }
+
+    // Update pre-loaded blocks in the preview workspace to make sure that
+    // blocks don't get cleared when updating preview from event listeners while
+    // switching modes.
+    this.previewWorkspace.clear();
+    Blockly.Xml.domToWorkspace(this.generator.generateWorkspaceXml(),
+        this.previewWorkspace);
+  } else if (this.selectedMode == FactoryController.MODE_PRELOAD){
+    // If currently editing the pre-loaded workspace.
+    this.previewWorkspace.clear();
+    Blockly.Xml.domToWorkspace(this.generator.generateWorkspaceXml(),
+        this.previewWorkspace);
   }
+
   // Reenable events.
   Blockly.Events.enable();
 };
 
+/**
+ * Saves the state from the workspace depending on the current mode. Should
+ * be called after making changes to the workspace.
+ */
+FactoryController.prototype.saveStateFromWorkspace = function() {
+  if (this.selectedMode == FactoryController.MODE_TOOLBOX) {
+    // If currently editing the toolbox.
+    this.model.getSelected().saveFromWorkspace(toolboxWorkspace);
+  } else if (this.selectedMode == FactoryController.MODE_PRELOAD) {
+    // If currently editing the pre-loaded workspace.
+    this.model.savePreloadXml
+        (Blockly.Xml.workspaceToDom(this.toolboxWorkspace));
+  }
+};
+
 /**
  * Used to completely reinject the preview workspace. This should be used only
  * when switching from simple flyout to categories, or categories to simple
@@ -324,19 +433,10 @@ FactoryController.prototype.updatePreview = function() {
  */
 FactoryController.prototype.reinjectPreview = function(tree) {
   this.previewWorkspace.dispose();
-  previewToolbox = Blockly.Xml.domToPrettyText(tree);
-  this.previewWorkspace = Blockly.inject('preview_blocks',
-    {grid:
-      {spacing: 25,
-       length: 3,
-       colour: '#ccc',
-       snap: true},
-     media: '../../../media/',
-     toolbox: previewToolbox,
-     zoom:
-       {controls: true,
-        wheel: true}
-    });
+  this.model.setOptionsAttribute('toolbox', Blockly.Xml.domToPrettyText(tree));
+  this.previewWorkspace = Blockly.inject('preview_blocks', this.model.options);
+  Blockly.Xml.domToWorkspace(this.generator.generateWorkspaceXml(),
+      this.previewWorkspace);
 };
 
 /**
@@ -345,9 +445,8 @@ FactoryController.prototype.reinjectPreview = function(tree) {
  * currently in use, exits if user presses cancel.
  */
 FactoryController.prototype.changeCategoryName = function() {
-  // Return if no category selected or element a separator.
-  if (!this.model.getSelected() ||
-      this.model.getSelected().type == ListElement.TYPE_SEPARATOR) {
+  // Return if a category is not selected.
+  if (this.model.getSelected().type != ListElement.TYPE_CATEGORY) {
     return;
   }
   // Get new name from user.
@@ -415,9 +514,8 @@ FactoryController.prototype.moveElementToIndex = function(element, newIndex,
  * a valid CSS string.
  */
 FactoryController.prototype.changeSelectedCategoryColor = function(color) {
-  // Return if no category selected or element a separator.
-  if (!this.model.getSelected() ||
-      this.model.getSelected().type == ListElement.TYPE_SEPARATOR) {
+  // Return if category is not selected.
+  if (this.model.getSelected().type != ListElement.TYPE_CATEGORY) {
     return;
   }
   // Change color of selected category.
@@ -461,17 +559,15 @@ FactoryController.prototype.loadCategory = function() {
     return;
   }
 
+  var isFirstCategory = !this.model.hasElements();
   // Copy the standard category in the model.
   var copy = standardCategory.copy();
 
-  // Add the copy in the view.
-  var tab = this.view.addCategoryRow(copy.name, copy.id,
-      !this.model.hasToolbox());
-
   // Add it to the model.
   this.model.addElementToList(copy);
 
-  // Update the view.
+  // Update the copy in the view.
+  var tab = this.view.addCategoryRow(copy.name, copy.id, isFirstCategory);
   this.addClickToSwitch(tab, copy.id);
   // Color the category tab in the view.
   if (copy.color) {
@@ -480,7 +576,14 @@ FactoryController.prototype.loadCategory = function() {
   // Switch to loaded category.
   this.switchElement(copy.id);
   // Convert actual shadow blocks to user-generated shadow blocks.
-  this.convertShadowBlocks();
+  this.convertShadowBlocks_();
+  // Save state from workspace before updating preview.
+  this.saveStateFromWorkspace();
+  if (isFirstCategory) {
+    // Allow the user to use the default options for injecting the workspace
+    // when there are categories.
+    this.allowToSetDefaultOptions();
+  }
   // Update preview.
   this.updatePreview();
 };
@@ -509,7 +612,7 @@ FactoryController.prototype.isStandardCategoryName = function(name) {
  */
 FactoryController.prototype.addSeparator = function() {
   // Don't allow the user to add a separator if a category has not been created.
-  if (!this.model.hasToolbox()) {
+  if (!this.model.hasElements()) {
     alert('Add a category before adding a separator.');
     return;
   }
@@ -526,47 +629,64 @@ FactoryController.prototype.addSeparator = function() {
 
 /**
  * Connected to the import button. Given the file path inputted by the user
- * from file input, this function loads that toolbox XML to the workspace,
- * creating category and separator tabs as necessary. This allows the user
- * to be able to edit toolboxes given their XML form. Catches errors from
+ * from file input, if the import mode is for the toolbox, this function loads
+ * that toolbox XML to the workspace, creating category and separator tabs as
+ * necessary. If the import mode is for pre-loaded blocks in the workspace,
+ * this function loads that XML to the workspace to be edited further. This
+ * function switches mode to whatever the import mode is. Catches errors from
  * file reading and prints an error message alerting the user.
  *
  * @param {string} file The path for the file to be imported into the workspace.
  * Should contain valid toolbox XML.
+ * @param {!string} importMode The mode corresponding to the type of file the
+ *    user is importing (FactoryController.MODE_TOOLBOX or
+ *    FactoryController.MODE_PRELOAD).
  */
-FactoryController.prototype.importFile = function(file) {
+FactoryController.prototype.importFile = function(file, importMode) {
   // Exit if cancelled.
   if (!file) {
     return;
   }
 
   var reader = new FileReader();
+
   // To be executed when the reader has read the file.
   reader.onload = function() {
     // Try to parse XML from file and load it into toolbox editing area.
     // Print error message if fail.
     try {
       var tree = Blockly.Xml.textToDom(reader.result);
-      controller.importFromTree_(tree);
-    } catch(e) {
-      alert('Cannot load XML from file.');
-      console.log(e);
-    }
+      if (importMode == FactoryController.MODE_TOOLBOX) {
+        // Switch mode and import toolbox XML.
+        controller.setMode(FactoryController.MODE_TOOLBOX);
+        controller.importToolboxFromTree_(tree);
+      } else if (importMode == FactoryController.MODE_PRELOAD) {
+        // Switch mode and import pre-loaded workspace XML.
+        controller.setMode(FactoryController.MODE_PRELOAD);
+        controller.importPreloadFromTree_(tree);
+      } else {
+        // Throw error if invalid mode.
+        throw new Error("Unknown import mode: " + importMode);
+      }
+     } catch(e) {
+       alert('Cannot load XML from file.');
+       console.log(e);
+     }
   }
 
-  // Read the file.
+  // Read the file asynchronously.
   reader.readAsText(file);
 };
 
 /**
  * Given a XML DOM tree, loads it into the toolbox editing area so that the
  * user can continue editing their work. Assumes that tree is in valid toolbox
- * XML format.
+ * XML format. Assumes that the mode is MODE_TOOLBOX.
  * @private
  *
  * @param {!Element} tree XML tree to be loaded to toolbox editing area.
  */
-FactoryController.prototype.importFromTree_ = function(tree) {
+FactoryController.prototype.importToolboxFromTree_ = function(tree) {
   // Clear current editing area.
   this.model.clearToolboxList();
   this.view.clearToolboxTabs();
@@ -582,9 +702,11 @@ FactoryController.prototype.importFromTree_ = function(tree) {
 
     // Add message to denote empty category.
     this.view.addEmptyCategoryMessage();
+
   } else {
     // Categories/separators present.
     for (var i = 0, item; item = tree.children[i]; i++) {
+
       if (item.tagName == 'category') {
         // If the element is a category, create a new category and switch to it.
         this.createCategory(item.getAttribute('name'), false);
@@ -623,20 +745,79 @@ FactoryController.prototype.importFromTree_ = function(tree) {
   }
   this.view.updateState(this.model.getIndexByElementId
       (this.model.getSelectedId()), this.model.getSelected());
+
+  this.saveStateFromWorkspace();
+
+  this.saveStateFromWorkspace();
+  // Allow the user to set default configuration options for a single flyout
+  // or multiple categories.
+  this.allowToSetDefaultOptions();
+
   this.updatePreview();
 };
 
 /**
- * Clears the toolbox editing area completely, deleting all categories and all
- * blocks in the model and view.
+ * Given a XML DOM tree, loads it into the pre-loaded workspace editing area.
+ * Assumes that tree is in valid XML format and that the selected mode is
+ * MODE_PRELOAD.
+ *
+ * @param {!Element} tree XML tree to be loaded to pre-loaded block editing
+ *    area.
  */
-FactoryController.prototype.clear = function() {
+FactoryController.prototype.importPreloadFromTree_ = function(tree) {
+  this.clearAndLoadXml_(tree);
+  this.model.savePreloadXml(tree);
+  this.updatePreview();
+}
+
+/**
+ * Given a XML DOM tree, loads it into the pre-loaded workspace editing area.
+ * Assumes that tree is in valid XML format and that the selected mode is
+ * MODE_PRELOAD.
+ *
+ * @param {!Element} tree XML tree to be loaded to pre-loaded block editing
+ *    area.
+ */
+FactoryController.prototype.importPreloadFromTree_ = function(tree) {
+  this.clearAndLoadXml_(tree);
+  this.model.savePreloadXml(tree);
+  this.saveStateFromWorkspace();
+  this.updatePreview();
+}
+
+/**
+ * Given a XML DOM tree, loads it into the pre-loaded workspace editing area.
+ * Assumes that tree is in valid XML format and that the selected mode is
+ * MODE_PRELOAD.
+ *
+ * @param {!Element} tree XML tree to be loaded to pre-loaded block editing
+ *    area.
+ */
+FactoryController.prototype.importPreloadFromTree_ = function(tree) {
+  this.clearAndLoadXml_(tree);
+  this.model.savePreloadXml(tree);
+  this.saveStateFromWorkspace();
+  this.updatePreview();
+}
+
+/**
+ * Clears the toolbox editing area completely, deleting all categories and all
+ * blocks in the model and view. Sets the mode to toolbox mode. Tied to "Clear
+ * Toolbox" button.
+ */
+FactoryController.prototype.clearToolbox = function() {
+  this.setMode(FactoryController.MODE_TOOLBOX);
+  var hasCategories = this.model.hasElements();
   this.model.clearToolboxList();
   this.view.clearToolboxTabs();
   this.view.addEmptyCategoryMessage();
   this.view.updateState(-1, null);
   this.toolboxWorkspace.clear();
   this.toolboxWorkspace.clearUndo();
+  this.saveStateFromWorkspace();
+  if (hasCategories) {
+    this.allowToSetDefaultOptions();
+  }
   this.updatePreview();
 };
 
@@ -655,6 +836,7 @@ FactoryController.prototype.addShadow = function() {
   }
   this.view.markShadowBlock(Blockly.selected);
   this.model.addShadowBlock(Blockly.selected.id);
+  this.saveStateFromWorkspace();
   this.updatePreview();
 };
 
@@ -671,6 +853,7 @@ FactoryController.prototype.removeShadow = function() {
   }
   this.model.removeShadowBlock(Blockly.selected.id);
   this.view.unmarkShadowBlock(Blockly.selected);
+  this.saveStateFromWorkspace();
   this.updatePreview();
 };
 
@@ -702,3 +885,167 @@ FactoryController.prototype.convertShadowBlocks = function() {
     }
   }
 };
+
+/**
+ * Sets the currently selected mode that determines what the toolbox workspace
+ * is being used to edit. Updates the view and then saves and loads XML
+ * to and from the toolbox and updates the help text.
+ *
+ * @param {!string} tab The type of tab being switched to
+ *    (FactoryController.MODE_TOOLBOX or FactoryController.MODE_PRELOAD).
+ */
+FactoryController.prototype.setMode = function(mode) {
+  // No work to change mode that's currently set.
+  if (this.selectedMode == mode) {
+    return;
+  }
+
+  // No work to change mode that's currently set.
+  if (this.selectedMode == mode) {
+    return;
+  }
+
+  // Set tab selection and display appropriate tab.
+  this.view.setModeSelection(mode);
+
+  // Update selected tab.
+  this.selectedMode = mode;
+
+  // Update help text above workspace.
+  this.view.updateHelpText(mode);
+
+  if (mode == FactoryController.MODE_TOOLBOX) {
+    // Open the toolbox editing space.
+    document.getElementById('editHelpText').textContent =
+        'Drag blocks into your toolbox:';
+    this.model.savePreloadXml
+        (Blockly.Xml.workspaceToDom(this.toolboxWorkspace));
+    this.clearAndLoadXml_(this.model.getSelectedXml());
+    this.view.disableWorkspace(this.view.shouldDisableWorkspace
+        (this.model.getSelected()));
+  } else {
+    // Open the pre-loaded workspace editing space.
+    document.getElementById('editHelpText').textContent =
+        'Drag blocks into your pre-loaded workspace:';
+    if (this.model.getSelected()) {
+      this.model.getSelected().saveFromWorkspace(this.toolboxWorkspace);
+    }
+    this.clearAndLoadXml_(this.model.getPreloadXml());
+    this.view.disableWorkspace(false);
+  }
+};
+
+/**
+ * Clears the toolbox workspace and loads XML to it, marking shadow blocks
+ * as necessary.
+ * @private
+ *
+ * @param {!Element} xml The XML to be loaded to the workspace.
+ */
+FactoryController.prototype.clearAndLoadXml_ = function(xml) {
+  this.toolboxWorkspace.clear();
+  this.toolboxWorkspace.clearUndo();
+  Blockly.Xml.domToWorkspace(xml, this.toolboxWorkspace);
+  this.view.markShadowBlocks(this.model.getShadowBlocksInWorkspace
+      (this.toolboxWorkspace.getAllBlocks()));
+};
+
+/**
+ * Sets the standard default options for the options object and updates
+ * the preview workspace. The default values depends on if categories are
+ * present.
+ */
+FactoryController.prototype.setStandardOptionsAndUpdate = function() {
+  this.view.setBaseOptions();
+  this.view.setCategoryOptions(this.model.hasElements());
+  this.generateNewOptions();
+ };
+
+/**
+ * Asks the user if they want to use default configuration options specific
+ * to categories or a single flyout of blocks. If desired, makes the necessary
+ * changes to the options object depending on if there are categories and then
+ * updates the preview workspace. Only updates category/flyout specific
+ * options, not the base default options that are set regardless of if
+ * categories or a single flyout are used.
+ */
+FactoryController.prototype.allowToSetDefaultOptions = function() {
+  if (!this.model.hasElements() && !confirm('Do you want to use the default ' +
+      'workspace configuration options for injecting a workspace without ' +
+      'categories?')) {
+    return;
+  } else if (this.model.hasElements() && !confirm('Do you want to use the ' +
+      'default workspace configuration options for injecting a workspace ' +
+      'with categories?')) {
+    return;
+  }
+  this.view.setCategoryOptions(this.model.hasElements());
+  this.generateNewOptions();
+};
+
+/**
+ * Generates a new options object for injecting a Blockly workspace based
+ * on user input. Should be called every time a change has been made to
+ * an input field. Updates the model and reinjects the preview workspace.
+ */
+FactoryController.prototype.generateNewOptions = function() {
+  var optionsObj = new Object(null);
+
+  // Add all standard options to the options object.
+  // Use parse int to get numbers from value inputs.
+  optionsObj['collapse'] =
+      document.getElementById('option_collapse_checkbox').checked;
+  optionsObj['comments'] =
+      document.getElementById('option_comments_checkbox').checked;
+  optionsObj['css'] = document.getElementById('option_css_checkbox').checked;
+  optionsObj['disable'] =
+      document.getElementById('option_disable_checkbox').checked;
+  optionsObj['maxBlocks'] =
+      parseInt(document.getElementById('option_maxBlocks_text').value);
+  optionsObj['media'] = document.getElementById('option_media_text').value;
+  optionsObj['readOnly'] =
+      document.getElementById('option_readOnly_checkbox').checked;
+  optionsObj['rtl'] = document.getElementById('option_rtl_checkbox').checked;
+  optionsObj['scrollbars'] =
+      document.getElementById('option_scrollbars_checkbox').checked;
+  optionsObj['sounds'] =
+      document.getElementById('option_sounds_checkbox').checked;
+  optionsObj['trashcan'] =
+      document.getElementById('option_trashcan_checkbox').checked;
+
+  // If using a grid, add all grid options.
+  if (document.getElementById('option_grid_checkbox').checked) {
+    var grid = new Object(null);
+    grid['spacing'] =
+        parseInt(document.getElementById('gridOption_spacing_text').value);
+    grid['length'] =
+        parseInt(document.getElementById('gridOption_length_text').value);
+    grid['colour'] = document.getElementById('gridOption_colour_text').value;
+    grid['snap'] = document.getElementById('gridOption_snap_checkbox').checked;
+    optionsObj['grid'] = grid;
+  }
+
+  // If using zoom, add all zoom options.
+  if (document.getElementById('option_zoom_checkbox').checked) {
+    var zoom = new Object(null);
+    zoom['controls'] =
+        document.getElementById('zoomOption_controls_checkbox').checked;
+    zoom['wheel'] =
+        document.getElementById('zoomOption_wheel_checkbox').checked;
+    zoom['startScale'] =
+        parseInt(document.getElementById('zoomOption_startScale_text').value);
+    zoom['maxScale'] =
+        parseInt(document.getElementById('zoomOption_maxScale_text').value);
+    zoom['minScale'] =
+        parseInt(document.getElementById('zoomOption_minScale_text').value);
+    zoom['scaleSpeed'] =
+        parseInt(document.getElementById('zoomOption_scaleSpeed_text').value);
+    optionsObj['zoom'] = zoom;
+  }
+
+  this.model.setOptions(optionsObj);
+
+  this.reinjectPreview(Blockly.Options.parseToolboxTree
+      (this.generator.generateToolboxXml()));
+};
+
diff --git a/demos/blocklyfactory/workspacefactory/wfactory_generator.js b/demos/blocklyfactory/workspacefactory/wfactory_generator.js
index 2de701e80..b4db0831b 100644
--- a/demos/blocklyfactory/workspacefactory/wfactory_generator.js
+++ b/demos/blocklyfactory/workspacefactory/wfactory_generator.js
@@ -49,23 +49,24 @@ FactoryGenerator = function(model) {
 /**
  * Generates the xml for the toolbox or flyout with information from
  * toolboxWorkspace and the model. Uses the hiddenWorkspace to generate XML.
+ * Save state of workspace in model (saveFromWorkspace) before calling if
+ * changes might have been made to the selected category.
  *
  * @param {!Blockly.workspace} toolboxWorkspace Toolbox editing workspace where
  * blocks are added by user to be part of the toolbox.
  * @return {!Element} XML element representing toolbox or flyout corresponding
  * to toolbox workspace.
  */
-FactoryGenerator.prototype.generateConfigXml = function(toolboxWorkspace) {
+FactoryGenerator.prototype.generateToolboxXml = function() {
   // Create DOM for XML.
   var xmlDom = goog.dom.createDom('xml',
       {
         'id' : 'toolbox',
         'style' : 'display:none'
       });
-  if (!this.model.hasToolbox()) {
+  if (!this.model.hasElements()) {
     // Toolbox has no categories. Use XML directly from workspace.
-    this.loadToHiddenWorkspaceAndSave_
-        (Blockly.Xml.workspaceToDom(toolboxWorkspace), xmlDom);
+    this.loadToHiddenWorkspaceAndSave_(this.model.getSelectedXml(), xmlDom);
   } else {
     // Toolbox has categories.
     // Assert that selected != null
@@ -73,8 +74,6 @@ FactoryGenerator.prototype.generateConfigXml = function(toolboxWorkspace) {
       throw new Error('Selected is null when the toolbox is empty.');
     }
 
-    // Capture any changes made by user before generating XML.
-    this.model.getSelected().saveFromWorkspace(toolboxWorkspace);
     var xml = this.model.getSelectedXml();
     var toolboxList = this.model.getToolboxList();
 
@@ -87,7 +86,7 @@ FactoryGenerator.prototype.generateConfigXml = function(toolboxWorkspace) {
       if (element.type == ListElement.TYPE_SEPARATOR) {
         // If the next element is a separator.
         var nextElement = goog.dom.createDom('sep');
-      } else {
+      } else if (element.type == ListElement.TYPE_CATEGORY) {
         // If the next element is a category.
         var nextElement = goog.dom.createDom('category');
         nextElement.setAttribute('name', element.name);
@@ -109,6 +108,27 @@ FactoryGenerator.prototype.generateConfigXml = function(toolboxWorkspace) {
   return xmlDom;
  };
 
+
+ /**
+  * Generates XML for the workspace (different from generateConfigXml in that
+  * it includes XY and ID attributes). Uses a workspace and converts user
+  * generated shadow blocks to actual shadow blocks.
+  *
+  */
+FactoryGenerator.prototype.generateWorkspaceXml = function() {
+  // Load workspace XML to hidden workspace with user-generated shadow blocks
+  // as actual shadow blocks.
+  this.hiddenWorkspace.clear();
+  Blockly.Xml.domToWorkspace(this.model.getPreloadXml(), this.hiddenWorkspace);
+  this.setShadowBlocksInHiddenWorkspace_();
+
+  // Generate XML and set attributes.
+  var generatedXml = Blockly.Xml.workspaceToDom(this.hiddenWorkspace);
+  generatedXml.setAttribute('id', 'preload_blocks');
+  generatedXml.setAttribute('style', 'display:none');
+  return generatedXml;
+ }
+
 /**
  * Load the given XML to the hidden workspace, set any user-generated shadow
  * blocks to be actual shadow blocks, then append the XML from the workspace
diff --git a/demos/blocklyfactory/workspacefactory/wfactory_model.js b/demos/blocklyfactory/workspacefactory/wfactory_model.js
index 3d8585c9a..02fd30ce5 100644
--- a/demos/blocklyfactory/workspacefactory/wfactory_model.js
+++ b/demos/blocklyfactory/workspacefactory/wfactory_model.js
@@ -35,21 +35,26 @@
  * @constructor
  */
 FactoryModel = function() {
-  // Ordered list of ListElement objects.
+  // Ordered list of ListElement objects. Empty if there is a single flyout.
   this.toolboxList = [];
+  // ListElement for blocks in a single flyout. Null if a toolbox exists.
+  this.flyout = new ListElement(ListElement.TYPE_FLYOUT);
   // Array of block IDs for all user created shadow blocks.
   this.shadowBlocks = [];
-  // String name of current selected list element, null if no list elements.
-  this.selected = null;
+  // Reference to currently selected ListElement. Stored in this.toolboxList if
+  // there are categories, or in this.flyout if blocks are displayed in a single
+  // flyout.
+  this.selected = this.flyout;
   // Boolean for if a Variable category has been added.
   this.hasVariableCategory = false;
   // Boolean for if a Procedure category has been added.
   this.hasProcedureCategory = false;
+  // XML to be pre-loaded to workspace. Empty on default;
+  this.preloadXml = Blockly.Xml.textToDom('<xml></xml>');
+  // Options object to be configured for Blockly inject call.
+  this.options = new Object(null);
 };
 
-// String name of current selected list element, null if no list elements.
-FactoryModel.prototype.selected = null;
-
 /**
  * Given a name, determines if it is the name of a category already present.
  * Used when getting a valid category name from the user.
@@ -91,9 +96,9 @@ FactoryModel.prototype.hasProcedures = function() {
  * Determines if the user has any elements in the toolbox. Uses the length of
  * toolboxList.
  *
- * @return {boolean} True if categories exist, false otherwise.
+ * @return {boolean} True if elements exist, false otherwise.
  */
-FactoryModel.prototype.hasToolbox = function() {
+FactoryModel.prototype.hasElements = function() {
   return this.toolboxList.length > 0;
 };
 
@@ -110,6 +115,8 @@ FactoryModel.prototype.addElementToList = function(element) {
       this.hasProcedureCategory;
   // Add element to toolboxList.
   this.toolboxList.push(element);
+  // Empty single flyout.
+  this.flyout = null;
 };
 
 /**
@@ -131,6 +138,20 @@ FactoryModel.prototype.deleteElementFromList = function(index) {
   this.toolboxList.splice(index, 1);
 };
 
+/**
+ * Sets selected to be an empty category not in toolbox list if toolbox list
+ * is empty. Should be called when removing the last element from toolbox list.
+ * If the toolbox list is empty, selected stores the XML for the single flyout
+ * of blocks displayed.
+ *
+ */
+FactoryModel.prototype.createDefaultSelectedIfEmpty = function() {
+  if (this.toolboxList.length == 0) {
+    this.flyout = new ListElement(ListElement.TYPE_FLYOUT);
+    this.selected = this.flyout;
+  }
+}
+
 /**
  * Moves a list element to a certain position in toolboxList by removing it
  * and then inserting it at the correct index. Checks that indices are in
@@ -364,6 +385,43 @@ FactoryModel.prototype.addCustomTag = function(category, tag) {
   }
 };
 
+/**
+ * Have basic pre-loaded workspace working
+ * Saves XML as XML to be pre-loaded into the workspace.
+ *
+ * @param {!Element} xml The XML to be saved.
+ */
+FactoryModel.prototype.savePreloadXml = function(xml) {
+  this.preloadXml = xml
+};
+
+/**
+ * Gets the XML to be pre-loaded into the workspace.
+ *
+ * @return {!Element} The XML for the workspace.
+ */
+FactoryModel.prototype.getPreloadXml = function() {
+  return this.preloadXml;
+};
+
+/**
+ * Sets a new options object for injecting a Blockly workspace.
+ *
+ * @param {Object} options Options object for injecting a Blockly workspace.
+ */
+FactoryModel.prototype.setOptions = function(options) {
+  this.options = options;
+};
+
+/**
+ * Sets an attribute of the options object.
+ *
+ * @param {!string} name Name of the attribute to add.
+ * @param {Object} value The value of the attribute to add.
+ */
+FactoryModel.prototype.setOptionsAttribute = function(name, value) {
+  this.options[name] = value;
+};
 
 /**
  * Class for a ListElement.
@@ -386,6 +444,7 @@ ListElement = function(type, opt_name) {
 // List element types.
 ListElement.TYPE_CATEGORY = 'category';
 ListElement.TYPE_SEPARATOR = 'separator';
+ListElement.TYPE_FLYOUT = 'flyout';
 
 /**
  * Saves a category by updating its XML (does not save XML for
@@ -395,11 +454,11 @@ ListElement.TYPE_SEPARATOR = 'separator';
  * from.
  */
 ListElement.prototype.saveFromWorkspace = function(workspace) {
-  // Only save list elements that are categories.
-  if (this.type != ListElement.TYPE_CATEGORY) {
-    return;
+  // Only save XML for categories and flyouts.
+  if (this.type == ListElement.TYPE_FLYOUT ||
+      this.type == ListElement.TYPE_CATEGORY) {
+    this.xml = Blockly.Xml.workspaceToDom(workspace);
   }
-  this.xml = Blockly.Xml.workspaceToDom(workspace);
 };
 
 
diff --git a/demos/blocklyfactory/workspacefactory/wfactory_view.js b/demos/blocklyfactory/workspacefactory/wfactory_view.js
index 6ad6bf51d..4ebe32b8e 100644
--- a/demos/blocklyfactory/workspacefactory/wfactory_view.js
+++ b/demos/blocklyfactory/workspacefactory/wfactory_view.js
@@ -339,3 +339,83 @@ FactoryView.prototype.unmarkShadowBlock = function(block) {
     Blockly.removeClass_(block.svgGroup_, 'shadowBlock');
   }
 };
+
+/**
+ * Sets the tabs for modes according to which mode the user is currenly
+ * editing in.
+ *
+ * @param {!string} mode The mode being switched to
+ *    (FactoryController.MODE_TOOLBOX or FactoryController.MODE_PRELOAD).
+ */
+FactoryView.prototype.setModeSelection = function(mode) {
+  document.getElementById('tab_preload').className = mode ==
+      FactoryController.MODE_PRELOAD ? 'tabon' : 'taboff';
+  document.getElementById('preload_div').style.display = mode ==
+      FactoryController.MODE_PRELOAD ? 'block' : 'none';
+  document.getElementById('tab_toolbox').className = mode ==
+      FactoryController.MODE_TOOLBOX ? 'tabon' : 'taboff';
+  document.getElementById('toolbox_div').style.display = mode ==
+      FactoryController.MODE_TOOLBOX ? 'block' : 'none';
+};
+
+/**
+ * Updates the help text above the workspace depending on the selected mode.
+ *
+ * @param {!string} mode The selected mode (FactoryController.MODE_TOOLBOX or
+ *    FactoryController.MODE_PRELOAD).
+ */
+FactoryView.prototype.updateHelpText = function(mode) {
+  var helpText = 'Drag your blocks into your ' + (mode ==
+      FactoryController.MODE_TOOLBOX ? 'toolbox: ' : 'pre-loaded workspace: ');
+  document.getElementById('editHelpText').textContent = helpText;
+};
+
+/**
+ * Sets the basic options that are not dependent on if there are categories
+ * or a single flyout of blocks. Updates checkboxes and text fields.
+ */
+FactoryView.prototype.setBaseOptions = function() {
+  // Set basic options.
+  document.getElementById('option_css_checkbox').checked = true;
+  document.getElementById('option_maxBlocks_text').value = Infinity;
+  document.getElementById('option_media_text').value =
+      'https://blockly-demo.appspot.com/static/media/';
+  document.getElementById('option_readOnly_checkbox').checked = false;
+  document.getElementById('option_rtl_checkbox').checked = false;
+  document.getElementById('option_sounds_checkbox').checked = true;
+
+  // Uncheck grid and zoom options and hide suboptions.
+  document.getElementById('option_grid_checkbox').checked = false;
+  document.getElementById('grid_options').style.display = 'none';
+  document.getElementById('option_zoom_checkbox').checked = false;
+  document.getElementById('zoom_options').style.display = 'none';
+
+  // Set grid options.
+  document.getElementById('gridOption_spacing_text').value = 0;
+  document.getElementById('gridOption_length_text').value = 1;
+  document.getElementById('gridOption_colour_text').value = '#888';
+  document.getElementById('gridOption_snap_checkbox').checked = false;
+
+  // Set zoom options.
+  document.getElementById('zoomOption_controls_checkbox').checked = false;
+  document.getElementById('zoomOption_wheel_checkbox').checked = false;
+  document.getElementById('zoomOption_startScale_text').value = 1.0;
+  document.getElementById('zoomOption_maxScale_text').value = 3;
+  document.getElementById('zoomOption_minScale_text').value = 0.3;
+  document.getElementById('zoomOption_scaleSpeed_text').value = 1.2;
+};
+
+/**
+ * Updates category specific options depending on if there are categories
+ * currently present. Updates checkboxes and text fields in the view.
+ *
+ * @param {boolean} hasCategories True if categories are present, false if all
+ *    blocks are displayed in a single flyout.
+ */
+FactoryView.prototype.setCategoryOptions = function(hasCategories) {
+  document.getElementById('option_collapse_checkbox').checked = hasCategories;
+  document.getElementById('option_comments_checkbox').checked = hasCategories;
+  document.getElementById('option_disable_checkbox').checked = hasCategories;
+  document.getElementById('option_scrollbars_checkbox').checked = hasCategories;
+  document.getElementById('option_trashcan_checkbox').checked = hasCategories;
+}