diff --git a/src/components/paint-editor.jsx b/src/components/paint-editor.jsx
index f799b9df..f81262b5 100644
--- a/src/components/paint-editor.jsx
+++ b/src/components/paint-editor.jsx
@@ -1,12 +1,16 @@
 import bindAll from 'lodash.bindall';
 import React from 'react';
+import PropTypes from 'prop-types';
+
 import PaperCanvas from '../containers/paper-canvas.jsx';
+
 import BrushMode from '../containers/brush-mode.jsx';
 import EraserMode from '../containers/eraser-mode.jsx';
 import ReshapeMode from '../containers/reshape-mode.jsx';
 import SelectMode from '../containers/select-mode.jsx';
-import PropTypes from 'prop-types';
 import LineMode from '../containers/line-mode.jsx';
+import PenMode from '../containers/pen-mode.jsx';
+
 import FillColorIndicatorComponent from '../containers/fill-color-indicator.jsx';
 import StrokeColorIndicatorComponent from '../containers/stroke-color-indicator.jsx';
 import StrokeWidthIndicatorComponent from '../containers/stroke-width-indicator.jsx';
@@ -132,6 +136,10 @@ class PaintEditorComponent extends React.Component {
                                 canvas={this.state.canvas}
                                 onUpdateSvg={this.props.onUpdateSvg}
                             />
+                            <PenMode
+                                canvas={this.state.canvas}
+                                onUpdateSvg={this.props.onUpdateSvg}
+                            />
                             <LineMode
                                 canvas={this.state.canvas}
                                 onUpdateSvg={this.props.onUpdateSvg}
diff --git a/src/components/pen-mode.jsx b/src/components/pen-mode.jsx
new file mode 100644
index 00000000..2f17bee4
--- /dev/null
+++ b/src/components/pen-mode.jsx
@@ -0,0 +1,19 @@
+import React from 'react';
+import PropTypes from 'prop-types';
+import {FormattedMessage} from 'react-intl';
+
+const PenModeComponent = props => (
+    <button onClick={props.onMouseDown}>
+        <FormattedMessage
+            defaultMessage="Pen"
+            description="Label for the pen tool, which draws outlines"
+            id="paint.penMode.pen"
+        />
+    </button>
+);
+
+PenModeComponent.propTypes = {
+    onMouseDown: PropTypes.func.isRequired
+};
+
+export default PenModeComponent;
diff --git a/src/containers/brush-mode.jsx b/src/containers/brush-mode.jsx
index b4f899ab..0ffdde41 100644
--- a/src/containers/brush-mode.jsx
+++ b/src/containers/brush-mode.jsx
@@ -3,7 +3,7 @@ import React from 'react';
 import {connect} from 'react-redux';
 import bindAll from 'lodash.bindall';
 import Modes from '../modes/modes';
-import Blobbiness from './blob/blob';
+import Blobbiness from '../helper/blob-tools/blob';
 
 import {changeBrushSize} from '../reducers/brush-mode';
 import {changeMode} from '../reducers/modes';
diff --git a/src/containers/eraser-mode.jsx b/src/containers/eraser-mode.jsx
index efd920fe..87a7925d 100644
--- a/src/containers/eraser-mode.jsx
+++ b/src/containers/eraser-mode.jsx
@@ -3,7 +3,7 @@ import React from 'react';
 import {connect} from 'react-redux';
 import bindAll from 'lodash.bindall';
 import Modes from '../modes/modes';
-import Blobbiness from './blob/blob';
+import Blobbiness from '../helper/blob-tools/blob';
 import {changeBrushSize} from '../reducers/eraser-mode';
 import {clearSelectedItems} from '../reducers/selected-items';
 import EraserModeComponent from '../components/eraser-mode.jsx';
diff --git a/src/containers/pen-mode.jsx b/src/containers/pen-mode.jsx
new file mode 100644
index 00000000..0519f963
--- /dev/null
+++ b/src/containers/pen-mode.jsx
@@ -0,0 +1,102 @@
+import PropTypes from 'prop-types';
+import React from 'react';
+import {connect} from 'react-redux';
+import bindAll from 'lodash.bindall';
+import Modes from '../modes/modes';
+
+import {changeMode} from '../reducers/modes';
+import {clearHoveredItem, setHoveredItem} from '../reducers/hover';
+import {clearSelectedItems, setSelectedItems} from '../reducers/selected-items';
+
+import {getSelectedLeafItems} from '../helper/selection';
+import PenTool from '../helper/tools/pen-tool';
+import PenModeComponent from '../components/pen-mode.jsx';
+
+class PenMode extends React.Component {
+    constructor (props) {
+        super(props);
+        bindAll(this, [
+            'activateTool',
+            'deactivateTool'
+        ]);
+    }
+    componentDidMount () {
+        if (this.props.isPenModeActive) {
+            this.activateTool(this.props);
+        }
+    }
+    componentWillReceiveProps (nextProps) {
+        if (this.tool && nextProps.hoveredItemId !== this.props.hoveredItemId) {
+            this.tool.setPrevHoveredItemId(nextProps.hoveredItemId);
+        }
+
+        if (nextProps.isPenModeActive && !this.props.isPenModeActive) {
+            this.activateTool();
+        } else if (!nextProps.isPenModeActive && this.props.isPenModeActive) {
+            this.deactivateTool();
+        }
+    }
+    shouldComponentUpdate () {
+        return false; // Static component, for now
+    }
+    activateTool () {
+        this.tool = new PenTool(
+            this.props.setHoveredItem,
+            this.props.clearHoveredItem,
+            this.props.setSelectedItems,
+            this.props.clearSelectedItems,
+            this.props.onUpdateSvg
+        );
+        this.tool.activate();
+    }
+    deactivateTool () {
+        this.tool.deactivateTool();
+        this.tool.remove();
+        this.tool = null;
+    }
+    render () {
+        return (
+            <PenModeComponent onMouseDown={this.props.handleMouseDown} />
+        );
+    }
+}
+
+PenMode.propTypes = {
+    clearHoveredItem: PropTypes.func.isRequired,
+    clearSelectedItems: PropTypes.func.isRequired,
+    handleMouseDown: PropTypes.func.isRequired,
+    hoveredItemId: PropTypes.number,
+    isPenModeActive: PropTypes.bool.isRequired,
+    onUpdateSvg: PropTypes.func.isRequired,
+    setHoveredItem: PropTypes.func.isRequired,
+    setSelectedItems: PropTypes.func.isRequired
+};
+
+const mapStateToProps = state => ({
+    isPenModeActive: state.scratchPaint.mode === Modes.PEN,
+    hoveredItemId: state.scratchPaint.hoveredItemId
+});
+const mapDispatchToProps = dispatch => ({
+    setHoveredItem: hoveredItemId => {
+        dispatch(setHoveredItem(hoveredItemId));
+    },
+    clearHoveredItem: () => {
+        dispatch(clearHoveredItem());
+    },
+    clearSelectedItems: () => {
+        dispatch(clearSelectedItems());
+    },
+    setSelectedItems: () => {
+        dispatch(setSelectedItems(getSelectedLeafItems()));
+    },
+    handleMouseDown: () => {
+        dispatch(changeMode(Modes.PEN));
+    },
+    deactivateTool () {
+    }
+});
+
+export default connect(
+    mapStateToProps,
+    mapDispatchToProps
+)(PenMode);
diff --git a/src/containers/blob/blob.js b/src/helper/blob-tools/blob.js
similarity index 100%
rename from src/containers/blob/blob.js
rename to src/helper/blob-tools/blob.js
diff --git a/src/containers/blob/broad-brush-helper.js b/src/helper/blob-tools/broad-brush-helper.js
similarity index 100%
rename from src/containers/blob/broad-brush-helper.js
rename to src/helper/blob-tools/broad-brush-helper.js
diff --git a/src/containers/blob/segment-brush-helper.js b/src/helper/blob-tools/segment-brush-helper.js
similarity index 100%
rename from src/containers/blob/segment-brush-helper.js
rename to src/helper/blob-tools/segment-brush-helper.js
diff --git a/src/helper/tools/pen-tool.js b/src/helper/tools/pen-tool.js
new file mode 100644
index 00000000..76d5e838
--- /dev/null
+++ b/src/helper/tools/pen-tool.js
@@ -0,0 +1,52 @@
+import paper from '@scratch/paper';
+import log from '../../log/log';
+
+/**
+ * Tool to handle freehand drawing of lines.
+ */
+class PenTool extends paper.Tool {
+    /**
+     * @param {function} setHoveredItem Callback to set the hovered item
+     * @param {function} clearHoveredItem Callback to clear the hovered item
+     * @param {function} setSelectedItems Callback to set the set of selected items in the Redux state
+     * @param {function} clearSelectedItems Callback to clear the set of selected items in the Redux state
+     * @param {!function} onUpdateSvg A callback to call when the image visibly changes
+     */
+    constructor (setHoveredItem, clearHoveredItem, setSelectedItems, clearSelectedItems, onUpdateSvg) {
+        super();
+        this.setHoveredItem = setHoveredItem;
+        this.clearHoveredItem = clearHoveredItem;
+        this.setSelectedItems = setSelectedItems;
+        this.clearSelectedItems = clearSelectedItems;
+        this.onUpdateSvg = onUpdateSvg;
+        this.prevHoveredItemId = null;
+        
+        // We have to set these functions instead of just declaring them because
+        // paper.js tools hook up the listeners in the setter functions.
+        this.onMouseDown = this.handleMouseDown;
+        this.onMouseMove = this.handleMouseMove;
+        this.onMouseDrag = this.handleMouseDrag;
+        this.onMouseUp = this.handleMouseUp;
+    }
+    /**
+     * To be called when the hovered item changes. When the select tool hovers over a
+     * new item, it compares against this to see if a hover item change event needs to
+     * be fired.
+     * @param {paper.Item} prevHoveredItemId ID of the highlight item that indicates the mouse is
+     *     over a given item currently
+     */
+    setPrevHoveredItemId (prevHoveredItemId) {
+        this.prevHoveredItemId = prevHoveredItemId;
+    }
+    handleMouseDown () {
+        log.warn('Pen not yet implemented');
+    }
+    handleMouseMove () {
+    }
+    handleMouseDrag () {
+    }
+    handleMouseUp () {
+    }
+}
+
+export default PenTool;
diff --git a/src/modes/modes.js b/src/modes/modes.js
index a12446e3..f8262e5c 100644
--- a/src/modes/modes.js
+++ b/src/modes/modes.js
@@ -5,7 +5,8 @@ const Modes = keyMirror({
     ERASER: null,
     LINE: null,
     SELECT: null,
-    RESHAPE: null
+    RESHAPE: null,
+    PEN: null
 });
 
 export default Modes;