diff --git a/.changeset/cool-panthers-design.md b/.changeset/cool-panthers-design.md
new file mode 100644
index 000000000..31dee4523
--- /dev/null
+++ b/.changeset/cool-panthers-design.md
@@ -0,0 +1,12 @@
+---
+'@lion/overlays': minor
+---
+
+⚠️ BREAKING CHANGE:
+
+Fixed a few problems with the backdropNode and contentNode where they were not torn down properly.
+Simplified the handleBackdrop code to work for both local and global.
+Local overlay backdrop can now be animated.
+Added more demos and docs for backdrop.
+
+The breaking changes lie in the fact that the backdrop style classes are now prefixed 'local'/'global' respectively, instead of always 'global' and the class name suffixes for the `backdropNode` have changed from `fade-in`/`fade-out` to `animation-in`/`animation-out`, as not all animations are fades.
diff --git a/packages/overlays/docs/20-index.md b/packages/overlays/docs/20-index.md
index c082dbae2..1ddce5050 100644
--- a/packages/overlays/docs/20-index.md
+++ b/packages/overlays/docs/20-index.md
@@ -5,6 +5,7 @@
 ```js script
 import { html } from 'lit-html';
 import { render, LitElement } from '@lion/core';
+import { renderLitAsNode } from '@lion/helpers';
 import {
   ArrowMixin,
   OverlayMixin,
@@ -14,6 +15,7 @@ import {
 } from '../index.js';
 
 import '../docs/demo-overlay-system.js';
+import '../docs/demo-overlay-backdrop.js';
 import '../docs/applyDemoOverlayStyles.js';
 import { ref as r } from '../docs/directives/ref.js';
 
@@ -29,7 +31,7 @@ On top of this, the system was built having accessibility in mind.
 
 For a detailed rationale, please consult [Rationale](/?path=/docs/overlays-system-rationale--page).
 
-```js story
+```js preview-story
 export const main = () => html`
   <demo-overlay-system>
     <button slot="invoker">Click me to open the overlay!</button>
@@ -151,6 +153,100 @@ or declaratively in your template with the `.config` property
 </demo-overlay-system>
 ```
 
+### Backdrop
+
+There are multiple ways to pass a backdrop node for your overlay.
+
+The easiest way is declarative. This can be achieved by adding a `<slot name="backdrop">` to your `render` method. The component user can then insert a backdrop slottable declaratively:
+
+```js preview-story
+export const backdrop = () => html`
+  <demo-overlay-system .config=${{ ...withModalDialogConfig() }}>
+    <demo-overlay-backdrop slot="backdrop"></demo-overlay-backdrop>
+    <button slot="invoker">Click me to open the overlay!</button>
+    <div slot="content" class="demo-overlay">
+      Hello! You can close this notification here:
+      <button @click=${e => e.target.dispatchEvent(new Event('close-overlay', { bubbles: true }))}>
+        ⨯
+      </button>
+    </div>
+  </demo-overlay-system>
+`;
+```
+
+You can also pass a backdropNode imperatively to the OverlayConfig. Either use `hasBackdrop: true`, which will spawn a default `backdropNode`.
+For more control, pass a `backdropNode` yourself, e.g. a webcomponent so you can easily encapsulate styles.
+
+```js preview-story
+export const backdropImperative = () => {
+  const backdropNode = document.createElement('demo-overlay-backdrop');
+  return html`
+    <demo-overlay-system .config=${{ ...withModalDialogConfig(), backdropNode }}>
+      <button slot="invoker">Click me to open the overlay!</button>
+      <div slot="content" class="demo-overlay">
+        Hello! You can close this notification here:
+        <button
+          @click=${e => e.target.dispatchEvent(new Event('close-overlay', { bubbles: true }))}
+        >
+          ⨯
+        </button>
+      </div>
+    </demo-overlay-system>
+  `;
+};
+```
+
+#### Backdrop animation
+
+By default our overlay system comes with a backdrop animation.
+This will add `global-overlays__backdrop--animation-in` and `global-overlays__backdrop--animation-out` classes to your backdrop node.
+If you have `placementMode: 'local'` it will replace those `global` strings in the CSS classes with `local`.
+
+It expects from you that you act on these classes in your CSS with an animation. For example if you have your own backdrop webcomponent (to encapsulate styles):
+
+```css
+:host(.local-overlays__backdrop--animation-in) {
+  animation: local-overlays-backdrop-fade-in 300ms;
+}
+
+:host(.local-overlays__backdrop--animation-out) {
+  animation: local-overlays-backdrop-fade-out 300ms;
+  opacity: 0;
+}
+
+@keyframes local-overlays-backdrop-fade-in {
+  from {
+    opacity: 0;
+  }
+}
+
+@keyframes local-overlays-backdrop-fade-out {
+  from {
+    opacity: 0.3;
+  }
+}
+```
+
+Under the hood, the OverlayController listens to `animationend` event, only then it will remove the animation-out/animation-in classes.
+
+> If you don't intend on having a backdrop animation at all, as a subclasser you should override `transitionHide` and `transitionShow` OverlayMixin methods.
+> Otherwise the `hide` will await an `animationend` event that will never happen.
+
+```js preview-story
+export const backdropAnimation = () => html`
+  <demo-overlay-system .config=${{ ...withModalDialogConfig() }}>
+    <button slot="invoker">Click me to open the overlay!</button>
+    <demo-overlay-backdrop slot="backdrop"></demo-overlay-backdrop>
+    <div slot="content" class="demo-overlay">
+      Hello! You can close this notification here:
+      <button @click=${e => e.target.dispatchEvent(new Event('close-overlay', { bubbles: true }))}>
+        ⨯
+      </button>
+    </div>
+  </demo-overlay-system>
+`;
+```
+
 ### Responsive switching
 
 Currently we support switching between overlay configurations.
@@ -174,12 +270,6 @@ export const responsiveSwitching = () => html`
     }}
   >
     <button slot="invoker">Click me to open the overlay!</button>
-    <div slot="content" class="demo-overlay">
-      Hello! You can close this notification here:
-      <button @click=${e => e.target.dispatchEvent(new Event('close-overlay', { bubbles: true }))}>
-        ⨯
-      </button>
-    </div>
   </demo-overlay-system>
 `;
 ```
@@ -454,73 +544,9 @@ Here is the example below
 
 ```js preview-story
 export const localBackdrop = () => {
-  let backdropNode = document.createElement('div');
-  backdropNode.classList.add('local-backdrop-01');
   return html`
-    <style>
-      .local-backdrop-01 {
-        position: fixed;
-        top: 0;
-        left: 0;
-        width: 100%;
-        height: 100%;
-        z-index: 1;
-        background-color: red;
-        opacity: 0.3;
-        display: none;
-      }
-    </style>
-    <demo-overlay-system
-      @before-opened=${e => (backdropNode.style.display = 'block')}
-      @before-closed=${e => (backdropNode.style.display = 'none')}
-      .config=${{ hasBackdrop: true, placementMode: 'local', backdropNode }}
-    >
-      <button slot="invoker">Click me to open the overlay!</button>
-      <div slot="content" class="demo-overlay">
-        Hello! You can close this notification here:
-        <button
-          @click=${e => e.target.dispatchEvent(new Event('close-overlay', { bubbles: true }))}
-        >
-          ⨯
-        </button>
-      </div>
-    </demo-overlay-system>
-  `;
-};
-```
-
-## Declarative Local Backdrop
-
-Another way to add custom backdrop is declaratively add an element with `slot="backdrop"`.
-
-```js preview-story
-export const declarativeLocalBackdrop = () => {
-  const beforeOpened = () => {
-    document.querySelector('.local-backdrop-02').style.display = 'block';
-  };
-  const beforeClosed = () => {
-    document.querySelector('.local-backdrop-02').style.display = 'none';
-  };
-  return html`
-    <style>
-      .local-backdrop-02 {
-        position: fixed;
-        top: 0;
-        left: 0;
-        width: 100%;
-        height: 100%;
-        z-index: 1;
-        background-color: red;
-        opacity: 0.3;
-        display: none;
-      }
-    </style>
-    <demo-overlay-system
-      @before-opened=${beforeOpened}
-      @before-closed=${beforeClosed}
-      .config=${{ hasBackdrop: true, placementMode: 'local' }}
-    >
-      <div slot="backdrop" class="local-backdrop-02"></div>
+    <demo-overlay-system .config=${{ placementMode: 'local' }}>
+      <demo-overlay-backdrop slot="backdrop"></demo-overlay-backdrop>
       <button slot="invoker">Click me to open the overlay!</button>
       <div slot="content" class="demo-overlay">
         Hello! You can close this notification here:
diff --git a/packages/overlays/docs/40-system-configuration.md b/packages/overlays/docs/40-system-configuration.md
index 17efe6209..4df796fef 100644
--- a/packages/overlays/docs/40-system-configuration.md
+++ b/packages/overlays/docs/40-system-configuration.md
@@ -203,8 +203,8 @@ Boolean property. When true, will add a backdrop when the overlay is opened.
 The backdrop styling can be configured by targeting the `.global-overlays .global-overlays__backdrop` css selector.
 
 The backdrop animation can be configured by targeting the
-`.global-overlays .global-overlays__backdrop--fade-in` and
-`.global-overlays .global-overlays__backdrop--fade-out` css selector.
+`.global-overlays .global-overlays__backdrop--animation-in` and
+`.global-overlays .global-overlays__backdrop--animation-out` css selector.
 This currently only supports CSS Animations, because it relies on the `animationend` event to add/remove classes.
 
 ```js preview-story
@@ -235,8 +235,8 @@ Boolean property. When true, will add a backdrop when the overlay is opened.
 The backdrop styling can be configured by targeting the `.global-overlays .global-overlays__backdrop` css selector.
 
 The backdrop animation can be configured by targeting the
-`.global-overlays .global-overlays__backdrop--fade-in` and
-`.global-overlays .global-overlays__backdrop--fade-out` css selector.
+`.global-overlays .global-overlays__backdrop--animation-in` and
+`.global-overlays .global-overlays__backdrop--animation-out` css selector.
 This currently only supports CSS Animations, because it relies on the `animationend` event to add/remove classes.
 
 ```js preview-story
diff --git a/packages/overlays/docs/demo-overlay-backdrop.js b/packages/overlays/docs/demo-overlay-backdrop.js
new file mode 100644
index 000000000..3aa56e3b4
--- /dev/null
+++ b/packages/overlays/docs/demo-overlay-backdrop.js
@@ -0,0 +1,48 @@
+import { css, LitElement } from '@lion/core';
+
+/**
+ * @typedef {import('../types/OverlayConfig').OverlayConfig} OverlayConfig
+ */
+class DemoOverlayBackdrop extends LitElement {
+  static get styles() {
+    return css`
+      :host {
+        position: fixed;
+        top: 0;
+        left: 0;
+        width: 100%;
+        height: 100%;
+        z-index: 1;
+        background-color: red;
+        opacity: 0.3;
+        display: none;
+      }
+
+      :host(.local-overlays__backdrop--visible) {
+        display: block;
+      }
+
+      :host(.local-overlays__backdrop--animation-in) {
+        animation: local-overlays-backdrop-fade-in 300ms;
+      }
+
+      :host(.local-overlays__backdrop--animation-out) {
+        animation: local-overlays-backdrop-fade-out 300ms;
+        opacity: 0;
+      }
+
+      @keyframes local-overlays-backdrop-fade-in {
+        from {
+          opacity: 0;
+        }
+      }
+
+      @keyframes local-overlays-backdrop-fade-out {
+        from {
+          opacity: 0.3;
+        }
+      }
+    `;
+  }
+}
+customElements.define('demo-overlay-backdrop', DemoOverlayBackdrop);
diff --git a/packages/overlays/docs/demo-overlay-system.js b/packages/overlays/docs/demo-overlay-system.js
index 4bcbfa85f..d94ae5499 100644
--- a/packages/overlays/docs/demo-overlay-system.js
+++ b/packages/overlays/docs/demo-overlay-system.js
@@ -40,7 +40,7 @@ class DemoOverlaySystem extends OverlayMixin(LitElement) {
   render() {
     return html`
       <slot name="invoker"></slot>
-      <slot name="_overlay-shadow-outlet"></slot>
+      <slot name="backdrop"></slot>
       <div id="overlay-content-node-wrapper">
         <slot name="content"></slot>
       </div>
diff --git a/packages/overlays/src/OverlayController.js b/packages/overlays/src/OverlayController.js
index 9eca844a1..22f69a2f5 100644
--- a/packages/overlays/src/OverlayController.js
+++ b/packages/overlays/src/OverlayController.js
@@ -251,7 +251,7 @@ export class OverlayController extends EventTargetShim {
    * @type {boolean}
    */
   get hasBackdrop() {
-    return /** @type {boolean} */ (this.config?.hasBackdrop);
+    return /** @type {boolean} */ (!!this.backdropNode || this.config?.hasBackdrop);
   }
 
   /**
@@ -618,7 +618,7 @@ export class OverlayController extends EventTargetShim {
         }
       }
     } else if (phase === 'teardown') {
-      this.__restorOriginalAttrs();
+      this.__restoreOriginalAttrs();
     }
   }
 
@@ -634,7 +634,7 @@ export class OverlayController extends EventTargetShim {
     this.__originalAttrs.set(node, attrMap);
   }
 
-  __restorOriginalAttrs() {
+  __restoreOriginalAttrs() {
     for (const [node, attrMap] of this.__originalAttrs) {
       Object.entries(attrMap).forEach(([attrName, value]) => {
         if (value !== null) {
@@ -798,16 +798,49 @@ export class OverlayController extends EventTargetShim {
   }
 
   /**
-   * @param {{backdropNode:HTMLElement, contentNode:HTMLElement}} config
+   * @param {{backdropNode:HTMLElement, contentNode:HTMLElement}} hideConfig
    */
   // eslint-disable-next-line class-methods-use-this, no-empty-function, no-unused-vars
-  async transitionHide(config) {}
+  async transitionHide(hideConfig) {
+    if (hideConfig.backdropNode) {
+      hideConfig.backdropNode.classList.remove(
+        `${this.placementMode}-overlays__backdrop--animation-in`,
+      );
+      /** @type {(ev:AnimationEvent) => void} */
+      let afterFadeOut;
+      hideConfig.backdropNode.classList.add(
+        `${this.placementMode}-overlays__backdrop--animation-out`,
+      );
+      this.__backdropAnimation = new Promise(resolve => {
+        afterFadeOut = () => {
+          if (hideConfig.backdropNode) {
+            hideConfig.backdropNode.classList.remove(
+              `${this.placementMode}-overlays__backdrop--animation-out`,
+            );
+            hideConfig.backdropNode.classList.remove(
+              `${this.placementMode}-overlays__backdrop--visible`,
+            );
+            hideConfig.backdropNode.removeEventListener('animationend', afterFadeOut);
+          }
+          resolve();
+        };
+      });
+      // @ts-expect-error
+      hideConfig.backdropNode.addEventListener('animationend', afterFadeOut);
+    }
+  }
 
   /**
-   * @param {{backdropNode:HTMLElement, contentNode:HTMLElement}} config
+   * @param {{backdropNode:HTMLElement, contentNode:HTMLElement}} showConfig
    */
   // eslint-disable-next-line class-methods-use-this, no-empty-function, no-unused-vars
-  async transitionShow(config) {}
+  async transitionShow(showConfig) {
+    if (showConfig.backdropNode) {
+      showConfig.backdropNode.classList.add(
+        `${this.placementMode}-overlays__backdrop--animation-in`,
+      );
+    }
+  }
 
   _restoreFocus() {
     // We only are allowed to move focus if we (still) 'own' it.
@@ -893,19 +926,20 @@ export class OverlayController extends EventTargetShim {
 
   /**
    * Sets up backdrop on the given overlay. If there was a backdrop on another element
-   * it is removed. Otherwise this is the first time displaying a backdrop, so a fade-in
+   * it is removed. Otherwise this is the first time displaying a backdrop, so a animation-in
    * animation is played.
    * @param {{ animation?: boolean, phase: OverlayPhase }} config
    */
-  _handleBackdrop({ animation = true, phase }) {
+  _handleBackdrop({ phase }) {
     switch (phase) {
       case 'init': {
         if (!this.backdropNode) {
           this.__backdropNode = document.createElement('div');
           /** @type {HTMLElement} */
+          (this.backdropNode).slot = 'backdrop';
+          /** @type {HTMLElement} */
           (this.backdropNode).classList.add(`${this.placementMode}-overlays__backdrop`);
         }
-        this.backdropNode.slot = '_overlay-shadow-outlet';
 
         let insertionAnchor = /** @type {HTMLElement} */ (this.contentNode.parentNode);
         let insertionBefore = this.contentNode;
@@ -917,12 +951,7 @@ export class OverlayController extends EventTargetShim {
         break;
       }
       case 'show':
-        if (this.placementMode === 'global') {
-          this.backdropNode.classList.add('global-overlays__backdrop--visible');
-          if (animation === true) {
-            this.backdropNode.classList.add('global-overlays__backdrop--fade-in');
-          }
-        }
+        this.backdropNode.classList.add(`${this.placementMode}-overlays__backdrop--visible`);
         this.__hasActiveBackdrop = true;
         break;
       case 'hide':
@@ -930,39 +959,15 @@ export class OverlayController extends EventTargetShim {
           return;
         }
         this.__hasActiveBackdrop = false;
-
-        if (this.placementMode === 'global') {
-          this.backdropNode.classList.remove('global-overlays__backdrop--fade-in');
-          if (animation) {
-            /** @type {(ev:AnimationEvent) => void} */
-            let afterFadeOut;
-            this.backdropNode.classList.add('global-overlays__backdrop--fade-out');
-            this.__backDropAnimation = new Promise(resolve => {
-              afterFadeOut = () => {
-                if (this.backdropNode) {
-                  this.backdropNode.classList.remove('global-overlays__backdrop--fade-out');
-                  this.backdropNode.classList.remove('global-overlays__backdrop--visible');
-                  this.backdropNode.removeEventListener('animationend', afterFadeOut);
-                }
-                resolve();
-              };
-            });
-            // @ts-expect-error
-            this.backdropNode.addEventListener('animationend', afterFadeOut);
-          } else {
-            this.backdropNode.classList.remove('global-overlays__backdrop--visible');
-          }
-        }
-
         break;
       case 'teardown':
         if (!this.backdropNode || !this.backdropNode.parentNode) {
           return;
         }
-        if (animation && this.__backDropAnimation) {
+        if (this.__backdropAnimation) {
           this.__backdropNodeToBeTornDown = this.backdropNode;
 
-          this.__backDropAnimation.then(() => {
+          this.__backdropAnimation.then(() => {
             if (this.__backdropNodeToBeTornDown) {
               /** @type {HTMLElement} */ (this.__backdropNodeToBeTornDown.parentNode).removeChild(
                 this.__backdropNodeToBeTornDown,
diff --git a/packages/overlays/src/globalOverlaysStyle.js b/packages/overlays/src/globalOverlaysStyle.js
index d112f77fb..7325d1305 100644
--- a/packages/overlays/src/globalOverlaysStyle.js
+++ b/packages/overlays/src/globalOverlaysStyle.js
@@ -85,11 +85,11 @@ export const globalOverlaysStyle = css`
     display: block;
   }
 
-  .global-overlays .global-overlays__backdrop--fade-in {
+  .global-overlays .global-overlays__backdrop--animation-in {
     animation: global-overlays-backdrop-fade-in 300ms;
   }
 
-  .global-overlays .global-overlays__backdrop--fade-out {
+  .global-overlays .global-overlays__backdrop--animation-out {
     animation: global-overlays-backdrop-fade-out 300ms;
     opacity: 0;
   }