diff --git a/README.md b/README.md
index 2239fed..515a6a7 100644
--- a/README.md
+++ b/README.md
@@ -16,9 +16,10 @@ In the sample you can see an implementation of:
 
 # 💻 Development Environment
 
-**Hello Android XR** uses the Gradle build system and can be imported directly into Android Studio
-(make sure you are using the latest stable version available
-[here](https://developer.android.com/studio)).
+**Hello Android XR** uses the Gradle build system and can be imported directly into Android Studio.
+Ensure you have the latest Canary version available, and update the XR emulator image in Android
+Studio's SDK Manager before creating a new XR Emulator. The Canary version of Android Studio is
+available [here](https://developer.android.com/studio/preview)).
 
 # Additional Resources
 
diff --git a/app/src/main/AndroidManifest.xml b/app/src/main/AndroidManifest.xml
index 55b2278..11a291c 100644
--- a/app/src/main/AndroidManifest.xml
+++ b/app/src/main/AndroidManifest.xml
@@ -17,7 +17,8 @@
 
 <manifest xmlns:android="http://schemas.android.com/apk/res/android"
     xmlns:tools="http://schemas.android.com/tools">
-    
+    <!-- Indicates that the app makes use of XR spatial APIs, but this isn't a requirement that
+    should block installing the app -->
     <uses-feature android:name="android.software.xr.api.spatial" android:required="false" />
 
     <application
diff --git a/app/src/main/java/com/example/helloandroidxr/ui/HelloAndroidXRApp.kt b/app/src/main/java/com/example/helloandroidxr/ui/HelloAndroidXRApp.kt
index ba25717..5bfdc25 100644
--- a/app/src/main/java/com/example/helloandroidxr/ui/HelloAndroidXRApp.kt
+++ b/app/src/main/java/com/example/helloandroidxr/ui/HelloAndroidXRApp.kt
@@ -20,11 +20,13 @@ import androidx.compose.animation.core.Animatable
 import androidx.compose.animation.core.FastOutSlowInEasing
 import androidx.compose.animation.core.tween
 import androidx.compose.foundation.layout.Arrangement
+import androidx.compose.foundation.layout.Box
 import androidx.compose.foundation.layout.Column
 import androidx.compose.foundation.layout.IntrinsicSize
 import androidx.compose.foundation.layout.Row
 import androidx.compose.foundation.layout.Spacer
 import androidx.compose.foundation.layout.fillMaxHeight
+import androidx.compose.foundation.layout.fillMaxSize
 import androidx.compose.foundation.layout.fillMaxWidth
 import androidx.compose.foundation.layout.height
 import androidx.compose.foundation.layout.padding
@@ -34,11 +36,18 @@ import androidx.compose.foundation.layout.width
 import androidx.compose.foundation.rememberScrollState
 import androidx.compose.foundation.shape.RoundedCornerShape
 import androidx.compose.foundation.verticalScroll
+import androidx.compose.material3.Button
+import androidx.compose.material3.MaterialTheme
 import androidx.compose.material3.Surface
+import androidx.compose.material3.Text
 import androidx.compose.material3.adaptive.currentWindowAdaptiveInfo
 import androidx.compose.runtime.Composable
 import androidx.compose.runtime.LaunchedEffect
+import androidx.compose.runtime.getValue
+import androidx.compose.runtime.mutableStateOf
 import androidx.compose.runtime.remember
+import androidx.compose.runtime.saveable.rememberSaveable
+import androidx.compose.runtime.setValue
 import androidx.compose.ui.Alignment
 import androidx.compose.ui.Modifier
 import androidx.compose.ui.draw.alpha
@@ -61,10 +70,13 @@ import androidx.xr.compose.subspace.layout.alpha
 import androidx.xr.compose.subspace.layout.fillMaxSize
 import androidx.xr.compose.subspace.layout.fillMaxWidth
 import androidx.xr.compose.subspace.layout.height
+import androidx.xr.compose.subspace.layout.movable
 import androidx.xr.compose.subspace.layout.padding
+import androidx.xr.compose.subspace.layout.resizable
 import androidx.xr.compose.subspace.layout.size
 import androidx.xr.compose.subspace.layout.width
 import com.example.helloandroidxr.R
+import com.example.helloandroidxr.ui.components.BugdroidModel
 import com.example.helloandroidxr.ui.components.EnvironmentControls
 import com.example.helloandroidxr.ui.components.SearchBar
 import com.example.helloandroidxr.ui.theme.HelloAndroidXRTheme
@@ -111,12 +123,21 @@ private fun SpatialLayout(
         SpatialRow(modifier = SubspaceModifier.height(816.dp).fillMaxWidth()) {
             SpatialColumn(modifier = SubspaceModifier.width(400.dp)) {
                 SpatialPanel(
-                    SubspaceModifier.alpha(animatedAlpha.value).size(400.dp).padding(bottom = 16.dp)
+                    SubspaceModifier
+                        .alpha(animatedAlpha.value)
+                        .size(400.dp)
+                        .padding(bottom = 16.dp)
+                        .movable()
+                        .resizable()
                 ) {
                     firstSupportingContent()
                 }
                 SpatialPanel(
-                    SubspaceModifier.alpha(animatedAlpha.value).weight(1f)
+                    SubspaceModifier
+                        .alpha(animatedAlpha.value)
+                        .weight(1f)
+                        .movable()
+                        .resizable()
                 ) {
                     secondSupportingContent()
                 }
@@ -126,12 +147,12 @@ private fun SpatialLayout(
                     .alpha(animatedAlpha.value)
                     .fillMaxSize()
                     .padding(left = 16.dp)
+                    .movable()
+                    .resizable()
             ) {
                 Column {
                     TopAppBar()
-                    Row {
-                        primaryContent()
-                    }
+                    primaryContent()
                 }
             }
         }
@@ -193,8 +214,7 @@ private fun SideBySidePaneLayout(
             }
         }
         Spacer(Modifier.width(16.dp))
-        Surface(modifier.clip(RoundedCornerShape(16.dp))
-        ) {
+        Surface(modifier.clip(RoundedCornerShape(16.dp))) {
             primaryPane()
         }
     }
@@ -210,7 +230,7 @@ private fun TopAndBottomPaneLayout(
     modifier: Modifier = Modifier
 ) {
     Column(modifier.verticalScroll(rememberScrollState())) {
-        Surface(Modifier.requiredHeight(500.dp)){
+        Surface(Modifier.requiredHeight(500.dp)) {
             primaryPane()
         }
         Spacer(Modifier.height(16.dp))
@@ -259,11 +279,31 @@ private fun TopAppBar() {
 
 @Composable
 private fun PrimaryContent(modifier: Modifier = Modifier) {
-    TextPane(
-        text = stringResource(R.string.primary_content),
-        modifier = modifier
-            .clip(RoundedCornerShape(16.dp))
-    )
+    var showBugdroid by rememberSaveable { mutableStateOf(false) }
+
+    if (LocalSpatialCapabilities.current.isSpatialUiEnabled) {
+        Surface(modifier.fillMaxSize()) {
+            Box(modifier.padding(48.dp), contentAlignment = Alignment.Center) {
+                Button(
+                    onClick = {
+                        showBugdroid = true
+                    },
+                    modifier = modifier
+                ) {
+                    Text(
+                        text = stringResource(id = R.string.show_bugdroid),
+                        style = MaterialTheme.typography.labelLarge
+                    )
+                }
+                BugdroidModel(showBugdroid = showBugdroid)
+            }
+        }
+    } else {
+        TextPane(
+            text = stringResource(R.string.primary_content),
+            modifier = modifier.clip(RoundedCornerShape(16.dp))
+        )
+    }
 }
 
 @Composable
diff --git a/app/src/main/java/com/example/helloandroidxr/ui/components/BugdroidModel.kt b/app/src/main/java/com/example/helloandroidxr/ui/components/BugdroidModel.kt
new file mode 100644
index 0000000..2b73bc3
--- /dev/null
+++ b/app/src/main/java/com/example/helloandroidxr/ui/components/BugdroidModel.kt
@@ -0,0 +1,67 @@
+/*
+ * Copyright 2025 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     https://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.example.helloandroidxr.ui.components
+
+import androidx.compose.runtime.Composable
+import androidx.compose.runtime.rememberCoroutineScope
+import androidx.compose.ui.platform.LocalContext
+import androidx.compose.ui.unit.dp
+import androidx.xr.compose.platform.LocalSession
+import androidx.xr.compose.spatial.Subspace
+import androidx.xr.compose.subspace.Volume
+import androidx.xr.compose.subspace.layout.SubspaceModifier
+import androidx.xr.compose.subspace.layout.offset
+import androidx.xr.scenecore.GltfModel
+import androidx.xr.scenecore.GltfModelEntity
+import com.example.helloandroidxr.R
+import kotlinx.coroutines.guava.await
+import kotlinx.coroutines.launch
+import java.io.InputStream
+
+@Composable
+fun BugdroidModel(showBugdroid: Boolean) {
+    if (showBugdroid) {
+        val xrSession = checkNotNull(LocalSession.current)
+        val scope = rememberCoroutineScope()
+        val context = LocalContext.current
+
+        Subspace {
+            val inputStream: InputStream =
+                context.resources.openRawResource(R.raw.bugdroid_animated_wave)
+            Volume(
+                SubspaceModifier.offset(z = 400.dp) // Relative position
+            ) { parent ->
+                scope.launch {
+                    val gltfModel = GltfModel.create(
+                        session = xrSession,
+                        assetData = inputStream.readBytes(),
+                        assetKey = "BUGDROID"
+                    ).await()
+                    val gltfEntity = GltfModelEntity.create(xrSession, gltfModel)
+                    // Make this glTF a child of the Volume
+                    gltfEntity.setParent(parent)
+                    // Change the size of the large glTF to 10%
+                    gltfEntity.setScale(0.1f)
+                    gltfEntity.startAnimation(
+                        loop = true,
+                        animationName = "Armature|Take 001|BaseLayer"
+                    )
+                }
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/app/src/main/res/raw/bugdroid_animated_wave.glb b/app/src/main/res/raw/bugdroid_animated_wave.glb
new file mode 100644
index 0000000..b1dec1c
Binary files /dev/null and b/app/src/main/res/raw/bugdroid_animated_wave.glb differ
diff --git a/app/src/main/res/values/strings.xml b/app/src/main/res/values/strings.xml
index dd61bc8..68d8030 100644
--- a/app/src/main/res/values/strings.xml
+++ b/app/src/main/res/values/strings.xml
@@ -25,5 +25,6 @@
     <string name="search_product_name">Search Product Name</string>
     <string name="set_virtual_environment">set virtual environment</string>
     <string name="set_passthrough">set passthrough</string>
+    <string name="show_bugdroid">Show bugdroid</string>
 
 </resources>
\ No newline at end of file
diff --git a/gradle/libs.versions.toml b/gradle/libs.versions.toml
index a22558b..1db4002 100644
--- a/gradle/libs.versions.toml
+++ b/gradle/libs.versions.toml
@@ -1,17 +1,18 @@
 [versions]
-androidx-runtime = "1.8.0-alpha06"
-agp = "8.6.1"
+androidx-runtime = "1.8.1"
+agp = "8.10.0"
 arcore = "1.0.0-alpha04"
 compose = "1.0.0-alpha04"
 scenecore = "1.0.0-alpha04"
-kotlinxCoroutinesGuava = "1.9.0"
-kotlin = "2.0.21"
+kotlinxCoroutinesGuava = "1.10.2"
+kotlin = "2.1.21"
 concurrentFuturesKtx = "1.2.0"
-activityCompose = "1.10.0-beta01"
-composeBom = "2024.11.00"
+activityCompose = "1.10.1"
+composeBom = "2025.05.00"
 material = "1.12.0"
-screenshot = "0.0.1-alpha08"
-adaptiveAndroid = "1.0.0"
+screenshot = "0.0.1-alpha09"
+adaptiveAndroid = "1.1.0"
+kotlinAndroid = "2.1.21"
 
 [libraries]
 androidx-arcore = { module = "androidx.xr.arcore:arcore", version.ref = "arcore" }
@@ -29,6 +30,6 @@ androidx-adaptive-android = { group = "androidx.compose.material3.adaptive", nam
 
 [plugins]
 android-application = { id = "com.android.application", version.ref = "agp" }
-kotlin-android = { id = "org.jetbrains.kotlin.android", version = "2.0.21" }
+kotlin-android = { id = "org.jetbrains.kotlin.android", version.ref = "kotlinAndroid" }
 kotlin-compose = { id = "org.jetbrains.kotlin.plugin.compose", version.ref = "kotlin" }
 screenshot = { id = "com.android.compose.screenshot", version.ref = "screenshot" }
\ No newline at end of file
diff --git a/gradle/wrapper/gradle-wrapper.properties b/gradle/wrapper/gradle-wrapper.properties
index 0ffc232..0ea1d9e 100644
--- a/gradle/wrapper/gradle-wrapper.properties
+++ b/gradle/wrapper/gradle-wrapper.properties
@@ -17,6 +17,6 @@
 #Mon Aug 26 16:14:13 PDT 2024
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-8.8-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-8.11.1-bin.zip
 zipStoreBase=GRADLE_USER_HOME
 zipStorePath=wrapper/dists