diff --git a/src/daemon.c b/src/daemon.c
index 3fb13c4..f74ee06 100644
--- a/src/daemon.c
+++ b/src/daemon.c
@@ -1,7 +1,5 @@
 #include "keyd.h"
 
-#define VKBD_NAME "keyd virtual keyboard"
-
 struct config_ent {
 	struct config config;
 	struct keyboard *kbd;
@@ -188,7 +186,7 @@ static void manage_device(struct device *dev)
 	uint8_t flags = 0;
 	struct config_ent *ent;
 
-	if (!strcmp(dev->name, VKBD_NAME))
+	if (dev->is_virtual)
 		return;
 
 	if (dev->capabilities & CAP_KEYBOARD)
@@ -425,6 +423,7 @@ static int event_handler(struct event *ev)
 			struct keyboard *kbd = ev->dev->data;
 			timeout_kbd = ev->dev->data;
 			switch (ev->devev->type) {
+			size_t i;
 			case DEV_KEY:
 				dbg("input %s %s", KEY_NAME(ev->devev->code), ev->devev->pressed ? "down" : "up");
 
@@ -479,6 +478,18 @@ static int event_handler(struct event *ev)
 				vkbd_mouse_scroll(vkbd, ev->devev->x, ev->devev->y);
 				break;
 			}
+		} else if (ev->dev->is_virtual && ev->devev->type == DEV_LED) {
+			size_t i;
+
+			/* 
+			 * Propagate LED events received by the virtual device from userspace
+			 * to all grabbed devices.
+			 *
+			 * NOTE/TODO: Account for potential layer_indicator interference
+			 */
+			for (i = 0; i < device_table_sz; i++)
+				if (device_table[i].data)
+					device_set_led(&device_table[i], ev->devev->code, ev->devev->pressed);
 		}
 
 		break;
diff --git a/src/device.c b/src/device.c
index a8503a9..e189c78 100644
--- a/src/device.c
+++ b/src/device.c
@@ -138,6 +138,7 @@ static int device_init(const char *path, struct device *dev)
 		dev->data = NULL;
 		dev->grabbed = 0;
 
+		dev->is_virtual = !strcmp(dev->name, VKBD_NAME);
 		return 0;
 	} else {
 		close(fd);
@@ -453,6 +454,12 @@ struct device_event *device_read_event(struct device *dev)
 
 		dbg2("key %s %s", KEY_NAME(devev.code), devev.pressed ? "down" : "up");
 
+		break;
+	case EV_LED:
+		devev.type = DEV_LED;
+		devev.code = ev.code;
+		devev.pressed = ev.value;
+
 		break;
 	default:
 		if (ev.type)
diff --git a/src/device.h b/src/device.h
index 83b54fe..6a8718b 100644
--- a/src/device.h
+++ b/src/device.h
@@ -25,6 +25,7 @@ struct device {
 	uint8_t capabilities;
 	uint16_t product_id;
 	uint16_t vendor_id;
+	uint8_t is_virtual;
 
 	char name[64];
 	char path[256];
@@ -42,6 +43,7 @@ struct device {
 struct device_event {
 	enum {
 		DEV_KEY,
+		DEV_LED,
 
 		DEV_MOUSE_MOVE,
 		/* All absolute values are relative to a resolution of 1024x1024. */
diff --git a/src/keyd.h b/src/keyd.h
index 8cf63bd..6318939 100644
--- a/src/keyd.h
+++ b/src/keyd.h
@@ -49,6 +49,7 @@
 #define MAX_IPC_MESSAGE_SIZE 4096
 
 #define ARRAY_SIZE(x) (int)(sizeof(x)/sizeof(x[0]))
+#define VKBD_NAME "keyd virtual keyboard"
 
 enum event_type {
 	EV_DEV_ADD,
diff --git a/src/vkbd/uinput.c b/src/vkbd/uinput.c
index 715f828..6c5f974 100644
--- a/src/vkbd/uinput.c
+++ b/src/vkbd/uinput.c
@@ -33,6 +33,7 @@ struct vkbd {
 
 static int create_virtual_keyboard(const char *name)
 {
+	int i;
 	int ret;
 	size_t code;
 	struct uinput_user_dev udev = {0};
@@ -53,6 +54,11 @@ static int create_virtual_keyboard(const char *name)
 		exit(-1);
 	}
 
+	if (ioctl(fd, UI_SET_EVBIT, EV_LED)) {
+		perror("ioctl set_evbit");
+		exit(-1);
+	}
+
 	if (ioctl(fd, UI_SET_EVBIT, EV_SYN)) {
 		perror("ioctl set_evbit");
 		exit(-1);
@@ -67,6 +73,12 @@ static int create_virtual_keyboard(const char *name)
 		}
 	}
 
+	for (i = LED_NUML; i <= LED_MISC; i++)
+		if (ioctl(fd, UI_SET_LEDBIT, i)) {
+			perror("ioctl set_ledbit");
+			exit(-1);
+		}
+
 	if (ioctl(fd, UI_SET_KEYBIT, KEY_ZOOM)) {
 		perror("ioctl set_keybit");
 		exit(-1);