diff --git a/python/gui/layout/qgslayoutruler.sip b/python/gui/layout/qgslayoutruler.sip
index cd0d5ff19f3..9316109b843 100644
--- a/python/gui/layout/qgslayoutruler.sip
+++ b/python/gui/layout/qgslayoutruler.sip
@@ -72,6 +72,10 @@ class QgsLayoutRuler: QWidget
 
     virtual void mouseMoveEvent( QMouseEvent *event );
 
+    virtual void mousePressEvent( QMouseEvent *event );
+
+    virtual void mouseReleaseEvent( QMouseEvent *event );
+
 
   signals:
     void cursorPosChanged( QPointF );
diff --git a/src/core/layout/qgslayoutguidecollection.cpp b/src/core/layout/qgslayoutguidecollection.cpp
index 861fe5b8a80..73ed17d8323 100644
--- a/src/core/layout/qgslayoutguidecollection.cpp
+++ b/src/core/layout/qgslayoutguidecollection.cpp
@@ -80,7 +80,7 @@ void QgsLayoutGuide::update()
   switch ( mOrientation )
   {
     case Horizontal:
-      if ( layoutPos > page->rect().width() )
+      if ( layoutPos > page->rect().height() )
       {
         mLineItem->hide();
       }
@@ -93,7 +93,7 @@ void QgsLayoutGuide::update()
       break;
 
     case Vertical:
-      if ( layoutPos > page->rect().height() )
+      if ( layoutPos > page->rect().width() )
       {
         mLineItem->hide();
       }
diff --git a/src/gui/layout/qgslayoutruler.cpp b/src/gui/layout/qgslayoutruler.cpp
index 1b55093e8ba..dc8b18fe985 100644
--- a/src/gui/layout/qgslayoutruler.cpp
+++ b/src/gui/layout/qgslayoutruler.cpp
@@ -428,22 +428,118 @@ void QgsLayoutRuler::mouseMoveEvent( QMouseEvent *event )
   mMarkerPos = event->posF();
   update();
 
-  //update cursor position in status bar
-  QPointF displayPos = mTransform.inverted().map( event->posF() );
-  switch ( mOrientation )
+  QPointF displayPos;
+  if ( mCreatingGuide )
   {
-    case Qt::Horizontal:
+    // event -> layout coordinates
+    QgsLayout *layout = mView->currentLayout();
+    QPoint viewPoint  = mView->mapFromGlobal( mapToGlobal( event->pos() ) );
+    displayPos = mView->mapToScene( viewPoint );
+    int pageNo = layout->pageCollection()->pageNumberForPoint( displayPos );
+    QgsLayoutItemPage *page = layout->pageCollection()->page( pageNo );
+
+    switch ( mOrientation )
     {
-      //mouse is over a horizontal ruler, so don't show a y coordinate
-      displayPos.setY( 0 );
-      break;
+      case Qt::Horizontal:
+      {
+        //mouse is creating a horizontal ruler, so don't show x coordinate
+        mGuideItem->setLine( 0, displayPos.y(), page->rect().width(), displayPos.y() );
+        displayPos.setX( 0 );
+        break;
+      }
+      case Qt::Vertical:
+      {
+        //mouse is creating a vertical ruler, so don't show a y coordinate
+        mGuideItem->setLine( displayPos.x(), 0, displayPos.x(), page->rect().height() );
+        displayPos.setY( 0 );
+        break;
+      }
     }
-    case Qt::Vertical:
+  }
+  else
+  {
+    //update cursor position in status bar
+    displayPos = mTransform.inverted().map( event->posF() );
+    switch ( mOrientation )
     {
-      //mouse is over a vertical ruler, so don't show an x coordinate
-      displayPos.setX( 0 );
-      break;
+      case Qt::Horizontal:
+      {
+        //mouse is over a horizontal ruler, so don't show a y coordinate
+        displayPos.setY( 0 );
+        break;
+      }
+      case Qt::Vertical:
+      {
+        //mouse is over a vertical ruler, so don't show an x coordinate
+        displayPos.setX( 0 );
+        break;
+      }
     }
   }
   emit cursorPosChanged( displayPos );
 }
+
+void QgsLayoutRuler::mousePressEvent( QMouseEvent *event )
+{
+  if ( event->button() == Qt::LeftButton )
+  {
+    mCreatingGuide = true;
+    mGuideItem.reset( new QGraphicsLineItem() );
+
+    mGuideItem->setZValue( QgsLayout::ZGuide );
+    QPen linePen( Qt::DashLine );
+    linePen.setColor( Qt::red );
+    linePen.setWidthF( 0 );
+    mGuideItem->setPen( linePen );
+
+    mView->currentLayout()->addItem( mGuideItem.get() );
+
+    switch ( mOrientation )
+    {
+      case Qt::Horizontal:
+      {
+        QApplication::setOverrideCursor( Qt::SplitVCursor );
+        break;
+      }
+      case Qt::Vertical:
+        QApplication::setOverrideCursor( Qt::SplitHCursor );
+        break;
+    }
+  }
+}
+
+void QgsLayoutRuler::mouseReleaseEvent( QMouseEvent *event )
+{
+  if ( event->button() == Qt::LeftButton )
+  {
+    mCreatingGuide = false;
+    QApplication::restoreOverrideCursor();
+    mGuideItem.reset();
+
+    QgsLayout *layout = mView->currentLayout();
+
+    // create guide
+    QPoint viewPoint  = mView->mapFromGlobal( mapToGlobal( event->pos() ) );
+    QPointF scenePos = mView->mapToScene( viewPoint );
+    int page = layout->pageCollection()->pageNumberForPoint( scenePos );
+    std::unique_ptr< QgsLayoutGuide > guide;
+    switch ( mOrientation )
+    {
+      case Qt::Horizontal:
+      {
+        //mouse is creating a horizontal guide
+        double posOnPage = layout->pageCollection()->positionOnPage( scenePos ).y();
+        guide.reset( new QgsLayoutGuide( QgsLayoutGuide::Horizontal, QgsLayoutMeasurement( posOnPage, layout->units() ) ) );
+        break;
+      }
+      case Qt::Vertical:
+      {
+        //mouse is creating a vertical guide
+        guide.reset( new QgsLayoutGuide( QgsLayoutGuide::Vertical, QgsLayoutMeasurement( scenePos.x(), layout->units() ) ) );
+        break;
+      }
+    }
+    guide->setPage( page );
+    mView->currentLayout()->guides().addGuide( guide.release() );
+  }
+}
diff --git a/src/gui/layout/qgslayoutruler.h b/src/gui/layout/qgslayoutruler.h
index 246e7b1f081..01560bfe2c2 100644
--- a/src/gui/layout/qgslayoutruler.h
+++ b/src/gui/layout/qgslayoutruler.h
@@ -81,6 +81,8 @@ class GUI_EXPORT QgsLayoutRuler: public QWidget
   protected:
     void paintEvent( QPaintEvent *event ) override;
     void mouseMoveEvent( QMouseEvent *event ) override;
+    void mousePressEvent( QMouseEvent *event ) override;
+    void mouseReleaseEvent( QMouseEvent *event ) override;
 
   private:
     static const int VALID_SCALE_MULTIPLES[];
@@ -102,6 +104,9 @@ class GUI_EXPORT QgsLayoutRuler: public QWidget
     int mTextBaseline;
     int mMinSpacingVerticalLabels;
 
+    bool mCreatingGuide = false;
+    std::unique_ptr< QGraphicsLineItem > mGuideItem;
+
     //! Calculates the optimum labeled units for ruler so that labels are a good distance apart
     int optimumScale( double minPixelDiff, int &magnitude, int &multiple );