diff --git a/docs/_toc.yml b/docs/_toc.yml
index 03324de19..f4d52c5e1 100644
--- a/docs/_toc.yml
+++ b/docs/_toc.yml
@@ -54,6 +54,7 @@ subtrees:
         - entries:
           - file: guides/3D_interactivity
           - file: guides/axis-names
+          - file: guides/units
           - file: guides/handedness
           - file: guides/triangulation
           - file: guides/rendering
diff --git a/docs/getting_started/viewer.md b/docs/getting_started/viewer.md
index 2cdb04daf..35c563ae5 100644
--- a/docs/getting_started/viewer.md
+++ b/docs/getting_started/viewer.md
@@ -630,7 +630,7 @@ In napari there are two main types: canvas overlays - which are locked in positi
 
 The viewer gives access to a few such overlays:
 
-- Scale bar (canvas overlay, accessible via `viewer.scale_bar`): you may set its unit, length, and other parameters.
+- Scale bar (canvas overlay, accessible via `viewer.scale_bar`): it displays distances in world coordinates for the displayed scene. The scale bar usually inherits layer units when they are set. If inference fails it can fall back to a dimensionless label, and if displayed axes mix dimensionalities it uses the last displayed axis unit with a warning. You can control its appearance and fixed length from the viewer. See the [units guide](units-guide) for more information. 
 - Axes (scene overlay, accessible via `viewer.axes`): displays basis axes at the origin.
 - Text Overlay (canvas overlay, accessible via `viewer.text_overlay`): displays arbitrary text on the canvas.
 
diff --git a/docs/guides/index.md b/docs/guides/index.md
index 973c67de7..9e382e7f9 100644
--- a/docs/guides/index.md
+++ b/docs/guides/index.md
@@ -17,6 +17,9 @@ while you wait for a computation to finish, you may benefit from reading about
 
 If you are interested in using napari to explore 3D objects, see {ref}`3d-interactivity`.
 
+To understand how physical units propagate from layers into rendering and the
+scale bar, see {ref}`units-guide`.
+
 To understand how napari produces a 2- or 3-dimensional render in the canvas
 from layers’ n-dimensional array-like data, check out the {ref}`dedicated guide on rendering in napari <rendering>`.
 
diff --git a/docs/guides/units.md b/docs/guides/units.md
new file mode 100644
index 000000000..aa91c64a4
--- /dev/null
+++ b/docs/guides/units.md
@@ -0,0 +1,89 @@
+(units-guide)=
+
+# Scale and unit-aware rendering
+
+Units in napari describe the physical meaning of each layer axis. They work
+alongside layer transforms such as `scale` and `translate`, combining into a
+spatial transformation with dimensions that carry physical meaning.
+All layers of napari contain these transforms and `units` metadata, and they work
+together to determine how the layer is rendered and how it interacts with
+other unit-aware features, such as the scale bar.
+
+For interactive editing, the
+[napari-metadata](https://napari.org/napari-metadata/) plugin can expose
+layer scale and units in a dock widget.
+
+## Scale and units live on layers
+
+Scale and units are layer metadata. You can provide them when creating a layer or update
+them later from Python:
+
+```python
+import numpy as np
+import napari
+
+viewer = napari.Viewer()
+layer = viewer.add_image(
+    np.zeros((16, 32, 64)),
+    scale=(4, 0.25, 0.25),
+    units=('s', 'um', 'um'),
+)
+
+layer.units = ('usec','nm', 'nm')  # update units later
+```
+
+In this example, each pixel of the image layer is spaced by `0.25` micrometers along both axes.
+The scale is used to transform each layer from its data coordinates into rendered world coordinates,
+so both vector-based layers (points, shapes, vectors, tracks) and raster-based layers (images, labels)
+are affected by scale and units. 
+
+Units can be any valid [Pint](https://pint.readthedocs.io/en/stable/) unit,
+of which [there are a plethora](https://github.com/hgrecco/pint/blob/master/pint/default_en.txt)
+to serve many different disciplines.
+Pint also has logic to disambiguate unit names, for example,
+`'micrometer'`, `'um'`, and `'µm'` are all valid and will equate to `'µm'` in napari.
+
+If you do not set units, napari assumes pixels.
+To set *no* units, use `layer.units = ('dimensionless',...)`.
+
+## When units are consistent across layers
+
+napari can use units to render layers in the same physical space even when the
+numerical scale values are different. This matters when, for example, one layer
+is stored in nanometers and another is stored in micrometers.
+
+The gallery example {ref}`sphx_glr_gallery_units_impact_rendering.py` shows
+this directly: two image layers use different units and different scale values,
+but napari still aligns them in the same world coordinate system.
+
+## How the scale bar gets its units
+
+The scale bar is a viewer overlay, but its label is tied to the same world
+coordinates used to render the scene.
+If units are consistent across layers, the scale bar will automatically display
+the correct units and length to scale. If you do not provide units, napari falls
+back to pixels.
+
+If napari cannot infer a consistent layer-list unit, the scale bar becomes
+dimensionless. There is also one important special case: the scale bar label
+corresponds to the last displayed axis. If the displayed axes do not all have
+the same dimensionality, napari will warn that only the last displayed axis unit is being used.
+
+The gallery example {ref}`sphx_glr_gallery_scale_bar.py` focuses on scale bar
+appearance and layout. The gallery example
+{ref}`sphx_glr_gallery_units_impact_rendering.py` focuses on unit-aware world
+space. Taken together, they currently provide the clearest picture of how scale
+bar display and layer units interact.
+
+## What units do not do
+
+Units do not rename axes. Axis labels and units are related metadata, but they
+solve different problems:
+
+- axis labels describe what an axis represents, such as `time`, `z`, `y`, or
+  `x`
+- units describe the measurement system on that axis, such as `s`, `nm`, or
+  `pixel`
+
+For more about axis labels, broadcasting, and how layer metadata maps onto the
+viewer, see {ref}`axis-names`.
\ No newline at end of file