We present Hover Widgets, a new technique for increasing the capabilities of pen-based interfaces. Hover Widgets are implemented by using the pen movements above the display surface, in the tracking state. Short gestures while hovering, followed by a pen down, access the Hover Widgets, which can be used to activate localized interface widgets. By using the tracking state movements, Hover Widgets create a new command layer which is clearly distinct from the input layer of a pen interface. In a formal experiment Hover Widgets were found to be faster than a more traditional command activation technique, and also reduced errors due to divided attention. Author Keywords Hover Widgets, pen input, gestures, tablets. ACM Classification Keywords H5.2. Information interfaces and presentation (e.g., HCI): User Interfaces, Graphical user interfaces.