Tablets are attractive for design work anywhere, but 3D manipulations are notoriously difficult. We explore how engaging the stylus and multi-touch in concert can render such tasks easier. We introduce Bi-3D, an interaction concept where touch gestures are combined with 2D pen commands for 3D manipulation. For example, for a fast and intuitive 3D drag & drop technique: the pen drags the object on-screen, and parallel pinch-to-zoom moves it in the third dimension. In this paper, we describe the Bi-3D design space, crossing two-handed input and the degrees-of-freedom (DOF) of 3D manipulation and navigation tasks. We demonstrate sketching and manipulation tools in a prototype 3D design application, where users can fluidly combine 3D operations through alternating and parallel use of the modalities. We evaluate the core technique, bi-manual 3DOF input, against widget and mid-air baselines in an object movement task. We find that Bi-3D is a fast and practical way for multi-dimensional manipulation of graphical objects, promising to facilitate 3D design on stylus and tablet devices.