diff --git a/crates/gpui2/src/app.rs b/crates/gpui2/src/app.rs
index d04893b092f6e2b121dfcb7ab84a241d2ac89651..a2227cd984472aff4368416413d97febb0d29eda 100644
--- a/crates/gpui2/src/app.rs
+++ b/crates/gpui2/src/app.rs
@@ -9,11 +9,11 @@ use refineable::Refineable;
 use smallvec::SmallVec;
 
 use crate::{
-    current_platform, image_cache::ImageCache, Action, AppMetadata, AssetSource, Context,
-    DispatchPhase, DisplayId, Executor, FocusEvent, FocusHandle, FocusId, KeyBinding, Keymap,
-    LayoutId, MainThread, MainThreadOnly, Platform, SharedString, SubscriberSet, Subscription,
-    SvgRenderer, Task, TextStyle, TextStyleRefinement, TextSystem, View, Window, WindowContext,
-    WindowHandle, WindowId,
+    current_platform, image_cache::ImageCache, Action, AnyBox, AnyView, AppMetadata, AssetSource,
+    Context, DispatchPhase, DisplayId, Executor, FocusEvent, FocusHandle, FocusId, KeyBinding,
+    Keymap, LayoutId, MainThread, MainThreadOnly, Pixels, Platform, Point, SharedString,
+    SubscriberSet, Subscription, SvgRenderer, Task, TextStyle, TextStyleRefinement, TextSystem,
+    View, Window, WindowContext, WindowHandle, WindowId,
 };
 use anyhow::{anyhow, Result};
 use collections::{HashMap, HashSet, VecDeque};
@@ -93,6 +93,7 @@ impl App {
                 quit_observers: SubscriberSet::new(),
                 layout_id_buffer: Default::default(),
                 propagate_event: true,
+                active_drag: None,
             })
         }))
     }
@@ -171,6 +172,7 @@ pub struct AppContext {
     text_system: Arc<TextSystem>,
     flushing_effects: bool,
     pending_updates: usize,
+    pub(crate) active_drag: Option<AnyDrag>,
     pub(crate) next_frame_callbacks: HashMap<DisplayId, Vec<FrameCallback>>,
     pub(crate) executor: Executor,
     pub(crate) svg_renderer: SvgRenderer,
@@ -758,6 +760,13 @@ pub(crate) enum Effect {
     },
 }
 
+pub(crate) struct AnyDrag {
+    pub drag_handle_view: AnyView,
+    pub cursor_offset: Point<Pixels>,
+    pub state: AnyBox,
+    pub state_type: TypeId,
+}
+
 #[cfg(test)]
 mod tests {
     use super::AppContext;
diff --git a/crates/gpui2/src/color.rs b/crates/gpui2/src/color.rs
index d05caba1a6e9bf923c02680d2e634f64ec0f9b92..f6ea2549ec94db1379d19d8066d1f3ade8a3250f 100644
--- a/crates/gpui2/src/color.rs
+++ b/crates/gpui2/src/color.rs
@@ -155,6 +155,15 @@ pub fn white() -> Hsla {
     }
 }
 
+pub fn red() -> Hsla {
+    Hsla {
+        h: 0.,
+        s: 1.,
+        l: 0.5,
+        a: 1.,
+    }
+}
+
 impl Hsla {
     /// Returns true if the HSLA color is fully transparent, false otherwise.
     pub fn is_transparent(&self) -> bool {
diff --git a/crates/gpui2/src/elements/div.rs b/crates/gpui2/src/elements/div.rs
index e955309112071a863ff1386bba9857b48b6442ab..2753d5f8fb290453ea4b8741b74249d6f2e0c5de 100644
--- a/crates/gpui2/src/elements/div.rs
+++ b/crates/gpui2/src/elements/div.rs
@@ -298,7 +298,7 @@ where
                     style.apply_text_style(cx, |cx| {
                         style.apply_overflow(bounds, cx, |cx| {
                             let scroll_offset = element_state.interactive.scroll_offset();
-                            cx.with_scroll_offset(scroll_offset, |cx| {
+                            cx.with_element_offset(scroll_offset, |cx| {
                                 for child in &mut this.children {
                                     child.paint(view_state, cx);
                                 }
@@ -354,7 +354,7 @@ where
     F: ElementFocus<V>,
     V: 'static + Send + Sync,
 {
-    fn stateless_interactivity(&mut self) -> &mut StatelessInteraction<V> {
+    fn stateless_interaction(&mut self) -> &mut StatelessInteraction<V> {
         self.interaction.as_stateless_mut()
     }
 }
@@ -364,7 +364,7 @@ where
     F: ElementFocus<V>,
     V: 'static + Send + Sync,
 {
-    fn stateful_interactivity(&mut self) -> &mut StatefulInteraction<Self::ViewState> {
+    fn stateful_interaction(&mut self) -> &mut StatefulInteraction<Self::ViewState> {
         &mut self.interaction
     }
 }
diff --git a/crates/gpui2/src/elements/img.rs b/crates/gpui2/src/elements/img.rs
index 50e9e29fc58f2fb79ba6ca43d1be8cf752d8b0ae..713bc8b98dbf667eb75957a382a07d1e0961a634 100644
--- a/crates/gpui2/src/elements/img.rs
+++ b/crates/gpui2/src/elements/img.rs
@@ -156,8 +156,8 @@ where
     I: ElementInteraction<V>,
     F: ElementFocus<V>,
 {
-    fn stateless_interactivity(&mut self) -> &mut StatelessInteraction<V> {
-        self.base.stateless_interactivity()
+    fn stateless_interaction(&mut self) -> &mut StatelessInteraction<V> {
+        self.base.stateless_interaction()
     }
 }
 
@@ -166,8 +166,8 @@ where
     V: 'static + Send + Sync,
     F: ElementFocus<V>,
 {
-    fn stateful_interactivity(&mut self) -> &mut StatefulInteraction<Self::ViewState> {
-        self.base.stateful_interactivity()
+    fn stateful_interaction(&mut self) -> &mut StatefulInteraction<Self::ViewState> {
+        self.base.stateful_interaction()
     }
 }
 
diff --git a/crates/gpui2/src/elements/svg.rs b/crates/gpui2/src/elements/svg.rs
index fd55296a3a6aff6ac221614685154c16273b949d..3785ce480e16a2979addd3604ecc1ec66403b8d5 100644
--- a/crates/gpui2/src/elements/svg.rs
+++ b/crates/gpui2/src/elements/svg.rs
@@ -130,8 +130,8 @@ where
     I: ElementInteraction<V>,
     F: ElementFocus<V>,
 {
-    fn stateless_interactivity(&mut self) -> &mut StatelessInteraction<V> {
-        self.base.stateless_interactivity()
+    fn stateless_interaction(&mut self) -> &mut StatelessInteraction<V> {
+        self.base.stateless_interaction()
     }
 }
 
@@ -140,8 +140,8 @@ where
     V: 'static + Send + Sync,
     F: ElementFocus<V>,
 {
-    fn stateful_interactivity(&mut self) -> &mut StatefulInteraction<Self::ViewState> {
-        self.base.stateful_interactivity()
+    fn stateful_interaction(&mut self) -> &mut StatefulInteraction<Self::ViewState> {
+        self.base.stateful_interaction()
     }
 }
 
diff --git a/crates/gpui2/src/geometry.rs b/crates/gpui2/src/geometry.rs
index 08602352eea82ce31b6c154e87dbbc6b11585d46..95fa6c23535544c1a4433a266319690515e50823 100644
--- a/crates/gpui2/src/geometry.rs
+++ b/crates/gpui2/src/geometry.rs
@@ -39,6 +39,10 @@ impl Point<Pixels> {
             y: self.y.scale(factor),
         }
     }
+
+    pub fn magnitude(&self) -> f64 {
+        ((self.x.0.powi(2) + self.y.0.powi(2)) as f64).sqrt()
+    }
 }
 
 impl<T, Rhs> Mul<Rhs> for Point<T>
diff --git a/crates/gpui2/src/interactive.rs b/crates/gpui2/src/interactive.rs
index 475cbb75a470427b5c33f3356c6f6f0cbb59364f..aa8cbf4826e9f9218e3fe6ba814e477a70e8d65e 100644
--- a/crates/gpui2/src/interactive.rs
+++ b/crates/gpui2/src/interactive.rs
@@ -1,7 +1,7 @@
 use crate::{
-    point, px, Action, AppContext, BorrowWindow, Bounds, DispatchContext, DispatchPhase, Element,
-    ElementId, FocusHandle, KeyMatch, Keystroke, Modifiers, Overflow, Pixels, Point, SharedString,
-    Size, Style, StyleRefinement, ViewContext,
+    point, px, view, Action, AnyBox, AnyDrag, AppContext, BorrowWindow, Bounds, DispatchContext,
+    DispatchPhase, Element, ElementId, FocusHandle, KeyMatch, Keystroke, Modifiers, Overflow,
+    Pixels, Point, SharedString, Size, Style, StyleRefinement, ViewContext,
 };
 use collections::HashMap;
 use derive_more::{Deref, DerefMut};
@@ -11,18 +11,21 @@ use smallvec::SmallVec;
 use std::{
     any::{Any, TypeId},
     fmt::Debug,
+    marker::PhantomData,
     ops::Deref,
     sync::Arc,
 };
 
+const DRAG_THRESHOLD: f64 = 2.;
+
 pub trait StatelessInteractive: Element {
-    fn stateless_interactivity(&mut self) -> &mut StatelessInteraction<Self::ViewState>;
+    fn stateless_interaction(&mut self) -> &mut StatelessInteraction<Self::ViewState>;
 
     fn hover(mut self, f: impl FnOnce(StyleRefinement) -> StyleRefinement) -> Self
     where
         Self: Sized,
     {
-        self.stateless_interactivity().hover_style = f(StyleRefinement::default());
+        self.stateless_interaction().hover_style = f(StyleRefinement::default());
         self
     }
 
@@ -34,7 +37,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity().group_hover_style = Some(GroupStyle {
+        self.stateless_interaction().group_hover_style = Some(GroupStyle {
             group: group_name.into(),
             style: f(StyleRefinement::default()),
         });
@@ -52,7 +55,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity()
+        self.stateless_interaction()
             .mouse_down_listeners
             .push(Arc::new(move |view, event, bounds, phase, cx| {
                 if phase == DispatchPhase::Bubble
@@ -76,7 +79,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity()
+        self.stateless_interaction()
             .mouse_up_listeners
             .push(Arc::new(move |view, event, bounds, phase, cx| {
                 if phase == DispatchPhase::Bubble
@@ -100,7 +103,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity()
+        self.stateless_interaction()
             .mouse_down_listeners
             .push(Arc::new(move |view, event, bounds, phase, cx| {
                 if phase == DispatchPhase::Capture
@@ -124,7 +127,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity()
+        self.stateless_interaction()
             .mouse_up_listeners
             .push(Arc::new(move |view, event, bounds, phase, cx| {
                 if phase == DispatchPhase::Capture
@@ -147,7 +150,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity()
+        self.stateless_interaction()
             .mouse_move_listeners
             .push(Arc::new(move |view, event, bounds, phase, cx| {
                 if phase == DispatchPhase::Bubble && bounds.contains_point(&event.position) {
@@ -167,7 +170,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity()
+        self.stateless_interaction()
             .scroll_wheel_listeners
             .push(Arc::new(move |view, event, bounds, phase, cx| {
                 if phase == DispatchPhase::Bubble && bounds.contains_point(&event.position) {
@@ -183,7 +186,7 @@ pub trait StatelessInteractive: Element {
         C: TryInto<DispatchContext>,
         C::Error: Debug,
     {
-        self.stateless_interactivity().dispatch_context =
+        self.stateless_interaction().dispatch_context =
             context.try_into().expect("invalid dispatch context");
         self
     }
@@ -198,7 +201,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity().key_listeners.push((
+        self.stateless_interaction().key_listeners.push((
             TypeId::of::<A>(),
             Arc::new(move |view, event, _, phase, cx| {
                 let event = event.downcast_ref().unwrap();
@@ -223,7 +226,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity().key_listeners.push((
+        self.stateless_interaction().key_listeners.push((
             TypeId::of::<KeyDownEvent>(),
             Arc::new(move |view, event, _, phase, cx| {
                 let event = event.downcast_ref().unwrap();
@@ -244,7 +247,7 @@ pub trait StatelessInteractive: Element {
     where
         Self: Sized,
     {
-        self.stateless_interactivity().key_listeners.push((
+        self.stateless_interaction().key_listeners.push((
             TypeId::of::<KeyUpEvent>(),
             Arc::new(move |view, event, _, phase, cx| {
                 let event = event.downcast_ref().unwrap();
@@ -254,16 +257,63 @@ pub trait StatelessInteractive: Element {
         ));
         self
     }
+
+    fn drag_over<S: 'static>(mut self, f: impl FnOnce(StyleRefinement) -> StyleRefinement) -> Self
+    where
+        Self: Sized,
+    {
+        self.stateless_interaction()
+            .drag_over_styles
+            .push((TypeId::of::<S>(), f(StyleRefinement::default())));
+        self
+    }
+
+    fn group_drag_over<S: 'static>(
+        mut self,
+        group_name: impl Into<SharedString>,
+        f: impl FnOnce(StyleRefinement) -> StyleRefinement,
+    ) -> Self
+    where
+        Self: Sized,
+    {
+        self.stateless_interaction().group_drag_over_styles.push((
+            TypeId::of::<S>(),
+            GroupStyle {
+                group: group_name.into(),
+                style: f(StyleRefinement::default()),
+            },
+        ));
+        self
+    }
+
+    fn on_drop<S: 'static>(
+        mut self,
+        listener: impl Fn(&mut Self::ViewState, S, &mut ViewContext<Self::ViewState>)
+            + Send
+            + Sync
+            + 'static,
+    ) -> Self
+    where
+        Self: Sized,
+    {
+        self.stateless_interaction().drop_listeners.push((
+            TypeId::of::<S>(),
+            Arc::new(move |view, drag_state, cx| {
+                listener(view, *drag_state.downcast().unwrap(), cx);
+            }),
+        ));
+        self
+    }
 }
 
 pub trait StatefulInteractive: StatelessInteractive {
-    fn stateful_interactivity(&mut self) -> &mut StatefulInteraction<Self::ViewState>;
+    fn stateful_interaction(&mut self) -> &mut StatefulInteraction<Self::ViewState>;
 
     fn active(mut self, f: impl FnOnce(StyleRefinement) -> StyleRefinement) -> Self
     where
         Self: Sized,
     {
-        self.stateful_interactivity().active_style = f(StyleRefinement::default());
+        self.stateful_interaction().active_style = f(StyleRefinement::default());
         self
     }
 
@@ -275,7 +325,7 @@ pub trait StatefulInteractive: StatelessInteractive {
     where
         Self: Sized,
     {
-        self.stateful_interactivity().group_active_style = Some(GroupStyle {
+        self.stateful_interaction().group_active_style = Some(GroupStyle {
             group: group_name.into(),
             style: f(StyleRefinement::default()),
         });
@@ -284,17 +334,55 @@ pub trait StatefulInteractive: StatelessInteractive {
 
     fn on_click(
         mut self,
-        handler: impl Fn(&mut Self::ViewState, &MouseClickEvent, &mut ViewContext<Self::ViewState>)
+        listener: impl Fn(&mut Self::ViewState, &ClickEvent, &mut ViewContext<Self::ViewState>)
+            + Send
+            + Sync
+            + 'static,
+    ) -> Self
+    where
+        Self: Sized,
+    {
+        self.stateful_interaction()
+            .click_listeners
+            .push(Arc::new(move |view, event, cx| listener(view, event, cx)));
+        self
+    }
+
+    fn on_drag<S, R, E>(
+        mut self,
+        listener: impl Fn(
+                &mut Self::ViewState,
+                &mut ViewContext<Self::ViewState>,
+            ) -> Drag<S, R, Self::ViewState, E>
             + Send
             + Sync
             + 'static,
     ) -> Self
     where
         Self: Sized,
+        S: 'static + Send + Sync,
+        R: 'static + Fn(&mut Self::ViewState, &mut ViewContext<Self::ViewState>) -> E + Send + Sync,
+        E: Element<ViewState = Self::ViewState>,
     {
-        self.stateful_interactivity()
-            .mouse_click_listeners
-            .push(Arc::new(move |view, event, cx| handler(view, event, cx)));
+        debug_assert!(
+            self.stateful_interaction().drag_listener.is_none(),
+            "calling on_drag more than once on the same element is not supported"
+        );
+        self.stateful_interaction().drag_listener =
+            Some(Arc::new(move |view_state, cursor_offset, cx| {
+                let drag = listener(view_state, cx);
+                let view_handle = cx.handle().upgrade().unwrap();
+                let drag_handle_view = view(view_handle, move |view_state, cx| {
+                    (drag.render_drag_handle)(view_state, cx)
+                })
+                .into_any();
+                AnyDrag {
+                    drag_handle_view,
+                    cursor_offset,
+                    state: Box::new(drag.state),
+                    state_type: TypeId::of::<S>(),
+                }
+            }));
         self
     }
 }
@@ -359,6 +447,26 @@ pub trait ElementInteraction<V: 'static + Send + Sync>: 'static + Send + Sync {
             style.refine(&stateless.hover_style);
         }
 
+        if let Some(drag) = cx.active_drag.take() {
+            for (state_type, group_drag_style) in &self.as_stateless().group_drag_over_styles {
+                if let Some(group_bounds) = GroupBounds::get(&group_drag_style.group, cx) {
+                    if *state_type == drag.state_type
+                        && group_bounds.contains_point(&mouse_position)
+                    {
+                        style.refine(&group_drag_style.style);
+                    }
+                }
+            }
+
+            for (state_type, drag_over_style) in &self.as_stateless().drag_over_styles {
+                if *state_type == drag.state_type && bounds.contains_point(&mouse_position) {
+                    style.refine(drag_over_style);
+                }
+            }
+
+            cx.active_drag = Some(drag);
+        }
+
         if let Some(stateful) = self.as_stateful() {
             let active_state = element_state.active_state.lock();
             if active_state.group {
@@ -411,38 +519,104 @@ pub trait ElementInteraction<V: 'static + Send + Sync>: 'static + Send + Sync {
             .and_then(|group_hover| GroupBounds::get(&group_hover.group, cx));
 
         if let Some(group_bounds) = hover_group_bounds {
-            paint_hover_listener(group_bounds, cx);
+            let hovered = group_bounds.contains_point(&cx.mouse_position());
+            cx.on_mouse_event(move |_, event: &MouseMoveEvent, phase, cx| {
+                if phase == DispatchPhase::Capture {
+                    if group_bounds.contains_point(&event.position) != hovered {
+                        cx.notify();
+                    }
+                }
+            });
         }
 
-        if stateless.hover_style.is_some() {
-            paint_hover_listener(bounds, cx);
+        if stateless.hover_style.is_some()
+            || (cx.active_drag.is_some() && !stateless.drag_over_styles.is_empty())
+        {
+            let hovered = bounds.contains_point(&cx.mouse_position());
+            cx.on_mouse_event(move |_, event: &MouseMoveEvent, phase, cx| {
+                if phase == DispatchPhase::Capture {
+                    if bounds.contains_point(&event.position) != hovered {
+                        cx.notify();
+                    }
+                }
+            });
         }
 
-        if let Some(stateful) = self.as_stateful() {
-            let click_listeners = stateful.mouse_click_listeners.clone();
-
-            let pending_click = element_state.pending_click.clone();
-            let mouse_down = pending_click.lock().clone();
-            if let Some(mouse_down) = mouse_down {
-                cx.on_mouse_event(move |state, event: &MouseUpEvent, phase, cx| {
-                    if phase == DispatchPhase::Bubble && bounds.contains_point(&event.position) {
-                        let mouse_click = MouseClickEvent {
-                            down: mouse_down.clone(),
-                            up: event.clone(),
-                        };
-                        for listener in &click_listeners {
-                            listener(state, &mouse_click, cx);
+        if cx.active_drag.is_some() {
+            let drop_listeners = stateless.drop_listeners.clone();
+            cx.on_mouse_event(move |view, event: &MouseUpEvent, phase, cx| {
+                if phase == DispatchPhase::Bubble && bounds.contains_point(&event.position) {
+                    if let Some(drag_state_type) =
+                        cx.active_drag.as_ref().map(|drag| drag.state_type)
+                    {
+                        for (drop_state_type, listener) in &drop_listeners {
+                            if *drop_state_type == drag_state_type {
+                                let drag = cx
+                                    .active_drag
+                                    .take()
+                                    .expect("checked for type drag state type above");
+                                listener(view, drag.state, cx);
+                                cx.notify();
+                                cx.stop_propagation();
+                            }
                         }
                     }
+                }
+            });
+        }
 
-                    *pending_click.lock() = None;
-                });
-            } else {
-                cx.on_mouse_event(move |_state, event: &MouseDownEvent, phase, _cx| {
-                    if phase == DispatchPhase::Bubble && bounds.contains_point(&event.position) {
-                        *pending_click.lock() = Some(event.clone());
+        if let Some(stateful) = self.as_stateful() {
+            let click_listeners = stateful.click_listeners.clone();
+            let drag_listener = stateful.drag_listener.clone();
+
+            if !click_listeners.is_empty() || drag_listener.is_some() {
+                let pending_mouse_down = element_state.pending_mouse_down.clone();
+                let mouse_down = pending_mouse_down.lock().clone();
+                if let Some(mouse_down) = mouse_down {
+                    if let Some(drag_listener) = drag_listener {
+                        let active_state = element_state.active_state.clone();
+
+                        cx.on_mouse_event(move |view_state, event: &MouseMoveEvent, phase, cx| {
+                            if cx.active_drag.is_some() {
+                                if phase == DispatchPhase::Capture {
+                                    cx.notify();
+                                }
+                            } else if phase == DispatchPhase::Bubble
+                                && bounds.contains_point(&event.position)
+                                && (event.position - mouse_down.position).magnitude()
+                                    > DRAG_THRESHOLD
+                            {
+                                *active_state.lock() = ActiveState::default();
+                                let cursor_offset = event.position - bounds.origin;
+                                let drag = drag_listener(view_state, cursor_offset, cx);
+                                cx.active_drag = Some(drag);
+                                cx.notify();
+                                cx.stop_propagation();
+                            }
+                        });
                     }
-                });
+
+                    cx.on_mouse_event(move |view_state, event: &MouseUpEvent, phase, cx| {
+                        if phase == DispatchPhase::Bubble && bounds.contains_point(&event.position)
+                        {
+                            let mouse_click = ClickEvent {
+                                down: mouse_down.clone(),
+                                up: event.clone(),
+                            };
+                            for listener in &click_listeners {
+                                listener(view_state, &mouse_click, cx);
+                            }
+                        }
+                        *pending_mouse_down.lock() = None;
+                    });
+                } else {
+                    cx.on_mouse_event(move |_state, event: &MouseDownEvent, phase, _cx| {
+                        if phase == DispatchPhase::Bubble && bounds.contains_point(&event.position)
+                        {
+                            *pending_mouse_down.lock() = Some(event.clone());
+                        }
+                    });
+                }
             }
 
             let active_state = element_state.active_state.clone();
@@ -487,12 +661,12 @@ pub trait ElementInteraction<V: 'static + Send + Sync>: 'static + Send + Sync {
 
                         if overflow.x == Overflow::Scroll {
                             scroll_offset.x =
-                                (scroll_offset.x - delta.x).clamp(px(0.), scroll_max.width);
+                                (scroll_offset.x + delta.x).clamp(-scroll_max.width, px(0.));
                         }
 
                         if overflow.y == Overflow::Scroll {
                             scroll_offset.y =
-                                (scroll_offset.y - delta.y).clamp(px(0.), scroll_max.height);
+                                (scroll_offset.y + delta.y).clamp(-scroll_max.height, px(0.));
                         }
 
                         if *scroll_offset != old_scroll_offset {
@@ -506,29 +680,16 @@ pub trait ElementInteraction<V: 'static + Send + Sync>: 'static + Send + Sync {
     }
 }
 
-fn paint_hover_listener<V>(bounds: Bounds<Pixels>, cx: &mut ViewContext<V>)
-where
-    V: 'static + Send + Sync,
-{
-    let hovered = bounds.contains_point(&cx.mouse_position());
-    cx.on_mouse_event(move |_, event: &MouseMoveEvent, phase, cx| {
-        if phase == DispatchPhase::Capture {
-            if bounds.contains_point(&event.position) != hovered {
-                cx.notify();
-            }
-        }
-    });
-}
-
 #[derive(Deref, DerefMut)]
 pub struct StatefulInteraction<V: 'static + Send + Sync> {
     pub id: ElementId,
     #[deref]
     #[deref_mut]
     stateless: StatelessInteraction<V>,
-    pub mouse_click_listeners: SmallVec<[MouseClickListener<V>; 2]>,
-    pub active_style: StyleRefinement,
-    pub group_active_style: Option<GroupStyle>,
+    click_listeners: SmallVec<[ClickListener<V>; 2]>,
+    active_style: StyleRefinement,
+    group_active_style: Option<GroupStyle>,
+    drag_listener: Option<DragListener<V>>,
 }
 
 impl<V> ElementInteraction<V> for StatefulInteraction<V>
@@ -560,13 +721,16 @@ where
         Self {
             id,
             stateless: StatelessInteraction::default(),
-            mouse_click_listeners: SmallVec::new(),
+            click_listeners: SmallVec::new(),
+            drag_listener: None,
             active_style: StyleRefinement::default(),
             group_active_style: None,
         }
     }
 }
 
+type DropListener<V> = dyn Fn(&mut V, AnyBox, &mut ViewContext<V>) + Send + Sync;
+
 pub struct StatelessInteraction<V> {
     pub dispatch_context: DispatchContext,
     pub mouse_down_listeners: SmallVec<[MouseDownListener<V>; 2]>,
@@ -576,6 +740,9 @@ pub struct StatelessInteraction<V> {
     pub key_listeners: SmallVec<[(TypeId, KeyListener<V>); 32]>,
     pub hover_style: StyleRefinement,
     pub group_hover_style: Option<GroupStyle>,
+    drag_over_styles: SmallVec<[(TypeId, StyleRefinement); 2]>,
+    group_drag_over_styles: SmallVec<[(TypeId, GroupStyle); 2]>,
+    drop_listeners: SmallVec<[(TypeId, Arc<DropListener<V>>); 2]>,
 }
 
 impl<V> StatelessInteraction<V>
@@ -586,7 +753,8 @@ where
         StatefulInteraction {
             id: id.into(),
             stateless: self,
-            mouse_click_listeners: SmallVec::new(),
+            click_listeners: SmallVec::new(),
+            drag_listener: None,
             active_style: StyleRefinement::default(),
             group_active_style: None,
         }
@@ -642,7 +810,7 @@ impl ActiveState {
 #[derive(Default)]
 pub struct InteractiveElementState {
     active_state: Arc<Mutex<ActiveState>>,
-    pending_click: Arc<Mutex<Option<MouseDownEvent>>>,
+    pending_mouse_down: Arc<Mutex<Option<MouseDownEvent>>>,
     scroll_offset: Option<Arc<Mutex<Point<Pixels>>>>,
 }
 
@@ -665,6 +833,9 @@ impl<V> Default for StatelessInteraction<V> {
             key_listeners: SmallVec::new(),
             hover_style: StyleRefinement::default(),
             group_hover_style: None,
+            drag_over_styles: SmallVec::new(),
+            group_drag_over_styles: SmallVec::new(),
+            drop_listeners: SmallVec::new(),
         }
     }
 }
@@ -740,11 +911,39 @@ pub struct MouseUpEvent {
 }
 
 #[derive(Clone, Debug, Default)]
-pub struct MouseClickEvent {
+pub struct ClickEvent {
     pub down: MouseDownEvent,
     pub up: MouseUpEvent,
 }
 
+pub struct Drag<S, R, V, E>
+where
+    S: 'static + Send + Sync,
+    R: Fn(&mut V, &mut ViewContext<V>) -> E,
+    V: 'static + Send + Sync,
+    E: Element<ViewState = V>,
+{
+    pub state: S,
+    pub render_drag_handle: R,
+    view_type: PhantomData<V>,
+}
+
+impl<S, R, V, E> Drag<S, R, V, E>
+where
+    S: 'static + Send + Sync,
+    R: Fn(&mut V, &mut ViewContext<V>) -> E + Send + Sync,
+    V: 'static + Send + Sync,
+    E: Element<ViewState = V>,
+{
+    pub fn new(state: S, render_drag_handle: R) -> Self {
+        Drag {
+            state,
+            render_drag_handle,
+            view_type: PhantomData,
+        }
+    }
+}
+
 #[derive(Hash, PartialEq, Eq, Copy, Clone, Debug)]
 pub enum MouseButton {
     Left,
@@ -919,8 +1118,6 @@ pub type MouseUpListener<V> = Arc<
         + Sync
         + 'static,
 >;
-pub type MouseClickListener<V> =
-    Arc<dyn Fn(&mut V, &MouseClickEvent, &mut ViewContext<V>) + Send + Sync + 'static>;
 
 pub type MouseMoveListener<V> = Arc<
     dyn Fn(&mut V, &MouseMoveEvent, &Bounds<Pixels>, DispatchPhase, &mut ViewContext<V>)
@@ -936,6 +1133,12 @@ pub type ScrollWheelListener<V> = Arc<
         + 'static,
 >;
 
+pub type ClickListener<V> =
+    Arc<dyn Fn(&mut V, &ClickEvent, &mut ViewContext<V>) + Send + Sync + 'static>;
+
+pub(crate) type DragListener<V> =
+    Arc<dyn Fn(&mut V, Point<Pixels>, &mut ViewContext<V>) -> AnyDrag + Send + Sync + 'static>;
+
 pub type KeyListener<V> = Arc<
     dyn Fn(
             &mut V,
diff --git a/crates/gpui2/src/taffy.rs b/crates/gpui2/src/taffy.rs
index 71844bb8a631bb0820ebbcadaf8e4131aef0eeb3..cee0f7592f0427490045efd8b93736282ca86fcf 100644
--- a/crates/gpui2/src/taffy.rs
+++ b/crates/gpui2/src/taffy.rs
@@ -129,7 +129,7 @@ impl TaffyLayoutEngine {
         self.taffy
             .compute_layout(id.into(), available_space.into())
             .expect(EXPECT_MESSAGE);
-        println!("compute_layout took {:?}", started_at.elapsed());
+        // println!("compute_layout took {:?}", started_at.elapsed());
     }
 
     pub fn layout_bounds(&mut self, id: LayoutId) -> Bounds<Pixels> {
diff --git a/crates/gpui2/src/window.rs b/crates/gpui2/src/window.rs
index 6712e4cec6877c0896d234da3793faa6618f9035..cb07376fe34a1c1ca73c38140fdf8967268c5cd5 100644
--- a/crates/gpui2/src/window.rs
+++ b/crates/gpui2/src/window.rs
@@ -1,13 +1,13 @@
 use crate::{
-    px, size, Action, AnyBox, AnyView, AppContext, AsyncWindowContext, AvailableSpace,
+    px, size, Action, AnyBox, AnyDrag, AnyView, AppContext, AsyncWindowContext, AvailableSpace,
     BorrowAppContext, Bounds, BoxShadow, Context, Corners, DevicePixels, DispatchContext,
     DisplayId, Edges, Effect, Element, EntityId, EventEmitter, FocusEvent, FontId, GlobalElementId,
     GlyphId, Handle, Hsla, ImageData, InputEvent, IsZero, KeyListener, KeyMatch, KeyMatcher,
-    Keystroke, LayoutId, MainThread, MainThreadOnly, MonochromeSprite, MouseMoveEvent, Path,
-    Pixels, Platform, PlatformAtlas, PlatformWindow, Point, PolychromeSprite, Quad, Reference,
-    RenderGlyphParams, RenderImageParams, RenderSvgParams, ScaledPixels, SceneBuilder, Shadow,
-    SharedString, Size, Style, Subscription, TaffyLayoutEngine, Task, Underline, UnderlineStyle,
-    WeakHandle, WindowOptions, SUBPIXEL_VARIANTS,
+    Keystroke, LayoutId, MainThread, MainThreadOnly, MonochromeSprite, MouseMoveEvent,
+    MouseUpEvent, Path, Pixels, Platform, PlatformAtlas, PlatformWindow, Point, PolychromeSprite,
+    Quad, Reference, RenderGlyphParams, RenderImageParams, RenderSvgParams, ScaledPixels,
+    SceneBuilder, Shadow, SharedString, Size, Style, Subscription, TaffyLayoutEngine, Task,
+    Underline, UnderlineStyle, WeakHandle, WindowOptions, SUBPIXEL_VARIANTS,
 };
 use anyhow::Result;
 use collections::HashMap;
@@ -159,7 +159,7 @@ pub struct Window {
     key_matchers: HashMap<GlobalElementId, KeyMatcher>,
     z_index_stack: StackingOrder,
     content_mask_stack: Vec<ContentMask<Pixels>>,
-    scroll_offset_stack: Vec<Point<Pixels>>,
+    element_offset_stack: Vec<Point<Pixels>>,
     mouse_listeners: HashMap<TypeId, Vec<(StackingOrder, AnyListener)>>,
     key_dispatch_stack: Vec<KeyDispatchStackFrame>,
     freeze_key_dispatch_stack: bool,
@@ -177,7 +177,7 @@ pub struct Window {
 }
 
 impl Window {
-    pub fn new(
+    pub(crate) fn new(
         handle: AnyWindowHandle,
         options: WindowOptions,
         cx: &mut MainThread<AppContext>,
@@ -234,7 +234,7 @@ impl Window {
             key_matchers: HashMap::default(),
             z_index_stack: StackingOrder(SmallVec::new()),
             content_mask_stack: Vec::new(),
-            scroll_offset_stack: Vec::new(),
+            element_offset_stack: Vec::new(),
             mouse_listeners: HashMap::default(),
             key_dispatch_stack: Vec::new(),
             freeze_key_dispatch_stack: false,
@@ -469,7 +469,7 @@ impl<'a, 'w> WindowContext<'a, 'w> {
             .layout_engine
             .layout_bounds(layout_id)
             .map(Into::into);
-        bounds.origin -= self.scroll_offset();
+        bounds.origin += self.element_offset();
         bounds
     }
 
@@ -805,14 +805,22 @@ impl<'a, 'w> WindowContext<'a, 'w> {
 
             let mut root_view = cx.window.root_view.take().unwrap();
 
-            if let Some(element_id) = root_view.id() {
-                cx.with_element_state(element_id, |element_state, cx| {
-                    let element_state = draw_with_element_state(&mut root_view, element_state, cx);
-                    ((), element_state)
+            cx.stack(0, |cx| {
+                let available_space = cx.window.content_size.map(Into::into);
+                draw_any_view(&mut root_view, available_space, cx);
+            });
+
+            if let Some(mut active_drag) = cx.active_drag.take() {
+                cx.stack(1, |cx| {
+                    let offset = cx.mouse_position() - active_drag.cursor_offset;
+                    cx.with_element_offset(Some(offset), |cx| {
+                        let available_space =
+                            size(AvailableSpace::MinContent, AvailableSpace::MinContent);
+                        draw_any_view(&mut active_drag.drag_handle_view, available_space, cx);
+                        cx.active_drag = Some(active_drag);
+                    });
                 });
-            } else {
-                draw_with_element_state(&mut root_view, None, cx);
-            };
+            }
 
             cx.window.root_view = Some(root_view);
             let scene = cx.window.scene_builder.build();
@@ -827,20 +835,21 @@ impl<'a, 'w> WindowContext<'a, 'w> {
             .detach();
         });
 
-        fn draw_with_element_state(
-            root_view: &mut AnyView,
-            element_state: Option<AnyBox>,
+        fn draw_any_view(
+            view: &mut AnyView,
+            available_space: Size<AvailableSpace>,
             cx: &mut ViewContext<()>,
-        ) -> AnyBox {
-            let mut element_state = root_view.initialize(&mut (), element_state, cx);
-            let layout_id = root_view.layout(&mut (), &mut element_state, cx);
-            let available_space = cx.window.content_size.map(Into::into);
-            cx.window
-                .layout_engine
-                .compute_layout(layout_id, available_space);
-            let bounds = cx.window.layout_engine.layout_bounds(layout_id);
-            root_view.paint(bounds, &mut (), &mut element_state, cx);
-            element_state
+        ) {
+            cx.with_optional_element_state(view.id(), |element_state, cx| {
+                let mut element_state = view.initialize(&mut (), element_state, cx);
+                let layout_id = view.layout(&mut (), &mut element_state, cx);
+                cx.window
+                    .layout_engine
+                    .compute_layout(layout_id, available_space);
+                let bounds = cx.window.layout_engine.layout_bounds(layout_id);
+                view.paint(bounds, &mut (), &mut element_state, cx);
+                ((), element_state)
+            });
         }
     }
 
@@ -916,6 +925,12 @@ impl<'a, 'w> WindowContext<'a, 'w> {
                     }
                 }
 
+                if self.app.propagate_event
+                    && any_mouse_event.downcast_ref::<MouseUpEvent>().is_some()
+                {
+                    self.active_drag = None;
+                }
+
                 // Just in case any handlers added new handlers, which is weird, but possible.
                 handlers.extend(
                     self.window
@@ -1206,7 +1221,7 @@ pub trait BorrowWindow: BorrowAppContext {
         result
     }
 
-    fn with_scroll_offset<R>(
+    fn with_element_offset<R>(
         &mut self,
         offset: Option<Point<Pixels>>,
         f: impl FnOnce(&mut Self) -> R,
@@ -1215,16 +1230,16 @@ pub trait BorrowWindow: BorrowAppContext {
             return f(self);
         };
 
-        let offset = self.scroll_offset() + offset;
-        self.window_mut().scroll_offset_stack.push(offset);
+        let offset = self.element_offset() + offset;
+        self.window_mut().element_offset_stack.push(offset);
         let result = f(self);
-        self.window_mut().scroll_offset_stack.pop();
+        self.window_mut().element_offset_stack.pop();
         result
     }
 
-    fn scroll_offset(&self) -> Point<Pixels> {
+    fn element_offset(&self) -> Point<Pixels> {
         self.window()
-            .scroll_offset_stack
+            .element_offset_stack
             .last()
             .copied()
             .unwrap_or_default()
@@ -1263,6 +1278,18 @@ pub trait BorrowWindow: BorrowAppContext {
         })
     }
 
+    fn with_optional_element_state<S: 'static + Send + Sync, R>(
+        &mut self,
+        element_id: Option<ElementId>,
+        f: impl FnOnce(Option<S>, &mut Self) -> (R, S),
+    ) -> R {
+        if let Some(element_id) = element_id {
+            self.with_element_state(element_id, f)
+        } else {
+            f(None, self).0
+        }
+    }
+
     fn content_mask(&self) -> ContentMask<Pixels> {
         self.window()
             .content_mask_stack
diff --git a/crates/ui2/src/components/tab.rs b/crates/ui2/src/components/tab.rs
index 2d787e6f025347f1498f629edce5dc4b4652e211..c13d4e5637cd4254caf26f57f38dc3de2a371e5b 100644
--- a/crates/ui2/src/components/tab.rs
+++ b/crates/ui2/src/components/tab.rs
@@ -17,6 +17,11 @@ pub struct Tab<S: 'static + Send + Sync + Clone> {
     close_side: IconSide,
 }
 
+#[derive(Clone, Debug)]
+struct TabDragState {
+    title: String,
+}
+
 impl<S: 'static + Send + Sync + Clone> Tab<S> {
     pub fn new(id: impl Into<ElementId>) -> Self {
         Self {
@@ -111,8 +116,19 @@ impl<S: 'static + Send + Sync + Clone> Tab<S> {
             ),
         };
 
+        let drag_state = TabDragState {
+            title: self.title.clone(),
+        };
+
         div()
             .id(self.id.clone())
+            .on_drag(move |_view, _cx| {
+                Drag::new(drag_state.clone(), |view, cx| div().w_8().h_4().bg(red()))
+            })
+            .drag_over::<TabDragState>(|d| d.bg(black()))
+            .on_drop(|_view, state: TabDragState, cx| {
+                dbg!(state);
+            })
             .px_2()
             .py_0p5()
             .flex()
@@ -148,7 +164,7 @@ impl<S: 'static + Send + Sync + Clone> Tab<S> {
     }
 }
 
-use gpui2::ElementId;
+use gpui2::{black, red, Drag, ElementId};
 #[cfg(feature = "stories")]
 pub use stories::*;