diff --git a/crates/workspace/src/workspace.rs b/crates/workspace/src/workspace.rs
index 3d9efc27ea394039c5fa20a03b060e5418084839..8b1fcfdc13304948cda2b52af073519bfcaaa044 100644
--- a/crates/workspace/src/workspace.rs
+++ b/crates/workspace/src/workspace.rs
@@ -3344,17 +3344,38 @@ impl Workspace {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
-        let Some(&target_pane) = self.center.panes().get(action.destination) else {
-            return;
+        let panes = self.center.panes();
+        let destination = match panes.get(action.destination) {
+            Some(&destination) => destination.clone(),
+            None => {
+                if self.active_pane.read(cx).items_len() < 2 {
+                    return;
+                }
+                let direction = SplitDirection::Right;
+                let split_off_pane = self
+                    .find_pane_in_direction(direction, cx)
+                    .unwrap_or_else(|| self.active_pane.clone());
+                let new_pane = self.add_pane(window, cx);
+                if self
+                    .center
+                    .split(&split_off_pane, &new_pane, direction)
+                    .log_err()
+                    .is_none()
+                {
+                    return;
+                };
+                new_pane
+            }
         };
+
         move_active_item(
             &self.active_pane,
-            target_pane,
+            &destination,
             action.focus,
             true,
             window,
             cx,
-        );
+        )
     }
 
     pub fn activate_next_pane(&mut self, window: &mut Window, cx: &mut App) {
@@ -3486,18 +3507,35 @@ impl Workspace {
         &mut self,
         action: &MoveItemToPaneInDirection,
         window: &mut Window,
-        cx: &mut App,
+        cx: &mut Context<Self>,
     ) {
-        if let Some(destination) = self.find_pane_in_direction(action.direction, cx) {
-            move_active_item(
-                &self.active_pane,
-                &destination,
-                action.focus,
-                true,
-                window,
-                cx,
-            );
-        }
+        let destination = match self.find_pane_in_direction(action.direction, cx) {
+            Some(destination) => destination,
+            None => {
+                if self.active_pane.read(cx).items_len() < 2 {
+                    return;
+                }
+                let new_pane = self.add_pane(window, cx);
+                if self
+                    .center
+                    .split(&self.active_pane, &new_pane, action.direction)
+                    .log_err()
+                    .is_none()
+                {
+                    return;
+                };
+                new_pane
+            }
+        };
+
+        move_active_item(
+            &self.active_pane,
+            &destination,
+            action.focus,
+            true,
+            window,
+            cx,
+        );
     }
 
     pub fn bounding_box_for_pane(&self, pane: &Entity<Pane>) -> Option<Bounds<Pixels>> {
@@ -9333,6 +9371,117 @@ mod tests {
         });
     }
 
+    #[gpui::test]
+    async fn test_moving_items_create_panes(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        let project = Project::test(fs, [], cx).await;
+        let (workspace, cx) =
+            cx.add_window_view(|window, cx| Workspace::test_new(project.clone(), window, cx));
+
+        let item_1 = cx.new(|cx| {
+            TestItem::new(cx).with_project_items(&[TestProjectItem::new(1, "first.txt", cx)])
+        });
+        workspace.update_in(cx, |workspace, window, cx| {
+            workspace.add_item_to_active_pane(Box::new(item_1), None, true, window, cx);
+            workspace.move_item_to_pane_in_direction(
+                &MoveItemToPaneInDirection {
+                    direction: SplitDirection::Right,
+                    focus: true,
+                },
+                window,
+                cx,
+            );
+            workspace.move_item_to_pane_at_index(
+                &MoveItemToPane {
+                    destination: 3,
+                    focus: true,
+                },
+                window,
+                cx,
+            );
+
+            assert_eq!(workspace.panes.len(), 1, "No new panes were created");
+            assert_eq!(
+                pane_items_paths(&workspace.active_pane, cx),
+                vec!["first.txt".to_string()],
+                "Single item was not moved anywhere"
+            );
+        });
+
+        let item_2 = cx.new(|cx| {
+            TestItem::new(cx).with_project_items(&[TestProjectItem::new(2, "second.txt", cx)])
+        });
+        workspace.update_in(cx, |workspace, window, cx| {
+            workspace.add_item_to_active_pane(Box::new(item_2), None, true, window, cx);
+            assert_eq!(
+                pane_items_paths(&workspace.panes[0], cx),
+                vec!["first.txt".to_string(), "second.txt".to_string()],
+            );
+            workspace.move_item_to_pane_in_direction(
+                &MoveItemToPaneInDirection {
+                    direction: SplitDirection::Right,
+                    focus: true,
+                },
+                window,
+                cx,
+            );
+
+            assert_eq!(workspace.panes.len(), 2, "A new pane should be created");
+            assert_eq!(
+                pane_items_paths(&workspace.panes[0], cx),
+                vec!["first.txt".to_string()],
+                "After moving, one item should be left in the original pane"
+            );
+            assert_eq!(
+                pane_items_paths(&workspace.panes[1], cx),
+                vec!["second.txt".to_string()],
+                "New item should have been moved to the new pane"
+            );
+        });
+
+        let item_3 = cx.new(|cx| {
+            TestItem::new(cx).with_project_items(&[TestProjectItem::new(3, "third.txt", cx)])
+        });
+        workspace.update_in(cx, |workspace, window, cx| {
+            let original_pane = workspace.panes[0].clone();
+            workspace.set_active_pane(&original_pane, window, cx);
+            workspace.add_item_to_active_pane(Box::new(item_3), None, true, window, cx);
+            assert_eq!(workspace.panes.len(), 2, "No new panes were created");
+            assert_eq!(
+                pane_items_paths(&workspace.active_pane, cx),
+                vec!["first.txt".to_string(), "third.txt".to_string()],
+                "New pane should be ready to move one item out"
+            );
+
+            workspace.move_item_to_pane_at_index(
+                &MoveItemToPane {
+                    destination: 3,
+                    focus: true,
+                },
+                window,
+                cx,
+            );
+            assert_eq!(workspace.panes.len(), 3, "A new pane should be created");
+            assert_eq!(
+                pane_items_paths(&workspace.active_pane, cx),
+                vec!["first.txt".to_string()],
+                "After moving, one item should be left in the original pane"
+            );
+            assert_eq!(
+                pane_items_paths(&workspace.panes[1], cx),
+                vec!["second.txt".to_string()],
+                "Previously created pane should be unchanged"
+            );
+            assert_eq!(
+                pane_items_paths(&workspace.panes[2], cx),
+                vec!["third.txt".to_string()],
+                "New item should have been moved to the new pane"
+            );
+        });
+    }
+
     mod register_project_item_tests {
 
         use super::*;
@@ -9648,6 +9797,17 @@ mod tests {
         }
     }
 
+    fn pane_items_paths(pane: &Entity<Pane>, cx: &App) -> Vec<String> {
+        pane.read(cx)
+            .items()
+            .flat_map(|item| {
+                item.project_paths(cx)
+                    .into_iter()
+                    .map(|path| path.path.to_string_lossy().to_string())
+            })
+            .collect()
+    }
+
     pub fn init_test(cx: &mut TestAppContext) {
         cx.update(|cx| {
             let settings_store = SettingsStore::test(cx);