diff --git a/packages/react-arborist/src/dnd/compute-drop.ts b/packages/react-arborist/src/dnd/compute-drop.ts
index 5f00dbc..c492aa8 100644
--- a/packages/react-arborist/src/dnd/compute-drop.ts
+++ b/packages/react-arborist/src/dnd/compute-drop.ts
@@ -26,7 +26,7 @@ function getNodesAroundCursor(
   hover: HoverData
 ): [NodeApi | null, NodeApi | null] {
   if (!node) {
-    // We're hoving over the empty part of the list, not over an item,
+    // We're hovering over the empty part of the list, not over an item,
     // Put the cursor below the last item which is "prev"
     return [prev, null];
   }
@@ -83,7 +83,10 @@ export type ComputedDrop = {
   cursor: Cursor | null;
 };
 
-function dropAt(parentId: string | undefined, index: number): DropResult {
+function dropAt(
+  parentId: string | undefined,
+  index: number | null
+): DropResult {
   return { parentId: parentId || null, index };
 }
 
@@ -135,7 +138,7 @@ export function computeDrop(args: Args): ComputedDrop {
   /* Hovering over the middle of a folder */
   if (node && node.isInternal && hover.inMiddle) {
     return {
-      drop: dropAt(node.id, 0),
+      drop: dropAt(node.id, null),
       cursor: highlightCursor(node.id),
     };
   }
diff --git a/packages/react-arborist/src/dnd/drag-hook.ts b/packages/react-arborist/src/dnd/drag-hook.ts
index 8e8bb7c..22ac564 100644
--- a/packages/react-arborist/src/dnd/drag-hook.ts
+++ b/packages/react-arborist/src/dnd/drag-hook.ts
@@ -31,7 +31,7 @@ export function useDragHook<T>(node: NodeApi<T>): ConnectDragSource {
           safeRun(tree.props.onMove, {
             dragIds,
             parentId: parentId === ROOT_ID ? null : parentId,
-            index,
+            index: index === null ? 0 : index, // When it's null it was dropped over a folder
             dragNodes: tree.dragNodes,
             parentNode: tree.get(parentId),
           });
diff --git a/packages/react-arborist/src/dnd/drop-hook.ts b/packages/react-arborist/src/dnd/drop-hook.ts
index 0f52c01..6be259d 100644
--- a/packages/react-arborist/src/dnd/drop-hook.ts
+++ b/packages/react-arborist/src/dnd/drop-hook.ts
@@ -8,7 +8,7 @@ import { actions as dnd } from "../state/dnd-slice";
 
 export type DropResult = {
   parentId: string | null;
-  index: number;
+  index: number | null;
 };
 
 export function useDropHook(
diff --git a/packages/react-arborist/src/interfaces/node-api.ts b/packages/react-arborist/src/interfaces/node-api.ts
index cd4da42..34d7138 100644
--- a/packages/react-arborist/src/interfaces/node-api.ts
+++ b/packages/react-arborist/src/interfaces/node-api.ts
@@ -130,6 +130,16 @@ export class NodeApi<T = any> {
     return this.parent?.children![i + 1] ?? null;
   }
 
+  isAncestorOf(node: NodeApi<T> | null) {
+    if (!node) return false;
+    let ancestor: NodeApi<T> | null = node;
+    while (ancestor) {
+      if (ancestor.id === this.id) return true;
+      ancestor = ancestor.parent;
+    }
+    return false;
+  }
+
   select() {
     this.tree.select(this);
   }
diff --git a/packages/react-arborist/src/interfaces/tree-api.ts b/packages/react-arborist/src/interfaces/tree-api.ts
index b442a89..9ba5868 100644
--- a/packages/react-arborist/src/interfaces/tree-api.ts
+++ b/packages/react-arborist/src/interfaces/tree-api.ts
@@ -419,6 +419,18 @@ export class TreeApi<T> {
       .filter((n) => !!n) as NodeApi<T>[];
   }
 
+  get dragNode() {
+    return this.get(this.state.nodes.drag.id);
+  }
+
+  get dragDestinationParent() {
+    return this.get(this.state.nodes.drag.destinationParentId);
+  }
+
+  get dragDestinationIndex() {
+    return this.state.nodes.drag.destinationIndex;
+  }
+
   canDrop() {
     if (this.isFiltered) return false;
     const parentNode = this.get(this.state.dnd.parentId) ?? this.root;
@@ -428,7 +440,7 @@ export class TreeApi<T> {
     for (const drag of dragNodes) {
       if (!drag) return false;
       if (!parentNode) return false;
-      if (drag.isInternal && utils.isDecendent(parentNode, drag)) return false;
+      if (drag.isInternal && utils.isDescendant(parentNode, drag)) return false;
     }
 
     // Allow the user to insert their own logic
@@ -436,7 +448,7 @@ export class TreeApi<T> {
       return !isDisabled({
         parentNode,
         dragNodes: this.dragNodes,
-        index: this.state.dnd.index,
+        index: this.state.dnd.index || 0,
       });
     } else if (typeof isDisabled == "string") {
       // @ts-ignore
@@ -606,7 +618,8 @@ export class TreeApi<T> {
   willReceiveDrop(node: string | IdObj | null) {
     const id = identifyNull(node);
     if (!id) return false;
-    return id === this.state.nodes.drag.idWillReceiveDrop;
+    const { destinationParentId, destinationIndex } = this.state.nodes.drag;
+    return id === destinationParentId && destinationIndex === null;
   }
 
   /* Tree Event Handlers */
diff --git a/packages/react-arborist/src/state/dnd-slice.ts b/packages/react-arborist/src/state/dnd-slice.ts
index da5b048..afe0fb7 100644
--- a/packages/react-arborist/src/state/dnd-slice.ts
+++ b/packages/react-arborist/src/state/dnd-slice.ts
@@ -8,7 +8,7 @@ export type DndState = {
   cursor: Cursor;
   dragIds: string[];
   parentId: null | string;
-  index: number;
+  index: number | null;
 };
 
 /* Actions */
@@ -22,7 +22,7 @@ export const actions = {
   dragEnd() {
     return { type: "DND_DRAG_END" as const };
   },
-  hovering(parentId: string | null, index: number) {
+  hovering(parentId: string | null, index: number | null) {
     return { type: "DND_HOVERING" as const, parentId, index };
   },
 };
diff --git a/packages/react-arborist/src/state/drag-slice.ts b/packages/react-arborist/src/state/drag-slice.ts
index e270bf2..517adc6 100644
--- a/packages/react-arborist/src/state/drag-slice.ts
+++ b/packages/react-arborist/src/state/drag-slice.ts
@@ -1,27 +1,43 @@
 import { ActionTypes } from "../types/utils";
 import { actions as dnd } from "./dnd-slice";
+import { initialState } from "./initial";
 
 /* Types */
 
-export type DragSlice = { id: string | null; idWillReceiveDrop: string | null };
+export type DragSlice = {
+  id: string | null;
+  selectedIds: string[];
+  destinationParentId: string | null;
+  destinationIndex: number | null;
+};
 
 /* Reducer */
 
 export function reducer(
-  state: DragSlice = { id: null, idWillReceiveDrop: null },
+  state: DragSlice = initialState().nodes.drag,
   action: ActionTypes<typeof dnd>
-) {
+): DragSlice {
   switch (action.type) {
     case "DND_DRAG_START":
-      return { ...state, id: action.id };
+      return { ...state, id: action.id, selectedIds: action.dragIds };
     case "DND_DRAG_END":
-      return { ...state, id: null };
-    case "DND_CURSOR":
-      const c = action.cursor;
-      if (c.type === "highlight" && c.id !== state.idWillReceiveDrop) {
-        return { ...state, idWillReceiveDrop: c.id };
-      } else if (c.type !== "highlight" && state.idWillReceiveDrop !== null) {
-        return { ...state, idWillReceiveDrop: null };
+      return {
+        ...state,
+        id: null,
+        destinationParentId: null,
+        destinationIndex: null,
+        selectedIds: [],
+      };
+    case "DND_HOVERING":
+      if (
+        action.parentId !== state.destinationParentId ||
+        action.index != state.destinationIndex
+      ) {
+        return {
+          ...state,
+          destinationParentId: action.parentId,
+          destinationIndex: action.index,
+        };
       } else {
         return state;
       }
diff --git a/packages/react-arborist/src/state/initial.ts b/packages/react-arborist/src/state/initial.ts
index 7c4b1fb..7a2e027 100644
--- a/packages/react-arborist/src/state/initial.ts
+++ b/packages/react-arborist/src/state/initial.ts
@@ -7,7 +7,12 @@ export const initialState = (props?: TreeProps<any>): RootState => ({
     open: { filtered: {}, unfiltered: props?.initialOpenState ?? {} },
     focus: { id: null, treeFocused: false },
     edit: { id: null },
-    drag: { id: null, idWillReceiveDrop: null },
+    drag: {
+      id: null,
+      selectedIds: [],
+      destinationParentId: null,
+      destinationIndex: null,
+    },
     selection: { ids: new Set(), anchor: null, mostRecent: null },
   },
   dnd: {
diff --git a/packages/react-arborist/src/utils.ts b/packages/react-arborist/src/utils.ts
index 8fa2175..aeec8e0 100644
--- a/packages/react-arborist/src/utils.ts
+++ b/packages/react-arborist/src/utils.ts
@@ -15,9 +15,9 @@ export function isClosed(node: NodeApi<any> | null) {
 }
 
 /**
- * Is first param a decendent of the second param
+ * Is first param a descendant of the second param
  */
-export const isDecendent = (a: NodeApi<any>, b: NodeApi<any>) => {
+export const isDescendant = (a: NodeApi<any>, b: NodeApi<any>) => {
   let n: NodeApi<any> | null = a;
   while (n) {
     if (n.id === b.id) return true;
diff --git a/packages/showcase/next.config.js b/packages/showcase/next.config.js
index ae88795..3d3bc99 100644
--- a/packages/showcase/next.config.js
+++ b/packages/showcase/next.config.js
@@ -2,6 +2,6 @@
 const nextConfig = {
   reactStrictMode: true,
   swcMinify: true,
-}
+};
 
-module.exports = nextConfig
+module.exports = nextConfig;
diff --git a/packages/showcase/pages/cities.tsx b/packages/showcase/pages/cities.tsx
index faba8fe..5e11d67 100644
--- a/packages/showcase/pages/cities.tsx
+++ b/packages/showcase/pages/cities.tsx
@@ -170,7 +170,7 @@ export default function Cities() {
 function Node({ node, style, dragHandle }: NodeRendererProps<Data>) {
   const Icon = node.isInternal ? BsMapFill : BsGeoFill;
   const indentSize = Number.parseFloat(`${style.paddingLeft || 0}`);
-  
+
   return (
     <div
       ref={dragHandle}
diff --git a/packages/showcase/pages/vscode.tsx b/packages/showcase/pages/vscode.tsx
new file mode 100644
index 0000000..06fa71c
--- /dev/null
+++ b/packages/showcase/pages/vscode.tsx
@@ -0,0 +1,101 @@
+import useResizeObserver from "use-resize-observer";
+import styles from "../styles/vscode.module.css";
+import { NodeRendererProps, Tree } from "react-arborist";
+import { SiTypescript } from "react-icons/si";
+import { MdFolder } from "react-icons/md";
+import clsx from "clsx";
+
+let id = 1;
+
+type Entry = { name: string; id: string; children?: Entry[] };
+
+const nextId = () => (id++).toString();
+const file = (name: string) => ({ name, id: nextId() });
+const folder = (name: string, ...children: Entry[]) => ({
+  name,
+  id: nextId(),
+  children,
+});
+
+const structure = [
+  folder(
+    "src",
+    file("index.ts"),
+    folder(
+      "lib",
+      file("index.ts"),
+      file("worker.ts"),
+      file("utils.ts"),
+      file("model.ts")
+    ),
+    folder(
+      "ui",
+      file("button.ts"),
+      file("form.ts"),
+      file("table.ts"),
+      folder(
+        "demo",
+        file("welcome.ts"),
+        file("example.ts"),
+        file("container.ts")
+      )
+    )
+  ),
+];
+
+function sortChildren(node: Entry): Entry {
+  if (!node.children) return node;
+  const copy = [...node.children];
+  copy.sort((a, b) => {
+    if (!!a.children && !b.children) return -1;
+    if (!!b.children && !a.children) return 1;
+    return a.name < b.name ? -1 : 1;
+  });
+  const children = copy.map(sortChildren);
+  return { ...node, children };
+}
+
+function useTreeSort(data: Entry[]) {
+  return data.map(sortChildren);
+}
+
+function Node({ style, node, dragHandle, tree }: NodeRendererProps<Entry>) {
+  return (
+    <div
+      style={style}
+      className={clsx(styles.node, node.state, {
+        [styles.highlight]:
+          tree.dragDestinationParent?.isAncestorOf(node) &&
+          tree.dragDestinationParent?.id !== tree.dragNode?.parent?.id,
+      })}
+      ref={dragHandle}
+    >
+      {node.isInternal ? <MdFolder /> : <SiTypescript />}
+      {node.data.name} {node.id}
+    </div>
+  );
+}
+
+export default function VSCodeDemoPage() {
+  const { width, height, ref } = useResizeObserver();
+
+  const data = useTreeSort(structure);
+
+  return (
+    <div className={styles.root}>
+      <aside className={styles.sidebar} ref={ref}>
+        <Tree
+          data={data}
+          width={width}
+          height={height}
+          rowHeight={22}
+          onMove={() => {}}
+          renderCursor={() => null}
+        >
+          {Node}
+        </Tree>
+      </aside>
+      <main className={styles.main}></main>
+    </div>
+  );
+}
diff --git a/packages/showcase/styles/vscode.module.css b/packages/showcase/styles/vscode.module.css
new file mode 100644
index 0000000..5b2e9d5
--- /dev/null
+++ b/packages/showcase/styles/vscode.module.css
@@ -0,0 +1,43 @@
+.root {
+    display: grid;
+    grid-template-columns: 360px 1fr;
+    grid-template-rows: 1fr;
+    height: 100vh;
+    width: 100vw;
+}
+
+.node {
+    font-size: 13px;
+    display: grid;
+    grid-template-columns: auto 1fr;
+    gap: 10px;
+    cursor: default;
+    height: 100%;
+    align-items: center;;
+}
+
+.sidebar {
+    background: #192226;
+    color: rgb(95, 122, 135);
+}
+
+.main {
+    background: #253238;
+}
+
+.node:global(.isInternal) svg {
+    fill: #80CBC4;
+}
+
+.node:global(.isLeaf) svg {
+    width: 10px;
+    fill: #3865BD;
+}
+
+.node:hover {
+    color: white;
+}
+
+.highlight {
+    background: #062F4A;
+}
diff --git a/packages/showcase/tsconfig.json b/packages/showcase/tsconfig.json
index e6bb8eb..ee832c2 100644
--- a/packages/showcase/tsconfig.json
+++ b/packages/showcase/tsconfig.json
@@ -17,7 +17,7 @@
     "resolveJsonModule": true,
     "isolatedModules": true,
     "jsx": "preserve",
-    "incremental": true
+    "incremental": true,
   },
   "include": [
     "next-env.d.ts",
@@ -26,5 +26,5 @@
   ],
   "exclude": [
     "node_modules"
-  ]
+  ],
 }