diff --git a/packages/react-arborist/src/hooks/use-fresh-node.ts b/packages/react-arborist/src/hooks/use-fresh-node.ts
index 5ac27ad..ce50077 100644
--- a/packages/react-arborist/src/hooks/use-fresh-node.ts
+++ b/packages/react-arborist/src/hooks/use-fresh-node.ts
@@ -7,6 +7,7 @@ export function useFreshNode<T>(index: number) {
   const original = tree.at(index);
   if (!original) throw new Error(`Could not find node for index: ${index}`);
 
+  console.log(original.state.willDropInAncestor, original.id);
   return useMemo(() => {
     const fresh = original.clone();
     tree.visibleNodes[index] = fresh; // sneaky
diff --git a/packages/react-arborist/src/interfaces/node-api.ts b/packages/react-arborist/src/interfaces/node-api.ts
index cd4da42..8379963 100644
--- a/packages/react-arborist/src/interfaces/node-api.ts
+++ b/packages/react-arborist/src/interfaces/node-api.ts
@@ -91,6 +91,10 @@ export class NodeApi<T = any> {
     return this.tree.willReceiveDrop(this.id);
   }
 
+  get willDropInAncestor() {
+    return this.tree.willDropInAncestor(this.id);
+  }
+
   get state() {
     return {
       isClosed: this.isClosed,
@@ -104,6 +108,7 @@ export class NodeApi<T = any> {
       isSelectedEnd: this.isSelectedEnd,
       isSelectedStart: this.isSelectedStart,
       willReceiveDrop: this.willReceiveDrop,
+      willDropInAncestor: this.willDropInAncestor,
     };
   }
 
@@ -130,6 +135,16 @@ 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..6dd98f6 100644
--- a/packages/react-arborist/src/interfaces/tree-api.ts
+++ b/packages/react-arborist/src/interfaces/tree-api.ts
@@ -609,6 +609,15 @@ export class TreeApi<T> {
     return id === this.state.nodes.drag.idWillReceiveDrop;
   }
 
+  willDropInAncestor(identity: Identity) {
+    const id = identifyNull(identity);
+    if (!id) return false;
+    const parent = this.get(this.state.nodes.drag.dropParentId);
+    const node = this.get(id);
+    if (!parent) return false;
+    return parent.isAncestorOf(node);
+  }
+
   /* Tree Event Handlers */
 
   onFocus() {
diff --git a/packages/react-arborist/src/state/drag-slice.ts b/packages/react-arborist/src/state/drag-slice.ts
index e270bf2..59bb981 100644
--- a/packages/react-arborist/src/state/drag-slice.ts
+++ b/packages/react-arborist/src/state/drag-slice.ts
@@ -3,19 +3,23 @@ import { actions as dnd } from "./dnd-slice";
 
 /* Types */
 
-export type DragSlice = { id: string | null; idWillReceiveDrop: string | null };
+export type DragSlice = {
+  id: string | null;
+  idWillReceiveDrop: string | null;
+  dropParentId: string | null;
+};
 
 /* Reducer */
 
 export function reducer(
-  state: DragSlice = { id: null, idWillReceiveDrop: null },
+  state: DragSlice = { id: null, idWillReceiveDrop: null, dropParentId: null },
   action: ActionTypes<typeof dnd>
 ) {
   switch (action.type) {
     case "DND_DRAG_START":
       return { ...state, id: action.id };
     case "DND_DRAG_END":
-      return { ...state, id: null };
+      return { ...state, id: null, dropParentId: null };
     case "DND_CURSOR":
       const c = action.cursor;
       if (c.type === "highlight" && c.id !== state.idWillReceiveDrop) {
@@ -25,6 +29,12 @@ export function reducer(
       } else {
         return state;
       }
+    case "DND_HOVERING":
+      if (action.parentId !== state.dropParentId) {
+        return { ...state, dropParentId: action.parentId };
+      } else {
+        return state;
+      }
     default:
       return state;
   }
diff --git a/packages/react-arborist/src/state/initial.ts b/packages/react-arborist/src/state/initial.ts
index 7c4b1fb..2f74d38 100644
--- a/packages/react-arborist/src/state/initial.ts
+++ b/packages/react-arborist/src/state/initial.ts
@@ -7,7 +7,7 @@ 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, idWillReceiveDrop: null, dropParentId: null },
     selection: { ids: new Set(), anchor: null, mostRecent: null },
   },
   dnd: {
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..6761dec
--- /dev/null
+++ b/packages/showcase/pages/vscode.tsx
@@ -0,0 +1,97 @@
+import useResizeObserver from "use-resize-observer";
+import styles from "../styles/vscode.module.css";
+import { CursorProps, 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 }: NodeRendererProps<Entry>) {
+  return (
+    <div
+      style={style}
+      className={clsx(styles.node, node.state)}
+      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..74db9c3
--- /dev/null
+++ b/packages/showcase/styles/vscode.module.css
@@ -0,0 +1,47 @@
+.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:global(.willReceiveDrop) {
+    background: blue;
+}
+
+.node:hover {
+    color: white;
+}
+
+.node:global(.willDropInAncestor) {
+    background: lightskyblue;
+}
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"
-  ]
+  ],
 }