From 93d2fb740018e873c60afac085e5e03426b6701d Mon Sep 17 00:00:00 2001
From: Lawrence Chen <lawrencecchen@users.noreply.github.com>
Date: Tue, 5 May 2026 00:23:07 -0700
Subject: [PATCH 1/4] Fix file preview drop routing

---
 Sources/ContentView.swift                 | 135 ++++++++++--
 Sources/GhosttyTerminalView.swift         |   8 +
 Sources/Panels/FilePreviewPanel.swift     |  50 ++++-
 Sources/Panels/PanelContentView.swift     |  30 +++
 Sources/Panels/TerminalPanelView.swift    |   7 +
 Sources/TerminalPaneDropTargetView.swift  | 249 ++++++++++++++++++----
 Sources/TerminalWindowPortal.swift        |  27 +++
 Sources/Workspace.swift                   |   6 +-
 Sources/WorkspaceContentView.swift        |   1 +
 cmuxTests/PortalTabDragRoutingTests.swift |  65 +++++-
 cmuxTests/WindowAndDragTests.swift        |  20 +-
 vendor/bonsplit                           |   2 +-
 12 files changed, 520 insertions(+), 80 deletions(-)

diff --git a/Sources/ContentView.swift b/Sources/ContentView.swift
index 15ad8cb4d03d..becf0d59b70f 100644
--- a/Sources/ContentView.swift
+++ b/Sources/ContentView.swift
@@ -34,15 +34,34 @@ enum DragOverlayRoutingPolicy {
         return pasteboardTypes.contains(.fileURL)
     }
 
+    static func fileURLs(from pasteboard: NSPasteboard) -> [URL] {
+        let objects = pasteboard.readObjects(
+            forClasses: [NSURL.self],
+            options: [.urlReadingFileURLsOnly: true]
+        ) ?? []
+        return objects.compactMap { object -> URL? in
+            if let url = object as? URL {
+                return url.isFileURL ? url : nil
+            }
+            if let url = object as? NSURL {
+                let bridged = url as URL
+                return bridged.isFileURL ? bridged : nil
+            }
+            return nil
+        }
+    }
+
     static func shouldCaptureFileDropDestination(
         pasteboardTypes: [NSPasteboard.PasteboardType]?,
         hasLocalDraggingSource: Bool
     ) -> Bool {
-        // File URL drops are routed at the Bonsplit pane layer so center/edge
-        // drop targets stay visible and the host can open previews or splits.
+        // The window overlay is the stable AppKit drag destination for Finder
+        // and sidebar file drags. It delegates file drops to pane-level
+        // Bonsplit targets so split affordances and preview routing stay local
+        // to the hovered pane.
         _ = hasLocalDraggingSource
         guard hasFileURL(pasteboardTypes) else { return false }
-        return false
+        return true
     }
 
     static func shouldCaptureFileDropDestination(
@@ -141,6 +160,10 @@ final class FileDropOverlayView: NSView {
     /// The WKWebView that accepted prepareForDragOperation so conclude can be
     /// delivered to the same browser target after the drop completes.
     private weak var preparedDragWebView: WKWebView?
+    /// Pane drop target currently receiving delegated file drag events.
+    private weak var activePaneDropTarget: PaneDropTargetView?
+    /// Pane drop target that accepted prepareForDragOperation.
+    private weak var preparedPaneDropTarget: PaneDropTargetView?
     private var lastHitTestLogSignature: String?
     private var lastDragRouteLogSignatureByPhase: [String: String] = [:]
 
@@ -208,6 +231,9 @@ final class FileDropOverlayView: NSView {
         )
 #endif
         guard shouldCapture else { return nil }
+        if shouldDeferFileDropOverlayToBonsplitTabBar(at: point) {
+            return nil
+        }
 
         return super.hitTest(point)
     }
@@ -307,10 +333,15 @@ final class FileDropOverlayView: NSView {
 
     override func draggingExited(_ sender: (any NSDraggingInfo)?) {
         preparedDragWebView = nil
+        preparedPaneDropTarget = nil
         if let prev = activeDragWebView {
             prev.draggingExited(sender)
             activeDragWebView = nil
         }
+        if let prev = activePaneDropTarget {
+            prev.draggingExited(sender)
+            activePaneDropTarget = nil
+        }
     }
 
     override func prepareForDragOperation(_ sender: any NSDraggingInfo) -> Bool {
@@ -321,15 +352,17 @@ final class FileDropOverlayView: NSView {
             hasLocalDraggingSource: hasLocalDraggingSource
         )
         let webView = shouldCapture ? (activeDragWebView ?? webViewUnderPoint(sender.draggingLocation)) : nil
-        let terminal = terminalUnderPoint(sender.draggingLocation)
-        let hasTerminalTarget = terminal != nil
+        let paneDropTarget = shouldCapture && webView == nil
+            ? (activePaneDropTarget ?? paneDropTargetUnderPoint(sender.draggingLocation))
+            : nil
+        let hasPaneTarget = paneDropTarget != nil || terminalUnderPoint(sender.draggingLocation) != nil
 #if DEBUG
         logDragRouteDecision(
             phase: "prepare",
             pasteboardTypes: types,
             shouldCapture: shouldCapture,
             hasLocalDraggingSource: hasLocalDraggingSource,
-            hasTerminalTarget: hasTerminalTarget
+            hasPaneTarget: hasPaneTarget
         )
 #endif
         guard shouldCapture else {
@@ -341,7 +374,12 @@ final class FileDropOverlayView: NSView {
             return webView.prepareForDragOperation(sender)
         }
         preparedDragWebView = nil
-        return hasTerminalTarget
+        if let paneDropTarget {
+            preparedPaneDropTarget = paneDropTarget
+            return true
+        }
+        preparedPaneDropTarget = nil
+        return hasPaneTarget
     }
 
     override func performDragOperation(_ sender: any NSDraggingInfo) -> Bool {
@@ -354,15 +392,18 @@ final class FileDropOverlayView: NSView {
         let webView = shouldCapture
             ? (preparedDragWebView ?? activeDragWebView ?? webViewUnderPoint(sender.draggingLocation))
             : nil
-        let terminal = terminalUnderPoint(sender.draggingLocation)
-        let hasTerminalTarget = terminal != nil
+        let paneDropTarget = shouldCapture && webView == nil
+            ? (preparedPaneDropTarget ?? activePaneDropTarget ?? paneDropTargetUnderPoint(sender.draggingLocation))
+            : nil
+        let terminal = paneDropTarget == nil ? terminalUnderPoint(sender.draggingLocation) : nil
+        let hasPaneTarget = paneDropTarget != nil || terminal != nil
 #if DEBUG
         logDragRouteDecision(
             phase: "perform",
             pasteboardTypes: types,
             shouldCapture: shouldCapture,
             hasLocalDraggingSource: hasLocalDraggingSource,
-            hasTerminalTarget: hasTerminalTarget
+            hasPaneTarget: hasPaneTarget
         )
 #endif
         guard shouldCapture else {
@@ -375,6 +416,12 @@ final class FileDropOverlayView: NSView {
             return webView.performDragOperation(sender)
         }
         preparedDragWebView = nil
+        if let paneDropTarget {
+            preparedPaneDropTarget = nil
+            activePaneDropTarget = nil
+            return paneDropTarget.performDragOperation(sender)
+        }
+        preparedPaneDropTarget = nil
         activeDragWebView = nil
         guard let terminal else { return false }
         return terminal.performDragOperation(sender)
@@ -384,6 +431,8 @@ final class FileDropOverlayView: NSView {
         defer {
             preparedDragWebView = nil
             activeDragWebView = nil
+            preparedPaneDropTarget = nil
+            activePaneDropTarget = nil
         }
         guard let sender else { return }
         guard DragOverlayRoutingPolicy.shouldCaptureFileDropDestination(
@@ -394,6 +443,9 @@ final class FileDropOverlayView: NSView {
         }
         let webView = preparedDragWebView ?? activeDragWebView ?? webViewUnderPoint(sender.draggingLocation)
         webView?.concludeDragOperation(sender)
+        if let paneDropTarget = preparedPaneDropTarget ?? activePaneDropTarget {
+            paneDropTarget.draggingExited(sender)
+        }
     }
 
     private func updateDragTarget(_ sender: any NSDraggingInfo, phase: String) -> NSDragOperation {
@@ -405,11 +457,16 @@ final class FileDropOverlayView: NSView {
             hasLocalDraggingSource: hasLocalDraggingSource
         )
         let webView = shouldCapture ? webViewUnderPoint(loc) : nil
+        let paneDropTarget = shouldCapture && webView == nil ? paneDropTargetUnderPoint(loc) : nil
 
         if let prev = activeDragWebView, prev !== webView {
             prev.draggingExited(sender)
             activeDragWebView = nil
         }
+        if let prev = activePaneDropTarget, prev !== paneDropTarget {
+            prev.draggingExited(sender)
+            activePaneDropTarget = nil
+        }
 
         if let webView {
             if activeDragWebView !== webView {
@@ -419,17 +476,25 @@ final class FileDropOverlayView: NSView {
             return webView.draggingUpdated(sender)
         }
 
-        let hasTerminalTarget = terminalUnderPoint(loc) != nil
+        if let paneDropTarget {
+            if activePaneDropTarget !== paneDropTarget {
+                activePaneDropTarget = paneDropTarget
+                return paneDropTarget.draggingEntered(sender)
+            }
+            return paneDropTarget.draggingUpdated(sender)
+        }
+
+        let hasPaneTarget = terminalUnderPoint(loc) != nil
 #if DEBUG
         logDragRouteDecision(
             phase: phase,
             pasteboardTypes: types,
             shouldCapture: shouldCapture,
             hasLocalDraggingSource: hasLocalDraggingSource,
-            hasTerminalTarget: hasTerminalTarget
+            hasPaneTarget: hasPaneTarget
         )
 #endif
-        guard shouldCapture, hasTerminalTarget else { return [] }
+        guard shouldCapture, hasPaneTarget else { return [] }
         return .copy
     }
 
@@ -568,13 +633,13 @@ final class FileDropOverlayView: NSView {
         pasteboardTypes: [NSPasteboard.PasteboardType]?,
         shouldCapture: Bool,
         hasLocalDraggingSource: Bool,
-        hasTerminalTarget: Bool
+        hasPaneTarget: Bool
     ) {
         guard shouldCapture || hasRelevantDragTypes(pasteboardTypes) else { return }
         let signature = [
             shouldCapture ? "1" : "0",
             hasLocalDraggingSource ? "1" : "0",
-            hasTerminalTarget ? "1" : "0",
+            hasPaneTarget ? "1" : "0",
             debugPasteboardTypes(pasteboardTypes)
         ].joined(separator: "|")
         guard lastDragRouteLogSignatureByPhase[phase] != signature else { return }
@@ -582,7 +647,7 @@ final class FileDropOverlayView: NSView {
         cmuxDebugLog(
             "overlay.fileDrop.\(phase) capture=\(shouldCapture ? 1 : 0) " +
             "localSource=\(hasLocalDraggingSource ? 1 : 0) " +
-            "hasTerminal=\(hasTerminalTarget ? 1 : 0) " +
+            "hasPane=\(hasPaneTarget ? 1 : 0) " +
             "types=\(debugPasteboardTypes(pasteboardTypes))"
         )
     }
@@ -607,6 +672,44 @@ final class FileDropOverlayView: NSView {
         }
         return nil
     }
+
+    private func shouldDeferFileDropOverlayToBonsplitTabBar(at point: NSPoint) -> Bool {
+        guard let window else { return false }
+        let windowPoint = convert(point, to: nil)
+        return BonsplitTabBarHitRegionRegistry.containsWindowPoint(windowPoint, in: window)
+    }
+
+    private func paneDropTargetUnderPoint(_ windowPoint: NSPoint) -> PaneDropTargetView? {
+        if let paneTarget = inlinePaneDropTargetUnderPoint(windowPoint) {
+            return paneTarget
+        }
+        guard let window else { return nil }
+        return TerminalWindowPortalRegistry.terminalPaneDropTargetAtWindowPoint(windowPoint, in: window)
+    }
+
+    private func inlinePaneDropTargetUnderPoint(_ windowPoint: NSPoint) -> PaneDropTargetView? {
+        guard let window, let contentView = window.contentView else { return nil }
+        isHidden = true
+        defer { isHidden = false }
+
+        let point = contentView.convert(windowPoint, from: nil)
+        return paneDropTarget(in: contentView, at: point)
+    }
+
+    private func paneDropTarget(in view: NSView, at point: NSPoint) -> PaneDropTargetView? {
+        for subview in view.subviews.reversed() {
+            guard !subview.isHidden, subview.alphaValue > 0 else { continue }
+            let pointInSubview = subview.convert(point, from: view)
+            guard subview.bounds.contains(pointInSubview) else { continue }
+            if let paneTarget = subview as? PaneDropTargetView {
+                return paneTarget
+            }
+            if let nestedTarget = paneDropTarget(in: subview, at: pointInSubview) {
+                return nestedTarget
+            }
+        }
+        return view as? PaneDropTargetView
+    }
 }
 
 var fileDropOverlayKey: UInt8 = 0
diff --git a/Sources/GhosttyTerminalView.swift b/Sources/GhosttyTerminalView.swift
index cd8b5620f051..e227d9c3b29e 100644
--- a/Sources/GhosttyTerminalView.swift
+++ b/Sources/GhosttyTerminalView.swift
@@ -10880,6 +10880,14 @@ final class GhosttySurfaceScrollView: NSView {
         }
     }
 
+    func paneDropTargetForDrop(at localPoint: NSPoint) -> TerminalPaneDropTargetView? {
+        guard bounds.contains(localPoint) else { return nil }
+        let pointInTarget = paneDropTargetView.convert(localPoint, from: self)
+        guard paneDropTargetView.bounds.contains(pointInTarget) else { return nil }
+        guard !paneDropTargetView.shouldDeferToPaneTabBar(at: pointInTarget) else { return nil }
+        return paneDropTargetView
+    }
+
 #if DEBUG
     private func logDropZoneOverlay(event: String, zone: DropZone?, frame: CGRect?) {
         let surface = surfaceView.terminalSurface?.id.uuidString.prefix(5) ?? "nil"
diff --git a/Sources/Panels/FilePreviewPanel.swift b/Sources/Panels/FilePreviewPanel.swift
index 0e3743014544..1a2909f9288f 100644
--- a/Sources/Panels/FilePreviewPanel.swift
+++ b/Sources/Panels/FilePreviewPanel.swift
@@ -183,7 +183,9 @@ final class FilePreviewDragPasteboardWriter: NSObject, NSPasteboardWriting {
     }
 
     func writableTypes(for pasteboard: NSPasteboard) -> [NSPasteboard.PasteboardType] {
-        [
+        let data = transferDataForDrag()
+        mirrorTransferDataToDragPasteboard(data)
+        return [
             DragOverlayRoutingPolicy.filePreviewTransferType,
             Self.bonsplitTransferType,
             .fileURL
@@ -772,11 +774,20 @@ struct FilePreviewPanelView: View {
     let isFocused: Bool
     let isVisibleInUI: Bool
     let portalPriority: Int
+    let appearance: PanelAppearance
     let onRequestPanelFocus: () -> Void
 
     @State private var focusFlashOpacity = 0.0
     @State private var focusFlashAnimationGeneration = 0
 
+    private var themeBackgroundColor: NSColor {
+        appearance.backgroundColor
+    }
+
+    private var themeForegroundColor: NSColor {
+        appearance.foregroundColor
+    }
+
     var body: some View {
         VStack(spacing: 0) {
             if panel.previewMode != .pdf {
@@ -786,7 +797,7 @@ struct FilePreviewPanelView: View {
             content
         }
         .frame(maxWidth: .infinity, maxHeight: .infinity)
-        .background(Color(nsColor: .textBackgroundColor))
+        .background(Color(nsColor: themeBackgroundColor))
         .overlay {
             RoundedRectangle(cornerRadius: FocusFlashPattern.ringCornerRadius)
                 .stroke(cmuxAccentColor().opacity(focusFlashOpacity), lineWidth: 3)
@@ -811,7 +822,7 @@ struct FilePreviewPanelView: View {
                 .frame(width: 16)
             Text(panel.filePath)
                 .font(.system(size: 11, design: .monospaced))
-                .foregroundStyle(.secondary)
+                .foregroundStyle(Color(nsColor: themeForegroundColor).opacity(0.68))
                 .lineLimit(1)
                 .truncationMode(.middle)
                 .textSelection(.enabled)
@@ -840,7 +851,7 @@ struct FilePreviewPanelView: View {
         }
         .padding(.horizontal, 12)
         .frame(height: 30)
-        .background(Color(nsColor: .windowBackgroundColor))
+        .background(Color(nsColor: themeBackgroundColor))
     }
 
     @ViewBuilder
@@ -850,7 +861,12 @@ struct FilePreviewPanelView: View {
         } else {
             switch panel.previewMode {
             case .text:
-                FilePreviewTextEditor(panel: panel, isVisibleInUI: isVisibleInUI)
+                FilePreviewTextEditor(
+                    panel: panel,
+                    isVisibleInUI: isVisibleInUI,
+                    themeBackgroundColor: themeBackgroundColor,
+                    themeForegroundColor: themeForegroundColor
+                )
             case .pdf:
                 FilePreviewPDFView(panel: panel, isVisibleInUI: isVisibleInUI)
             case .image:
@@ -912,6 +928,8 @@ struct FilePreviewPanelView: View {
 private struct FilePreviewTextEditor: NSViewRepresentable {
     @ObservedObject var panel: FilePreviewPanel
     let isVisibleInUI: Bool
+    let themeBackgroundColor: NSColor
+    let themeForegroundColor: NSColor
 
     func makeCoordinator() -> Coordinator {
         Coordinator(panel: panel)
@@ -924,7 +942,7 @@ private struct FilePreviewTextEditor: NSViewRepresentable {
         scrollView.hasHorizontalScroller = true
         scrollView.autohidesScrollers = true
         scrollView.borderType = .noBorder
-        scrollView.drawsBackground = false
+        scrollView.drawsBackground = true
 
         let textView = SavingTextView()
         textView.panel = panel
@@ -937,9 +955,7 @@ private struct FilePreviewTextEditor: NSViewRepresentable {
         textView.usesFindPanel = true
         textView.usesFontPanel = false
         textView.font = .monospacedSystemFont(ofSize: 13, weight: .regular)
-        textView.textColor = .labelColor
-        textView.backgroundColor = .textBackgroundColor
-        textView.insertionPointColor = .labelColor
+        textView.drawsBackground = true
         textView.minSize = NSSize(width: 0, height: 0)
         textView.maxSize = NSSize(width: CGFloat.greatestFiniteMagnitude, height: CGFloat.greatestFiniteMagnitude)
         textView.isVerticallyResizable = true
@@ -955,12 +971,14 @@ private struct FilePreviewTextEditor: NSViewRepresentable {
         panel.attachTextView(textView)
 
         scrollView.documentView = textView
+        Self.applyTheme(to: scrollView, backgroundColor: themeBackgroundColor, foregroundColor: themeForegroundColor)
         return scrollView
     }
 
     func updateNSView(_ scrollView: NSScrollView, context: Context) {
         context.coordinator.panel = panel
         scrollView.isHidden = !isVisibleInUI
+        Self.applyTheme(to: scrollView, backgroundColor: themeBackgroundColor, foregroundColor: themeForegroundColor)
         guard let textView = scrollView.documentView as? SavingTextView else { return }
         textView.panel = panel
         textView.applyFilePreviewTextEditorInsets()
@@ -971,6 +989,20 @@ private struct FilePreviewTextEditor: NSViewRepresentable {
         context.coordinator.isApplyingPanelUpdate = false
     }
 
+    private static func applyTheme(
+        to scrollView: NSScrollView,
+        backgroundColor: NSColor,
+        foregroundColor: NSColor
+    ) {
+        scrollView.backgroundColor = backgroundColor
+        scrollView.contentView.backgroundColor = backgroundColor
+        if let textView = scrollView.documentView as? NSTextView {
+            textView.backgroundColor = backgroundColor
+            textView.textColor = foregroundColor
+            textView.insertionPointColor = foregroundColor
+        }
+    }
+
     final class Coordinator: NSObject, NSTextViewDelegate {
         var panel: FilePreviewPanel
         var isApplyingPanelUpdate = false
diff --git a/Sources/Panels/PanelContentView.swift b/Sources/Panels/PanelContentView.swift
index 764f81cf706b..648179c1b0f0 100644
--- a/Sources/Panels/PanelContentView.swift
+++ b/Sources/Panels/PanelContentView.swift
@@ -5,6 +5,7 @@ import Bonsplit
 /// View that renders the appropriate panel view based on panel type
 struct PanelContentView: View {
     let panel: any Panel
+    let workspaceId: UUID
     let paneId: PaneID
     let isFocused: Bool
     let isSelectedInPane: Bool
@@ -18,6 +19,14 @@ struct PanelContentView: View {
     let onTriggerFlash: () -> Void
 
     var body: some View {
+        renderedPanel
+            .overlay {
+                paneDropTargetOverlay
+            }
+    }
+
+    @ViewBuilder
+    private var renderedPanel: some View {
         switch panel.panelType {
         case .terminal:
             if let terminalPanel = panel as? TerminalPanel {
@@ -62,9 +71,30 @@ struct PanelContentView: View {
                     isFocused: isFocused,
                     isVisibleInUI: isVisibleInUI,
                     portalPriority: portalPriority,
+                    appearance: appearance,
                     onRequestPanelFocus: onRequestPanelFocus
                 )
             }
         }
     }
+
+    @ViewBuilder
+    private var paneDropTargetOverlay: some View {
+        if shouldInstallPaneDropTarget {
+            PaneDropTargetRepresentable(dropContext: PaneDropContext(
+                workspaceId: workspaceId,
+                panelId: panel.id,
+                paneId: paneId
+            ))
+        }
+    }
+
+    private var shouldInstallPaneDropTarget: Bool {
+        switch panel.panelType {
+        case .markdown, .filePreview:
+            return true
+        case .terminal, .browser:
+            return false
+        }
+    }
 }
diff --git a/Sources/Panels/TerminalPanelView.swift b/Sources/Panels/TerminalPanelView.swift
index 32820d282c08..250bbb6de459 100644
--- a/Sources/Panels/TerminalPanelView.swift
+++ b/Sources/Panels/TerminalPanelView.swift
@@ -45,12 +45,19 @@ struct TerminalPanelView: View {
 
 /// Shared appearance settings for panels
 struct PanelAppearance {
+    let backgroundColor: NSColor
+    let foregroundColor: NSColor
     let dividerColor: Color
     let unfocusedOverlayNSColor: NSColor
     let unfocusedOverlayOpacity: Double
 
     static func fromConfig(_ config: GhosttyConfig) -> PanelAppearance {
         PanelAppearance(
+            backgroundColor: GhosttyBackgroundTheme.color(
+                backgroundColor: config.backgroundColor,
+                opacity: config.backgroundOpacity
+            ),
+            foregroundColor: config.foregroundColor,
             dividerColor: Color(nsColor: config.resolvedSplitDividerColor),
             unfocusedOverlayNSColor: config.unfocusedSplitOverlayFill,
             unfocusedOverlayOpacity: config.unfocusedSplitOverlayOpacity
diff --git a/Sources/TerminalPaneDropTargetView.swift b/Sources/TerminalPaneDropTargetView.swift
index 9d7a058a0945..b22bf4218362 100644
--- a/Sources/TerminalPaneDropTargetView.swift
+++ b/Sources/TerminalPaneDropTargetView.swift
@@ -1,14 +1,17 @@
 import AppKit
 import Bonsplit
 import Foundation
+import SwiftUI
 
-struct TerminalPaneDropContext: Equatable {
+struct PaneDropContext: Equatable {
     let workspaceId: UUID
     let panelId: UUID
     let paneId: PaneID
 }
 
-struct TerminalPaneDragTransfer: Equatable {
+typealias TerminalPaneDropContext = PaneDropContext
+
+struct PaneDragTransfer: Equatable {
     let tabId: UUID
     let sourcePaneId: UUID
     let sourceProcessId: Int32
@@ -17,7 +20,7 @@ struct TerminalPaneDragTransfer: Equatable {
         sourceProcessId == Int32(ProcessInfo.processInfo.processIdentifier)
     }
 
-    static func decode(from pasteboard: NSPasteboard) -> TerminalPaneDragTransfer? {
+    static func decode(from pasteboard: NSPasteboard) -> PaneDragTransfer? {
         if let data = pasteboard.data(forType: DragOverlayRoutingPolicy.bonsplitTabTransferType) {
             return decode(from: data)
         }
@@ -27,7 +30,7 @@ struct TerminalPaneDragTransfer: Equatable {
         return nil
     }
 
-    static func decode(from data: Data) -> TerminalPaneDragTransfer? {
+    static func decode(from data: Data) -> PaneDragTransfer? {
         guard let json = try? JSONSerialization.jsonObject(with: data) as? [String: Any],
               let tab = json["tab"] as? [String: Any],
               let tabIdRaw = tab["id"] as? String,
@@ -38,7 +41,7 @@ struct TerminalPaneDragTransfer: Equatable {
         }
 
         let sourceProcessId = (json["sourceProcessId"] as? NSNumber)?.int32Value ?? -1
-        return TerminalPaneDragTransfer(
+        return PaneDragTransfer(
             tabId: tabId,
             sourcePaneId: sourcePaneId,
             sourceProcessId: sourceProcessId
@@ -46,7 +49,9 @@ struct TerminalPaneDragTransfer: Equatable {
     }
 }
 
-enum TerminalPaneDropRouting {
+typealias TerminalPaneDragTransfer = PaneDragTransfer
+
+enum PaneDropRouting {
     static func zone(for location: CGPoint, in size: CGSize) -> DropZone {
         let edgeRatio: CGFloat = 0.25
         let horizontalEdge = max(80, size.width * edgeRatio)
@@ -64,12 +69,51 @@ enum TerminalPaneDropRouting {
             return .center
         }
     }
+
+    static func filePreviewDestination(
+        targetPane paneId: PaneID,
+        zone: DropZone
+    ) -> BonsplitController.ExternalTabDropRequest.Destination {
+        switch zone {
+        case .center:
+            return .insert(targetPane: paneId, targetIndex: nil)
+        case .left:
+            return .split(targetPane: paneId, orientation: .horizontal, insertFirst: true)
+        case .right:
+            return .split(targetPane: paneId, orientation: .horizontal, insertFirst: false)
+        case .top:
+            return .split(targetPane: paneId, orientation: .vertical, insertFirst: true)
+        case .bottom:
+            return .split(targetPane: paneId, orientation: .vertical, insertFirst: false)
+        }
+    }
+
+    static func overlayFrame(for zone: DropZone, in bounds: CGRect) -> CGRect {
+        let midX = bounds.midX
+        let midY = bounds.midY
+
+        switch zone {
+        case .center:
+            return bounds.insetBy(dx: 10, dy: 10)
+        case .left:
+            return CGRect(x: bounds.minX + 8, y: bounds.minY + 8, width: max(0, midX - bounds.minX - 12), height: max(0, bounds.height - 16))
+        case .right:
+            return CGRect(x: midX + 4, y: bounds.minY + 8, width: max(0, bounds.maxX - midX - 12), height: max(0, bounds.height - 16))
+        case .top:
+            return CGRect(x: bounds.minX + 8, y: midY + 4, width: max(0, bounds.width - 16), height: max(0, bounds.maxY - midY - 12))
+        case .bottom:
+            return CGRect(x: bounds.minX + 8, y: bounds.minY + 8, width: max(0, bounds.width - 16), height: max(0, midY - bounds.minY - 12))
+        }
+    }
 }
 
-final class TerminalPaneDropTargetView: NSView {
+typealias TerminalPaneDropRouting = PaneDropRouting
+
+final class PaneDropTargetView: NSView {
     weak var hostedView: GhosttySurfaceScrollView?
-    var dropContext: TerminalPaneDropContext?
+    var dropContext: PaneDropContext?
     private var activeZone: DropZone?
+    private let dropZoneOverlayView = NSView(frame: .zero)
 #if DEBUG
     private var lastHitTestSignature: String?
 #endif
@@ -78,7 +122,11 @@ final class TerminalPaneDropTargetView: NSView {
 
     override init(frame frameRect: NSRect) {
         super.init(frame: frameRect)
-        registerForDraggedTypes([DragOverlayRoutingPolicy.bonsplitTabTransferType])
+        registerForDraggedTypes([
+            DragOverlayRoutingPolicy.bonsplitTabTransferType,
+            .fileURL,
+        ])
+        setupDropZoneOverlayView()
     }
 
     @available(*, unavailable)
@@ -86,13 +134,30 @@ final class TerminalPaneDropTargetView: NSView {
         nil
     }
 
+    override func layout() {
+        super.layout()
+        updateStandaloneDropZoneOverlay()
+    }
+
     static func shouldCaptureHitTesting(
         pasteboardTypes: [NSPasteboard.PasteboardType]?,
         eventType: NSEvent.EventType?
     ) -> Bool {
-        guard DragOverlayRoutingPolicy.hasBonsplitTabTransfer(pasteboardTypes) else { return false }
+        let hasTabTransfer = DragOverlayRoutingPolicy.hasBonsplitTabTransfer(pasteboardTypes)
+        let hasFileURL = DragOverlayRoutingPolicy.hasFileURL(pasteboardTypes)
+        guard hasTabTransfer || hasFileURL else { return false }
         guard let eventType else { return false }
 
+        if hasFileURL, !hasTabTransfer {
+            switch eventType {
+            case .leftMouseDragged, .rightMouseDragged, .otherMouseDragged,
+                 .leftMouseUp, .rightMouseUp, .otherMouseUp:
+                return true
+            default:
+                return false
+            }
+        }
+
         switch eventType {
         case .cursorUpdate,
              .mouseEntered,
@@ -101,6 +166,9 @@ final class TerminalPaneDropTargetView: NSView {
              .leftMouseDragged,
              .rightMouseDragged,
              .otherMouseDragged,
+             .leftMouseUp,
+             .rightMouseUp,
+             .otherMouseUp,
              .appKitDefined,
              .applicationDefined,
              .systemDefined,
@@ -147,27 +215,56 @@ final class TerminalPaneDropTargetView: NSView {
         }
 
         guard let dropContext,
-              let transfer = TerminalPaneDragTransfer.decode(from: sender.draggingPasteboard),
-              transfer.isFromCurrentProcess,
               let workspace = AppDelegate.shared?.workspaceFor(tabId: dropContext.workspaceId) else {
 #if DEBUG
-            cmuxDebugLog("terminal.paneDrop.perform allowed=0 reason=missingTransfer")
+            cmuxDebugLog("terminal.paneDrop.perform allowed=0 reason=missingContext")
 #endif
             return false
         }
 
-        let zone = resolvedZone(for: sender, transfer: transfer, context: dropContext, workspace: workspace)
-        let handled = workspace.performPortalPaneDrop(
-            tabId: transfer.tabId,
-            sourcePaneId: transfer.sourcePaneId,
-            targetPane: dropContext.paneId,
-            zone: zone
-        )
+        if let transfer = PaneDragTransfer.decode(from: sender.draggingPasteboard),
+           transfer.isFromCurrentProcess {
+            let zone = resolvedZone(for: sender, transfer: transfer, context: dropContext, workspace: workspace)
+            let handled = workspace.performPortalPaneDrop(
+                tabId: transfer.tabId,
+                sourcePaneId: transfer.sourcePaneId,
+                targetPane: dropContext.paneId,
+                zone: zone
+            )
+#if DEBUG
+            cmuxDebugLog(
+                "terminal.paneDrop.perform panel=\(dropContext.panelId.uuidString.prefix(5)) " +
+                "tab=\(transfer.tabId.uuidString.prefix(5)) zone=\(zone) " +
+                "pane=\(dropContext.paneId.id.uuidString.prefix(5)) handled=\(handled ? 1 : 0)"
+            )
+#endif
+            return handled
+        }
+
+        let urls = DragOverlayRoutingPolicy.fileURLs(from: sender.draggingPasteboard)
+        guard !urls.isEmpty else {
+#if DEBUG
+            cmuxDebugLog(
+                "terminal.paneDrop.perform allowed=0 panel=\(dropContext.panelId.uuidString.prefix(5)) " +
+                "reason=missingTransferAndFiles"
+            )
+#endif
+            return false
+        }
+
+        let zone = fileDropZone(for: sender)
+        let handled = workspace.handleExternalFileDrop(BonsplitController.ExternalFileDropRequest(
+            urls: urls,
+            destination: PaneDropRouting.filePreviewDestination(
+                targetPane: dropContext.paneId,
+                zone: zone
+            )
+        ))
 #if DEBUG
         cmuxDebugLog(
             "terminal.paneDrop.perform panel=\(dropContext.panelId.uuidString.prefix(5)) " +
-            "tab=\(transfer.tabId.uuidString.prefix(5)) zone=\(zone) " +
-            "pane=\(dropContext.paneId.id.uuidString.prefix(5)) handled=\(handled ? 1 : 0)"
+            "fileURLs=\(urls.count) zone=\(zone) pane=\(dropContext.paneId.id.uuidString.prefix(5)) " +
+            "handled=\(handled ? 1 : 0)"
         )
 #endif
         return handled
@@ -181,38 +278,58 @@ final class TerminalPaneDropTargetView: NSView {
         }
 
         guard let dropContext,
-              let transfer = TerminalPaneDragTransfer.decode(from: sender.draggingPasteboard),
-              transfer.isFromCurrentProcess,
               let workspace = AppDelegate.shared?.workspaceFor(tabId: dropContext.workspaceId) else {
             clearDragState(phase: "\(phase).reject")
             return []
         }
 
-        let zone = resolvedZone(
-            for: sender,
-            transfer: transfer,
-            context: dropContext,
-            workspace: workspace
-        )
-        activeZone = zone
-        hostedView?.setDropZoneOverlay(zone: zone)
+        if let transfer = PaneDragTransfer.decode(from: sender.draggingPasteboard),
+           transfer.isFromCurrentProcess {
+            let zone = resolvedZone(
+                for: sender,
+                transfer: transfer,
+                context: dropContext,
+                workspace: workspace
+            )
+            setActiveDropZone(zone)
+#if DEBUG
+            cmuxDebugLog(
+                "terminal.paneDrop.\(phase) panel=\(dropContext.panelId.uuidString.prefix(5)) " +
+                "tab=\(transfer.tabId.uuidString.prefix(5)) zone=\(zone)"
+            )
+#endif
+            return .move
+        }
+
+        guard !DragOverlayRoutingPolicy.fileURLs(from: sender.draggingPasteboard).isEmpty else {
+            clearDragState(phase: "\(phase).reject")
+            return []
+        }
+
+        let zone = fileDropZone(for: sender)
+        setActiveDropZone(zone)
 #if DEBUG
         cmuxDebugLog(
             "terminal.paneDrop.\(phase) panel=\(dropContext.panelId.uuidString.prefix(5)) " +
-            "tab=\(transfer.tabId.uuidString.prefix(5)) zone=\(zone)"
+            "fileURL=1 zone=\(zone)"
         )
 #endif
-        return .move
+        return .copy
+    }
+
+    private func fileDropZone(for sender: any NSDraggingInfo) -> DropZone {
+        let location = convert(sender.draggingLocation, from: nil)
+        return PaneDropRouting.zone(for: location, in: bounds.size)
     }
 
     private func resolvedZone(
         for sender: any NSDraggingInfo,
-        transfer: TerminalPaneDragTransfer,
-        context: TerminalPaneDropContext,
+        transfer: PaneDragTransfer,
+        context: PaneDropContext,
         workspace: Workspace
     ) -> DropZone {
         let location = convert(sender.draggingLocation, from: nil)
-        let proposedZone = TerminalPaneDropRouting.zone(for: location, in: bounds.size)
+        let proposedZone = PaneDropRouting.zone(for: location, in: bounds.size)
         return workspace.portalPaneDropZone(
             tabId: transfer.tabId,
             sourcePaneId: transfer.sourcePaneId,
@@ -228,10 +345,39 @@ final class TerminalPaneDropTargetView: NSView {
             .result
     }
 
+    private func setupDropZoneOverlayView() {
+        dropZoneOverlayView.wantsLayer = true
+        dropZoneOverlayView.layer?.backgroundColor = cmuxAccentNSColor().withAlphaComponent(0.25).cgColor
+        dropZoneOverlayView.layer?.borderColor = cmuxAccentNSColor().cgColor
+        dropZoneOverlayView.layer?.borderWidth = 2
+        dropZoneOverlayView.layer?.cornerRadius = 8
+        dropZoneOverlayView.isHidden = true
+        dropZoneOverlayView.autoresizingMask = []
+        addSubview(dropZoneOverlayView)
+    }
+
+    private func setActiveDropZone(_ zone: DropZone?) {
+        activeZone = zone
+        if let hostedView {
+            hostedView.setDropZoneOverlay(zone: zone)
+            dropZoneOverlayView.isHidden = true
+        } else {
+            updateStandaloneDropZoneOverlay()
+        }
+    }
+
+    private func updateStandaloneDropZoneOverlay() {
+        guard hostedView == nil, let activeZone else {
+            dropZoneOverlayView.isHidden = true
+            return
+        }
+        dropZoneOverlayView.frame = PaneDropRouting.overlayFrame(for: activeZone, in: bounds)
+        dropZoneOverlayView.isHidden = false
+    }
+
     private func clearDragState(phase: String) {
         guard activeZone != nil else { return }
-        activeZone = nil
-        hostedView?.setDropZoneOverlay(zone: nil)
+        setActiveDropZone(nil)
 #if DEBUG
         if let dropContext {
             cmuxDebugLog(
@@ -248,11 +394,13 @@ final class TerminalPaneDropTargetView: NSView {
         eventType: NSEvent.EventType?
     ) {
         let hasTransferType = DragOverlayRoutingPolicy.hasBonsplitTabTransfer(pasteboardTypes)
-        guard hasTransferType || capture else { return }
+        let hasFileURL = DragOverlayRoutingPolicy.hasFileURL(pasteboardTypes)
+        guard hasTransferType || hasFileURL || capture else { return }
 
         let signature = [
             capture ? "1" : "0",
             hasTransferType ? "1" : "0",
+            hasFileURL ? "1" : "0",
             String(describing: dropContext != nil),
             eventType.map { String($0.rawValue) } ?? "nil",
         ].joined(separator: "|")
@@ -262,9 +410,28 @@ final class TerminalPaneDropTargetView: NSView {
         let types = pasteboardTypes?.map(\.rawValue).joined(separator: ",") ?? "-"
         cmuxDebugLog(
             "terminal.paneDrop.hitTest capture=\(capture ? 1 : 0) " +
-            "hasTransfer=\(hasTransferType ? 1 : 0) context=\(dropContext != nil ? 1 : 0) " +
+            "hasTransfer=\(hasTransferType ? 1 : 0) hasFileURL=\(hasFileURL ? 1 : 0) " +
+            "context=\(dropContext != nil ? 1 : 0) " +
             "event=\(eventType.map { String($0.rawValue) } ?? "nil") types=\(types)"
         )
     }
 #endif
 }
+
+typealias TerminalPaneDropTargetView = PaneDropTargetView
+
+struct PaneDropTargetRepresentable: NSViewRepresentable {
+    let dropContext: PaneDropContext?
+
+    func makeNSView(context: Context) -> PaneDropTargetView {
+        PaneDropTargetView(frame: .zero)
+    }
+
+    func updateNSView(_ nsView: PaneDropTargetView, context: Context) {
+        nsView.dropContext = dropContext
+        nsView.hostedView = nil
+        if dropContext == nil {
+            nsView.draggingExited(nil)
+        }
+    }
+}
diff --git a/Sources/TerminalWindowPortal.swift b/Sources/TerminalWindowPortal.swift
index d95f644980ab..9c8cdea247ab 100644
--- a/Sources/TerminalWindowPortal.swift
+++ b/Sources/TerminalWindowPortal.swift
@@ -1763,6 +1763,25 @@ final class WindowTerminalPortal: NSObject {
 
         return nil
     }
+
+    func terminalPaneDropTargetAtWindowPoint(_ windowPoint: NSPoint) -> TerminalPaneDropTargetView? {
+        guard ensureInstalled() else { return nil }
+        let point = hostView.convert(windowPoint, from: nil)
+
+        for subview in hostView.subviews.reversed() {
+            guard let hostedView = subview as? GhosttySurfaceScrollView else { continue }
+            let hostedId = ObjectIdentifier(hostedView)
+            guard entriesByHostedId[hostedId] != nil else { continue }
+            guard !hostedView.isHidden else { continue }
+            guard hostedView.frame.contains(point) else { continue }
+            let localPoint = hostedView.convert(point, from: hostView)
+            if let target = hostedView.paneDropTargetForDrop(at: localPoint) {
+                return target
+            }
+        }
+
+        return nil
+    }
 }
 
 @MainActor
@@ -2097,6 +2116,14 @@ enum TerminalWindowPortalRegistry {
         return portal.terminalViewAtWindowPoint(windowPoint)
     }
 
+    static func terminalPaneDropTargetAtWindowPoint(
+        _ windowPoint: NSPoint,
+        in window: NSWindow
+    ) -> TerminalPaneDropTargetView? {
+        let portal = portal(for: window)
+        return portal.terminalPaneDropTargetAtWindowPoint(windowPoint)
+    }
+
 #if DEBUG
     static func debugPortalCount() -> Int {
         portalsByWindowId.count
diff --git a/Sources/Workspace.swift b/Sources/Workspace.swift
index 01bd18b6e828..2c8814de0284 100644
--- a/Sources/Workspace.swift
+++ b/Sources/Workspace.swift
@@ -374,7 +374,9 @@ extension Workspace {
 
         let panelTitle = panelTitle(panelId: panelId)
         let customTitle = panelCustomTitles[panelId]
-        let directory = panelDirectories[panelId] ?? effectiveRestorableAgent?.workingDirectory
+        let directory = panelDirectories[panelId]
+            ?? effectiveRestorableAgent?.workingDirectory
+            ?? (panel as? TerminalPanel)?.requestedWorkingDirectory
         let isPinned = pinnedPanelIds.contains(panelId)
         let isManuallyUnread = manualUnreadPanelIds.contains(panelId)
         let branchSnapshot = panelGitBranches[panelId].map {
@@ -12447,7 +12449,7 @@ final class Workspace: Identifiable, ObservableObject {
         }
     }
 
-    private func handleExternalFileDrop(_ request: BonsplitController.ExternalFileDropRequest) -> Bool {
+    func handleExternalFileDrop(_ request: BonsplitController.ExternalFileDropRequest) -> Bool {
         let entries = request.urls
             .filter(\.isFileURL)
             .map {
diff --git a/Sources/WorkspaceContentView.swift b/Sources/WorkspaceContentView.swift
index 3c1f5a8ee729..574bfe2e7404 100644
--- a/Sources/WorkspaceContentView.swift
+++ b/Sources/WorkspaceContentView.swift
@@ -234,6 +234,7 @@ struct WorkspaceContentView: View {
                 )
                 PanelContentView(
                     panel: panel,
+                    workspaceId: workspace.id,
                     paneId: paneId,
                     isFocused: isFocused,
                     isSelectedInPane: isSelectedInPane,
diff --git a/cmuxTests/PortalTabDragRoutingTests.swift b/cmuxTests/PortalTabDragRoutingTests.swift
index 909fc7a34074..3cbeb018d094 100644
--- a/cmuxTests/PortalTabDragRoutingTests.swift
+++ b/cmuxTests/PortalTabDragRoutingTests.swift
@@ -168,15 +168,38 @@ final class PortalTabDragRoutingTests: XCTestCase {
         )
     }
 
-    func testTerminalPaneDropTargetIgnoresExternalFileImageAndBrowserDrags() {
+    func testTerminalPaneDropTargetCapturesFinderFilesButIgnoresBrowserPayloads() {
+        XCTAssertTrue(
+            TerminalPaneDropTargetView.shouldCaptureHitTesting(
+                pasteboardTypes: [.fileURL],
+                eventType: .leftMouseDragged
+            )
+        )
+        XCTAssertTrue(
+            TerminalPaneDropTargetView.shouldCaptureHitTesting(
+                pasteboardTypes: [.fileURL],
+                eventType: .leftMouseUp
+            )
+        )
+        XCTAssertTrue(
+            TerminalPaneDropTargetView.shouldCaptureHitTesting(
+                pasteboardTypes: [.fileURL, .png],
+                eventType: .leftMouseDragged
+            )
+        )
+        XCTAssertTrue(
+            TerminalPaneDropTargetView.shouldCaptureHitTesting(
+                pasteboardTypes: [DragOverlayRoutingPolicy.filePreviewTransferType, DragOverlayRoutingPolicy.bonsplitTabTransferType, .fileURL],
+                eventType: .leftMouseUp
+            )
+        )
+
         let externalPayloads: [[NSPasteboard.PasteboardType]] = [
-            [.fileURL],
             [.URL],
             [.png],
             [.tiff],
             [.html],
             [.string],
-            [.fileURL, .png],
         ]
 
         for pasteboardTypes in externalPayloads {
@@ -189,4 +212,40 @@ final class PortalTabDragRoutingTests: XCTestCase {
             )
         }
     }
+
+    func testPaneDropRoutingMapsFileDropsToSharedBonsplitDestinations() {
+        let paneId = PaneID()
+
+        if case let .insert(targetPane, targetIndex) = PaneDropRouting.filePreviewDestination(
+            targetPane: paneId,
+            zone: .center
+        ) {
+            XCTAssertEqual(targetPane, paneId)
+            XCTAssertNil(targetIndex)
+        } else {
+            XCTFail("Center drops should insert into the hovered pane")
+        }
+
+        if case let .split(targetPane, orientation, insertFirst) = PaneDropRouting.filePreviewDestination(
+            targetPane: paneId,
+            zone: .left
+        ) {
+            XCTAssertEqual(targetPane, paneId)
+            XCTAssertEqual(orientation, .horizontal)
+            XCTAssertTrue(insertFirst)
+        } else {
+            XCTFail("Left drops should use Bonsplit horizontal split routing")
+        }
+
+        if case let .split(targetPane, orientation, insertFirst) = PaneDropRouting.filePreviewDestination(
+            targetPane: paneId,
+            zone: .bottom
+        ) {
+            XCTAssertEqual(targetPane, paneId)
+            XCTAssertEqual(orientation, .vertical)
+            XCTAssertFalse(insertFirst)
+        } else {
+            XCTFail("Bottom drops should use Bonsplit vertical split routing")
+        }
+    }
 }
diff --git a/cmuxTests/WindowAndDragTests.swift b/cmuxTests/WindowAndDragTests.swift
index 8bc15782b598..35c2cc9ae659 100644
--- a/cmuxTests/WindowAndDragTests.swift
+++ b/cmuxTests/WindowAndDragTests.swift
@@ -1854,7 +1854,7 @@ final class FilePreviewDragPasteboardWriterTests: XCTestCase {
         super.tearDown()
     }
 
-    func testRegistrationIsLazyAndDiscardedFromDragPasteboard() throws {
+    func testRegistrationIsPreparedWhenDragTypesAreRequested() throws {
         let fileURL = URL(fileURLWithPath: "/tmp/example.txt").standardizedFileURL
         let writer = FilePreviewDragPasteboardWriter(
             filePath: fileURL.path,
@@ -1863,7 +1863,10 @@ final class FilePreviewDragPasteboardWriterTests: XCTestCase {
         let dragPasteboard = NSPasteboard(name: .drag)
 
         XCTAssertNil(FilePreviewDragPasteboardWriter.dragID(from: dragPasteboard))
-        XCTAssertTrue(writer.writableTypes(for: dragPasteboard).contains(.fileURL))
+        let writableTypes = writer.writableTypes(for: dragPasteboard)
+        XCTAssertTrue(writableTypes.contains(.fileURL))
+        let preparedDragID = try XCTUnwrap(FilePreviewDragPasteboardWriter.dragID(from: dragPasteboard))
+        XCTAssertTrue(FilePreviewDragRegistry.shared.contains(id: preparedDragID))
         XCTAssertEqual(
             writer.pasteboardPropertyList(forType: .fileURL) as? String,
             fileURL.absoluteString
@@ -1873,6 +1876,7 @@ final class FilePreviewDragPasteboardWriterTests: XCTestCase {
             writer.pasteboardPropertyList(forType: DragOverlayRoutingPolicy.filePreviewTransferType) as? Data
         )
         let dragID = try XCTUnwrap(FilePreviewDragPasteboardWriter.dragID(from: filePreviewData))
+        XCTAssertEqual(dragID, preparedDragID)
         XCTAssertTrue(FilePreviewDragRegistry.shared.contains(id: dragID))
 
         let bonsplitData = try XCTUnwrap(
@@ -2518,7 +2522,7 @@ final class FileDropOverlayViewTests: XCTestCase {
         )
     }
 
-    func testOverlayDoesNotCaptureFileDragLifecycleWhenPanePreviewDropsAreEnabled() {
+    func testOverlayDelegatesBrowserFileDragLifecycleToPortalHostedWebView() {
         let window = NSWindow(
             contentRect: NSRect(x: 0, y: 0, width: 420, height: 280),
             styleMask: [.titled, .closable],
@@ -2566,15 +2570,15 @@ final class FileDropOverlayViewTests: XCTestCase {
             pasteboard: pasteboard
         )
 
-        XCTAssertEqual(overlay.draggingEntered(dragInfo), [])
-        XCTAssertFalse(overlay.prepareForDragOperation(dragInfo))
-        XCTAssertFalse(overlay.performDragOperation(dragInfo))
+        XCTAssertEqual(overlay.draggingEntered(dragInfo), .copy)
+        XCTAssertTrue(overlay.prepareForDragOperation(dragInfo))
+        XCTAssertTrue(overlay.performDragOperation(dragInfo))
         overlay.concludeDragOperation(dragInfo)
 
         XCTAssertEqual(
             webView.dragCalls,
-            [],
-            "Finder file drops should reach pane-level Bonsplit preview targets instead of the root overlay"
+            ["entered", "prepare", "perform", "conclude"],
+            "Finder file drops over browser panes should still reach the portal-hosted WKWebView"
         )
     }
 }
diff --git a/vendor/bonsplit b/vendor/bonsplit
index f9b761863467..aa4f69723ea1 160000
--- a/vendor/bonsplit
+++ b/vendor/bonsplit
@@ -1 +1 @@
-Subproject commit f9b7618634677618c225120d5dd4d574ffaec2d3
+Subproject commit aa4f69723ea1a5a59df9dc0c9e7bbdfb1f96abc1

From 7763691d01b8f4d369bf48c93b3fa4e9effe9efe Mon Sep 17 00:00:00 2001
From: Lawrence Chen <lawrencecchen@users.noreply.github.com>
Date: Tue, 5 May 2026 17:11:22 -0700
Subject: [PATCH 2/4] Split shared file drop support

---
 GhosttyTabs.xcodeproj/project.pbxproj      |  12 +
 Sources/ContentView.swift                  | 135 +----------
 Sources/DragOverlayRoutingPolicy.swift     | 128 +++++++++++
 Sources/Panels/FilePreviewPanel.swift      | 198 ----------------
 Sources/Panels/FilePreviewTextEditor.swift | 200 ++++++++++++++++
 Sources/TerminalWindowPortal.swift         |  57 ++---
 Sources/WorkspaceContentView.swift         |   1 -
 cmuxTests/FileDropOverlayViewTests.swift   | 256 +++++++++++++++++++++
 cmuxTests/WindowAndDragTests.swift         | 247 --------------------
 9 files changed, 612 insertions(+), 622 deletions(-)
 create mode 100644 Sources/DragOverlayRoutingPolicy.swift
 create mode 100644 Sources/Panels/FilePreviewTextEditor.swift
 create mode 100644 cmuxTests/FileDropOverlayViewTests.swift

diff --git a/GhosttyTabs.xcodeproj/project.pbxproj b/GhosttyTabs.xcodeproj/project.pbxproj
index b0ea94f561da..3d7b3174155a 100644
--- a/GhosttyTabs.xcodeproj/project.pbxproj
+++ b/GhosttyTabs.xcodeproj/project.pbxproj
@@ -57,6 +57,9 @@
 		D0B1000CA1B2C3D4E5F60001 /* CmuxWebViewDragRoutingTests.swift in Sources */ = {isa = PBXBuildFile; fileRef = D0B1000DA1B2C3D4E5F60001 /* CmuxWebViewDragRoutingTests.swift */; };
 		D0B1000EA1B2C3D4E5F60001 /* BrowserPaneDropRoutingTests.swift in Sources */ = {isa = PBXBuildFile; fileRef = D0B1000FA1B2C3D4E5F60001 /* BrowserPaneDropRoutingTests.swift */; };
 		D0B10010A1B2C3D4E5F60001 /* BonsplitTabBarDebug.swift in Sources */ = {isa = PBXBuildFile; fileRef = D0B10011A1B2C3D4E5F60001 /* BonsplitTabBarDebug.swift */; };
+		D0B10014A1B2C3D4E5F60001 /* DragOverlayRoutingPolicy.swift in Sources */ = {isa = PBXBuildFile; fileRef = D0B10015A1B2C3D4E5F60001 /* DragOverlayRoutingPolicy.swift */; };
+		D0B10016A1B2C3D4E5F60001 /* FilePreviewTextEditor.swift in Sources */ = {isa = PBXBuildFile; fileRef = D0B10017A1B2C3D4E5F60001 /* FilePreviewTextEditor.swift */; };
+		D0B10018A1B2C3D4E5F60001 /* FileDropOverlayViewTests.swift in Sources */ = {isa = PBXBuildFile; fileRef = D0B10019A1B2C3D4E5F60001 /* FileDropOverlayViewTests.swift */; };
 		D7AB34300000000000000001 /* SidebarDropPlanner.swift in Sources */ = {isa = PBXBuildFile; fileRef = D7AB34300000000000000002 /* SidebarDropPlanner.swift */; };
 		D7AB34300000000000000003 /* SidebarBonsplitTabWorkspaceDropOverlay.swift in Sources */ = {isa = PBXBuildFile; fileRef = D7AB34300000000000000004 /* SidebarBonsplitTabWorkspaceDropOverlay.swift */; };
 		D7AB34300000000000000005 /* SidebarWorkspaceDropPlannerTests.swift in Sources */ = {isa = PBXBuildFile; fileRef = D7AB34300000000000000006 /* SidebarWorkspaceDropPlannerTests.swift */; };
@@ -420,6 +423,7 @@
 		D0B10009A1B2C3D4E5F60001 /* PortalTabDragRoutingTests.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = PortalTabDragRoutingTests.swift; sourceTree = "<group>"; };
 		D0B1000DA1B2C3D4E5F60001 /* CmuxWebViewDragRoutingTests.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = CmuxWebViewDragRoutingTests.swift; sourceTree = "<group>"; };
 		D0B1000FA1B2C3D4E5F60001 /* BrowserPaneDropRoutingTests.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = BrowserPaneDropRoutingTests.swift; sourceTree = "<group>"; };
+		D0B10019A1B2C3D4E5F60001 /* FileDropOverlayViewTests.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = FileDropOverlayViewTests.swift; sourceTree = "<group>"; };
 		10D684CFFB8CDEF89CE2D9E1 /* TabManagerSessionSnapshotTests.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = TabManagerSessionSnapshotTests.swift; sourceTree = "<group>"; };
 		14A7DC53B9CA33BE2A421711 /* WorkspacePullRequestSidebarTests.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = WorkspacePullRequestSidebarTests.swift; sourceTree = "<group>"; };
 		1A1B2C3D4E5F607180000002 /* WorkspacePromptSubmit.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = WorkspacePromptSubmit.swift; sourceTree = "<group>"; };
@@ -527,6 +531,8 @@
 		D0B1000BA1B2C3D4E5F60001 /* GhosttyTerminalViewSupport.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = GhosttyTerminalViewSupport.swift; sourceTree = "<group>"; };
 		D0B10013A1B2C3D4E5F60001 /* GhosttyApp+SurfaceConfigurationReload.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = "GhosttyApp+SurfaceConfigurationReload.swift"; sourceTree = "<group>"; };
 		D0B10001A1B2C3D4E5F60001 /* TerminalPaneDropTargetView.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = TerminalPaneDropTargetView.swift; sourceTree = "<group>"; };
+		D0B10015A1B2C3D4E5F60001 /* DragOverlayRoutingPolicy.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = DragOverlayRoutingPolicy.swift; sourceTree = "<group>"; };
+		D0B10017A1B2C3D4E5F60001 /* FilePreviewTextEditor.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = Panels/FilePreviewTextEditor.swift; sourceTree = "<group>"; };
 		A5001016 /* GhosttyKit.xcframework */ = {isa = PBXFileReference; lastKnownFileType = wrapper.xcframework; path = GhosttyKit.xcframework; sourceTree = "<group>"; };
 		A5001017 /* ghostty.h */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.c.h; path = ghostty.h; sourceTree = "<group>"; };
 		A5001018 /* cmux-Bridging-Header.h */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.c.h; path = "cmux-Bridging-Header.h"; sourceTree = "<group>"; };
@@ -917,6 +923,7 @@
 				A50019B1 /* SettingsSearchAliases.swift */,
 				A5001012 /* ContentView.swift */,
 				C0DE35010000000000000002 /* SidebarScrim.swift */,
+				D0B10015A1B2C3D4E5F60001 /* DragOverlayRoutingPolicy.swift */,
 				C3408A000000000000000002 /* ContentView+RightSidebarCommandPalette.swift */,
 				C3408A000000000000000006 /* ContentView+ViewCommandPalette.swift */,
 				D7AB00000000000000000004 /* ContentView+MoveTabToNewWorkspace.swift */,
@@ -1031,6 +1038,7 @@
 				A5001418 /* MarkdownPanel.swift */,
 				A5001419 /* MarkdownPanelView.swift */,
 				A5001423 /* FilePreviewPanel.swift */,
+				D0B10017A1B2C3D4E5F60001 /* FilePreviewTextEditor.swift */,
 				A5001442A5001442A5001442 /* FilePreviewModeSupport.swift */,
 				A5001444A5001444A5001444 /* FilePreviewWorkspaceOpenSupport.swift */,
 				A5001446A5001446A5001446 /* FilePreviewMagnifyingPDFView.swift */,
@@ -1177,6 +1185,7 @@
 				1A1B2C3D4E5F607180000004 /* WorkspacePromptSubmitTests.swift */,
 				C0DE31390000000000000102 /* CMUXOpenCommandTests.swift */,
 				BEE83F8394D90ACACD8E19DD /* WindowAndDragTests.swift */,
+				D0B10019A1B2C3D4E5F60001 /* FileDropOverlayViewTests.swift */,
 				2907A0042907A0042907A004 /* AppDelegateIssue2907RoutingTests.swift */,
 				A5001435A5001435A5001435 /* FilePreviewPDFThumbnailSidebarTests.swift */,
 				C0DE31390000000000000104 /* FilePreviewReviewFeedbackTests.swift */,
@@ -1527,6 +1536,7 @@
 				D0B1000AA1B2C3D4E5F60001 /* GhosttyTerminalViewSupport.swift in Sources */,
 				D0B10012A1B2C3D4E5F60001 /* GhosttyApp+SurfaceConfigurationReload.swift in Sources */,
 				D0B10000A1B2C3D4E5F60001 /* TerminalPaneDropTargetView.swift in Sources */,
+				D0B10014A1B2C3D4E5F60001 /* DragOverlayRoutingPolicy.swift in Sources */,
 				A5001532 /* TerminalWindowPortal.swift in Sources */,
 				D0B10006A1B2C3D4E5F60001 /* TerminalWindowPortalDebug.swift in Sources */,
 				A5001534 /* BrowserWindowPortal.swift in Sources */,
@@ -1577,6 +1587,7 @@
 				A5001420 /* MarkdownPanel.swift in Sources */,
 				A5001421 /* MarkdownPanelView.swift in Sources */,
 				A5001422 /* FilePreviewPanel.swift in Sources */,
+				D0B10016A1B2C3D4E5F60001 /* FilePreviewTextEditor.swift in Sources */,
 				A5001443A5001443A5001443 /* FilePreviewModeSupport.swift in Sources */,
 				A5001445A5001445A5001445 /* FilePreviewWorkspaceOpenSupport.swift in Sources */,
 				A5001447A5001447A5001447 /* FilePreviewMagnifyingPDFView.swift in Sources */,
@@ -1760,6 +1771,7 @@
 				1A1B2C3D4E5F607180000003 /* WorkspacePromptSubmitTests.swift in Sources */,
 				C0DE31390000000000000101 /* CMUXOpenCommandTests.swift in Sources */,
 				063BC42CEE257D6213A2E30C /* WindowAndDragTests.swift in Sources */,
+				D0B10018A1B2C3D4E5F60001 /* FileDropOverlayViewTests.swift in Sources */,
 				2907A0032907A0032907A003 /* AppDelegateIssue2907RoutingTests.swift in Sources */,
 				A5001436A5001436A5001436 /* FilePreviewPDFThumbnailSidebarTests.swift in Sources */,
 				C0DE31390000000000000103 /* FilePreviewReviewFeedbackTests.swift in Sources */,
diff --git a/Sources/ContentView.swift b/Sources/ContentView.swift
index becf0d59b70f..71122f323ae0 100644
--- a/Sources/ContentView.swift
+++ b/Sources/ContentView.swift
@@ -7,139 +7,6 @@ import ObjectiveC
 import UniformTypeIdentifiers
 import WebKit
 
-// MARK: - File Drop Overlay
-
-enum DragOverlayRoutingPolicy {
-    static let bonsplitTabTransferType = NSPasteboard.PasteboardType("com.splittabbar.tabtransfer")
-    static let filePreviewTransferType = NSPasteboard.PasteboardType("com.cmux.filepreview.transfer")
-    static let sidebarTabReorderType = NSPasteboard.PasteboardType(SidebarTabDragPayload.typeIdentifier)
-
-    static func hasBonsplitTabTransfer(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
-        guard let pasteboardTypes else { return false }
-        return pasteboardTypes.contains(bonsplitTabTransferType)
-    }
-
-    static func hasFilePreviewTransfer(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
-        guard let pasteboardTypes else { return false }
-        return pasteboardTypes.contains(filePreviewTransferType)
-    }
-
-    static func hasSidebarTabReorder(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
-        guard let pasteboardTypes else { return false }
-        return pasteboardTypes.contains(sidebarTabReorderType)
-    }
-
-    static func hasFileURL(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
-        guard let pasteboardTypes else { return false }
-        return pasteboardTypes.contains(.fileURL)
-    }
-
-    static func fileURLs(from pasteboard: NSPasteboard) -> [URL] {
-        let objects = pasteboard.readObjects(
-            forClasses: [NSURL.self],
-            options: [.urlReadingFileURLsOnly: true]
-        ) ?? []
-        return objects.compactMap { object -> URL? in
-            if let url = object as? URL {
-                return url.isFileURL ? url : nil
-            }
-            if let url = object as? NSURL {
-                let bridged = url as URL
-                return bridged.isFileURL ? bridged : nil
-            }
-            return nil
-        }
-    }
-
-    static func shouldCaptureFileDropDestination(
-        pasteboardTypes: [NSPasteboard.PasteboardType]?,
-        hasLocalDraggingSource: Bool
-    ) -> Bool {
-        // The window overlay is the stable AppKit drag destination for Finder
-        // and sidebar file drags. It delegates file drops to pane-level
-        // Bonsplit targets so split affordances and preview routing stay local
-        // to the hovered pane.
-        _ = hasLocalDraggingSource
-        guard hasFileURL(pasteboardTypes) else { return false }
-        return true
-    }
-
-    static func shouldCaptureFileDropDestination(
-        pasteboardTypes: [NSPasteboard.PasteboardType]?
-    ) -> Bool {
-        shouldCaptureFileDropDestination(
-            pasteboardTypes: pasteboardTypes,
-            hasLocalDraggingSource: false
-        )
-    }
-
-    static func shouldCaptureFileDropOverlay(
-        pasteboardTypes: [NSPasteboard.PasteboardType]?,
-        eventType: NSEvent.EventType?
-    ) -> Bool {
-        guard shouldCaptureFileDropDestination(pasteboardTypes: pasteboardTypes) else { return false }
-        guard isDragMouseEvent(eventType) else { return false }
-        return true
-    }
-
-    static func shouldCaptureSidebarExternalOverlay(
-        hasSidebarDragState: Bool,
-        pasteboardTypes: [NSPasteboard.PasteboardType]?
-    ) -> Bool {
-        guard hasSidebarDragState else { return false }
-        return hasSidebarTabReorder(pasteboardTypes)
-    }
-
-    static func shouldCaptureSidebarExternalOverlay(
-        draggedTabId: UUID?,
-        pasteboardTypes: [NSPasteboard.PasteboardType]?
-    ) -> Bool {
-        shouldCaptureSidebarExternalOverlay(
-            hasSidebarDragState: draggedTabId != nil,
-            pasteboardTypes: pasteboardTypes
-        )
-    }
-
-    static func shouldPassThroughPortalHitTesting(
-        pasteboardTypes: [NSPasteboard.PasteboardType]?,
-        eventType: NSEvent.EventType?
-    ) -> Bool {
-        guard isPortalDragEvent(eventType) else { return false }
-        return hasBonsplitTabTransfer(pasteboardTypes)
-            || hasFilePreviewTransfer(pasteboardTypes)
-            || hasSidebarTabReorder(pasteboardTypes)
-    }
-
-    static func shouldPassThroughTerminalPortalHitTesting(
-        pasteboardTypes: [NSPasteboard.PasteboardType]?,
-        eventType: NSEvent.EventType?
-    ) -> Bool {
-        guard isPortalDragEvent(eventType) else { return false }
-        return shouldPassThroughPortalHitTesting(
-            pasteboardTypes: pasteboardTypes,
-            eventType: eventType
-        ) || hasFileURL(pasteboardTypes)
-    }
-
-    private static func isDragMouseEvent(_ eventType: NSEvent.EventType?) -> Bool {
-        eventType == .leftMouseDragged
-            || eventType == .rightMouseDragged
-            || eventType == .otherMouseDragged
-    }
-
-    private static func isPortalDragEvent(_ eventType: NSEvent.EventType?) -> Bool {
-        // Restrict portal pass-through to explicit drag-motion events so stale
-        // NSPasteboard(name: .drag) types cannot hijack normal pointer input.
-        guard let eventType else { return false }
-        switch eventType {
-        case .leftMouseDragged, .rightMouseDragged, .otherMouseDragged:
-            return true
-        default:
-            return false
-        }
-    }
-}
-
 /// Transparent NSView installed on the window's theme frame (above the NSHostingView) to
 /// handle file/URL drags from Finder. Nested NSHostingController layers (created by bonsplit's
 /// SinglePaneWrapper) prevent AppKit's NSDraggingDestination routing from reaching deeply
@@ -14935,7 +14802,7 @@ private final class SidebarDragAutoScrollController: ObservableObject {
     }
 }
 
-private enum SidebarTabDragPayload {
+enum SidebarTabDragPayload {
     static let typeIdentifier = "com.cmux.sidebar-tab-reorder"
     static let dropContentType = UTType(exportedAs: typeIdentifier)
     static let dropContentTypes: [UTType] = [dropContentType]
diff --git a/Sources/DragOverlayRoutingPolicy.swift b/Sources/DragOverlayRoutingPolicy.swift
new file mode 100644
index 000000000000..e716bf39e45e
--- /dev/null
+++ b/Sources/DragOverlayRoutingPolicy.swift
@@ -0,0 +1,128 @@
+import AppKit
+import Foundation
+
+enum DragOverlayRoutingPolicy {
+    static let bonsplitTabTransferType = NSPasteboard.PasteboardType("com.splittabbar.tabtransfer")
+    static let filePreviewTransferType = NSPasteboard.PasteboardType("com.cmux.filepreview.transfer")
+    static let sidebarTabReorderType = NSPasteboard.PasteboardType(SidebarTabDragPayload.typeIdentifier)
+
+    static func hasBonsplitTabTransfer(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
+        guard let pasteboardTypes else { return false }
+        return pasteboardTypes.contains(bonsplitTabTransferType)
+    }
+
+    static func hasFilePreviewTransfer(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
+        guard let pasteboardTypes else { return false }
+        return pasteboardTypes.contains(filePreviewTransferType)
+    }
+
+    static func hasSidebarTabReorder(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
+        guard let pasteboardTypes else { return false }
+        return pasteboardTypes.contains(sidebarTabReorderType)
+    }
+
+    static func hasFileURL(_ pasteboardTypes: [NSPasteboard.PasteboardType]?) -> Bool {
+        guard let pasteboardTypes else { return false }
+        return pasteboardTypes.contains(.fileURL)
+    }
+
+    static func fileURLs(from pasteboard: NSPasteboard) -> [URL] {
+        let objects = pasteboard.readObjects(
+            forClasses: [NSURL.self],
+            options: [.urlReadingFileURLsOnly: true]
+        ) ?? []
+        return objects.compactMap { object -> URL? in
+            if let url = object as? URL {
+                return url.isFileURL ? url : nil
+            }
+            if let url = object as? NSURL {
+                let bridged = url as URL
+                return bridged.isFileURL ? bridged : nil
+            }
+            return nil
+        }
+    }
+
+    static func shouldCaptureFileDropDestination(
+        pasteboardTypes: [NSPasteboard.PasteboardType]?,
+        hasLocalDraggingSource: Bool
+    ) -> Bool {
+        // The window overlay delegates Finder/sidebar files to pane-level Bonsplit targets.
+        _ = hasLocalDraggingSource
+        guard hasFileURL(pasteboardTypes) else { return false }
+        return true
+    }
+
+    static func shouldCaptureFileDropDestination(
+        pasteboardTypes: [NSPasteboard.PasteboardType]?
+    ) -> Bool {
+        shouldCaptureFileDropDestination(
+            pasteboardTypes: pasteboardTypes,
+            hasLocalDraggingSource: false
+        )
+    }
+
+    static func shouldCaptureFileDropOverlay(
+        pasteboardTypes: [NSPasteboard.PasteboardType]?,
+        eventType: NSEvent.EventType?
+    ) -> Bool {
+        guard shouldCaptureFileDropDestination(pasteboardTypes: pasteboardTypes) else { return false }
+        guard isDragMouseEvent(eventType) else { return false }
+        return true
+    }
+
+    static func shouldCaptureSidebarExternalOverlay(
+        hasSidebarDragState: Bool,
+        pasteboardTypes: [NSPasteboard.PasteboardType]?
+    ) -> Bool {
+        guard hasSidebarDragState else { return false }
+        return hasSidebarTabReorder(pasteboardTypes)
+    }
+
+    static func shouldCaptureSidebarExternalOverlay(
+        draggedTabId: UUID?,
+        pasteboardTypes: [NSPasteboard.PasteboardType]?
+    ) -> Bool {
+        shouldCaptureSidebarExternalOverlay(
+            hasSidebarDragState: draggedTabId != nil,
+            pasteboardTypes: pasteboardTypes
+        )
+    }
+
+    static func shouldPassThroughPortalHitTesting(
+        pasteboardTypes: [NSPasteboard.PasteboardType]?,
+        eventType: NSEvent.EventType?
+    ) -> Bool {
+        guard isPortalDragEvent(eventType) else { return false }
+        return hasBonsplitTabTransfer(pasteboardTypes)
+            || hasFilePreviewTransfer(pasteboardTypes)
+            || hasSidebarTabReorder(pasteboardTypes)
+    }
+
+    static func shouldPassThroughTerminalPortalHitTesting(
+        pasteboardTypes: [NSPasteboard.PasteboardType]?,
+        eventType: NSEvent.EventType?
+    ) -> Bool {
+        guard isPortalDragEvent(eventType) else { return false }
+        return shouldPassThroughPortalHitTesting(
+            pasteboardTypes: pasteboardTypes,
+            eventType: eventType
+        ) || hasFileURL(pasteboardTypes)
+    }
+
+    private static func isDragMouseEvent(_ eventType: NSEvent.EventType?) -> Bool {
+        eventType == .leftMouseDragged
+            || eventType == .rightMouseDragged
+            || eventType == .otherMouseDragged
+    }
+
+    private static func isPortalDragEvent(_ eventType: NSEvent.EventType?) -> Bool {
+        guard let eventType else { return false }
+        switch eventType {
+        case .leftMouseDragged, .rightMouseDragged, .otherMouseDragged:
+            return true
+        default:
+            return false
+        }
+    }
+}
diff --git a/Sources/Panels/FilePreviewPanel.swift b/Sources/Panels/FilePreviewPanel.swift
index 1a2909f9288f..c9308c964609 100644
--- a/Sources/Panels/FilePreviewPanel.swift
+++ b/Sources/Panels/FilePreviewPanel.swift
@@ -925,204 +925,6 @@ struct FilePreviewPanelView: View {
     }
 }
 
-private struct FilePreviewTextEditor: NSViewRepresentable {
-    @ObservedObject var panel: FilePreviewPanel
-    let isVisibleInUI: Bool
-    let themeBackgroundColor: NSColor
-    let themeForegroundColor: NSColor
-
-    func makeCoordinator() -> Coordinator {
-        Coordinator(panel: panel)
-    }
-
-    func makeNSView(context: Context) -> NSScrollView {
-        let scrollView = NSScrollView()
-        scrollView.isHidden = !isVisibleInUI
-        scrollView.hasVerticalScroller = true
-        scrollView.hasHorizontalScroller = true
-        scrollView.autohidesScrollers = true
-        scrollView.borderType = .noBorder
-        scrollView.drawsBackground = true
-
-        let textView = SavingTextView()
-        textView.panel = panel
-        textView.delegate = context.coordinator
-        textView.isEditable = true
-        textView.isSelectable = true
-        textView.allowsUndo = true
-        textView.isRichText = false
-        textView.importsGraphics = false
-        textView.usesFindPanel = true
-        textView.usesFontPanel = false
-        textView.font = .monospacedSystemFont(ofSize: 13, weight: .regular)
-        textView.drawsBackground = true
-        textView.minSize = NSSize(width: 0, height: 0)
-        textView.maxSize = NSSize(width: CGFloat.greatestFiniteMagnitude, height: CGFloat.greatestFiniteMagnitude)
-        textView.isVerticallyResizable = true
-        textView.isHorizontallyResizable = true
-        textView.autoresizingMask = [.width]
-        textView.textContainer?.containerSize = NSSize(
-            width: CGFloat.greatestFiniteMagnitude,
-            height: CGFloat.greatestFiniteMagnitude
-        )
-        textView.textContainer?.widthTracksTextView = false
-        textView.applyFilePreviewTextEditorInsets()
-        textView.string = panel.textContent
-        panel.attachTextView(textView)
-
-        scrollView.documentView = textView
-        Self.applyTheme(to: scrollView, backgroundColor: themeBackgroundColor, foregroundColor: themeForegroundColor)
-        return scrollView
-    }
-
-    func updateNSView(_ scrollView: NSScrollView, context: Context) {
-        context.coordinator.panel = panel
-        scrollView.isHidden = !isVisibleInUI
-        Self.applyTheme(to: scrollView, backgroundColor: themeBackgroundColor, foregroundColor: themeForegroundColor)
-        guard let textView = scrollView.documentView as? SavingTextView else { return }
-        textView.panel = panel
-        textView.applyFilePreviewTextEditorInsets()
-        panel.attachTextView(textView)
-        guard textView.string != panel.textContent else { return }
-        context.coordinator.isApplyingPanelUpdate = true
-        textView.string = panel.textContent
-        context.coordinator.isApplyingPanelUpdate = false
-    }
-
-    private static func applyTheme(
-        to scrollView: NSScrollView,
-        backgroundColor: NSColor,
-        foregroundColor: NSColor
-    ) {
-        scrollView.backgroundColor = backgroundColor
-        scrollView.contentView.backgroundColor = backgroundColor
-        if let textView = scrollView.documentView as? NSTextView {
-            textView.backgroundColor = backgroundColor
-            textView.textColor = foregroundColor
-            textView.insertionPointColor = foregroundColor
-        }
-    }
-
-    final class Coordinator: NSObject, NSTextViewDelegate {
-        var panel: FilePreviewPanel
-        var isApplyingPanelUpdate = false
-
-        init(panel: FilePreviewPanel) {
-            self.panel = panel
-        }
-
-        func textDidChange(_ notification: Notification) {
-            guard !isApplyingPanelUpdate,
-                  let textView = notification.object as? NSTextView else { return }
-            panel.updateTextContent(textView.string)
-        }
-    }
-}
-
-enum FilePreviewTextEditorLayout {
-    static let textContainerInset = NSSize(width: 12, height: 10)
-    static let lineFragmentPadding: CGFloat = 0
-}
-
-extension NSTextView {
-    func applyFilePreviewTextEditorInsets() {
-        let targetInset = FilePreviewTextEditorLayout.textContainerInset
-        if textContainerInset.width != targetInset.width || textContainerInset.height != targetInset.height {
-            textContainerInset = targetInset
-        }
-        if textContainer?.lineFragmentPadding != FilePreviewTextEditorLayout.lineFragmentPadding {
-            textContainer?.lineFragmentPadding = FilePreviewTextEditorLayout.lineFragmentPadding
-        }
-    }
-}
-
-final class SavingTextView: NSTextView {
-    private static let defaultPreviewFontSize: CGFloat = 13
-    private static let minimumPreviewFontSize: CGFloat = 8
-    private static let maximumPreviewFontSize: CGFloat = 36
-
-    weak var panel: FilePreviewPanel?
-    private var previewFontSize: CGFloat = 13
-    private var pendingSaveShortcutChordPrefix: ShortcutStroke?
-
-    override func viewDidMoveToWindow() {
-        super.viewDidMoveToWindow()
-        applyFilePreviewTextEditorInsets()
-        panel?.retryPendingFocus()
-    }
-
-    override func performKeyEquivalent(with event: NSEvent) -> Bool {
-        guard event.type == .keyDown else {
-            return super.performKeyEquivalent(with: event)
-        }
-        guard let shouldSave = saveShortcutMatch(for: event) else {
-            return super.performKeyEquivalent(with: event)
-        }
-        if shouldSave {
-            panel?.saveTextContent()
-        }
-        return true
-    }
-
-    override func magnify(with event: NSEvent) {
-        let factor = 1.0 + event.magnification
-        guard factor.isFinite, factor > 0 else { return }
-        adjustPreviewFontSize(by: factor)
-    }
-
-    override func scrollWheel(with event: NSEvent) {
-        guard FilePreviewInteraction.hasZoomModifier(event) else {
-            super.scrollWheel(with: event)
-            return
-        }
-        adjustPreviewFontSize(by: FilePreviewInteraction.zoomFactor(forScroll: event))
-    }
-
-    override func smartMagnify(with event: NSEvent) {
-        if previewFontSize == Self.defaultPreviewFontSize {
-            setPreviewFontSize(18)
-        } else {
-            setPreviewFontSize(Self.defaultPreviewFontSize)
-        }
-    }
-
-    private func adjustPreviewFontSize(by factor: CGFloat) {
-        setPreviewFontSize(previewFontSize * factor)
-    }
-
-    private func setPreviewFontSize(_ nextFontSize: CGFloat) {
-        let clamped = min(max(nextFontSize, Self.minimumPreviewFontSize), Self.maximumPreviewFontSize)
-        guard clamped.isFinite else { return }
-        previewFontSize = clamped
-        let nextFont = NSFont.monospacedSystemFont(ofSize: clamped, weight: .regular)
-        font = nextFont
-        typingAttributes[.font] = nextFont
-    }
-
-    private func saveShortcutMatch(for event: NSEvent) -> Bool? {
-        let shortcut = KeyboardShortcutSettings.shortcut(for: .saveFilePreview)
-        guard shortcut.hasChord else {
-            pendingSaveShortcutChordPrefix = nil
-            return shortcut.matches(event: event) ? true : nil
-        }
-
-        if let pendingPrefix = pendingSaveShortcutChordPrefix {
-            pendingSaveShortcutChordPrefix = nil
-            guard pendingPrefix == shortcut.firstStroke,
-                  let secondStroke = shortcut.secondStroke else {
-                return nil
-            }
-            return secondStroke.matches(event: event) ? true : nil
-        }
-
-        if shortcut.firstStroke.matches(event: event) {
-            pendingSaveShortcutChordPrefix = shortcut.firstStroke
-            return false
-        }
-        return nil
-    }
-}
-
 private struct FilePreviewPDFView: NSViewRepresentable {
     let panel: FilePreviewPanel
     let isVisibleInUI: Bool
diff --git a/Sources/Panels/FilePreviewTextEditor.swift b/Sources/Panels/FilePreviewTextEditor.swift
new file mode 100644
index 000000000000..dc3bef8c46d0
--- /dev/null
+++ b/Sources/Panels/FilePreviewTextEditor.swift
@@ -0,0 +1,200 @@
+import AppKit
+import SwiftUI
+
+struct FilePreviewTextEditor: NSViewRepresentable {
+    @ObservedObject var panel: FilePreviewPanel
+    let isVisibleInUI: Bool
+    let themeBackgroundColor: NSColor
+    let themeForegroundColor: NSColor
+
+    func makeCoordinator() -> Coordinator {
+        Coordinator(panel: panel)
+    }
+
+    func makeNSView(context: Context) -> NSScrollView {
+        let scrollView = NSScrollView()
+        scrollView.isHidden = !isVisibleInUI
+        scrollView.hasVerticalScroller = true
+        scrollView.hasHorizontalScroller = true
+        scrollView.autohidesScrollers = true
+        scrollView.borderType = .noBorder
+        scrollView.drawsBackground = true
+
+        let textView = SavingTextView()
+        textView.panel = panel
+        textView.delegate = context.coordinator
+        textView.isEditable = true
+        textView.isSelectable = true
+        textView.allowsUndo = true
+        textView.isRichText = false
+        textView.importsGraphics = false
+        textView.usesFindPanel = true
+        textView.usesFontPanel = false
+        textView.font = .monospacedSystemFont(ofSize: 13, weight: .regular)
+        textView.drawsBackground = true
+        textView.minSize = NSSize(width: 0, height: 0)
+        textView.maxSize = NSSize(width: CGFloat.greatestFiniteMagnitude, height: CGFloat.greatestFiniteMagnitude)
+        textView.isVerticallyResizable = true
+        textView.isHorizontallyResizable = true
+        textView.autoresizingMask = [.width]
+        textView.textContainer?.containerSize = NSSize(
+            width: CGFloat.greatestFiniteMagnitude,
+            height: CGFloat.greatestFiniteMagnitude
+        )
+        textView.textContainer?.widthTracksTextView = false
+        textView.applyFilePreviewTextEditorInsets()
+        textView.string = panel.textContent
+        panel.attachTextView(textView)
+
+        scrollView.documentView = textView
+        Self.applyTheme(to: scrollView, backgroundColor: themeBackgroundColor, foregroundColor: themeForegroundColor)
+        return scrollView
+    }
+
+    func updateNSView(_ scrollView: NSScrollView, context: Context) {
+        context.coordinator.panel = panel
+        scrollView.isHidden = !isVisibleInUI
+        Self.applyTheme(to: scrollView, backgroundColor: themeBackgroundColor, foregroundColor: themeForegroundColor)
+        guard let textView = scrollView.documentView as? SavingTextView else { return }
+        textView.panel = panel
+        textView.applyFilePreviewTextEditorInsets()
+        panel.attachTextView(textView)
+        guard textView.string != panel.textContent else { return }
+        context.coordinator.isApplyingPanelUpdate = true
+        textView.string = panel.textContent
+        context.coordinator.isApplyingPanelUpdate = false
+    }
+
+    private static func applyTheme(
+        to scrollView: NSScrollView,
+        backgroundColor: NSColor,
+        foregroundColor: NSColor
+    ) {
+        scrollView.backgroundColor = backgroundColor
+        scrollView.contentView.backgroundColor = backgroundColor
+        if let textView = scrollView.documentView as? NSTextView {
+            textView.backgroundColor = backgroundColor
+            textView.textColor = foregroundColor
+            textView.insertionPointColor = foregroundColor
+        }
+    }
+
+    final class Coordinator: NSObject, NSTextViewDelegate {
+        var panel: FilePreviewPanel
+        var isApplyingPanelUpdate = false
+
+        init(panel: FilePreviewPanel) {
+            self.panel = panel
+        }
+
+        func textDidChange(_ notification: Notification) {
+            guard !isApplyingPanelUpdate,
+                  let textView = notification.object as? NSTextView else { return }
+            panel.updateTextContent(textView.string)
+        }
+    }
+}
+
+enum FilePreviewTextEditorLayout {
+    static let textContainerInset = NSSize(width: 12, height: 10)
+    static let lineFragmentPadding: CGFloat = 0
+}
+
+extension NSTextView {
+    func applyFilePreviewTextEditorInsets() {
+        let targetInset = FilePreviewTextEditorLayout.textContainerInset
+        if textContainerInset.width != targetInset.width || textContainerInset.height != targetInset.height {
+            textContainerInset = targetInset
+        }
+        if textContainer?.lineFragmentPadding != FilePreviewTextEditorLayout.lineFragmentPadding {
+            textContainer?.lineFragmentPadding = FilePreviewTextEditorLayout.lineFragmentPadding
+        }
+    }
+}
+
+final class SavingTextView: NSTextView {
+    private static let defaultPreviewFontSize: CGFloat = 13
+    private static let minimumPreviewFontSize: CGFloat = 8
+    private static let maximumPreviewFontSize: CGFloat = 36
+
+    weak var panel: FilePreviewPanel?
+    private var previewFontSize: CGFloat = 13
+    private var pendingSaveShortcutChordPrefix: ShortcutStroke?
+
+    override func viewDidMoveToWindow() {
+        super.viewDidMoveToWindow()
+        applyFilePreviewTextEditorInsets()
+        panel?.retryPendingFocus()
+    }
+
+    override func performKeyEquivalent(with event: NSEvent) -> Bool {
+        guard event.type == .keyDown else {
+            return super.performKeyEquivalent(with: event)
+        }
+        guard let shouldSave = saveShortcutMatch(for: event) else {
+            return super.performKeyEquivalent(with: event)
+        }
+        if shouldSave {
+            panel?.saveTextContent()
+        }
+        return true
+    }
+
+    override func magnify(with event: NSEvent) {
+        let factor = 1.0 + event.magnification
+        guard factor.isFinite, factor > 0 else { return }
+        adjustPreviewFontSize(by: factor)
+    }
+
+    override func scrollWheel(with event: NSEvent) {
+        guard FilePreviewInteraction.hasZoomModifier(event) else {
+            super.scrollWheel(with: event)
+            return
+        }
+        adjustPreviewFontSize(by: FilePreviewInteraction.zoomFactor(forScroll: event))
+    }
+
+    override func smartMagnify(with event: NSEvent) {
+        if previewFontSize == Self.defaultPreviewFontSize {
+            setPreviewFontSize(18)
+        } else {
+            setPreviewFontSize(Self.defaultPreviewFontSize)
+        }
+    }
+
+    private func adjustPreviewFontSize(by factor: CGFloat) {
+        setPreviewFontSize(previewFontSize * factor)
+    }
+
+    private func setPreviewFontSize(_ nextFontSize: CGFloat) {
+        let clamped = min(max(nextFontSize, Self.minimumPreviewFontSize), Self.maximumPreviewFontSize)
+        guard clamped.isFinite else { return }
+        previewFontSize = clamped
+        let nextFont = NSFont.monospacedSystemFont(ofSize: clamped, weight: .regular)
+        font = nextFont
+        typingAttributes[.font] = nextFont
+    }
+
+    private func saveShortcutMatch(for event: NSEvent) -> Bool? {
+        let shortcut = KeyboardShortcutSettings.shortcut(for: .saveFilePreview)
+        guard shortcut.hasChord else {
+            pendingSaveShortcutChordPrefix = nil
+            return shortcut.matches(event: event) ? true : nil
+        }
+
+        if let pendingPrefix = pendingSaveShortcutChordPrefix {
+            pendingSaveShortcutChordPrefix = nil
+            guard pendingPrefix == shortcut.firstStroke,
+                  let secondStroke = shortcut.secondStroke else {
+                return nil
+            }
+            return secondStroke.matches(event: event) ? true : nil
+        }
+
+        if shortcut.firstStroke.matches(event: event) {
+            pendingSaveShortcutChordPrefix = shortcut.firstStroke
+            return false
+        }
+        return nil
+    }
+}
diff --git a/Sources/TerminalWindowPortal.swift b/Sources/TerminalWindowPortal.swift
index 9c8cdea247ab..c0ba5066e47e 100644
--- a/Sources/TerminalWindowPortal.swift
+++ b/Sources/TerminalWindowPortal.swift
@@ -1726,61 +1726,34 @@ final class WindowTerminalPortal: NSObject {
     }
 #endif
 
-    func viewAtWindowPoint(_ windowPoint: NSPoint) -> NSView? {
+    private func hostedScrollViewAtWindowPoint(_ windowPoint: NSPoint) -> (view: GhosttySurfaceScrollView, point: NSPoint)? {
         guard ensureInstalled() else { return nil }
         let point = hostView.convert(windowPoint, from: nil)
 
-        // Restrict hit-testing to currently mapped entries so stale detached views
-        // can't steal file-drop/mouse routing.
         for subview in hostView.subviews.reversed() {
-            guard let hostedView = subview as? GhosttySurfaceScrollView else { continue }
-            let hostedId = ObjectIdentifier(hostedView)
-            guard entriesByHostedId[hostedId] != nil else { continue }
-            guard !hostedView.isHidden else { continue }
-            guard hostedView.frame.contains(point) else { continue }
-            let localPoint = hostedView.convert(point, from: hostView)
-            return hostedView.hitTest(localPoint) ?? hostedView
+            guard let hostedView = subview as? GhosttySurfaceScrollView,
+                  entriesByHostedId[ObjectIdentifier(hostedView)] != nil,
+                  !hostedView.isHidden,
+                  hostedView.frame.contains(point) else { continue }
+            return (hostedView, hostedView.convert(point, from: hostView))
         }
 
         return nil
     }
 
-    func terminalViewAtWindowPoint(_ windowPoint: NSPoint) -> GhosttyNSView? {
-        guard ensureInstalled() else { return nil }
-        let point = hostView.convert(windowPoint, from: nil)
-
-        for subview in hostView.subviews.reversed() {
-            guard let hostedView = subview as? GhosttySurfaceScrollView else { continue }
-            let hostedId = ObjectIdentifier(hostedView)
-            guard entriesByHostedId[hostedId] != nil else { continue }
-            guard !hostedView.isHidden else { continue }
-            guard hostedView.frame.contains(point) else { continue }
-            let localPoint = hostedView.convert(point, from: hostView)
-            if let terminal = hostedView.terminalViewForDrop(at: localPoint) {
-                return terminal
-            }
-        }
+    func viewAtWindowPoint(_ windowPoint: NSPoint) -> NSView? {
+        guard let hit = hostedScrollViewAtWindowPoint(windowPoint) else { return nil }
+        return hit.view.hitTest(hit.point) ?? hit.view
+    }
 
-        return nil
+    func terminalViewAtWindowPoint(_ windowPoint: NSPoint) -> GhosttyNSView? {
+        guard let hit = hostedScrollViewAtWindowPoint(windowPoint) else { return nil }
+        return hit.view.terminalViewForDrop(at: hit.point)
     }
 
     func terminalPaneDropTargetAtWindowPoint(_ windowPoint: NSPoint) -> TerminalPaneDropTargetView? {
-        guard ensureInstalled() else { return nil }
-        let point = hostView.convert(windowPoint, from: nil)
-
-        for subview in hostView.subviews.reversed() {
-            guard let hostedView = subview as? GhosttySurfaceScrollView else { continue }
-            let hostedId = ObjectIdentifier(hostedView)
-            guard entriesByHostedId[hostedId] != nil else { continue }
-            guard !hostedView.isHidden else { continue }
-            guard hostedView.frame.contains(point) else { continue }
-            let localPoint = hostedView.convert(point, from: hostView)
-            if let target = hostedView.paneDropTargetForDrop(at: localPoint) {
-                return target
-            }
-        }
-
-        return nil
+        guard let hit = hostedScrollViewAtWindowPoint(windowPoint) else { return nil }
+        return hit.view.paneDropTargetForDrop(at: hit.point)
     }
 }
 
diff --git a/Sources/WorkspaceContentView.swift b/Sources/WorkspaceContentView.swift
index 574bfe2e7404..a6e33ac58352 100644
--- a/Sources/WorkspaceContentView.swift
+++ b/Sources/WorkspaceContentView.swift
@@ -200,7 +200,6 @@ struct WorkspaceContentView: View {
         // AppKit-backed views can still intercept drags. Disable drop acceptance for them.
         let _ = { workspace.bonsplitController.isInteractive = isWorkspaceInputActive }()
 
-
         // Wire up file drop handling so bonsplit's PaneDragContainerView can forward
         // Finder file drops to the correct terminal panel.
         let _ = {
diff --git a/cmuxTests/FileDropOverlayViewTests.swift b/cmuxTests/FileDropOverlayViewTests.swift
new file mode 100644
index 000000000000..ac1679018802
--- /dev/null
+++ b/cmuxTests/FileDropOverlayViewTests.swift
@@ -0,0 +1,256 @@
+import AppKit
+import ObjectiveC.runtime
+import SwiftUI
+import WebKit
+import XCTest
+
+#if canImport(cmux_DEV)
+@testable import cmux_DEV
+#elseif canImport(cmux)
+@testable import cmux
+#endif
+
+@MainActor
+final class FileDropOverlayViewTests: XCTestCase {
+    private func makeContentViewWindow(windowId: UUID = UUID()) -> NSWindow {
+        _ = NSApplication.shared
+
+        let root = ContentView(updateViewModel: UpdateViewModel(), windowId: windowId)
+            .environmentObject(TabManager())
+            .environmentObject(TerminalNotificationStore.shared)
+            .environmentObject(SidebarState())
+            .environmentObject(SidebarSelectionState())
+            .environmentObject(FileExplorerState())
+            .environmentObject(CmuxConfigStore())
+
+        let window = NSWindow(
+            contentRect: NSRect(x: 0, y: 0, width: 520, height: 340),
+            styleMask: [.titled, .closable, .resizable],
+            backing: .buffered,
+            defer: false
+        )
+        window.contentView = MainWindowHostingView(rootView: root)
+        return window
+    }
+
+    private func fileDropOverlays(in root: NSView?) -> [FileDropOverlayView] {
+        guard let root else { return [] }
+
+        var overlays: [FileDropOverlayView] = []
+        if let overlay = root as? FileDropOverlayView {
+            overlays.append(overlay)
+        }
+        for subview in root.subviews {
+            overlays.append(contentsOf: fileDropOverlays(in: subview))
+        }
+        return overlays
+    }
+
+    private final class DragSpyWebView: WKWebView {
+        var dragCalls: [String] = []
+
+        override func draggingEntered(_ sender: any NSDraggingInfo) -> NSDragOperation {
+            dragCalls.append("entered")
+            return .copy
+        }
+
+        override func prepareForDragOperation(_ sender: any NSDraggingInfo) -> Bool {
+            dragCalls.append("prepare")
+            return true
+        }
+
+        override func performDragOperation(_ sender: any NSDraggingInfo) -> Bool {
+            dragCalls.append("perform")
+            return true
+        }
+
+        override func concludeDragOperation(_ sender: (any NSDraggingInfo)?) {
+            dragCalls.append("conclude")
+        }
+    }
+
+    private final class MockDraggingInfo: NSObject, NSDraggingInfo {
+        let draggingDestinationWindow: NSWindow?
+        let draggingSourceOperationMask: NSDragOperation
+        let draggingLocation: NSPoint
+        let draggedImageLocation: NSPoint
+        let draggedImage: NSImage?
+        nonisolated(unsafe) let draggingPasteboard: NSPasteboard
+        nonisolated(unsafe) let draggingSource: Any?
+        let draggingSequenceNumber: Int
+        var draggingFormation: NSDraggingFormation = .default
+        var animatesToDestination = false
+        var numberOfValidItemsForDrop = 1
+        let springLoadingHighlight: NSSpringLoadingHighlight = .none
+
+        init(
+            window: NSWindow,
+            location: NSPoint,
+            pasteboard: NSPasteboard,
+            sourceOperationMask: NSDragOperation = .copy,
+            draggingSource: Any? = nil,
+            sequenceNumber: Int = 1
+        ) {
+            self.draggingDestinationWindow = window
+            self.draggingSourceOperationMask = sourceOperationMask
+            self.draggingLocation = location
+            self.draggedImageLocation = location
+            self.draggedImage = nil
+            self.draggingPasteboard = pasteboard
+            self.draggingSource = draggingSource
+            self.draggingSequenceNumber = sequenceNumber
+        }
+
+        func slideDraggedImage(to screenPoint: NSPoint) {}
+
+        override func namesOfPromisedFilesDropped(atDestination dropDestination: URL) -> [String]? {
+            nil
+        }
+
+        func enumerateDraggingItems(
+            options enumOpts: NSDraggingItemEnumerationOptions = [],
+            for view: NSView?,
+            classes classArray: [AnyClass],
+            searchOptions: [NSPasteboard.ReadingOptionKey: Any] = [:],
+            using block: (NSDraggingItem, Int, UnsafeMutablePointer<ObjCBool>) -> Void
+        ) {}
+
+        func resetSpringLoading() {}
+    }
+
+    private func realizeWindowLayout(_ window: NSWindow) {
+        window.makeKeyAndOrderFront(nil)
+        window.displayIfNeeded()
+        window.contentView?.layoutSubtreeIfNeeded()
+        RunLoop.current.run(until: Date().addingTimeInterval(0.05))
+        window.contentView?.layoutSubtreeIfNeeded()
+    }
+
+    func testContentViewInstallsSingleFileDropOverlayAcrossRepeatedLayouts() {
+        let window = makeContentViewWindow()
+        defer {
+            NotificationCenter.default.post(name: NSWindow.willCloseNotification, object: window)
+            window.orderOut(nil)
+        }
+
+        realizeWindowLayout(window)
+        realizeWindowLayout(window)
+        realizeWindowLayout(window)
+
+        guard let themeFrame = window.contentView?.superview else {
+            XCTFail("Expected theme frame")
+            return
+        }
+
+        let overlays = fileDropOverlays(in: themeFrame)
+        XCTAssertEqual(
+            overlays.count,
+            1,
+            "ContentView should install exactly one FileDropOverlayView even after repeated layout passes"
+        )
+        XCTAssertTrue(
+            (objc_getAssociatedObject(window, &fileDropOverlayKey) as? FileDropOverlayView) === overlays.first,
+            "The window-associated file-drop overlay should match the single installed view"
+        )
+    }
+
+    func testOverlayResolvesPortalHostedBrowserWebViewForFileDrops() {
+        let window = NSWindow(
+            contentRect: NSRect(x: 0, y: 0, width: 420, height: 280),
+            styleMask: [.titled, .closable],
+            backing: .buffered,
+            defer: false
+        )
+        defer {
+            NotificationCenter.default.post(name: NSWindow.willCloseNotification, object: window)
+            window.orderOut(nil)
+        }
+        realizeWindowLayout(window)
+
+        guard let contentView = window.contentView,
+              let container = contentView.superview else {
+            XCTFail("Expected content container")
+            return
+        }
+
+        let anchor = NSView(frame: NSRect(x: 40, y: 36, width: 220, height: 150))
+        contentView.addSubview(anchor)
+
+        let webView = CmuxWebView(frame: .zero, configuration: WKWebViewConfiguration())
+        BrowserWindowPortalRegistry.bind(webView: webView, to: anchor, visibleInUI: true)
+        BrowserWindowPortalRegistry.synchronizeForAnchor(anchor)
+
+        let overlay = FileDropOverlayView(frame: container.bounds)
+        overlay.autoresizingMask = [.width, .height]
+        container.addSubview(overlay, positioned: .above, relativeTo: nil)
+
+        let point = anchor.convert(
+            NSPoint(x: anchor.bounds.midX, y: anchor.bounds.midY),
+            to: nil
+        )
+        XCTAssertTrue(
+            overlay.webViewUnderPoint(point) === webView,
+            "File-drop overlay should resolve portal-hosted browser panes so Finder uploads still reach WKWebView"
+        )
+    }
+
+    func testOverlayDelegatesBrowserFileDragLifecycleToPortalHostedWebView() {
+        let window = NSWindow(
+            contentRect: NSRect(x: 0, y: 0, width: 420, height: 280),
+            styleMask: [.titled, .closable],
+            backing: .buffered,
+            defer: false
+        )
+        defer {
+            NotificationCenter.default.post(name: NSWindow.willCloseNotification, object: window)
+            window.orderOut(nil)
+        }
+        realizeWindowLayout(window)
+
+        guard let contentView = window.contentView,
+              let container = contentView.superview else {
+            XCTFail("Expected content container")
+            return
+        }
+
+        let anchor = NSView(frame: NSRect(x: 52, y: 44, width: 210, height: 140))
+        contentView.addSubview(anchor)
+
+        let webView = DragSpyWebView(frame: .zero, configuration: WKWebViewConfiguration())
+        BrowserWindowPortalRegistry.bind(webView: webView, to: anchor, visibleInUI: true)
+        BrowserWindowPortalRegistry.synchronizeForAnchor(anchor)
+        defer { BrowserWindowPortalRegistry.detach(webView: webView) }
+
+        let overlay = FileDropOverlayView(frame: container.bounds)
+        overlay.autoresizingMask = [.width, .height]
+        container.addSubview(overlay, positioned: .above, relativeTo: nil)
+
+        let pasteboard = NSPasteboard(name: NSPasteboard.Name("cmux.test.drag.\(UUID().uuidString)"))
+        pasteboard.clearContents()
+        XCTAssertTrue(
+            pasteboard.writeObjects([URL(fileURLWithPath: "/tmp/upload.mov") as NSURL]),
+            "Expected file URL drag payload"
+        )
+
+        let dropPoint = anchor.convert(
+            NSPoint(x: anchor.bounds.midX, y: anchor.bounds.midY),
+            to: nil
+        )
+        let dragInfo = MockDraggingInfo(
+            window: window,
+            location: dropPoint,
+            pasteboard: pasteboard
+        )
+
+        XCTAssertEqual(overlay.draggingEntered(dragInfo), .copy)
+        XCTAssertTrue(overlay.prepareForDragOperation(dragInfo))
+        XCTAssertTrue(overlay.performDragOperation(dragInfo))
+        overlay.concludeDragOperation(dragInfo)
+
+        XCTAssertEqual(
+            webView.dragCalls,
+            ["entered", "prepare", "perform", "conclude"],
+            "Finder file drops over browser panes should still reach the portal-hosted WKWebView"
+        )
+    }
+}
diff --git a/cmuxTests/WindowAndDragTests.swift b/cmuxTests/WindowAndDragTests.swift
index 35c2cc9ae659..9063197cee94 100644
--- a/cmuxTests/WindowAndDragTests.swift
+++ b/cmuxTests/WindowAndDragTests.swift
@@ -2337,253 +2337,6 @@ final class BonsplitTabDragPayloadTests: XCTestCase {
     }
 }
 
-
-@MainActor
-final class FileDropOverlayViewTests: XCTestCase {
-    private func makeContentViewWindow(windowId: UUID = UUID()) -> NSWindow {
-        _ = NSApplication.shared
-
-        let root = ContentView(updateViewModel: UpdateViewModel(), windowId: windowId)
-            .environmentObject(TabManager())
-            .environmentObject(TerminalNotificationStore.shared)
-            .environmentObject(SidebarState())
-            .environmentObject(SidebarSelectionState())
-            .environmentObject(FileExplorerState())
-            .environmentObject(CmuxConfigStore())
-
-        let window = NSWindow(
-            contentRect: NSRect(x: 0, y: 0, width: 520, height: 340),
-            styleMask: [.titled, .closable, .resizable],
-            backing: .buffered,
-            defer: false
-        )
-        window.contentView = MainWindowHostingView(rootView: root)
-        return window
-    }
-
-    private func fileDropOverlays(in root: NSView?) -> [FileDropOverlayView] {
-        guard let root else { return [] }
-
-        var overlays: [FileDropOverlayView] = []
-        if let overlay = root as? FileDropOverlayView {
-            overlays.append(overlay)
-        }
-        for subview in root.subviews {
-            overlays.append(contentsOf: fileDropOverlays(in: subview))
-        }
-        return overlays
-    }
-
-    private final class DragSpyWebView: WKWebView {
-        var dragCalls: [String] = []
-
-        override func draggingEntered(_ sender: any NSDraggingInfo) -> NSDragOperation {
-            dragCalls.append("entered")
-            return .copy
-        }
-
-        override func prepareForDragOperation(_ sender: any NSDraggingInfo) -> Bool {
-            dragCalls.append("prepare")
-            return true
-        }
-
-        override func performDragOperation(_ sender: any NSDraggingInfo) -> Bool {
-            dragCalls.append("perform")
-            return true
-        }
-
-        override func concludeDragOperation(_ sender: (any NSDraggingInfo)?) {
-            dragCalls.append("conclude")
-        }
-    }
-
-    private final class MockDraggingInfo: NSObject, NSDraggingInfo {
-        let draggingDestinationWindow: NSWindow?
-        let draggingSourceOperationMask: NSDragOperation
-        let draggingLocation: NSPoint
-        let draggedImageLocation: NSPoint
-        let draggedImage: NSImage?
-        nonisolated(unsafe) let draggingPasteboard: NSPasteboard
-        nonisolated(unsafe) let draggingSource: Any?
-        let draggingSequenceNumber: Int
-        var draggingFormation: NSDraggingFormation = .default
-        var animatesToDestination = false
-        var numberOfValidItemsForDrop = 1
-        let springLoadingHighlight: NSSpringLoadingHighlight = .none
-
-        init(
-            window: NSWindow,
-            location: NSPoint,
-            pasteboard: NSPasteboard,
-            sourceOperationMask: NSDragOperation = .copy,
-            draggingSource: Any? = nil,
-            sequenceNumber: Int = 1
-        ) {
-            self.draggingDestinationWindow = window
-            self.draggingSourceOperationMask = sourceOperationMask
-            self.draggingLocation = location
-            self.draggedImageLocation = location
-            self.draggedImage = nil
-            self.draggingPasteboard = pasteboard
-            self.draggingSource = draggingSource
-            self.draggingSequenceNumber = sequenceNumber
-        }
-
-        func slideDraggedImage(to screenPoint: NSPoint) {}
-
-        override func namesOfPromisedFilesDropped(atDestination dropDestination: URL) -> [String]? {
-            nil
-        }
-
-        func enumerateDraggingItems(
-            options enumOpts: NSDraggingItemEnumerationOptions = [],
-            for view: NSView?,
-            classes classArray: [AnyClass],
-            searchOptions: [NSPasteboard.ReadingOptionKey: Any] = [:],
-            using block: (NSDraggingItem, Int, UnsafeMutablePointer<ObjCBool>) -> Void
-        ) {}
-
-        func resetSpringLoading() {}
-    }
-
-    private func realizeWindowLayout(_ window: NSWindow) {
-        window.makeKeyAndOrderFront(nil)
-        window.displayIfNeeded()
-        window.contentView?.layoutSubtreeIfNeeded()
-        RunLoop.current.run(until: Date().addingTimeInterval(0.05))
-        window.contentView?.layoutSubtreeIfNeeded()
-    }
-
-    func testContentViewInstallsSingleFileDropOverlayAcrossRepeatedLayouts() {
-        let window = makeContentViewWindow()
-        defer {
-            NotificationCenter.default.post(name: NSWindow.willCloseNotification, object: window)
-            window.orderOut(nil)
-        }
-
-        realizeWindowLayout(window)
-        realizeWindowLayout(window)
-        realizeWindowLayout(window)
-
-        guard let themeFrame = window.contentView?.superview else {
-            XCTFail("Expected theme frame")
-            return
-        }
-
-        let overlays = fileDropOverlays(in: themeFrame)
-        XCTAssertEqual(
-            overlays.count,
-            1,
-            "ContentView should install exactly one FileDropOverlayView even after repeated layout passes"
-        )
-        XCTAssertTrue(
-            (objc_getAssociatedObject(window, &fileDropOverlayKey) as? FileDropOverlayView) === overlays.first,
-            "The window-associated file-drop overlay should match the single installed view"
-        )
-    }
-
-    func testOverlayResolvesPortalHostedBrowserWebViewForFileDrops() {
-        let window = NSWindow(
-            contentRect: NSRect(x: 0, y: 0, width: 420, height: 280),
-            styleMask: [.titled, .closable],
-            backing: .buffered,
-            defer: false
-        )
-        defer {
-            NotificationCenter.default.post(name: NSWindow.willCloseNotification, object: window)
-            window.orderOut(nil)
-        }
-        realizeWindowLayout(window)
-
-        guard let contentView = window.contentView,
-              let container = contentView.superview else {
-            XCTFail("Expected content container")
-            return
-        }
-
-        let anchor = NSView(frame: NSRect(x: 40, y: 36, width: 220, height: 150))
-        contentView.addSubview(anchor)
-
-        let webView = CmuxWebView(frame: .zero, configuration: WKWebViewConfiguration())
-        BrowserWindowPortalRegistry.bind(webView: webView, to: anchor, visibleInUI: true)
-        BrowserWindowPortalRegistry.synchronizeForAnchor(anchor)
-
-        let overlay = FileDropOverlayView(frame: container.bounds)
-        overlay.autoresizingMask = [.width, .height]
-        container.addSubview(overlay, positioned: .above, relativeTo: nil)
-
-        let point = anchor.convert(
-            NSPoint(x: anchor.bounds.midX, y: anchor.bounds.midY),
-            to: nil
-        )
-        XCTAssertTrue(
-            overlay.webViewUnderPoint(point) === webView,
-            "File-drop overlay should resolve portal-hosted browser panes so Finder uploads still reach WKWebView"
-        )
-    }
-
-    func testOverlayDelegatesBrowserFileDragLifecycleToPortalHostedWebView() {
-        let window = NSWindow(
-            contentRect: NSRect(x: 0, y: 0, width: 420, height: 280),
-            styleMask: [.titled, .closable],
-            backing: .buffered,
-            defer: false
-        )
-        defer {
-            NotificationCenter.default.post(name: NSWindow.willCloseNotification, object: window)
-            window.orderOut(nil)
-        }
-        realizeWindowLayout(window)
-
-        guard let contentView = window.contentView,
-              let container = contentView.superview else {
-            XCTFail("Expected content container")
-            return
-        }
-
-        let anchor = NSView(frame: NSRect(x: 52, y: 44, width: 210, height: 140))
-        contentView.addSubview(anchor)
-
-        let webView = DragSpyWebView(frame: .zero, configuration: WKWebViewConfiguration())
-        BrowserWindowPortalRegistry.bind(webView: webView, to: anchor, visibleInUI: true)
-        BrowserWindowPortalRegistry.synchronizeForAnchor(anchor)
-        defer { BrowserWindowPortalRegistry.detach(webView: webView) }
-
-        let overlay = FileDropOverlayView(frame: container.bounds)
-        overlay.autoresizingMask = [.width, .height]
-        container.addSubview(overlay, positioned: .above, relativeTo: nil)
-
-        let pasteboard = NSPasteboard(name: NSPasteboard.Name("cmux.test.drag.\(UUID().uuidString)"))
-        pasteboard.clearContents()
-        XCTAssertTrue(
-            pasteboard.writeObjects([URL(fileURLWithPath: "/tmp/upload.mov") as NSURL]),
-            "Expected file URL drag payload"
-        )
-
-        let dropPoint = anchor.convert(
-            NSPoint(x: anchor.bounds.midX, y: anchor.bounds.midY),
-            to: nil
-        )
-        let dragInfo = MockDraggingInfo(
-            window: window,
-            location: dropPoint,
-            pasteboard: pasteboard
-        )
-
-        XCTAssertEqual(overlay.draggingEntered(dragInfo), .copy)
-        XCTAssertTrue(overlay.prepareForDragOperation(dragInfo))
-        XCTAssertTrue(overlay.performDragOperation(dragInfo))
-        overlay.concludeDragOperation(dragInfo)
-
-        XCTAssertEqual(
-            webView.dragCalls,
-            ["entered", "prepare", "perform", "conclude"],
-            "Finder file drops over browser panes should still reach the portal-hosted WKWebView"
-        )
-    }
-}
-
-
 @MainActor
 final class MarkdownPanelPointerObserverViewTests: XCTestCase {
     private func makeWindow() -> NSWindow {

From 2918c828ef8ac2e73f4a97a914bb5e85e0c4fcd1 Mon Sep 17 00:00:00 2001
From: Lawrence Chen <lawrencecchen@users.noreply.github.com>
Date: Tue, 5 May 2026 17:40:57 -0700
Subject: [PATCH 3/4] Address file drop review feedback

---
 Sources/ContentView.swift                     | 16 ++++++++++------
 Sources/Panels/FilePreviewTextEditor.swift    |  4 ++++
 Sources/Panels/PanelContentView.swift         |  1 +
 cmuxTests/FileDropOverlayViewTests.swift      |  1 +
 cmuxTests/FinderFileDropRegressionTests.swift | 14 +++++++-------
 5 files changed, 23 insertions(+), 13 deletions(-)

diff --git a/Sources/ContentView.swift b/Sources/ContentView.swift
index 43c1de072e9e..f8776cec406b 100644
--- a/Sources/ContentView.swift
+++ b/Sources/ContentView.swift
@@ -242,8 +242,9 @@ final class FileDropOverlayView: NSView {
         }
         preparedDragWebView = nil
         if let paneDropTarget {
-            preparedPaneDropTarget = paneDropTarget
-            return true
+            let accepted = paneDropTarget.prepareForDragOperation(sender)
+            preparedPaneDropTarget = accepted ? paneDropTarget : nil
+            return accepted
         }
         preparedPaneDropTarget = nil
         return hasPaneTarget
@@ -284,9 +285,12 @@ final class FileDropOverlayView: NSView {
         }
         preparedDragWebView = nil
         if let paneDropTarget {
-            preparedPaneDropTarget = nil
-            activePaneDropTarget = nil
-            return paneDropTarget.performDragOperation(sender)
+            let handled = paneDropTarget.performDragOperation(sender)
+            if !handled {
+                preparedPaneDropTarget = nil
+                activePaneDropTarget = nil
+            }
+            return handled
         }
         preparedPaneDropTarget = nil
         activeDragWebView = nil
@@ -311,7 +315,7 @@ final class FileDropOverlayView: NSView {
         let webView = preparedDragWebView ?? activeDragWebView ?? webViewUnderPoint(sender.draggingLocation)
         webView?.concludeDragOperation(sender)
         if let paneDropTarget = preparedPaneDropTarget ?? activePaneDropTarget {
-            paneDropTarget.draggingExited(sender)
+            paneDropTarget.concludeDragOperation(sender)
         }
     }
 
diff --git a/Sources/Panels/FilePreviewTextEditor.swift b/Sources/Panels/FilePreviewTextEditor.swift
index dc3bef8c46d0..ef198b413a93 100644
--- a/Sources/Panels/FilePreviewTextEditor.swift
+++ b/Sources/Panels/FilePreviewTextEditor.swift
@@ -87,6 +87,8 @@ struct FilePreviewTextEditor: NSViewRepresentable {
             self.panel = panel
         }
 
+        deinit {}
+
         func textDidChange(_ notification: Notification) {
             guard !isApplyingPanelUpdate,
                   let textView = notification.object as? NSTextView else { return }
@@ -121,6 +123,8 @@ final class SavingTextView: NSTextView {
     private var previewFontSize: CGFloat = 13
     private var pendingSaveShortcutChordPrefix: ShortcutStroke?
 
+    deinit {}
+
     override func viewDidMoveToWindow() {
         super.viewDidMoveToWindow()
         applyFilePreviewTextEditorInsets()
diff --git a/Sources/Panels/PanelContentView.swift b/Sources/Panels/PanelContentView.swift
index 648179c1b0f0..92c558d32556 100644
--- a/Sources/Panels/PanelContentView.swift
+++ b/Sources/Panels/PanelContentView.swift
@@ -90,6 +90,7 @@ struct PanelContentView: View {
     }
 
     private var shouldInstallPaneDropTarget: Bool {
+        guard isVisibleInUI else { return false }
         switch panel.panelType {
         case .markdown, .filePreview:
             return true
diff --git a/cmuxTests/FileDropOverlayViewTests.swift b/cmuxTests/FileDropOverlayViewTests.swift
index ac1679018802..168749eea0c1 100644
--- a/cmuxTests/FileDropOverlayViewTests.swift
+++ b/cmuxTests/FileDropOverlayViewTests.swift
@@ -179,6 +179,7 @@ final class FileDropOverlayViewTests: XCTestCase {
         let webView = CmuxWebView(frame: .zero, configuration: WKWebViewConfiguration())
         BrowserWindowPortalRegistry.bind(webView: webView, to: anchor, visibleInUI: true)
         BrowserWindowPortalRegistry.synchronizeForAnchor(anchor)
+        defer { BrowserWindowPortalRegistry.detach(webView: webView) }
 
         let overlay = FileDropOverlayView(frame: container.bounds)
         overlay.autoresizingMask = [.width, .height]
diff --git a/cmuxTests/FinderFileDropRegressionTests.swift b/cmuxTests/FinderFileDropRegressionTests.swift
index f6f4839c5087..c903fb210fdf 100644
--- a/cmuxTests/FinderFileDropRegressionTests.swift
+++ b/cmuxTests/FinderFileDropRegressionTests.swift
@@ -20,7 +20,7 @@ final class FinderFileDropRegressionTests: XCTestCase {
         return try XCTUnwrap(bitmap.representation(using: .png, properties: [:]))
     }
 
-    func testOverlayCapturesExternalFileDropsButNotInternalPreviewDrags() {
+    func testOverlayCapturesFileURLDropsIncludingLocalPaneDrags() {
         XCTAssertTrue(
             DragOverlayRoutingPolicy.shouldCaptureFileDropDestination(
                 pasteboardTypes: [.fileURL],
@@ -35,26 +35,26 @@ final class FinderFileDropRegressionTests: XCTestCase {
             )
         )
 
-        XCTAssertFalse(
+        XCTAssertTrue(
             DragOverlayRoutingPolicy.shouldCaptureFileDropDestination(
                 pasteboardTypes: [.fileURL, DragOverlayRoutingPolicy.filePreviewTransferType],
                 hasLocalDraggingSource: true
             ),
-            "Internal file-preview drags carry a dedicated cmux transfer type and should stay on pane/file-preview routing"
+            "Internal file-preview drags still need the shared pane drop destination so they can split or insert like Finder files"
         )
-        XCTAssertFalse(
+        XCTAssertTrue(
             DragOverlayRoutingPolicy.shouldCaptureFileDropDestination(
                 pasteboardTypes: [.fileURL, DragOverlayRoutingPolicy.bonsplitTabTransferType],
                 hasLocalDraggingSource: true
             ),
-            "Bonsplit tab drags can also advertise file URLs and must not be hijacked by the file-drop overlay"
+            "Bonsplit tab drags use the same pane drop destination while tab-bar hit testing still defers to Bonsplit"
         )
-        XCTAssertFalse(
+        XCTAssertTrue(
             DragOverlayRoutingPolicy.shouldCaptureFileDropDestination(
                 pasteboardTypes: [.fileURL],
                 hasLocalDraggingSource: true
             ),
-            "Unknown local file drags should stay off the root overlay unless they are proven external"
+            "File explorer drags are local file drags and must still reach the shared pane drop destination"
         )
     }
 

From a725315b79e1c8cf630295cd3c4b49dee13f1747 Mon Sep 17 00:00:00 2001
From: Lawrence Chen <lawrencecchen@users.noreply.github.com>
Date: Tue, 5 May 2026 17:59:35 -0700
Subject: [PATCH 4/4] Clear stale pane drop state

---
 Sources/ContentView.swift | 4 ++++
 1 file changed, 4 insertions(+)

diff --git a/Sources/ContentView.swift b/Sources/ContentView.swift
index f8776cec406b..f698c533aec4 100644
--- a/Sources/ContentView.swift
+++ b/Sources/ContentView.swift
@@ -234,6 +234,8 @@ final class FileDropOverlayView: NSView {
 #endif
         guard shouldCapture else {
             preparedDragWebView = nil
+            preparedPaneDropTarget = nil
+            activePaneDropTarget = nil
             return false
         }
         if let webView {
@@ -277,6 +279,8 @@ final class FileDropOverlayView: NSView {
         guard shouldCapture else {
             preparedDragWebView = nil
             activeDragWebView = nil
+            preparedPaneDropTarget = nil
+            activePaneDropTarget = nil
             return false
         }
         if let webView {