diff --git a/src/xfdesktop-icon-view.c b/src/xfdesktop-icon-view.c
index 66236613..5340a441 100644
--- a/src/xfdesktop-icon-view.c
+++ b/src/xfdesktop-icon-view.c
@@ -238,6 +238,9 @@ static gboolean xfdesktop_icon_view_drag_motion(GtkWidget *widget,
                                                 gint x,
                                                 gint y,
                                                 guint time_);
+static void xfdesktop_icon_view_drag_leave(GtkWidget *widget,
+                                           GdkDragContext *context,
+                                           guint time_);
 static gboolean xfdesktop_icon_view_drag_drop(GtkWidget *widget,
                                               GdkDragContext *context,
                                               gint x,
@@ -414,6 +417,7 @@ xfdesktop_icon_view_class_init(XfdesktopIconViewClass *klass)
     widget_class->draw = xfdesktop_icon_view_draw;
     widget_class->drag_begin = xfdesktop_icon_view_drag_begin;
     widget_class->drag_motion = xfdesktop_icon_view_drag_motion;
+    widget_class->drag_leave = xfdesktop_icon_view_drag_leave;
     widget_class->drag_drop = xfdesktop_icon_view_drag_drop;
     widget_class->drag_data_get = xfdesktop_icon_view_drag_data_get;
     widget_class->drag_data_received = xfdesktop_icon_view_drag_data_received;
@@ -1426,6 +1430,97 @@ xfdesktop_xy_to_rowcol(XfdesktopIconView *icon_view,
     *col = (x - icon_view->priv->xorigin - icon_view->priv->xmargin) / (CELL_SIZE + icon_view->priv->xspacing);
 }
 
+static inline void
+xfdesktop_icon_view_clear_drag_highlight(XfdesktopIconView *icon_view,
+                                         GdkDragContext *context)
+{
+    cairo_rectangle_int_t *cell_highlight;
+
+    cell_highlight = g_object_get_qdata(G_OBJECT(context),
+                                        xfdesktop_cell_highlight_quark);
+    if(!cell_highlight)
+        return;
+
+    if(0 == cell_highlight->width || 0 == cell_highlight->height)
+        return;
+
+    /* remove highlight from icon */
+    if(icon_view->priv->item_under_pointer)
+        icon_view->priv->item_under_pointer = NULL;
+
+    gtk_widget_queue_draw_area(GTK_WIDGET(icon_view),
+                               cell_highlight->x,
+                               cell_highlight->y,
+                               cell_highlight->width,
+                               cell_highlight->height);
+
+    cell_highlight->width = cell_highlight->height = 0;
+}
+
+static inline void
+xfdesktop_icon_view_draw_drag_highlight(XfdesktopIconView *icon_view,
+                                        GdkDragContext *context,
+                                        guint16 row,
+                                        guint16 col)
+{
+    GtkWidget *widget = GTK_WIDGET(icon_view);
+    GdkWindow *window;
+    XfdesktopIcon *icon;
+    gint newx, newy;
+    cairo_rectangle_int_t *cell_highlight;
+    cairo_region_t *region;
+    cairo_t *cr;
+    GdkDrawingContext *gdc;
+    GtkStyleContext *style;
+
+    window = gtk_widget_get_window(widget);
+    icon = xfdesktop_icon_view_icon_in_cell(icon_view, row, col);
+
+    newx = icon_view->priv->xorigin + icon_view->priv->xmargin + col * CELL_SIZE + col * icon_view->priv->xspacing;
+    newy = icon_view->priv->yorigin + icon_view->priv->ymargin + row * CELL_SIZE + row * icon_view->priv->yspacing;
+
+    cell_highlight = g_object_get_qdata(G_OBJECT(context),
+                                        xfdesktop_cell_highlight_quark);
+
+    if(cell_highlight) {
+        if(newx != cell_highlight->x || newy != cell_highlight->y)
+            xfdesktop_icon_view_clear_drag_highlight(icon_view, context);
+    } else {
+        cell_highlight = g_new0(cairo_rectangle_int_t, 1);
+        g_object_set_qdata_full(G_OBJECT(context),
+                                xfdesktop_cell_highlight_quark,
+                                cell_highlight, (GDestroyNotify)g_free);
+    }
+
+    cell_highlight->x = newx;
+    cell_highlight->y = newy;
+    cell_highlight->width = cell_highlight->height = CELL_SIZE;
+
+    region = cairo_region_create_rectangle(cell_highlight);
+    gdc = gdk_window_begin_draw_frame(window, region);
+    cr = gdk_drawing_context_get_cairo_context(gdc);
+
+    style = gtk_widget_get_style_context(widget);
+    gtk_style_context_save(style);
+    gtk_style_context_add_class(style, GTK_STYLE_CLASS_RUBBERBAND);
+
+    gtk_render_frame(style, cr, newx, newy, CELL_SIZE, CELL_SIZE);
+
+    gtk_style_context_remove_class(style, GTK_STYLE_CLASS_RUBBERBAND);
+    gtk_style_context_restore(style);
+
+    if(icon != NULL) {
+        /* highlight icon */
+        icon_view->priv->item_under_pointer = icon;
+
+        xfdesktop_icon_view_paint_icon(icon_view, icon, cell_highlight, cr);
+    }
+
+    gdk_window_end_draw_frame(window, gdc);
+
+    cairo_region_destroy(region);
+}
+
 static gboolean
 xfdesktop_icon_view_drag_motion(GtkWidget *widget,
                                 GdkDragContext *context,
@@ -1490,6 +1585,7 @@ xfdesktop_icon_view_drag_motion(GtkWidget *widget,
                 if(xfdesktop_icon_get_position(sel_icon, &sel_row, &sel_col)
                    && sel_row == hover_row && sel_col == hover_col)
                 {
+                    xfdesktop_icon_view_clear_drag_highlight(icon_view, context);
                     return FALSE;
                 }
             }
@@ -1547,6 +1643,15 @@ xfdesktop_icon_view_drag_motion(GtkWidget *widget,
     return TRUE;
 }
 
+static void
+xfdesktop_icon_view_drag_leave(GtkWidget *widget,
+                               GdkDragContext *context,
+                               guint time_)
+{
+    xfdesktop_icon_view_clear_drag_highlight(XFDESKTOP_ICON_VIEW(widget),
+                                             context);
+}
+
 static void
 xfdesktop_next_slot(XfdesktopIconView *icon_view,
                     gint16 *col,
@@ -1784,6 +1889,13 @@ xfdesktop_icon_view_drag_data_received(GtkWidget *widget,
                                                                      info);
         }
 
+        if(action == 0)
+            xfdesktop_icon_view_clear_drag_highlight(icon_view, context);
+        else
+            xfdesktop_icon_view_draw_drag_highlight(icon_view, context,
+                                                    icon_view->priv->hover_row,
+                                                    icon_view->priv->hover_col);
+
         gdk_drag_status(context, action, time_);
     }
 }