Index: src/kitemviews/kfileitemmodel.h
===================================================================
--- src/kitemviews/kfileitemmodel.h
+++ src/kitemviews/kfileitemmodel.h
@@ -73,7 +73,7 @@
      *         the root-parent of all items.
      * @see rootItem()
      */
-    QUrl directory() const;
+    QUrl directory() const Q_DECL_OVERRIDE;
 
     /**
      * Cancels the loading of a directory which has been started by either
@@ -145,6 +145,8 @@
      */
     KFileItem rootItem() const;
 
+    QUrl indexGetUrl(int index) const Q_DECL_OVERRIDE;
+
     /**
      * Clears all items of the model.
      */
Index: src/kitemviews/kfileitemmodel.cpp
===================================================================
--- src/kitemviews/kfileitemmodel.cpp
+++ src/kitemviews/kfileitemmodel.cpp
@@ -2413,3 +2413,8 @@
 
     return true;
 }
+
+QUrl KFileItemModel::indexGetUrl(int index) const
+{
+    return fileItem(index).url();
+}
Index: src/kitemviews/kitemlistcontroller.h
===================================================================
--- src/kitemviews/kitemlistcontroller.h
+++ src/kitemviews/kitemlistcontroller.h
@@ -256,6 +256,13 @@
      */
     void startDragging();
 
+    /**
+     * @return True, if destUrl is contained in the url list.
+     */
+    bool urlListMatchesUrl(const QList<QUrl>& urls, const QUrl& destUrl);
+
+    bool shouldAcceptDrop(const QList<QUrl>& urls, const QUrl& destUrl);
+
     /**
      * @return Widget that is currently in the hovered state. 0 is returned
      *         if no widget is marked as hovered.
Index: src/kitemviews/kitemlistcontroller.cpp
===================================================================
--- src/kitemviews/kitemlistcontroller.cpp
+++ src/kitemviews/kitemlistcontroller.cpp
@@ -39,6 +39,7 @@
 #include <QMimeData>
 #include <QTimer>
 #include <QAccessible>
+#include <dolphin_generalsettings.h>
 
 KItemListController::KItemListController(KItemModelBase* model, KItemListView* view, QObject* parent) :
     QObject(parent),
@@ -882,6 +883,10 @@
         if (!droppingBetweenItems) {
             if (m_model->supportsDropping(index)) {
                 // Something has been dragged on an item.
+
+                // check if the we're dragging the same item onto itself.
+                event->setAccepted(shouldAcceptDrop(event->mimeData()->urls(), m_model->indexGetUrl(index)));
+
                 m_view->hideDropIndicator();
                 if (!newHoveredWidget->isHovered()) {
                     newHoveredWidget->setHovered(true);
@@ -901,6 +906,9 @@
             }
         }
     } else {
+        // We're hovering over the directory, check if we're dropping onto itself.
+        event->setAccepted(shouldAcceptDrop(event->mimeData()->urls(), m_model->directory()));
+
         m_view->hideDropIndicator();
     }
 
@@ -1326,3 +1334,18 @@
     }
 }
 
+bool KItemListController::urlListMatchesUrl(const QList<QUrl>& urls, const QUrl& destUrl)
+{
+    foreach(const QUrl& url, urls) {
+        if (url.matches(destUrl, QUrl::StripTrailingSlash)) {
+            return true;
+        }
+    }
+
+    return false;
+}
+
+bool KItemListController::shouldAcceptDrop(const QList<QUrl>& urls, const QUrl& destUrl)
+{
+    return GeneralSettings::autoExpandFolders() || !urlListMatchesUrl(urls, destUrl);
+}
Index: src/kitemviews/kitemmodelbase.h
===================================================================
--- src/kitemviews/kitemmodelbase.h
+++ src/kitemviews/kitemmodelbase.h
@@ -182,6 +182,16 @@
      */
     QString blacklistItemDropEventMimeType() const;
 
+    /**
+     * @return URL of the item at the specified index
+     */
+    virtual QUrl indexGetUrl(int index) const;
+
+    /**
+     * @return Parent directory of the items that are shown
+     */
+    virtual QUrl directory() const;
+
 signals:
     /**
      * Is emitted if one or more items have been inserted. Each item-range consists
Index: src/kitemviews/kitemmodelbase.cpp
===================================================================
--- src/kitemviews/kitemmodelbase.cpp
+++ src/kitemviews/kitemmodelbase.cpp
@@ -164,3 +164,13 @@
     Q_UNUSED(previous);
 }
 
+QUrl KItemModelBase::indexGetUrl(int index) const
+{
+    Q_UNUSED(index);
+    return QUrl();
+}
+
+QUrl KItemModelBase::directory() const
+{
+    return QUrl();
+}
Index: src/panels/places/placesitemmodel.h
===================================================================
--- src/panels/places/placesitemmodel.h
+++ src/panels/places/placesitemmodel.h
@@ -130,6 +130,8 @@
      */
     void saveBookmarks();
 
+    virtual QUrl indexGetUrl(int index) const Q_DECL_OVERRIDE;
+
 signals:
     void errorMessage(const QString& message);
     void storageSetupDone(int index, bool success);
Index: src/panels/places/placesitemmodel.cpp
===================================================================
--- src/panels/places/placesitemmodel.cpp
+++ src/panels/places/placesitemmodel.cpp
@@ -1135,6 +1135,17 @@
     return date;
 }
 
+QUrl PlacesItemModel::indexGetUrl(int index) const
+{
+    const PlacesItem* item = placesItem(index);
+
+    if (item) {
+        return item->url();
+    }
+
+    return KItemModelBase::indexGetUrl(index);
+}
+
 QUrl PlacesItemModel::createSearchUrl(const QUrl& url)
 {
     QUrl searchUrl;