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 +145,9 @@
      */
     KFileItem rootItem() const;
 
+    QUrl indexGetUrl(int index) const Q_DECL_OVERRIDE;
+    bool indexIsDir(int index) Q_DECL_OVERRIDE;
+
     /**
      * Clears all items of the model.
      */
Index: src/kitemviews/kfileitemmodel.cpp
===================================================================
--- src/kitemviews/kfileitemmodel.cpp
+++ src/kitemviews/kfileitemmodel.cpp
@@ -2413,3 +2413,13 @@
 
     return true;
 }
+
+QUrl KFileItemModel::indexGetUrl(int index) const
+{
+    return fileItem(index).url();
+}
+
+bool KFileItemModel::indexIsDir(int index)
+{
+    return fileItem(index).isDir();
+}
Index: src/kitemviews/kitemlistcontroller.h
===================================================================
--- src/kitemviews/kitemlistcontroller.h
+++ src/kitemviews/kitemlistcontroller.h
@@ -256,6 +256,11 @@
      */
     void startDragging();
 
+    /**
+     * @return True, if destUrl is contained in the url list.
+     */
+    bool urlListMatchesUrl(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
@@ -838,6 +838,7 @@
     Q_UNUSED(event);
     Q_UNUSED(transform);
 
+    m_autoActivationTimer->stop();
     m_view->setAutoScroll(false);
     m_view->hideDropIndicator();
 
@@ -855,8 +856,8 @@
         return false;
     }
 
-    event->acceptProposedAction();
 
+    QUrl hoveredDir = m_model->directory();
     KItemListWidget* oldHoveredWidget = hoveredWidget();
 
     const QPointF pos = transform.map(event->pos());
@@ -879,6 +880,11 @@
         }
 
         const int index = newHoveredWidget->index();
+
+        if (m_model->indexIsDir(index)) {
+            hoveredDir = m_model->indexGetUrl(index);
+        }
+
         if (!droppingBetweenItems) {
             if (m_model->supportsDropping(index)) {
                 // Something has been dragged on an item.
@@ -904,6 +910,8 @@
         m_view->hideDropIndicator();
     }
 
+    event->setAccepted(!urlListMatchesUrl(event->mimeData()->urls(), hoveredDir));
+
     return false;
 }
 
@@ -1326,3 +1334,13 @@
     }
 }
 
+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;
+}
Index: src/kitemviews/kitemmodelbase.h
===================================================================
--- src/kitemviews/kitemmodelbase.h
+++ src/kitemviews/kitemmodelbase.h
@@ -182,6 +182,21 @@
      */
     QString blacklistItemDropEventMimeType() const;
 
+    /**
+     * @return URL of the item at the specified index
+     */
+    virtual QUrl indexGetUrl(int index) const;
+
+    /**
+     * @return True, if item at specified index is a directory
+     */
+    virtual bool indexIsDir(int index) = 0;
+
+    /**
+     * @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 +164,14 @@
     Q_UNUSED(previous);
 }
 
+
+QUrl KItemModelBase::indexGetUrl(int index) const
+{
+    Q_UNUSED(index);
+    return QUrl();
+}
+
+QUrl KItemModelBase::directory() const
+{
+    return QUrl();
+}
Index: src/kitemviews/kstandarditemmodel.h
===================================================================
--- src/kitemviews/kstandarditemmodel.h
+++ src/kitemviews/kstandarditemmodel.h
@@ -63,6 +63,7 @@
     void removeItem(int index);
     KStandardItem* item(int index) const;
     int index(const KStandardItem* item) const;
+    bool indexIsDir(int index) Q_DECL_OVERRIDE;
 
     /**
      * Convenience method for insertItem(count(), item).
Index: src/kitemviews/kstandarditemmodel.cpp
===================================================================
--- src/kitemviews/kstandarditemmodel.cpp
+++ src/kitemviews/kstandarditemmodel.cpp
@@ -237,3 +237,8 @@
     Q_UNUSED(removedItem);
 }
 
+bool KStandardItemModel::indexIsDir(int index) {
+    Q_UNUSED(index);
+    return true;
+}
+
Index: src/panels/places/placesitemmodel.h
===================================================================
--- src/panels/places/placesitemmodel.h
+++ src/panels/places/placesitemmodel.h
@@ -132,6 +132,9 @@
      */
     void saveBookmarks();
 
+    QUrl indexGetUrl(int index) const Q_DECL_OVERRIDE;
+    bool indexIsDir(int index) 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
@@ -1159,6 +1159,23 @@
     return date;
 }
 
+QUrl PlacesItemModel::indexGetUrl(int index) const
+{
+    const PlacesItem* item = placesItem(index);
+
+    if (item) {
+        return item->url();
+    }
+
+    return KItemModelBase::indexGetUrl(index);
+}
+
+bool PlacesItemModel::indexIsDir(int index)
+{
+    Q_UNUSED(index);
+    return true;
+}
+
 QUrl PlacesItemModel::createSearchUrl(const QUrl& url)
 {
     QUrl searchUrl;
Index: src/tests/kitemlistselectionmanagertest.cpp
===================================================================
--- src/tests/kitemlistselectionmanagertest.cpp
+++ src/tests/kitemlistselectionmanagertest.cpp
@@ -29,6 +29,8 @@
     Q_OBJECT
 public:
     DummyModel();
+
+    bool indexIsDir(int index) Q_DECL_OVERRIDE;
     void setCount(int count);
     int count() const Q_DECL_OVERRIDE;
     QHash<QByteArray, QVariant> data(int index) const Q_DECL_OVERRIDE;
@@ -53,6 +55,12 @@
     return m_count;
 }
 
+bool DummyModel::indexIsDir(int index)
+{
+    Q_UNUSED(index);
+    return false;
+}
+
 QHash<QByteArray, QVariant> DummyModel::data(int index) const
 {
     Q_UNUSED(index);