diff --git a/crates/egui_demo_lib/src/demo/drag_and_drop.rs b/crates/egui_demo_lib/src/demo/drag_and_drop.rs
index af697a130c2..29bda3350ac 100644
--- a/crates/egui_demo_lib/src/demo/drag_and_drop.rs
+++ b/crates/egui_demo_lib/src/demo/drag_and_drop.rs
@@ -11,9 +11,9 @@ impl Default for DragAndDropDemo {
     fn default() -> Self {
         Self {
             columns: vec![
-                vec!["Item A", "Item B", "Item C"],
-                vec!["Item D", "Item E"],
-                vec!["Item F", "Item G", "Item H"],
+                vec!["Item A", "Item B", "Item C", "Item D"],
+                vec!["Item E", "Item F", "Item G"],
+                vec!["Item H", "Item I", "Item J", "Item K"],
             ]
             .into_iter()
             .map(|v| v.into_iter().map(ToString::to_string).collect())
@@ -39,9 +39,10 @@ impl super::Demo for DragAndDropDemo {
 }
 
 /// What is being dragged.
-struct DragInfo {
-    col_idx: usize,
-    row_idx: usize,
+#[derive(Clone, Copy, Debug, PartialEq, Eq)]
+struct Location {
+    col: usize,
+    row: usize,
 }
 
 impl super::View for DragAndDropDemo {
@@ -49,29 +50,90 @@ impl super::View for DragAndDropDemo {
         ui.label("This is a simple example of drag-and-drop in egui.");
         ui.label("Drag items between columns.");
 
+        // If there is a drop, store the location of the item being dragged, and the destination for the drop.
+        let mut from = None;
+        let mut to = None;
+
         ui.columns(self.columns.len(), |uis| {
             for (col_idx, column) in self.columns.clone().into_iter().enumerate() {
                 let ui = &mut uis[col_idx];
 
                 let frame = Frame::default().inner_margin(4.0);
-                let (_, dropped_payload) = ui.dnd_drop_zone::<DragInfo>(frame, |ui| {
+
+                let (_, dropped_payload) = ui.dnd_drop_zone::<Location>(frame, |ui| {
                     ui.set_min_size(vec2(64.0, 100.0));
                     for (row_idx, item) in column.iter().enumerate() {
                         let item_id = Id::new(("my_drag_and_drop_demo", col_idx, row_idx));
-                        let payload = DragInfo { col_idx, row_idx };
-                        ui.dnd_drag_source(item_id, payload, |ui| {
-                            ui.label(item);
-                        });
+                        let item_location = Location {
+                            col: col_idx,
+                            row: row_idx,
+                        };
+                        let response = ui
+                            .dnd_drag_source(item_id, item_location, |ui| {
+                                ui.label(item);
+                            })
+                            .response;
+
+                        // Detect drops onto this item:
+                        if let (Some(pointer), Some(hovered_payload)) = (
+                            ui.input(|i| i.pointer.interact_pos()),
+                            response.dnd_hover_payload::<Location>(),
+                        ) {
+                            let rect = response.rect;
+
+                            // Preview insertion:
+                            let stroke = egui::Stroke::new(1.0, Color32::WHITE);
+                            let insert_row_idx = if *hovered_payload == item_location {
+                                // We are dragged onto ourselves
+                                ui.painter().hline(rect.x_range(), rect.center().y, stroke);
+                                row_idx
+                            } else if pointer.y < rect.center().y {
+                                // Above us
+                                ui.painter().hline(rect.x_range(), rect.top(), stroke);
+                                row_idx
+                            } else {
+                                // Below us
+                                ui.painter().hline(rect.x_range(), rect.bottom(), stroke);
+                                row_idx + 1
+                            };
+
+                            if let Some(dragged_payload) = response.dnd_release_payload() {
+                                // The user dropped onto this item.
+                                from = Some(dragged_payload);
+                                to = Some(Location {
+                                    col: col_idx,
+                                    row: insert_row_idx,
+                                });
+                            }
+                        }
                     }
                 });
 
-                if let Some(source) = dropped_payload {
-                    let item = self.columns[source.col_idx].remove(source.row_idx);
-                    self.columns[col_idx].push(item);
+                if let Some(dragged_payload) = dropped_payload {
+                    // The user dropped onto the column, but not on any one item.
+                    from = Some(dragged_payload);
+                    to = Some(Location {
+                        col: col_idx,
+                        row: usize::MAX, // Inset last
+                    });
                 }
             }
         });
 
+        if let (Some(from), Some(mut to)) = (from, to) {
+            if from.col == to.col {
+                // Dragging within the same column.
+                // Adjust row index if we are re-ordering:
+                to.row -= (from.row < to.row) as usize;
+            }
+
+            let item = self.columns[from.col].remove(from.row);
+
+            let column = &mut self.columns[to.col];
+            to.row = to.row.min(column.len());
+            column.insert(to.row, item);
+        }
+
         ui.vertical_centered(|ui| {
             ui.add(crate::egui_github_link_file!());
         });