diff --git a/ui/src/Core/AssetItem.h b/ui/src/Core/AssetItem.h
index e6ca839f..8875bcd3 100644
--- a/ui/src/Core/AssetItem.h
+++ b/ui/src/Core/AssetItem.h
@@ -10,6 +10,7 @@ struct AssetItem {
     std::string name;
     std::string type;
     bool isFolder;
+    std::string fullPath;
     std::vector<std::shared_ptr<AssetItem>> children;
 };
 
diff --git a/ui/src/Managers/ProjectManager.cpp b/ui/src/Managers/ProjectManager.cpp
index 34e031f1..e6e1b763 100644
--- a/ui/src/Managers/ProjectManager.cpp
+++ b/ui/src/Managers/ProjectManager.cpp
@@ -85,6 +85,7 @@ void ProjectManager::Initialize(const std::string& projectPath) {
         
         m_rootFolder = ScanDirectory(assetsPath.wstring());
         m_rootFolder->name = "Assets";
+        m_rootFolder->fullPath = WstringToUtf8(assetsPath.wstring());
         
         m_path.clear();
         m_path.push_back(m_rootFolder);
@@ -143,6 +144,27 @@ void ProjectManager::DeleteItem(int index) {
     }
 }
 
+bool ProjectManager::MoveItem(const std::string& sourceFullPath, const std::string& destFolderFullPath) {
+    try {
+        fs::path sourcePath = Utf8ToWstring(sourceFullPath);
+        fs::path destPath = fs::path(Utf8ToWstring(destFolderFullPath)) / sourcePath.filename();
+        
+        if (!fs::exists(sourcePath)) {
+            return false;
+        }
+        
+        if (fs::exists(destPath)) {
+            return false;
+        }
+        
+        fs::rename(sourcePath, destPath);
+        RefreshCurrentFolder();
+        return true;
+    } catch (...) {
+        return false;
+    }
+}
+
 AssetItemPtr ProjectManager::ScanDirectory(const std::wstring& path) {
     auto folder = std::make_shared<AssetItem>();
     folder->name = WstringToUtf8(fs::path(path).filename().wstring());
@@ -175,6 +197,7 @@ AssetItemPtr ProjectManager::CreateAssetItem(const std::wstring& path, const std
     auto item = std::make_shared<AssetItem>();
     item->name = WstringToUtf8(nameW);
     item->isFolder = isFolder;
+    item->fullPath = WstringToUtf8(path);
     
     if (isFolder) {
         item->type = "Folder";
diff --git a/ui/src/Managers/ProjectManager.h b/ui/src/Managers/ProjectManager.h
index f2b84bcb..8082afef 100644
--- a/ui/src/Managers/ProjectManager.h
+++ b/ui/src/Managers/ProjectManager.h
@@ -26,6 +26,7 @@ public:
     
     void CreateFolder(const std::string& name);
     void DeleteItem(int index);
+    bool MoveItem(const std::string& sourceFullPath, const std::string& destFolderFullPath);
     
     const std::string& GetProjectPath() const { return m_projectPath; }
 
diff --git a/ui/src/panels/ProjectPanel.cpp b/ui/src/panels/ProjectPanel.cpp
index 24c255e6..e1bc072c 100644
--- a/ui/src/panels/ProjectPanel.cpp
+++ b/ui/src/panels/ProjectPanel.cpp
@@ -6,6 +6,8 @@
 
 namespace UI {
 
+const char* DRAG_DROP_TYPE = "ASSET_ITEM";
+
 ProjectPanel::ProjectPanel() : Panel("Project") {
 }
 
@@ -190,6 +192,29 @@ void ProjectPanel::RenderAssetItem(const AssetItemPtr& item, int index) {
     drawList->AddText(ImVec2(min.x + textOffset, min.y + 60.0f), ImGui::GetColorU32(textColor), item->name.c_str());
     ImGui::PopClipRect();
     
+    if (item->isFolder) {
+        if (ImGui::BeginDragDropTarget()) {
+            if (const ImGuiPayload* payload = ImGui::AcceptDragDropPayload(DRAG_DROP_TYPE)) {
+                const char* draggedPath = (const char*)payload->Data;
+                std::string sourcePath(draggedPath);
+                manager.MoveItem(sourcePath, item->fullPath);
+            }
+            ImGui::EndDragDropTarget();
+        }
+        
+        if (ImGui::IsItemHovered(ImGuiHoveredFlags_AllowWhenBlockedByActiveItem)) {
+            ImDrawList* hoverDrawList = ImGui::GetWindowDrawList();
+            hoverDrawList->AddRect(min, ImVec2(min.x + buttonSize.x, min.y + buttonSize.y), IM_COL32(255, 255, 255, 80), 4.0f);
+        }
+    }
+    
+    if (!item->fullPath.empty()) {
+        if (ImGui::BeginDragDropSource(ImGuiDragDropFlags_None)) {
+            ImGui::SetDragDropPayload(DRAG_DROP_TYPE, item->fullPath.c_str(), item->fullPath.length() + 1);
+            ImGui::EndDragDropSource();
+        }
+    }
+    
     if (doubleClicked && item->isFolder) {
         manager.NavigateToFolder(item);
     }
@@ -206,4 +231,8 @@ void ProjectPanel::CreateNewFolder(const std::string& name) {
     manager.CreateFolder(name);
 }
 
+bool ProjectPanel::HandleDrop(const AssetItemPtr& targetFolder) {
+    return false;
+}
+
 }
\ No newline at end of file
diff --git a/ui/src/panels/ProjectPanel.h b/ui/src/panels/ProjectPanel.h
index da9c0e80..803c7cd1 100644
--- a/ui/src/panels/ProjectPanel.h
+++ b/ui/src/panels/ProjectPanel.h
@@ -14,6 +14,7 @@ public:
 private:
     void RenderAssetItem(const AssetItemPtr& item, int index);
     void CreateNewFolder(const std::string& name);
+    bool HandleDrop(const AssetItemPtr& targetFolder);
     
     char m_searchBuffer[256] = "";
     bool m_showCreateFolderPopup = false;