diff --git a/lib/ace/mouse/dragdrop.js b/lib/ace/mouse/dragdrop.js
index e69de29b..8fe5cb5e 100644
--- a/lib/ace/mouse/dragdrop.js
+++ b/lib/ace/mouse/dragdrop.js
@@ -0,0 +1,105 @@
+/* vim:ts=4:sts=4:sw=4:
+ * ***** BEGIN LICENSE BLOCK *****
+ * Version: MPL 1.1/GPL 2.0/LGPL 2.1
+ *
+ * The contents of this file are subject to the Mozilla Public License Version
+ * 1.1 (the "License"); you may not use this file except in compliance with
+ * the License. You may obtain a copy of the License at
+ * http://www.mozilla.org/MPL/
+ *
+ * Software distributed under the License is distributed on an "AS IS" basis,
+ * WITHOUT WARRANTY OF ANY KIND, either express or implied. See the License
+ * for the specific language governing rights and limitations under the
+ * License.
+ *
+ * The Original Code is Ajax.org Code Editor (ACE).
+ *
+ * The Initial Developer of the Original Code is
+ * Ajax.org B.V.
+ * Portions created by the Initial Developer are Copyright (C) 2010
+ * the Initial Developer. All Rights Reserved.
+ *
+ * Contributor(s):
+ *
+ * Alternatively, the contents of this file may be used under the terms of
+ * either the GNU General Public License Version 2 or later (the "GPL"), or
+ * the GNU Lesser General Public License Version 2.1 or later (the "LGPL"),
+ * in which case the provisions of the GPL or the LGPL are applicable instead
+ * of those above. If you wish to allow use of your version of this file only
+ * under the terms of either the GPL or the LGPL, and not to allow others to
+ * use your version of this file under the terms of the MPL, indicate your
+ * decision by deleting the provisions above and replace them with the notice
+ * and other provisions required by the GPL or the LGPL. If you do not delete
+ * the provisions above, a recipient may use your version of this file under
+ * the terms of any one of the MPL, the GPL or the LGPL.
+ *
+ * ***** END LICENSE BLOCK ***** */
+
+define(function(require, exports, module) {
+"use strict";
+
+var event = require("../lib/event");
+
+var DragdropHandler = function(mouseHandler) {
+    var editor = mouseHandler.editor;
+    var dragSelectionMarker, x, y;
+    var timerId, range, isBackwards;
+    var dragCursor, counter = 0;
+
+    var mouseTarget = editor.container;
+    event.addListener(mouseTarget, "dragenter", function(e) {console.log(e.type, counter,e.target);
+        counter++;
+        if (!dragSelectionMarker) {
+            range = editor.getSelectionRange();
+            isBackwards = editor.selection.isBackwards();
+            var style = editor.getSelectionStyle();
+            dragSelectionMarker = editor.session.addMarker(range, "ace_selection", style);
+            editor.clearSelection();
+            clearInterval(timerId);
+            timerId = setInterval(onDragInterval, 20);
+        }
+        return event.preventDefault(e);
+    });
+
+    event.addListener(mouseTarget, "dragover", function(e) {
+        x = e.clientX;
+        y = e.clientY;
+        return event.preventDefault(e);
+    });
+    
+    var onDragInterval =  function() {
+        dragCursor = editor.renderer.screenToTextCoordinates(x, y);
+        editor.moveCursorToPosition(dragCursor);
+        editor.renderer.scrollCursorIntoView();
+    };
+    
+    event.addListener(mouseTarget, "dragleave", function(e) {console.log(e.type, counter,e.target);
+        counter--;
+        if (counter > 0)
+            return;
+        console.log(e.type, counter,e.target);
+        clearInterval(timerId);
+        editor.session.removeMarker(dragSelectionMarker);
+        dragSelectionMarker = null;
+        editor.selection.setSelectionRange(range, isBackwards);
+        return event.preventDefault(e);
+    });
+    
+    event.addListener(mouseTarget, "drop", function(e) {
+        console.log(e.type, counter,e.target);
+        counter = 0;
+        clearInterval(timerId);
+        editor.session.removeMarker(dragSelectionMarker);
+        dragSelectionMarker = null;
+
+        range.end = editor.session.insert(dragCursor, e.dataTransfer.getData('Text'));
+        range.start = dragCursor;
+        editor.focus();
+        editor.selection.setSelectionRange(range);
+        return event.preventDefault(e);
+    });
+
+};
+
+exports.DragdropHandler = DragdropHandler;
+});
diff --git a/lib/ace/mouse/mouse_handler.js b/lib/ace/mouse/mouse_handler.js
index ad9b19f4..e1e7a2a1 100644
--- a/lib/ace/mouse/mouse_handler.js
+++ b/lib/ace/mouse/mouse_handler.js
@@ -44,12 +44,14 @@ var event = require("../lib/event");
 var DefaultHandlers = require("./default_handlers").DefaultHandlers;
 var DefaultGutterHandler = require("./default_gutter_handler").GutterHandler;
 var MouseEvent = require("./mouse_event").MouseEvent;
+var DragdropHandler = require("./dragdrop").DragdropHandler;
 
 var MouseHandler = function(editor) {
     this.editor = editor;
 
     new DefaultHandlers(this);
     new DefaultGutterHandler(this);
+    new DragdropHandler(this);
 
     event.addListener(editor.container, "mousedown", function(e) {
         editor.focus();