diff --git a/frontend/src/components/tree-editor/NodeList.tsx b/frontend/src/components/tree-editor/NodeList.tsx
index 0f924bbb..3ac0e314 100644
--- a/frontend/src/components/tree-editor/NodeList.tsx
+++ b/frontend/src/components/tree-editor/NodeList.tsx
@@ -1,4 +1,4 @@
-import { useState } from 'react'
+import { useState, useRef } from 'react'
 import {
   Plus,
   Pencil,
@@ -14,7 +14,7 @@ import {
   AlertCircle,
   AlertTriangle
 } from 'lucide-react'
-import { useTreeEditorStore } from '@/store/treeEditorStore'
+import { useTreeEditorStore, findNodeInTree } from '@/store/treeEditorStore'
 import { NodeEditorModal } from './NodeEditorModal'
 import type { TreeStructure, NodeType } from '@/types'
 import { cn } from '@/lib/utils'
@@ -34,7 +34,9 @@ interface NodeListItemProps {
   onDragStart: (e: React.DragEvent, nodeId: string, parentId: string | null, index: number) => void
   onDragOver: (e: React.DragEvent, parentId: string | null, index: number) => void
   onDrop: (e: React.DragEvent, parentId: string | null, index: number) => void
-  dragOverTarget: { parentId: string | null; index: number } | null
+  onDragEnd: () => void
+  onDragLeave: (e: React.DragEvent) => void
+  dragOverTarget: { parentId: string | null; index: number; isValid: boolean } | null
   /** Array of booleans indicating which ancestor levels should show continuing lines */
   ancestorLines?: boolean[]
 }
@@ -53,11 +55,14 @@ function NodeListItem({
   onDragStart,
   onDragOver,
   onDrop,
+  onDragEnd,
+  onDragLeave,
   dragOverTarget,
   ancestorLines = []
 }: NodeListItemProps) {
   const { selectedNodeId, selectNode, validationErrors } = useTreeEditorStore()
   const [isCollapsed, setIsCollapsed] = useState(false)
+  const gripInitiated = useRef(false)
   const isSelected = selectedNodeId === node.id
   const isRootNode = node.id === 'root'
   const nodeErrors = validationErrors.filter(e => e.nodeId === node.id && e.severity === 'error')
@@ -79,7 +84,9 @@ function NodeListItem({
   }
 
   const isDragTarget =
-    dragOverTarget?.parentId === parentId && dragOverTarget?.index === index
+    dragOverTarget?.parentId === parentId &&
+    dragOverTarget?.index === index
+  const isDragValid = isDragTarget && dragOverTarget?.isValid
 
   const nodeTypeIcons: Record<NodeType, React.ReactNode> = {
     decision: <HelpCircle className="h-4 w-4" />,
@@ -143,13 +150,32 @@ function NodeListItem({
     <>
       {/* Drop indicator above */}
       {isDragTarget && (
-        <div className="h-1 bg-primary rounded-full mx-2" style={{ marginLeft: `${depth * 20 + 8}px` }} />
+        <div
+          className={cn(
+            'h-1 rounded-full mx-2 transition-colors',
+            isDragValid
+              ? 'bg-primary'
+              : 'bg-destructive animate-pulse shadow-[0_0_8px_rgba(239,68,68,0.6)]'
+          )}
+          style={{ marginLeft: `${depth * 20 + 8}px` }}
+        />
       )}
 
       <div
         draggable={node.id !== 'root'}
-        onDragStart={(e) => onDragStart(e, node.id, parentId, index)}
+        onDragStart={(e) => {
+          if (!gripInitiated.current) {
+            e.preventDefault()
+            return
+          }
+          onDragStart(e, node.id, parentId, index)
+        }}
+        onDragEnd={() => {
+          gripInitiated.current = false
+          onDragEnd()
+        }}
         onDragOver={(e) => onDragOver(e, parentId, index)}
+        onDragLeave={onDragLeave}
         onDrop={(e) => onDrop(e, parentId, index)}
         onClick={() => selectNode(node.id)}
         className={cn(
@@ -187,7 +213,11 @@ function NodeListItem({
 
         {/* Drag handle */}
         {node.id !== 'root' && (
-          <GripVertical className="h-4 w-4 cursor-grab text-muted-foreground opacity-0 group-hover:opacity-100" />
+          <GripVertical
+            className="h-4 w-4 cursor-grab text-muted-foreground opacity-0 group-hover:opacity-100"
+            onMouseDown={() => { gripInitiated.current = true }}
+            onMouseUp={() => { gripInitiated.current = false }}
+          />
         )}
         {node.id === 'root' && <div className="w-4" />}
 
@@ -336,17 +366,44 @@ function NodeListItem({
             onDragStart={onDragStart}
             onDragOver={onDragOver}
             onDrop={onDrop}
+            onDragEnd={onDragEnd}
+            onDragLeave={onDragLeave}
             dragOverTarget={dragOverTarget}
             ancestorLines={childAncestorLines}
           />
         )
       })}
+
+      {/* Trailing drop zone — allows dropping after the last child */}
+      {!isCollapsed && hasChildren && (() => {
+        const trailingIndex = node.children!.length
+        const isTrailingTarget =
+          dragOverTarget?.parentId === node.id &&
+          dragOverTarget?.index === trailingIndex
+        const isTrailingValid = isTrailingTarget && dragOverTarget?.isValid
+        return (
+          <div
+            className={cn(
+              'h-2 rounded-full mx-2 transition-colors',
+              isTrailingTarget
+                ? isTrailingValid
+                  ? 'bg-primary'
+                  : 'bg-destructive animate-pulse shadow-[0_0_8px_rgba(239,68,68,0.6)]'
+                : 'bg-transparent'
+            )}
+            style={{ marginLeft: `${(depth + 1) * 20 + 8}px` }}
+            onDragOver={(e) => onDragOver(e, node.id, trailingIndex)}
+            onDragLeave={onDragLeave}
+            onDrop={(e) => onDrop(e, node.id, trailingIndex)}
+          />
+        )
+      })()}
     </>
   )
 }
 
 export function NodeList() {
-  const { treeStructure, addNode, deleteNode, duplicateNode, reorderNodes, findNode } = useTreeEditorStore()
+  const { treeStructure, addNode, deleteNode, duplicateNode, reorderNodes, moveNode, findNode } = useTreeEditorStore()
   const [editingNodeId, setEditingNodeId] = useState<string | null>(null)
   const [isEditingNewNode, setIsEditingNewNode] = useState(false)
   const [addingToParent, setAddingToParent] = useState<string | null>(null)
@@ -361,6 +418,7 @@ export function NodeList() {
   const [dragOverTarget, setDragOverTarget] = useState<{
     parentId: string | null
     index: number
+    isValid: boolean
   } | null>(null)
 
   const handleAddNode = (type: NodeType) => {
@@ -391,6 +449,29 @@ export function NodeList() {
     setDragState({ nodeId, parentId, index })
   }
 
+  // Check if a node can be dropped at a target location
+  const canDropAt = (draggedNodeId: string, targetParentId: string | null): boolean => {
+    if (!treeStructure) return false
+
+    // Can't drop at root level (no parent)
+    if (targetParentId === null) return false
+
+    // Can't drop onto itself
+    if (draggedNodeId === targetParentId) return false
+
+    // Can't drop onto a descendant of the dragged node
+    const draggedNode = findNodeInTree(draggedNodeId, treeStructure)
+    if (!draggedNode) return false
+    if (findNodeInTree(targetParentId, draggedNode)) return false
+
+    // Target parent must be able to have children (solution nodes are terminal)
+    const targetParent = findNodeInTree(targetParentId, treeStructure)
+    if (!targetParent) return false
+    if (targetParent.type === 'solution') return false
+
+    return true
+  }
+
   const handleDragOver = (
     e: React.DragEvent,
     parentId: string | null,
@@ -399,10 +480,19 @@ export function NodeList() {
     e.preventDefault()
     if (!dragState) return
 
-    // Don't allow dropping on itself or its descendants
+    // Don't show indicator when hovering over self
     if (dragState.nodeId === parentId) return
 
-    setDragOverTarget({ parentId, index })
+    const isValid = canDropAt(dragState.nodeId, parentId)
+    setDragOverTarget({ parentId, index, isValid })
+  }
+
+  const handleDragLeave = (e: React.DragEvent) => {
+    // Only clear if leaving to an element outside the current target
+    const relatedTarget = e.relatedTarget as HTMLElement | null
+    if (!relatedTarget || !e.currentTarget.contains(relatedTarget)) {
+      setDragOverTarget(null)
+    }
   }
 
   const handleDrop = (
@@ -413,13 +503,19 @@ export function NodeList() {
     e.preventDefault()
     if (!dragState) return
 
-    const { parentId: sourceParentId, index: sourceIndex } = dragState
+    const { parentId: sourceParentId, index: sourceIndex, nodeId } = dragState
 
-    // Only handle reordering within same parent for now
-    if (sourceParentId === targetParentId && sourceParentId) {
-      const adjustedIndex = sourceIndex < targetIndex ? targetIndex - 1 : targetIndex
-      if (sourceIndex !== adjustedIndex) {
-        reorderNodes(sourceParentId, sourceIndex, adjustedIndex)
+    // Only execute valid drops
+    if (targetParentId && canDropAt(nodeId, targetParentId)) {
+      if (sourceParentId === targetParentId) {
+        // Same parent — use reorderNodes with index adjustment
+        const adjustedIndex = sourceIndex < targetIndex ? targetIndex - 1 : targetIndex
+        if (sourceIndex !== adjustedIndex) {
+          reorderNodes(sourceParentId, sourceIndex, adjustedIndex)
+        }
+      } else {
+        // Cross-parent — use moveNode
+        moveNode(nodeId, targetParentId, targetIndex)
       }
     }
 
@@ -441,7 +537,7 @@ export function NodeList() {
   }
 
   return (
-    <div className="rounded-lg border border-border bg-card" onDragEnd={handleDragEnd}>
+    <div className="rounded-lg border border-border bg-card">
       <div className="flex items-center justify-between border-b border-border p-3">
         <h2 className="text-sm font-semibold text-card-foreground">Nodes</h2>
         <button
@@ -471,6 +567,8 @@ export function NodeList() {
           onDragStart={handleDragStart}
           onDragOver={handleDragOver}
           onDrop={handleDrop}
+          onDragEnd={handleDragEnd}
+          onDragLeave={handleDragLeave}
           dragOverTarget={dragOverTarget}
         />
       </div>
diff --git a/frontend/src/store/treeEditorStore.ts b/frontend/src/store/treeEditorStore.ts
index 495e5091..92d310a7 100644
--- a/frontend/src/store/treeEditorStore.ts
+++ b/frontend/src/store/treeEditorStore.ts
@@ -17,8 +17,8 @@ const DRAFT_STORAGE_KEY = 'tree-editor-draft'
 // Helper to generate unique IDs
 const generateId = () => crypto.randomUUID()
 
-// Helper to find a node in the tree structure
-const findNodeInTree = (
+// Helper to find a node in the tree structure (exported for drag validation)
+export const findNodeInTree = (
   nodeId: string,
   structure: TreeStructure | null
 ): TreeStructure | null => {
@@ -144,6 +144,7 @@ interface TreeEditorState {
 
   // Actions - Node ordering
   reorderNodes: (parentId: string, fromIndex: number, toIndex: number) => void
+  moveNode: (nodeId: string, targetParentId: string, targetIndex: number) => void
   reorderOptions: (nodeId: string, fromIndex: number, toIndex: number) => void
 
   // Actions - Selection
@@ -496,6 +497,37 @@ export const useTreeEditorStore = create<TreeEditorState>()(
         get().autoSaveDraft()
       },
 
+      moveNode: (nodeId: string, targetParentId: string, targetIndex: number) => {
+        set((state) => {
+          // Find and remove from current parent
+          const currentParent = findParentNode(nodeId, state.treeStructure)
+          if (!currentParent?.children) return
+
+          const sourceIndex = currentParent.children.findIndex(c => c.id === nodeId)
+          if (sourceIndex === -1) return
+
+          const [movedNode] = currentParent.children.splice(sourceIndex, 1)
+
+          // Find target parent and insert
+          const targetParent = findNodeInTree(targetParentId, state.treeStructure)
+          if (!targetParent) return
+
+          if (!targetParent.children) {
+            targetParent.children = []
+          }
+
+          // Adjust index if moving within same parent and source was before target
+          let adjustedIndex = targetIndex
+          if (currentParent.id === targetParent.id && sourceIndex < targetIndex) {
+            adjustedIndex = targetIndex - 1
+          }
+
+          targetParent.children.splice(adjustedIndex, 0, movedNode)
+          state.isDirty = true
+        })
+        get().autoSaveDraft()
+      },
+
       reorderOptions: (nodeId: string, fromIndex: number, toIndex: number) => {
         set((state) => {
           const node = findNodeInTree(nodeId, state.treeStructure)