diff --git a/MacPass/KdbGroup+Undo.h b/MacPass/KdbGroup+Undo.h
index 12dc2a73..0ba98ac9 100644
--- a/MacPass/KdbGroup+Undo.h
+++ b/MacPass/KdbGroup+Undo.h
@@ -17,10 +17,11 @@ APPKIT_EXTERN NSString *const MPGroupNameUndoableKey;
 - (NSString *)nameUndoable;
 - (void)setNameUndoable:(NSString *)newName;
 
-
 - (void)addEntryUndoable:(KdbEntry *)entry;
 - (void)addGroupUndoable:(KdbGroup *)group;
 - (void)removeGroupUndoable:(KdbGroup *)group;
 - (void)removeEntryUndoable:(KdbEntry *)entry;
 
+- (void)moveToGroupUndoable:(KdbGroup *)group;
+
 @end
diff --git a/MacPass/KdbGroup+Undo.m b/MacPass/KdbGroup+Undo.m
index 1bcb5158..0e075604 100644
--- a/MacPass/KdbGroup+Undo.m
+++ b/MacPass/KdbGroup+Undo.m
@@ -58,4 +58,17 @@ NSString *const MPGroupNameUndoableKey = @"nameUndoable";
   [[self undoManager] setActionName:NSLocalizedString(@"UNDO_DELETE_GROUP", @"Create Group Undo")];
   [group.parent removeObjectFromGroupsAtIndex:index];
 }
+
+- (void)moveToGroupUndoable:(KdbGroup *)group {
+  NSInteger index = [self.parent.groups indexOfObject:self];
+  if(NSNotFound == index) {
+    return; // No object found
+  }
+  [[self undoManager] registerUndoWithTarget:self selector:@selector(moveToGroupUndoable:) object:self.parent];
+  [[self undoManager] setActionName:NSLocalizedString(@"UNDO_MOVE_GROUP", @"Move Group Undo")];
+  [self.parent removeObjectFromGroupsAtIndex:index];
+  [group insertObject:self inGroupsAtIndex:[group.groups count]];
+}
+
+
 @end
diff --git a/MacPass/MPOutlineDataSource.h b/MacPass/MPOutlineDataSource.h
index 099a1a7c..6938abe4 100644
--- a/MacPass/MPOutlineDataSource.h
+++ b/MacPass/MPOutlineDataSource.h
@@ -8,7 +8,11 @@
 
 #import <Foundation/Foundation.h>
 
-@interface MPOutlineDataSource : NSObject <NSOutlineViewDataSource>
+APPKIT_EXTERN NSString *const MPPasteBoardType;
 
+@class KdbGroup;
 
+@interface MPOutlineDataSource : NSObject <NSOutlineViewDataSource> {
+  KdbGroup *_draggedItem;
+}
 @end
diff --git a/MacPass/MPOutlineDataSource.m b/MacPass/MPOutlineDataSource.m
index 8a012972..374dc274 100644
--- a/MacPass/MPOutlineDataSource.m
+++ b/MacPass/MPOutlineDataSource.m
@@ -9,43 +9,45 @@
 #import "MPOutlineDataSource.h"
 #import "MPDocument.h"
 #import "KdbLib.h"
+#import "KdbGroup+Undo.h"
+
+NSString *const MPPasteBoardType = @"com.hicknhack.macpass.pasteboard";
 
 @implementation MPOutlineDataSource
 
-- (NSInteger)outlineView:(NSOutlineView *)outlineView numberOfChildrenOfItem:(id)item {
-  if(!item) {
-    return 1;
+
+- (BOOL)outlineView:(NSOutlineView *)outlineView writeItems:(NSArray *)items toPasteboard:(NSPasteboard *)pasteboard {
+  [_draggedItem release];
+  _draggedItem = nil;
+  [pasteboard setString:@"Weee" forType:MPPasteBoardType];
+  if([items count] == 1) {
+    _draggedItem = [[[items lastObject] representedObject] retain];
+    return (nil != _draggedItem.parent);
   }
-  if( [item isKindOfClass:[KdbGroup class]]) {
-    KdbGroup *group = item;
-    return  [[group groups] count];
-  }
-  return 0;
-}
-- (id)outlineView:(NSOutlineView *)outlineView child:(NSInteger)index ofItem:(id)item {
-  if(!item) {
-    MPDocument *document = [[[outlineView window] windowController] document];
-    return document.root;
-  }
-  if( [item isKindOfClass:[KdbGroup class]]) {
-    KdbGroup *group = item;
-    if( [[group groups] count] > index ) {
-      return [group groups][index];
-    }
-  }
-  return nil;
-}
-- (BOOL)outlineView:(NSOutlineView *)outlineView isItemExpandable:(id)item {
-  if(!item) {
-    MPDocument *document = [[[outlineView window] windowController] document];
-    return ([[document.root groups] count] > 0);
-  }
-  if([item isKindOfClass:[KdbGroup class]])
-  {
-    KdbGroup *group = item;
-    return ([[group groups] count] > 0);
-  }
-  return NO;
+  return YES;
 }
 
+- (NSDragOperation)outlineView:(NSOutlineView *)outlineView validateDrop:(id<NSDraggingInfo>)info proposedItem:(id)item proposedChildIndex:(NSInteger)index {
+  if(_draggedItem) {
+    KdbGroup *target = [item representedObject];
+    if( target == nil) {
+      return NSDragOperationNone; // Draggin over root
+    }
+    BOOL validParent = ( _draggedItem.parent == target && index != NSOutlineViewDropOnItemIndex);
+    if(validParent || _draggedItem.parent != target) {
+      return NSDragOperationMove;
+      info.animatesToDestination = YES;
+    }
+  }
+  return NSDragOperationNone;
+}
+
+- (BOOL)outlineView:(NSOutlineView *)outlineView acceptDrop:(id<NSDraggingInfo>)info item:(id)item childIndex:(NSInteger)index {
+  NSLog(@"Drag %@ to: %@ index: %ld", _draggedItem, [item representedObject], index);
+  KdbGroup *target = [item representedObject];
+  BOOL accepted = (target != _draggedItem.parent);
+  info.animatesToDestination = YES;
+  [_draggedItem moveToGroupUndoable:target];
+  return accepted;
+}
 @end
diff --git a/MacPass/MPOutlineViewController.m b/MacPass/MPOutlineViewController.m
index f61ad866..1fabcfcd 100644
--- a/MacPass/MPOutlineViewController.m
+++ b/MacPass/MPOutlineViewController.m
@@ -13,6 +13,7 @@
 #import "MPAppDelegate.h"
 #import "KdbLib.h"
 
+
 @interface MPOutlineViewController () {
   BOOL _bindingEstablished;
 }
@@ -42,8 +43,8 @@
   if (self) {
     _treeController = [[NSTreeController alloc] init];
     _bindingEstablished = NO;
-    self.outlineDelegate = [[[MPOutlineViewDelegate alloc] init] autorelease];
-    self.datasource = [[[MPOutlineDataSource alloc] init] autorelease];
+    _outlineDelegate = [[MPOutlineViewDelegate alloc] init];
+    _datasource = [[MPOutlineDataSource alloc] init];
 
     [[NSNotificationCenter defaultCenter] addObserver:self
                                              selector:@selector(_didUpdateData:)
@@ -71,11 +72,11 @@
 }
 
 - (void)didLoadView {
-  //[self.outlineView setDataSource:self.datasource];
   [self.outlineView setDelegate:self.outlineDelegate];
   [self.outlineView setMenu:[self _contextMenu]];
   [self.outlineView setAllowsEmptySelection:YES];
   [self.outlineView setFloatsGroupRows:NO];
+  [_outlineView registerForDraggedTypes:@[ MPPasteBoardType ]];
   [self.outlineView setDraggingSourceOperationMask:NSDragOperationEvery forLocal:YES];
 }
 
@@ -85,6 +86,7 @@
     [_treeController setChildrenKeyPath:@"groups"];
     [_treeController bind:NSContentBinding toObject:document withKeyPath:@"root" options:nil];
     [_outlineView bind:NSContentBinding toObject:_treeController withKeyPath:@"arrangedObjects" options:nil];
+    [_outlineView setDataSource:self.datasource];
     _bindingEstablished = YES;
   }
   NSTreeNode *node = [_outlineView itemAtRow:0];
diff --git a/MacPass/MacPass-Info.plist b/MacPass/MacPass-Info.plist
index 7c9a4689..27fd8355 100644
--- a/MacPass/MacPass-Info.plist
+++ b/MacPass/MacPass-Info.plist
@@ -48,7 +48,7 @@
 	<key>CFBundleSignature</key>
 	<string>????</string>
 	<key>CFBundleVersion</key>
-	<string>A2F</string>
+	<string>A6E</string>
 	<key>LSMinimumSystemVersion</key>
 	<string>${MACOSX_DEPLOYMENT_TARGET}</string>
 	<key>NSHumanReadableCopyright</key>