diff --git a/apps/web/components/dashboard/tags/AllTagsView.tsx b/apps/web/components/dashboard/tags/AllTagsView.tsx
index ac139e23..7b81ed72 100644
--- a/apps/web/components/dashboard/tags/AllTagsView.tsx
+++ b/apps/web/components/dashboard/tags/AllTagsView.tsx
@@ -13,16 +13,11 @@ import InfoTooltip from "@/components/ui/info-tooltip";
 import { Separator } from "@/components/ui/separator";
 import { Toggle } from "@/components/ui/toggle";
 import { toast } from "@/components/ui/use-toast";
-import { useDragAndDrop } from "@/lib/drag-and-drop";
 import { api } from "@/lib/trpc";
 import { ArrowDownAZ, Combine } from "lucide-react";
-import Draggable from "react-draggable";
 
 import type { ZGetTagResponse } from "@hoarder/shared/types/tags";
-import {
-  useDeleteUnusedTags,
-  useMergeTag,
-} from "@hoarder/shared-react/hooks/tags";
+import { useDeleteUnusedTags } from "@hoarder/shared-react/hooks/tags";
 
 import { TagPill } from "./TagPill";
 
@@ -79,17 +74,6 @@ export default function AllTagsView({
   const [draggingEnabled, setDraggingEnabled] = React.useState(false);
   const [sortByName, setSortByName] = React.useState(false);
 
-  const { handleDragStart, handleDragEnd } = useDragAndDrop(
-    "data-id",
-    "data-id",
-    (dragSourceId: string, dragTargetId: string) => {
-      mergeTag({
-        fromTagIds: [dragSourceId],
-        intoTagId: dragTargetId,
-      });
-    },
-  );
-
   function toggleSortByName(): void {
     setSortByName(!sortByName);
   }
@@ -98,40 +82,9 @@ export default function AllTagsView({
     setDraggingEnabled(!draggingEnabled);
   }
 
-  const { mutate: mergeTag } = useMergeTag({
-    onSuccess: () => {
-      toast({
-        description: "Tags have been merged!",
-      });
-    },
-    onError: (e) => {
-      if (e.data?.code == "BAD_REQUEST") {
-        if (e.data.zodError) {
-          toast({
-            variant: "destructive",
-            description: Object.values(e.data.zodError.fieldErrors)
-              .flat()
-              .join("\n"),
-          });
-        } else {
-          toast({
-            variant: "destructive",
-            description: e.message,
-          });
-        }
-      } else {
-        toast({
-          variant: "destructive",
-          title: "Something went wrong",
-        });
-      }
-    },
-  });
-
   const { data } = api.tags.list.useQuery(undefined, {
     initialData: { tags: initialData },
   });
-
   // Sort tags by usage desc
   const allTags = data.tags.sort(sortByName ? byNameSorter : byUsageSorter);
 
@@ -145,21 +98,13 @@ export default function AllTagsView({
       tagPill = (
         <div className="flex flex-wrap gap-3">
           {tags.map((t) => (
-            <Draggable
+            <TagPill
               key={t.id}
-              axis="both"
-              onStart={handleDragStart}
-              onStop={handleDragEnd}
-              disabled={!draggingEnabled}
-              defaultClassNameDragging={
-                "position-relative z-10 pointer-events-none"
-              }
-              position={{ x: 0, y: 0 }}
-            >
-              <div className="cursor-grab" data-id={t.id}>
-                <TagPill id={t.id} name={t.name} count={t.count} />
-              </div>
-            </Draggable>
+              id={t.id}
+              name={t.name}
+              count={t.count}
+              isDraggable={draggingEnabled}
+            />
           ))}
         </div>
       );
@@ -173,6 +118,7 @@ export default function AllTagsView({
       <div className="flex justify-end gap-x-2">
         <Toggle
           variant="outline"
+          aria-label="Toggle bold"
           pressed={draggingEnabled}
           onPressedChange={toggleDraggingEnabled}
         >
@@ -184,6 +130,7 @@ export default function AllTagsView({
         </Toggle>
         <Toggle
           variant="outline"
+          aria-label="Toggle bold"
           pressed={sortByName}
           onPressedChange={toggleSortByName}
         >
@@ -196,22 +143,16 @@ export default function AllTagsView({
           <p>Tags that were attached at least once by you</p>
         </InfoTooltip>
       </span>
-
       {tagsToPill(humanTags)}
-
       <Separator />
-
       <span className="flex items-center gap-2">
         <p className="text-lg">AI Tags</p>
         <InfoTooltip size={15} className="my-auto" variant="explain">
           <p>Tags that were only attached automatically (by AI)</p>
         </InfoTooltip>
       </span>
-
       {tagsToPill(aiTags)}
-
       <Separator />
-
       <span className="flex items-center gap-2">
         <p className="text-lg">Unused Tags</p>
         <InfoTooltip size={15} className="my-auto" variant="explain">
diff --git a/apps/web/components/dashboard/tags/TagPill.tsx b/apps/web/components/dashboard/tags/TagPill.tsx
index f1c99d70..88b88b52 100644
--- a/apps/web/components/dashboard/tags/TagPill.tsx
+++ b/apps/web/components/dashboard/tags/TagPill.tsx
@@ -1,7 +1,13 @@
+import React from "react";
 import Link from "next/link";
 import { Button } from "@/components/ui/button";
 import { Separator } from "@/components/ui/separator";
+import { toast } from "@/components/ui/use-toast";
+import { useDragAndDrop } from "@/lib/drag-and-drop";
 import { X } from "lucide-react";
+import Draggable from "react-draggable";
+
+import { useMergeTag } from "@hoarder/shared-react/hooks/tags";
 
 import DeleteTagConfirmationDialog from "./DeleteTagConfirmationDialog";
 
@@ -9,32 +15,84 @@ export function TagPill({
   id,
   name,
   count,
+  isDraggable,
 }: {
   id: string;
   name: string;
   count: number;
+  isDraggable: boolean;
 }) {
-  return (
-    <div className="group relative flex">
-      <Link
-        className={
-          "flex gap-2 rounded-md border border-border bg-background px-2 py-1 text-foreground hover:bg-foreground hover:text-background"
+  const { mutate: mergeTag } = useMergeTag({
+    onSuccess: () => {
+      toast({
+        description: "Tags have been merged!",
+      });
+    },
+    onError: (e) => {
+      if (e.data?.code == "BAD_REQUEST") {
+        if (e.data.zodError) {
+          toast({
+            variant: "destructive",
+            description: Object.values(e.data.zodError.fieldErrors)
+              .flat()
+              .join("\n"),
+          });
+        } else {
+          toast({
+            variant: "destructive",
+            description: e.message,
+          });
         }
-        href={`/dashboard/tags/${id}`}
-        data-id={id}
-      >
-        {name} <Separator orientation="vertical" /> {count}
-      </Link>
+      } else {
+        toast({
+          variant: "destructive",
+          title: "Something went wrong",
+        });
+      }
+    },
+  });
+
+  const dragAndDropFunction = useDragAndDrop(
+    "data-id",
+    (dragTargetId: string) => {
+      mergeTag({
+        fromTagIds: [id],
+        intoTagId: dragTargetId,
+      });
+    },
+  );
 
-      <DeleteTagConfirmationDialog tag={{ name, id }}>
-        <Button
-          size="none"
-          variant="secondary"
-          className="-translate-1/2 absolute -right-1 -top-1 hidden rounded-full group-hover:block"
+  return (
+    <Draggable
+      key={id}
+      axis="both"
+      onStart={dragAndDropFunction.handleDragStart}
+      onStop={dragAndDropFunction.handleDragEnd}
+      disabled={!isDraggable}
+      defaultClassNameDragging={"position-relative z-10 pointer-events-none"}
+      position={{ x: 0, y: 0 }}
+    >
+      <div className="group relative flex">
+        <Link
+          className={
+            "flex gap-2 rounded-md border border-border bg-background px-2 py-1 text-foreground hover:bg-foreground hover:text-background"
+          }
+          href={`/dashboard/tags/${id}`}
+          data-id={id}
         >
-          <X className="size-3" />
-        </Button>
-      </DeleteTagConfirmationDialog>
-    </div>
+          {name} <Separator orientation="vertical" /> {count}
+        </Link>
+
+        <DeleteTagConfirmationDialog tag={{ name, id }}>
+          <Button
+            size="none"
+            variant="secondary"
+            className="-translate-1/2 absolute -right-1 -top-1 hidden rounded-full group-hover:block"
+          >
+            <X className="size-3" />
+          </Button>
+        </DeleteTagConfirmationDialog>
+      </div>
+    </Draggable>
   );
 }
diff --git a/apps/web/lib/drag-and-drop.ts b/apps/web/lib/drag-and-drop.ts
index e005a6d0..ec37e810 100644
--- a/apps/web/lib/drag-and-drop.ts
+++ b/apps/web/lib/drag-and-drop.ts
@@ -1,31 +1,48 @@
 import React from "react";
-import { DraggableData, DraggableEvent } from "react-draggable";
+import { DraggableEvent } from "react-draggable";
+
+export interface DraggingState {
+  isDragging: boolean;
+  initialX: number;
+  initialY: number;
+}
 
 export function useDragAndDrop(
-  dragSourceIdAttribute: string,
   dragTargetIdAttribute: string,
-  onDragOver: (dragSourceId: string, dragTargetId: string) => void,
+  onDragOver: (dragTargetId: string) => void,
+  setDraggingState?: React.Dispatch<React.SetStateAction<DraggingState>>,
 ) {
-  const [dragSourceId, setDragSourceId] = React.useState<string | null>(null);
+  function findTargetId(element: HTMLElement): string | null {
+    let currentElement: HTMLElement | null = element;
+    while (currentElement) {
+      const listId = currentElement.getAttribute(dragTargetIdAttribute);
+      if (listId) {
+        return listId;
+      }
+      currentElement = currentElement.parentElement;
+    }
+    return null;
+  }
 
   const handleDragStart = React.useCallback(
-    (_e: DraggableEvent, { node }: DraggableData) => {
-      const id = node.getAttribute(dragSourceIdAttribute);
-      setDragSourceId(id);
+    (e: DraggableEvent) => {
+      const rect = (e.target as HTMLElement).getBoundingClientRect();
+      setDraggingState?.({
+        isDragging: true,
+        initialX: rect.x,
+        initialY: rect.y,
+      });
     },
-    [],
+    [setDraggingState],
   );
 
   const handleDragEnd = React.useCallback(
     (e: DraggableEvent) => {
       const { target } = e;
-      const dragTargetId = (target as HTMLElement).getAttribute(
-        dragTargetIdAttribute,
-      );
+      const dragTargetId = findTargetId(target as HTMLElement);
 
-      if (dragSourceId && dragTargetId && dragSourceId !== dragTargetId) {
-        /*
-          As Draggable tries to setState when the 
+      if (dragTargetId) {
+        /*          As Draggable tries to setState when the 
           component is unmounted, it is needed to
           push onCombine to the event loop queue.
           onCombine would be run after setState on
@@ -33,12 +50,16 @@ export function useDragAndDrop(
           they fix it on their end.
       */
         setTimeout(() => {
-          onDragOver(dragSourceId, dragTargetId);
+          onDragOver(dragTargetId);
         }, 0);
       }
-      setDragSourceId(null);
+      setDraggingState?.({
+        isDragging: false,
+        initialX: 0,
+        initialY: 0,
+      });
     },
-    [dragSourceId, onDragOver],
+    [onDragOver],
   );
 
   return {