diff --git a/apps/array/src/renderer/features/panels/hooks/useDragDropHandlers.ts b/apps/array/src/renderer/features/panels/hooks/useDragDropHandlers.ts
index c60bf7c3..a0b57ca0 100644
--- a/apps/array/src/renderer/features/panels/hooks/useDragDropHandlers.ts
+++ b/apps/array/src/renderer/features/panels/hooks/useDragDropHandlers.ts
@@ -67,32 +67,50 @@ export const useDragDropHandlers = (taskId: string) => {
     const sourceData = event.operation.source?.data;
     const targetData = event.operation.target?.data;
 
-    // Tab reordering within same panel is handled by onDragOver
-    // Here we only handle cross-panel moves and splits
-
-    // Handle panel splitting/moving
     if (
       sourceData?.type !== "tab" ||
-      targetData?.type !== "panel" ||
       !sourceData.tabId ||
-      !sourceData.panelId ||
-      !targetData.panelId ||
-      !targetData.zone
+      !sourceData.panelId
     ) {
       return;
     }
 
     const { tabId, panelId: sourcePanelId } = sourceData;
-    const { panelId: targetPanelId, zone } = targetData;
-
-    if (zone === "center") {
-      moveTab(taskId, tabId, sourcePanelId, targetPanelId);
-      setFocusedPanel(taskId, targetPanelId);
-    } else if (isSplitDirection(zone)) {
-      splitPanel(taskId, tabId, sourcePanelId, targetPanelId, zone);
-      // For splits, the new panel gets a generated ID, so we can't easily focus it here
-      // The target panel remains focused which is reasonable behavior
-      setFocusedPanel(taskId, targetPanelId);
+
+    // Handle drop on panel drop zones (center or split directions)
+    if (targetData?.type === "panel" && targetData.panelId && targetData.zone) {
+      const { panelId: targetPanelId, zone } = targetData;
+
+      if (zone === "center") {
+        moveTab(taskId, tabId, sourcePanelId, targetPanelId);
+        setFocusedPanel(taskId, targetPanelId);
+      } else if (isSplitDirection(zone)) {
+        splitPanel(taskId, tabId, sourcePanelId, targetPanelId, zone);
+        setFocusedPanel(taskId, targetPanelId);
+      }
+      return;
+    }
+
+    // Handle drop on tab bar (cross-panel move)
+    if (
+      targetData?.type === "tab-bar" &&
+      targetData.panelId &&
+      targetData.panelId !== sourcePanelId
+    ) {
+      moveTab(taskId, tabId, sourcePanelId, targetData.panelId);
+      setFocusedPanel(taskId, targetData.panelId);
+      return;
+    }
+
+    // Handle drop on another tab in a different panel (cross-panel move)
+    if (
+      targetData?.type === "tab" &&
+      targetData.panelId &&
+      targetData.panelId !== sourcePanelId
+    ) {
+      moveTab(taskId, tabId, sourcePanelId, targetData.panelId);
+      setFocusedPanel(taskId, targetData.panelId);
+      return;
     }
   };
 
diff --git a/apps/array/src/renderer/features/panels/store/panelLayoutStore.test.ts b/apps/array/src/renderer/features/panels/store/panelLayoutStore.test.ts
index 153baa57..5d748c08 100644
--- a/apps/array/src/renderer/features/panels/store/panelLayoutStore.test.ts
+++ b/apps/array/src/renderer/features/panels/store/panelLayoutStore.test.ts
@@ -512,6 +512,53 @@ describe("panelLayoutStore", () => {
       const updatedMainPanel = getNestedPanel("task-1", 0);
       expect(updatedMainPanel.type).toBe("leaf");
     });
+
+    it("removes split pane when moving its only tab to another pane", () => {
+      // Create a split: main-panel becomes a group with [original, new-panel]
+      usePanelLayoutStore
+        .getState()
+        .splitPanel(
+          "task-1",
+          "file-src/App.tsx",
+          "main-panel",
+          "main-panel",
+          "right",
+        );
+
+      // Verify we have a split with 2 panels
+      const mainPanelNode = getNestedPanel("task-1", 0);
+      expect(mainPanelNode.type).toBe("group");
+      if (mainPanelNode.type !== "group") return;
+      expect(mainPanelNode.children).toHaveLength(2);
+
+      // Get the new panel (contains file-src/App.tsx)
+      const newPanel = mainPanelNode.children[1];
+      expect(newPanel.type).toBe("leaf");
+      if (newPanel.type !== "leaf") return;
+
+      // Original panel (contains logs and file-src/Other.tsx)
+      const originalPanel = mainPanelNode.children[0];
+      expect(originalPanel.type).toBe("leaf");
+      if (originalPanel.type !== "leaf") return;
+
+      // Move the tab from the new panel back to the original panel
+      usePanelLayoutStore
+        .getState()
+        .moveTab("task-1", "file-src/App.tsx", newPanel.id, originalPanel.id);
+
+      // The split should be collapsed since new panel is now empty
+      const updatedMainPanel = getNestedPanel("task-1", 0);
+      expect(updatedMainPanel.type).toBe("leaf");
+
+      // The tab should now be in the original panel
+      if (updatedMainPanel.type === "leaf") {
+        expect(
+          updatedMainPanel.content.tabs.some(
+            (t) => t.id === "file-src/App.tsx",
+          ),
+        ).toBe(true);
+      }
+    });
   });
 
   describe("preview tabs", () => {