diff --git a/assets/settings/default.json b/assets/settings/default.json
index f0b9e11e57..804198090f 100644
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -653,6 +653,8 @@
       //    "never"
       "show": "always"
     },
+    // Whether to enable drag-and-drop operations in the project panel.
+    "drag_and_drop": true,
     // Whether to hide the root entry when only one folder is open in the window.
     "hide_root": false
   },
diff --git a/crates/project_panel/src/project_panel.rs b/crates/project_panel/src/project_panel.rs
index c99f5f8172..5a30a3e9bc 100644
--- a/crates/project_panel/src/project_panel.rs
+++ b/crates/project_panel/src/project_panel.rs
@@ -4089,6 +4089,7 @@ impl ProjectPanel {
             .when(!is_sticky, |this| {
                 this
                 .when(is_highlighted && folded_directory_drag_target.is_none(), |this| this.border_color(transparent_white()).bg(item_colors.drag_over))
+                .when(settings.drag_and_drop, |this| this
                 .on_drag_move::<ExternalPaths>(cx.listener(
                     move |this, event: &DragMoveEvent<ExternalPaths>, _, cx| {
                         let is_current_target = this.drag_target_entry.as_ref()
@@ -4222,7 +4223,7 @@ impl ProjectPanel {
                         }
                         this.drag_onto(selections, entry_id, kind.is_file(), window, cx);
                     }),
-                )
+                ))
             })
             .on_mouse_down(
                 MouseButton::Left,
@@ -4433,6 +4434,7 @@ impl ProjectPanel {
                                                     div()
                                                     .when(!is_sticky, |div| {
                                                         div
+                                                            .when(settings.drag_and_drop, |div| div
                                                             .on_drop(cx.listener(move |this, selections: &DraggedSelection, window, cx| {
                                                             this.hover_scroll_task.take();
                                                             this.drag_target_entry = None;
@@ -4464,7 +4466,7 @@ impl ProjectPanel {
                                                                 }
 
                                                             },
-                                                        ))
+                                                        )))
                                                     })
                                                     .child(
                                                         Label::new(DELIMITER.clone())
@@ -4484,6 +4486,7 @@ impl ProjectPanel {
                                                 .when(index != components_len - 1, |div|{
                                                     let target_entry_id = folded_ancestors.ancestors.get(components_len - 1 - index).cloned();
                                                     div
+                                                    .when(settings.drag_and_drop, |div| div
                                                     .on_drag_move(cx.listener(
                                                         move |this, event: &DragMoveEvent<DraggedSelection>, _, _| {
                                                         if event.bounds.contains(&event.event.position) {
@@ -4521,7 +4524,7 @@ impl ProjectPanel {
                                                         target.index == index
                                                     ), |this| {
                                                         this.bg(item_colors.drag_over)
-                                                    })
+                                                    }))
                                                 })
                                             })
                                             .on_click(cx.listener(move |this, _, _, cx| {
@@ -5029,7 +5032,8 @@ impl ProjectPanel {
 
         sticky_parents.reverse();
 
-        let git_status_enabled = ProjectPanelSettings::get_global(cx).git_status;
+        let panel_settings = ProjectPanelSettings::get_global(cx);
+        let git_status_enabled = panel_settings.git_status;
         let root_name = OsStr::new(worktree.root_name());
 
         let git_summaries_by_id = if git_status_enabled {
@@ -5113,11 +5117,11 @@ impl Render for ProjectPanel {
     fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
         let has_worktree = !self.visible_entries.is_empty();
         let project = self.project.read(cx);
-        let indent_size = ProjectPanelSettings::get_global(cx).indent_size;
-        let show_indent_guides =
-            ProjectPanelSettings::get_global(cx).indent_guides.show == ShowIndentGuides::Always;
+        let panel_settings = ProjectPanelSettings::get_global(cx);
+        let indent_size = panel_settings.indent_size;
+        let show_indent_guides = panel_settings.indent_guides.show == ShowIndentGuides::Always;
         let show_sticky_entries = {
-            if ProjectPanelSettings::get_global(cx).sticky_scroll {
+            if panel_settings.sticky_scroll {
                 let is_scrollable = self.scroll_handle.is_scrollable();
                 let is_scrolled = self.scroll_handle.offset().y < px(0.);
                 is_scrollable && is_scrolled
@@ -5205,8 +5209,10 @@ impl Render for ProjectPanel {
             h_flex()
                 .id("project-panel")
                 .group("project-panel")
-                .on_drag_move(cx.listener(handle_drag_move::<ExternalPaths>))
-                .on_drag_move(cx.listener(handle_drag_move::<DraggedSelection>))
+                .when(panel_settings.drag_and_drop, |this| {
+                    this.on_drag_move(cx.listener(handle_drag_move::<ExternalPaths>))
+                        .on_drag_move(cx.listener(handle_drag_move::<DraggedSelection>))
+                })
                 .size_full()
                 .relative()
                 .on_modifiers_changed(cx.listener(
@@ -5544,30 +5550,32 @@ impl Render for ProjectPanel {
                         })),
                 )
                 .when(is_local, |div| {
-                    div.drag_over::<ExternalPaths>(|style, _, _, cx| {
-                        style.bg(cx.theme().colors().drop_target_background)
+                    div.when(panel_settings.drag_and_drop, |div| {
+                        div.drag_over::<ExternalPaths>(|style, _, _, cx| {
+                            style.bg(cx.theme().colors().drop_target_background)
+                        })
+                        .on_drop(cx.listener(
+                            move |this, external_paths: &ExternalPaths, window, cx| {
+                                this.drag_target_entry = None;
+                                this.hover_scroll_task.take();
+                                if let Some(task) = this
+                                    .workspace
+                                    .update(cx, |workspace, cx| {
+                                        workspace.open_workspace_for_paths(
+                                            true,
+                                            external_paths.paths().to_owned(),
+                                            window,
+                                            cx,
+                                        )
+                                    })
+                                    .log_err()
+                                {
+                                    task.detach_and_log_err(cx);
+                                }
+                                cx.stop_propagation();
+                            },
+                        ))
                     })
-                    .on_drop(cx.listener(
-                        move |this, external_paths: &ExternalPaths, window, cx| {
-                            this.drag_target_entry = None;
-                            this.hover_scroll_task.take();
-                            if let Some(task) = this
-                                .workspace
-                                .update(cx, |workspace, cx| {
-                                    workspace.open_workspace_for_paths(
-                                        true,
-                                        external_paths.paths().to_owned(),
-                                        window,
-                                        cx,
-                                    )
-                                })
-                                .log_err()
-                            {
-                                task.detach_and_log_err(cx);
-                            }
-                            cx.stop_propagation();
-                        },
-                    ))
                 })
         }
     }
diff --git a/crates/project_panel/src/project_panel_settings.rs b/crates/project_panel/src/project_panel_settings.rs
index 8a243589ed..fc399d66a7 100644
--- a/crates/project_panel/src/project_panel_settings.rs
+++ b/crates/project_panel/src/project_panel_settings.rs
@@ -47,6 +47,7 @@ pub struct ProjectPanelSettings {
     pub scrollbar: ScrollbarSettings,
     pub show_diagnostics: ShowDiagnostics,
     pub hide_root: bool,
+    pub drag_and_drop: bool,
 }
 
 #[derive(Copy, Clone, Debug, Serialize, Deserialize, JsonSchema, PartialEq, Eq)]
@@ -160,6 +161,10 @@ pub struct ProjectPanelSettingsContent {
     ///
     /// Default: true
     pub sticky_scroll: Option<bool>,
+    /// Whether to enable drag-and-drop operations in the project panel.
+    ///
+    /// Default: true
+    pub drag_and_drop: Option<bool>,
 }
 
 impl Settings for ProjectPanelSettings {
diff --git a/docs/src/configuring-zed.md b/docs/src/configuring-zed.md
index fb139db6e4..a8a4689689 100644
--- a/docs/src/configuring-zed.md
+++ b/docs/src/configuring-zed.md
@@ -3243,6 +3243,7 @@ Run the `theme selector: toggle` action in the command palette to see a current
     "indent_size": 20,
     "auto_reveal_entries": true,
     "auto_fold_dirs": true,
+    "drag_and_drop": true,
     "scrollbar": {
       "show": null
     },
diff --git a/docs/src/visual-customization.md b/docs/src/visual-customization.md
index 24b2a9d769..4fc5a9ba88 100644
--- a/docs/src/visual-customization.md
+++ b/docs/src/visual-customization.md
@@ -431,6 +431,7 @@ Project panel can be shown/hidden with {#action project_panel::ToggleFocus} ({#k
     "auto_reveal_entries": true,    // Show file in panel when activating its buffer
     "auto_fold_dirs": true,         // Fold dirs with single subdir
     "sticky_scroll": true,          // Stick parent directories at top of the project panel.
+    "drag_and_drop": true,          // Whether drag and drop is enabled
     "scrollbar": {                  // Project panel scrollbar settings
       "show": null                  // Show/hide: (auto, system, always, never)
     },