diff --git a/src/managers/AllDayManager.ts b/src/managers/AllDayManager.ts
index 24047c1..c24b67b 100644
--- a/src/managers/AllDayManager.ts
+++ b/src/managers/AllDayManager.ts
@@ -116,12 +116,19 @@ export class AllDayManager {
       });
 
       // Handle all-day → all-day drops (within header)
-      if (dragEndPayload.target === 'swp-day-header') {
+      if (dragEndPayload.target === 'swp-day-header' && dragEndPayload.originalElement?.hasAttribute('data-allday')) {
         console.log('✅ AllDayManager: Handling all-day → all-day drop');
         this.handleDragEnd(dragEndPayload);
         return;
       }
 
+      // Handle timed → all-day conversion (dropped in header)
+      if (dragEndPayload.target === 'swp-day-header' && !dragEndPayload.originalElement?.hasAttribute('data-allday')) {
+        console.log('🔄 AllDayManager: Timed → all-day conversion on drop');
+        this.handleTimedToAllDayDrop(dragEndPayload);
+        return;
+      }
+
       // Handle all-day → timed conversion (dropped in column)
       if (dragEndPayload.target === 'swp-day-column' && dragEndPayload.originalElement?.hasAttribute('data-allday')) {
         const eventId = dragEndPayload.originalElement.dataset.eventId;
@@ -474,130 +481,94 @@ export class AllDayManager {
   }
 
 
-  private async handleDragEnd(dragEndEvent: IDragEndEventPayload): Promise<void> {
-
-    const getEventDurationDays = (start: string | undefined, end: string | undefined): number => {
-
-      if (!start || !end)
-        throw new Error('Undefined start or end - date');
-
-      const startDate = new Date(start);
-      const endDate = new Date(end);
-
-      if (isNaN(startDate.getTime()) || isNaN(endDate.getTime())) {
-        throw new Error('Ugyldig start eller slut-dato i dataset');
-      }
-
-      // Use differenceInCalendarDays for proper calendar day calculation
-      // This correctly handles timezone differences and DST changes
-      return differenceInCalendarDays(endDate, startDate);
-    };
-
-    if (dragEndEvent.draggedClone == null)
-      return;
-
-    // 2. Normalize clone ID
-    dragEndEvent.draggedClone.dataset.eventId = dragEndEvent.draggedClone.dataset.eventId?.replace('clone-', '');
-    dragEndEvent.draggedClone.style.pointerEvents = ''; // Re-enable pointer events
-    dragEndEvent.originalElement.dataset.eventId += '_';
-
-    let eventId = dragEndEvent.draggedClone.dataset.eventId;
-    let eventDate = dragEndEvent.finalPosition.column?.date;
-    let eventType = dragEndEvent.draggedClone.dataset.type;
-
-    if (eventDate == null || eventId == null || eventType == null)
-      return;
-
-    const durationDays = getEventDurationDays(dragEndEvent.draggedClone.dataset.start, dragEndEvent.draggedClone.dataset.end);
-
-    // Get original dates to preserve time
-    const originalStartDate = new Date(dragEndEvent.draggedClone.dataset.start!);
-    const originalEndDate = new Date(dragEndEvent.draggedClone.dataset.end!);
-
-    // Create new start date with the new day but preserve original time
-    const newStartDate = new Date(eventDate);
-    newStartDate.setHours(originalStartDate.getHours(), originalStartDate.getMinutes(), originalStartDate.getSeconds(), originalStartDate.getMilliseconds());
-
-    // Create new end date with the new day + duration, preserving original end time
-    const newEndDate = new Date(eventDate);
-    newEndDate.setDate(newEndDate.getDate() + durationDays);
-    newEndDate.setHours(originalEndDate.getHours(), originalEndDate.getMinutes(), originalEndDate.getSeconds(), originalEndDate.getMilliseconds());
-
-    // Update data attributes with new dates (convert to UTC)
-    dragEndEvent.draggedClone.dataset.start = this.dateService.toUTC(newStartDate);
-    dragEndEvent.draggedClone.dataset.end = this.dateService.toUTC(newEndDate);
-
-    const droppedEvent: ICalendarEvent = {
+  /**
+   * Handle timed → all-day conversion on drop
+   */
+  private async handleTimedToAllDayDrop(dragEndEvent: IDragEndEventPayload): Promise<void> {
+    if (!dragEndEvent.draggedClone || !dragEndEvent.finalPosition.column) return;
+    
+    const clone = dragEndEvent.draggedClone as SwpAllDayEventElement;
+    const eventId = clone.eventId.replace('clone-', '');
+    const targetDate = dragEndEvent.finalPosition.column.date;
+    
+    console.log('🔄 AllDayManager: Converting timed event to all-day', { eventId, targetDate });
+    
+    // Create new dates preserving time
+    const newStart = new Date(targetDate);
+    newStart.setHours(clone.start.getHours(), clone.start.getMinutes(), 0, 0);
+    
+    const newEnd = new Date(targetDate);
+    newEnd.setHours(clone.end.getHours(), clone.end.getMinutes(), 0, 0);
+    
+    // Update event in repository
+    await this.eventManager.updateEvent(eventId, {
+      start: newStart,
+      end: newEnd,
+      allDay: true
+    });
+    
+    // Remove original timed event
+    this.fadeOutAndRemove(dragEndEvent.originalElement);
+    
+    // Add to current all-day events and recalculate layout
+    const newEvent: ICalendarEvent = {
       id: eventId,
-      title: dragEndEvent.draggedClone.dataset.title || '',
-      start: newStartDate,
-      end: newEndDate,
-      type: eventType,
+      title: clone.title,
+      start: newStart,
+      end: newEnd,
+      type: clone.type,
       allDay: true,
       syncStatus: 'synced'
     };
+    
+    const updatedEvents = [...this.currentAllDayEvents, newEvent];
+    const newLayouts = this.calculateAllDayEventsLayout(updatedEvents, this.currentWeekDates);
+    this.allDayEventRenderer.renderAllDayEventsForPeriod(newLayouts);
+    
+    // Animate height
+    this.checkAndAnimateAllDayHeight();
+  }
 
-    // Use current events + dropped event for calculation
-    const tempEvents = [
-      ...this.currentAllDayEvents.filter(event => event.id !== eventId),
-      droppedEvent
-    ];
-
-    // 4. Calculate new layouts for ALL events
-    const newLayouts = this.calculateAllDayEventsLayout(tempEvents, this.currentWeekDates);
-
-    // 5. Apply differential updates - compare with DOM instead of currentLayouts
-    let container = this.getAllDayContainer();
-    newLayouts.forEach((layout) => {
-      // Get current gridArea from DOM
-      const currentGridArea = this.getGridAreaFromDOM(layout.calenderEvent.id);
-
-      if (currentGridArea !== layout.gridArea) {
-        let element = container?.querySelector(`[data-event-id="${layout.calenderEvent.id}"]`) as HTMLElement;
-        if (element) {
-
-          element.classList.add('transitioning');
-          element.style.gridArea = layout.gridArea;
-          element.style.gridRow = layout.row.toString();
-          element.style.gridColumn = `${layout.startColumn} / ${layout.endColumn + 1}`;
-
-          element.classList.remove('max-event-overflow-hide');
-          element.classList.remove('max-event-overflow-show');
-
-          if (layout.row > ALL_DAY_CONSTANTS.MAX_COLLAPSED_ROWS)
-            if (!this.isExpanded)
-              element.classList.add('max-event-overflow-hide');
-            else
-              element.classList.add('max-event-overflow-show');
-
-          // Remove transition class after animation
-          setTimeout(() => element.classList.remove('transitioning'), 200);
-        }
-      }
-    });
-
-    // 6. Clean up drag styles from the dropped clone
-    dragEndEvent.draggedClone.classList.remove('dragging');
-    dragEndEvent.draggedClone.style.zIndex = '';
-    dragEndEvent.draggedClone.style.cursor = '';
-    dragEndEvent.draggedClone.style.opacity = '';
-
-    // 7. Apply highlight class to show the dropped event with highlight color
-    dragEndEvent.draggedClone.classList.add('highlight');
-
-    // 8. CRITICAL FIX: Update event in repository to mark as allDay=true
-    // This ensures EventManager's repository has correct state
-    // Without this, the event will reappear in grid on re-render
+  /**
+   * Handle all-day → all-day drop (moving within header)
+   */
+  private async handleDragEnd(dragEndEvent: IDragEndEventPayload): Promise<void> {
+    if (!dragEndEvent.draggedClone || !dragEndEvent.finalPosition.column) return;
+    
+    const clone = dragEndEvent.draggedClone as SwpAllDayEventElement;
+    const eventId = clone.eventId.replace('clone-', '');
+    const targetDate = dragEndEvent.finalPosition.column.date;
+    
+    // Calculate duration in days
+    const durationDays = differenceInCalendarDays(clone.end, clone.start);
+    
+    // Create new dates preserving time
+    const newStart = new Date(targetDate);
+    newStart.setHours(clone.start.getHours(), clone.start.getMinutes(), 0, 0);
+    
+    const newEnd = new Date(targetDate);
+    newEnd.setDate(newEnd.getDate() + durationDays);
+    newEnd.setHours(clone.end.getHours(), clone.end.getMinutes(), 0, 0);
+    
+    // Update event in repository
     await this.eventManager.updateEvent(eventId, {
-      start: newStartDate,
-      end: newEndDate,
+      start: newStart,
+      end: newEnd,
       allDay: true
     });
-
+    
+    // Remove original and fade out
     this.fadeOutAndRemove(dragEndEvent.originalElement);
-
+    
+    // Recalculate and re-render ALL events
+    const updatedEvents = this.currentAllDayEvents.map(e =>
+      e.id === eventId ? { ...e, start: newStart, end: newEnd } : e
+    );
+    const newLayouts = this.calculateAllDayEventsLayout(updatedEvents, this.currentWeekDates);
+    this.allDayEventRenderer.renderAllDayEventsForPeriod(newLayouts);
+    
+    // Animate height - this also handles overflow classes!
     this.checkAndAnimateAllDayHeight();
-
   }
 
   /**