diff --git a/src/elements/SwpEventElement.ts b/src/elements/SwpEventElement.ts
index 6f79e60..05c55a8 100644
--- a/src/elements/SwpEventElement.ts
+++ b/src/elements/SwpEventElement.ts
@@ -333,7 +333,7 @@ export class SwpAllDayEventElement extends BaseSwpEventElement {
     element.dataset.start = dateService.toUTC(event.start);
     element.dataset.end = dateService.toUTC(event.end);
     element.dataset.type = event.type;
-    element.dataset.allDay = 'true';
+    element.dataset.allday = 'true';
     element.textContent = event.title;
 
     return element;
diff --git a/src/managers/AllDayManager.ts b/src/managers/AllDayManager.ts
index 7dce7db..1752700 100644
--- a/src/managers/AllDayManager.ts
+++ b/src/managers/AllDayManager.ts
@@ -6,6 +6,7 @@ import { AllDayEventRenderer } from '../renderers/AllDayEventRenderer';
 import { AllDayLayoutEngine, EventLayout } from '../utils/AllDayLayoutEngine';
 import { ColumnBounds, ColumnDetectionUtils } from '../utils/ColumnDetectionUtils';
 import { CalendarEvent } from '../types/CalendarTypes';
+import { SwpAllDayEventElement } from '../elements/SwpEventElement';
 import {
   DragMouseEnterHeaderEventPayload,
   DragStartEventPayload,
@@ -312,20 +313,19 @@ export class AllDayManager {
 
   }
 
-  /**
-   * Handle conversion of timed event to all-day event - SIMPLIFIED
-   * During drag: Place in row 1 only, calculate column from targetDate
-   */
   private handleConvertToAllDay(payload: DragMouseEnterHeaderEventPayload): void {
 
     let allDayContainer = this.getAllDayContainer();
+    if (!allDayContainer) return;
 
-    payload.draggedClone.removeAttribute('style');
-    payload.draggedClone.style.gridRow = '1';
-    payload.draggedClone.style.gridColumn = payload.targetColumn.index.toString();
-    payload.draggedClone.dataset.allday = 'true';
+    const allDayElement = SwpAllDayEventElement.fromCalendarEvent(payload.calendarEvent);
 
-    allDayContainer?.appendChild(payload.draggedClone);
+    // Apply grid positioning
+    allDayElement.style.gridRow = '1';
+    allDayElement.style.gridColumn = payload.targetColumn.index.toString();
+  
+    payload.draggedClone.remove();
+    allDayContainer.appendChild(allDayElement);
 
     ColumnDetectionUtils.updateColumnBoundsCache();
 
diff --git a/src/managers/DragDropManager.ts b/src/managers/DragDropManager.ts
index e91b250..4eff03e 100644
--- a/src/managers/DragDropManager.ts
+++ b/src/managers/DragDropManager.ts
@@ -495,11 +495,15 @@ export class DragDropManager {
       if (targetColumn) {
         console.log('🎯 DragDropManager: Emitting drag:mouseenter-header', { targetDate: targetColumn });
 
+        // Extract CalendarEvent from the dragged clone
+        const calendarEvent = SwpEventElement.extractCalendarEventFromElement(this.draggedClone!!);
+
         const dragMouseEnterPayload: DragMouseEnterHeaderEventPayload = {
           targetColumn: targetColumn,
           mousePosition: { x: event.clientX, y: event.clientY },
           originalElement: this.draggedElement,
-          draggedClone: this.draggedClone!!
+          draggedClone: this.draggedClone!!,
+          calendarEvent: calendarEvent
         };
         this.eventBus.emit('drag:mouseenter-header', dragMouseEnterPayload);
       }
diff --git a/src/types/EventTypes.ts b/src/types/EventTypes.ts
index 07b222a..f2b6a25 100644
--- a/src/types/EventTypes.ts
+++ b/src/types/EventTypes.ts
@@ -3,6 +3,7 @@
  */
 
 import { ColumnBounds } from "../utils/ColumnDetectionUtils";
+import { CalendarEvent } from "./CalendarTypes";
 
 export interface AllDayEvent {
   id: string;
@@ -82,6 +83,7 @@ export interface DragMouseEnterHeaderEventPayload {
   mousePosition: MousePosition;
   originalElement: HTMLElement | null;
   draggedClone: HTMLElement;
+  calendarEvent: CalendarEvent;
 }
 
 // Drag mouse leave header event payload