diff --git a/src/managers/AllDayManager.ts b/src/managers/AllDayManager.ts
index 5e3c6cf..348ead1 100644
--- a/src/managers/AllDayManager.ts
+++ b/src/managers/AllDayManager.ts
@@ -128,10 +128,7 @@ export class AllDayManager {
         
         console.log('🔄 AllDayManager: All-day → timed conversion', { eventId });
 
-        // No need to filter currentLayouts - DOM is source of truth!
-        // The element is already removed from all-day container by DragDropManager
-
-        // Recalculate and animate header height based on remaining DOM elements
+        this.fadeOutAndRemove(dragEndPayload.originalElement);
         this.checkAndAnimateAllDayHeight();
       }
     });
@@ -183,13 +180,14 @@ export class AllDayManager {
 
   /**
    * Read current max row from DOM elements
+   * Excludes events marked as removing (data-removing attribute)
    */
   private getMaxRowFromDOM(): number {
     const container = this.getAllDayContainer();
     if (!container) return 0;
 
     let maxRow = 0;
-    const allDayEvents = container.querySelectorAll('swp-allday-event:not(.max-event-indicator)');
+    const allDayEvents = container.querySelectorAll('swp-allday-event:not(.max-event-indicator):not([data-removing])');
     
     allDayEvents.forEach((element: Element) => {
       const htmlElement = element as HTMLElement;
@@ -258,13 +256,6 @@ export class AllDayManager {
     return { targetHeight, currentHeight, heightDifference };
   }
 
-  /**
-   * Collapse all-day row when no events
-   */
-  public collapseAllDayRow(): void {
-    this.animateToRows(0);
-  }
-
   /**
    * Check current all-day events and animate to correct height
    * Reads max row directly from DOM elements
@@ -312,6 +303,8 @@ export class AllDayManager {
       willAnimate: displayRows !== this.actualRowCount
     });
 
+    console.log(`🎯 AllDayManager: Animating to ${displayRows} rows`);
+
     // Animate to required rows (0 = collapse, >0 = expand)
     this.animateToRows(displayRows);
   }
@@ -453,11 +446,20 @@ export class AllDayManager {
 
   }
   private fadeOutAndRemove(element: HTMLElement): void {
+    console.log('🗑️ AllDayManager: About to remove all-day event', {
+      eventId: element.dataset.eventId,
+      element: element.tagName
+    });
+    
+    // Mark element as removing so it's excluded from height calculations
+    element.setAttribute('data-removing', 'true');
+    
     element.style.transition = 'opacity 0.3s ease-out';
     element.style.opacity = '0';
 
     setTimeout(() => {
       element.remove();
+      console.log('✅ AllDayManager: All-day event removed from DOM');
     }, 300);
   }
 
diff --git a/src/renderers/EventRenderer.ts b/src/renderers/EventRenderer.ts
index 5d21b31..694d10b 100644
--- a/src/renderers/EventRenderer.ts
+++ b/src/renderers/EventRenderer.ts
@@ -172,8 +172,11 @@ export class DateEventRenderer implements IEventRenderer {
       return;
     }
 
-    // Fade out original
-    this.fadeOutAndRemove(originalElement);
+    // Only fade out and remove if it's a swp-event (not swp-allday-event)
+    // AllDayManager handles removal of swp-allday-event elements
+    if (originalElement.tagName === 'SWP-EVENT') {
+      this.fadeOutAndRemove(originalElement);
+    }
 
     // Remove clone prefix and normalize clone to be a regular event
     const cloneId = draggedClone.dataset.eventId;