diff --git a/src/v2/features/headerdrawer/HeaderDrawerRenderer.ts b/src/v2/features/headerdrawer/HeaderDrawerRenderer.ts
index 9927f29..5fed51b 100644
--- a/src/v2/features/headerdrawer/HeaderDrawerRenderer.ts
+++ b/src/v2/features/headerdrawer/HeaderDrawerRenderer.ts
@@ -218,8 +218,10 @@ export class HeaderDrawerRenderer {
     // Remember if drawer was already expanded
     this.wasExpandedBeforeDrag = this.headerDrawerManager.isExpanded();
 
-    // Expand drawer with animation
-    this.headerDrawerManager.expand();
+    // Expand to at least 1 row if collapsed, otherwise keep current height
+    if (!this.wasExpandedBeforeDrag) {
+      this.headerDrawerManager.expandToRows(1);
+    }
 
     // Store reference to source element
     this.sourceElement = payload.element;
@@ -228,10 +230,16 @@ export class HeaderDrawerRenderer {
     const item = document.createElement('swp-header-item');
     item.dataset.eventId = payload.eventId;
     item.dataset.itemType = payload.itemType;
-    item.dataset.date = payload.sourceDate;
     item.dataset.duration = String(payload.duration);
     item.textContent = payload.title;
 
+    // Set start/end as ISO dates (for recalculateDrawerLayout)
+    const startDate = new Date(payload.sourceDate);
+    const endDate = new Date(payload.sourceDate);
+    endDate.setDate(endDate.getDate() + payload.duration - 1);
+    item.dataset.start = startDate.toISOString();
+    item.dataset.end = endDate.toISOString();
+
     // Apply color class if present
     if (payload.colorClass) {
       item.classList.add(payload.colorClass);
@@ -259,13 +267,19 @@ export class HeaderDrawerRenderer {
   private handleDragMove(payload: IDragMoveHeaderPayload): void {
     if (!this.currentItem) return;
 
-    // Update column position (duration=1 for now)
+    // Update column position
     const col = payload.columnIndex + 1;
     const duration = parseInt(this.currentItem.dataset.duration || '1', 10);
     const endCol = col + duration;
 
     this.currentItem.style.gridArea = `1 / ${col} / 2 / ${endCol}`;
-    this.currentItem.dataset.date = payload.dateKey;
+
+    // Update start/end dates based on new position
+    const startDate = new Date(payload.dateKey);
+    const endDate = new Date(payload.dateKey);
+    endDate.setDate(endDate.getDate() + duration - 1);
+    this.currentItem.dataset.start = startDate.toISOString();
+    this.currentItem.dataset.end = endDate.toISOString();
   }
 
   /**
@@ -286,13 +300,74 @@ export class HeaderDrawerRenderer {
     // Remove dragging state
     this.currentItem.classList.remove('dragging');
 
-    // TODO: Emit event to persist allDay=true change
+    // Recalculate layout for all items in drawer
+    this.recalculateDrawerLayout();
 
     // Clear references
     this.currentItem = null;
     this.sourceElement = null;
   }
 
+  /**
+   * Recalculate layout for all items currently in the drawer
+   * Called after drop to reposition items and adjust height
+   */
+  private recalculateDrawerLayout(): void {
+    const drawer = document.querySelector('swp-header-drawer');
+    if (!drawer) return;
+
+    const items = Array.from(drawer.querySelectorAll('swp-header-item')) as HTMLElement[];
+    if (items.length === 0) return;
+
+    // Get visible dates from existing items
+    const visibleDates = this.getVisibleDatesFromDOM();
+    if (visibleDates.length === 0) return;
+
+    // Build layout data from DOM items
+    const itemData = items.map(item => ({
+      element: item,
+      start: new Date(item.dataset.start || ''),
+      end: new Date(item.dataset.end || '')
+    }));
+
+    // Calculate new layout using track algorithm
+    const tracks: boolean[][] = [new Array(visibleDates.length).fill(false)];
+
+    for (const item of itemData) {
+      const startCol = this.getColIndex(item.start, visibleDates);
+      const endCol = this.getColIndex(item.end, visibleDates);
+
+      const colStart = Math.max(0, startCol);
+      const colEnd = (endCol !== -1 ? endCol : visibleDates.length - 1) + 1;
+
+      const row = this.findAvailableRow(tracks, colStart, colEnd);
+
+      for (let c = colStart; c < colEnd; c++) {
+        tracks[row][c] = true;
+      }
+
+      // Update element position
+      item.element.style.gridArea = `${row + 1} / ${colStart + 1} / ${row + 2} / ${colEnd + 1}`;
+    }
+
+    // Update drawer height
+    const rowCount = tracks.length;
+    this.headerDrawerManager.expandToRows(rowCount);
+  }
+
+  /**
+   * Get visible dates from header columns in DOM
+   */
+  private getVisibleDatesFromDOM(): string[] {
+    const columns = document.querySelectorAll('swp-day-column');
+    const dates: string[] = [];
+    columns.forEach(col => {
+      const date = (col as HTMLElement).dataset.date;
+      if (date && !dates.includes(date)) dates.push(date);
+    });
+    return dates;
+  }
+
   /**
    * Cleanup preview item and restore source visibility
    */
diff --git a/wwwroot/css/v2/calendar-v2-layout.css b/wwwroot/css/v2/calendar-v2-layout.css
index 7edd7ab..45fe8af 100644
--- a/wwwroot/css/v2/calendar-v2-layout.css
+++ b/wwwroot/css/v2/calendar-v2-layout.css
@@ -77,9 +77,6 @@ swp-header-drawer {
   grid-template-columns: subgrid;
   grid-column: 1 / -1;
   grid-row: 2;
-  grid-auto-rows: 28px;
-  gap: 2px 0;
-  height: 0;
   overflow: hidden;
   background: var(--color-background-alt);
   border-bottom: 1px solid var(--color-border);