diff --git a/crates/workspace/src/pane/dragged_item_receiver.rs b/crates/workspace/src/pane/dragged_item_receiver.rs
index 7a71bfe0e5..b110252250 100644
--- a/crates/workspace/src/pane/dragged_item_receiver.rs
+++ b/crates/workspace/src/pane/dragged_item_receiver.rs
@@ -118,6 +118,7 @@ pub fn handle_dropped_item(
     {
         Action::Open(*project_entry)
     } else {
+        cx.propagate_event();
         return;
     };