diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
index 97989baf3..5f7de14b2 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
@@ -7,6 +7,7 @@ import { IconChevronRight, IconDots } from '@tabler/icons';
 import { useSelector, useDispatch } from 'react-redux';
 import { addTab, focusTab } from 'providers/ReduxStore/slices/tabs';
 import { collectionFolderClicked } from 'providers/ReduxStore/slices/collections';
+import { moveItem } from 'providers/ReduxStore/slices/collections/actions';
 import Dropdown from 'components/Dropdown';
 import NewRequest from 'components/Sidebar/NewRequest';
 import NewFolder from 'components/Sidebar/NewFolder';
@@ -26,23 +27,6 @@ const CollectionItem = ({ item, collection, searchText }) => {
   const activeTabUid = useSelector((state) => state.tabs.activeTabUid);
   const isSidebarDragging = useSelector((state) => state.app.isDragging);
   const dispatch = useDispatch();
-  const ref = useRef(null)
-
-  const [{isDragging}, drag] = useDrag(() => ({
-    type: 'collection-item',
-    collect: monitor => ({
-      isDragging: !!monitor.isDragging(),
-    })
-  }));
-  const [{ isOver, canDrop }, drop] = useDrop({
-    accept: 'collection-item',
-    drop: () => console.log('dropped'),
-    canDrop: () => true,
-    collect: monitor => ({
-      isOver: !!monitor.isOver(),
-      canDrop: !!monitor.canDrop()
-    }),
-  });
 
   const [renameItemModalOpen, setRenameItemModalOpen] = useState(false);
   const [cloneItemModalOpen, setCloneItemModalOpen] = useState(false);
@@ -51,6 +35,29 @@ const CollectionItem = ({ item, collection, searchText }) => {
   const [newFolderModalOpen, setNewFolderModalOpen] = useState(false);
   const [itemIsCollapsed, setItemisCollapsed] = useState(item.collapsed);
 
+  const [{ isDragging }, drag] = useDrag({
+    type: 'COLLECTION_ITEM',
+    item: item,
+    collect: (monitor) => ({
+      isDragging: monitor.isDragging()
+    })
+  });
+
+  const [{ isOver }, drop] = useDrop({
+    accept: 'COLLECTION_ITEM',
+    drop: (draggedItem) => {
+      if (draggedItem.uid !== item.uid) {
+        dispatch(moveItem(collection.uid, draggedItem.uid, item.uid));
+      }
+    },
+    canDrop: (draggedItem) => {
+      return draggedItem.id !== item.uid;
+    },
+    collect: (monitor) => ({
+      isOver: monitor.isOver()
+    })
+  });
+
   useEffect(() => {
     if (searchText && searchText.length) {
       setItemisCollapsed(false);
@@ -127,8 +134,6 @@ const CollectionItem = ({ item, collection, searchText }) => {
   const requestItems = filter(item.items, (i) => isItemARequest(i));
   const folderItems = filter(item.items, (i) => isItemAFolder(i));
 
-  drag(drop(ref))
-
   return (
     <StyledWrapper className={className}>
       {renameItemModalOpen && <RenameCollectionItem item={item} collection={collection} onClose={() => setRenameItemModalOpen(false)} />}
@@ -136,7 +141,7 @@ const CollectionItem = ({ item, collection, searchText }) => {
       {deleteItemModalOpen && <DeleteCollectionItem item={item} collection={collection} onClose={() => setDeleteItemModalOpen(false)} />}
       {newRequestModalOpen && <NewRequest item={item} collection={collection} onClose={() => setNewRequestModalOpen(false)} />}
       {newFolderModalOpen && <NewFolder item={item} collection={collection} onClose={() => setNewFolderModalOpen(false)} />}
-      <div className={itemRowClassName} ref={ref}>
+      <div className={itemRowClassName} ref={(node) => drag(drop(node))}>
         <div className="flex items-center h-full w-full">
           {indents && indents.length
             ? indents.map((i) => {
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
index acc9883f7..4ecee5393 100644
--- a/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
@@ -7,6 +7,7 @@ import { uuid } from 'utils/common';
 import cloneDeep from 'lodash/cloneDeep';
 import {
   findItemInCollection,
+  moveCollectionItem,
   findCollectionByUid,
   recursivelyGetAllItemUids,
   transformCollectionToSaveToIdb,
@@ -33,6 +34,7 @@ import {
   renameItem as _renameItem,
   cloneItem as _cloneItem,
   deleteItem as _deleteItem,
+  moveItem as _moveItem,
   saveRequest as _saveRequest,
   addEnvironment as _addEnvironment,
   renameEnvironment as _renameEnvironment,
@@ -550,6 +552,69 @@ export const deleteItem = (itemUid, collectionUid) => (dispatch, getState) => {
   });
 };
 
+export const moveItem = (collectionUid, draggedItemUid, targetItemUid) => (dispatch, getState) => {
+  const state = getState();
+  const collection = findCollectionByUid(state.collections.collections, collectionUid);
+
+  return new Promise((resolve, reject) => {
+    if (!collection) {
+      return reject(new Error('Collection not found'));
+    }
+
+    if (isLocalCollection(collection)) {
+      const draggedItem = findItemInCollection(collection, draggedItemUid);
+      const targetItem = findItemInCollection(collection, targetItemUid);
+
+      if (!draggedItem) {
+        return reject(new Error('Dragged item not found'));
+      }
+
+      if (!targetItem) {
+        return reject(new Error('Target item not found'));
+      }
+
+      const { ipcRenderer } = window;
+
+      ipcRenderer
+        .invoke('renderer:move-item', draggedItem.pathname, targetItem.pathname)
+        .then(() => resolve())
+        .catch((error) => reject(error));
+      return;
+    }
+
+    const collectionCopy = cloneDeep(collection);
+    const draggedItem = findItemInCollection(collectionCopy, draggedItemUid);
+    const targetItem = findItemInCollection(collectionCopy, targetItemUid);
+
+    if (!draggedItem) {
+      return reject(new Error('Dragged item not found'));
+    }
+
+    if (!targetItem) {
+      return reject(new Error('Target item not found'));
+    }
+
+    moveCollectionItem(collectionCopy, draggedItem, targetItem);
+
+    const collectionToSave = transformCollectionToSaveToIdb(collectionCopy);
+
+    collectionSchema
+      .validate(collectionToSave)
+      .then(() => saveCollectionToIdb(window.__idb, collectionToSave))
+      .then(() => {
+        dispatch(
+          _moveItem({
+            collectionUid: collectionUid,
+            draggedItemUid: draggedItemUid,
+            targetItemUid: targetItemUid
+          })
+        );
+      })
+      .then(() => resolve())
+      .catch((error) => reject(error));
+  });
+};
+
 export const newHttpRequest = (params) => (dispatch, getState) => {
   const { requestName, requestType, requestUrl, requestMethod, collectionUid, itemUid } = params;
 
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
index a9ae22597..5d09b7611 100644
--- a/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
@@ -14,6 +14,7 @@ import {
   findEnvironmentInCollection,
   findItemInCollectionByPathname,
   addDepth,
+  moveCollectionItem,
   collapseCollection,
   deleteItemInCollection,
   isItemARequest
@@ -181,6 +182,23 @@ export const collectionsSlice = createSlice({
         }
       }
     },
+    moveItem: (state, action) => {
+      const collection = findCollectionByUid(state.collections, action.payload.collectionUid);
+      const draggedItemUid = action.payload.draggedItemUid;
+      const targetItemUid = action.payload.targetItemUid;
+
+      if (collection) {
+        const draggedItem = findItemInCollection(collection, draggedItemUid);
+        const targetItem = findItemInCollection(collection, targetItemUid);
+
+        if (!draggedItem || !targetItem) {
+          return;
+        }
+
+        moveCollectionItem(collection, draggedItem, targetItem);
+        addDepth(collection.items);
+      }
+    },
     requestSent: (state, action) => {
       const { itemUid, collectionUid, cancelTokenUid } = action.payload;
       const collection = findCollectionByUid(state.collections, collectionUid);
@@ -785,6 +803,7 @@ export const {
   deleteItem,
   renameItem,
   cloneItem,
+  moveItem,
   requestSent,
   requestCancelled,
   responseReceived,
diff --git a/packages/bruno-app/src/utils/collections/index.js b/packages/bruno-app/src/utils/collections/index.js
index 8c8263809..70d6bc64d 100644
--- a/packages/bruno-app/src/utils/collections/index.js
+++ b/packages/bruno-app/src/utils/collections/index.js
@@ -1,7 +1,7 @@
-import reckon from 'reckonjs';
 import get from 'lodash/get';
 import each from 'lodash/each';
 import find from 'lodash/find';
+import findIndex from 'lodash/findIndex';
 import isString from 'lodash/isString';
 import map from 'lodash/map';
 import filter from 'lodash/filter';
@@ -122,6 +122,31 @@ export const findEnvironmentInCollection = (collection, envUid) => {
   return find(collection.environments, (e) => e.uid === envUid);
 };
 
+export const moveCollectionItem = (collection, draggedItem, targetItem) => {
+  let draggedItemParent = findParentItemInCollection(collection, draggedItem.uid);
+
+  if (draggedItemParent) {
+    draggedItemParent.items = filter(draggedItemParent.items, (i) => i.uid !== draggedItem.uid);
+  } else {
+    collection.items = filter(collection.items, (i) => i.uid !== draggedItem.uid);
+  }
+
+  if (targetItem.type === 'folder') {
+    targetItem.items = targetItem.items || [];
+    targetItem.items.push(draggedItem);
+  } else {
+    let targetItemParent = findParentItemInCollection(collection, targetItem.uid);
+
+    if (targetItemParent) {
+      let targetItemIndex = findIndex(targetItemParent.items, (i) => i.uid === targetItem.uid);
+      targetItemParent.items.splice(targetItemIndex + 1, 0, draggedItem);
+    } else {
+      let targetItemIndex = findIndex(collection.items, (i) => i.uid === targetItem.uid);
+      collection.items.splice(targetItemIndex + 1, 0, draggedItem);
+    }
+  }
+};
+
 export const transformCollectionToSaveToIdb = (collection, options = {}) => {
   const copyHeaders = (headers) => {
     return map(headers, (header) => {