diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Services/CreateComponentTool.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Services/CreateComponentTool.cs
index 21df7aedcf..9ccdcd1e81 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Services/CreateComponentTool.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Services/CreateComponentTool.cs
@@ -123,6 +123,10 @@ namespace ICSharpCode.WpfDesign.Designer.Services
 					moveLogic.DesignPanel.IsAdornerLayerHitTestVisible = true;
 					moveLogic = null;
 					changeGroup.Commit();
+
+					// Return allowed effects to drag source to signal that the drop was successful.
+					e.Effects = e.Effects;
+					e.Handled = true;
 				}
 			} catch (Exception x) {
 				DragDropExceptionHandler.RaiseUnhandledException(x);