diff --git a/macos/Sources/Features/Terminal/BaseTerminalController.swift b/macos/Sources/Features/Terminal/BaseTerminalController.swift
index ce2d5a5f2..529b1d18a 100644
--- a/macos/Sources/Features/Terminal/BaseTerminalController.swift
+++ b/macos/Sources/Features/Terminal/BaseTerminalController.swift
@@ -734,6 +734,9 @@ class BaseTerminalController: NSWindowController,
         // it is already a single split.
         guard surfaceTree.isSplit else { return }
 
+        // Extract the drop position from the notification
+        let dropPoint = notification.userInfo?[Notification.Name.ghosttySurfaceDragEndedNoTargetPointKey] as? NSPoint
+
         // Remove the surface from our tree
         let removedTree = surfaceTree.remove(targetNode)
 
@@ -748,7 +751,7 @@ class BaseTerminalController: NSWindowController,
         }
         
         replaceSurfaceTree(removedTree, moveFocusFrom: focusedSurface)
-        _ = TerminalController.newWindow(ghostty, tree: newTree)
+        _ = TerminalController.newWindow(ghostty, tree: newTree, position: dropPoint)
     }
 
     // MARK: Local Events
diff --git a/macos/Sources/Features/Terminal/TerminalController.swift b/macos/Sources/Features/Terminal/TerminalController.swift
index bd2c99a22..021b9f394 100644
--- a/macos/Sources/Features/Terminal/TerminalController.swift
+++ b/macos/Sources/Features/Terminal/TerminalController.swift
@@ -277,9 +277,15 @@ class TerminalController: BaseTerminalController, TabGroupCloseCoordinator.Contr
 
     /// Create a new window with an existing split tree.
     /// The window will be sized to match the tree's current view bounds if available.
+    /// - Parameters:
+    ///   - ghostty: The Ghostty app instance.
+    ///   - tree: The split tree to use for the new window.
+    ///   - position: Optional screen position (top-left corner) for the new window.
+    ///               If nil, the window will cascade from the last cascade point.
     static func newWindow(
         _ ghostty: Ghostty.App,
-        tree: SplitTree<Ghostty.SurfaceView>
+        tree: SplitTree<Ghostty.SurfaceView>,
+        position: NSPoint? = nil
     ) -> TerminalController {
         let c = TerminalController.init(ghostty, withSurfaceTree: tree)
 
@@ -295,7 +301,12 @@ class TerminalController: BaseTerminalController, TabGroupCloseCoordinator.Contr
                 }
 
                 if !window.styleMask.contains(.fullScreen) {
-                    Self.lastCascadePoint = window.cascadeTopLeft(from: Self.lastCascadePoint)
+                    if let position {
+                        window.setFrameTopLeftPoint(position)
+                        window.constrainToScreen()
+                    } else {
+                        Self.lastCascadePoint = window.cascadeTopLeft(from: Self.lastCascadePoint)
+                    }
                 }
             }
 
diff --git a/macos/Sources/Ghostty/Surface View/SurfaceDragSource.swift b/macos/Sources/Ghostty/Surface View/SurfaceDragSource.swift
index 34184e46e..21416ac75 100644
--- a/macos/Sources/Ghostty/Surface View/SurfaceDragSource.swift	
+++ b/macos/Sources/Ghostty/Surface View/SurfaceDragSource.swift	
@@ -177,7 +177,11 @@ extension Ghostty {
             }
             
             onDragStateChanged?(true)
-            beginDraggingSession(with: [item], event: event, source: self)
+            let session = beginDraggingSession(with: [item], event: event, source: self)
+            
+            // We need to disable this so that endedAt happens immediately for our
+            // drags outside of any targets.
+            session.animatesToStartingPositionsOnCancelOrFail = false
         }
         
         // MARK: NSDraggingSource
@@ -229,7 +233,8 @@ extension Ghostty {
                 if !endsInWindow {
                     NotificationCenter.default.post(
                         name: .ghosttySurfaceDragEndedNoTarget,
-                        object: surfaceView
+                        object: surfaceView,
+                        userInfo: [Foundation.Notification.Name.ghosttySurfaceDragEndedNoTargetPointKey: screenPoint]
                     )
                 }
             }
@@ -245,4 +250,7 @@ extension Notification.Name {
     /// released outside a valid drop target) and was not cancelled by the user
     /// pressing escape. The notification's object is the SurfaceView that was dragged.
     static let ghosttySurfaceDragEndedNoTarget = Notification.Name("ghosttySurfaceDragEndedNoTarget")
+    
+    /// Key for the screen point where the drag ended in the userInfo dictionary.
+    static let ghosttySurfaceDragEndedNoTargetPointKey = "endedAtPoint"
 }