diff --git a/apps/remix-ide/src/app/files/fileManager.ts b/apps/remix-ide/src/app/files/fileManager.ts
index 44b604b8d4..7366fc9589 100644
--- a/apps/remix-ide/src/app/files/fileManager.ts
+++ b/apps/remix-ide/src/app/files/fileManager.ts
@@ -817,6 +817,35 @@ class FileManager extends Plugin {
 
     return exists
   }
+
+  /**
+   * Moves a file to a new folder
+   * @param {string} src path of the source file
+   * @param {string} dest path of the destrination file
+   * @returns {void}
+   */
+  
+   async moveFile(src: string, dest: string) {
+    try {
+      src = this.normalize(src)
+      dest = this.normalize(dest)
+      src = this.limitPluginScope(src)
+      dest = this.limitPluginScope(dest)
+      await this._handleExists(src, `Cannot copy from ${src}. Path does not exist.`)
+      await this._handleExists(dest, `Cannot paste content into ${dest}. Path does not exist.`)
+      await this._handleIsDir(dest, `Cannot paste content into ${dest}. Path is not directory.`)
+
+      const content = await this.readFile(src)
+      let movedFilePath = dest + ( '/' + `${helper.extractNameFromKey(src)}`)
+      movedFilePath = await helper.createNonClashingNameAsync(movedFilePath, this)
+
+      await this.writeFile(movedFilePath, content)
+      await this.remove(src)
+
+    } catch (e) {
+      throw new Error(e)
+    }
+  }
 }
 
 module.exports = FileManager
diff --git a/jest.preset.js b/jest.preset.js
new file mode 100644
index 0000000000..a7ccccd3f1
--- /dev/null
+++ b/jest.preset.js
@@ -0,0 +1,4 @@
+
+      const nxPreset = require('@nrwl/jest/preset');
+     
+      module.exports = { ...nxPreset }
\ No newline at end of file
diff --git a/libs/remix-ui/drag-n-drop/.babelrc b/libs/remix-ui/drag-n-drop/.babelrc
new file mode 100644
index 0000000000..09d67939cc
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/.babelrc
@@ -0,0 +1,4 @@
+{
+  "presets": ["@nrwl/react/babel"],
+  "plugins": []
+}
diff --git a/libs/remix-ui/drag-n-drop/.eslintrc.json b/libs/remix-ui/drag-n-drop/.eslintrc.json
new file mode 100644
index 0000000000..0d43d424e3
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/.eslintrc.json
@@ -0,0 +1,19 @@
+{
+  "env": {
+      "browser": true,
+      "es6": true
+  },
+  "extends": "../../../.eslintrc.json",
+  "globals": {
+      "Atomics": "readonly",
+      "SharedArrayBuffer": "readonly"
+  },
+  "parserOptions": {
+      "ecmaVersion": 11,
+      "sourceType": "module"
+  },
+  "rules": {
+    "no-unused-vars": "off",
+    "@typescript-eslint/no-unused-vars": "error"  
+  }
+} 
diff --git a/libs/remix-ui/drag-n-drop/README.md b/libs/remix-ui/drag-n-drop/README.md
new file mode 100644
index 0000000000..cbe7a6ff0e
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/README.md
@@ -0,0 +1,7 @@
+# remix-ui-drag-n-drop
+
+This library was generated with [Nx](https://nx.dev).
+
+## Running unit tests
+
+Run `nx test remix-ui-drag-n-drop` to execute the unit tests via [Jest](https://jestjs.io).
diff --git a/libs/remix-ui/drag-n-drop/jest.config.js b/libs/remix-ui/drag-n-drop/jest.config.js
new file mode 100644
index 0000000000..1a5729e026
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/jest.config.js
@@ -0,0 +1,9 @@
+module.exports = {
+  displayName: 'remix-ui-drag-n-drop',
+  preset: '../../../jest.preset.js',
+  transform: {
+    '^.+\\.[tj]sx?$': 'babel-jest'
+  },
+    moduleFileExtensions: ['ts', 'tsx', 'js', 'jsx'],
+  coverageDirectory: '../../../coverage/libs/remix-ui/drag-n-drop'
+};
diff --git a/libs/remix-ui/drag-n-drop/src/index.ts b/libs/remix-ui/drag-n-drop/src/index.ts
new file mode 100644
index 0000000000..40aad7289f
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/src/index.ts
@@ -0,0 +1,2 @@
+
+export * from './lib/remix-ui-drag-n-drop';
diff --git a/libs/remix-ui/drag-n-drop/src/lib/remix-ui-drag-n-drop.tsx b/libs/remix-ui/drag-n-drop/src/lib/remix-ui-drag-n-drop.tsx
new file mode 100644
index 0000000000..39433bbe51
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/src/lib/remix-ui-drag-n-drop.tsx
@@ -0,0 +1,112 @@
+import React, {
+  createContext,
+  ReactNode,
+  useContext,
+  useRef,
+  useState,
+} from "react";
+
+
+export interface FileType {
+  path: string,
+  name: string,
+  isDirectory: boolean,
+  type: 'folder' | 'file' | 'gist',
+  child?: File[]
+}
+
+interface MoveContextType {
+  dragged: string;
+  isDraggable?: boolean;
+  moveFile: (dest: string, dragged: string) => void;
+  currentlyMoved: (path: string) => void;
+}
+interface DraggableType {
+  children: ReactNode;
+  file: FileType;
+  isDraggable?: boolean;
+  expandedPath: string[];
+  handleClickFolder: (path: string, type: string) => void;
+}
+
+interface DragType {
+  children: ReactNode;
+  onFileMoved: (dest: string, dragged: string) => void;
+}
+
+export const MoveContext = createContext<MoveContextType>({
+  dragged: "",
+  moveFile: () => {},
+  currentlyMoved: () => {},
+});
+
+export const Drag = (props: DragType) => {
+  const [dragged, setDragged] = useState<string>("");
+
+  return (
+    <MoveContext.Provider
+      value={{
+        dragged: dragged,
+        moveFile: props.onFileMoved,
+        currentlyMoved: (path) => {
+          setDragged(() => path);
+        },
+      }}
+    >
+      {props.children}
+    </MoveContext.Provider>
+  );
+};
+
+export const Draggable = (props: DraggableType) => {
+  const dragRef = useRef<HTMLSpanElement | null>(null),
+    file = props.file,
+    context = useContext(MoveContext);
+
+  const handleDrop = (event: React.DragEvent<HTMLSpanElement>) => {
+    event.preventDefault();
+
+    if (file.isDirectory) {
+      context.moveFile(file.path, context.dragged);
+    }
+  };
+
+  const handleDragover = (event: React.DragEvent<HTMLSpanElement>) => {
+    //Checks if the folder is opened
+    event.preventDefault();
+    if (file.isDirectory && !props.expandedPath.includes(file.path)) {
+      props.handleClickFolder(file.path, file.type);
+    }
+  };
+  const handleDrag = () => {
+    if (context.dragged !== file.path) {
+      context.currentlyMoved(file.path);
+    }
+  };
+
+  if (props.isDraggable) {
+    return <>{props.children}</>;
+  }
+
+  return (
+    <span
+      ref={dragRef}
+      draggable
+      onDrop={(event) => {
+        handleDrop(event);
+      }}
+      onDragStart={() => {
+        if (file) {
+          handleDrag();
+        }
+      }}
+      onDragOver={(event) => {
+        if (file && file.isDirectory) {
+          handleDragover(event);
+        }
+      }}
+    >
+      {props.children}
+    </span>
+  );
+};
diff --git a/libs/remix-ui/drag-n-drop/tsconfig.json b/libs/remix-ui/drag-n-drop/tsconfig.json
new file mode 100644
index 0000000000..29741baf11
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/tsconfig.json
@@ -0,0 +1,23 @@
+{
+  "extends": "../../../tsconfig.base.json",
+  "compilerOptions": {
+    "jsx": "react-jsx",
+    "allowJs": true,
+    "esModuleInterop": true,
+    "allowSyntheticDefaultImports": true,
+    "forceConsistentCasingInFileNames": true,
+    "strict": true,
+    "noImplicitReturns": true,
+    "noFallthroughCasesInSwitch": true
+  },
+  "files": [],
+  "include": [],
+  "references": [
+    {
+      "path": "./tsconfig.lib.json"
+    },
+    {
+      "path": "./tsconfig.spec.json"
+    }
+  ]
+}
\ No newline at end of file
diff --git a/libs/remix-ui/drag-n-drop/tsconfig.lib.json b/libs/remix-ui/drag-n-drop/tsconfig.lib.json
new file mode 100644
index 0000000000..b560bc4dec
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/tsconfig.lib.json
@@ -0,0 +1,13 @@
+{
+  "extends": "./tsconfig.json",
+  "compilerOptions": {
+    "outDir": "../../../dist/out-tsc",
+    "types": ["node"]
+  },
+  "files": [
+    "../../../node_modules/@nrwl/react/typings/cssmodule.d.ts",
+    "../../../node_modules/@nrwl/react/typings/image.d.ts"
+  ],
+  "exclude": ["**/*.spec.ts", "**/*.spec.tsx"],
+  "include": ["**/*.js", "**/*.jsx", "**/*.ts", "**/*.tsx"]
+}
diff --git a/libs/remix-ui/drag-n-drop/tsconfig.spec.json b/libs/remix-ui/drag-n-drop/tsconfig.spec.json
new file mode 100644
index 0000000000..1798b378a9
--- /dev/null
+++ b/libs/remix-ui/drag-n-drop/tsconfig.spec.json
@@ -0,0 +1,15 @@
+{
+  "extends": "./tsconfig.json",
+  "compilerOptions": {
+    "outDir": "../../../dist/out-tsc",
+    "module": "commonjs",
+    "types": ["jest", "node"]
+  },
+  "include": [
+    "**/*.spec.ts",
+    "**/*.spec.tsx",
+    "**/*.spec.js",
+    "**/*.spec.jsx",
+    "**/*.d.ts"
+  ]
+}
diff --git a/libs/remix-ui/tree-view/src/types/index.ts b/libs/remix-ui/tree-view/src/types/index.ts
index 4f6bfc9e02..9827b7f2d4 100644
--- a/libs/remix-ui/tree-view/src/types/index.ts
+++ b/libs/remix-ui/tree-view/src/types/index.ts
@@ -23,4 +23,5 @@ export interface TreeViewItemProps {
     onContextMenu?: (...args: any) => void,
     onBlur?: (...args: any) => void,
     showIcon?: boolean
+    expandedPaths?: string[];
 }
diff --git a/libs/remix-ui/workspace/src/lib/actions/index.ts b/libs/remix-ui/workspace/src/lib/actions/index.ts
index 31fe71a453..eaf65dba08 100644
--- a/libs/remix-ui/workspace/src/lib/actions/index.ts
+++ b/libs/remix-ui/workspace/src/lib/actions/index.ts
@@ -462,3 +462,13 @@ const saveAs = (blob, name) => {
     }
   }, 0) // 40s
 }
+
+export const moveFile = async (src: string, dest: string) => {
+  const fileManager = plugin.fileManager
+
+  try {
+    await fileManager.moveFile(src, dest)
+  } catch (error) {
+    dispatch(displayPopUp('Oops! An error ocurred while performing moveFile operation.' + error))
+  }
+}
\ No newline at end of file
diff --git a/libs/remix-ui/workspace/src/lib/components/file-explorer.tsx b/libs/remix-ui/workspace/src/lib/components/file-explorer.tsx
index 3ccefdb2db..bd11d75fb5 100644
--- a/libs/remix-ui/workspace/src/lib/components/file-explorer.tsx
+++ b/libs/remix-ui/workspace/src/lib/components/file-explorer.tsx
@@ -10,6 +10,7 @@ import '../css/file-explorer.css'
 import { checkSpecialChars, extractNameFromKey, extractParentFromKey, joinPath } from '@remix-ui/helper'
 // eslint-disable-next-line @typescript-eslint/no-unused-vars
 import { FileRender } from './file-render'
+import { Drag } from "@remix-ui/drag-n-drop"
 
 export const FileExplorer = (props: FileExplorerProps) => {
   const { name, contextMenuItems, removedContextMenuItems, files, fileState } = props
@@ -409,7 +410,16 @@ export const FileExplorer = (props: FileExplorerProps) => {
     props.dispatchHandleExpandPath(expandPath)
   }
 
+  const handleFileMove = (dest: string, dragged:string)=>{
+    try {
+      props.dispatchMoveFile(dragged, dest)
+    } catch (error) {
+      props.modal('Moving File Failed', 'Unexpected error while moving file: ' + dragged, 'Close', async () => {})
+    }   
+}
+
   return (
+    <Drag onFileMoved={handleFileMove}>
     <div ref={treeRef} tabIndex={0} style={{ outline: "none" }}>
       <TreeView id='treeView'>
         <TreeViewItem id="treeViewItem"
@@ -444,6 +454,7 @@ export const FileExplorer = (props: FileExplorerProps) => {
                   handleClickFolder={handleClickFolder}
                   handleContextMenu={handleContextMenu}
                   key={index}
+                  
                 />)
               }
             </TreeView>
@@ -473,6 +484,7 @@ export const FileExplorer = (props: FileExplorerProps) => {
         />
       }
     </div>
+    </Drag>
   )
 }
 
diff --git a/libs/remix-ui/workspace/src/lib/components/file-render.tsx b/libs/remix-ui/workspace/src/lib/components/file-render.tsx
index 164689899b..d535a0ca89 100644
--- a/libs/remix-ui/workspace/src/lib/components/file-render.tsx
+++ b/libs/remix-ui/workspace/src/lib/components/file-render.tsx
@@ -7,7 +7,7 @@ import { getPathIcon } from '@remix-ui/helper'
 // eslint-disable-next-line @typescript-eslint/no-unused-vars
 import { FileLabel } from './file-label'
 import { fileDecoration, FileDecorationIcons } from '@remix-ui/file-decorators'
-
+import {Draggable} from "@remix-ui/drag-n-drop"
 
 
 
@@ -82,7 +82,14 @@ export const FileRender = (props: RenderFileProps) => {
         iconX='pr-3 fa fa-folder'
         iconY='pr-3 fa fa-folder-open'
         key={`${file.path + props.index}`}
-        label={<FileLabel fileDecorations={props.fileDecorations} file={file} focusEdit={props.focusEdit} editModeOff={props.editModeOff} />}
+        label={<>
+          <div className="d-flex flex-row">
+            <Draggable isDraggable={props.focusEdit.element!==null} file={file} expandedPath={props.expandPath} handleClickFolder={props.handleClickFolder}> 
+              <FileLabel fileDecorations={props.fileDecorations} file={file} focusEdit={props.focusEdit} editModeOff={props.editModeOff} />
+            </Draggable>
+            <FileDecorationIcons file={file} fileDecorations={props.fileDecorations}/>
+            </div>
+          </>}
         onClick={handleFolderClick}
         onContextMenu={handleContextMenu}
         labelClass={labelClass}
@@ -90,6 +97,7 @@ export const FileRender = (props: RenderFileProps) => {
         expand={props.expandPath.includes(file.path)}
         onMouseOver={handleMouseOver}
         onMouseOut={handleMouseOut}
+        expandedPaths={props.expandPath}
       >
         {
           file.child ? <TreeView id={`treeView${file.path}`} key={`treeView${file.path}`} {...spreadProps }>{
@@ -119,11 +127,13 @@ export const FileRender = (props: RenderFileProps) => {
         id={`treeViewItem${file.path}`}
         key={`treeView${file.path}`}
         label={
-          <>
-            <div className="d-flex flex-row">
-              <FileLabel file={file} fileDecorations={props.fileDecorations} focusEdit={props.focusEdit} editModeOff={props.editModeOff} />
-              <FileDecorationIcons file={file} fileDecorations={props.fileDecorations}/>
-            </div>
+        <>
+        <div className="d-flex flex-row">
+          <Draggable isDraggable={props.focusEdit.element!==null} file={file} expandedPath={props.expandPath} handleClickFolder={props.handleClickFolder}>
+              <FileLabel fileDecorations={props.fileDecorations} file={file} focusEdit={props.focusEdit} editModeOff={props.editModeOff} />
+            </Draggable>
+            <FileDecorationIcons file={file} fileDecorations={props.fileDecorations}/>
+          </div>
           </>
         }
         onClick={handleFileClick}
@@ -132,6 +142,7 @@ export const FileRender = (props: RenderFileProps) => {
         labelClass={labelClass}
         onMouseOver={handleMouseOver}
         onMouseOut={handleMouseOut}
+        expandedPaths={props.expandPath}
       />
     )
   }
diff --git a/libs/remix-ui/workspace/src/lib/contexts/index.ts b/libs/remix-ui/workspace/src/lib/contexts/index.ts
index b71dc9e373..2ba8b7394b 100644
--- a/libs/remix-ui/workspace/src/lib/contexts/index.ts
+++ b/libs/remix-ui/workspace/src/lib/contexts/index.ts
@@ -29,6 +29,21 @@ export const FileSystemContext = createContext<{
   dispatchHandleClickFile: (path: string, type: 'file' | 'folder' | 'gist') => Promise<void>
   dispatchHandleExpandPath: (paths: string[]) => Promise<void>,
   dispatchHandleDownloadFiles: () => Promise<void>,
-  dispatchHandleRestoreBackup: () => Promise<void>,
+  dispatchHandleRestoreBackup: () => Promise<void>
   dispatchCloneRepository: (url: string) => Promise<void>
+  dispatchMoveFile: (src: string, dest: string) => Promise<void>,
+
     }>(null)
+
+interface MoveContextType{
+  dragged: string,
+  moveFile: (dest: string) => void
+  currentlyMoved: (path: string) => void
+}
+     
+export const MoveContext = createContext<MoveContextType>({
+  dragged:"",
+  moveFile:( )=> {},
+  currentlyMoved: () => {}
+})
+    
\ No newline at end of file
diff --git a/libs/remix-ui/workspace/src/lib/providers/FileSystemProvider.tsx b/libs/remix-ui/workspace/src/lib/providers/FileSystemProvider.tsx
index f754869931..985f531e9a 100644
--- a/libs/remix-ui/workspace/src/lib/providers/FileSystemProvider.tsx
+++ b/libs/remix-ui/workspace/src/lib/providers/FileSystemProvider.tsx
@@ -7,7 +7,7 @@ import { FileSystemContext } from '../contexts'
 import { browserReducer, browserInitialState } from '../reducers/workspace'
 import { initWorkspace, fetchDirectory, removeInputField, deleteWorkspace, clearPopUp, publishToGist, createNewFile, setFocusElement, createNewFolder,
   deletePath, renamePath, copyFile, copyFolder, runScript, emitContextMenuEvent, handleClickFile, handleExpandPath, addInputField, createWorkspace,
-  fetchWorkspaceDirectory, renameWorkspace, switchToWorkspace, uploadFile, handleDownloadFiles, restoreBackupZip, cloneRepository } from '../actions'
+  fetchWorkspaceDirectory, renameWorkspace, switchToWorkspace, uploadFile, handleDownloadFiles, restoreBackupZip, cloneRepository, moveFile } from '../actions'
 import { Modal, WorkspaceProps, WorkspaceTemplate } from '../types'
 // eslint-disable-next-line @typescript-eslint/no-unused-vars
 import { Workspace } from '../remix-ui-workspace'
@@ -128,7 +128,9 @@ export const FileSystemProvider = (props: WorkspaceProps) => {
   const dispatchCloneRepository = async (url: string) => {
     await cloneRepository(url)
   }
-
+  const dispatchMoveFile = async (src: string, dest: string) => {
+    await moveFile(src, dest)
+  }
   useEffect(() => {
     dispatchInitWorkspace()
   }, [])
@@ -231,7 +233,8 @@ export const FileSystemProvider = (props: WorkspaceProps) => {
     dispatchHandleExpandPath,
     dispatchHandleDownloadFiles,
     dispatchHandleRestoreBackup,
-    dispatchCloneRepository
+    dispatchCloneRepository,
+    dispatchMoveFile
   }
   return (
     <FileSystemContext.Provider value={value}>
@@ -244,3 +247,4 @@ export const FileSystemProvider = (props: WorkspaceProps) => {
 }
 
 export default FileSystemProvider
+
diff --git a/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx b/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx
index b56c83b5de..f96a252c26 100644
--- a/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx
+++ b/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx
@@ -330,6 +330,7 @@ export function Workspace () {
                       dispatchRemoveInputField={global.dispatchRemoveInputField}
                       dispatchAddInputField={global.dispatchAddInputField}
                       dispatchHandleExpandPath={global.dispatchHandleExpandPath}
+                      dispatchMoveFile={global.dispatchMoveFile}
                     />
                 }
               </div>
@@ -367,6 +368,7 @@ export function Workspace () {
                         dispatchRemoveInputField={global.dispatchRemoveInputField}
                         dispatchAddInputField={global.dispatchAddInputField}
                         dispatchHandleExpandPath={global.dispatchHandleExpandPath}
+                        dispatchMoveFile={global.dispatchMoveFile}
                       />
                   }
                 </div>
@@ -378,4 +380,4 @@ export function Workspace () {
   )
 }
 
-export default Workspace
+export default Workspace
\ No newline at end of file
diff --git a/libs/remix-ui/workspace/src/lib/types/index.ts b/libs/remix-ui/workspace/src/lib/types/index.ts
index 93b6d9f8c9..bdb308587b 100644
--- a/libs/remix-ui/workspace/src/lib/types/index.ts
+++ b/libs/remix-ui/workspace/src/lib/types/index.ts
@@ -98,6 +98,7 @@ export interface FileExplorerProps {
     dispatchRemoveInputField:(path: string) => Promise<void>,
     dispatchAddInputField:(path: string, type: 'file' | 'folder') => Promise<void>,
     dispatchHandleExpandPath: (paths: string[]) => Promise<void>
+    dispatchMoveFile: (src: string, dest: string) => Promise<void>,
 }
 
 export interface FileExplorerMenuProps {
diff --git a/nx.json b/nx.json
index 130f4ce5d5..307d412bfa 100644
--- a/nx.json
+++ b/nx.json
@@ -201,6 +201,9 @@
     },
     "etherscan": {
       "tags": []
+    },
+    "remix-ui-drag-n-drop": {
+      "tags": []
     }
   },
   "targetDependencies": {
@@ -211,4 +214,5 @@
       }
     ]
   }
+
 }
\ No newline at end of file
diff --git a/tsconfig.base.json b/tsconfig.base.json
index d27eb016f0..208597825d 100644
--- a/tsconfig.base.json
+++ b/tsconfig.base.json
@@ -87,7 +87,8 @@
         "libs/remix-ui/permission-handler/src/index.ts"
       ],
       "@remix-ui/file-decorators": ["libs/remix-ui/file-decorators/src/index.ts"],
-      "@remix-ui/tooltip-popup": ["libs/remix-ui/tooltip-popup/src/index.ts"]
+      "@remix-ui/tooltip-popup": ["libs/remix-ui/tooltip-popup/src/index.ts"],
+      "@remix-ui/drag-n-drop": ["libs/remix-ui/drag-n-drop/src/index.ts"]
     }
   },
   "exclude": ["node_modules", "tmp"]
diff --git a/workspace.json b/workspace.json
index ce8bd732cd..0e292d14ea 100644
--- a/workspace.json
+++ b/workspace.json
@@ -1496,6 +1496,26 @@
         }
       }
     },
+    "remix-ui-drag-n-drop": {
+      "root": "libs/remix-ui/drag-n-drop",
+      "sourceRoot": "libs/remix-ui/drag-n-drop/src",
+      "projectType": "library",
+      "architect": {
+        "lint": {
+          "builder": "@nrwl/linter:lint",
+          "options": {
+            "linter": "eslint",
+            "config": "libs/remix-ui/drag-n-drop/.eslintrc.json",
+            "tsConfig": [
+              "libs/remix-ui/drag-n-drop/tsconfig.lib.json"
+            ],
+            "exclude": [
+              "**/node_modules/**"
+            ]
+          }
+        }
+      }
+    },
     "vyper": {
       "root": "apps/vyper",
       "sourceRoot": "apps/vyper/src",