diff --git a/src/vs/workbench/browser/parts/editor/editorDropTarget.ts b/src/vs/workbench/browser/parts/editor/editorDropTarget.ts
index af98c5ae2c8..4d29cc8f143 100644
--- a/src/vs/workbench/browser/parts/editor/editorDropTarget.ts
+++ b/src/vs/workbench/browser/parts/editor/editorDropTarget.ts
@@ -597,7 +597,11 @@ export class EditorDropTarget extends Themable {
 	private registerListeners(): void {
 		this._register(addDisposableListener(this.container, EventType.DRAG_ENTER, e => this.onDragEnter(e)));
 		this._register(addDisposableListener(this.container, EventType.DRAG_LEAVE, () => this.onDragLeave()));
-		this._register(addDisposableListener(this.container, EventType.DRAG_OVER, e => this.onDragEnter(e)));
+		this._register(addDisposableListener(this.container, EventType.DRAG_OVER, e => {
+			if (!this.overlay) {
+				this.onDragEnter(e);
+			}
+		}));
 		[this.container, window].forEach(node => this._register(addDisposableListener(node as HTMLElement, EventType.DRAG_END, () => this.onDragEnd())));
 	}