diff --git a/src/com/android/launcher3/Workspace.java b/src/com/android/launcher3/Workspace.java
index 66fb3c6b3e..eafdecc184 100644
--- a/src/com/android/launcher3/Workspace.java
+++ b/src/com/android/launcher3/Workspace.java
@@ -2386,7 +2386,12 @@ public class Workspace extends PagedView<WorkspacePageIndicator>
 
     private void manageFolderFeedback(CellLayout targetLayout,
             int[] targetCell, float distance, DragObject dragObject) {
-        if (distance > mMaxDistanceForFolderCreation) return;
+        if (distance > mMaxDistanceForFolderCreation) {
+            if (mDragMode != DRAG_MODE_NONE) {
+                setDragMode(DRAG_MODE_NONE);
+            }
+            return;
+        }
 
         final View dragOverView = mDragTargetLayout.getChildAt(mTargetCell[0], mTargetCell[1]);
         ItemInfo info = dragObject.dragInfo;