diff --git a/src/com/android/launcher3/CellLayout.java b/src/com/android/launcher3/CellLayout.java
index c9befe8..adb1613 100644
--- a/src/com/android/launcher3/CellLayout.java
+++ b/src/com/android/launcher3/CellLayout.java
@@ -20,6 +20,7 @@
 
 import static com.android.launcher3.anim.Interpolators.DEACCEL_1_5;
 import static com.android.launcher3.dragndrop.DraggableView.DRAGGABLE_ICON;
+import static com.android.launcher3.icons.IconNormalizer.ICON_VISIBLE_AREA_FACTOR;
 
 import android.animation.Animator;
 import android.animation.AnimatorListenerAdapter;
@@ -446,6 +447,7 @@
             Rect cellBounds = new Rect();
             // Will contain the bounds of the cell including spacing between cells.
             Rect cellBoundsWithSpacing = new Rect();
+            int[] targetCell = new int[2];
             int[] cellCenter = new int[2];
             Paint debugPaint = new Paint();
             debugPaint.setStrokeWidth(Utilities.dpToPx(1));
@@ -454,10 +456,10 @@
                     if (!mOccupied.cells[x][y]) {
                         continue;
                     }
-                    View child = getChildAt(x, y);
-                    boolean canCreateFolder = child instanceof DraggableView
-                            && ((DraggableView) child).getViewType() == DRAGGABLE_ICON;
+                    targetCell[0] = x;
+                    targetCell[1] = y;
 
+                    boolean canCreateFolder = canCreateFolder(getChildAt(x, y));
                     cellToRect(x, y, 1, 1, cellBounds);
                     cellBoundsWithSpacing.set(cellBounds);
                     cellBoundsWithSpacing.inset(-mBorderSpace.x / 2, -mBorderSpace.y / 2);
@@ -468,13 +470,14 @@
 
                     // Draw reorder drag target.
                     debugPaint.setColor(Color.RED);
-                    canvas.drawRect(cellBoundsWithSpacing, debugPaint);
+                    canvas.drawCircle(cellCenter[0], cellCenter[1], getReorderRadius(targetCell),
+                            debugPaint);
 
                     // Draw folder creation drag target.
                     if (canCreateFolder) {
                         debugPaint.setColor(Color.GREEN);
                         canvas.drawCircle(cellCenter[0], cellCenter[1],
-                                getFolderCreationRadius(), debugPaint);
+                                getFolderCreationRadius(targetCell), debugPaint);
                     }
 
                     canvas.restore();
@@ -506,6 +509,14 @@
     }
 
     /**
+     * Returns whether dropping an icon on the given View can create (or add to) a folder.
+     */
+    private boolean canCreateFolder(View child) {
+        return child instanceof DraggableView
+                && ((DraggableView) child).getViewType() == DRAGGABLE_ICON;
+    }
+
+    /**
      * Indicates the progress of the Workspace entering the SpringLoaded state; allows the
      * CellLayout to update various visuals for this state.
      *
@@ -881,9 +892,36 @@
     /**
      * Returns the max distance from the center of a cell that can accept a drop to create a folder.
      */
-    public float getFolderCreationRadius() {
+    public float getFolderCreationRadius(int[] targetCell) {
         DeviceProfile grid = mActivity.getDeviceProfile();
-        return grid.isTablet ? 0.75f * grid.iconSizePx : 0.55f * grid.iconSizePx;
+        float iconVisibleRadius = ICON_VISIBLE_AREA_FACTOR * grid.iconSizePx / 2;
+        // Halfway between reorder radius and icon.
+        return (getReorderRadius(targetCell) + iconVisibleRadius) / 2;
+    }
+
+    /**
+     * Returns the max distance from the center of a cell that will start to reorder on drag over.
+     */
+    public float getReorderRadius(int[] targetCell) {
+        int[] centerPoint = mTmpPoint;
+        getWorkspaceCellVisualCenter(targetCell[0], targetCell[1], centerPoint);
+
+        Rect cellBoundsWithSpacing = mTempRect;
+        cellToRect(targetCell[0], targetCell[1], 1, 1, cellBoundsWithSpacing);
+        cellBoundsWithSpacing.inset(-mBorderSpace.x / 2, -mBorderSpace.y / 2);
+
+        if (canCreateFolder(getChildAt(targetCell[0], targetCell[1]))) {
+            // Take only the circle in the smaller dimension, to ensure we don't start reordering
+            // too soon before accepting a folder drop.
+            int minRadius = centerPoint[0] - cellBoundsWithSpacing.left;
+            minRadius = Math.min(minRadius, centerPoint[1] - cellBoundsWithSpacing.top);
+            minRadius = Math.min(minRadius, cellBoundsWithSpacing.right - centerPoint[0]);
+            minRadius = Math.min(minRadius, cellBoundsWithSpacing.bottom - centerPoint[1]);
+            return minRadius;
+        }
+        // Take up the entire cell, including space between this cell and the adjacent ones.
+        return (float) Math.hypot(cellBoundsWithSpacing.width() / 2f,
+                cellBoundsWithSpacing.height() / 2f);
     }
 
     public int getCellWidth() {
diff --git a/src/com/android/launcher3/Workspace.java b/src/com/android/launcher3/Workspace.java
index 2345f51..00c8d8e 100644
--- a/src/com/android/launcher3/Workspace.java
+++ b/src/com/android/launcher3/Workspace.java
@@ -1786,7 +1786,7 @@
 
     boolean willCreateUserFolder(ItemInfo info, CellLayout target, int[] targetCell,
             float distance, boolean considerTimeout) {
-        if (distance > target.getFolderCreationRadius()) return false;
+        if (distance > target.getFolderCreationRadius(targetCell)) return false;
         View dropOverView = target.getChildAt(targetCell[0], targetCell[1]);
         return willCreateUserFolder(info, dropOverView, considerTimeout);
     }
@@ -1821,7 +1821,7 @@
 
     boolean willAddToExistingUserFolder(ItemInfo dragInfo, CellLayout target, int[] targetCell,
             float distance) {
-        if (distance > target.getFolderCreationRadius()) return false;
+        if (distance > target.getFolderCreationRadius(targetCell)) return false;
         View dropOverView = target.getChildAt(targetCell[0], targetCell[1]);
         return willAddToExistingUserFolder(dragInfo, dropOverView);
 
@@ -1845,7 +1845,7 @@
 
     boolean createUserFolderIfNecessary(View newView, int container, CellLayout target,
             int[] targetCell, float distance, boolean external, DragObject d) {
-        if (distance > target.getFolderCreationRadius()) return false;
+        if (distance > target.getFolderCreationRadius(targetCell)) return false;
         View v = target.getChildAt(targetCell[0], targetCell[1]);
 
         boolean hasntMoved = false;
@@ -1902,7 +1902,7 @@
 
     boolean addToExistingFolderIfNecessary(View newView, CellLayout target, int[] targetCell,
             float distance, DragObject d, boolean external) {
-        if (distance > target.getFolderCreationRadius()) return false;
+        if (distance > target.getFolderCreationRadius(targetCell)) return false;
 
         View dropOverView = target.getChildAt(targetCell[0], targetCell[1]);
         if (!mAddToExistingFolderOnDrop) return false;
@@ -2408,8 +2408,9 @@
                 mDragTargetLayout.visualizeDropLocation(mTargetCell[0], mTargetCell[1],
                         item.spanX, item.spanY, d);
             } else if ((mDragMode == DRAG_MODE_NONE || mDragMode == DRAG_MODE_REORDER)
-                    && !mReorderAlarm.alarmPending() && (mLastReorderX != reorderX ||
-                    mLastReorderY != reorderY)) {
+                    && !mReorderAlarm.alarmPending()
+                    && (mLastReorderX != reorderX || mLastReorderY != reorderY)
+                    && targetCellDistance < mDragTargetLayout.getReorderRadius(mTargetCell)) {
 
                 int[] resultSpan = new int[2];
                 mDragTargetLayout.performReorder((int) mDragViewVisualCenter[0],
@@ -2506,7 +2507,7 @@
     }
 
     private void manageFolderFeedback(float distance, DragObject dragObject) {
-        if (distance > mDragTargetLayout.getFolderCreationRadius()) {
+        if (distance > mDragTargetLayout.getFolderCreationRadius(mTargetCell)) {
             if ((mDragMode == DRAG_MODE_ADD_TO_FOLDER
                     || mDragMode == DRAG_MODE_CREATE_FOLDER)) {
                 setDragMode(DRAG_MODE_NONE);