diff --git a/packages/core/src/extensions/SideMenu/SideMenuPlugin.ts b/packages/core/src/extensions/SideMenu/SideMenuPlugin.ts
index 6b2060d73c..7a744540bf 100644
--- a/packages/core/src/extensions/SideMenu/SideMenuPlugin.ts
+++ b/packages/core/src/extensions/SideMenu/SideMenuPlugin.ts
@@ -498,21 +498,19 @@ export class SideMenuView<
     }
     const { isDropPoint, isDropWithinEditorBounds, isDragOrigin } = context;
 
-    if (!isDropWithinEditorBounds) {
+    if (!isDropWithinEditorBounds && isDropPoint) {
       // Any time that the drop event is outside of the editor bounds (but still close to an editor instance)
       // We dispatch a synthetic event that is in the bounds of the editor instance, to have the correct drop point
       this.dispatchSyntheticEvent(event);
     }
 
-    if (isDropPoint && isDragOrigin) {
-      // The current instance is both the drop point and the drag origin
-      // no-op, normal drop handling will take over
-      return;
-    }
-
     if (isDropPoint) {
-      // The current instance is the drop point, but not the drag origin
+      // The current instance is the drop point
 
+      if (this.pmView.dragging) {
+        // Do not collapse selection when text content is being dragged
+        return;
+      }
       // Because the editor selection is unrelated to the dragged content, we
       // don't want PM to delete its content. Therefore, we collapse the
       // selection.