diff --git a/res/values/styles.xml b/res/values/styles.xml
index de438be..c8fe024 100644
--- a/res/values/styles.xml
+++ b/res/values/styles.xml
@@ -77,7 +77,7 @@
     </style>
 
     <style name="WorkspaceIcon.Landscape">
-        <item name="android:drawablePadding">4dp</item>
+        <item name="android:drawablePadding">2dp</item>
         <item name="android:paddingLeft">4dp</item>
         <item name="android:paddingRight">4dp</item>
         <item name="android:paddingTop">6dp</item>
@@ -91,7 +91,7 @@
     <style name="WorkspaceIcon.Landscape.Folder">
         <item name="android:drawablePadding">0dp</item>
         <item name="android:paddingTop">0dp</item>
-        <item name="android:layout_marginTop">-6dp</item>
+        <item name="android:layout_marginTop">-2dp</item>
     </style>
 
     <style name="WorkspaceIcon.Portrait.AppsCustomize">
diff --git a/src/com/android/launcher2/DragController.java b/src/com/android/launcher2/DragController.java
index afbf80d..ca7e55b 100644
--- a/src/com/android/launcher2/DragController.java
+++ b/src/com/android/launcher2/DragController.java
@@ -361,6 +361,7 @@
             if (mLastDropTarget != null) {
                 mLastDropTarget.onDragExit(mDragObject);
             }
+            mDragObject.cancelled = true;
             mDragObject.dragComplete = true;
             mDragObject.dragSource.onDropCompleted(null, mDragObject, false);
         }
diff --git a/src/com/android/launcher2/DropTarget.java b/src/com/android/launcher2/DropTarget.java
index 34fa893..4172da2 100644
--- a/src/com/android/launcher2/DropTarget.java
+++ b/src/com/android/launcher2/DropTarget.java
@@ -52,6 +52,9 @@
         /** Post drag animation runnable */
         public Runnable postAnimationRunnable = null;
 
+        /** Indicates that the drag operation was cancelled */
+        public boolean cancelled = false;
+
         public DragObject() {
         }
     }
diff --git a/src/com/android/launcher2/Workspace.java b/src/com/android/launcher2/Workspace.java
index 44c533b..873c038 100644
--- a/src/com/android/launcher2/Workspace.java
+++ b/src/com/android/launcher2/Workspace.java
@@ -3051,6 +3051,9 @@
             }
             cellLayout.onDropChild(mDragInfo.cell);
         }
+        if (d.cancelled &&  mDragInfo.cell != null) {
+                mDragInfo.cell.setVisibility(VISIBLE);
+        }
         mDragOutline = null;
         mDragInfo = null;
     }