diff --git a/TODO.md b/TODO.md
index 9b7a1afe..0250b2c1 100644
--- a/TODO.md
+++ b/TODO.md
@@ -5,7 +5,7 @@
 - [x] improve open page UX
 - [x] provide engineer error details on file open
 - [ ] trash: groups/empty/untrash
-- [ ] move groups/entries
+- [x] move groups/entries
 - [ ] help/tips
 - [ ] switch view
 - [ ] optional auto-update
diff --git a/app/scripts/comp/drag-drop-info.js b/app/scripts/comp/drag-drop-info.js
new file mode 100644
index 00000000..d536db16
--- /dev/null
+++ b/app/scripts/comp/drag-drop-info.js
@@ -0,0 +1,7 @@
+'use strict';
+
+var DragDropInfo = {
+    dragObject: null
+};
+
+module.exports = DragDropInfo;
diff --git a/app/scripts/models/group-model.js b/app/scripts/models/group-model.js
index 2946911d..5e16c89f 100644
--- a/app/scripts/models/group-model.js
+++ b/app/scripts/models/group-model.js
@@ -12,7 +12,9 @@ var GroupModel = MenuItemModel.extend({
         entries: null,
         filterKey: 'group',
         editable: true,
-        top: false
+        top: false,
+        drag: true,
+        drop: true
     }),
 
     initialize: function() {
@@ -134,6 +136,28 @@ var GroupModel = MenuItemModel.extend({
         }
         this.parentGroup.removeGroup(this);
         this.trigger('delete');
+    },
+
+    moveHere: function(object) {
+        if (!object || object.id === this.id) {
+            return;
+        }
+        if (object instanceof GroupModel) {
+            if (this.group.groups.indexOf(object.group) >= 0) {
+                return;
+            }
+            this.file.db.move(object.group, this.group);
+            object.parentGroup.removeGroup(object);
+            object.trigger('delete');
+            this.addGroup(object);
+        } else if (object instanceof EntryModel) {
+            if (this.group.entries.indexOf(object.entry) >= 0) {
+                return;
+            }
+            this.file.db.move(object.entry, this.group);
+            object.group.removeEntry(object);
+            this.addEntry(object);
+        }
     }
 });
 
@@ -143,7 +167,7 @@ GroupModel.fromGroup = function(group, file, parentGroup) {
     if (parentGroup) {
         model.parentGroup = parentGroup;
     } else {
-        model.set({ top: true }, { silent: true });
+        model.set({ top: true, drag: false }, { silent: true });
     }
     return model;
 };
diff --git a/app/scripts/models/menu/menu-item-model.js b/app/scripts/models/menu/menu-item-model.js
index b1ef3981..9157159e 100644
--- a/app/scripts/models/menu/menu-item-model.js
+++ b/app/scripts/models/menu/menu-item-model.js
@@ -16,6 +16,8 @@ var MenuItemModel = Backbone.Model.extend({
         cls: null,
         disabled: false,
         visible: true,
+        drag: false,
+        drop: false,
         filterKey: null,
         filterValue: null
     },
diff --git a/app/scripts/views/list-view.js b/app/scripts/views/list-view.js
index 0176a965..d56b603e 100644
--- a/app/scripts/views/list-view.js
+++ b/app/scripts/views/list-view.js
@@ -5,6 +5,7 @@ var Backbone = require('backbone'),
     Scrollable = require('../mixins/scrollable'),
     ListSearchView = require('./list-search-view'),
     EntryPresenter = require('../presenters/entry-presenter'),
+    DragDropInfo = require('../comp/drag-drop-info'),
     baron = require('baron');
 
 var ListView = Backbone.View.extend({
@@ -13,7 +14,8 @@ var ListView = Backbone.View.extend({
     emptyTemplate: require('templates/list-empty.html'),
 
     events: {
-        'click .list__item': 'itemClick'
+        'click .list__item': 'itemClick',
+        'dragstart .list__item': 'itemDragStart'
     },
 
     views: null,
@@ -144,6 +146,14 @@ var ListView = Backbone.View.extend({
         var scrollTop = this.itemsEl[0].scrollTop;
         this.render();
         this.itemsEl[0].scrollTop = scrollTop;
+    },
+
+    itemDragStart: function(e) {
+        e.stopPropagation();
+        var id = $(e.target).closest('.list__item').attr('id');
+        e.dataTransfer.setData('text/entry', id);
+        e.dataTransfer.effectAllowed = 'move';
+        DragDropInfo.dragObject = this.items.get(id);
     }
 });
 
diff --git a/app/scripts/views/menu/menu-item-view.js b/app/scripts/views/menu/menu-item-view.js
index e28349e8..83c2f15c 100644
--- a/app/scripts/views/menu/menu-item-view.js
+++ b/app/scripts/views/menu/menu-item-view.js
@@ -3,7 +3,8 @@
 var Backbone = require('backbone'),
     KeyHandler = require('../../comp/key-handler'),
     Keys = require('../../const/keys'),
-    Alerts = require('../../comp/alerts');
+    Alerts = require('../../comp/alerts'),
+    DragDropInfo = require('../../comp/drag-drop-info');
 
 var MenuItemView = Backbone.View.extend({
     template: require('templates/menu/menu-item.html'),
@@ -14,7 +15,11 @@ var MenuItemView = Backbone.View.extend({
         'click .menu__item-option': 'selectOption',
         'click': 'selectItem',
         'dblclick': 'expandItem',
-        'click .menu__item-edit': 'editItem'
+        'click .menu__item-edit': 'editItem',
+        'dragstart': 'dragstart',
+        'dragover': 'dragover',
+        'dragleave': 'dragleave',
+        'drop' : 'drop'
     },
 
     iconEl: null,
@@ -99,8 +104,10 @@ var MenuItemView = Backbone.View.extend({
     },
 
     mouseover: function(e) {
-        this.$el.addClass('menu__item--hover');
-        e.stopPropagation();
+        if (!e.button) {
+            this.$el.addClass('menu__item--hover');
+            e.stopPropagation();
+        }
     },
 
     mouseout: function(e) {
@@ -146,6 +153,43 @@ var MenuItemView = Backbone.View.extend({
             e.stopPropagation();
             Backbone.trigger('edit-group', this.model);
         }
+    },
+
+    dropAllowed: function(e) {
+        return ['text/group', 'text/entry'].indexOf(e.dataTransfer.types[0]) >= 0;
+    },
+
+    dragstart: function(e) {
+        e.stopPropagation();
+        if (this.model.get('drag')) {
+            e.dataTransfer.setData('text/group', this.model.id);
+            e.dataTransfer.effectAllowed = 'move';
+            DragDropInfo.dragObject = this.model;
+        }
+    },
+
+    dragover: function(e) {
+        e.stopPropagation();
+        if (this.model.get('drop') && this.dropAllowed(e)) {
+            e.preventDefault();
+            this.$el.addClass('menu__item--drag');
+        }
+    },
+
+    dragleave: function(e) {
+        e.stopPropagation();
+        if (this.model.get('drop') && this.dropAllowed(e)) {
+            this.$el.removeClass('menu__item--drag');
+        }
+    },
+
+    drop: function(e) {
+        e.stopPropagation();
+        if (this.model.get('drop') && this.dropAllowed(e)) {
+            this.$el.removeClass('menu__item--drag');
+            this.model.moveHere(DragDropInfo.dragObject);
+            Backbone.trigger('refresh');
+        }
     }
 });
 
diff --git a/app/styles/areas/_menu.scss b/app/styles/areas/_menu.scss
index 81735bd2..c6188d34 100644
--- a/app/styles/areas/_menu.scss
+++ b/app/styles/areas/_menu.scss
@@ -145,5 +145,11 @@
     .fa {
       margin-right: $base-padding-h / 2;
     }
+
+    &--drag {
+      >.menu__item-body {
+        @include th { color: action-color(); }
+      }
+    }
   }
 }
diff --git a/app/templates/list-item-short.html b/app/templates/list-item-short.html
index 66585bc1..1c1e6f55 100644
--- a/app/templates/list-item-short.html
+++ b/app/templates/list-item-short.html
@@ -1,4 +1,4 @@
-<div class="list__item <%= active ? 'list__item--active' : '' %> <%= expired ? 'list__item--expired' : '' %>" id="<%= id %>">
+<div class="list__item <%= active ? 'list__item--active' : '' %> <%= expired ? 'list__item--expired' : '' %>" id="<%= id %>" draggable="true">
     <i class="fa fa-<%= icon %> <%= color ? color+'-color' : '' %>"></i> <span
         class="list__item-title"><%- title || '(no title)' %></span><span class="list__item-descr thin"><%- description %></span>
-</div>
\ No newline at end of file
+</div>
diff --git a/app/templates/menu/menu-item.html b/app/templates/menu/menu-item.html
index 81bc8d77..ab0f1859 100644
--- a/app/templates/menu/menu-item.html
+++ b/app/templates/menu/menu-item.html
@@ -3,7 +3,7 @@
         disabled ? 'menu__item--disabled' : '' %> <%=
         options && options.length ? 'menu__item--with-options' : '' %> <%=
         cls ? cls : '' %>">
-    <div class="menu__item-body">
+    <div class="menu__item-body" <%= drag ? 'draggable="true"' : '' %>>
         <i class="menu__item-icon fa <%= icon ? 'fa-' + icon : 'menu__item-icon--no-icon' %>"></i><span
             class="menu__item-title"><%- title || '(no title)' %></span>
         <% if (options) { %>
@@ -17,5 +17,5 @@
         <% if (typeof editable !== 'undefined') { %>
         <i class="menu__item-edit fa fa-cog"></i>
         <% } %>
-    </i>
+    </div>
 </div>
diff --git a/release-notes.md b/release-notes.md
index 05a3b26b..d6babaf5 100644
--- a/release-notes.md
+++ b/release-notes.md
@@ -1,10 +1,11 @@
 Release notes
 -------------
 ##### v0.2.0 (not released yet)
-Bugfixes and new features  
+UX improvements, new features, bugfixes  
 `+` improved open page ux
 `+` keyfiles from Dropbox  
-`+` #17: option to hide entries from subgroups
+`+` #17: option to hide entries from subgroups  
+`+` #5: groups and entries arranging  
 `+` #13: increase max generated password length  
 `+` #20: default http:// for urls without protocol  
 `-` #12: cannot edit entries without title