diff --git a/src/handlers/mod.rs b/src/handlers/mod.rs
index 29fe11be..3532078b 100644
--- a/src/handlers/mod.rs
+++ b/src/handlers/mod.rs
@@ -384,10 +384,16 @@ impl DndGrabHandler for State {
             }
         }
     }
+
+    fn cancelled(&mut self, _seat: Seat<Self>, _location: Point<f64, Logical>) {
+        trace!("dnd cancelled");
+
+        self.niri.on_maybe_dnd_ended();
+    }
 }
 
 impl crate::niri::Niri {
-    pub fn on_maybe_dnd_ended(&mut self) {
+    fn on_maybe_dnd_ended(&mut self) {
         self.layout.dnd_end();
         self.dnd_icon = None;
         // FIXME: more granular
diff --git a/src/input/mod.rs b/src/input/mod.rs
index 30cc80dc..f1ad4932 100644
--- a/src/input/mod.rs
+++ b/src/input/mod.rs
@@ -499,11 +499,6 @@ impl State {
                         .unwrap_or(false)
                     {
                         pointer.unset_grab(this, serial, time);
-
-                        // If this was a DnD, we won't get DndGrabHandler::dropped(), so we need to
-                        // call the cleanup.
-                        this.niri.on_maybe_dnd_ended();
-
                         this.niri.suppressed_keys.insert(key_code);
                         return FilterResult::Intercept(None);
                     }
diff --git a/src/niri.rs b/src/niri.rs
index 3ffb00c5..466fc509 100644
--- a/src/niri.rs
+++ b/src/niri.rs
@@ -1321,7 +1321,6 @@ impl State {
                         get_monotonic_time().as_millis() as u32,
                     );
                     self.niri.popup_grab = None;
-                    self.niri.on_maybe_dnd_ended();
                 }
             }
 
@@ -1977,7 +1976,6 @@ impl State {
         if let Some(touch) = self.niri.seat.get_touch() {
             touch.unset_grab(self);
         }
-        self.niri.on_maybe_dnd_ended();
 
         self.backend.with_primary_renderer(|renderer| {
             self.niri