diff --git a/packages/base/src/util/dragAndDrop/DragRegistry.ts b/packages/base/src/util/dragAndDrop/DragRegistry.ts
index 721769c2e1a3..6a7e177800c0 100644
--- a/packages/base/src/util/dragAndDrop/DragRegistry.ts
+++ b/packages/base/src/util/dragAndDrop/DragRegistry.ts
@@ -11,19 +11,17 @@ import {
 const MIN_MULTI_DRAG_COUNT = 2;
 
 let customDragElementPromise: Promise<HTMLElement> | null = null;
-let draggedElement: HTMLElement | null = null;
 let globalHandlersAttached = false;
 const subscribers = new Set<UI5Element>();
 const selfManagedDragAreas = new Set<HTMLElement | ShadowRoot>();
+let draggedElements: Array<EventTarget> = [];
 
 const ondragstart = (e: DragEvent) => {
 	if (!e.dataTransfer || !(e.target instanceof HTMLElement)) {
 		return;
 	}
 
-	if (!selfManagedDragAreas.has(e.target)) {
-		draggedElement = e.target;
-	}
+	draggedElements = e.composedPath();
 
 	handleMultipleDrag(e);
 };
@@ -45,22 +43,29 @@ const handleMultipleDrag = async (e: DragEvent) => {
 };
 
 const ondragend = () => {
-	draggedElement = null;
+	draggedElements = [];
 	customDragElementPromise = null;
 };
 
 const ondrop = () => {
-	draggedElement = null;
+	draggedElements = [];
 	customDragElementPromise = null;
 };
 
-const setDraggedElement = (element: HTMLElement | null) => {
-	draggedElement = element;
-};
-type SetDraggedElementFunction = typeof setDraggedElement;
+const getDraggedElement = (rootNode: Node) => {
+	// get only elements that are part of the current rootNode
+	const _draggedElements = draggedElements.filter((el): el is HTMLElement => el instanceof HTMLElement && el.getRootNode() === rootNode);
+
+	if (_draggedElements.length === 0) {
+		return null;
+	}
+
+	// special handling for TabContainer. Maybe add generic method to UI5Element and override it in TabContainer
+	if (_draggedElements[0].hasAttribute("ui5-tabcontainer")) {
+		return ((_draggedElements[0] as unknown) as { _getDraggedElement: () => HTMLElement | null })._getDraggedElement();
+	}
 
-const getDraggedElement = () => {
-	return draggedElement;
+	return _draggedElements[0];
 };
 
 const createDefaultMultiDragElement = async (count: number): Promise<HTMLElement> => {
@@ -130,16 +135,6 @@ const unsubscribe = (subscriber: UI5Element) => {
 	}
 };
 
-const addSelfManagedArea = (area: HTMLElement | ShadowRoot) => {
-	selfManagedDragAreas.add(area);
-
-	return setDraggedElement;
-};
-
-const removeSelfManagedArea = (area: HTMLElement | ShadowRoot) => {
-	selfManagedDragAreas.delete(area);
-};
-
 type DragAndDropSettings = {
 	/**
 	 * Allow cross-browser and file drag and drop.
@@ -165,8 +160,6 @@ type MoveEventDetail = {
 const DragRegistry = {
 	subscribe,
 	unsubscribe,
-	addSelfManagedArea,
-	removeSelfManagedArea,
 	getDraggedElement,
 	startMultipleDrag,
 };
@@ -176,7 +169,6 @@ export {
 	startMultipleDrag,
 };
 export type {
-	SetDraggedElementFunction,
 	DragAndDropSettings,
 	MoveEventDetail,
 };
diff --git a/packages/base/src/util/dragAndDrop/handleDragOver.ts b/packages/base/src/util/dragAndDrop/handleDragOver.ts
index ff36314cfafa..8a1acb480de5 100644
--- a/packages/base/src/util/dragAndDrop/handleDragOver.ts
+++ b/packages/base/src/util/dragAndDrop/handleDragOver.ts
@@ -17,7 +17,7 @@ type DragPosition = {
  * Handles the dragover event.
  */
 function handleDragOver<T extends UI5Element>(e: DragEvent, component: T, position: DragPosition, target: HTMLElement, settings: DragAndDropSettings = {}): DragOverResult {
-	const draggedElement = DragRegistry.getDraggedElement();
+	const draggedElement = DragRegistry.getDraggedElement(component.getRootNode());
 	const dragOverResult: DragOverResult = {
 		targetReference: null,
 		placement: null,
diff --git a/packages/base/src/util/dragAndDrop/handleDrop.ts b/packages/base/src/util/dragAndDrop/handleDrop.ts
index b7bc8bdc8ba2..a0292f951469 100644
--- a/packages/base/src/util/dragAndDrop/handleDrop.ts
+++ b/packages/base/src/util/dragAndDrop/handleDrop.ts
@@ -5,7 +5,7 @@ import DragRegistry from "./DragRegistry.js";
 
 function handleDrop<T extends UI5Element>(e: DragEvent, component: T, target: HTMLElement, placement: `${MovePlacement}`, settings: DragAndDropSettings = {}): void {
 	e.preventDefault();
-	const draggedElement = DragRegistry.getDraggedElement();
+	const draggedElement = DragRegistry.getDraggedElement(component.getRootNode());
 
 	if (!draggedElement && settings?.crossDnD) {
 		return;
diff --git a/packages/main/src/TabContainer.ts b/packages/main/src/TabContainer.ts
index c337944204e1..85454f277a6d 100644
--- a/packages/main/src/TabContainer.ts
+++ b/packages/main/src/TabContainer.ts
@@ -34,7 +34,6 @@ import Orientation from "@ui5/webcomponents-base/dist/types/Orientation.js";
 import DragRegistry from "@ui5/webcomponents-base/dist/util/dragAndDrop/DragRegistry.js";
 import handleDragOver from "@ui5/webcomponents-base/dist/util/dragAndDrop/handleDragOver.js";
 import handleDrop from "@ui5/webcomponents-base/dist/util/dragAndDrop/handleDrop.js";
-import type { SetDraggedElementFunction } from "@ui5/webcomponents-base/dist/util/dragAndDrop/DragRegistry.js";
 import longDragOverHandler from "@ui5/webcomponents-base/dist/util/dragAndDrop/longDragOverHandler.js";
 import MovePlacement from "@ui5/webcomponents-base/dist/types/MovePlacement.js";
 import {
@@ -354,7 +353,6 @@ class TabContainer extends UI5Element {
 	responsivePopover?: ResponsivePopover;
 	_hasScheduledPopoverOpen = false;
 	_handleResizeBound: () => void;
-	_setDraggedElement?: SetDraggedElementFunction;
 
 	static registerTabStyles(styles: string) {
 		tabStyles.push(styles);
@@ -434,7 +432,7 @@ class TabContainer extends UI5Element {
 	onEnterDOM() {
 		ResizeHandler.register(this._getHeader(), this._handleResizeBound);
 		DragRegistry.subscribe(this);
-		this._setDraggedElement = DragRegistry.addSelfManagedArea(this);
+
 		if (isDesktop()) {
 			this.setAttribute("desktop", "");
 		}
@@ -443,8 +441,6 @@ class TabContainer extends UI5Element {
 	onExitDOM() {
 		ResizeHandler.deregister(this._getHeader(), this._handleResizeBound);
 		DragRegistry.unsubscribe(this);
-		DragRegistry.removeSelfManagedArea(this);
-		this._setDraggedElement = undefined;
 	}
 
 	_handleResize() {
@@ -495,6 +491,11 @@ class TabContainer extends UI5Element {
 		}
 	}
 
+	_getDraggedElement() {
+		return this.shadowRoot?.querySelector<TabInStrip>("[data-moving]")?.realTabReference
+			|| this.shadowRoot?.querySelector<TabInOverflow>(`#${this._id}-overflowMenu [data-moving]`);
+	}
+
 	_onDragStart(e: DragEvent) {
 		if (!e.dataTransfer || !(e.target instanceof HTMLElement)) {
 			return;
@@ -502,8 +503,6 @@ class TabContainer extends UI5Element {
 
 		e.dataTransfer.dropEffect = "move";
 		e.dataTransfer.effectAllowed = "move";
-
-		this._setDraggedElement!((e.target as TabInStrip).realTabReference);
 	}
 
 	_onHeaderDragEnter(e: DragEvent) {
@@ -517,7 +516,7 @@ class TabContainer extends UI5Element {
 			return;
 		}
 
-		const draggedElement = DragRegistry.getDraggedElement();
+		const draggedElement = DragRegistry.getDraggedElement(this.getRootNode());
 		const closestPosition = findClosestPosition(
 			[...this._getTabStrip().querySelectorAll<HTMLElement>(`[role="tab"]:not([hidden])`)],
 			e.clientX,
@@ -625,7 +624,7 @@ class TabContainer extends UI5Element {
 
 	_onPopoverListMoveOver(e: CustomEvent<ListMoveEventDetail>) {
 		const { destination, source } = e.detail;
-		const draggedElement = DragRegistry.getDraggedElement()!;
+		const draggedElement = DragRegistry.getDraggedElement(this.getRootNode())!;
 		let destinationElement: HTMLElement = (destination.element as TabInStrip | TabSeparatorInStrip).realTabReference;
 
 		// workaround to simulate tree behavior
@@ -675,7 +674,7 @@ class TabContainer extends UI5Element {
 
 	_onPopoverListMove(e: CustomEvent<ListMoveEventDetail>) {
 		const { destination, source } = e.detail;
-		const draggedElement = DragRegistry.getDraggedElement()!;
+		const draggedElement = DragRegistry.getDraggedElement(this.getRootNode())!;
 		let destinationElement: HTMLElement = (destination.element as TabInStrip).realTabReference;
 
 		// Workaround to simulate tree behavior
@@ -715,9 +714,7 @@ class TabContainer extends UI5Element {
 	}
 
 	_onPopoverListKeyDown(e: KeyboardEvent) {
-		if (isCtrl(e)) {
-			this._setDraggedElement!((e.target as TabInOverflow).realTabReference);
-		}
+		// TODO
 	}
 
 	async _onTabStripClick(e: Event) {
diff --git a/packages/main/src/delegate/DragAndDropHandler.ts b/packages/main/src/delegate/DragAndDropHandler.ts
index ea776bd6190a..8ea9704ba4cd 100644
--- a/packages/main/src/delegate/DragAndDropHandler.ts
+++ b/packages/main/src/delegate/DragAndDropHandler.ts
@@ -51,7 +51,7 @@ class DragAndDropHandler {
 			return;
 		}
 
-		const draggedElement = DragRegistry.getDraggedElement()!;
+		const draggedElement = DragRegistry.getDraggedElement(this.component.getRootNode())!;
 		const dropIndicator = this.config.getDropIndicator()!;
 		const closestPosition = this._findClosestPosition(e);
 
@@ -98,7 +98,7 @@ class DragAndDropHandler {
 			return false;
 		}
 
-		const draggedElement = DragRegistry.getDraggedElement();
+		const draggedElement = DragRegistry.getDraggedElement(this.component.getRootNode());
 		const dropIndicator = this.config.getDropIndicator();
 
 		return !!(draggedElement && dropIndicator);
diff --git a/packages/main/test/pages/DragAndDropInShadowDom.html b/packages/main/test/pages/DragAndDropInShadowDom.html
new file mode 100644
index 000000000000..1d6f166d4890
--- /dev/null
+++ b/packages/main/test/pages/DragAndDropInShadowDom.html
@@ -0,0 +1,107 @@
+<!DOCTYPE html>
+<html>
+
+<head>
+	<meta charset="utf-8">
+	<meta name="viewport" content="width=device-width, initial-scale=1.0, maximum-scale=1.0, user-scalable=no">
+	<title>Drag and Drop in Shadow DOM</title>
+
+	<script src="%VITE_BUNDLE_PATH%" type="module"></script>
+</head>
+
+<body>
+	<section>
+		<div id="host1">
+			<template shadowrootmode="open">
+				<section>
+					<h2>#host1 - move-over</h2>
+					<div>
+						<ui5-label show-colon>source.element</ui5-label>
+						<ui5-text id="sourceElement"></ui5-text>
+					</div>
+					<div>
+						<ui5-label show-colon>destination.element</ui5-label>
+						<ui5-text id="destinationElement"></ui5-text>
+					</div>
+				</section>
+				<ui5-list id="listDnd1" header-text="List 1">
+					<ui5-li id="bg" movable>Bulgaria</ui5-li>
+					<ui5-li id="de" movable>Germany</ui5-li>
+					<ui5-li id="es" movable>Spain</ui5-li>
+				</ui5-list>
+				<div id="host2">
+					<template shadowrootmode="open">
+						<section>
+							<h2>#host2 - move-over</h2>
+							<ui5-label show-colon>source.element</ui5-label>
+							<ui5-text id="sourceElement"></ui5-text>
+							<ui5-label show-colon>destination.element</ui5-label>
+							<ui5-text id="destinationElement"></ui5-text>
+						</section>
+						<ui5-list id="listDnd2" header-text="List 2">
+							<ui5-li id="gr" movable>Greece</ui5-li>
+							<ui5-li id="ro" movable>Romania</ui5-li>
+							<ui5-li id="srb" movable>Serbia</ui5-li>
+						</ui5-list>
+					</template>
+				</div>
+			</template>
+		</div>
+	</section>
+
+	<script>
+		const host1 = document.querySelector("#host1");
+		const host2 = host1.shadowRoot.querySelector("#host2");
+
+		function applyStyles() {
+			const sheet = new CSSStyleSheet();
+
+			sheet.replaceSync(`
+				:host {
+					display: block;
+					padding: 0.5rem;
+				}
+
+				:host(#host1) {
+					border: 2px solid red;
+				}
+
+				:host(#host2) {
+					border: 2px solid green;
+				}
+
+				[ui5-text] {
+					display: inline-block;
+				}
+			`);
+
+			host1.shadowRoot.adoptedStyleSheets = [sheet];
+			host2.shadowRoot.adoptedStyleSheets = [sheet];
+		}
+
+		applyStyles();
+
+		document.getElementById("host1").addEventListener("ui5-move-over", (e) => {
+			const { destination, source } = e.detail;
+
+			document.getElementById("sourceElement").textContent = source.element.id;
+			document.getElementById("destinationElement").textContent = destination.element.id;
+		});
+
+		host1.shadowRoot.getElementById("listDnd1").addEventListener("ui5-move-over", (e) => {
+			const { destination, source } = e.detail;
+
+			host1.shadowRoot.getElementById("sourceElement").textContent = source.element.id;
+			host1.shadowRoot.getElementById("destinationElement").textContent = destination.element.id;
+		});
+
+		host2.shadowRoot.getElementById("listDnd2").addEventListener("ui5-move-over", (e) => {
+			const { destination, source } = e.detail;
+
+			host2.shadowRoot.getElementById("destinationElement").textContent = destination.element.id;
+			host2.shadowRoot.getElementById("sourceElement").textContent = source.element.id;
+		});
+	</script>
+</body>
+
+</html>
\ No newline at end of file