To reproduce: Add a RadListView with some items. The issue appears sporadically and there are no exact steps to reproduce known, it appears to be very environment specific. You simply need to change the theme and drag an item. Themes which have been reported: Aqua Office2007Black Office2007Silver Office2010Blue VisualStudio2012Dark VisualStudi2012Light Windows7 Windows8 Workaround: Use the following custom RadListView: public class MyListView : RadListView { protected override RadListViewElement CreateListViewElement() { return new MyListViewElement(); } } public class MyListViewElement : RadListViewElement { protected override BaseListViewElement CreateViewElement() { if (this.ViewType == ListViewType.IconsView) { return new MyIconsListViewElement(this); } return base.CreateViewElement(); } } public class MyIconsListViewElement : IconListViewElement { public MyIconsListViewElement(RadListViewElement owner) : base(owner) { } public override Point GetDragHintLocation(BaseListViewVisualItem visualItem, Point mouseLocation) { if (this.DragHint == null) { return Point.Empty; } Rectangle itemBounds = visualItem.ElementTree.Control.RectangleToScreen(visualItem.ControlBoundingRectangle); Padding margins = Padding.Empty; int imageHeight = 1; RadImageShape imageShape = this.DragHint; if (imageShape != null) { imageHeight = imageShape.Image.Size.Height; margins = imageShape.Margins; } else { return Point.Empty; } bool isDropAtTop = mouseLocation.Y <= visualItem.Size.Height / 2; int y = isDropAtTop ? itemBounds.Y : itemBounds.Bottom; return new Point(itemBounds.X - margins.Left, y - imageHeight / 2); } }