diff --git a/client/src/components/rack/ModuleBlock.tsx b/client/src/components/rack/ModuleBlock.tsx
index 05a45ee..f429907 100644
--- a/client/src/components/rack/ModuleBlock.tsx
+++ b/client/src/components/rack/ModuleBlock.tsx
@@ -119,7 +119,7 @@ export function ModuleBlock({ module }: ModuleBlockProps) {
           'relative w-full border-l-4 select-none overflow-hidden transition-opacity',
           colors.bg,
           colors.border,
-          isDragging ? 'opacity-0' : 'cursor-grab active:cursor-grabbing',
+          isDragging ? 'opacity-0 pointer-events-none' : 'cursor-grab active:cursor-grabbing',
           !isDragging && hovered && 'brightness-110',
           previewUSize !== null && 'ring-1 ring-white/30'
         )}
diff --git a/client/src/components/rack/RackColumn.tsx b/client/src/components/rack/RackColumn.tsx
index 316f8c2..5fac707 100644
--- a/client/src/components/rack/RackColumn.tsx
+++ b/client/src/components/rack/RackColumn.tsx
@@ -14,9 +14,11 @@ interface RackColumnProps {
   rack: Rack;
   /** ID of the module currently being dragged — render its slots as droppable ghosts. */
   draggingModuleId?: string | null;
+  /** Slot currently hovered by a drag — passed down to RackSlot for blue highlight. */
+  hoverSlot?: { rackId: string; uPosition: number } | null;
 }
 
-export function RackColumn({ rack, draggingModuleId }: RackColumnProps) {
+export function RackColumn({ rack, draggingModuleId, hoverSlot }: RackColumnProps) {
   const { deleteRack } = useRackStore();
   const [confirmDeleteOpen, setConfirmDeleteOpen] = useState(false);
   const [deleting, setDeleting] = useState(false);
@@ -97,17 +99,29 @@ export function RackColumn({ rack, draggingModuleId }: RackColumnProps) {
               if (renderedModuleIds.has(moduleId)) return null;
               renderedModuleIds.add(moduleId);
 
-              // If this module is being dragged, show empty droppable slot(s) instead
+              // If this module is being dragged, show empty ghost slot instead
               if (moduleId === draggingModuleId) {
                 return (
-                  <RackSlot key={`ghost-${u}`} rackId={rack.id} uPosition={u} />
+                  <RackSlot
+                    key={`ghost-${u}`}
+                    rackId={rack.id}
+                    uPosition={u}
+                    isOver={hoverSlot?.rackId === rack.id && hoverSlot?.uPosition === u}
+                  />
                 );
               }
 
               return <ModuleBlock key={module.id} module={module} />;
             }
 
-            return <RackSlot key={u} rackId={rack.id} uPosition={u} />;
+            return (
+              <RackSlot
+                key={u}
+                rackId={rack.id}
+                uPosition={u}
+                isOver={hoverSlot?.rackId === rack.id && hoverSlot?.uPosition === u}
+              />
+            );
           })}
         </div>
 
diff --git a/client/src/components/rack/RackPlanner.tsx b/client/src/components/rack/RackPlanner.tsx
index f22fb61..b195c1f 100644
--- a/client/src/components/rack/RackPlanner.tsx
+++ b/client/src/components/rack/RackPlanner.tsx
@@ -3,13 +3,12 @@ import {
   DndContext,
   DragOverlay,
   PointerSensor,
-  pointerWithin,
   closestCenter,
   useSensor,
   useSensors,
   type DragStartEvent,
   type DragEndEvent,
-  type CollisionDetection,
+  type DragMoveEvent,
 } from '@dnd-kit/core';
 import { SortableContext, horizontalListSortingStrategy, arrayMove } from '@dnd-kit/sortable';
 import { toast } from 'sonner';
@@ -30,6 +29,11 @@ interface PendingDrop {
   type: ModuleType;
 }
 
+interface HoverSlot {
+  rackId: string;
+  uPosition: number;
+}
+
 function DragOverlayItem({ type }: { type: ModuleType }) {
   const colors = MODULE_TYPE_COLORS[type];
   return (
@@ -54,41 +58,33 @@ function ModuleDragOverlay({ label }: { label: string }) {
 }
 
 /**
- * Collision detection strategy:
+ * Resolve which rack slot (if any) is under the pointer during a drag.
  *
- * Problem: SortableContext registers each rack column as a droppable. Columns
- * are ~1800px tall; individual slots are 44px. Default closestCenter picks the
- * column centre over any slot centre. pointerWithin returns multiple matches
- * sorted by registration order (columns register before their child slots), so
- * the rack column still wins.
+ * Strategy: elementFromPoint at the current pointer coordinates.
+ * - ModuleBlock has pointer-events:none when isDragging, so it is transparent.
+ * - DragOverlay has pointer-events:none natively (dnd-kit).
+ * - RackSlot divs carry data-rack-id / data-u-pos attributes that we read here.
  *
- * Fix:
- * 1. First try pointerWithin restricted to ONLY elements whose data has
- *    dropType === 'slot'. This is an exact hit-test against the 44px slot rects.
- * 2. Fall back to closestCenter over ALL droppables so rack-header reorder
- *    (which needs the sortable rack targets) still works.
+ * This is intentionally independent of dnd-kit's collision detection, which
+ * cannot reliably distinguish 44px slot elements from large (~1800px) rack
+ * column sortable containers that share the same DndContext.
  */
-const slotFirstCollision: CollisionDetection = (args) => {
-  // droppableContainers is a custom NodeMap (not a plain Array) — it only
-  // implements [Symbol.iterator], so .filter() doesn't exist on it.
-  // Convert to Array first before filtering.
-  const allContainers = Array.from(args.droppableContainers);
+function resolveSlotFromPoint(clientX: number, clientY: number): HoverSlot | null {
+  const el = document.elementFromPoint(clientX, clientY);
+  if (!el) return null;
 
-  const slotContainers = allContainers.filter(
-    (c) => c.data.current?.dropType === 'slot'
-  );
+  const slotEl = el.closest('[data-rack-id][data-u-pos]') as HTMLElement | null;
+  if (!slotEl) return null;
 
-  if (slotContainers.length > 0) {
-    const slotHits = pointerWithin({ ...args, droppableContainers: slotContainers as typeof args.droppableContainers });
-    if (slotHits.length > 0) return slotHits;
-  }
+  const rackId = slotEl.dataset.rackId;
+  const uPos = parseInt(slotEl.dataset.uPos ?? '', 10);
+  if (!rackId || isNaN(uPos)) return null;
 
-  // Nothing hit a slot — use full closestCenter for rack reorder
-  return closestCenter(args);
-};
+  return { rackId, uPosition: uPos };
+}
 
 export function RackPlanner() {
-  const { racks, loading, fetchRacks, moveModule, updateRack } = useRackStore();
+  const { racks, loading, fetchRacks, moveModule } = useRackStore();
   const canvasRef = useRef<HTMLDivElement>(null);
 
   // Drag state
@@ -97,6 +93,17 @@ export function RackPlanner() {
   const [draggingModuleId, setDraggingModuleId] = useState<string | null>(null);
   const [pendingDrop, setPendingDrop] = useState<PendingDrop | null>(null);
 
+  // hoverSlot drives the blue highlight on slots during drag.
+  // hoverSlotRef is the reliable read-path inside async handleDragEnd
+  // (avoids stale-closure issues with state).
+  const [hoverSlot, setHoverSlot] = useState<HoverSlot | null>(null);
+  const hoverSlotRef = useRef<HoverSlot | null>(null);
+
+  function updateHoverSlot(slot: HoverSlot | null) {
+    hoverSlotRef.current = slot;
+    setHoverSlot(slot);
+  }
+
   const sensors = useSensors(
     useSensor(PointerSensor, { activationConstraint: { distance: 6 } })
   );
@@ -113,40 +120,57 @@ export function RackPlanner() {
       setDraggingModuleId(data.moduleId as string);
       setActiveDragModuleLabel(data.label as string);
     }
+    updateHoverSlot(null);
+  }
+
+  function handleDragMove(event: DragMoveEvent) {
+    const data = event.active.data.current as Record<string, unknown>;
+    // Only track slot hover for module and palette drags
+    if (data?.dragType !== 'module' && data?.dragType !== 'palette') {
+      updateHoverSlot(null);
+      return;
+    }
+
+    // Compute current pointer position from the activating event + accumulated delta
+    const activatorEvent = event.activatorEvent as PointerEvent;
+    const clientX = activatorEvent.clientX + event.delta.x;
+    const clientY = activatorEvent.clientY + event.delta.y;
+
+    updateHoverSlot(resolveSlotFromPoint(clientX, clientY));
   }
 
   async function handleDragEnd(event: DragEndEvent) {
     const { active, over } = event;
+
+    // Capture hoverSlot BEFORE resetting state
+    const slot = hoverSlotRef.current;
+
     setActivePaletteType(null);
     setActiveDragModuleLabel(null);
     setDraggingModuleId(null);
-
-    if (!over) return;
+    updateHoverSlot(null);
 
     const dragData = active.data.current as Record<string, unknown>;
-    const dropData = over.data.current as Record<string, unknown> | undefined;
 
     // --- Palette → slot: open AddModuleModal pre-filled ---
-    if (dragData?.dragType === 'palette' && dropData?.dropType === 'slot') {
+    if (dragData?.dragType === 'palette' && slot) {
       setPendingDrop({
         type: dragData.type as ModuleType,
-        rackId: dropData.rackId as string,
-        uPosition: dropData.uPosition as number,
+        rackId: slot.rackId,
+        uPosition: slot.uPosition,
       });
       return;
     }
 
     // --- Module → slot: move the module ---
-    if (dragData?.dragType === 'module' && dropData?.dropType === 'slot') {
+    if (dragData?.dragType === 'module' && slot) {
       const moduleId = dragData.moduleId as string;
-      const targetRackId = dropData.rackId as string;
-      const targetUPosition = dropData.uPosition as number;
 
       // No-op if dropped on own position
-      if (dragData.fromRackId === targetRackId && dragData.fromUPosition === targetUPosition) return;
+      if (dragData.fromRackId === slot.rackId && dragData.fromUPosition === slot.uPosition) return;
 
       try {
-        await moveModule(moduleId, targetRackId, targetUPosition);
+        await moveModule(moduleId, slot.rackId, slot.uPosition);
         toast.success('Module moved');
       } catch (err) {
         toast.error(err instanceof Error ? err.message : 'Move failed');
@@ -155,24 +179,26 @@ export function RackPlanner() {
     }
 
     // --- Rack header → rack header: reorder racks ---
-    if (dragData?.dragType === 'rack' && over.data.current?.dragType === 'rack') {
+    if (!over) return;
+    const dropData = over.data.current as Record<string, unknown> | undefined;
+    if (dragData?.dragType === 'rack' && dropData?.dragType === 'rack') {
       const oldIndex = racks.findIndex((r) => r.id === active.id);
       const newIndex = racks.findIndex((r) => r.id === over.id);
       if (oldIndex === newIndex) return;
 
       const reordered = arrayMove(racks, oldIndex, newIndex);
-      // Persist new displayOrder values
       try {
         await Promise.all(
           reordered.map((rack, idx) =>
-            rack.displayOrder !== idx ? apiClient.racks.update(rack.id, { displayOrder: idx }) : Promise.resolve(rack)
+            rack.displayOrder !== idx
+              ? apiClient.racks.update(rack.id, { displayOrder: idx })
+              : Promise.resolve(rack)
           )
         );
-        // Refresh store to sync
         await fetchRacks();
       } catch {
         toast.error('Failed to save rack order');
-        await fetchRacks(); // rollback
+        await fetchRacks();
       }
     }
   }
@@ -180,7 +206,13 @@ export function RackPlanner() {
   const rackIds = racks.map((r) => r.id);
 
   return (
-    <DndContext sensors={sensors} collisionDetection={slotFirstCollision} onDragStart={handleDragStart} onDragEnd={handleDragEnd}>
+    <DndContext
+      sensors={sensors}
+      collisionDetection={closestCenter}
+      onDragStart={handleDragStart}
+      onDragMove={handleDragMove}
+      onDragEnd={handleDragEnd}
+    >
       <div className="flex flex-col h-screen bg-[#0f1117]">
         <RackToolbar rackCanvasRef={canvasRef} />
 
@@ -214,7 +246,12 @@ export function RackPlanner() {
                   style={{ background: '#0f1117' }}
                 >
                   {racks.map((rack) => (
-                    <RackColumn key={rack.id} rack={rack} draggingModuleId={draggingModuleId} />
+                    <RackColumn
+                      key={rack.id}
+                      rack={rack}
+                      draggingModuleId={draggingModuleId}
+                      hoverSlot={hoverSlot}
+                    />
                   ))}
                 </div>
               </SortableContext>
diff --git a/client/src/components/rack/RackSlot.tsx b/client/src/components/rack/RackSlot.tsx
index 2dd15b8..afcdf37 100644
--- a/client/src/components/rack/RackSlot.tsx
+++ b/client/src/components/rack/RackSlot.tsx
@@ -1,5 +1,4 @@
 import { useState } from 'react';
-import { useDroppable } from '@dnd-kit/core';
 import { Plus } from 'lucide-react';
 import { U_HEIGHT_PX } from '../../lib/constants';
 import { cn } from '../../lib/utils';
@@ -8,20 +7,19 @@ import { AddModuleModal } from '../modals/AddModuleModal';
 interface RackSlotProps {
   rackId: string;
   uPosition: number;
+  /** Passed from RackPlanner via RackColumn — true when a drag is hovering this slot */
+  isOver?: boolean;
 }
 
-export function RackSlot({ rackId, uPosition }: RackSlotProps) {
+export function RackSlot({ rackId, uPosition, isOver = false }: RackSlotProps) {
   const [addModuleOpen, setAddModuleOpen] = useState(false);
 
-  const { setNodeRef, isOver } = useDroppable({
-    id: `slot-${rackId}-${uPosition}`,
-    data: { dropType: 'slot', rackId, uPosition },
-  });
-
   return (
     <>
       <div
-        ref={setNodeRef}
+        // Data attributes let RackPlanner's onDragMove identify this slot via elementFromPoint
+        data-rack-id={rackId}
+        data-u-pos={String(uPosition)}
         className={cn(
           'w-full border border-dashed transition-colors group cursor-pointer flex items-center justify-between px-2',
           isOver