diff --git a/packages/client/src/components/preview/DNDHandler.svelte b/packages/client/src/components/preview/DNDHandler.svelte
index c3630051ee..d1a4934826 100644
--- a/packages/client/src/components/preview/DNDHandler.svelte
+++ b/packages/client/src/components/preview/DNDHandler.svelte
@@ -1,6 +1,7 @@
 <script>
   import { onMount } from "svelte"
   import IndicatorSet from "./IndicatorSet.svelte"
+  import Indicator from "./Indicator.svelte"
   import DNDPositionIndicator from "./DNDPositionIndicator.svelte"
   import { builderStore } from "stores"
 
@@ -106,6 +107,7 @@
       const child = getDOMNodeForComponent(e.target)
       const bounds = child.getBoundingClientRect()
       dropInfo = {
+        name: element.dataset.name,
         droppableInside: element.dataset.droppableInside === "true",
         bounds,
       }
@@ -160,6 +162,10 @@
   prefix="Inside"
 />
 
-{#if dropMode !== "inside" && dropInfo}
-  <DNDPositionIndicator bounds={dropInfo.bounds} mode={dropMode} zIndex="940" />
-{/if}
+<DNDPositionIndicator
+  dropInfo={dropMode !== "inside" ? dropInfo : null}
+  mode={dropMode}
+  color="var(--spectrum-global-color-static-green-500)"
+  zIndex="940"
+  transition
+/>
diff --git a/packages/client/src/components/preview/DNDPositionIndicator.svelte b/packages/client/src/components/preview/DNDPositionIndicator.svelte
index d86b79b88f..d9a12231ed 100644
--- a/packages/client/src/components/preview/DNDPositionIndicator.svelte
+++ b/packages/client/src/components/preview/DNDPositionIndicator.svelte
@@ -1,33 +1,42 @@
 <script>
-  export let bounds
+  import Indicator from "./Indicator.svelte"
+
+  export let dropInfo
   export let mode
   export let zIndex
+  export let color
+  export let transition
 
-  $: x = bounds?.left
-  $: y = getYPos(bounds, mode)
-  $: width = bounds?.width
-  $: valid = bounds != null
+  $: dimensions = getDimensions(dropInfo?.bounds, mode)
+  $: prefix = mode === "above" ? "Above" : "Below"
+  $: text = `${prefix} ${dropInfo?.name}`
 
-  const getYPos = (bounds, mode) => {
+  const getDimensions = (bounds, mode) => {
     if (!bounds || !mode) {
       return null
     }
-    const { top, height } = bounds
-    return mode === "above" ? top - 2 : top + height
+    const { left, top, width, height } = bounds
+    return {
+      top: mode === "above" ? top - 4 : top + height,
+      left: left - 2,
+      width: width + 4,
+    }
   }
 </script>
 
-{#if valid}
-  <div
-    class="indicator"
-    style={`top:${y}px;left:${x}px;width:${width}px;z-index:${zIndex};`}
-  />
-{/if}
-
-<style>
-  .indicator {
-    position: absolute;
-    height: 2px;
-    background: var(--spectrum-global-color-static-green-500);
-  }
-</style>
+{#key mode}
+  {#if dimensions}
+    <Indicator
+      left={dimensions.left}
+      top={dimensions.top}
+      width={dimensions.width}
+      height={0}
+      {text}
+      {zIndex}
+      {color}
+      {transition}
+      flip={mode === "below"}
+      rounded
+    />
+  {/if}
+{/key}
diff --git a/packages/client/src/components/preview/Indicator.svelte b/packages/client/src/components/preview/Indicator.svelte
index 95364d0278..66363e3992 100644
--- a/packages/client/src/components/preview/Indicator.svelte
+++ b/packages/client/src/components/preview/Indicator.svelte
@@ -9,6 +9,9 @@
   export let color
   export let zIndex
   export let transition = false
+  export let flip = false
+
+  $: flipped = flip || top < 20
 </script>
 
 <div
@@ -18,11 +21,11 @@
   }}
   out:fade={{ duration: transition ? 130 : 0 }}
   class="indicator"
-  class:flipped={top < 20}
+  class:flipped
   style="top: {top}px; left: {left}px; width: {width}px; height: {height}px; --color: {color}; --zIndex: {zIndex};"
 >
   {#if text}
-    <div class="text" class:flipped={top < 20}>
+    <div class="text" class:flipped>
       {text}
     </div>
   {/if}
@@ -63,6 +66,7 @@
   }
   .text.flipped {
     border-top-left-radius: 4px;
+    border-bottom-left-radius: 4px;
     transform: translateY(0%);
     top: -2px;
   }