diff --git a/crates/ui-egui/src/prefs_live.rs b/crates/ui-egui/src/prefs_live.rs
index ee222c892..cc283635f 100644
--- a/crates/ui-egui/src/prefs_live.rs
+++ b/crates/ui-egui/src/prefs_live.rs
@@ -86,7 +86,17 @@ pub fn dropped_files(app: &mut EffectcraftApp, ui: &egui::Ui, bounds: Rect) {
             .find(|e| e.id == "viewer.area")
             .map(|e| Rect::from_min_size(egui::pos2(e.rect[0], e.rect[1]), egui::vec2(e.rect[2], e.rect[3])));
 
-        let at = if proj.is_empty() {
+        // Dropping a file on the Timeline adds it to the composition the panel shows, as it does
+        // on the viewer (#2588); the import decides the layer's position.
+        let over_timeline = ctx.input(|i| i.pointer.hover_pos()).is_some_and(|p| {
+            app.auto
+                .elements
+                .iter()
+                .find(|e| e.id == "panel.Timeline")
+                .is_some_and(|e| Rect::from_min_size(egui::pos2(e.rect[0], e.rect[1]), egui::vec2(e.rect[2], e.rect[3])).contains(p))
+        });
+
+        let at = if proj.is_empty() && !over_timeline {
             ctx.input(|i| i.pointer.hover_pos()).filter(|p| viewer.is_some_and(|v| v.contains(*p))).and_then(|p| crate::panels::viewer::screen_to_comp(&ctx, p))
         } else {
             None
@@ -101,7 +111,7 @@ pub fn dropped_files(app: &mut EffectcraftApp, ui: &egui::Ui, bounds: Rect) {
         let mut params = json!({
             "paths": rest,
             "drag": true,
-            "addToComp": at.is_some(),
+            "addToComp": at.is_some() || over_timeline,
             "position": at,
             "background": true
         });
diff --git a/crates/ui-egui/tests/it/ui_drag_drop.rs b/crates/ui-egui/tests/it/ui_drag_drop.rs
index 5608dfcf3..42d0273f8 100644
--- a/crates/ui-egui/tests/it/ui_drag_drop.rs
+++ b/crates/ui-egui/tests/it/ui_drag_drop.rs
@@ -501,6 +501,19 @@ fn dropped_file_on_viewer_imports_and_adds_layer_at_pointer() {
     assert!((p[0] - 80.0).abs() <= tol && (p[1] - 45.0).abs() <= tol, "{p:?}");
 }
 
+/// #2588: a file dropped on the Timeline joins the composition the panel shows, as it does on the
+/// viewer; the import places the layer.
+#[test]
+fn dropped_file_on_the_timeline_becomes_a_layer() {
+    let (mut h, _) = harness();
+    h.state_mut().session.importer = Some(Arc::new(Gated { started: AtomicUsize::new(0), allow: Arc::new(AtomicUsize::new(usize::MAX)) }));
+    h.event(Event::PointerMoved(rect(&h, "panel.Timeline").center()));
+    h.step();
+    h.input_mut().dropped_files.push(Arc::new(Dropped(std::env::temp_dir().join("timeline-drop.mp4"))));
+    h.run_steps(2);
+    step_until(&mut h, |h| h.state().session.active_comp().is_some_and(|c| c.layers.iter().any(|l| l.name == "timeline-drop.mp4")));
+}
+
 /// #678: a dropped Photoshop file asks how to import it, as File ▸ Import ▸ File… does; the
 /// Import Kind starts at Settings ▸ Import ▸ Default Drag Import As, and OK imports the drop.
 #[test]