diff --git a/packages/@react-aria/dnd/src/DragManager.ts b/packages/@react-aria/dnd/src/DragManager.ts
index 0a4be7afba1..9895aaa818a 100644
--- a/packages/@react-aria/dnd/src/DragManager.ts
+++ b/packages/@react-aria/dnd/src/DragManager.ts
@@ -583,6 +583,9 @@ class DragSession {
       this.dragTarget.element.focus();
     }
 
+    // Re-trigger focus event on active element, since it will not have received it during dragging (see cancelEvent).
+    document.activeElement?.dispatchEvent(new FocusEvent('focusin', {bubbles: true}));
+
     announce(this.stringFormatter.format('dropCanceled'));
   }
 
diff --git a/packages/@react-aria/dnd/src/ListDropTargetDelegate.ts b/packages/@react-aria/dnd/src/ListDropTargetDelegate.ts
index 54227fc6f3e..45e3495ed47 100644
--- a/packages/@react-aria/dnd/src/ListDropTargetDelegate.ts
+++ b/packages/@react-aria/dnd/src/ListDropTargetDelegate.ts
@@ -101,6 +101,11 @@ export class ListDropTargetDelegate implements DropTargetDelegate {
     // Can see https://github.com/adobe/react-spectrum/pull/4210/files#diff-21e555e0c597a28215e36137f5be076a65a1e1456c92cd0fdd60f866929aae2a for additional logic
     // that may need to happen then
     let items = [...this.collection].filter(item => item.type === 'item');
+
+    if (items.length < 1) {
+      return {type: 'root'};
+    }
+
     let low = 0;
     let high = items.length;
     while (low < high) {
diff --git a/packages/react-aria-components/stories/ListBox.stories.tsx b/packages/react-aria-components/stories/ListBox.stories.tsx
index 0256660a9ee..0eeeebd2f7c 100644
--- a/packages/react-aria-components/stories/ListBox.stories.tsx
+++ b/packages/react-aria-components/stories/ListBox.stories.tsx
@@ -11,7 +11,7 @@
  */
 
 import {action} from '@storybook/addon-actions';
-import {Collection, DropIndicator, GridLayout, Header, ListBox, ListBoxItem, ListBoxProps, ListBoxSection, ListLayout, Separator, Text, useDragAndDrop, Virtualizer, WaterfallLayout} from 'react-aria-components';
+import {Collection, DragAndDropHooks, DropIndicator, GridLayout, Header, isTextDropItem, ListBox, ListBoxItem, ListBoxProps, ListBoxSection, ListLayout, Separator, Text, useDragAndDrop, Virtualizer, WaterfallLayout} from 'react-aria-components';
 import {ListBoxLoadMoreItem} from '../';
 import {LoadingSpinner, MyListBoxItem} from './utils';
 import {Meta, StoryFn, StoryObj} from '@storybook/react';
@@ -808,3 +808,87 @@ export let VirtualizedListBoxDndOnAction: ListBoxStory = () => {
   );
 };
 
+interface AlbumListBoxProps {
+  items?: Album[],
+  dragAndDropHooks?: DragAndDropHooks<Album>
+}
+
+function AlbumListBox(props: AlbumListBoxProps) {
+  const {dragAndDropHooks, items} = props;
+
+  return (
+    <ListBox
+      aria-label="Albums"
+      dragAndDropHooks={dragAndDropHooks}
+      items={items}
+      renderEmptyState={() => 'Drop items here'}
+      selectionMode="multiple">
+      <Collection items={items}>
+        {(item) => (
+          <ListBoxItem textValue={item.title}>
+            <img alt="" src={item.image} />
+            <Text slot="label">{item.title}</Text>
+            <Text slot="description">{item.artist}</Text>
+          </ListBoxItem>
+        )}
+      </Collection>
+      <ListBoxLoadMoreItem />
+    </ListBox>
+  );
+}
+
+function DraggableListBox() {
+  const list = useListData({
+    initialItems: albums
+  });
+
+  const {dragAndDropHooks} = useDragAndDrop<Album>({
+    getItems(keys, items) {
+      return items.map((item) => {
+        return {
+          album: JSON.stringify(item)
+        };
+      });
+    },
+    onDragEnd(e) {
+      const {dropOperation, isInternal, keys} = e;
+      if (dropOperation === 'move' && !isInternal) {
+        list.remove(...keys);
+      }
+    }
+  });
+
+  return <AlbumListBox dragAndDropHooks={dragAndDropHooks} items={list.items} />;
+}
+
+function DroppableListBox() {
+  const list = useListData<Album>({});
+
+  const {dragAndDropHooks} = useDragAndDrop({
+    acceptedDragTypes: ['album'],
+    async onRootDrop(e) {
+      const items = await Promise.all(
+        e.items
+          .filter(isTextDropItem)
+          .map(async (item) => JSON.parse(await item.getText('album')))
+      );
+      list.append(...items);
+    }
+  });
+
+  return <AlbumListBox dragAndDropHooks={dragAndDropHooks} items={list.items} />;
+}
+
+export const DropOntoRoot = () => (
+  <div
+    style={{
+      display: 'flex',
+      flexWrap: 'wrap',
+      gap: 12,
+      justifyContent: 'center',
+      width: '100%'
+    }}>
+    <DraggableListBox />
+    <DroppableListBox />
+  </div>
+);
diff --git a/packages/react-aria-components/stories/Table.stories.tsx b/packages/react-aria-components/stories/Table.stories.tsx
index f33e05c8ac2..e30c0b75c58 100644
--- a/packages/react-aria-components/stories/Table.stories.tsx
+++ b/packages/react-aria-components/stories/Table.stories.tsx
@@ -529,6 +529,83 @@ DndTableExample.args = {
   isLoading: false
 };
 
+function DndTableWithNoValidDropTargetsRender(): JSX.Element {
+  let list = useListData({
+    initialItems: [
+      {id: '1', type: 'file', name: 'Adobe Photoshop'},
+      {id: '2', type: 'file', name: 'Adobe XD'},
+      {id: '3', type: 'folder', name: 'Documents'},
+      {id: '4', type: 'file', name: 'Adobe InDesign'},
+      {id: '5', type: 'folder', name: 'Utilities'},
+      {id: '6', type: 'file', name: 'Adobe AfterEffects'}
+    ]
+  });
+
+  let {dragAndDropHooks} = useDragAndDrop({
+    getItems(keys) {
+      return [...keys].filter(k => !!list.getItem(k)).map((key) => {
+        let item = list.getItem(key);
+        return {
+          'custom-app-type': JSON.stringify(item),
+          'text/plain': item!.name
+        };
+      });
+    },
+    onItemDrop() {},
+    shouldAcceptItemDrop() {
+      return false;
+    }
+  });
+
+  return (
+    <Table
+      aria-label="Table (rejects all item drops)"
+      selectionMode="multiple"
+      selectedKeys={list.selectedKeys}
+      onSelectionChange={list.setSelectedKeys}
+      dragAndDropHooks={dragAndDropHooks}>
+      <TableHeader>
+        <Column />
+        <Column><MyCheckbox slot="selection" /></Column>
+        <Column>ID</Column>
+        <Column isRowHeader>Name</Column>
+        <Column>Type</Column>
+      </TableHeader>
+      <TableBody items={list.items}>
+        <Collection items={list.items}>
+          {item => (
+            <Row>
+              <Cell><Button slot="drag">≡</Button></Cell>
+              <Cell><MyCheckbox slot="selection" /></Cell>
+              <Cell>{item.id}</Cell>
+              <Cell>{item.name}</Cell>
+              <Cell>{item.type}</Cell>
+            </Row>
+            )}
+        </Collection>
+      </TableBody>
+    </Table>
+  );
+}
+
+export const DndTableWithNoValidDropTargets: TableStoryObj = {
+  render: DndTableWithNoValidDropTargetsRender,
+  name: 'Dnd Table with no valid drop targets',
+  parameters: {
+    description: {
+      data: `Tests that arrow keys work after canceling a keyboard drag when shouldAcceptItemDrop rejects all drop targets.
+      Test Instructions:
+      1. Focus on an item's drag button
+      2. Press Enter to start keyboard drag
+      3. Notice there are no valid drop targets (shouldAcceptItemDrop rejects all item drops)
+      4. Press Escape to cancel the drag
+      5. Try pressing arrow keys
+      6. Observe that focus moves (and we've exited virtual drag mode)
+    `
+    }
+  }
+};
+
 export const MyCheckbox = ({children, ...props}: CheckboxProps) => {
   return (
     <Checkbox {...props}>
diff --git a/packages/react-aria-components/stories/styles.css b/packages/react-aria-components/stories/styles.css
index 0204f31e265..6d1079ef57c 100644
--- a/packages/react-aria-components/stories/styles.css
+++ b/packages/react-aria-components/stories/styles.css
@@ -79,6 +79,12 @@
     flex-direction: row;
   }
 
+  &[data-drop-target] {
+    outline: 2px solid purple;
+    outline-offset: -2px;
+    background: rgb(from purple r g b / 20%);
+  }
+
   :global(.react-aria-MenuItem),
   :global(.react-aria-ListBoxItem) {
     position: relative;
diff --git a/packages/react-aria-components/test/ListBox.test.js b/packages/react-aria-components/test/ListBox.test.js
index a46b9fc71aa..6f7f876a9f0 100644
--- a/packages/react-aria-components/test/ListBox.test.js
+++ b/packages/react-aria-components/test/ListBox.test.js
@@ -28,6 +28,7 @@ import {
   useDragAndDrop,
   Virtualizer
 } from '../';
+import {DataTransfer, DragEvent} from '@react-aria/dnd/test/mocks';
 import {ListBoxLoadMoreItem} from '../src/ListBox';
 import React, {useEffect, useState} from 'react';
 import {User} from '@react-aria/test-utils';
@@ -1167,6 +1168,64 @@ describe('ListBox', () => {
       expect(onRootDrop).toHaveBeenCalledTimes(1);
     });
 
+    it('should support dropping into an empty ListBox with a ListBoxLoadMoreItem', () => {
+      let onRootDrop = jest.fn();
+      let onLoadMore = jest.fn();
+      
+      let EmptyListBoxWithLoader = (props) => {
+        let {dragAndDropHooks} = useDragAndDrop({
+          getItems: (keys) => [...keys].map((key) => ({'text/plain': key})),
+          ...props
+        });
+
+        return (
+          <ListBox aria-label="Empty ListBox" dragAndDropHooks={dragAndDropHooks} {...props}>
+            <Collection items={[]}>
+              {(item) => <ListBoxItem id={item.id}>{item.name}</ListBoxItem>}
+            </Collection> 
+            <ListBoxLoadMoreItem isLoading onLoadMore={onLoadMore} />
+          </ListBox>
+        );
+      };
+
+      let {getAllByRole} = render(<>
+        <DraggableListBox />
+        <EmptyListBoxWithLoader onRootDrop={onRootDrop} />
+      </>);
+
+      // Mock getBoundingClientRect for getDropTargetFromPoint
+      jest.spyOn(HTMLElement.prototype, 'getBoundingClientRect').mockImplementation(function () {
+        if (this.getAttribute('role') === 'listbox') {
+          return {top: 0, left: 0, bottom: 100, right: 100, width: 100, height: 100};
+        }
+        // Item in first listbox
+        if (this.getAttribute('data-key') === 'cat') {
+          return {top: 0, left: 0, bottom: 30, right: 100, width: 100, height: 30};
+        }
+        return {top: 0, left: 0, bottom: 0, right: 0, width: 0, height: 0};
+      });
+
+      let listboxes = getAllByRole('listbox');
+      let options = getAllByRole('option');
+      
+      // Start dragging from first listbox
+      let dataTransfer = new DataTransfer();
+      fireEvent(options[0], new DragEvent('dragstart', {dataTransfer, clientX: 5, clientY: 5}));
+      act(() => jest.runAllTimers());
+
+      // Drag over the empty listbox (which only has a loader)
+      fireEvent(listboxes[1], new DragEvent('dragenter', {dataTransfer, clientX: 50, clientY: 50}));
+      fireEvent(listboxes[1], new DragEvent('dragover', {dataTransfer, clientX: 50, clientY: 50}));
+      
+      expect(listboxes[1]).toHaveAttribute('data-drop-target', 'true');
+
+      // Drop on the empty listbox
+      fireEvent(listboxes[1], new DragEvent('drop', {dataTransfer, clientX: 50, clientY: 50}));
+      act(() => jest.runAllTimers());
+
+      expect(onRootDrop).toHaveBeenCalledTimes(1);
+    });
+
     it('should support horizontal orientation', async () => {
       let onReorder = jest.fn();
       let {getAllByRole} = render(<DraggableListBox onReorder={onReorder} orientation="horizontal" />);