diff --git a/packages/desktop-client/package.json b/packages/desktop-client/package.json
index 7234534ff44..50d0572774b 100644
--- a/packages/desktop-client/package.json
+++ b/packages/desktop-client/package.json
@@ -6,6 +6,10 @@
     "build"
   ],
   "devDependencies": {
+    "@dnd-kit/core": "^6.1.0",
+    "@dnd-kit/modifiers": "^7.0.0",
+    "@dnd-kit/sortable": "^8.0.0",
+    "@dnd-kit/utilities": "^3.2.2",
     "@juggle/resize-observer": "^3.1.2",
     "@playwright/test": "^1.37.1",
     "@reach/listbox": "^0.18.0",
diff --git a/packages/desktop-client/src/components/sidebar/Account.tsx b/packages/desktop-client/src/components/sidebar/Account.tsx
index dc42b4e7a78..b458a069875 100644
--- a/packages/desktop-client/src/components/sidebar/Account.tsx
+++ b/packages/desktop-client/src/components/sidebar/Account.tsx
@@ -1,6 +1,8 @@
 // @ts-strict-ignore
 import React from 'react';
 
+import { useSortable } from '@dnd-kit/sortable';
+import { CSS } from '@dnd-kit/utilities';
 import { css } from 'glamor';
 
 import { type AccountEntity } from 'loot-core/src/types/models';
@@ -9,13 +11,6 @@ import { styles, theme, type CSSProperties } from '../../style';
 import { AlignedText } from '../common/AlignedText';
 import { AnchorLink } from '../common/AnchorLink';
 import { View } from '../common/View';
-import {
-  useDraggable,
-  useDroppable,
-  DropHighlight,
-  type OnDragChangeCallback,
-  type OnDropCallback,
-} from '../sort';
 import { type Binding } from '../spreadsheet';
 import { CellValue } from '../spreadsheet/CellValue';
 
@@ -42,8 +37,6 @@ type AccountProps = {
   updated?: boolean;
   style?: CSSProperties;
   outerStyle?: CSSProperties;
-  onDragChange?: OnDragChangeCallback<{ id: string }>;
-  onDrop?: OnDropCallback;
 };
 
 export function Account({
@@ -56,92 +49,85 @@ export function Account({
   query,
   style,
   outerStyle,
-  onDragChange,
-  onDrop,
 }: AccountProps) {
-  const type = account
-    ? account.closed
-      ? 'account-closed'
-      : account.offbudget
-      ? 'account-offbudget'
-      : 'account-onbudget'
-    : 'title';
+  const {
+    isDragging,
+    attributes,
+    listeners,
+    setNodeRef,
+    transform,
+    transition,
+  } = useSortable({ id: account?.id || `sortable-account-${name}` });
 
-  const { dragRef } = useDraggable({
-    type,
-    onDragChange,
-    item: { id: account && account.id },
-    canDrag: account != null,
-  });
-
-  const { dropRef, dropPos } = useDroppable({
-    types: account ? [type] : [],
-    id: account && account.id,
-    onDrop,
-  });
+  const dndStyle = {
+    opacity: isDragging ? 0.5 : undefined,
+    transform: CSS.Transform.toString(transform),
+    transition,
+  };
 
   return (
-    <View innerRef={dropRef} style={{ flexShrink: 0, ...outerStyle }}>
-      <View>
-        <DropHighlight pos={dropPos} />
-        <View innerRef={dragRef}>
-          <AnchorLink
-            to={to}
-            style={{
-              ...accountNameStyle,
-              ...style,
-              position: 'relative',
-              borderLeft: '4px solid transparent',
-              ...(updated && { fontWeight: 700 }),
-            }}
-            activeStyle={{
-              borderColor: theme.sidebarItemAccentSelected,
-              color: theme.sidebarItemTextSelected,
-              // This is kind of a hack, but we don't ever want the account
-              // that the user is looking at to be "bolded" which means it
-              // has unread transactions. The system does mark is read and
-              // unbolds it, but it still "flashes" bold so this just
-              // ignores it if it's active
-              fontWeight: (style && style.fontWeight) || 'normal',
-              '& .dot': {
-                backgroundColor: theme.sidebarItemAccentSelected,
-                transform: 'translateX(-4.5px)',
-              },
-            }}
-          >
-            <View
-              style={{
-                position: 'absolute',
-                left: 0,
-                top: 0,
-                bottom: 0,
-                flexDirection: 'row',
-                alignItems: 'center',
-              }}
-            >
-              <div
-                className={`dot ${css({
-                  marginRight: 3,
-                  width: 5,
-                  height: 5,
-                  borderRadius: 5,
-                  backgroundColor: failed
-                    ? theme.sidebarItemBackgroundFailed
-                    : theme.sidebarItemBackgroundPositive,
-                  marginLeft: 2,
-                  transition: 'transform .3s',
-                  opacity: connected ? 1 : 0,
-                })}`}
-              />
-            </View>
-
-            <AlignedText
-              left={name}
-              right={<CellValue binding={query} type="financial" />}
-            />
-          </AnchorLink>
+    <View
+      innerRef={setNodeRef}
+      style={{ flexShrink: 0, ...outerStyle, ...dndStyle }}
+      {...attributes}
+      {...listeners}
+    >
+      <AnchorLink
+        to={to}
+        style={{
+          ...accountNameStyle,
+          ...style,
+          position: 'relative',
+          borderLeft: '4px solid transparent',
+          ...(updated && { fontWeight: 700 }),
+          ...(isDragging && { pointerEvents: 'none' }),
+        }}
+        activeStyle={{
+          borderColor: theme.sidebarItemAccentSelected,
+          color: theme.sidebarItemTextSelected,
+          // This is kind of a hack, but we don't ever want the account
+          // that the user is looking at to be "bolded" which means it
+          // has unread transactions. The system does mark is read and
+          // unbolds it, but it still "flashes" bold so this just
+          // ignores it if it's active
+          fontWeight: (style && style.fontWeight) || 'normal',
+          '& .dot': {
+            backgroundColor: theme.sidebarItemAccentSelected,
+            transform: 'translateX(-4.5px)',
+          },
+        }}
+      >
+        <View
+          style={{
+            position: 'absolute',
+            left: 0,
+            top: 0,
+            bottom: 0,
+            flexDirection: 'row',
+            alignItems: 'center',
+          }}
+        >
+          <div
+            className={`dot ${css({
+              marginRight: 3,
+              width: 5,
+              height: 5,
+              borderRadius: 5,
+              backgroundColor: failed
+                ? theme.sidebarItemBackgroundFailed
+                : theme.sidebarItemBackgroundPositive,
+              marginLeft: 2,
+              transition: 'transform .3s',
+              opacity: connected ? 1 : 0,
+            })}`}
+          />
         </View>
-      </View>
+
+        <AlignedText
+          left={name}
+          right={<CellValue binding={query} type="financial" />}
+        />
+      </AnchorLink>
     </View>
   );
 }
diff --git a/packages/desktop-client/src/components/sidebar/Accounts.tsx b/packages/desktop-client/src/components/sidebar/Accounts.tsx
index c77a9ae365c..81d8573ed5d 100644
--- a/packages/desktop-client/src/components/sidebar/Accounts.tsx
+++ b/packages/desktop-client/src/components/sidebar/Accounts.tsx
@@ -1,11 +1,25 @@
 // @ts-strict-ignore
-import React, { useState, useMemo } from 'react';
+import React, { useMemo } from 'react';
+
+import {
+  DndContext,
+  KeyboardSensor,
+  PointerSensor,
+  closestCenter,
+  useSensor,
+  useSensors,
+} from '@dnd-kit/core';
+import { restrictToVerticalAxis } from '@dnd-kit/modifiers';
+import {
+  SortableContext,
+  sortableKeyboardCoordinates,
+  verticalListSortingStrategy,
+} from '@dnd-kit/sortable';
 
 import { type AccountEntity } from 'loot-core/src/types/models';
 
 import { SvgAdd } from '../../icons/v1';
 import { View } from '../common/View';
-import { type OnDropCallback } from '../sort';
 import { type Binding } from '../spreadsheet';
 
 import { Account } from './Account';
@@ -34,7 +48,7 @@ type AccountsProps = {
   showClosedAccounts: boolean;
   onAddAccount: () => void;
   onToggleClosedAccounts: () => void;
-  onReorder: OnDropCallback;
+  onReorder: (id: string, dropPos: 'top' | 'bottom', targetId: string) => void;
 };
 
 export function Accounts({
@@ -54,7 +68,6 @@ export function Accounts({
   onToggleClosedAccounts,
   onReorder,
 }: AccountsProps) {
-  const [isDragging, setIsDragging] = useState(false);
   const offbudgetAccounts = useMemo(
     () =>
       accounts.filter(
@@ -74,100 +87,120 @@ export function Accounts({
     [accounts],
   );
 
-  function onDragChange(drag) {
-    setIsDragging(drag.state === 'start');
-  }
+  const sensors = useSensors(
+    useSensor(PointerSensor),
+    useSensor(KeyboardSensor, {
+      coordinateGetter: sortableKeyboardCoordinates,
+    }),
+  );
+
+  const onDragEnd = e => {
+    const { active, over } = e;
+
+    if (active.id !== over.id) {
+      const dropPos =
+        active.data.current.sortable.index < over.data.current.sortable.index
+          ? 'bottom'
+          : 'top';
 
-  const makeDropPadding = (i, length) => {
-    if (i === 0) {
-      return {
-        paddingTop: isDragging ? 15 : 0,
-        marginTop: isDragging ? -15 : 0,
-      };
+      onReorder(active.id, dropPos, over.id);
     }
-    return null;
   };
 
   return (
     <View>
-      <Account
-        name="All accounts"
-        to={allAccountsPath}
-        query={getAllAccountBalance()}
-        style={{ fontWeight, marginTop: 15 }}
-      />
-
-      {budgetedAccounts.length > 0 && (
-        <Account
-          name="For budget"
-          to={budgetedAccountPath}
-          query={getOnBudgetBalance()}
-          style={{ fontWeight, marginTop: 13 }}
-        />
-      )}
-
-      {budgetedAccounts.map((account, i) => (
-        <Account
-          key={account.id}
-          name={account.name}
-          account={account}
-          connected={!!account.bank}
-          failed={failedAccounts && failedAccounts.has(account.id)}
-          updated={updatedAccounts && updatedAccounts.includes(account.id)}
-          to={getAccountPath(account)}
-          query={getBalanceQuery(account)}
-          onDragChange={onDragChange}
-          onDrop={onReorder}
-          outerStyle={makeDropPadding(i, budgetedAccounts.length)}
-        />
-      ))}
-
-      {offbudgetAccounts.length > 0 && (
+      <DndContext
+        sensors={sensors}
+        collisionDetection={closestCenter}
+        modifiers={[restrictToVerticalAxis]}
+        onDragEnd={onDragEnd}
+      >
         <Account
-          name="Off budget"
-          to={offBudgetAccountPath}
-          query={getOffBudgetBalance()}
-          style={{ fontWeight, marginTop: 13 }}
+          name="All accounts"
+          to={allAccountsPath}
+          query={getAllAccountBalance()}
+          style={{ fontWeight, marginTop: 15 }}
         />
-      )}
 
-      {offbudgetAccounts.map((account, i) => (
-        <Account
-          key={account.id}
-          name={account.name}
-          account={account}
-          connected={!!account.bank}
-          failed={failedAccounts && failedAccounts.has(account.id)}
-          updated={updatedAccounts && updatedAccounts.includes(account.id)}
-          to={getAccountPath(account)}
-          query={getBalanceQuery(account)}
-          onDragChange={onDragChange}
-          onDrop={onReorder}
-          outerStyle={makeDropPadding(i, offbudgetAccounts.length)}
-        />
-      ))}
-
-      {closedAccounts.length > 0 && (
-        <SecondaryItem
-          style={{ marginTop: 15 }}
-          title={'Closed accounts' + (showClosedAccounts ? '' : '...')}
-          onClick={onToggleClosedAccounts}
-          bold
-        />
-      )}
-
-      {showClosedAccounts &&
-        closedAccounts.map((account, i) => (
+        {budgetedAccounts.length > 0 && (
+          <Account
+            name="For budget"
+            to={budgetedAccountPath}
+            query={getOnBudgetBalance()}
+            style={{ fontWeight, marginTop: 13 }}
+          />
+        )}
+        <SortableContext
+          items={budgetedAccounts}
+          strategy={verticalListSortingStrategy}
+        >
+          {budgetedAccounts.map((account, i) => (
+            <Account
+              key={account.id}
+              name={account.name}
+              account={account}
+              connected={!!account.bank}
+              failed={failedAccounts && failedAccounts.has(account.id)}
+              updated={updatedAccounts && updatedAccounts.includes(account.id)}
+              to={getAccountPath(account)}
+              query={getBalanceQuery(account)}
+            />
+          ))}
+        </SortableContext>
+
+        {offbudgetAccounts.length > 0 && (
           <Account
-            key={account.id}
-            name={account.name}
-            account={account}
-            to={getAccountPath(account)}
-            query={getBalanceQuery(account)}
-            onDragChange={onDragChange}
-            onDrop={onReorder}
+            name="Off budget"
+            to={offBudgetAccountPath}
+            query={getOffBudgetBalance()}
+            style={{ fontWeight, marginTop: 13 }}
+          />
+        )}
+
+        <SortableContext
+          items={offbudgetAccounts}
+          strategy={verticalListSortingStrategy}
+        >
+          {offbudgetAccounts.map((account, i) => (
+            <Account
+              key={account.id}
+              name={account.name}
+              account={account}
+              connected={!!account.bank}
+              failed={failedAccounts && failedAccounts.has(account.id)}
+              updated={updatedAccounts && updatedAccounts.includes(account.id)}
+              to={getAccountPath(account)}
+              query={getBalanceQuery(account)}
+            />
+          ))}
+        </SortableContext>
+
+        {closedAccounts.length > 0 && (
+          <SecondaryItem
+            style={{ marginTop: 15 }}
+            title={'Closed accounts' + (showClosedAccounts ? '' : '...')}
+            onClick={onToggleClosedAccounts}
+            bold
           />
-        ))}
+        )}
+
+        {showClosedAccounts && (
+          <SortableContext
+            items={offbudgetAccounts}
+            strategy={verticalListSortingStrategy}
+          >
+            {closedAccounts.map((account, i) => (
+              <Account
+                key={account.id}
+                name={account.name}
+                account={account}
+                to={getAccountPath(account)}
+                query={getBalanceQuery(account)}
+              />
+            ))}
+          </SortableContext>
+        )}
+      </DndContext>
 
       <SecondaryItem
         style={{
diff --git a/yarn.lock b/yarn.lock
index 669359f25af..b1c12d740ff 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -57,6 +57,10 @@ __metadata:
   version: 0.0.0-use.local
   resolution: "@actual-app/web@workspace:packages/desktop-client"
   dependencies:
+    "@dnd-kit/core": "npm:^6.1.0"
+    "@dnd-kit/modifiers": "npm:^7.0.0"
+    "@dnd-kit/sortable": "npm:^8.0.0"
+    "@dnd-kit/utilities": "npm:^3.2.2"
     "@juggle/resize-observer": "npm:^3.1.2"
     "@playwright/test": "npm:^1.37.1"
     "@reach/listbox": "npm:^0.18.0"
@@ -1742,6 +1746,68 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@dnd-kit/accessibility@npm:^3.1.0":
+  version: 3.1.0
+  resolution: "@dnd-kit/accessibility@npm:3.1.0"
+  dependencies:
+    tslib: "npm:^2.0.0"
+  peerDependencies:
+    react: ">=16.8.0"
+  checksum: 750a0537877d5dde3753e9ef59d19628b553567e90fc3e3b14a79bded08f47f4a7161bc0d003d7cd6b3bd9e10aa233628dca07d2aa5a2120cac84555ba1653d8
+  languageName: node
+  linkType: hard
+
+"@dnd-kit/core@npm:^6.1.0":
+  version: 6.1.0
+  resolution: "@dnd-kit/core@npm:6.1.0"
+  dependencies:
+    "@dnd-kit/accessibility": "npm:^3.1.0"
+    "@dnd-kit/utilities": "npm:^3.2.2"
+    tslib: "npm:^2.0.0"
+  peerDependencies:
+    react: ">=16.8.0"
+    react-dom: ">=16.8.0"
+  checksum: cf9e99763fbd9220cb6fdde2950c19fdf6248391234f5ee835601814124445fd8a6e4b3f5bc35543c802d359db8cc47f07d87046577adc41952ae981a03fbda0
+  languageName: node
+  linkType: hard
+
+"@dnd-kit/modifiers@npm:^7.0.0":
+  version: 7.0.0
+  resolution: "@dnd-kit/modifiers@npm:7.0.0"
+  dependencies:
+    "@dnd-kit/utilities": "npm:^3.2.2"
+    tslib: "npm:^2.0.0"
+  peerDependencies:
+    "@dnd-kit/core": ^6.1.0
+    react: ">=16.8.0"
+  checksum: 9ee0b7b86c23c15f6820d76ec398724597abc9d9e31cf58836e7f0b9935e33f9136a60ee9600eb27818447623f07786d4fed3f1d685d9cc6d860d8f6c5354ae3
+  languageName: node
+  linkType: hard
+
+"@dnd-kit/sortable@npm:^8.0.0":
+  version: 8.0.0
+  resolution: "@dnd-kit/sortable@npm:8.0.0"
+  dependencies:
+    "@dnd-kit/utilities": "npm:^3.2.2"
+    tslib: "npm:^2.0.0"
+  peerDependencies:
+    "@dnd-kit/core": ^6.1.0
+    react: ">=16.8.0"
+  checksum: e2e0d37ace13db2e6aceb65a803195ef29e1a33a37e7722a988d7a9c1aacce77472a93b2adcd8e6780ac98b3d5640c5481892f530177c2eb966df235726942ad
+  languageName: node
+  linkType: hard
+
+"@dnd-kit/utilities@npm:^3.2.2":
+  version: 3.2.2
+  resolution: "@dnd-kit/utilities@npm:3.2.2"
+  dependencies:
+    tslib: "npm:^2.0.0"
+  peerDependencies:
+    react: ">=16.8.0"
+  checksum: 6cfe46a5fcdaced943982e7ae66b08b89235493e106eb5bc833737c25905e13375c6ecc3aa0c357d136cb21dae3966213dba063f19b7a60b1235a29a7b05ff84
+  languageName: node
+  linkType: hard
+
 "@electron/asar@npm:^3.2.1":
   version: 3.2.4
   resolution: "@electron/asar@npm:3.2.4"
@@ -16107,6 +16173,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"tslib@npm:^2.0.0":
+  version: 2.6.2
+  resolution: "tslib@npm:2.6.2"
+  checksum: bd26c22d36736513980091a1e356378e8b662ded04204453d353a7f34a4c21ed0afc59b5f90719d4ba756e581a162ecbf93118dc9c6be5acf70aa309188166ca
+  languageName: node
+  linkType: hard
+
 "tslib@npm:^2.0.3, tslib@npm:^2.3.0, tslib@npm:^2.4.0, tslib@npm:^2.5.0":
   version: 2.5.3
   resolution: "tslib@npm:2.5.3"