diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 3724f2c..8e679fd 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -60,3 +60,23 @@ jobs:
 
       - name: Build
         run: npm run build
+
+  e2e:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@3d3c42e5aac5ba805825da76410c181273ba90b1 # v7
+
+      - name: Setup Node.js
+        uses: actions/setup-node@820762786026740c76f36085b0efc47a31fe5020 # v7
+        with:
+          node-version: 24.19.0
+          cache: 'npm'
+
+      - name: Install dependencies
+        run: npm ci
+
+      - name: Install Xvfb
+        run: sudo apt-get update && sudo apt-get install -y xvfb
+
+      - name: Run e2e tests
+        run: xvfb-run -a npm run test:e2e
diff --git a/.gitignore b/.gitignore
index bbfb2cf..6970ce3 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,6 +1,8 @@
 node_modules/
 dist/
 coverage/
+out-e2e/
+.vscode-test/
 .DS_Store
 *.log
 *.vsix
diff --git a/.vscode-test.mjs b/.vscode-test.mjs
new file mode 100644
index 0000000..e615cb8
--- /dev/null
+++ b/.vscode-test.mjs
@@ -0,0 +1,10 @@
+import { defineConfig } from '@vscode/test-cli';
+
+export default defineConfig({
+    files: 'out-e2e/**/*.test.js',
+    workspaceFolder: 'test/e2e/fixtures/workspace',
+    mocha: {
+        ui: 'bdd',
+        timeout: 20000
+    }
+});
diff --git a/.vscodeignore b/.vscodeignore
index 008da00..cd26c45 100644
--- a/.vscodeignore
+++ b/.vscodeignore
@@ -3,10 +3,13 @@
 node_modules/**
 scripts/**
 test/**
+out-e2e/**
+.vscode-test/**
 extension.ts
 extension.ts.map
 tsconfig.json
 vitest.config.mts
+.vscode-test.mjs
 codecov.yml
 CLAUDE.md
 .gitignore
diff --git a/CLAUDE.md b/CLAUDE.md
index 036bf8b..dacdff3 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -20,8 +20,9 @@ drives versioning and publishing off Conventional Commit prefixes on `main`.
 
 Every change is expected to clear this bar before it's mergeable:
 
-- **CI clean.** `npm run lint` (`tsc --noEmit`), `npm run test`, and
-  `npm run build` all pass — see `.github/workflows/ci.yml`.
+- **CI clean.** `npm run lint` (`tsc --noEmit`), `npm run test`,
+  `npm run build`, and `npm run test:e2e` all pass — see
+  `.github/workflows/ci.yml`.
 - **Unit coverage ≥85%, both patch and project.** Codecov enforces this on
   every PR (`codecov.yml`: `project` and `patch`, both `target: 85%,
   threshold: 1%`), reported from `npm run test:coverage` (vitest + v8,
@@ -33,6 +34,16 @@ Every change is expected to clear this bar before it's mergeable:
   Codecov's patch gate computes, so a real gap shows up before a CI
   round-trip instead of after. Write real tests that close gaps for real —
   no padding, no vacuous assertions just to move a number.
+- **New features carry e2e coverage, not just unit tests.** Unit tests
+  (vitest, against `test/vscode-mock.ts`) cover logic in isolation;
+  `test/e2e/*.test.ts` (mocha, via `@vscode/test-cli` + `@vscode/test-electron`)
+  runs the real, built extension inside an actual VS Code Extension
+  Development Host — real command registration, real tree view, real
+  `workspaceState`. Any new user-facing command or tree behavior needs both:
+  a unit test for the logic and an e2e test exercising it end-to-end through
+  the real `vscode` API. Run locally with `npm run test:e2e` (builds the
+  extension, bundles `test/e2e/**` with esbuild, then launches the test
+  host — needs a display or `xvfb-run` on headless Linux).
 - **Security scanning clean.** CodeQL runs on every push/PR
   (`.github/workflows/codeql.yml`); `npm audit --audit-level=high` (via
   `scripts/wfb_dep_update.sh`) gates dependency updates on high/critical
diff --git a/extension.ts b/extension.ts
index 9596e0c..16d49ec 100644
--- a/extension.ts
+++ b/extension.ts
@@ -15,21 +15,70 @@ export interface Bookmark {
     workspaceFolderName: string;
     folderId: string | null;
     createdAt: number;
+    order?: number;
 }
 
 export interface BookmarkFolder {
     id: string;
     name: string;
     createdAt: number;
+    order?: number;
 }
 
-export function activate(context: vscode.ExtensionContext) {
+export const BOOKMARK_DND_MIME_TYPE = 'application/vnd.code.tree.workspace-file-bookmarks-view';
+
+/** Sorts by explicit `order` when set (ascending), falling back for items without one. Items with an order always sort before items without. */
+export function sortByOrder<T extends { order?: number }>(items: T[], fallbackCompare: (a: T, b: T) => number): T[] {
+    return items.slice().sort((a, b) => {
+        if (a.order !== undefined && b.order !== undefined) {
+            return a.order - b.order;
+        }
+        if (a.order !== undefined) {
+            return -1;
+        }
+        if (b.order !== undefined) {
+            return 1;
+        }
+        return fallbackCompare(a, b);
+    });
+}
+
+/** Computes the ordered id list for a drag-and-drop scope: `draggedId` removed then reinserted before `beforeId` (or appended when `beforeId` is null). */
+export function computeReorderedIds<T extends { id: string; order?: number }>(
+    scopeItems: T[],
+    draggedId: string,
+    beforeId: string | null,
+    fallbackCompare: (a: T, b: T) => number
+): string[] {
+    const ids = sortByOrder(scopeItems, fallbackCompare)
+        .filter(item => item.id !== draggedId)
+        .map(item => item.id);
+    const insertAt = beforeId ? ids.indexOf(beforeId) : -1;
+    if (insertAt === -1) {
+        ids.push(draggedId);
+    } else {
+        ids.splice(insertAt, 0, draggedId);
+    }
+    return ids;
+}
+
+const bookmarkFallbackCompare = (a: Bookmark, b: Bookmark) => b.createdAt - a.createdAt;
+const folderFallbackCompare = (a: BookmarkFolder, b: BookmarkFolder) => a.name.localeCompare(b.name);
+
+/** The extension's public API, returned from `activate()` — used by e2e tests to inspect state that isn't reachable through the tree view UI alone. */
+export interface ExtensionApi {
+    store: BookmarkStore;
+    provider: BookmarksTreeProvider;
+}
+
+export function activate(context: vscode.ExtensionContext): ExtensionApi {
     const store = new BookmarkStore(context);
     const provider = new BookmarksTreeProvider(store, context);
 
     const treeView = vscode.window.createTreeView('workspace-file-bookmarks-view', {
         treeDataProvider: provider,
-        showCollapseAll: true
+        showCollapseAll: true,
+        dragAndDropController: provider
     });
 
     vscode.commands.executeCommand('setContext', VIEW_MODE_CONTEXT_KEY, provider.getViewMode());
@@ -50,6 +99,8 @@ export function activate(context: vscode.ExtensionContext) {
         vscode.commands.registerCommand('workspace-file-bookmarks.setViewModeList', () => provider.setViewMode('list')),
         vscode.commands.registerCommand('workspace-file-bookmarks.setViewModeTree', () => provider.setViewMode('tree'))
     );
+
+    return { store, provider };
 }
 
 export function deactivate() {}
@@ -89,6 +140,18 @@ export class BookmarkStore {
         this.setBookmarks(this.getAllBookmarks().map(b => (b.id === id ? { ...b, label } : b)));
     }
 
+    /** Assigns sequential `order` values to the bookmarks named in `orderedIds`; bookmarks outside that set are untouched. */
+    reorderBookmarks(orderedIds: string[]) {
+        const orderById = new Map(orderedIds.map((id, index) => [id, index]));
+        this.setBookmarks(this.getAllBookmarks().map(b => (orderById.has(b.id) ? { ...b, order: orderById.get(b.id) } : b)));
+    }
+
+    /** Assigns sequential `order` values to the folders named in `orderedIds`; folders outside that set are untouched. */
+    reorderFolders(orderedIds: string[]) {
+        const orderById = new Map(orderedIds.map((id, index) => [id, index]));
+        this.setFolders(this.getAllFolders().map(f => (orderById.has(f.id) ? { ...f, order: orderById.get(f.id) } : f)));
+    }
+
     createFolder(name: string): BookmarkFolder {
         const folder: BookmarkFolder = {
             id: `${Date.now()}-${Math.random().toString(36).slice(2, 8)}`,
@@ -145,7 +208,7 @@ export class BookmarkTreeItem extends vscode.TreeItem {
 
 type TreeNode = FolderGroupItem | BookmarkTreeItem;
 
-export class BookmarksTreeProvider implements vscode.TreeDataProvider<TreeNode> {
+export class BookmarksTreeProvider implements vscode.TreeDataProvider<TreeNode>, vscode.TreeDragAndDropController<TreeNode> {
     private readonly _onDidChangeTreeData = new vscode.EventEmitter<void>();
     readonly onDidChangeTreeData = this._onDidChangeTreeData.event;
 
@@ -181,35 +244,64 @@ export class BookmarksTreeProvider implements vscode.TreeDataProvider<TreeNode>
                 return [];
             }
             const folderById = new Map(folders.map(f => [f.id, f.name]));
-            return bookmarks
-                .slice()
-                .sort((a, b) => b.createdAt - a.createdAt)
-                .map(b => new BookmarkTreeItem(b, describeBookmark(b, isMultiRoot, folderById.get(b.folderId ?? '') ?? null)));
+            return sortByOrder(bookmarks, bookmarkFallbackCompare).map(
+                b => new BookmarkTreeItem(b, describeBookmark(b, isMultiRoot, folderById.get(b.folderId ?? '') ?? null))
+            );
         }
 
         if (element instanceof FolderGroupItem) {
-            return element.bookmarks
-                .slice()
-                .sort((a, b) => b.createdAt - a.createdAt)
-                .map(b => new BookmarkTreeItem(b, describeBookmark(b, isMultiRoot, null)));
+            return sortByOrder(element.bookmarks, bookmarkFallbackCompare).map(
+                b => new BookmarkTreeItem(b, describeBookmark(b, isMultiRoot, null))
+            );
         }
 
         if (element) {
             return [];
         }
 
-        const folderNodes = folders
-            .slice()
-            .sort((a, b) => a.name.localeCompare(b.name))
-            .map(folder => new FolderGroupItem(folder, bookmarks.filter(b => b.folderId === folder.id)));
+        const folderNodes = sortByOrder(folders, folderFallbackCompare).map(
+            folder => new FolderGroupItem(folder, bookmarks.filter(b => b.folderId === folder.id))
+        );
 
-        const ungrouped = bookmarks
-            .filter(b => !b.folderId)
-            .sort((a, b) => b.createdAt - a.createdAt)
-            .map(b => new BookmarkTreeItem(b, describeBookmark(b, isMultiRoot, null)));
+        const ungrouped = sortByOrder(
+            bookmarks.filter(b => !b.folderId),
+            bookmarkFallbackCompare
+        ).map(b => new BookmarkTreeItem(b, describeBookmark(b, isMultiRoot, null)));
 
         return [...folderNodes, ...ungrouped];
     }
+
+    get dropMimeTypes(): string[] {
+        return [BOOKMARK_DND_MIME_TYPE];
+    }
+
+    get dragMimeTypes(): string[] {
+        return [BOOKMARK_DND_MIME_TYPE];
+    }
+
+    handleDrag(source: readonly TreeNode[], dataTransfer: vscode.DataTransfer): void {
+        const item = source[0];
+        if (!item) {
+            return;
+        }
+        const payload = item instanceof BookmarkTreeItem
+            ? { kind: 'bookmark' as const, id: item.bookmark.id }
+            : { kind: 'folder' as const, id: item.folder.id };
+        dataTransfer.set(BOOKMARK_DND_MIME_TYPE, new vscode.DataTransferItem(JSON.stringify(payload)));
+    }
+
+    async handleDrop(target: TreeNode | undefined, dataTransfer: vscode.DataTransfer): Promise<void> {
+        const transferItem = dataTransfer.get(BOOKMARK_DND_MIME_TYPE);
+        if (!transferItem) {
+            return;
+        }
+        const payload = JSON.parse(await transferItem.asString()) as { kind: 'bookmark' | 'folder'; id: string };
+        if (payload.kind === 'folder') {
+            dropFolder(this.store, payload.id, target);
+        } else {
+            dropBookmark(this.store, payload.id, target, this.viewMode);
+        }
+    }
 }
 
 export function describeBookmark(bookmark: Bookmark, isMultiRoot: boolean, folderName: string | null): string[] {
@@ -356,6 +448,56 @@ export async function pickFolder(store: BookmarkStore, placeHolder: string): Pro
     return folders.find(f => f.name === picked)?.id ?? undefined;
 }
 
+/** Reorders folders by moving `draggedId` to just before the folder `target` represents (or to the end if dropped elsewhere). */
+export function dropFolder(store: BookmarkStore, draggedId: string, target: TreeNode | undefined) {
+    if (target instanceof BookmarkTreeItem) {
+        return;
+    }
+    const beforeId = target instanceof FolderGroupItem ? target.folder.id : null;
+    if (beforeId === draggedId) {
+        return;
+    }
+    store.reorderFolders(computeReorderedIds(store.getAllFolders(), draggedId, beforeId, folderFallbackCompare));
+}
+
+/**
+ * Handles a bookmark dropped onto `target`: dropping onto a folder moves the bookmark into it
+ * (appended at the end); dropping onto another bookmark reorders within that bookmark's scope,
+ * moving folders too in tree view (list view reorders in place without touching folderId);
+ * dropping on empty space appends to the end of the root/list scope.
+ */
+export function dropBookmark(store: BookmarkStore, draggedId: string, target: TreeNode | undefined, viewMode: ViewMode) {
+    const dragged = store.getAllBookmarks().find(b => b.id === draggedId);
+    if (!dragged) {
+        return;
+    }
+
+    if (target instanceof FolderGroupItem) {
+        if (dragged.folderId !== target.folder.id) {
+            store.moveBookmarkToFolder(draggedId, target.folder.id);
+        }
+        const scope = store.getAllBookmarks().filter(b => b.folderId === target.folder.id);
+        store.reorderBookmarks(computeReorderedIds(scope, draggedId, null, bookmarkFallbackCompare));
+        return;
+    }
+
+    if (target instanceof BookmarkTreeItem && target.bookmark.id === draggedId) {
+        return;
+    }
+
+    const beforeId = target instanceof BookmarkTreeItem ? target.bookmark.id : null;
+    // List view is a flat scope: reorder in place without ever reassigning folderId.
+    const destinationFolderId =
+        viewMode === 'list' ? dragged.folderId : target instanceof BookmarkTreeItem ? target.bookmark.folderId : null;
+
+    if (destinationFolderId !== dragged.folderId) {
+        store.moveBookmarkToFolder(draggedId, destinationFolderId);
+    }
+
+    const scope = store.getAllBookmarks().filter(b => (viewMode === 'list' ? true : b.folderId === destinationFolderId));
+    store.reorderBookmarks(computeReorderedIds(scope, draggedId, beforeId, bookmarkFallbackCompare));
+}
+
 export async function moveToFolder(store: BookmarkStore, item: BookmarkTreeItem) {
     const folderId = await pickFolder(store, `Move "${item.bookmark.label}" to...`);
     if (folderId === undefined) {
diff --git a/package-lock.json b/package-lock.json
index a807b76..8904193 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -8,9 +8,12 @@
       "name": "workspace-file-bookmarks",
       "version": "1.5.3",
       "devDependencies": {
+        "@types/mocha": "^10.0.10",
         "@types/node": "^26.2.0",
         "@types/vscode": "^1.134.0",
         "@vitest/coverage-v8": "^4.1.11",
+        "@vscode/test-cli": "^0.0.15",
+        "@vscode/test-electron": "^3.1.0",
         "@vscode/vsce": "^3.9.2",
         "esbuild": "^0.28.2",
         "typescript": "~6.0.3",
@@ -740,6 +743,90 @@
         "node": ">=18"
       }
     },
+    "node_modules/@isaacs/cliui": {
+      "version": "8.0.2",
+      "resolved": "https://registry.npmjs.org/@isaacs/cliui/-/cliui-8.0.2.tgz",
+      "integrity": "sha512-O8jcjabXaleOG9DQ0+ARXWZBTfnP4WNAqzuiJK7ll44AmxGKv/J2M4TPjxjY3znBCfvBXFzucm1twdyFybFqEA==",
+      "dev": true,
+      "license": "ISC",
+      "dependencies": {
+        "string-width": "^5.1.2",
+        "string-width-cjs": "npm:string-width@^4.2.0",
+        "strip-ansi": "^7.0.1",
+        "strip-ansi-cjs": "npm:strip-ansi@^6.0.1",
+        "wrap-ansi": "^8.1.0",
+        "wrap-ansi-cjs": "npm:wrap-ansi@^7.0.0"
+      },
+      "engines": {
+        "node": ">=12"
+      }
+    },
+    "node_modules/@isaacs/cliui/node_modules/ansi-styles": {
+      "version": "6.2.3",
+      "resolved": "https://registry.npmjs.org/ansi-styles/-/ansi-styles-6.2.3.tgz",
+      "integrity": "sha512-4Dj6M28JB+oAH8kFkTLUo+a2jwOFkuqb3yucU0CANcRRUbxS0cP0nZYCGjcc3BNXwRIsUVmDGgzawme7zvJHvg==",
+      "dev": true,
+      "license": "MIT",
+      "engines": {
+        "node": ">=12"
+      },
+      "funding": {
+        "url": "https://github.com/chalk/ansi-styles?sponsor=1"
+      }
+    },
+    "node_modules/@isaacs/cliui/node_modules/emoji-regex": {
+      "version": "9.2.2",
+      "resolved": "https://registry.npmjs.org/emoji-regex/-/emoji-regex-9.2.2.tgz",
+      "integrity": "sha512-L18DaJsXSUk2+42pv8mLs5jJT2hqFkFE4j21wOmgbUqsZ2hL72NsUU785g9RXgo3s0ZNgVl42TiHp3ZtOv/Vyg==",
+      "dev": true,
+      "license": "MIT"
+    },
+    "node_modules/@isaacs/cliui/node_modules/string-width": {
+      "version": "5.1.2",
+      "resolved": "https://registry.npmjs.org/string-width/-/string-width-5.1.2.tgz",
+      "integrity": "sha512-HnLOCR3vjcY8beoNLtcjZ5/nxn2afmME6lhrDrebokqMap+XbeW8n9TXpPDOqdGK5qcI3oT0GKTW6wC7EMiVqA==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "eastasianwidth": "^0.2.0",
+        "emoji-regex": "^9.2.2",
+        "strip-ansi": "^7.0.1"
+      },
+      "engines": {
+        "node": ">=12"
+      },
+      "funding": {
+        "url": "https://github.com/sponsors/sindresorhus"
+      }
+    },
+    "node_modules/@isaacs/cliui/node_modules/wrap-ansi": {
+      "version": "8.1.0",
+      "resolved": "https://registry.npmjs.org/wrap-ansi/-/wrap-ansi-8.1.0.tgz",
+      "integrity": "sha512-si7QWI6zUMq56bESFvagtmzMdGOtoxfR+Sez11Mobfc7tm+VkUckk9bW2UeffTGVUbOksxmSw0AA2gs8g71NCQ==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "ansi-styles": "^6.1.0",
+        "string-width": "^5.0.1",
+        "strip-ansi": "^7.0.1"
+      },
+      "engines": {
+        "node": ">=12"
+      },
+      "funding": {
+        "url": "https://github.com/chalk/wrap-ansi?sponsor=1"
+      }
+    },
+    "node_modules/@istanbuljs/schema": {
+      "version": "0.1.6",
+      "resolved": "https://registry.npmjs.org/@istanbuljs/schema/-/schema-0.1.6.tgz",
+      "integrity": "sha512-+Sg6GCR/wy1oSmQDFq4LQDAhm3ETKnorxN+y5nbLULOR3P0c14f2Wurzj3/xqPXtasLFfHd5iRFQ7AJt4KH2cw==",
+      "dev": true,
+      "license": "MIT",
+      "engines": {
+        "node": ">=8"
+      }
+    },
     "node_modules/@jridgewell/resolve-uri": {
       "version": "3.1.2",
       "resolved": "https://registry.npmjs.org/@jridgewell/resolve-uri/-/resolve-uri-3.1.2.tgz",
@@ -816,6 +903,17 @@
         "url": "https://github.com/sponsors/Boshen"
       }
     },
+    "node_modules/@pkgjs/parseargs": {
+      "version": "0.11.0",
+      "resolved": "https://registry.npmjs.org/@pkgjs/parseargs/-/parseargs-0.11.0.tgz",
+      "integrity": "sha512-+1VkjdD0QBLPodGrJUeqarH8VAIvQODIbwh9XpP5Syisf7YoQgsJKPNFoqqLQlu+VQ/tVSshMR6loPMn8U+dPg==",
+      "dev": true,
+      "license": "MIT",
+      "optional": true,
+      "engines": {
+        "node": ">=14"
+      }
+    },
     "node_modules/@rolldown/binding-android-arm-eabi": {
       "version": "1.2.5",
       "resolved": "https://registry.npmjs.org/@rolldown/binding-android-arm-eabi/-/binding-android-arm-eabi-1.2.5.tgz",
@@ -1401,6 +1499,20 @@
       "dev": true,
       "license": "MIT"
     },
+    "node_modules/@types/istanbul-lib-coverage": {
+      "version": "2.0.6",
+      "resolved": "https://registry.npmjs.org/@types/istanbul-lib-coverage/-/istanbul-lib-coverage-2.0.6.tgz",
+      "integrity": "sha512-2QF/t/auWm0lsy8XtKVPG19v3sSOQlJe/YHZgfjb/KBBHOGSV+J2q/S671rcq9uTBrLAXmZpqJiaQbMT+zNU1w==",
+      "dev": true,
+      "license": "MIT"
+    },
+    "node_modules/@types/mocha": {
+      "version": "10.0.10",
+      "resolved": "https://registry.npmjs.org/@types/mocha/-/mocha-10.0.10.tgz",
+      "integrity": "sha512-xPyYSz1cMPnJQhl0CLMH68j3gprKZaTjG3s5Vi+fDgx+uhG9NOXwbVt52eFS8ECyXhyKcjDLCBEqBExKuiZb7Q==",
+      "dev": true,
+      "license": "MIT"
+    },
     "node_modules/@types/node": {
       "version": "26.2.0",
       "resolved": "https://registry.npmjs.org/@types/node/-/node-26.2.0.tgz",
@@ -1591,6 +1703,60 @@
         "url": "https://opencollective.com/vitest"
       }
     },
+    "node_modules/@vscode/test-cli": {
+      "version": "0.0.15",
+      "resolved": "https://registry.npmjs.org/@vscode/test-cli/-/test-cli-0.0.15.tgz",
+      "integrity": "sha512-nAxk2X79wuXS7aOhyFFhFcCqd7EBUoMesu7ZgsYE/4eFjyBMuyIweVE94BxdKH1RieN8eOz2SIrljrZt6Lk9fQ==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "@types/mocha": "^10.0.10",
+        "c8": "^11.0.0",
+        "chokidar": "^5.0.0",
+        "enhanced-resolve": "^5.24.0",
+        "glob": "^13.0.6",
+        "minimatch": "^10.2.5",
+        "mocha": "^11.7.6",
+        "supports-color": "^10.2.2",
+        "yargs": "^18.0.0"
+      },
+      "bin": {
+        "vscode-test": "out/bin.mjs"
+      },
+      "engines": {
+        "node": ">=22"
+      }
+    },
+    "node_modules/@vscode/test-cli/node_modules/supports-color": {
+      "version": "10.2.2",
+      "resolved": "https://registry.npmjs.org/supports-color/-/supports-color-10.2.2.tgz",
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     "node_modules/yallist": {
       "version": "4.0.0",
       "resolved": "https://registry.npmjs.org/yallist/-/yallist-4.0.0.tgz",
@@ -5732,6 +7224,77 @@
       "dev": true,
       "license": "ISC"
     },
+    "node_modules/yargs": {
+      "version": "18.1.0",
+      "resolved": "https://registry.npmjs.org/yargs/-/yargs-18.1.0.tgz",
+      "integrity": "sha512-2rAgRKu54VsHkqI0/tYkmluGXHD4KW7yZoycuqDQ15QOTnc2VVfy0nN/1eMhnQLO00A+dwtK20xuCnc1YGeUyg==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "cliui": "^9.0.1",
+        "escalade": "^3.1.1",
+        "get-caller-file": "^2.0.5",
+        "string-width": "^8.2.1",
+        "y18n": "^5.0.5",
+        "yargs-parser": "^22.0.0"
+      },
+      "engines": {
+        "node": "^20.19.0 || ^22.12.0 || >=23"
+      }
+    },
+    "node_modules/yargs-parser": {
+      "version": "21.1.1",
+      "resolved": "https://registry.npmjs.org/yargs-parser/-/yargs-parser-21.1.1.tgz",
+      "integrity": "sha512-tVpsJW7DdjecAiFpbIB1e3qxIQsE6NoPc5/eTdrbbIC4h0LVsWhnoa3g+m2HclBIujHzsxZ4VJVA+GUuc2/LBw==",
+      "dev": true,
+      "license": "ISC",
+      "engines": {
+        "node": ">=12"
+      }
+    },
+    "node_modules/yargs-unparser": {
+      "version": "2.0.0",
+      "resolved": "https://registry.npmjs.org/yargs-unparser/-/yargs-unparser-2.0.0.tgz",
+      "integrity": "sha512-7pRTIA9Qc1caZ0bZ6RYRGbHJthJWuakf+WmHK0rVeLkNrrGhfoabBNdue6kdINI6r4if7ocq9aD/n7xwKOdzOA==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "camelcase": "^6.0.0",
+        "decamelize": "^4.0.0",
+        "flat": "^5.0.2",
+        "is-plain-obj": "^2.1.0"
+      },
+      "engines": {
+        "node": ">=10"
+      }
+    },
+    "node_modules/yargs/node_modules/string-width": {
+      "version": "8.2.2",
+      "resolved": "https://registry.npmjs.org/string-width/-/string-width-8.2.2.tgz",
+      "integrity": "sha512-GaPUh5gfdrYzqeVNZvUfT23vYYxXzKYidUcnMtJg/3rxRV63EFZy3k6xfKlmfeJD0176lnUV/Usr3XcwSvFzpg==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "get-east-asian-width": "^1.5.0",
+        "strip-ansi": "^7.1.2"
+      },
+      "engines": {
+        "node": ">=20"
+      },
+      "funding": {
+        "url": "https://github.com/sponsors/sindresorhus"
+      }
+    },
+    "node_modules/yargs/node_modules/yargs-parser": {
+      "version": "22.0.0",
+      "resolved": "https://registry.npmjs.org/yargs-parser/-/yargs-parser-22.0.0.tgz",
+      "integrity": "sha512-rwu/ClNdSMpkSrUb+d6BRsSkLUq1fmfsY6TOpYzTwvwkg1/NRG85KBy3kq++A8LKQwX6lsu+aWad+2khvuXrqw==",
+      "dev": true,
+      "license": "ISC",
+      "engines": {
+        "node": "^20.19.0 || ^22.12.0 || >=23"
+      }
+    },
     "node_modules/yauzl": {
       "version": "3.4.0",
       "resolved": "https://registry.npmjs.org/yauzl/-/yauzl-3.4.0.tgz",
@@ -5754,6 +7317,19 @@
       "dependencies": {
         "buffer-crc32": "~0.2.3"
       }
+    },
+    "node_modules/yocto-queue": {
+      "version": "0.1.0",
+      "resolved": "https://registry.npmjs.org/yocto-queue/-/yocto-queue-0.1.0.tgz",
+      "integrity": "sha512-rVksvsnNCdJ/ohGc6xgPwyN8eheCxsiLM8mxuE/t/mOVqJewPuO1miLpTHQiRgTKCLexL4MeAFVagts7HmNZ2Q==",
+      "dev": true,
+      "license": "MIT",
+      "engines": {
+        "node": ">=10"
+      },
+      "funding": {
+        "url": "https://github.com/sponsors/sindresorhus"
+      }
     }
   }
 }
diff --git a/package.json b/package.json
index c5f7025..7803250 100644
--- a/package.json
+++ b/package.json
@@ -220,12 +220,21 @@
     "clean": "rm -rf dist",
     "lint": "tsc --noEmit",
     "test": "vitest run",
-    "test:coverage": "vitest run --coverage"
+    "test:coverage": "vitest run --coverage",
+    "pretest:e2e": "npm run build && esbuild test/e2e/*.test.ts --bundle --outdir=out-e2e --platform=node --format=cjs --external:vscode --sourcemap",
+    "test:e2e": "vscode-test"
+  },
+  "overrides": {
+    "diff": "^8.0.4",
+    "serialize-javascript": "^7.1.0"
   },
   "devDependencies": {
+    "@types/mocha": "^10.0.10",
     "@types/node": "^26.2.0",
     "@types/vscode": "^1.134.0",
     "@vitest/coverage-v8": "^4.1.11",
+    "@vscode/test-cli": "^0.0.15",
+    "@vscode/test-electron": "^3.1.0",
     "@vscode/vsce": "^3.9.2",
     "esbuild": "^0.28.2",
     "typescript": "~6.0.3",
diff --git a/test/bookmarkStore.test.ts b/test/bookmarkStore.test.ts
index 4a81a63..15f86b1 100644
--- a/test/bookmarkStore.test.ts
+++ b/test/bookmarkStore.test.ts
@@ -63,6 +63,32 @@ describe('BookmarkStore', () => {
         expect(store.getAllBookmarks()[0].label).toBe('My File');
     });
 
+    it('assigns sequential order to the named bookmarks and leaves others untouched', () => {
+        const store = newStore();
+        store.addBookmark(makeBookmark({ id: 'a', uri: 'file:///repo/src/a.ts' }));
+        store.addBookmark(makeBookmark({ id: 'b', uri: 'file:///repo/src/b.ts' }));
+        store.addBookmark(makeBookmark({ id: 'c', uri: 'file:///repo/src/c.ts' }));
+
+        store.reorderBookmarks(['c', 'a']);
+
+        const byId = new Map(store.getAllBookmarks().map(b => [b.id, b]));
+        expect(byId.get('c')?.order).toBe(0);
+        expect(byId.get('a')?.order).toBe(1);
+        expect(byId.get('b')?.order).toBeUndefined();
+    });
+
+    it('assigns sequential order to the named folders and leaves others untouched', () => {
+        const store = newStore();
+        const first = store.createFolder('First');
+        const second = store.createFolder('Second');
+
+        store.reorderFolders([second.id, first.id]);
+
+        const byId = new Map(store.getAllFolders().map(f => [f.id, f]));
+        expect(byId.get(second.id)?.order).toBe(0);
+        expect(byId.get(first.id)?.order).toBe(1);
+    });
+
     it('creates, renames, and deletes a folder', () => {
         const store = newStore();
         const folder = store.createFolder('Backend');
diff --git a/test/dragAndDrop.test.ts b/test/dragAndDrop.test.ts
new file mode 100644
index 0000000..0914d5a
--- /dev/null
+++ b/test/dragAndDrop.test.ts
@@ -0,0 +1,293 @@
+import { describe, it, expect } from 'vitest';
+import {
+    BOOKMARK_DND_MIME_TYPE,
+    BookmarkStore,
+    BookmarksTreeProvider,
+    BookmarkTreeItem,
+    FolderGroupItem,
+    computeReorderedIds,
+    dropBookmark,
+    dropFolder,
+    sortByOrder,
+    type Bookmark
+} from '../extension';
+import { createFakeContext } from './fakeContext';
+import { DataTransfer, DataTransferItem } from './vscode-mock';
+
+function makeBookmark(overrides: Partial<Bookmark> = {}): Bookmark {
+    const id = overrides.id ?? 'id-1';
+    return {
+        id,
+        uri: `file:///repo/src/${id}.ts`,
+        label: `${id}.ts`,
+        relativePath: `src/${id}.ts`,
+        workspaceFolderName: 'repo',
+        folderId: null,
+        createdAt: 0,
+        ...overrides
+    };
+}
+
+function newStore() {
+    return new BookmarkStore(createFakeContext() as any);
+}
+
+function newProvider() {
+    const context = createFakeContext();
+    const store = new BookmarkStore(context as any);
+    const provider = new BookmarksTreeProvider(store, context as any);
+    return { store, provider };
+}
+
+describe('sortByOrder', () => {
+    it('sorts by order ascending when every item has one', () => {
+        const items = [{ id: 'b', order: 1 }, { id: 'a', order: 0 }];
+        expect(sortByOrder(items, () => 0).map(i => i.id)).toEqual(['a', 'b']);
+    });
+
+    it('puts ordered items before unordered ones', () => {
+        const items = [{ id: 'unordered' }, { id: 'ordered', order: 0 }];
+        expect(sortByOrder(items, () => 0).map(i => i.id)).toEqual(['ordered', 'unordered']);
+    });
+
+    it('puts ordered items before unordered ones regardless of comparison direction', () => {
+        const items = [{ id: 'ordered', order: 0 }, { id: 'unordered' }];
+        expect(sortByOrder(items, () => 0).map(i => i.id)).toEqual(['ordered', 'unordered']);
+    });
+
+    it('falls back to the comparator when neither item has an order', () => {
+        const items: Array<{ id: string; createdAt: number; order?: number }> = [
+            { id: 'a', createdAt: 1 },
+            { id: 'b', createdAt: 2 }
+        ];
+        expect(sortByOrder(items, (a, b) => b.createdAt - a.createdAt).map(i => i.id)).toEqual(['b', 'a']);
+    });
+});
+
+describe('computeReorderedIds', () => {
+    it('appends the dragged id at the end when beforeId is null', () => {
+        const items = [{ id: 'a', order: 0 }, { id: 'b', order: 1 }];
+        expect(computeReorderedIds(items, 'a', null, () => 0)).toEqual(['b', 'a']);
+    });
+
+    it('inserts the dragged id before beforeId', () => {
+        const items = [{ id: 'a', order: 0 }, { id: 'b', order: 1 }, { id: 'c', order: 2 }];
+        expect(computeReorderedIds(items, 'c', 'a', () => 0)).toEqual(['c', 'a', 'b']);
+    });
+});
+
+describe('dropFolder', () => {
+    it('reorders a folder to just before the target folder', () => {
+        const store = newStore();
+        const a = store.createFolder('A');
+        const b = store.createFolder('B');
+        const c = store.createFolder('C');
+
+        dropFolder(store, c.id, new FolderGroupItem(a, []));
+
+        const byId = new Map(store.getAllFolders().map(f => [f.id, f]));
+        expect(byId.get(c.id)?.order).toBe(0);
+        expect(byId.get(a.id)?.order).toBe(1);
+        expect(byId.get(b.id)?.order).toBe(2);
+    });
+
+    it('moves a folder to the end when dropped on empty space', () => {
+        const store = newStore();
+        const a = store.createFolder('A');
+        const b = store.createFolder('B');
+
+        dropFolder(store, a.id, undefined);
+
+        const byId = new Map(store.getAllFolders().map(f => [f.id, f]));
+        expect(byId.get(b.id)?.order).toBe(0);
+        expect(byId.get(a.id)?.order).toBe(1);
+    });
+
+    it('does nothing when dropped onto itself', () => {
+        const store = newStore();
+        const a = store.createFolder('A');
+
+        dropFolder(store, a.id, new FolderGroupItem(a, []));
+
+        expect(store.getAllFolders()[0].order).toBeUndefined();
+    });
+
+    it('ignores a drop onto a bookmark item', () => {
+        const store = newStore();
+        const a = store.createFolder('A');
+        store.addBookmark(makeBookmark({ id: 'bm' }));
+
+        dropFolder(store, a.id, new BookmarkTreeItem(makeBookmark({ id: 'bm' }), []));
+
+        expect(store.getAllFolders()[0].order).toBeUndefined();
+    });
+});
+
+describe('dropBookmark', () => {
+    it('moves a bookmark into the target folder and appends it', () => {
+        const store = newStore();
+        const folder = store.createFolder('Backend');
+        store.addBookmark(makeBookmark({ id: 'existing', folderId: folder.id }));
+        store.addBookmark(makeBookmark({ id: 'dragged', folderId: null }));
+
+        dropBookmark(store, 'dragged', new FolderGroupItem(folder, []), 'tree');
+
+        const byId = new Map(store.getAllBookmarks().map(b => [b.id, b]));
+        expect(byId.get('dragged')?.folderId).toBe(folder.id);
+        expect(byId.get('existing')?.order).toBe(0);
+        expect(byId.get('dragged')?.order).toBe(1);
+    });
+
+    it('reorders within the same folder scope in tree view without changing folderId', () => {
+        const store = newStore();
+        const folder = store.createFolder('Backend');
+        store.addBookmark(makeBookmark({ id: 'a', folderId: folder.id }));
+        store.addBookmark(makeBookmark({ id: 'b', folderId: folder.id }));
+
+        dropBookmark(store, 'b', new BookmarkTreeItem(makeBookmark({ id: 'a', folderId: folder.id }), []), 'tree');
+
+        const byId = new Map(store.getAllBookmarks().map(bm => [bm.id, bm]));
+        expect(byId.get('b')?.folderId).toBe(folder.id);
+        expect(byId.get('b')?.order).toBe(0);
+        expect(byId.get('a')?.order).toBe(1);
+    });
+
+    it('moves folders when dropped onto a bookmark in a different folder in tree view', () => {
+        const store = newStore();
+        const source = store.createFolder('Source');
+        const dest = store.createFolder('Dest');
+        store.addBookmark(makeBookmark({ id: 'dragged', folderId: source.id }));
+        store.addBookmark(makeBookmark({ id: 'target', folderId: dest.id }));
+
+        dropBookmark(store, 'dragged', new BookmarkTreeItem(makeBookmark({ id: 'target', folderId: dest.id }), []), 'tree');
+
+        const byId = new Map(store.getAllBookmarks().map(bm => [bm.id, bm]));
+        expect(byId.get('dragged')?.folderId).toBe(dest.id);
+        expect(byId.get('dragged')?.order).toBe(0);
+        expect(byId.get('target')?.order).toBe(1);
+    });
+
+    it('reorders in place in list view without reassigning folderId', () => {
+        const store = newStore();
+        const folder = store.createFolder('Backend');
+        store.addBookmark(makeBookmark({ id: 'grouped', folderId: folder.id }));
+        store.addBookmark(makeBookmark({ id: 'root', folderId: null }));
+
+        dropBookmark(store, 'root', new BookmarkTreeItem(makeBookmark({ id: 'grouped', folderId: folder.id }), []), 'list');
+
+        const byId = new Map(store.getAllBookmarks().map(bm => [bm.id, bm]));
+        expect(byId.get('root')?.folderId).toBeNull();
+        expect(byId.get('root')?.order).toBe(0);
+        expect(byId.get('grouped')?.order).toBe(1);
+    });
+
+    it('moves a bookmark to the root and appends it when dropped on empty space in tree view', () => {
+        const store = newStore();
+        const folder = store.createFolder('Backend');
+        store.addBookmark(makeBookmark({ id: 'root-existing', folderId: null }));
+        store.addBookmark(makeBookmark({ id: 'dragged', folderId: folder.id }));
+
+        dropBookmark(store, 'dragged', undefined, 'tree');
+
+        const byId = new Map(store.getAllBookmarks().map(bm => [bm.id, bm]));
+        expect(byId.get('dragged')?.folderId).toBeNull();
+        expect(byId.get('root-existing')?.order).toBe(0);
+        expect(byId.get('dragged')?.order).toBe(1);
+    });
+
+    it('appends to the end of the flat list when dropped on empty space in list view', () => {
+        const store = newStore();
+        store.addBookmark(makeBookmark({ id: 'a' }));
+        store.addBookmark(makeBookmark({ id: 'dragged' }));
+
+        dropBookmark(store, 'dragged', undefined, 'list');
+
+        const byId = new Map(store.getAllBookmarks().map(bm => [bm.id, bm]));
+        expect(byId.get('a')?.order).toBe(0);
+        expect(byId.get('dragged')?.order).toBe(1);
+    });
+
+    it('does nothing when the dragged bookmark no longer exists', () => {
+        const store = newStore();
+        store.addBookmark(makeBookmark({ id: 'a' }));
+
+        dropBookmark(store, 'missing', undefined, 'tree');
+
+        expect(store.getAllBookmarks()[0].order).toBeUndefined();
+    });
+
+    it('does nothing when dropped onto itself', () => {
+        const store = newStore();
+        store.addBookmark(makeBookmark({ id: 'a' }));
+
+        dropBookmark(store, 'a', new BookmarkTreeItem(makeBookmark({ id: 'a' }), []), 'tree');
+
+        expect(store.getAllBookmarks()[0].order).toBeUndefined();
+    });
+});
+
+describe('BookmarksTreeProvider drag and drop', () => {
+    it('exposes the same mime type for drag and drop', () => {
+        const { provider } = newProvider();
+        expect(provider.dragMimeTypes).toEqual([BOOKMARK_DND_MIME_TYPE]);
+        expect(provider.dropMimeTypes).toEqual([BOOKMARK_DND_MIME_TYPE]);
+    });
+
+    it('handleDrag stores the bookmark id under the mime type', async () => {
+        const { provider } = newProvider();
+        const item = new BookmarkTreeItem(makeBookmark({ id: 'a' }), []);
+        const dataTransfer = new DataTransfer();
+
+        provider.handleDrag([item], dataTransfer as any);
+
+        const stored = await dataTransfer.get(BOOKMARK_DND_MIME_TYPE)?.asString();
+        expect(JSON.parse(stored ?? '{}')).toEqual({ kind: 'bookmark', id: 'a' });
+    });
+
+    it('handleDrag does nothing when the source list is empty', () => {
+        const { provider } = newProvider();
+        const dataTransfer = new DataTransfer();
+
+        provider.handleDrag([], dataTransfer as any);
+
+        expect(dataTransfer.get(BOOKMARK_DND_MIME_TYPE)).toBeUndefined();
+    });
+
+    it('handleDrop reorders folders end-to-end via the data transfer payload', async () => {
+        const { store, provider } = newProvider();
+        const a = store.createFolder('A');
+        const b = store.createFolder('B');
+        const dataTransfer = new DataTransfer();
+        dataTransfer.set(BOOKMARK_DND_MIME_TYPE, new DataTransferItem(JSON.stringify({ kind: 'folder', id: b.id })));
+
+        await provider.handleDrop(new FolderGroupItem(a, []), dataTransfer as any);
+
+        const byId = new Map(store.getAllFolders().map(f => [f.id, f]));
+        expect(byId.get(b.id)?.order).toBe(0);
+        expect(byId.get(a.id)?.order).toBe(1);
+    });
+
+    it('handleDrop reorders bookmarks end-to-end via the data transfer payload', async () => {
+        const { store, provider } = newProvider();
+        store.addBookmark(makeBookmark({ id: 'a' }));
+        store.addBookmark(makeBookmark({ id: 'b' }));
+        const dataTransfer = new DataTransfer();
+        dataTransfer.set(BOOKMARK_DND_MIME_TYPE, new DataTransferItem(JSON.stringify({ kind: 'bookmark', id: 'b' })));
+
+        await provider.handleDrop(new BookmarkTreeItem(makeBookmark({ id: 'a' }), []), dataTransfer as any);
+
+        const byId = new Map(store.getAllBookmarks().map(bm => [bm.id, bm]));
+        expect(byId.get('b')?.order).toBe(0);
+        expect(byId.get('a')?.order).toBe(1);
+    });
+
+    it('handleDrop does nothing when the data transfer has no matching payload', async () => {
+        const { store, provider } = newProvider();
+        store.addBookmark(makeBookmark({ id: 'a' }));
+        const dataTransfer = new DataTransfer();
+
+        await provider.handleDrop(undefined, dataTransfer as any);
+
+        expect(store.getAllBookmarks()[0].order).toBeUndefined();
+    });
+});
diff --git a/test/e2e/extension.e2e.test.ts b/test/e2e/extension.e2e.test.ts
new file mode 100644
index 0000000..5957403
--- /dev/null
+++ b/test/e2e/extension.e2e.test.ts
@@ -0,0 +1,106 @@
+import * as assert from 'node:assert/strict';
+import * as path from 'node:path';
+import * as vscode from 'vscode';
+import type { BookmarkTreeItem, ExtensionApi, FolderGroupItem } from '../../extension';
+
+// The running extension is loaded from dist/extension.cjs by the test host, while this
+// test file is compiled from a separate esbuild pass — so its classes are a *different*
+// module instance and `instanceof` across the two would silently always fail. Duck-type
+// tree nodes by shape instead of importing the classes as values.
+function isBookmarkNode(node: BookmarkTreeItem | FolderGroupItem): node is BookmarkTreeItem {
+    return 'bookmark' in node;
+}
+
+const EXTENSION_ID = 'Wikid82.workspace-file-bookmarks';
+
+async function getApi(): Promise<ExtensionApi> {
+    const extension = vscode.extensions.getExtension<ExtensionApi>(EXTENSION_ID);
+    assert.ok(extension, `extension "${EXTENSION_ID}" is not installed in the test host`);
+    return extension.isActive ? extension.exports : await extension.activate();
+}
+
+function fixtureUri(relativePath: string): vscode.Uri {
+    const [workspaceFolder] = vscode.workspace.workspaceFolders ?? [];
+    assert.ok(workspaceFolder, 'expected the e2e fixture workspace to be open');
+    return vscode.Uri.file(path.join(workspaceFolder.uri.fsPath, relativePath));
+}
+
+describe('Workspace File Bookmarks (e2e)', () => {
+    beforeEach(async () => {
+        const { store } = await getApi();
+        for (const bookmark of store.getAllBookmarks()) {
+            store.removeBookmark(bookmark.id);
+        }
+        for (const folder of store.getAllFolders()) {
+            store.deleteFolder(folder.id);
+        }
+    });
+
+    it('activates and registers every contributed command', async () => {
+        await getApi();
+        const commands = await vscode.commands.getCommands(true);
+
+        for (const id of [
+            'workspace-file-bookmarks.addBookmark',
+            'workspace-file-bookmarks.addBookmarkFromExplorer',
+            'workspace-file-bookmarks.addBookmarkToFolder',
+            'workspace-file-bookmarks.removeBookmark',
+            'workspace-file-bookmarks.renameBookmark',
+            'workspace-file-bookmarks.openBookmark',
+            'workspace-file-bookmarks.createFolder',
+            'workspace-file-bookmarks.renameFolder',
+            'workspace-file-bookmarks.deleteFolder',
+            'workspace-file-bookmarks.moveToFolder',
+            'workspace-file-bookmarks.openAllInFolder',
+            'workspace-file-bookmarks.setViewModeList',
+            'workspace-file-bookmarks.setViewModeTree'
+        ]) {
+            assert.ok(commands.includes(id), `expected command "${id}" to be registered`);
+        }
+    });
+
+    it('bookmarks the active editor via the addBookmark command and lists it in the tree', async () => {
+        const { store, provider } = await getApi();
+        const document = await vscode.workspace.openTextDocument(fixtureUri('src/sample-a.ts'));
+        await vscode.window.showTextDocument(document);
+
+        await vscode.commands.executeCommand('workspace-file-bookmarks.addBookmark');
+
+        const bookmarks = store.getAllBookmarks();
+        assert.equal(bookmarks.length, 1);
+        assert.equal(bookmarks[0].relativePath, 'src/sample-a.ts');
+
+        const children = provider.getChildren() as BookmarkTreeItem[];
+        assert.equal(children.length, 1);
+        assert.equal(children[0].bookmark.relativePath, 'src/sample-a.ts');
+    });
+
+    it('removes a bookmark via the removeBookmark command', async () => {
+        const { store, provider } = await getApi();
+        const document = await vscode.workspace.openTextDocument(fixtureUri('src/sample-a.ts'));
+        await vscode.window.showTextDocument(document);
+        await vscode.commands.executeCommand('workspace-file-bookmarks.addBookmark');
+        const [item] = provider.getChildren() as BookmarkTreeItem[];
+
+        await vscode.commands.executeCommand('workspace-file-bookmarks.removeBookmark', item);
+
+        assert.deepEqual(store.getAllBookmarks(), []);
+    });
+
+    it('groups a bookmark under a folder created and assigned via commands', async () => {
+        const { store, provider } = await getApi();
+        const folder = store.createFolder('Backend');
+        const document = await vscode.workspace.openTextDocument(fixtureUri('src/sample-b.ts'));
+        await vscode.window.showTextDocument(document);
+        await vscode.commands.executeCommand('workspace-file-bookmarks.addBookmark');
+        const [bookmarkItem] = (provider.getChildren() as (BookmarkTreeItem | FolderGroupItem)[]).filter(isBookmarkNode);
+
+        store.moveBookmarkToFolder(bookmarkItem.bookmark.id, folder.id);
+
+        const [folderNode] = provider.getChildren() as FolderGroupItem[];
+        assert.equal(folderNode.folder.name, 'Backend');
+        const folderChildren = provider.getChildren(folderNode) as BookmarkTreeItem[];
+        assert.equal(folderChildren.length, 1);
+        assert.equal(folderChildren[0].bookmark.relativePath, 'src/sample-b.ts');
+    });
+});
diff --git a/test/e2e/fixtures/workspace/src/sample-a.ts b/test/e2e/fixtures/workspace/src/sample-a.ts
new file mode 100644
index 0000000..cc798ff
--- /dev/null
+++ b/test/e2e/fixtures/workspace/src/sample-a.ts
@@ -0,0 +1 @@
+export const a = 1;
diff --git a/test/e2e/fixtures/workspace/src/sample-b.ts b/test/e2e/fixtures/workspace/src/sample-b.ts
new file mode 100644
index 0000000..2021030
--- /dev/null
+++ b/test/e2e/fixtures/workspace/src/sample-b.ts
@@ -0,0 +1 @@
+export const b = 2;
diff --git a/test/vscode-mock.ts b/test/vscode-mock.ts
index e4489b5..f22a211 100644
--- a/test/vscode-mock.ts
+++ b/test/vscode-mock.ts
@@ -50,6 +50,26 @@ export class ThemeIcon {
     constructor(public id: string) {}
 }
 
+export class DataTransferItem {
+    constructor(private readonly value: string) {}
+
+    asString(): Promise<string> {
+        return Promise.resolve(this.value);
+    }
+}
+
+export class DataTransfer {
+    private readonly items = new Map<string, DataTransferItem>();
+
+    set(mimeType: string, value: DataTransferItem) {
+        this.items.set(mimeType, value);
+    }
+
+    get(mimeType: string): DataTransferItem | undefined {
+        return this.items.get(mimeType);
+    }
+}
+
 export const window = {
     activeTextEditor: undefined as { document: { uri: Uri } } | undefined,
     showInformationMessage: vi.fn(),
diff --git a/tsconfig.json b/tsconfig.json
index 7b410c3..402df11 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -4,7 +4,7 @@
     "module": "preserve",
     "moduleResolution": "bundler",
     "lib": ["ES2022"],
-    "types": ["node", "vscode"],
+    "types": ["node", "vscode", "mocha"],
     "strict": true,
     "skipLibCheck": true,
     "noEmit": true
diff --git a/vitest.config.mts b/vitest.config.mts
index 8f88dbc..c76f7c3 100644
--- a/vitest.config.mts
+++ b/vitest.config.mts
@@ -8,6 +8,7 @@ export default defineConfig({
         }
     },
     test: {
+        exclude: ['**/node_modules/**', 'test/e2e/**', 'out-e2e/**', '.vscode-test/**'],
         setupFiles: ['./test/setup.ts'],
         clearMocks: true,
         coverage: {