diff --git a/kittens/dnd/drop.go b/kittens/dnd/drop.go
index 163841377..d17192d74 100644
--- a/kittens/dnd/drop.go
+++ b/kittens/dnd/drop.go
@@ -195,23 +195,16 @@ type drop_status struct {
 	reading_data     bool
 	is_remote_client bool
 
-	root_remote_dir           *remote_dir_entry
-	open_remote_dir           *remote_dir_entry
-	current_remote_entry      *remote_dir_entry // used for m=1 only
-	pending_remote_dirs       []*remote_dir_entry
-	remote_dir_handle_counter int32
+	root_remote_dir      *remote_dir_entry
+	open_remote_dir      *remote_dir_entry
+	current_remote_entry *remote_dir_entry // used for m=1 only
+	pending_remote_dirs  []*remote_dir_entry
 }
 
-func (d *drop_status) next_dir_handle() int32 {
-	d.remote_dir_handle_counter++
-	for d.remote_dir_handle_counter == 0 || d.remote_dir_handle_counter == 1 {
-		d.remote_dir_handle_counter++
-	}
-	return d.remote_dir_handle_counter
+func (d *drop_status) reset() {
+	*d = drop_status{cell_x: -1, cell_y: -1}
 }
 
-var reset_drop_status = drop_status{cell_x: -1, cell_y: -1}
-
 func (root *remote_dir_entry) close_tree() {
 	if root.base_dir != nil {
 		root.base_dir = root.base_dir.unref()
@@ -227,7 +220,7 @@ func (dnd *dnd) end_drop() {
 		dnd.drop_status.root_remote_dir.close_tree()
 		dnd.drop_status.root_remote_dir = nil
 	}
-	dnd.drop_status = reset_drop_status
+	dnd.drop_status.reset()
 	dnd.render_screen()
 }
 
@@ -246,7 +239,7 @@ func (dnd *dnd) all_mime_data_dropped() (err error) {
 		}
 	}
 	if len(drop_status.uri_list) == 0 {
-		*drop_status = reset_drop_status
+		dnd.drop_status.reset()
 		dnd.data_has_been_dropped = true
 		dnd.render_screen()
 		return
@@ -335,7 +328,7 @@ func (dnd *dnd) on_drop_move(cell_x, cell_y int, has_more bool, offered_mimes st
 	}
 	dnd.drop_status.in_window = cell_x > -1 && cell_y > -1
 	if !dnd.drop_status.in_window || dnd.drag_started { // disallow self drag and drop
-		dnd.drop_status = reset_drop_status
+		dnd.drop_status.reset()
 	}
 	mimes_changed := !slices.Equal(prev_status.accepted_mimes, dnd.drop_status.accepted_mimes)
 	needs_rerender = prev_status.action != dnd.drop_status.action || mimes_changed
diff --git a/kittens/dnd/main.go b/kittens/dnd/main.go
index fcb59a9a9..4b9ca61b5 100644
--- a/kittens/dnd/main.go
+++ b/kittens/dnd/main.go
@@ -130,16 +130,16 @@ func (dnd *dnd) run_loop() (err error) {
 	if dnd.lp, err = loop.New(); err != nil {
 		return err
 	}
-	dnd.drop_status = reset_drop_status
+	dnd.drop_status.reset()
 
 	dnd.lp.OnInitialize = func() (string, error) {
 		dnd.lp.AllowLineWrapping(false)
 		dnd.lp.SetCursorVisible(false)
 		if dnd.allow_drops {
-			dnd.lp.StartAcceptingDrops(dnd.opts.MachineId, slices.Collect(maps.Keys(dnd.drop_dests))...)
+			dnd.lp.StartAcceptingDrops("", slices.Collect(maps.Keys(dnd.drop_dests))...)
 		}
 		if dnd.allow_drags {
-			dnd.lp.StartOfferingDrags(dnd.opts.MachineId)
+			dnd.lp.StartOfferingDrags("")
 		}
 		dnd.lp.SetWindowTitle("Drag and drop")
 		return "", dnd.render_screen()
@@ -199,9 +199,24 @@ func (dnd *dnd) run_loop() (err error) {
 			switch string(cmd.Payload) {
 			case "PING":
 				dnd.send_test_response("PONG")
-			case "SETUP":
+			case "SETUP_LOCAL", "SETUP_REMOTE":
 				dnd.in_test_mode = true
 				dnd.lp.NoRoundtripToTerminalOnExit()
+				dnd.drop_status.reset()
+				dnd.lp.StopAcceptingDrops()
+				dnd.lp.StopOfferingDrags()
+				machine_id := ""
+				if string(cmd.Payload) == "SETUP_REMOTE" {
+					machine_id = "remote-client-for-test"
+				}
+				if dnd.allow_drops {
+					dnd.lp.StartAcceptingDrops(machine_id, slices.Collect(maps.Keys(dnd.drop_dests))...)
+				}
+				if dnd.allow_drags {
+					dnd.lp.StartOfferingDrags(machine_id)
+				}
+				dnd.render_screen()
+				dnd.send_test_response("SETUP_DONE")
 			case "GEOMETRY":
 				dnd.send_test_response(fmt.Sprintf("GEOMETRY:%d:%d:%d:%d:%d:%d:%d:%d", dnd.copy_button_region.left, dnd.copy_button_region.top, dnd.copy_button_region.width, dnd.copy_button_region.height, dnd.move_button_region.left, dnd.move_button_region.top, dnd.move_button_region.width, dnd.move_button_region.height))
 			case "DROP_MIMES":
diff --git a/kittens/dnd/main.py b/kittens/dnd/main.py
index 1f0cdf803..3e675f53a 100644
--- a/kittens/dnd/main.py
+++ b/kittens/dnd/main.py
@@ -33,12 +33,9 @@ default=disallowed
 type=choices
 Allow dropping anywhere, not just on the Copy or Move drop regions. Dropping anywhere will perform
 the specified action.
-
-
---machine-id
-The machine id to use instead of the actual machine id.
 '''.format
 
+
 help_text = '''\
 Perform drag and drop operations, even over SSH.
 
diff --git a/kitty_tests/dnd_kitten.py b/kitty_tests/dnd_kitten.py
index 9fc796d93..14e4b9f3a 100644
--- a/kitty_tests/dnd_kitten.py
+++ b/kitty_tests/dnd_kitten.py
@@ -116,19 +116,17 @@ class TestDnDKitten(BaseTest):
 
     def finish_setup(self, remote_client: bool = False, cli_args = ()):
         cmd = [kitten_exe(), 'dnd']
-        if remote_client:
-            cmd.append('--machine-id=remote-client-for-test')
         cmd += list(cli_args)
         self.pty = self.enterContext(PTY(argv=cmd, cwd=self.kitten_wd, rows=25, columns=80, window_id=self.capture.window_id))
         self.capture.pty = self.pty
         self.pty.callbacks.printbuf = self
         self.screen = self.pty.screen
-        self.pty.wait_till(lambda: bool(self.pty.callbacks.titlebuf))
+        self.send_dnd_command_to_kitten('SETUP_REMOTE' if remote_client else 'SETUP_LOCAL')
+        self.wait_for_responses('SETUP_DONE')
         self.assertTrue(self.probe_state('drop_wanted'))
         self.assertEqual(remote_client, self.probe_state('drop_is_remote_client'))
         if self.probe_state('drag_can_offer'):
             self.assertEqual(remote_client, self.probe_state('drag_is_remote_client'))
-        self.send_dnd_command_to_kitten('SETUP')
 
     def get_button_geometry(self, are_present: bool = True):
         self.send_dnd_command_to_kitten('GEOMETRY')