diff --git a/README.md b/README.md
index a0c72b1d..44a47e6d 100644
--- a/README.md
+++ b/README.md
@@ -202,6 +202,7 @@ Also state which KDDW sha1, branch or version you're using, and which operating
 
 KDAB will happily accept external contributions; however, **all** contributions require a
 signed [Copyright Assignment Agreement](docs/KDDockWidgets-CopyrightAssignmentForm.pdf).
+
 This is needed so we can continue to dual-license it.
 
 Contact info@kdab.com for more information.
diff --git a/src/DockWidgetBase.cpp b/src/DockWidgetBase.cpp
index 1a74825b..cac5fa31 100644
--- a/src/DockWidgetBase.cpp
+++ b/src/DockWidgetBase.cpp
@@ -39,7 +39,6 @@
 
 using namespace KDDockWidgets;
 
-
 DockWidgetBase::DockWidgetBase(const QString &name, Options options,
                                LayoutSaverOptions layoutSaverOptions)
     : QWidgetAdapter(nullptr, Qt::Tool)
diff --git a/src/MainWindowBase.cpp b/src/MainWindowBase.cpp
index af364209..1d368f84 100644
--- a/src/MainWindowBase.cpp
+++ b/src/MainWindowBase.cpp
@@ -489,16 +489,25 @@ void MainWindowBase::toggleOverlayOnSideBar(DockWidgetBase *dw)
     }
 }
 
-void MainWindowBase::clearSideBarOverlay()
+void MainWindowBase::clearSideBarOverlay(bool deleteFrame)
 {
     if (!d->m_overlayedDockWidget)
         return;
 
     Frame *frame = d->m_overlayedDockWidget->frame();
-    d->m_overlayedDockWidget->setParent(nullptr);
-    Q_EMIT d->m_overlayedDockWidget->isOverlayedChanged(false);
-    d->m_overlayedDockWidget = nullptr;
-    delete frame;
+    frame->unoverlay();
+
+    if (deleteFrame) {
+        d->m_overlayedDockWidget->setParent(nullptr);
+        Q_EMIT d->m_overlayedDockWidget->isOverlayedChanged(false);
+        d->m_overlayedDockWidget = nullptr;
+        delete frame;
+    } else {
+        // No cleanup, just unset. When we drag the overlay it becomes a normal floating window
+        // meaning we reuse Frame. Don't delete it.
+        Q_EMIT d->m_overlayedDockWidget->isOverlayedChanged(false);
+        d->m_overlayedDockWidget = nullptr;
+    }
 }
 
 SideBar *MainWindowBase::sideBarForDockWidget(const DockWidgetBase *dw) const
diff --git a/src/MainWindowBase.h b/src/MainWindowBase.h
index c9158519..df68d17d 100644
--- a/src/MainWindowBase.h
+++ b/src/MainWindowBase.h
@@ -159,7 +159,7 @@ public:
     void toggleOverlayOnSideBar(DockWidgetBase *);
 
     /// @brief closes any overlayed dock widget. The sidebar still displays them as button.
-    void clearSideBarOverlay();
+    void clearSideBarOverlay(bool deleteFrame = true);
 
     /// @brief Returns the sidebar this dockwidget is in. nullptr if not in any.
     SideBar *sideBarForDockWidget(const DockWidgetBase *) const;
diff --git a/src/private/DockWidgetBase_p.h b/src/private/DockWidgetBase_p.h
index 0dab8fcf..67cd5da2 100644
--- a/src/private/DockWidgetBase_p.h
+++ b/src/private/DockWidgetBase_p.h
@@ -53,6 +53,14 @@ public:
             }
 
             Q_EMIT q->isFloatingChanged(checked);
+
+            // When floating, we remove from the sidebar
+            if (checked && q->isOpen()) {
+                if (SideBar *sb = DockRegistry::self()->sideBarForDockWidget(q)) {
+                    sb->mainWindow()->clearSideBarOverlay(/* deleteFrame=*/false);
+                    sb->removeDockWidget(q);
+                }
+            }
         });
 
         toggleAction->setCheckable(true);
diff --git a/src/private/Frame.cpp b/src/private/Frame.cpp
index 02aa7f3d..0af4aa4f 100644
--- a/src/private/Frame.cpp
+++ b/src/private/Frame.cpp
@@ -585,6 +585,11 @@ bool Frame::isOverlayed() const
     return m_options & FrameOption_IsOverlayed;
 }
 
+void Frame::unoverlay()
+{
+    m_options &= ~FrameOption_IsOverlayed;
+}
+
 bool Frame::isFloating() const
 {
     if (isInMainWindow())
diff --git a/src/private/Frame_p.h b/src/private/Frame_p.h
index 78e0eda7..6e328d62 100644
--- a/src/private/Frame_p.h
+++ b/src/private/Frame_p.h
@@ -131,6 +131,10 @@ public:
     ///@brief Returns whether this frame is overlayed on top of the MainWindow (auto-hide feature);
     bool isOverlayed() const;
 
+    ///@brief clears the FrameOption_IsOverlayed flag.
+    /// For example, if you drag a side-bar overlay, then it becomes a normal floating window
+    void unoverlay();
+
     /**
      * @brief Returns whether this frame is floating. A floating frame isn't attached to any other MainWindow,
      * and if it's attached to a FloatingWindow then it's considered floating if it's the only frame in that Window.
@@ -318,7 +322,7 @@ private:
     bool event(QEvent *) override;
 
     DropArea *m_dropArea = nullptr;
-    const FrameOptions m_options;
+    FrameOptions m_options = FrameOption_None;
     QPointer<Layouting::Item> m_layoutItem;
     bool m_updatingTitleBar = false;
     bool m_beingDeleted = false;
diff --git a/tests/tst_docks.cpp b/tests/tst_docks.cpp
index 012c9223..2ef4aff0 100644
--- a/tests/tst_docks.cpp
+++ b/tests/tst_docks.cpp
@@ -264,6 +264,7 @@ private Q_SLOTS:
     void tst_toggleActionOnSideBar();
     void tst_deleteOnCloseWhenOnSideBar();
     void tst_sidebarOverlayGetsHiddenOnClick();
+    void tst_floatRemovesFromSideBar();
 
     // And fix these
     void tst_floatingWindowDeleted();
@@ -5271,6 +5272,38 @@ void TestDocks::tst_sidebarOverlayGetsHiddenOnClick()
     }
 }
 
+void TestDocks::tst_floatRemovesFromSideBar()
+{
+    EnsureTopLevelsDeleted e;
+    KDDockWidgets::Config::self().setFlags(KDDockWidgets::Config::Flag_AutoHideSupport);
+
+    auto m1 = createMainWindow(QSize(1000, 1000), MainWindowOption_None, "MW1");
+    auto dw1 = new DockWidgetType(QStringLiteral("1"));
+    m1->addDockWidget(dw1, Location_OnBottom);
+
+    m1->moveToSideBar(dw1);
+    m1->overlayOnSideBar(dw1);
+
+    QVERIFY(dw1->isOverlayed());
+    QVERIFY(!dw1->isFloating());
+    QVERIFY(dw1->isInMainWindow());
+
+    dw1->setFloating(true);
+    QVERIFY(!dw1->isOverlayed());
+    QVERIFY(dw1->isFloating());
+    QVERIFY(!dw1->isInMainWindow());
+
+    QCOMPARE(dw1->sideBarLocation(), SideBarLocation::None);
+
+    // Also test a crash I got
+    m1->addDockWidget(dw1, Location_OnBottom);
+
+    auto tb = dw1->titleBar();
+    QVERIFY(tb->isVisible());
+
+    tb->onFloatClicked();
+}
+
 void TestDocks::tst_embeddedMainWindow()
 {
     EnsureTopLevelsDeleted e;