diff --git a/src/DockWidgetBase.cpp b/src/DockWidgetBase.cpp
index 4375a669..e58aa82d 100644
--- a/src/DockWidgetBase.cpp
+++ b/src/DockWidgetBase.cpp
@@ -66,8 +66,10 @@ public:
             Q_EMIT q->isFloatingChanged(checked);
             // When floating, we remove from the sidebar
             if (checked && q->isOpen()) {
-                if (SideBar *sb = DockRegistry::self()->sideBarForDockWidget(q))
+                if (SideBar *sb = DockRegistry::self()->sideBarForDockWidget(q)) {
+                    sb->mainWindow()->clearSideBarOverlay(/* deleteFrame=*/false);
                     sb->removeDockWidget(q);
+                }
             }
         });
 
diff --git a/src/MainWindowBase.cpp b/src/MainWindowBase.cpp
index 2ddd690e..b0d6457a 100644
--- a/src/MainWindowBase.cpp
+++ b/src/MainWindowBase.cpp
@@ -486,16 +486,25 @@ 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 b7ec660b..8c3fe797 100644
--- a/src/MainWindowBase.h
+++ b/src/MainWindowBase.h
@@ -156,7 +156,7 @@ 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/Frame.cpp b/src/private/Frame.cpp
index 030c7aef..d7d8db8b 100644
--- a/src/private/Frame.cpp
+++ b/src/private/Frame.cpp
@@ -577,6 +577,11 @@ 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 c0193d53..27a8d61e 100644
--- a/src/private/Frame_p.h
+++ b/src/private/Frame_p.h
@@ -127,6 +127,10 @@ 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.
@@ -295,7 +299,7 @@ private:
     bool event(QEvent *) override;
     TitleBar *const m_titleBar;
     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;