diff --git a/widget/gtk/nsClipboardWayland.cpp b/widget/gtk/nsClipboardWayland.cpp
--- a/widget/gtk/nsClipboardWayland.cpp
+++ b/widget/gtk/nsClipboardWayland.cpp
@@ -538,7 +538,6 @@
   }
 
   LOGDRAG(("nsWindow data_device_enter for GtkWidget %p\n", (void*)gtkWidget));
-
   dragContext->DropDataEnter(gtkWidget, time, wl_fixed_to_int(x_fixed),
                              wl_fixed_to_int(y_fixed));
 }
@@ -550,6 +549,8 @@
   nsWaylandDragContext* dropContext = context->GetDragContext();
   WindowDragLeaveHandler(dropContext->GetWidget());
 
+  LOGDRAG(("nsWindow data_device_leave for GtkWidget %p\n",
+           (void*)dropContext->GetWidget()));
   context->ClearDragAndDropDataOffer();
 }
 
@@ -565,6 +566,8 @@
   nscoord y = wl_fixed_to_int(y_fixed);
   dropContext->DropMotion(time, x, y);
 
+  LOGDRAG(("nsWindow data_device_motion for GtkWidget %p\n",
+           (void*)dropContext->GetWidget()));
   WindowDragMotionHandler(dropContext->GetWidget(), nullptr, dropContext, x, y,
                           time);
 }
@@ -578,6 +581,8 @@
   nscoord x, y;
   dropContext->GetLastDropInfo(&time, &x, &y);
 
+  LOGDRAG(("nsWindow data_device_drop GtkWidget %p\n",
+           (void*)dropContext->GetWidget()));
   WindowDragDropHandler(dropContext->GetWidget(), nullptr, dropContext, x, y,
                         time);
 }
diff --git a/widget/gtk/nsDragService.cpp b/widget/gtk/nsDragService.cpp
--- a/widget/gtk/nsDragService.cpp
+++ b/widget/gtk/nsDragService.cpp
@@ -45,6 +45,7 @@
 #include "nsArrayUtils.h"
 #ifdef MOZ_WAYLAND
 #  include "nsClipboardWayland.h"
+#  include "gfxPlatformGtk.h"
 #endif
 
 using namespace mozilla;
@@ -59,7 +60,14 @@
 // directly) so that this code can be compiled against versions of GTK+ that
 // do not have GtkDragResult.
 // GtkDragResult is available from GTK+ version 2.12.
-enum { MOZ_GTK_DRAG_RESULT_SUCCESS, MOZ_GTK_DRAG_RESULT_NO_TARGET };
+enum {
+  MOZ_GTK_DRAG_RESULT_SUCCESS,
+  MOZ_GTK_DRAG_RESULT_NO_TARGET,
+  MOZ_GTK_DRAG_RESULT_USER_CANCELLED,
+  MOZ_GTK_DRAG_RESULT_TIMEOUT_EXPIRED,
+  MOZ_GTK_DRAG_RESULT_GRAB_BROKEN,
+  MOZ_GTK_DRAG_RESULT_ERROR
+};
 
 static LazyLogModule sDragLm("nsDragService");
 
@@ -74,6 +82,7 @@
 static const char gTextUriListType[] = "text/uri-list";
 static const char gTextPlainUTF8Type[] = "text/plain;charset=utf-8";
 static const char gXdndDirectSaveType[] = "XdndDirectSave0";
+static const char gTabDropType[] = "application/x-moz-tabbrowser-tab";
 
 static void invisibleSourceDragBegin(GtkWidget* aWidget,
                                      GdkDragContext* aContext, gpointer aData);
@@ -346,12 +355,10 @@
       gtk_window_get_group(GetGtkWindow(mSourceDocument));
   gtk_window_group_add_window(window_group, GTK_WINDOW(mHiddenWidget));
 
-#ifdef MOZ_WIDGET_GTK
   // Get device for event source
   GdkDisplay* display = gdk_display_get_default();
   GdkDeviceManager* device_manager = gdk_display_get_device_manager(display);
   event.button.device = gdk_device_manager_get_client_pointer(device_manager);
-#endif
 
   // start our drag.
   GdkDragContext* context =
@@ -1252,6 +1259,9 @@
 
 void nsDragService::SourceEndDragSession(GdkDragContext* aContext,
                                          gint aResult) {
+  MOZ_LOG(sDragLm, LogLevel::Debug,
+          ("SourceEndDragSession result %d\n", aResult));
+
   // this just releases the list of data items that we provide
   mSourceDataItems = nullptr;
 
@@ -1272,6 +1282,8 @@
       gint scale = mozilla::widget::ScreenHelperGTK::GetGTKMonitorScaleFactor();
       gdk_display_get_pointer(display, nullptr, &x, &y, nullptr);
       SetDragEndPoint(LayoutDeviceIntPoint(x * scale, y * scale));
+      MOZ_LOG(sDragLm, LogLevel::Debug,
+              ("guess drag end point %d %d\n", x * scale, y * scale));
     }
   }
 
@@ -1307,7 +1319,25 @@
   } else {
     dropEffect = DRAGDROP_ACTION_NONE;
 
-    if (aResult != MOZ_GTK_DRAG_RESULT_NO_TARGET) {
+    bool isWaylandTabDrop = false;
+#ifdef MOZ_WAYLAND
+    // Bug 1527976. Wayland protocol does not have any way how to handle
+    // MOZ_GTK_DRAG_RESULT_NO_TARGET drop result so consider all tab
+    // drops as not cancelled on wayland.
+    if (gfxPlatformGtk::GetPlatform()->IsWaylandDisplay() &&
+        aResult == MOZ_GTK_DRAG_RESULT_ERROR) {
+      for (GList* tmp = gdk_drag_context_list_targets(aContext); tmp;
+           tmp = tmp->next) {
+        GdkAtom atom = GDK_POINTER_TO_ATOM(tmp->data);
+        gchar* name = gdk_atom_name(atom);
+        if (name && (strcmp(name, gTabDropType) == 0)) {
+          isWaylandTabDrop = true;
+          break;
+        }
+      }
+    }
+#endif
+    if (aResult != MOZ_GTK_DRAG_RESULT_NO_TARGET && !isWaylandTabDrop) {
       mUserCancelled = true;
     }
   }