diff --git a/packages/ui/src/elements/Avatar.tsx b/packages/ui/src/elements/Avatar.tsx
index 2560197a913..dd56fa84acf 100644
--- a/packages/ui/src/elements/Avatar.tsx
+++ b/packages/ui/src/elements/Avatar.tsx
@@ -128,6 +128,7 @@ export const Avatar = (props: AvatarProps) => {
         }),
         sx,
       ]}
+      data-rounded={rounded}
     >
       {ImgOrFallback}
 
diff --git a/packages/ui/src/elements/AvatarUploader.tsx b/packages/ui/src/elements/AvatarUploader.tsx
index 8a7f99b7a0d..10d3f403670 100644
--- a/packages/ui/src/elements/AvatarUploader.tsx
+++ b/packages/ui/src/elements/AvatarUploader.tsx
@@ -39,18 +39,14 @@ const validSize = (f: File) => f.size <= MAX_SIZE_BYTES;
 
 export const AvatarUploader = (props: AvatarUploaderProps) => {
   const { t } = useLocalizations();
-  const [showUpload, setShowUpload] = React.useState(false);
   const [objectUrl, setObjectUrl] = React.useState<string>();
+  const [isDraggingOver, setIsDraggingOver] = React.useState(false);
   const card = useCardState();
   const inputRef = React.useRef<HTMLInputElement | null>(null);
   const openDialog = () => inputRef.current?.click();
 
   const { onAvatarChange, onAvatarRemove, title, avatarPreview, avatarPreviewPlaceholder, ...rest } = props;
 
-  const toggle = () => {
-    setShowUpload(!showUpload);
-  };
-
   const handleFileDrop = (file: File | null) => {
     if (file === null) {
       return setObjectUrl('');
@@ -60,7 +56,6 @@ export const AvatarUploader = (props: AvatarUploaderProps) => {
     card.setLoading();
     return onAvatarChange(file)
       .then(() => {
-        toggle();
         card.setIdle();
       })
       .catch(err => handleError(err, [], card.setError));
@@ -90,6 +85,44 @@ export const AvatarUploader = (props: AvatarUploaderProps) => {
     await handleFileDrop(f);
   };
 
+  const isFileDrag = (e: React.DragEvent) => e.dataTransfer?.types?.includes('Files') ?? false;
+
+  const handleDragEnter = (e: React.DragEvent<HTMLDivElement>) => {
+    if (card.isLoading || !isFileDrag(e)) {
+      return;
+    }
+    e.preventDefault();
+    setIsDraggingOver(true);
+  };
+
+  const handleDragOver = (e: React.DragEvent<HTMLDivElement>) => {
+    if (card.isLoading || !isFileDrag(e)) {
+      return;
+    }
+    e.preventDefault();
+    e.dataTransfer.dropEffect = 'copy';
+  };
+
+  const handleDragLeave = (e: React.DragEvent<HTMLDivElement>) => {
+    // Only reset when leaving the container entirely, not when moving between children.
+    if (e.currentTarget.contains(e.relatedTarget as Node | null)) {
+      return;
+    }
+    setIsDraggingOver(false);
+  };
+
+  const handleDrop = (e: React.DragEvent<HTMLDivElement>) => {
+    if (!isFileDrag(e)) {
+      return;
+    }
+    e.preventDefault();
+    setIsDraggingOver(false);
+    if (card.isLoading) {
+      return;
+    }
+    void upload(e.dataTransfer.files?.[0]);
+  };
+
   const hasExistingImage = !!(avatarPreview.props as { imageUrl?: string })?.imageUrl;
   const previewElement = objectUrl
     ? React.cloneElement(avatarPreview, { imageUrl: objectUrl })
@@ -110,9 +143,29 @@ export const AvatarUploader = (props: AvatarUploaderProps) => {
       <Flex
         gap={4}
         align='center'
+        onDragEnter={handleDragEnter}
+        onDragOver={handleDragOver}
+        onDragLeave={handleDragLeave}
+        onDrop={handleDrop}
         {...rest}
       >
-        {previewElement}
+        <Flex
+          sx={t => ({
+            borderRadius: t.radii.$md,
+            transitionProperty: t.transitionProperty.$common,
+            transitionDuration: t.transitionDuration.$controls,
+            transitionTimingFunction: t.transitionTiming.$common,
+            ...(isDraggingOver && {
+              outline: `${t.borderWidths.$normal} dashed ${t.colors.$primary500}`,
+              outlineOffset: t.space.$0x5,
+              '&:has([data-rounded="true"])': {
+                borderRadius: t.radii.$circle,
+              },
+            }),
+          })}
+        >
+          {previewElement}
+        </Flex>
         <Col gap={1}>
           <Flex
             elementDescriptor={descriptors.avatarImageActions}
@@ -127,7 +180,7 @@ export const AvatarUploader = (props: AvatarUploaderProps) => {
               onClick={openDialog}
             />
 
-            {!!onAvatarRemove && !showUpload && (
+            {!!onAvatarRemove && (
               <Button
                 elementDescriptor={descriptors.avatarImageActionsRemove}
                 localizationKey={localizationKeys('userProfile.profilePage.imageFormDestructiveActionSubtitle')}
diff --git a/packages/ui/src/elements/__tests__/AvatarUploader.test.tsx b/packages/ui/src/elements/__tests__/AvatarUploader.test.tsx
new file mode 100644
index 00000000000..869090cc57d
--- /dev/null
+++ b/packages/ui/src/elements/__tests__/AvatarUploader.test.tsx
@@ -0,0 +1,174 @@
+import { fireEvent, render, waitFor } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+import { describe, expect, it, vi } from 'vitest';
+
+import { bindCreateFixtures } from '@/test/create-fixtures';
+
+import { localizationKeys } from '../../customizables';
+import { AvatarUploader, type AvatarUploaderProps } from '../AvatarUploader';
+import { useCardState, withCardStateProvider } from '../contexts';
+
+const { createFixtures } = bindCreateFixtures('UserProfile');
+
+const StubPreview = (_props: { imageUrl?: string }) => <span data-testid='avatar-preview' />;
+
+type HarnessProps = Omit<AvatarUploaderProps, 'title' | 'avatarPreview'>;
+
+const Harness = withCardStateProvider((props: HarnessProps) => {
+  const card = useCardState();
+  return (
+    <>
+      <AvatarUploader
+        {...props}
+        title={localizationKeys('userProfile.profilePage.imageFormTitle')}
+        avatarPreview={<StubPreview />}
+      />
+      {card.error ? <div data-testid='card-error'>{card.error}</div> : null}
+    </>
+  );
+});
+
+const makeImageFile = (size = 1024, type = 'image/png') => {
+  const file = new File([new Uint8Array(size)], 'logo.png', { type });
+  Object.defineProperty(file, 'size', { value: size });
+  return file;
+};
+
+const makeDataTransfer = (files: File[] = [], types: string[] = ['Files']) =>
+  ({
+    files,
+    types,
+    items: files.map(f => ({ kind: 'file', type: f.type, getAsFile: () => f })),
+    dropEffect: 'none',
+    effectAllowed: 'all',
+  }) as unknown as DataTransfer;
+
+const findFileInput = (container: HTMLElement) => {
+  const input = container.querySelector<HTMLInputElement>('input[type="file"]');
+  if (!input) throw new Error('Could not find hidden file input');
+  return input;
+};
+
+const findDropZone = (container: HTMLElement) => {
+  // The outer Flex registered with the drop handlers is the file input's next sibling.
+  const sibling = findFileInput(container).nextElementSibling;
+  if (!sibling) throw new Error('Could not find drop zone element');
+  return sibling as HTMLElement;
+};
+
+describe('AvatarUploader', () => {
+  describe('click-upload', () => {
+    it('calls onAvatarChange with the selected file', async () => {
+      const { wrapper } = await createFixtures();
+      const onAvatarChange = vi.fn().mockResolvedValue(undefined);
+      const file = makeImageFile();
+      const { container } = render(<Harness onAvatarChange={onAvatarChange} />, { wrapper });
+
+      fireEvent.change(findFileInput(container), { target: { files: [file] } });
+
+      await waitFor(() => expect(onAvatarChange).toHaveBeenCalledWith(file));
+    });
+  });
+
+  describe('drag-and-drop', () => {
+    it('calls onAvatarChange when a valid image file is dropped', async () => {
+      const { wrapper } = await createFixtures();
+      const onAvatarChange = vi.fn().mockResolvedValue(undefined);
+      const file = makeImageFile();
+      const { container } = render(<Harness onAvatarChange={onAvatarChange} />, { wrapper });
+
+      fireEvent.drop(findDropZone(container), { dataTransfer: makeDataTransfer([file]) });
+
+      await waitFor(() => expect(onAvatarChange).toHaveBeenCalledWith(file));
+    });
+
+    it('rejects unsupported file types', async () => {
+      const { wrapper } = await createFixtures();
+      const onAvatarChange = vi.fn();
+      const pdf = makeImageFile(1024, 'application/pdf');
+      const { container, findByTestId } = render(<Harness onAvatarChange={onAvatarChange} />, { wrapper });
+
+      fireEvent.drop(findDropZone(container), { dataTransfer: makeDataTransfer([pdf]) });
+
+      const error = await findByTestId('card-error');
+      expect(error).toHaveTextContent(/file type not supported/i);
+      expect(onAvatarChange).not.toHaveBeenCalled();
+    });
+
+    it('rejects files exceeding the max size', async () => {
+      const { wrapper } = await createFixtures();
+      const onAvatarChange = vi.fn();
+      const oversized = makeImageFile(11 * 1000 * 1000);
+      const { container, findByTestId } = render(<Harness onAvatarChange={onAvatarChange} />, { wrapper });
+
+      fireEvent.drop(findDropZone(container), { dataTransfer: makeDataTransfer([oversized]) });
+
+      const error = await findByTestId('card-error');
+      expect(error).toHaveTextContent(/file size exceeds/i);
+      expect(onAvatarChange).not.toHaveBeenCalled();
+    });
+
+    it('ignores drops that do not contain files (e.g. text drags)', async () => {
+      const { wrapper } = await createFixtures();
+      const onAvatarChange = vi.fn();
+      const { container } = render(<Harness onAvatarChange={onAvatarChange} />, { wrapper });
+
+      fireEvent.drop(findDropZone(container), {
+        dataTransfer: makeDataTransfer([], ['text/plain']),
+      });
+
+      expect(onAvatarChange).not.toHaveBeenCalled();
+    });
+  });
+
+  describe('remove button', () => {
+    it('is hidden when onAvatarRemove is not provided', async () => {
+      const { wrapper } = await createFixtures();
+      const { queryByRole } = render(<Harness onAvatarChange={vi.fn().mockResolvedValue(undefined)} />, { wrapper });
+
+      expect(queryByRole('button', { name: /^remove$/i })).not.toBeInTheDocument();
+    });
+
+    it('stays visible after a successful upload', async () => {
+      // Regression: previously `showUpload` was toggled inside handleFileDrop and the remove
+      // button was gated on `!showUpload`, so it disappeared after each successful upload.
+      const { wrapper } = await createFixtures();
+      const onAvatarChange = vi.fn().mockResolvedValue(undefined);
+      const onAvatarRemove = vi.fn();
+      const { container, getByRole } = render(
+        <Harness
+          onAvatarChange={onAvatarChange}
+          onAvatarRemove={onAvatarRemove}
+        />,
+        { wrapper },
+      );
+
+      expect(getByRole('button', { name: /^remove$/i })).toBeInTheDocument();
+
+      fireEvent.change(findFileInput(container), { target: { files: [makeImageFile()] } });
+
+      await waitFor(() => expect(onAvatarChange).toHaveBeenCalledTimes(1));
+      await waitFor(() => {
+        expect(getByRole('button', { name: /^remove$/i })).not.toBeDisabled();
+      });
+      expect(getByRole('button', { name: /^remove$/i })).toBeInTheDocument();
+    });
+
+    it('invokes onAvatarRemove when clicked', async () => {
+      const user = userEvent.setup();
+      const { wrapper } = await createFixtures();
+      const onAvatarRemove = vi.fn();
+      const { getByRole } = render(
+        <Harness
+          onAvatarChange={vi.fn().mockResolvedValue(undefined)}
+          onAvatarRemove={onAvatarRemove}
+        />,
+        { wrapper },
+      );
+
+      await user.click(getByRole('button', { name: /^remove$/i }));
+
+      await waitFor(() => expect(onAvatarRemove).toHaveBeenCalledTimes(1));
+    });
+  });
+});