A method for using drag and drop to transfer an object from a local application running at a client computer system to a remoted application at a server computer system, wherein the client computer system comprises a client component participating in a terminal server session with a server component at the server computer system, the method comprising: an act of the client component detecting that a desktop window cursor has been moved from outside to within the bounds of an application window for a remoted application; an act of the client component receiving a drop notification indicating a pending drag and drop operation, the drop notification indicating that a drag and drop object is to be transferred to the remoted application; an act of client component sending a request to transfer the drag and drop object along with a coordinate location of the desktop window cursor to the server computer system over the terminal server session in response to receiving the drop notification; an act of the client component receiving a request for the drag and drop object from the server computer system over the terminal server session; the client component acting as a proxy drop target on behalf of the remoted application in response to receiving the request for the drag and drop object, such that the client component can receive drag and drop objects from the local application; an act of forwarding the request for the drag and drop object to the local application; an act of receiving the drag and drop object from the local application sent in response to the request for the drag and drop object; and an act of the client component sending the drag and drop object to the server computer system over the terminal server session for delivery to the remote application. an act of the client component detecting that a desktop window cursor has been moved from outside to within the bounds of an application window for a remoted application; an act of the client component receiving a drop notification indicating a pending drag and drop operation, the drop notification indicating that a drag and drop object is to be transferred to the remoted application; an act of client component sending a request to transfer the drag and drop object along with a coordinate location of the desktop window cursor to the server computer system over the terminal server session in response to receiving the drop notification; an act of the client component receiving a request for the drag and drop object from the server computer system over the terminal server session; the client component acting as a proxy drop target on behalf of the remoted application in response to receiving the request for the drag and drop object, such that the client component can receive drag and drop objects from the local application; an act of forwarding the request for the drag and drop object to the local application; an act of receiving the drag and drop object from the local application sent in response to the request for the drag and drop object; and an act of the client component sending the drag and drop object to the server computer system over the terminal server session for delivery to the remote application.