diff --git a/editor/plugins/node_3d_editor_plugin.cpp b/editor/plugins/node_3d_editor_plugin.cpp
index 6850a79ce6f..19e81e075ea 100644
--- a/editor/plugins/node_3d_editor_plugin.cpp
+++ b/editor/plugins/node_3d_editor_plugin.cpp
@@ -3119,6 +3119,7 @@ void Node3DEditorViewport::_notification(int p_what) {
 		case NOTIFICATION_DRAG_END: {
 			// Clear preview material when dropped outside applicable object.
 			if (spatial_editor->get_preview_material().is_valid() && !is_drag_successful()) {
+				_reset_preview_material();
 				_remove_preview_material();
 			} else {
 				_remove_preview_node();