--- a/browser/components/places/content/controller.js
+++ b/browser/components/places/content/controller.js
@@ -1545,29 +1545,37 @@ var PlacesControllerDragHelper = {
            aUnwrappedNode.grandParentId != PlacesUtils.tagsFolderId;
   },
 
   /**
    * Determines if a node can be moved.
    *
    * @param   aNode
    *          A nsINavHistoryResultNode node.
+   * @param   [optional] aDOMNode
+   *          A XUL DOM node.
    * @return True if the node can be moved, false otherwise.
    */
-  canMoveNode:
-  function PCDH_canMoveNode(aNode) {
+  canMoveNode(aNode, aDOMNode) {
     // Only bookmark items are movable.
     if (aNode.itemId == -1)
       return false;
 
+    let parentNode = aNode.parent;
+    if (!parentNode) {
+      // Normally parentless places nodes can not be moved,
+      // but simulated bookmarked URI nodes are special.
+      return !!aDOMNode &&
+             aDOMNode.hasAttribute("simulated-places-node") &&
+             PlacesUtils.nodeIsBookmark(aNode);
+    }
+
     // Once tags and bookmarked are divorced, the tag-query check should be
     // removed.
-    let parentNode = aNode.parent;
-    return parentNode != null &&
-           !(PlacesUtils.nodeIsFolder(parentNode) &&
+    return !(PlacesUtils.nodeIsFolder(parentNode) &&
              PlacesUIUtils.isContentsReadOnly(parentNode)) &&
            !PlacesUtils.nodeIsTagQuery(parentNode);
   },
 
   /**
    * Handles the drop of one or more items onto a view.
    * @param   insertionPoint
    *          The insertion point where the items should be dropped

--- a/browser/components/places/content/menu.xml
+++ b/browser/components/places/content/menu.xml
@@ -341,24 +341,25 @@
         if (elt.parentNode != this)
           return;
 
         if (window.XULBrowserWindow)
           window.XULBrowserWindow.setOverLink("", null);
       ]]></handler>
 
       <handler event="dragstart"><![CDATA[
-        if (!event.target._placesNode)
+        let elt = event.target;
+        if (!elt._placesNode)
           return;
 
-        let draggedElt = event.target._placesNode;
+        let draggedElt = elt._placesNode;
 
         // Force a copy action if parent node is a query or we are dragging a
         // not-removable node.
-        if (!PlacesControllerDragHelper.canMoveNode(draggedElt))
+        if (!PlacesControllerDragHelper.canMoveNode(draggedElt, elt))
           event.dataTransfer.effectAllowed = "copyLink";
 
         // Activate the view and cache the dragged element.
         this._rootView._draggedElt = draggedElt;
         this._rootView.controller.setDataTransfer(event);
         this.setAttribute("dragstart", "true");
         event.stopPropagation();
       ]]></handler>