Hi Friend,

Try the following code:

import java.awt.*;
import javax.swing.*;
import java.awt.event.*;

class DragMouseAdapter extends MouseAdapter{
public void mousePressed(MouseEvent e) {
JComponent c = (JComponent) e.getSource();
TransferHandler handler = c.getTransferHandler();
handler.exportAsDrag(c, e, TransferHandler.COPY);
}
}
public class test1 {
public static void main(String[] args) {
JFrame f = new JFrame("Drag & Drop");
ImageIcon icon1 = new ImageIcon("C:\\node.jpg");
ImageIcon icon2 = new ImageIcon("C:\\blank.gif");
JPanel panel=new JPanel(new GridLayout(2,1));
JPanel panel1=new JPanel(new BorderLayout());
JPanel panel2=new JPanel();
panel1.setBackground(Color.red);
panel2.setBackground(Color.white);
JLabel label1 = new JLabel(icon1);
JLabel label2 = new JLabel(icon2);

MouseListener listener = new DragMouseAdapter();
label1.addMouseListener(listener);
label2.addMouseListener(listener);
label1.setTransferHandler(new TransferHandler("icon"));
label2.setTransferHandler(new TransferHandler("icon"));

panel1.add(label1);
panel2.add(label2);
panel.add(panel1);
panel.add(panel2);
f.setLayout(new GridLayout(1,2));
f.setSize(300,400);
f.add(panel);
f.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);
f.setVisible(true);
}
}

Here blank.gif is a blank file.

Thanks