diff --git a/packages/dockview-core/src/__tests__/dockview/dockviewComponent.spec.ts b/packages/dockview-core/src/__tests__/dockview/dockviewComponent.spec.ts
index 9aed10312..25bd1ea39 100644
--- a/packages/dockview-core/src/__tests__/dockview/dockviewComponent.spec.ts
+++ b/packages/dockview-core/src/__tests__/dockview/dockviewComponent.spec.ts
@@ -4716,6 +4716,61 @@ describe('dockviewComponent', () => {
             expect(dockview.panels.length).toBe(2);
         });
 
+        test('remove all panels from popout group', async () => {
+            const container = document.createElement('div');
+
+            const dockview = new DockviewComponent({
+                parentElement: container,
+                createComponent(options) {
+                    switch (options.name) {
+                        case 'default':
+                            return new PanelContentPartTest(
+                                options.id,
+                                options.name
+                            );
+                        default:
+                            throw new Error(`unsupported`);
+                    }
+                },
+            });
+
+            dockview.layout(1000, 500);
+
+            const panel1 = dockview.addPanel({
+                id: 'panel_1',
+                component: 'default',
+            });
+
+            const panel2 = dockview.addPanel({
+                id: 'panel_2',
+                component: 'default',
+                position: { direction: 'right' },
+            });
+
+            const panel3 = dockview.addPanel({
+                id: 'panel_3',
+                component: 'default',
+                position: { referencePanel: panel2 },
+            });
+
+            await dockview.addPopoutGroup(panel2.group);
+
+            expect(panel1.group.api.location.type).toBe('grid');
+            expect(panel2.group.api.location.type).toBe('popout');
+            expect(panel3.group.api.location.type).toBe('popout');
+
+            expect(dockview.panels.length).toBe(3);
+            expect(dockview.groups.length).toBe(3); // includes one hidden group
+
+            panel2.api.moveTo({ group: panel1.group, position: 'left' });
+            expect(dockview.panels.length).toBe(3);
+            expect(dockview.groups.length).toBe(4);
+
+            panel3.api.moveTo({ group: panel1.group, position: 'left' });
+            expect(dockview.panels.length).toBe(3);
+            expect(dockview.groups.length).toBe(3);
+        });
+
         test('that can remove a popout group', async () => {
             const container = document.createElement('div');
 
diff --git a/packages/dockview-core/src/dockview/dockviewComponent.ts b/packages/dockview-core/src/dockview/dockviewComponent.ts
index d1dc93f92..be0af1dba 100644
--- a/packages/dockview-core/src/dockview/dockviewComponent.ts
+++ b/packages/dockview-core/src/dockview/dockviewComponent.ts
@@ -1767,6 +1767,8 @@ export class DockviewComponent
                     this._onDidRemoveGroup.fire(group);
                 }
 
+                remove(this._popoutGroups, selectedGroup);
+
                 const removedGroup = selectedGroup.disposable.dispose();
 
                 if (!options?.skipPopoutReturn && removedGroup) {
@@ -1922,6 +1924,47 @@ export class DockviewComponent
                     }
                 }
 
+                if (sourceGroup.api.location.type === 'popout') {
+                    /**
+                     * the source group is a popout group with a single panel
+                     *
+                     * 1. remove the panel from the group without triggering any events
+                     * 2. remove the popout group
+                     * 3. create a new group at the requested location and add that panel
+                     */
+
+                    const popoutGroup = this._popoutGroups.find(
+                        (group) => group.popoutGroup === sourceGroup
+                    )!;
+
+                    const removedPanel: IDockviewPanel | undefined =
+                        this.movingLock(() =>
+                            popoutGroup.popoutGroup.model.removePanel(
+                                popoutGroup.popoutGroup.panels[0],
+                                {
+                                    skipSetActive: true,
+                                    skipSetActiveGroup: true,
+                                }
+                            )
+                        );
+
+                    this.doRemoveGroup(sourceGroup, { skipActive: true });
+
+                    const newGroup = this.createGroupAtLocation(targetLocation);
+                    this.movingLock(() =>
+                        newGroup.model.openPanel(removedPanel!, {
+                            skipSetActive: true,
+                        })
+                    );
+                    this.doSetGroupAndPanelActive(newGroup);
+
+                    this._onDidMovePanel.fire({
+                        panel: this.getGroupPanel(sourceItemId)!,
+                        from: sourceGroup,
+                    });
+                    return;
+                }
+
                 // source group will become empty so delete the group
                 const targetGroup = this.movingLock(() =>
                     this.doRemoveGroup(sourceGroup, {