diff --git a/python/PyQt6/gui/auto_generated/qgsbrowsertreeview.sip.in b/python/PyQt6/gui/auto_generated/qgsbrowsertreeview.sip.in
index b66a85c92856..b1066e07390d 100644
--- a/python/PyQt6/gui/auto_generated/qgsbrowsertreeview.sip.in
+++ b/python/PyQt6/gui/auto_generated/qgsbrowsertreeview.sip.in
@@ -66,12 +66,14 @@ Returns ``True`` if the item was found and could be selected.
 .. versionadded:: 3.28
 %End
 
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 %Docstring
 Expands out a file ``path`` in the view.
 
 The ``path`` must correspond to a valid directory existing on the file system.
 
+Since QGIS 3.38 the ``selectPath`` argument can be used to automatically select the path too.
+
 .. versionadded:: 3.28
 %End
 
diff --git a/python/PyQt6/gui/auto_generated/qgsdatasourceselectdialog.sip.in b/python/PyQt6/gui/auto_generated/qgsdatasourceselectdialog.sip.in
index 9784db0fb3be..5e68643d3188 100644
--- a/python/PyQt6/gui/auto_generated/qgsdatasourceselectdialog.sip.in
+++ b/python/PyQt6/gui/auto_generated/qgsdatasourceselectdialog.sip.in
@@ -65,12 +65,14 @@ Sets a description label
 .. versionadded:: 3.8
 %End
 
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 %Docstring
 Expands out a file ``path`` in the view.
 
 The ``path`` must correspond to a valid directory existing on the file system.
 
+Since QGIS 3.38 the ``selectPath`` argument can be used to automatically select the path too.
+
 .. versionadded:: 3.28
 %End
 
@@ -101,6 +103,11 @@ Apply filter to the model
 Scroll to last selected index and expand it's children
 %End
 
+    virtual void dragEnterEvent( QDragEnterEvent *event );
+
+    virtual void dropEvent( QDropEvent *event );
+
+
   signals:
 
     void validationChanged( bool isValid );
@@ -176,12 +183,14 @@ Sets a description label
 .. versionadded:: 3.8
 %End
 
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 %Docstring
 Expands out a file ``path`` in the view.
 
 The ``path`` must correspond to a valid directory existing on the file system.
 
+Since QGIS 3.38 the ``selectPath`` argument can be used to automatically select the path too.
+
 .. versionadded:: 3.28
 %End
 
diff --git a/python/gui/auto_generated/qgsbrowsertreeview.sip.in b/python/gui/auto_generated/qgsbrowsertreeview.sip.in
index b66a85c92856..b1066e07390d 100644
--- a/python/gui/auto_generated/qgsbrowsertreeview.sip.in
+++ b/python/gui/auto_generated/qgsbrowsertreeview.sip.in
@@ -66,12 +66,14 @@ Returns ``True`` if the item was found and could be selected.
 .. versionadded:: 3.28
 %End
 
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 %Docstring
 Expands out a file ``path`` in the view.
 
 The ``path`` must correspond to a valid directory existing on the file system.
 
+Since QGIS 3.38 the ``selectPath`` argument can be used to automatically select the path too.
+
 .. versionadded:: 3.28
 %End
 
diff --git a/python/gui/auto_generated/qgsdatasourceselectdialog.sip.in b/python/gui/auto_generated/qgsdatasourceselectdialog.sip.in
index 9784db0fb3be..5e68643d3188 100644
--- a/python/gui/auto_generated/qgsdatasourceselectdialog.sip.in
+++ b/python/gui/auto_generated/qgsdatasourceselectdialog.sip.in
@@ -65,12 +65,14 @@ Sets a description label
 .. versionadded:: 3.8
 %End
 
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 %Docstring
 Expands out a file ``path`` in the view.
 
 The ``path`` must correspond to a valid directory existing on the file system.
 
+Since QGIS 3.38 the ``selectPath`` argument can be used to automatically select the path too.
+
 .. versionadded:: 3.28
 %End
 
@@ -101,6 +103,11 @@ Apply filter to the model
 Scroll to last selected index and expand it's children
 %End
 
+    virtual void dragEnterEvent( QDragEnterEvent *event );
+
+    virtual void dropEvent( QDropEvent *event );
+
+
   signals:
 
     void validationChanged( bool isValid );
@@ -176,12 +183,14 @@ Sets a description label
 .. versionadded:: 3.8
 %End
 
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 %Docstring
 Expands out a file ``path`` in the view.
 
 The ``path`` must correspond to a valid directory existing on the file system.
 
+Since QGIS 3.38 the ``selectPath`` argument can be used to automatically select the path too.
+
 .. versionadded:: 3.28
 %End
 
diff --git a/src/app/qgisapp.cpp b/src/app/qgisapp.cpp
index 450dbaea75ce..c6856c998c8d 100644
--- a/src/app/qgisapp.cpp
+++ b/src/app/qgisapp.cpp
@@ -7753,7 +7753,9 @@ void QgisApp::changeDataSource( QgsMapLayer *layer )
   {
     const QString path = sourceParts.value( QStringLiteral( "path" ) ).toString();
     const QString closestPath = QFile::exists( path ) ? path : QgsFileUtils::findClosestExistingPath( path );
-    dlg.expandPath( closestPath );
+
+    const QFileInfo pathInfo( closestPath );
+    dlg.expandPath( pathInfo.isDir() ? closestPath : pathInfo.dir().path(), true );
     if ( source.contains( path ) )
     {
       source.replace( path, QStringLiteral( "<a href=\"%1\">%2</a>" ).arg( QUrl::fromLocalFile( closestPath ).toString(),
diff --git a/src/gui/qgsbrowsertreeview.cpp b/src/gui/qgsbrowsertreeview.cpp
index 6ce4a05b989d..4377084e8e0f 100644
--- a/src/gui/qgsbrowsertreeview.cpp
+++ b/src/gui/qgsbrowsertreeview.cpp
@@ -177,7 +177,7 @@ bool QgsBrowserTreeView::hasExpandedDescendant( const QModelIndex &index ) const
   return false;
 }
 
-void QgsBrowserTreeView::expandPath( const QString &str )
+void QgsBrowserTreeView::expandPath( const QString &str, bool selectPath )
 {
   const QStringList pathParts = QgsFileUtils::splitPathToComponents( str );
   if ( pathParts.isEmpty() )
@@ -289,6 +289,7 @@ void QgsBrowserTreeView::expandPath( const QString &str )
     currentDir = QDir( thisPath );
   }
 
+  QgsDirectoryItem *lastItem = nullptr;
   for ( QgsDirectoryItem *i : std::as_const( pathItems ) )
   {
     QModelIndex index = mBrowserModel->findItem( i );
@@ -297,7 +298,11 @@ void QgsBrowserTreeView::expandPath( const QString &str )
       index = proxyModel->mapFromSource( index );
     }
     expand( index );
+    lastItem = i;
   }
+
+  if ( selectPath && lastItem )
+    setSelectedItem( lastItem );
 }
 
 bool QgsBrowserTreeView::setSelectedItem( QgsDataItem *item )
diff --git a/src/gui/qgsbrowsertreeview.h b/src/gui/qgsbrowsertreeview.h
index 121b8f6003ab..d91a8c08e3b9 100644
--- a/src/gui/qgsbrowsertreeview.h
+++ b/src/gui/qgsbrowsertreeview.h
@@ -82,9 +82,11 @@ class GUI_EXPORT QgsBrowserTreeView : public QTreeView
      *
      * The \a path must correspond to a valid directory existing on the file system.
      *
+     * Since QGIS 3.38 the \a selectPath argument can be used to automatically select the path too.
+     *
      * \since QGIS 3.28
      */
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 
   protected:
 
diff --git a/src/gui/qgsdatasourceselectdialog.cpp b/src/gui/qgsdatasourceselectdialog.cpp
index fc76099de596..b98b57639caa 100644
--- a/src/gui/qgsdatasourceselectdialog.cpp
+++ b/src/gui/qgsdatasourceselectdialog.cpp
@@ -31,6 +31,7 @@
 #include <QFileInfo>
 #include <QUrl>
 #include <QActionGroup>
+#include <QDir>
 
 QgsDataSourceSelectWidget::QgsDataSourceSelectWidget(
   QgsBrowserGuiModel *browserModel,
@@ -116,6 +117,8 @@ QgsDataSourceSelectWidget::QgsDataSourceSelectWidget(
   {
     mActionShowFilter->trigger();
   }
+
+  setAcceptDrops( true );
 }
 
 QgsDataSourceSelectWidget::~QgsDataSourceSelectWidget() = default;
@@ -145,6 +148,58 @@ void QgsDataSourceSelectWidget::showEvent( QShowEvent *e )
   }
 }
 
+QString QgsDataSourceSelectWidget::acceptableFilePath( QDropEvent *event ) const
+{
+  if ( event->mimeData()->hasUrls() )
+  {
+    const QList< QUrl > urls = event->mimeData()->urls();
+    for ( const QUrl &url : urls )
+    {
+      const QString local = url.toLocalFile();
+      if ( local.isEmpty() )
+        continue;
+
+      if ( QFile::exists( local ) )
+      {
+        return local;
+      }
+    }
+  }
+  return QString();
+}
+
+void QgsDataSourceSelectWidget::dragEnterEvent( QDragEnterEvent *event )
+{
+  const QString filePath = acceptableFilePath( event );
+  if ( !filePath.isEmpty() )
+  {
+    event->acceptProposedAction();
+  }
+  else
+  {
+    event->ignore();
+  }
+}
+
+void QgsDataSourceSelectWidget::dropEvent( QDropEvent *event )
+{
+  const QString filePath = acceptableFilePath( event );
+  if ( !filePath.isEmpty() )
+  {
+    event->acceptProposedAction();
+
+    const QFileInfo fi( filePath );
+    if ( fi.isDir() )
+    {
+      expandPath( filePath, true );
+    }
+    else
+    {
+      expandPath( fi.dir().path(), true );
+    }
+  }
+}
+
 void QgsDataSourceSelectWidget::showFilterWidget( bool visible )
 {
   QgsSettings().setValue( QStringLiteral( "datasourceSelectFilterVisible" ), visible, QgsSettings::Section::Gui );
@@ -194,9 +249,9 @@ void QgsDataSourceSelectWidget::setDescription( const QString &description )
   }
 }
 
-void QgsDataSourceSelectWidget::expandPath( const QString &path )
+void QgsDataSourceSelectWidget::expandPath( const QString &path, bool selectPath )
 {
-  mBrowserTreeView->expandPath( path );
+  mBrowserTreeView->expandPath( path, selectPath );
 }
 
 void QgsDataSourceSelectWidget::setFilter()
@@ -205,7 +260,6 @@ void QgsDataSourceSelectWidget::setFilter()
   mBrowserProxyModel.setFilterString( filter );
 }
 
-
 void QgsDataSourceSelectWidget::refreshModel( const QModelIndex &index )
 {
 
@@ -255,7 +309,6 @@ void QgsDataSourceSelectWidget::setValid( bool valid )
 
 }
 
-
 void QgsDataSourceSelectWidget::setFilterSyntax( QAction *action )
 {
   if ( !action )
@@ -354,9 +407,9 @@ void QgsDataSourceSelectDialog::setDescription( const QString &description )
   mWidget->setDescription( description );
 }
 
-void QgsDataSourceSelectDialog::expandPath( const QString &path )
+void QgsDataSourceSelectDialog::expandPath( const QString &path, bool selectPath )
 {
-  mWidget->expandPath( path );
+  mWidget->expandPath( path, selectPath );
 }
 
 QgsMimeDataUtils::Uri QgsDataSourceSelectDialog::uri() const
diff --git a/src/gui/qgsdatasourceselectdialog.h b/src/gui/qgsdatasourceselectdialog.h
index d9668835d1c3..8a2796b50591 100644
--- a/src/gui/qgsdatasourceselectdialog.h
+++ b/src/gui/qgsdatasourceselectdialog.h
@@ -82,9 +82,11 @@ class GUI_EXPORT QgsDataSourceSelectWidget: public QgsPanelWidget, private Ui::Q
      *
      * The \a path must correspond to a valid directory existing on the file system.
      *
+     * Since QGIS 3.38 the \a selectPath argument can be used to automatically select the path too.
+     *
      * \since QGIS 3.28
      */
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 
     /**
      * Returns the (possibly invalid) uri of the selected data source
@@ -102,6 +104,9 @@ class GUI_EXPORT QgsDataSourceSelectWidget: public QgsPanelWidget, private Ui::Q
     //! Scroll to last selected index and expand it's children
     void showEvent( QShowEvent *e ) override;
 
+    void dragEnterEvent( QDragEnterEvent *event ) override;
+    void dropEvent( QDropEvent *event ) override;
+
   signals:
 
     /**
@@ -135,6 +140,9 @@ class GUI_EXPORT QgsDataSourceSelectWidget: public QgsPanelWidget, private Ui::Q
 
     void setValid( bool valid );
 
+    //! Returns file name if object meets drop criteria.
+    QString acceptableFilePath( QDropEvent *event ) const;
+
     QgsBrowserProxyModel mBrowserProxyModel;
     QgsBrowserGuiModel *mBrowserModel = nullptr;
     QgsMimeDataUtils::Uri mUri;
@@ -195,9 +203,11 @@ class GUI_EXPORT QgsDataSourceSelectDialog: public QDialog
      *
      * The \a path must correspond to a valid directory existing on the file system.
      *
+     * Since QGIS 3.38 the \a selectPath argument can be used to automatically select the path too.
+     *
      * \since QGIS 3.28
      */
-    void expandPath( const QString &path );
+    void expandPath( const QString &path, bool selectPath = false );
 
     /**
      * Returns the (possibly invalid) uri of the selected data source