diff --git a/apps/web/src/components/editor/media-panel.tsx b/apps/web/src/components/editor/media-panel.tsx
index f2b3f65..cdd67a8 100644
--- a/apps/web/src/components/editor/media-panel.tsx
+++ b/apps/web/src/components/editor/media-panel.tsx
@@ -17,27 +17,28 @@ export function MediaPanel() {
   const { mediaItems, addMediaItem, removeMediaItem } = useMediaStore();
   const fileInputRef = useRef<HTMLInputElement>(null);
   const [isProcessing, setIsProcessing] = useState(false);
+  const [progress, setProgress] = useState(0);
   const [searchQuery, setSearchQuery] = useState("");
   const [mediaFilter, setMediaFilter] = useState("all");
 
   const processFiles = async (files: FileList | File[]) => {
-    // If no files, do nothing
-    if (!files?.length) return;
-
+    if (!files || files.length === 0) return;
     setIsProcessing(true);
+    setProgress(0);
     try {
       // Process files (extract metadata, generate thumbnails, etc.)
-      const items = await processMediaFiles(files);
+      const processedItems = await processMediaFiles(files, (p) =>
+        setProgress(p)
+      );
       // Add each processed media item to the store
-      items.forEach((item) => {
-        addMediaItem(item);
-      });
+      processedItems.forEach((item) => addMediaItem(item));
     } catch (error) {
-      // Show error if processing fails
-      console.error("File processing failed:", error);
+      // Show error toast if processing fails
+      console.error("Error processing files:", error);
       toast.error("Failed to process files");
     } finally {
       setIsProcessing(false);
+      setProgress(0);
     }
   };
 
@@ -241,15 +242,12 @@ export function MediaPanel() {
               {isProcessing ? (
                 <>
                   <Upload className="h-4 w-4 animate-spin" />
-                  <span className="hidden md:inline ml-2">Processing...</span>
+                  <span className="hidden md:inline ml-2">{progress}%</span>
                 </>
               ) : (
                 <>
                   <Plus className="h-4 w-4" />
-                  <span
-                    className="hidden sm:inline ml-2"
-                    aria-label="Add file"
-                  >
+                  <span className="hidden sm:inline ml-2" aria-label="Add file">
                     Add
                   </span>
                 </>
diff --git a/apps/web/src/components/editor/timeline.tsx b/apps/web/src/components/editor/timeline.tsx
index c1b8f3e..1ecbe54 100644
--- a/apps/web/src/components/editor/timeline.tsx
+++ b/apps/web/src/components/editor/timeline.tsx
@@ -69,6 +69,7 @@ export function Timeline() {
   } = usePlaybackStore();
   const [isDragOver, setIsDragOver] = useState(false);
   const [isProcessing, setIsProcessing] = useState(false);
+  const [progress, setProgress] = useState(0);
   const [zoomLevel, setZoomLevel] = useState(1);
   const dragCounterRef = useRef(0);
   const timelineRef = useRef<HTMLDivElement>(null);
@@ -334,8 +335,12 @@ export function Timeline() {
     } else if (e.dataTransfer.files?.length > 0) {
       // Handle file drops by creating new tracks
       setIsProcessing(true);
+      setProgress(0);
       try {
-        const processedItems = await processMediaFiles(e.dataTransfer.files);
+        const processedItems = await processMediaFiles(
+          e.dataTransfer.files,
+          (p) => setProgress(p)
+        );
         for (const processedItem of processedItems) {
           addMediaItem(processedItem);
           const currentMediaItems = useMediaStore.getState().mediaItems;
@@ -363,6 +368,7 @@ export function Timeline() {
         toast.error("Failed to process dropped files");
       } finally {
         setIsProcessing(false);
+        setProgress(0);
       }
     }
   };
@@ -594,10 +600,11 @@ export function Timeline() {
           <div className="w-px h-6 bg-border mx-1" />
 
           {/* Time Display */}
-          <div className="text-xs text-muted-foreground font-mono px-2"
-            style={{ minWidth: '18ch', textAlign: 'center' }}
-            >
-              {currentTime.toFixed(1)}s / {duration.toFixed(1)}s
+          <div
+            className="text-xs text-muted-foreground font-mono px-2"
+            style={{ minWidth: "18ch", textAlign: "center" }}
+          >
+            {currentTime.toFixed(1)}s / {duration.toFixed(1)}s
           </div>
 
           {/* Test Clip Button - for debugging */}
@@ -946,14 +953,12 @@ export function Timeline() {
                   </>
                 )}
                 {isDragOver && (
-                  <div
-                    className="absolute left-0 right-0 border-2 border-dashed border-accent flex items-center justify-center text-muted-foreground"
-                    style={{
-                      top: `${tracks.length * 60}px`,
-                      height: "60px",
-                    }}
-                  >
-                    <div>Drop media here to add a new track</div>
+                  <div className="absolute inset-0 z-20 flex items-center justify-center pointer-events-none backdrop-blur-lg">
+                    <div>
+                      {isProcessing
+                        ? `Processing ${progress}%`
+                        : "Drop media here to add to timeline"}
+                    </div>
                   </div>
                 )}
               </div>
@@ -1630,18 +1635,18 @@ function TimelineTrackContent({
     }
 
     if (mediaItem.type === "audio") {
-    return (
-      <div className="w-full h-full flex items-center gap-2">
-        <div className="flex-1 min-w-0">
-          <AudioWaveform 
-            audioUrl={mediaItem.url} 
-            height={24}
-            className="w-full"
-          />
+      return (
+        <div className="w-full h-full flex items-center gap-2">
+          <div className="flex-1 min-w-0">
+            <AudioWaveform
+              audioUrl={mediaItem.url}
+              height={24}
+              className="w-full"
+            />
+          </div>
         </div>
-      </div>
-    );
-  }
+      );
+    }
 
     // Fallback for videos without thumbnails
     return (
diff --git a/apps/web/src/lib/media-processing.ts b/apps/web/src/lib/media-processing.ts
index d241f41..daf22b3 100644
--- a/apps/web/src/lib/media-processing.ts
+++ b/apps/web/src/lib/media-processing.ts
@@ -11,11 +11,15 @@ import {
 export interface ProcessedMediaItem extends Omit<MediaItem, "id"> {}
 
 export async function processMediaFiles(
-  files: FileList | File[]
+  files: FileList | File[],
+  onProgress?: (progress: number) => void
 ): Promise<ProcessedMediaItem[]> {
   const fileArray = Array.from(files);
   const processedItems: ProcessedMediaItem[] = [];
 
+  const total = fileArray.length;
+  let completed = 0;
+
   for (const file of fileArray) {
     const fileType = getFileType(file);
 
@@ -57,6 +61,15 @@ export async function processMediaFiles(
         duration,
         aspectRatio,
       });
+
+      // Yield back to the event loop to keep the UI responsive
+      await new Promise((resolve) => setTimeout(resolve, 0));
+
+      completed += 1;
+      if (onProgress) {
+        const percent = Math.round((completed / total) * 100);
+        onProgress(percent);
+      }
     } catch (error) {
       console.error("Error processing file:", file.name, error);
       toast.error(`Failed to process ${file.name}`);