diff --git a/apps/web/src/components/editor/preview-panel.tsx b/apps/web/src/components/editor/preview-panel.tsx
index 593758e..74bf5f9 100644
--- a/apps/web/src/components/editor/preview-panel.tsx
+++ b/apps/web/src/components/editor/preview-panel.tsx
@@ -11,39 +11,59 @@ import { Play, Pause } from "lucide-react";
 export function PreviewPanel() {
   const { tracks } = useTimelineStore();
   const { mediaItems } = useMediaStore();
-  const { isPlaying, toggle } = usePlaybackStore();
+  const { isPlaying, toggle, currentTime } = usePlaybackStore();
 
-  const firstClip = tracks[0]?.clips[0];
-  const firstMediaItem = firstClip
-    ? mediaItems.find((item) => item.id === firstClip.mediaId)
+  // Find the active clip at the current playback time
+  const getActiveClip = () => {
+    for (const track of tracks) {
+      for (const clip of track.clips) {
+        const clipStart = clip.startTime;
+        const clipEnd = clip.startTime + (clip.duration - clip.trimStart - clip.trimEnd);
+
+        if (currentTime >= clipStart && currentTime < clipEnd) {
+          return clip;
+        }
+      }
+    }
+    return null;
+  };
+
+  const activeClip = getActiveClip();
+  const activeMediaItem = activeClip
+    ? mediaItems.find((item) => item.id === activeClip.mediaId)
     : null;
 
-  const aspectRatio = firstMediaItem?.aspectRatio || 16 / 9;
+  const aspectRatio = activeMediaItem?.aspectRatio || 16 / 9;
 
   const renderContent = () => {
-    if (!firstMediaItem) {
+    if (!activeMediaItem || !activeClip) {
       return (
         <div className="absolute inset-0 flex items-center justify-center text-muted-foreground/50">
-          Drop media to start editing
+          {tracks.length === 0 ? "Drop media to start editing" : "No clip at current time"}
         </div>
       );
     }
 
-    if (firstMediaItem.type === "video") {
+    // Calculate the relative time within the clip (accounting for trim)
+    const relativeTime = Math.max(0, currentTime - activeClip.startTime + activeClip.trimStart);
+
+    if (activeMediaItem.type === "video") {
       return (
         <VideoPlayer
-          src={firstMediaItem.url}
-          poster={firstMediaItem.thumbnailUrl}
+          src={activeMediaItem.url}
+          poster={activeMediaItem.thumbnailUrl}
           className="w-full h-full"
+          startTime={relativeTime}
+          key={`${activeClip.id}-${activeClip.trimStart}-${activeClip.trimEnd}`}
         />
       );
     }
 
-    if (firstMediaItem.type === "image") {
+    if (activeMediaItem.type === "image") {
       return (
         <ImageTimelineTreatment
-          src={firstMediaItem.url}
-          alt={firstMediaItem.name}
+          src={activeMediaItem.url}
+          alt={activeMediaItem.name}
           targetAspectRatio={aspectRatio}
           className="w-full h-full"
           backgroundType="blur"
@@ -51,12 +71,12 @@ export function PreviewPanel() {
       );
     }
 
-    if (firstMediaItem.type === "audio") {
+    if (activeMediaItem.type === "audio") {
       return (
         <div className="absolute inset-0 flex items-center justify-center bg-gradient-to-br from-green-500/20 to-emerald-500/20">
           <div className="text-center">
             <div className="text-6xl mb-4">🎵</div>
-            <p className="text-muted-foreground">{firstMediaItem.name}</p>
+            <p className="text-muted-foreground">{activeMediaItem.name}</p>
             <Button
               variant="outline"
               className="mt-4"
@@ -88,10 +108,10 @@ export function PreviewPanel() {
         {renderContent()}
       </div>
 
-      {firstMediaItem && (
+      {activeMediaItem && (
         <div className="mt-4 text-center">
           <p className="text-sm text-muted-foreground">
-            {firstMediaItem.name}
+            {activeMediaItem.name}
           </p>
           <p className="text-xs text-muted-foreground/70">
             {aspectRatio.toFixed(2)} • {aspectRatio > 1 ? "Landscape" : aspectRatio < 1 ? "Portrait" : "Square"}
diff --git a/apps/web/src/components/editor/timeline.tsx b/apps/web/src/components/editor/timeline.tsx
index ed9128d..be53299 100644
--- a/apps/web/src/components/editor/timeline.tsx
+++ b/apps/web/src/components/editor/timeline.tsx
@@ -259,19 +259,6 @@ export function Timeline() {
         >
           {/* Timeline Header */}
           <div className="py-3 relative bg-muted/30 border-b">
-            {/* Playhead */}
-            {duration > 0 && (
-              <div
-                className="absolute top-0 bottom-0 w-0.5 bg-red-500 pointer-events-none z-10"
-                style={{
-                  left: `${(currentTime / (duration / zoomLevel)) * 100}%`,
-                  transform: 'translateX(-50%)'
-                }}
-              >
-                <div className="absolute -top-1 left-1/2 transform -translate-x-1/2 w-3 h-3 bg-red-500 rounded-full border-2 border-white shadow-sm" />
-              </div>
-            )}
-
             {/* Zoom indicator */}
             <div className="absolute top-1 right-2 text-xs text-muted-foreground">
               {zoomLevel.toFixed(1)}x
@@ -301,14 +288,15 @@ export function Timeline() {
             )}
 
             {/* Playhead for tracks area */}
-            {tracks.length > 0 && duration > 0 && (
+            {tracks.length > 0 && (
               <div
-                className="absolute top-0 bottom-0 w-0.5 bg-red-500/80 pointer-events-none z-10"
+                className="absolute top-0 bottom-0 w-0.5 bg-red-500 pointer-events-none z-20"
                 style={{
-                  left: `${(currentTime / (duration / zoomLevel)) * 100}%`,
-                  transform: 'translateX(-50%)'
+                  left: `${currentTime * 50 * zoomLevel + 128}px`,
                 }}
-              />
+              >
+                <div className="absolute -top-8 left-1/2 transform -translate-x-1/2 w-3 h-3 bg-red-500 rounded-full border-2 border-white shadow-sm" />
+              </div>
             )}
           </div>
         </div>
@@ -321,6 +309,7 @@ function TimelineTrackComponent({ track, zoomLevel }: { track: TimelineTrack, zo
   const { mediaItems } = useMediaStore();
   const { moveClipToTrack, updateClipTrim, updateClipStartTime } = useTimelineStore();
   const [isDropping, setIsDropping] = useState(false);
+  const [dropPosition, setDropPosition] = useState<number | null>(null);
   const [resizing, setResizing] = useState<{
     clipId: string;
     side: 'left' | 'right';
diff --git a/apps/web/src/components/ui/video-player.tsx b/apps/web/src/components/ui/video-player.tsx
index 127cc5d..d31f711 100644
--- a/apps/web/src/components/ui/video-player.tsx
+++ b/apps/web/src/components/ui/video-player.tsx
@@ -9,9 +9,10 @@ interface VideoPlayerProps {
     src: string;
     poster?: string;
     className?: string;
+    startTime?: number;
 }
 
-export function VideoPlayer({ src, poster, className = "" }: VideoPlayerProps) {
+export function VideoPlayer({ src, poster, className = "", startTime = 0 }: VideoPlayerProps) {
     const videoRef = useRef<HTMLVideoElement>(null);
     const { isPlaying, currentTime, volume, play, pause, setVolume, setDuration, setCurrentTime } = usePlaybackStore();
 
@@ -25,6 +26,9 @@ export function VideoPlayer({ src, poster, className = "" }: VideoPlayerProps) {
 
         const handleLoadedMetadata = () => {
             setDuration(video.duration);
+            if (startTime > 0) {
+                video.currentTime = startTime;
+            }
         };
 
         const handleSeekEvent = (e: CustomEvent) => {