diff --git a/UI/BagFrame.lua b/UI/BagFrame.lua
index 20ebe8a..fdc8e17 100644
--- a/UI/BagFrame.lua
+++ b/UI/BagFrame.lua
@@ -276,9 +276,28 @@ function BagFrame:Update()
 	end
 
 	-- If cursor is holding an item (mid-drag), only update lock states, don't rebuild UI
+	-- BUT only if we already have items displayed - otherwise we need to do initial build
 	if CursorHasItem and CursorHasItem() then
-		self:UpdateLockStates()
-		return
+		-- Check if we have any displayed items
+		local hasDisplayedItems = false
+		for _, bagParent in pairs(bagParents) do
+			if bagParent then
+				local children = { bagParent:GetChildren() }
+				for _, button in ipairs(children) do
+					if button.hasItem and button:IsShown() then
+						hasDisplayedItems = true
+						break
+					end
+				end
+			end
+			if hasDisplayedItems then break end
+		end
+
+		if hasDisplayedItems then
+			self:UpdateLockStates()
+			return
+		end
+		-- If no items displayed yet, continue with full update
 	end
 
 	-- Mark all existing buttons as not in use (we'll mark active ones during display)
diff --git a/UI/BankFrame.lua b/UI/BankFrame.lua
index 4e2a5a9..c3f087b 100644
--- a/UI/BankFrame.lua
+++ b/UI/BankFrame.lua
@@ -128,9 +128,28 @@ function BankFrame:Update()
     end
 
     -- If cursor is holding an item (mid-drag), only update lock states, don't rebuild UI
+    -- BUT only if we already have items displayed - otherwise we need to do initial build
     if CursorHasItem and CursorHasItem() then
-        self:UpdateLockStates()
-        return
+        -- Check if we have any displayed items
+        local hasDisplayedItems = false
+        for _, bankBagParent in pairs(bankBagParents) do
+            if bankBagParent then
+                local children = { bankBagParent:GetChildren() }
+                for _, button in ipairs(children) do
+                    if button.hasItem and button:IsShown() then
+                        hasDisplayedItems = true
+                        break
+                    end
+                end
+            end
+            if hasDisplayedItems then break end
+        end
+
+        if hasDisplayedItems then
+            self:UpdateLockStates()
+            return
+        end
+        -- If no items displayed yet, continue with full update
     end
 
     -- Mark all existing buttons as not in use (we'll mark active ones during display)