diff --git a/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp b/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp
index b7dd9d10820..2bb6b5aded8 100644
--- a/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp
+++ b/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp
@@ -551,20 +551,46 @@ void NavigatorTreeModel::handleItemLibraryImageDrop(const QMimeData *mimeData, i
     NodeAbstractProperty targetProperty;
 
     bool foundTarget = findTargetProperty(rowModelIndex, this, &targetProperty, &targetRowNumber);
-
     if (foundTarget) {
-        const QString imageFileName = QString::fromUtf8(mimeData->data("application/vnd.bauhaus.libraryresource"));
-        const QmlItemNode newQmlItemNode = QmlItemNode::createQmlItemNodeFromImage(m_view, imageFileName, QPointF(), targetProperty);
+        ModelNode targetNode(modelNodeForIndex(rowModelIndex));
 
-        if (newQmlItemNode.isValid()) {
-            QList<ModelNode> newModelNodeList;
-            newModelNodeList.append(newQmlItemNode);
+        const QString imageSource = QString::fromUtf8(mimeData->data("application/vnd.bauhaus.libraryresource")); // absolute path
+        const QString imageFileName = imageSource.mid(imageSource.lastIndexOf('/') + 1);
+        ModelNode newModelNode;
 
-            moveNodesInteractive(targetProperty, newModelNodeList, targetRowNumber);
+        if (targetNode.isSubclassOf("QtQuick3D.DefaultMaterial")) {
+            // if dropping an image on a default material, create a texture instead of image
+            m_view->executeInTransaction("QmlItemNode::createQmlItemNode", [&] {
+                // create a texture item lib
+                ItemLibraryEntry itemLibraryEntry;
+                itemLibraryEntry.setName("Texture");
+                itemLibraryEntry.setType("QtQuick3D.Texture", 1, 0);
+
+                // set texture source
+                PropertyName prop = "source";
+                QString type = "QUrl";
+                QVariant val = imageFileName;
+                itemLibraryEntry.addProperty(prop, type, val);
+
+                // create a texture
+                newModelNode = QmlItemNode::createQmlObjectNode(m_view, itemLibraryEntry, {}, targetProperty, false);
+
+                // set the texture to parent material's diffuseMap property
+                // TODO: allow the user to choose which map property to set the texture for
+                targetNode.bindingProperty("diffuseMap").setExpression(newModelNode.validId());
+            });
+        } else if (targetNode.isSubclassOf("QtQuick3D.Texture")) {
+            // if dropping an image on a texture, set the texture source
+            targetNode.variantProperty("source").setValue(imageFileName);
+        } else {
+            // create an image
+            newModelNode = QmlItemNode::createQmlItemNodeFromImage(m_view, imageSource , QPointF(), targetProperty);
         }
 
-        if (newQmlItemNode.isValid())
-            m_view->selectModelNode(newQmlItemNode.modelNode());
+        if (newModelNode.isValid()) {
+            moveNodesInteractive(targetProperty, {newModelNode}, targetRowNumber);
+            m_view->setSelectedModelNode(newModelNode);
+        }
     }
 }
 
diff --git a/src/plugins/qmldesigner/designercore/include/qmlvisualnode.h b/src/plugins/qmldesigner/designercore/include/qmlvisualnode.h
index 65f3e96aa08..aae262686ae 100644
--- a/src/plugins/qmldesigner/designercore/include/qmlvisualnode.h
+++ b/src/plugins/qmldesigner/designercore/include/qmlvisualnode.h
@@ -94,13 +94,11 @@ public:
                                              const Position &position,
                                              QmlVisualNode parentQmlItemNode);
 
-
-
-
     static QmlObjectNode createQmlObjectNode(AbstractView *view,
                                              const ItemLibraryEntry &itemLibraryEntry,
                                              const Position &position,
-                                             NodeAbstractProperty parentproperty);
+                                             NodeAbstractProperty parentProperty,
+                                             bool createInTransaction = true);
 
     static QmlVisualNode createQml3DNode(AbstractView *view,
                                              const ItemLibraryEntry &itemLibraryEntry,
diff --git a/src/plugins/qmldesigner/designercore/model/qmlvisualnode.cpp b/src/plugins/qmldesigner/designercore/model/qmlvisualnode.cpp
index fe2e2fd49e8..ab9acc25e8c 100644
--- a/src/plugins/qmldesigner/designercore/model/qmlvisualnode.cpp
+++ b/src/plugins/qmldesigner/designercore/model/qmlvisualnode.cpp
@@ -243,11 +243,12 @@ static QmlObjectNode createQmlObjectNodeFromSource(AbstractView *view,
 QmlObjectNode QmlVisualNode::createQmlObjectNode(AbstractView *view,
                                                  const ItemLibraryEntry &itemLibraryEntry,
                                                  const Position &position,
-                                                 NodeAbstractProperty parentproperty)
+                                                 NodeAbstractProperty parentProperty,
+                                                 bool createInTransaction)
 {
     QmlObjectNode newQmlObjectNode;
 
-    view->executeInTransaction("QmlItemNode::createQmlItemNode", [=, &newQmlObjectNode, &parentproperty](){
+    auto createNodeFunc = [=, &newQmlObjectNode, &parentProperty]() {
         NodeMetaInfo metaInfo = view->model()->metaInfo(itemLibraryEntry.typeName());
 
         int minorVersion = metaInfo.minorVersion();
@@ -274,8 +275,8 @@ QmlObjectNode QmlVisualNode::createQmlObjectNode(AbstractView *view,
             newQmlObjectNode = createQmlObjectNodeFromSource(view, itemLibraryEntry.qmlSource(), position);
         }
 
-        if (parentproperty.isValid())
-            parentproperty.reparentHere(newQmlObjectNode);
+        if (parentProperty.isValid())
+            parentProperty.reparentHere(newQmlObjectNode);
 
         if (!newQmlObjectNode.isValid())
             return;
@@ -289,7 +290,12 @@ QmlObjectNode QmlVisualNode::createQmlObjectNode(AbstractView *view,
             newQmlObjectNode.modelNode().variantProperty(propertyBindingEntry.first).setEnumeration(propertyBindingEntry.second.toUtf8());
 
         Q_ASSERT(newQmlObjectNode.isValid());
-    });
+    };
+
+    if (createInTransaction)
+        view->executeInTransaction("QmlItemNode::createQmlItemNode", createNodeFunc);
+    else
+        createNodeFunc();
 
     Q_ASSERT(newQmlObjectNode.isValid());