diff --git a/course/lib.php b/course/lib.php
index 54dfc74f8fd..60a8d72868d 100644
--- a/course/lib.php
+++ b/course/lib.php
@@ -3144,13 +3144,16 @@ function moveto_module($mod, $section, $beforemod=NULL) {
 
 /// Update module itself if necessary
 
-    if ($mod->section != $section->id) {
-        $mod->section = $section->id;
-        $DB->update_record("course_modules", $mod);
-        // if moving to a hidden section then hide module
-        if (!$section->visible) {
-            set_coursemodule_visible($mod->id, 0);
-        }
+    // If moving to a hidden section then hide module.
+    if (!$section->visible && $mod->visible) {
+        // Set this in the object because it is sent as a response to ajax calls.
+        set_coursemodule_visible($mod->id, 0, true);
+        $mod->visible = 0;
+    }
+    if ($section->visible && !$mod->visible) {
+        set_coursemodule_visible($mod->id, 1, true);
+        // Set this in the object because it is sent as a response to ajax calls.
+        $mod->visible = $mod->visibleold;
     }
 
 /// Add the module into the new section
diff --git a/course/modedit.php b/course/modedit.php
index 7aa8667a588..00cc3181800 100644
--- a/course/modedit.php
+++ b/course/modedit.php
@@ -481,6 +481,7 @@ if ($mform->is_cancelled()) {
         // make sure visibility is set correctly (in particular in calendar)
         // note: allow them to set it even without moodle/course:activityvisibility
         set_coursemodule_visible($fromform->coursemodule, $fromform->visible);
+        $DB->set_field('course_modules', 'visibleold', 1, array('id' => $fromform->coursemodule));
 
         if (isset($fromform->cmidnumber)) { //label
             // set cm idnumber - uniqueness is already verified by form validation
diff --git a/course/rest.php b/course/rest.php
index a7b55c9d913..11b58aa8cba 100644
--- a/course/rest.php
+++ b/course/rest.php
@@ -138,6 +138,7 @@ switch($requestmethod) {
                         }
 
                         moveto_module($cm, $section, $beforemod);
+                        echo json_encode(array('visible' => $cm->visible));
                         break;
                     case 'gettitle':
                         require_capability('moodle/course:manageactivities', $modcontext);
diff --git a/course/yui/dragdrop/dragdrop.js b/course/yui/dragdrop/dragdrop.js
index bd35bd9a6e7..e741d9c67e4 100644
--- a/course/yui/dragdrop/dragdrop.js
+++ b/course/yui/dragdrop/dragdrop.js
@@ -385,6 +385,9 @@ YUI.add('moodle-course-dragdrop', function(Y) {
                         spinner.show();
                     },
                     success: function(tid, response) {
+                        var responsetext = Y.JSON.parse(response.responseText);
+                        var params = {element: dragnode, visible: responsetext.visible};
+                        M.course.coursebase.invoke_function('set_visibility_resource_ui', params);
                         this.unlock_drag_handle(drag, CSS.EDITINGMOVE);
                         window.setTimeout(function(e) {
                             spinner.hide();
diff --git a/course/yui/toolboxes/toolboxes.js b/course/yui/toolboxes/toolboxes.js
index 2486fba1443..1f877327513 100644
--- a/course/yui/toolboxes/toolboxes.js
+++ b/course/yui/toolboxes/toolboxes.js
@@ -600,6 +600,26 @@ YUI.add('moodle-course-toolboxes', function(Y) {
                 }
             }, this);
             listenevents.push(thisevent);
+        },
+        /**
+         * Set the visibility of the current resource (identified by the element)
+         * to match the hidden parameter (this is not a toggle).
+         * Only changes the visibility in the browser (no ajax update).
+         * @param args An object with 'element' being the A node containing the resource
+         *             and 'visible' being the state that the visiblity should be set to.
+         * @return void
+         */
+        set_visibility_resource_ui: function(args) {
+            var element = args.element;
+            var shouldbevisible = args.visible;
+            var buttonnode = element.one(CSS.SHOW);
+            var visible = (buttonnode === null);
+            if (visible) {
+                buttonnode = element.one(CSS.HIDE);
+            }
+            if (visible != shouldbevisible) {
+                this.toggle_hide_resource_ui(buttonnode);
+            }
         }
     }, {
         NAME : 'course-resource-toolbox',