diff --git a/README.md b/README.md
index 40b6a3611e..04781ba94c 100644
--- a/README.md
+++ b/README.md
@@ -56,7 +56,7 @@
   - [`useAudio`](./docs/useAudio.md) — plays audio and exposes its controls. [![][img-demo]](https://codesandbox.io/s/2o4lo6rqy)
   - [`useClickAway`](./docs/useClickAway.md) — triggers callback when user clicks outside target area.
   - [`useCss`](./docs/useCss.md) — dynamically adjusts CSS.
-  - [`useDrop`](./docs/useDrop.md) — tracks file, link and copy-paste drops.
+  - [`useDrop` and `useDropArea`](./docs/useDrop.md) — tracks file, link and copy-paste drops.
   - [`useSpeech`](./docs/useSpeech.md) — synthesizes speech from a text string. [![][img-demo]](https://codesandbox.io/s/n090mqz69m)
   - [`useVideo`](./docs/useVideo.md) — plays video, tracks its state, and exposes playback controls. [![][img-demo]](https://streamich.github.io/react-use/?path=/story/ui-usevideo--demo)
   - [`useWait`](./docs/useWait.md) — complex waiting management for UIs.
diff --git a/docs/useDrop.md b/docs/useDrop.md
index 9f0e438aa0..5fee420849 100644
--- a/docs/useDrop.md
+++ b/docs/useDrop.md
@@ -1,10 +1,15 @@
-# `useDrop`
+# `useDrop` and `useDropArea`
 
-Triggers on file, link drop and copy-paste onto the page.
+Triggers on file, link drop and copy-paste.
+
+`useDrop` tracks events for the whole page, `useDropArea` tracks drop events
+for a specific element.
 
 
 ## Usage
 
+`useDrop`:
+
 ```jsx
 import {useDrop} from 'react-use';
 
@@ -22,3 +27,23 @@ const Demo = () => {
   );
 };
 ```
+
+`useDropArea`:
+
+```jsx
+import {useDropArea} from 'react-use';
+
+const Demo = () => {
+  const [bond, state] = useDropArea({
+    onFiles: files => console.log('files', files),
+    onUri: uri => console.log('uri', uri),
+    onText: text => console.log('text', text),
+  });
+
+  return (
+    <div {...bond}>
+      Drop something here.
+    </div>
+  );
+};
+```
diff --git a/package.json b/package.json
index cc3c389b25..712668c1a6 100644
--- a/package.json
+++ b/package.json
@@ -75,6 +75,10 @@
     }
   },
   "release": {
+    "branches": ["master", {
+      "name": "next",
+      "prerelease": "rc"
+    }],
     "verifyConditions": [
       "@semantic-release/changelog",
       "@semantic-release/npm",
diff --git a/src/__stories__/useDropArea.story.tsx b/src/__stories__/useDropArea.story.tsx
new file mode 100644
index 0000000000..fa231038eb
--- /dev/null
+++ b/src/__stories__/useDropArea.story.tsx
@@ -0,0 +1,50 @@
+import * as React from 'react';
+import {storiesOf} from '@storybook/react';
+import {action} from '@storybook/addon-actions';
+import {useDropArea} from '..';
+import ShowDocs from '../util/ShowDocs';
+
+const Demo = () => {
+  const [bond, state] = useDropArea({
+    onFiles: action('onFiles'),
+    onUri: action('onUri'),
+    onText: action('onText'),
+  });
+
+  const style: React.CSSProperties = {
+    width: 300,
+    height: 200,
+    margin: '50px auto',
+    border: '1px solid #000',
+    textAlign: 'center',
+    lineHeight: '200px',
+    ...(state.over
+      ? {
+          border: '1px solid green',
+          outline: '3px solid yellow',
+          background: '#f8f8f8',
+        }
+      : {}),
+  };
+
+  return (
+    <div>
+      <div {...bond} style={style}>Drop here</div>
+      <div style={{maxWidth: 300, margin: '0 auto'}}>
+        <ul style={{margin: 0, padding: '10px 18px'}}>
+          <li>See logs in <code>Actions</code> tab.</li>
+          <li>Drag in and drop files.</li>
+          <li><code>Cmd + V</code> paste text here.</li>
+          <li>Drag in images from other tabs.</li>
+          <li>Drag in link from navigation bar.</li>
+          <li>Below is state returned by the hook:</li>
+        </ul>
+        <pre>{JSON.stringify(state, null, 4)}</pre>
+      </div>
+    </div>
+  );
+};
+
+storiesOf('UI|useDropArea', module)
+  .add('Docs', () => <ShowDocs md={require('../../docs/useDrop.md')} />)
+  .add('Default', () => <Demo />);
diff --git a/src/index.ts b/src/index.ts
index 9046830812..bef549a943 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -5,6 +5,7 @@ import useAudio from './useAudio';
 import useBattery from './useBattery';
 import useBoolean from './useBoolean';
 import useDrop from './useDrop';
+import useDropArea from './useDropArea';
 import useCounter from './useCounter';
 import useCss from './useCss';
 import useDebounce from './useDebounce';
@@ -67,6 +68,7 @@ export {
   useBattery,
   useBoolean,
   useDrop,
+  useDropArea,
   useClickAway,
   useCounter,
   useCss,
diff --git a/src/useDropArea.ts b/src/useDropArea.ts
index 9710b7094e..2a6c8356a2 100644
--- a/src/useDropArea.ts
+++ b/src/useDropArea.ts
@@ -1,14 +1,85 @@
-import * as React from 'react';
-
-const useDropArea = (el: React.ReactElement<any>) => {
-  if (process.env.NODE_ENV !== 'production') {
-    if (!React.isValidElement(el)) {
-      throw new TypeError(
-        'useDropArea first argument must be a valid ' +
-        'React element, such as <div/>.'
-      );
-    }
+import {useMemo, useState} from 'react';
+import useRefMounted from './useRefMounted';
+
+export interface DropAreaState {
+  over: boolean;
+}
+
+export interface DropAreaBond {
+  onDragOver: React.DragEventHandler;
+  onDragEnter: React.DragEventHandler;
+  onDragLeave: React.DragEventHandler;
+  onDrop: React.DragEventHandler;
+  onPaste: React.ClipboardEventHandler;
+}
+
+export interface DropAreaOptions {
+  onFiles?: (files: File[], event?) => void;
+  onText?: (text: string, event?) => void;
+  onUri?: (url: string, event?) => void;
+}
+
+const noop = () => {};
+const defaultState: DropAreaState = {
+  over: false,
+};
+
+const createProcess = (options: DropAreaOptions, mounted: React.RefObject<boolean>) => (
+  dataTransfer: DataTransfer,
+  event,
+) => {
+  const uri = dataTransfer.getData('text/uri-list');
+
+  if (uri) {
+    (options.onUri || noop)(uri, event);
+    return;
   }
+
+  if (dataTransfer.files && dataTransfer.files.length) {
+    (options.onFiles || noop)(Array.from(dataTransfer.files), event);
+    return;
+  }
+
+  if (dataTransfer.items && dataTransfer.items.length) {
+    dataTransfer.items[0].getAsString((text) => {
+      if (mounted.current) {
+        (options.onText || noop)(text, event);
+      }
+    });
+  }
+};
+
+const createBond = (process, setOver): DropAreaBond => ({
+  onDragOver: (event) => {
+    event.preventDefault();
+  },
+  onDragEnter: (event) => {
+    event.preventDefault();
+    setOver(true);
+  },
+  onDragLeave: () => {
+    setOver(false);
+  },
+  onDrop: (event) => {
+    event.preventDefault();
+    event.persist();
+    setOver(false);
+    process(event.dataTransfer, event);
+  },
+  onPaste: (event) => {
+    event.persist();
+    process(event.clipboardData, event);
+  },
+});
+
+const useDropArea = (options: DropAreaOptions = {}): [DropAreaBond, DropAreaState] => {
+  const {onFiles, onText, onUri} = options;
+  const mounted = useRefMounted();
+  const [over, setOver] = useState<boolean>(false);
+  const process = useMemo(() => createProcess(options, mounted), [onFiles, onText, onUri]);
+  const bond: DropAreaBond = useMemo(() => createBond(process, setOver), [process, setOver]);
+
+  return [bond, {over}];
 };
 
 export default useDropArea;