diff --git a/ChangeLog b/ChangeLog
index 2ea261f258..866cffae92 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,17 @@
+2008-03-24  Tor Lillqvist  <tml@novell.com>
+
+	Bug 524151 - Dragging of 0-byte files results in an empty filename
+	on Windows XP and above
+
+	* gdk/win32/gdkdnd-win32.c (resolve_link): Check for the file
+	being empty first. For some reason ISHellLink and IPersistFile
+	succeeds in interpreting empty files as shortcuts, claiming the
+	target of the shortcut is an empty path.
+
+	Change the function to take the wide character file name that the
+	caller already has anyway, to avoid a superfluous conversion from
+	UTF-8 to UTF-16.
+
 2008-03-23  Björn Lindqvist  <bjourne@gmail.com>
 
 	* gdk-pixbuf/gdk-pixbuf-io.c (gdk_pixbuf_new_from_xpm_data): Guard
diff --git a/gdk/win32/gdkdnd-win32.c b/gdk/win32/gdkdnd-win32.c
index b8d940a046..d397ebf57c 100644
--- a/gdk/win32/gdkdnd-win32.c
+++ b/gdk/win32/gdkdnd-win32.c
@@ -851,15 +851,24 @@ enum_formats_new (void)
 
 /* From MS Knowledge Base article Q130698 */
 
-static HRESULT 
+static gboolean
 resolve_link (HWND     hWnd,
-	      guchar  *lpszLinkName,
+	      wchar_t *link,
 	      guchar **lpszPath)
 {
+  WIN32_FILE_ATTRIBUTE_DATA wfad;
   HRESULT hres;
   IShellLinkW *pslW = NULL;
   IPersistFile *ppf = NULL;
 
+  /* Check if the file is empty first because IShellLink::Resolve for
+   * some reason succeeds with an empty file and returns an empty
+   * "link target". (#524151)
+   */
+    if (!GetFileAttributesExW (link, GetFileExInfoStandard, &wfad) ||
+	(wfad.nFileSizeHigh == 0 && wfad.nFileSizeLow == 0))
+      return FALSE;
+
   /* Assume failure to start with: */
   *lpszPath = 0;
 
@@ -887,12 +896,8 @@ resolve_link (HWND     hWnd,
 
   if (SUCCEEDED (hres))
     {
-      /* Convert the given link name string to wide character string. */
-      wchar_t *wsz = g_utf8_to_utf16 (lpszLinkName, -1, NULL, NULL, NULL);
-
       /* Load the file. */
-      hres = ppf->lpVtbl->Load (ppf, wsz, STGM_READ);
-      g_free (wsz);
+      hres = ppf->lpVtbl->Load (ppf, link, STGM_READ);
     }
   
   if (SUCCEEDED (hres))
@@ -977,7 +982,7 @@ gdk_dropfiles_filter (GdkXEvent *xev,
 	  fileName = g_utf16_to_utf8 (wfn, -1, NULL, NULL, NULL);
 
 	  /* Resolve shortcuts */
-	  if (resolve_link (msg->hwnd, fileName, &linkedFile))
+	  if (resolve_link (msg->hwnd, wfn, &linkedFile))
 	    {
 	      uri = g_filename_to_uri (linkedFile, NULL, NULL);
 	      g_free (linkedFile);