diff --git a/src/move.c b/src/move.c
index 0b3ab660..284c4f38 100644
--- a/src/move.c
+++ b/src/move.c
@@ -125,7 +125,11 @@ static void move_to_output_directed(Con *con, direction_t direction) {
  *
  */
 void tree_move(int direction) {
+    position_t position;
+    Con *target;
+
     DLOG("Moving in direction %d\n", direction);
+
     /* 1: get the first parent with the same orientation */
     Con *con = focused;
 
@@ -173,7 +177,13 @@ void tree_move(int direction) {
                           TAILQ_PREV(con, nodes_head, nodes) :
                           TAILQ_NEXT(con, nodes)))) {
                 if (!con_is_leaf(swap)) {
-                    insert_con_into(con, con_descend_focused(swap), AFTER);
+                    DLOG("Moving into our bordering branch\n");
+                    target = con_descend_direction(swap, direction);
+                    position = (con_orientation(target->parent) != o ||
+                            direction == D_UP ||
+                            direction == D_LEFT ?
+                            AFTER : BEFORE);
+                    insert_con_into(con, target, position);
                     goto end;
                 }
                 if (direction == D_LEFT || direction == D_UP)
@@ -214,22 +224,24 @@ void tree_move(int direction) {
     }
 
     DLOG("above = %p\n", above);
-    Con *next;
-    position_t position;
-    if (direction == D_UP || direction == D_LEFT) {
-        position = BEFORE;
-        next = TAILQ_PREV(above, nodes_head, nodes);
-    } else {
-        position = AFTER;
-        next = TAILQ_NEXT(above, nodes);
-    }
 
-    /* special case: there is a split container in the direction we are moving
-     * to, so descend and append */
-    if (next && !con_is_leaf(next))
-        insert_con_into(con, con_descend_focused(next), AFTER);
-    else
+    Con *next = (direction == D_UP || direction == D_LEFT ?
+            TAILQ_PREV(above, nodes_head, nodes) :
+            TAILQ_NEXT(above, nodes));
+
+    if (next && !con_is_leaf(next)) {
+        DLOG("Moving into the bordering branch of our adjacent container\n");
+        target = con_descend_direction(next, direction);
+        position = (con_orientation(target->parent) != o ||
+                direction == D_UP ||
+                direction == D_LEFT ?
+                AFTER : BEFORE);
+        insert_con_into(con, target, position);
+    } else {
+        DLOG("Moving into container above\n");
+        position = (direction == D_UP || direction == D_LEFT ? BEFORE : AFTER);
         insert_con_into(con, above, position);
+    }
 
 end:
     /* We need to call con_focus() to fix the focus stack "above" the container
diff --git a/testcases/t/213-move-branch-position.t b/testcases/t/213-move-branch-position.t
new file mode 100644
index 00000000..c2928c9e
--- /dev/null
+++ b/testcases/t/213-move-branch-position.t
@@ -0,0 +1,376 @@
+#!perl
+# vim:ts=4:sw=4:expandtab
+#
+# Please read the following documents before working on tests:
+# • http://build.i3wm.org/docs/testsuite.html
+#   (or docs/testsuite)
+#
+# • http://build.i3wm.org/docs/lib-i3test.html
+#   (alternatively: perldoc ./testcases/lib/i3test.pm)
+#
+# • http://build.i3wm.org/docs/ipc.html
+#   (or docs/ipc)
+#
+# • http://onyxneon.com/books/modern_perl/modern_perl_a4.pdf
+#   (unless you are already familiar with Perl)
+#
+# Test that movement of a con into a branch will place the moving con at the
+# correct position within the branch.
+#
+# If the direction of movement is the same as the orientation of the branch
+# container, append or prepend the container to the branch in the obvious way.
+# If the movement is to the right or downward, insert the moving container in
+# the first position (i.e., the leftmost or top position resp.) If the movement
+# is to the left or upward, insert the moving container in the last position
+# (i.e., the rightmost or bottom position resp.)
+#
+# If the direction of movement is different from the orientation of the branch
+# container, insert the container into the branch after the focused-inactive
+# container.
+#
+# For testing purposes, we will demonstrate the behavior for tabbed containers
+# to represent the case of split-horizontal branches and stacked containers to
+# represent the case of split-vertical branches.
+#
+# Ticket: #1060
+# Bug still in: 4.6-109-g18cfc36
+
+use i3test;
+
+# Opens tabs on the presently focused branch and adds several additional
+# windows. Shifts focus to somewhere in the middle of the tabs so the most
+# general case can be assumed.
+sub open_tabs {
+    cmd 'layout tabbed';
+    open_window;
+    open_window;
+    open_window;
+    open_window;
+    cmd 'focus left; focus left'
+}
+
+# Likewise for a stack
+sub open_stack {
+    cmd 'layout stacking';
+    open_window;
+    open_window;
+    open_window;
+    open_window;
+    cmd 'focus up; focus up'
+}
+
+# Gets the position of the given leaf within the given branch. The first
+# position is one (1). Returns negative one (-1) if the leaf cannot be found
+# within the branch.
+sub get_leaf_position {
+    my ($branch, $leaf) = @_;
+    my $position = -1;
+    for my $i (0 .. @{$branch->{nodes}}) {
+        if ($branch->{nodes}[$i]->{id} == $leaf) {
+            $position = $i + 1;
+            last;
+        };
+    }
+    return $position;
+}
+
+# convenience function to focus a con by id to avoid having to type an ugly
+# command each time
+sub focus_con {
+    my $con_id = shift @_;
+    cmd "[con_id=\"$con_id\"] focus";
+}
+
+# Places a leaf into a branch and focuses the leaf. The newly created branch
+# will have orientation specified by the second parameter.
+sub branchify {
+    my ($con_id, $orientation) = @_;
+    focus_con($con_id);
+    $orientation eq 'horizontal' ? cmd 'splith' : cmd 'splitv';
+    open_window;
+    focus_con($con_id);
+}
+
+##############################################################################
+# When moving a con right into tabs, the moving con should be placed as the
+# first tab in the branch
+##############################################################################
+my $ws = fresh_workspace;
+
+# create the target leaf
+open_window;
+my $target_leaf = get_focused($ws);
+
+# create the tabbed branch container
+open_window;
+cmd 'splith';
+open_tabs;
+
+# move the target leaf into the tabbed branch
+focus_con($target_leaf);
+cmd 'move right';
+
+# the target leaf should be the first in the branch
+my $branch = shift @{get_ws_content($ws)};
+is($branch->{nodes}[0]->{id}, $target_leaf, 'moving con right into tabs placed it as the first tab in the branch');
+
+# repeat the test when the target is in a branch
+cmd 'move up; move left';
+branchify($target_leaf, 'vertical');
+cmd 'move right';
+
+$branch = pop @{get_ws_content($ws)};
+is($branch->{nodes}[0]->{id}, $target_leaf, 'moving con right into tabs from a branch placed it as the first tab in the branch');
+
+##############################################################################
+# When moving a con right into a stack, the moving con should be placed
+# below the focused-inactive leaf
+##############################################################################
+$ws = fresh_workspace;
+
+# create the target leaf
+open_window;
+$target_leaf = get_focused($ws);
+
+# create the stacked branch container and find the focused leaf
+open_window;
+cmd 'splith';
+open_stack;
+my $secondary_leaf = get_focused($ws);
+
+# move the target leaf into the stacked branch
+focus_con($target_leaf);
+cmd 'move right';
+
+# the secondary focus leaf should be below the target
+$branch = shift @{get_ws_content($ws)};
+my $target_leaf_position = get_leaf_position($branch, $target_leaf);
+my $secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con right into a stack placed it below the focused-inactive leaf');
+
+# repeat the test when the target is in a branch
+cmd 'move up; move left';
+branchify($target_leaf, 'vertical');
+cmd 'move right';
+
+$branch = pop @{get_ws_content($ws)};
+$target_leaf_position = get_leaf_position($branch, $target_leaf);
+$secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con right into a stack from a branch placed it below the focused-inactive leaf');
+
+##############################################################################
+# When moving a con down into a stack, the moving con should be placed at the
+# top of the stack
+##############################################################################
+$ws = fresh_workspace;
+cmd 'layout splitv';
+
+# create the target leaf
+open_window;
+$target_leaf = get_focused($ws);
+
+# create the stacked branch container
+open_window;
+cmd 'splitv';
+open_stack;
+
+# move the target leaf into the stacked branch
+focus_con($target_leaf);
+cmd 'move down';
+
+# the target leaf should be on the top of the stack
+$branch = shift @{get_ws_content($ws)};
+is($branch->{nodes}[0]->{id}, $target_leaf, 'moving con down into a stack placed it on the top of the stack');
+
+# repeat the test when the target is in a branch
+cmd 'move right; move up';
+branchify($target_leaf, 'horizontal');
+cmd 'move down';
+
+$branch = pop @{get_ws_content($ws)};
+is($branch->{nodes}[0]->{id}, $target_leaf, 'moving con down into a stack from a branch placed it on the top of the stack');
+
+##############################################################################
+# When moving a con down into tabs, the moving con should be placed after the
+# focused-inactive tab
+##############################################################################
+$ws = fresh_workspace;
+cmd 'layout splitv';
+
+# create the target leaf
+open_window;
+$target_leaf = get_focused($ws);
+
+# create the tabbed branch container and find the focused tab
+open_window;
+cmd 'splitv';
+open_tabs;
+$secondary_leaf = get_focused($ws);
+
+# move the target leaf into the tabbed branch
+focus_con($target_leaf);
+cmd 'move down';
+
+# the secondary focus tab should be to the right
+$branch = shift @{get_ws_content($ws)};
+$target_leaf_position = get_leaf_position($branch, $target_leaf);
+$secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con down into tabs placed it after the focused-inactive tab');
+
+# repeat the test when the target is in a branch
+cmd 'move right; move up';
+branchify($target_leaf, 'horizontal');
+cmd 'move down';
+
+$branch = pop @{get_ws_content($ws)};
+$target_leaf_position = get_leaf_position($branch, $target_leaf);
+$secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con down into tabs from a branch placed it after the focused-inactive tab');
+
+##############################################################################
+# When moving a con left into tabs, the moving con should be placed as the last
+# tab in the branch
+##############################################################################
+$ws = fresh_workspace;
+
+# create the tabbed branch container
+open_window;
+cmd 'splith';
+open_tabs;
+
+# create the target leaf
+cmd 'focus parent';
+open_window;
+$target_leaf = get_focused($ws);
+
+# move the target leaf into the tabbed branch
+cmd 'move left';
+
+# the target leaf should be last in the branch
+$branch = shift @{get_ws_content($ws)};
+
+is($branch->{nodes}->[-1]->{id}, $target_leaf, 'moving con left into tabs placed it as the last tab in the branch');
+
+# repeat the test when the target leaf is in a branch
+cmd 'move up; move right';
+branchify($target_leaf, 'vertical');
+cmd 'move left';
+
+$branch = shift @{get_ws_content($ws)};
+is($branch->{nodes}->[-1]->{id}, $target_leaf, 'moving con left into tabs from a branch placed it as the last tab in the branch');
+
+##############################################################################
+# When moving a con left into a stack, the moving con should be placed below
+# the focused-inactive leaf
+##############################################################################
+$ws = fresh_workspace;
+
+# create the stacked branch container and find the focused leaf
+open_window;
+open_stack;
+$secondary_leaf = get_focused($ws);
+
+# create the target leaf to the right
+cmd 'focus parent';
+open_window;
+$target_leaf = get_focused($ws);
+
+# move the target leaf into the stacked branch
+cmd 'move left';
+
+# the secondary focus leaf should be below
+$branch = shift @{get_ws_content($ws)};
+$target_leaf_position = get_leaf_position($branch, $target_leaf);
+$secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con left into a stack placed it below the focused-inactive leaf');
+
+# repeat the test when the target leaf is in a branch
+cmd 'move up; move right';
+branchify($target_leaf, 'vertical');
+cmd 'move left';
+
+$branch = shift @{get_ws_content($ws)};
+$target_leaf_position = get_leaf_position($branch, $target_leaf);
+$secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con left into a stack from a branch placed it below the focused-inactive leaf');
+
+##############################################################################
+# When moving a con up into a stack, the moving con should be placed last in
+# the stack
+##############################################################################
+$ws = fresh_workspace;
+cmd 'layout splitv';
+
+# create the stacked branch container
+open_window;
+cmd 'splitv';
+open_stack;
+
+# create the target leaf
+cmd 'focus parent';
+open_window;
+$target_leaf = get_focused($ws);
+
+# move the target leaf into the stacked branch
+cmd 'move up';
+
+# the target leaf should be on the bottom of the stack
+$branch = shift @{get_ws_content($ws)};
+
+is($branch->{nodes}->[-1]->{id}, $target_leaf, 'moving con up into stack placed it on the bottom of the stack');
+
+# repeat the test when the target leaf is in a branch
+cmd 'move right; move down';
+branchify($target_leaf, 'horizontal');
+cmd 'move up';
+
+$branch = shift @{get_ws_content($ws)};
+
+is($branch->{nodes}->[-1]->{id}, $target_leaf, 'moving con up into stack from a branch placed it on the bottom of the stack');
+
+##############################################################################
+# When moving a con up into tabs, the moving con should be placed after the
+# focused-inactive tab
+##############################################################################
+$ws = fresh_workspace;
+cmd 'layout splitv';
+
+# create the tabbed branch container and find the focused leaf
+open_window;
+cmd 'splitv';
+open_tabs;
+$secondary_leaf = get_focused($ws);
+
+# create the target leaf below
+cmd 'focus parent';
+open_window;
+$target_leaf = get_focused($ws);
+
+# move the target leaf into the tabbed branch
+cmd 'move up';
+
+# the secondary focus tab should be to the right
+$branch = shift @{get_ws_content($ws)};
+$target_leaf_position = get_leaf_position($branch, $target_leaf);
+$secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con up into tabs placed it after the focused-inactive tab');
+
+# repeat the test when the target leaf is in a branch
+cmd 'move right; move down';
+branchify($target_leaf, 'horizontal');
+cmd 'move up';
+
+$branch = shift @{get_ws_content($ws)};
+$target_leaf_position = get_leaf_position($branch, $target_leaf);
+$secondary_leaf_position = get_leaf_position($branch, $secondary_leaf);
+
+is($target_leaf_position, $secondary_leaf_position + 1, 'moving con up into tabs from a branch placed it after the focused-inactive tab');
+
+done_testing;