diff --git a/packages/@react-aria/dnd/src/useDroppableCollection.ts b/packages/@react-aria/dnd/src/useDroppableCollection.ts
index 555c75e9380..8d7c90b27ab 100644
--- a/packages/@react-aria/dnd/src/useDroppableCollection.ts
+++ b/packages/@react-aria/dnd/src/useDroppableCollection.ts
@@ -251,9 +251,9 @@ export function useDroppableCollection(props: DroppableCollectionOptions, state:
         state.selectionManager.isSelectionEqual(prevSelectedKeys)
       ) {
         let newKeys = new Set<Key>();
-        for (let key of state.collection.getKeys()) {
-          if (!prevCollection.getItem(key)) {
-            newKeys.add(key);
+        for (let item of state.collection) {
+          if (item.type === 'item' && !prevCollection.getItem(item.key)) {
+            newKeys.add(item.key);
           }
         }
 
diff --git a/packages/react-aria-components/test/Tree.test.tsx b/packages/react-aria-components/test/Tree.test.tsx
index 6346062331b..28381047f1f 100644
--- a/packages/react-aria-components/test/Tree.test.tsx
+++ b/packages/react-aria-components/test/Tree.test.tsx
@@ -24,7 +24,8 @@ import {useTreeData} from 'react-stately';
 
 let {
   EmptyTreeStaticStory: EmptyLoadingTree,
-  LoadingStoryDepOnTopStory: LoadingMoreTree
+  LoadingStoryDepOnTopStory: LoadingMoreTree,
+  TreeWithDragAndDrop
 } = composeStories(stories);
 
 let onSelectionChange = jest.fn();
@@ -1924,6 +1925,60 @@ describe('Tree', () => {
       expect(onRootDrop).toHaveBeenCalledTimes(1);
     });
 
+    it('should automatically focus the newly added dropped item', async () => {
+      const {getAllByRole} = render(<TreeWithDragAndDrop />);
+
+      const trees = getAllByRole('treegrid');
+      const firstTreeRows = within(trees[0]).getAllByRole('row');
+      const dataTransfer = new DataTransfer();
+
+      fireEvent(firstTreeRows[1], new DragEvent('dragstart', {dataTransfer, clientX: 5, clientY: 5}));
+      act(() => jest.runAllTimers());
+
+      fireEvent(trees[1], new DragEvent('dragenter', {dataTransfer, clientX: 50, clientY: 50}));
+      fireEvent(trees[1], new DragEvent('dragover', {dataTransfer, clientX: 50, clientY: 50}));
+      expect(trees[1]).toHaveAttribute('data-drop-target', 'true');
+
+      // ¯\_(ツ)_/¯
+      await act(async () => fireEvent(trees[1], new DragEvent('drop', {dataTransfer, clientX: 50, clientY: 50})));
+      act(() => jest.runAllTimers());
+
+      let secondTreeRows = within(trees[1]).getAllByRole('row');
+
+      expect(secondTreeRows).toHaveLength(1);
+      // The newly added row in the second tree should be the active element
+      expect(secondTreeRows[0]).toBe(document.activeElement);
+
+      await user.click(document.body);
+      act(() => jest.runAllTimers());
+
+      await user.tab();
+      await user.keyboard('{ArrowRight}'); // expand the projects item
+      await user.keyboard('{ArrowRight}');
+      await user.keyboard('{Enter}');
+      act(() => jest.runAllTimers());
+
+      await user.tab();
+      act(() => jest.runAllTimers());
+
+      secondTreeRows = within(trees[1]).getAllByRole('row');
+      expect(secondTreeRows).toHaveLength(4);
+      expect(within(secondTreeRows[3]).getAllByRole('button')[0]).toHaveAttribute('aria-label', 'Insert after Reports');
+      expect(document.activeElement).toBe(within(secondTreeRows[3]).getAllByRole('button')[0]);
+      expect(secondTreeRows[3]).toHaveAttribute('data-drop-target', 'true');
+
+      await user.keyboard('{ArrowUp}');
+      expect(within(secondTreeRows[2]).getAllByRole('button')[0]).toHaveAttribute('aria-label', 'Drop on Reports');
+      expect(document.activeElement).toBe(within(secondTreeRows[2]).getAllByRole('button')[0]);
+
+      await user.keyboard('{Enter}');
+      act(() => jest.runAllTimers());
+
+      secondTreeRows = within(trees[1]).getAllByRole('row');
+      expect(secondTreeRows).toHaveLength(1);
+      expect(secondTreeRows[0]).toBe(document.activeElement);
+    });
+
     it('should support disabled drag and drop', async () => {
       let {getByRole, queryAllByRole} = render(
         <DraggableTree isDisabled />