diff --git a/packages/element/src/binding.ts b/packages/element/src/binding.ts
index c94d5e7e3f..b0fa7762c3 100644
--- a/packages/element/src/binding.ts
+++ b/packages/element/src/binding.ts
@@ -35,7 +35,6 @@ import {
 import {
   getAllHoveredElementAtPoint,
   getHoveredElementForBinding,
-  hitElementItself,
   intersectElementWithLineSegment,
   isPointInElement,
 } from "./collision";
@@ -644,68 +643,6 @@ export const bindOrUnbindBindingElements = (
   });
 };
 
-export const maybeSuggestBindingsForBindingElementAtCoords = (
-  linearElement: NonDeleted<ExcalidrawArrowElement>,
-  startOrEndOrBoth: "start" | "end" | "both",
-  scene: Scene,
-  pointerCoords: GlobalPoint,
-): AppState["suggestedBinding"] => {
-  const startCoords =
-    startOrEndOrBoth === "start"
-      ? pointerCoords
-      : LinearElementEditor.getPointAtIndexGlobalCoordinates(
-          linearElement,
-          0,
-          scene.getNonDeletedElementsMap(),
-        );
-  const endCoords =
-    startOrEndOrBoth === "end"
-      ? pointerCoords
-      : LinearElementEditor.getPointAtIndexGlobalCoordinates(
-          linearElement,
-          -1,
-          scene.getNonDeletedElementsMap(),
-        );
-  const startHovered = getHoveredElementForBinding(
-    startCoords,
-    scene.getNonDeletedElements(),
-    scene.getNonDeletedElementsMap(),
-  );
-  const endHovered = getHoveredElementForBinding(
-    endCoords,
-    scene.getNonDeletedElements(),
-    scene.getNonDeletedElementsMap(),
-  );
-
-  let suggestedBinding: AppState["suggestedBinding"] = null;
-
-  if (startHovered != null && startHovered.id === endHovered?.id) {
-    const hitStart = hitElementItself({
-      element: startHovered,
-      elementsMap: scene.getNonDeletedElementsMap(),
-      point: pointFrom<GlobalPoint>(startCoords[0], startCoords[1]),
-      threshold: 0,
-      overrideShouldTestInside: true,
-    });
-    const hitEnd = hitElementItself({
-      element: endHovered,
-      elementsMap: scene.getNonDeletedElementsMap(),
-      point: pointFrom<GlobalPoint>(endCoords[0], endCoords[1]),
-      threshold: 0,
-      overrideShouldTestInside: true,
-    });
-    if (hitStart && hitEnd) {
-      suggestedBinding = startHovered;
-    }
-  } else if (startOrEndOrBoth === "start" && startHovered != null) {
-    suggestedBinding = startHovered;
-  } else if (startOrEndOrBoth === "end" && endHovered != null) {
-    suggestedBinding = endHovered;
-  }
-
-  return suggestedBinding;
-};
-
 export const bindBindingElement = (
   arrow: NonDeleted<ExcalidrawArrowElement>,
   hoveredElement: ExcalidrawBindableElement,
diff --git a/packages/element/src/linearElementEditor.ts b/packages/element/src/linearElementEditor.ts
index 913d66e5eb..0b51a9af0c 100644
--- a/packages/element/src/linearElementEditor.ts
+++ b/packages/element/src/linearElementEditor.ts
@@ -45,7 +45,6 @@ import {
   calculateFixedPointForNonElbowArrowBinding,
   getBindingStrategyForDraggingBindingElementEndpoints,
   isBindingEnabled,
-  maybeSuggestBindingsForBindingElementAtCoords,
   updateBoundPoint,
 } from "./binding";
 import {
@@ -335,6 +334,7 @@ export class LinearElementEditor {
     }
 
     // Apply the point movement if needed
+    let suggestedBinding: AppState["suggestedBinding"] = null;
     if (deltaX || deltaY) {
       const { positions, updates } = pointDraggingUpdates(
         [idx],
@@ -347,6 +347,12 @@ export class LinearElementEditor {
       );
 
       LinearElementEditor.movePoints(element, app.scene, positions, updates);
+      // Set the suggested binding from the updates if available
+      if (isBindingElement(element, false)) {
+        if (isBindingEnabled(app.state)) {
+          suggestedBinding = updates?.suggestedBinding ?? null;
+        }
+      }
 
       // Move the arrow over the bindable object in terms of z-index
       if (isBindingElement(element)) {
@@ -364,17 +370,6 @@ export class LinearElementEditor {
       }
     }
 
-    // Suggest bindings for first and last point if selected
-    let suggestedBinding: AppState["suggestedBinding"] = null;
-    if (isBindingElement(element, false)) {
-      suggestedBinding = maybeSuggestBindingsForBindingElementAtCoords(
-        element,
-        "end",
-        app.scene,
-        pointFrom<GlobalPoint>(scenePointerX, scenePointerY),
-      );
-    }
-
     // PERF: Avoid state updates if not absolutely necessary
     if (
       app.state.selectedLinearElement?.customLineAngle === customLineAngle &&
@@ -530,22 +525,6 @@ export class LinearElementEditor {
       handleBindTextResize(element, app.scene, false);
     }
 
-    // Suggest bindings for first and last point if selected
-    if (isBindingElement(element, false)) {
-      if (isBindingEnabled(app.state) && (startIsSelected || endIsSelected)) {
-        suggestedBinding = maybeSuggestBindingsForBindingElementAtCoords(
-          element,
-          startIsSelected && endIsSelected
-            ? "both"
-            : startIsSelected
-            ? "start"
-            : "end",
-          app.scene,
-          pointFrom<GlobalPoint>(scenePointerX, scenePointerY),
-        );
-      }
-    }
-
     // Update selected points for elbow arrows because elbow arrows add and
     // remove points as they route
     const newSelectedPointsIndices = elbowed
@@ -2115,7 +2094,10 @@ const pointDraggingUpdates = (
     if (startIsDragged) {
       updates.suggestedBinding = start.element;
     }
+  } else if (startIsDragged) {
+    updates.suggestedBinding = app.state.suggestedBinding;
   }
+
   if (end.mode === null) {
     updates.endBinding = null;
   } else if (end.mode) {
@@ -2134,6 +2116,8 @@ const pointDraggingUpdates = (
     if (endIsDragged) {
       updates.suggestedBinding = end.element;
     }
+  } else if (endIsDragged) {
+    updates.suggestedBinding = app.state.suggestedBinding;
   }
 
   // Simulate the updated arrow for the bind point calculation
@@ -2258,11 +2242,13 @@ const pointDraggingUpdates = (
   const indices = Array.from(indicesSet);
 
   return {
-    updates: updates.startBinding
-      ? {
-          startBinding: updates.startBinding,
-        }
-      : undefined,
+    updates:
+      updates.startBinding || updates.suggestedBinding
+        ? {
+            startBinding: updates.startBinding,
+            suggestedBinding: updates.suggestedBinding,
+          }
+        : undefined,
     positions: new Map(
       indices.map((idx) => {
         return [
diff --git a/packages/excalidraw/components/App.tsx b/packages/excalidraw/components/App.tsx
index c4b68a0411..232bc570f0 100644
--- a/packages/excalidraw/components/App.tsx
+++ b/packages/excalidraw/components/App.tsx
@@ -110,7 +110,6 @@ import {
 import {
   getObservedAppState,
   getCommonBounds,
-  maybeSuggestBindingsForBindingElementAtCoords,
   getElementAbsoluteCoords,
   bindOrUnbindBindingElements,
   fixBindingsAfterDeletion,
@@ -6246,15 +6245,17 @@ class App extends React.Component<AppProps, AppState> {
       // Hovering with a selected tool or creating new linear element via click
       // and point
       const { newElement } = this.state;
-      if (isBindingElement(newElement, false) && isBindingEnabled(this.state)) {
-        this.setState({
-          suggestedBinding: maybeSuggestBindingsForBindingElementAtCoords(
-            newElement,
-            "end",
-            this.scene,
-            pointFrom<GlobalPoint>(scenePointerX, scenePointerY),
-          ),
-        });
+      if (!newElement && isBindingEnabled(this.state)) {
+        const hoveredElement = getHoveredElementForBinding(
+          pointFrom<GlobalPoint>(scenePointerX, scenePointerY),
+          this.scene.getNonDeletedElements(),
+          this.scene.getNonDeletedElementsMap(),
+        );
+        if (hoveredElement) {
+          this.setState({
+            suggestedBinding: hoveredElement,
+          });
+        }
       }
     }