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Large website design with many, many layers. Need a way to move one element to the new designated group without dragging forever in the layers palette.

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To make any process easier close groups when you are not actively working with them. Then click and drag a layer while positioning your cursor towards the bottom of the layers panel (to get an automatic scroll).

I'm interested in reading other suggestions since this behaviour can be quite annoying.

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you could cheat by dragging the layer to a new document, scrolling up in the Layers palette, and then dragging it back into the original document.

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You can also hit Ctrl + Shift + ] to move the layer to the top of the layer order. – ckpepper02 Dec 20 '13 at 17:33
@ckpepper02 Or Apple-Shift-] on Mac. Man, I love learning new shortcuts. :D – Lauren Ipsum Dec 20 '13 at 18:45

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