diff --git a/crates/terminal_view/src/terminal_panel.rs b/crates/terminal_view/src/terminal_panel.rs
index 725a330235a1d..b51ed331e63e5 100644
--- a/crates/terminal_view/src/terminal_panel.rs
+++ b/crates/terminal_view/src/terminal_panel.rs
@@ -964,19 +964,23 @@ pub fn new_terminal_pane(
         pane.set_should_display_tab_bar(|_| true);
         pane.set_zoom_out_on_close(false);
 
-        let terminal_panel_for_split_check = terminal_panel.clone();
+        let split_closure_terminal_panel = terminal_panel.downgrade();
         pane.set_can_split(Some(Arc::new(move |pane, dragged_item, cx| {
             if let Some(tab) = dragged_item.downcast_ref::<DraggedTab>() {
-                let current_pane = cx.view().clone();
-                let can_drag_away =
-                    terminal_panel_for_split_check.update(cx, |terminal_panel, _| {
+                let is_current_pane = &tab.pane == cx.view();
+                let Some(can_drag_away) = split_closure_terminal_panel
+                    .update(cx, |terminal_panel, _| {
                         let current_panes = terminal_panel.center.panes();
                         !current_panes.contains(&&tab.pane)
                             || current_panes.len() > 1
-                            || (tab.pane != current_pane || pane.items_len() > 1)
-                    });
+                            || (!is_current_pane || pane.items_len() > 1)
+                    })
+                    .ok()
+                else {
+                    return false;
+                };
                 if can_drag_away {
-                    let item = if tab.pane == current_pane {
+                    let item = if is_current_pane {
                         pane.item_for_index(tab.ix)
                     } else {
                         tab.pane.read(cx).item_for_index(tab.ix)
@@ -996,7 +1000,12 @@ pub fn new_terminal_pane(
             toolbar.add_item(breadcrumbs, cx);
         });
 
+        let drop_closure_project = project.downgrade();
+        let drop_closure_terminal_panel = terminal_panel.downgrade();
         pane.set_custom_drop_handle(cx, move |pane, dropped_item, cx| {
+            let Some(project) = drop_closure_project.upgrade() else {
+                return ControlFlow::Break(());
+            };
             if let Some(tab) = dropped_item.downcast_ref::<DraggedTab>() {
                 let this_pane = cx.view().clone();
                 let item = if tab.pane == this_pane {
@@ -1009,10 +1018,10 @@ pub fn new_terminal_pane(
                         let source = tab.pane.clone();
                         let item_id_to_move = item.item_id();
 
-                        let new_split_pane = pane
+                        let Ok(new_split_pane) = pane
                             .drag_split_direction()
                             .map(|split_direction| {
-                                terminal_panel.update(cx, |terminal_panel, cx| {
+                                drop_closure_terminal_panel.update(cx, |terminal_panel, cx| {
                                     let is_zoomed = if terminal_panel.active_pane == this_pane {
                                         pane.is_zoomed()
                                     } else {
@@ -1033,9 +1042,12 @@ pub fn new_terminal_pane(
                                     anyhow::Ok(new_pane)
                                 })
                             })
-                            .transpose();
+                            .transpose()
+                        else {
+                            return ControlFlow::Break(());
+                        };
 
-                        match new_split_pane {
+                        match new_split_pane.transpose() {
                             // Source pane may be the one currently updated, so defer the move.
                             Ok(Some(new_pane)) => cx
                                 .spawn(|_, mut cx| async move {