diff --git a/src/move.c b/src/move.c
index 32178e6b..58ce488d 100644
--- a/src/move.c
+++ b/src/move.c
@@ -179,18 +179,16 @@ void insert_con_into(Con *con, Con *target, position_t position) {
 static void attach_to_workspace(Con *con, Con *ws, direction_t direction) {
     con_detach(con);
     con_fix_percent(con->parent);
-
     CALL(con->parent, on_remove_child);
 
     con->parent = ws;
 
     if (direction == D_RIGHT || direction == D_DOWN) {
         TAILQ_INSERT_HEAD(&(ws->nodes_head), con, nodes);
-        TAILQ_INSERT_HEAD(&(ws->focus_head), con, focused);
     } else {
         TAILQ_INSERT_TAIL(&(ws->nodes_head), con, nodes);
-        TAILQ_INSERT_TAIL(&(ws->focus_head), con, focused);
     }
+    TAILQ_INSERT_TAIL(&(ws->focus_head), con, focused);
 
     /* Pretend the con was just opened with regards to size percent values.
      * Since the con is moved to a completely different con, the old value
@@ -205,7 +203,6 @@ static void attach_to_workspace(Con *con, Con *ws, direction_t direction) {
  *
  */
 static void move_to_output_directed(Con *con, direction_t direction) {
-    Con *old_ws = con_get_workspace(con);
     Output *current_output = get_output_for_con(con);
     Output *output = get_output_next(direction, current_output, CLOSEST_OUTPUT);
 
@@ -222,17 +219,26 @@ static void move_to_output_directed(Con *con, direction_t direction) {
         return;
     }
 
+    Con *old_ws = con_get_workspace(con);
+    const bool moves_focus = (focused == con);
     attach_to_workspace(con, ws, direction);
-
-    /* fix the focus stack */
-    con_activate(con);
+    if (moves_focus) {
+        /* workspace_show will not correctly update the active workspace because
+         * the focused container, con, is now a child of ws. To work around this
+         * and still produce the correct workspace focus events (see
+         * 517-regress-move-direction-ipc.t) we need to temporarily set focused
+         * to the old workspace. */
+        focused = old_ws;
+        workspace_show(ws);
+        con_focus(con);
+    }
 
     /* force re-painting the indicators */
     FREE(con->deco_render_params);
 
     tree_flatten(croot);
-
-    ipc_send_workspace_event("focus", ws, old_ws);
+    ipc_send_window_event("move", con);
+    ewmh_update_wm_desktop();
 }
 
 /*
@@ -321,11 +327,9 @@ void tree_move(Con *con, int direction) {
             }
 
             if (con->parent == con_get_workspace(con)) {
-                /*  If we couldn't find a place to move it on this workspace,
-                 *  try to move it to a workspace on a different output */
+                /* If we couldn't find a place to move it on this workspace, try
+                 * to move it to a workspace on a different output */
                 move_to_output_directed(con, direction);
-                ipc_send_window_event("move", con);
-                ewmh_update_wm_desktop();
                 return;
             }
 
@@ -370,6 +374,7 @@ void tree_move(Con *con, int direction) {
          * and move it to the next output. */
         DLOG("Grandparent is workspace\n");
         move_to_output_directed(con, direction);
+        return;
     } else {
         DLOG("Moving into container above\n");
         position = (direction == D_UP || direction == D_LEFT ? BEFORE : AFTER);
diff --git a/testcases/t/276-ipc-window-move.t b/testcases/t/276-ipc-window-move.t
index f3606b4e..708963df 100644
--- a/testcases/t/276-ipc-window-move.t
+++ b/testcases/t/276-ipc-window-move.t
@@ -34,7 +34,7 @@ sub move_subtest {
     is($move[0]->{container}->{window}, $window->{id}, 'window id matches');
 }
 
-subtest 'move right', \&move_subtest, 'move right';
+subtest 'move left', \&move_subtest, 'move left';
 subtest 'move to workspace', \&move_subtest, 'move to workspace ws_new';
 
 done_testing;
diff --git a/testcases/t/294-focus-order.t b/testcases/t/294-focus-order.t
index c818f1d4..b5d3514a 100644
--- a/testcases/t/294-focus-order.t
+++ b/testcases/t/294-focus-order.t
@@ -16,7 +16,11 @@
 #
 # Verify that the corrent focus stack order is preserved after various
 # operations.
-use i3test;
+use i3test i3_config => <<EOT;
+# i3 config file (v4)
+font -misc-fixed-medium-r-normal--13-120-75-75-C-70-iso10646-1
+fake-outputs 1024x768+0+0,1024x768+1024+0
+EOT
 
 sub kill_and_confirm_focus {
     my $focus = shift;
@@ -68,7 +72,6 @@ confirm_focus('tabbed');
 #####################################################################
 
 fresh_workspace;
-
 $windows[3] = open_window;
 $windows[1] = open_window;
 $windows[0] = open_window;
@@ -107,6 +110,21 @@ $windows[0] = open_window;
 cmd 'move left';
 confirm_focus('split-v + move');
 
+#####################################################################
+# Test that moving an unfocused container from another output
+# maintains the correct focus order.
+#####################################################################
+
+fresh_workspace(output => 0);
+$windows[3] = open_window;
+fresh_workspace(output => 1);
+$windows[2] = open_window;
+$windows[1] = open_window;
+$windows[0] = open_window;
+
+cmd '[id=' . $windows[3]->id . '] move right';
+confirm_focus('unfocused move from other output');
+
 ######################################################################
 # Test that moving an unfocused container maintains the correct focus
 # order.