diff --git a/demos/draggable/cancel.html b/demos/draggable/cancel.html
new file mode 100644
index 000000000..fc5a3c6d7
--- /dev/null
+++ b/demos/draggable/cancel.html
@@ -0,0 +1,40 @@
+<!doctype html>
+<html lang="en">
+<head>
+	<title>jQuery UI Draggable - Cancel Demo</title>
+	<link type="text/css" href="../../themes/base/ui.all.css" rel="stylesheet" />
+	<script type="text/javascript" src="../../jquery-1.3pre.js"></script>
+	<script type="text/javascript" src="../../ui/ui.core.js"></script>
+	<script type="text/javascript" src="../../ui/ui.draggable.js"></script>
+	<link type="text/css" href="../demos.css" rel="stylesheet" />
+	<style type="text/css">
+	#draggable { width: 150px; height: 150px; padding: 0.5em; cursor: move; }
+	#draggable p.ui-widget-header { cursor: default; }
+	</style>
+	<script type="text/javascript">
+	$(function() {
+		$("#draggable").draggable({ cancel: "p.ui-widget-header" });
+	});
+	</script>
+</head>
+<body>
+
+<div class="demo">
+
+<div id="draggable" class="ui-widget-content">
+	<p>You can drag me around&hellip;</p>
+	<p class="ui-widget-header">&hellip;but you can't drag me by this handle.</p>
+</div>
+
+</div><!-- End demo -->
+
+<div class="demo-description">
+
+<p>
+<!-- Add description here -->
+</p>
+
+</div><!-- End demo-description -->
+
+</body>
+</html>
diff --git a/demos/draggable/index.html b/demos/draggable/index.html
index 723995611..c7c5629af 100644
--- a/demos/draggable/index.html
+++ b/demos/draggable/index.html
@@ -11,6 +11,7 @@
 	<ul>
 		<li class="demo-config-on"><a href="default.html">Default Draggable</a></li>
 		<li><a href="axis.html">Axis</a></li>
+		<li><a href="cancel.html">Cancel</a></li>
 		<li><a href="containment.html">Containment</a></li>
 		<li><a href="cursorat.html">Cursor at</a></li>
 		<li><a href="delaydistance.html">Delay / Distance</a></li>
