=== modified file 'src/ui/tool/control-point-selection.cpp'
--- src/ui/tool/control-point-selection.cpp	2011-11-04 21:30:19 +0000
+++ src/ui/tool/control-point-selection.cpp	2012-01-22 11:59:48 +0000
@@ -290,6 +290,8 @@
 
 void ControlPointSelection::_pointDragged(Geom::Point &new_pos, GdkEventMotion *event)
 {
+    if (!_dragging) return;
+
     Geom::Point abs_delta = new_pos - _original_positions[_grabbed_point];
     double fdist = Geom::distance(_original_positions[_grabbed_point], _original_positions[_farthest_point]);
     if (held_only_alt(*event) && fdist > 0) {
@@ -351,6 +353,24 @@
     signal_update.emit();
 }
 
+void ControlPointSelection::_pointDragCancelled()
+{
+    if (!_dragging) return;
+
+    // Move the points back to original position
+    for (iterator i = _points.begin(); i != _points.end(); ++i) {
+        SelectableControlPoint *cur = (*i);
+        cur->move(_original_positions[cur]);
+    }
+    _original_positions.clear();
+    _last_trans.clear();
+    _dragging = false;
+    _grabbed_point = _farthest_point = NULL;
+    _updateBounds();
+    restoreTransformHandles();
+    signal_update.emit();
+}
+
 void ControlPointSelection::_pointUngrabbed()
 {
     _original_positions.clear();

=== modified file 'src/ui/tool/control-point-selection.h'
--- src/ui/tool/control-point-selection.h	2011-09-16 23:00:05 +0000
+++ src/ui/tool/control-point-selection.h	2012-01-22 05:16:21 +0000
@@ -121,6 +121,7 @@
     // creates problems when dragging a point that was not selected.
     void _pointGrabbed(SelectableControlPoint *);
     void _pointDragged(Geom::Point &, GdkEventMotion *);
+    void _pointDragCancelled();
     void _pointUngrabbed();
     bool _pointClicked(SelectableControlPoint *, GdkEventButton *);
     void _pointChanged(SelectableControlPoint *, bool);

=== modified file 'src/ui/tool/control-point.cpp'
--- src/ui/tool/control-point.cpp	2012-01-12 01:59:22 +0000
+++ src/ui/tool/control-point.cpp	2012-01-22 08:47:37 +0000
@@ -108,6 +108,7 @@
 
 bool ControlPoint::_drag_initiated = false;
 bool ControlPoint::_event_grab = false;
+bool ControlPoint::_drag_cancelled = false;
 
 /** A color set which you can use to create an invisible control that can still receive events.
  * @relates ControlPoint */
@@ -358,6 +359,7 @@
                     // this guarantees smooth redraws while dragging
                     _desktop->canvas->forceFullRedrawAfterInterruptions(5);
                     _drag_initiated = true;
+                    _drag_cancelled = false;
                 }
             }
             if (!transferred) {
@@ -437,10 +439,22 @@
         break;
 
     // update tips on modifier state change
-    // TODO add ESC keybinding as drag cancel
     case GDK_KEY_PRESS:
         switch (get_group0_keyval(&event->key))
         {
+        case GDK_Escape:
+            {// Cancel a drag if Esc is pressed
+            if (_drag_initiated) {
+                _drag_cancelled = true;
+                ungrabbed(NULL);
+                sp_canvas_item_ungrab(_canvas_item, event->button.time);
+                _event_grab = false;
+                //_drag_initiated = false;
+                _desktop->canvas->endForcedFullRedraws();
+                _drag_cancelled = false;
+            }
+            break;
+            }
         case GDK_Tab:
             {// Downcast from ControlPoint to TransformHandle, if possible
              // This is an ugly hack; we should have the transform handle intercept the keystrokes itself

=== modified file 'src/ui/tool/control-point.h'
--- src/ui/tool/control-point.h	2011-10-05 07:06:08 +0000
+++ src/ui/tool/control-point.h	2012-01-22 07:50:32 +0000
@@ -157,6 +157,7 @@
     SPCanvasItem * _canvas_item; ///< Visual representation of the control point.
     ColorSet *_cset; ///< Colors used to represent the point
     State _state;
+    static bool _drag_cancelled;
 
     static int const _grab_event_mask;
     static Geom::Point const &_last_click_event_point() { return _drag_event_origin; }

=== modified file 'src/ui/tool/node.cpp'
--- src/ui/tool/node.cpp	2012-01-14 13:35:29 +0000
+++ src/ui/tool/node.cpp	2012-01-22 08:44:37 +0000
@@ -350,6 +350,11 @@
 
 void Handle::ungrabbed(GdkEventButton *event)
 {
+    if (_drag_cancelled) {
+        move(_last_drag_origin());
+        _pm().update();
+    }
+
     // hide the handle if it's less than dragtolerance away from the node
     // TODO is this actually desired?
     Inkscape::Preferences *prefs = Inkscape::Preferences::get();

=== modified file 'src/ui/tool/selectable-control-point.cpp'
--- src/ui/tool/selectable-control-point.cpp	2010-11-17 02:12:56 +0000
+++ src/ui/tool/selectable-control-point.cpp	2012-01-22 07:30:19 +0000
@@ -70,7 +70,10 @@
 
 void SelectableControlPoint::ungrabbed(GdkEventButton *)
 {
-    _selection._pointUngrabbed();
+    if (_drag_cancelled)
+        _selection._pointDragCancelled();
+    else
+        _selection._pointUngrabbed();
 }
 
 bool SelectableControlPoint::clicked(GdkEventButton *event)