diff --git a/fabric-transfer-api-v1/src/main/java/net/fabricmc/fabric/mixin/transfer/DropperBlockMixin.java b/fabric-transfer-api-v1/src/main/java/net/fabricmc/fabric/mixin/transfer/DropperBlockMixin.java
index a5c94c200..cacd3d4c5 100644
--- a/fabric-transfer-api-v1/src/main/java/net/fabricmc/fabric/mixin/transfer/DropperBlockMixin.java
+++ b/fabric-transfer-api-v1/src/main/java/net/fabricmc/fabric/mixin/transfer/DropperBlockMixin.java
@@ -22,9 +22,9 @@ import org.spongepowered.asm.mixin.injection.Inject;
 import org.spongepowered.asm.mixin.injection.callback.CallbackInfo;
 import org.spongepowered.asm.mixin.injection.callback.LocalCapture;
 
+import net.minecraft.block.DispenserBlock;
 import net.minecraft.block.DropperBlock;
 import net.minecraft.block.entity.DispenserBlockEntity;
-import net.minecraft.item.ItemStack;
 import net.minecraft.server.world.ServerWorld;
 import net.minecraft.util.math.BlockPointerImpl;
 import net.minecraft.util.math.BlockPos;
@@ -38,20 +38,26 @@ import net.fabricmc.fabric.api.transfer.v1.storage.StorageUtil;
 
 /**
  * Allows droppers to insert into ItemVariant storages.
+ *
+ * <p>Maintainer note: it's important that we inject BEFORE the getStack() call,
+ * as the returned stack can be mutated by the StorageUtil.move() call in the injected callback.
  */
 @Mixin(DropperBlock.class)
 public class DropperBlockMixin {
 	@Inject(
 			at = @At(
 					value = "INVOKE",
-					target = "Lnet/minecraft/util/math/BlockPos;offset(Lnet/minecraft/util/math/Direction;)Lnet/minecraft/util/math/BlockPos;"
+					target = "Lnet/minecraft/block/entity/DispenserBlockEntity;getStack(I)Lnet/minecraft/item/ItemStack;"
 			),
 			method = "dispense",
 			locals = LocalCapture.CAPTURE_FAILHARD,
 			cancellable = true,
 			allow = 1
 	)
-	public void hookDispense(ServerWorld world, BlockPos pos, CallbackInfo ci, BlockPointerImpl blockPointerImpl, DispenserBlockEntity dispenser, int slot, ItemStack stack, Direction direction) {
+	public void hookDispense(ServerWorld world, BlockPos pos, CallbackInfo ci, BlockPointerImpl blockPointerImpl, DispenserBlockEntity dispenser, int slot) {
+		if (dispenser.getStack(slot).isEmpty()) return;
+
+		Direction direction = world.getBlockState(pos).get(DispenserBlock.FACING);
 		Storage<ItemVariant> target = ItemStorage.SIDED.find(world, pos.offset(direction), direction.getOpposite());
 
 		if (target != null) {
diff --git a/fabric-transfer-api-v1/src/testmod/java/net/fabricmc/fabric/test/transfer/fluid/FluidTransferTest.java b/fabric-transfer-api-v1/src/testmod/java/net/fabricmc/fabric/test/transfer/fluid/FluidTransferTest.java
index 8675d8cf8..d7c67def8 100644
--- a/fabric-transfer-api-v1/src/testmod/java/net/fabricmc/fabric/test/transfer/fluid/FluidTransferTest.java
+++ b/fabric-transfer-api-v1/src/testmod/java/net/fabricmc/fabric/test/transfer/fluid/FluidTransferTest.java
@@ -20,6 +20,7 @@ import static net.fabricmc.fabric.api.transfer.v1.fluid.FluidConstants.BUCKET;
 
 import net.minecraft.block.AbstractBlock;
 import net.minecraft.block.Block;
+import net.minecraft.block.Blocks;
 import net.minecraft.block.Material;
 import net.minecraft.block.entity.BlockEntityType;
 import net.minecraft.fluid.Fluids;
@@ -34,6 +35,7 @@ import net.fabricmc.api.ModInitializer;
 import net.fabricmc.fabric.api.object.builder.v1.block.entity.FabricBlockEntityTypeBuilder;
 import net.fabricmc.fabric.api.transfer.v1.fluid.FluidVariant;
 import net.fabricmc.fabric.api.transfer.v1.fluid.FluidStorage;
+import net.fabricmc.fabric.api.transfer.v1.item.ItemStorage;
 import net.fabricmc.fabric.api.transfer.v1.storage.base.SingleSlotStorage;
 import net.fabricmc.fabric.api.transfer.v1.storage.base.SingleVariantStorage;
 import net.fabricmc.fabric.api.transfer.v1.transaction.Transaction;
@@ -60,6 +62,9 @@ public class FluidTransferTest implements ModInitializer {
 		FluidStorage.SIDED.registerForBlocks((world, pos, state, be, direction) -> CreativeFluidStorage.WATER, INFINITE_WATER_SOURCE);
 		FluidStorage.SIDED.registerForBlocks((world, pos, state, be, direction) -> CreativeFluidStorage.LAVA, INFINITE_LAVA_SOURCE);
 
+		// Obsidian is now a trash can :-P
+		ItemStorage.SIDED.registerForBlocks((world, pos, state, be, direction) -> TrashingStorage.ITEM, Blocks.OBSIDIAN);
+
 		testFluidStorage();
 		testTransactionExceptions();
 		ItemTests.run();
diff --git a/fabric-transfer-api-v1/src/testmod/java/net/fabricmc/fabric/test/transfer/fluid/TrashingStorage.java b/fabric-transfer-api-v1/src/testmod/java/net/fabricmc/fabric/test/transfer/fluid/TrashingStorage.java
new file mode 100644
index 000000000..24387fa48
--- /dev/null
+++ b/fabric-transfer-api-v1/src/testmod/java/net/fabricmc/fabric/test/transfer/fluid/TrashingStorage.java
@@ -0,0 +1,44 @@
+/*
+ * Copyright (c) 2016, 2017, 2018, 2019 FabricMC
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package net.fabricmc.fabric.test.transfer.fluid;
+
+import java.util.Collections;
+import java.util.Iterator;
+
+import net.fabricmc.fabric.api.transfer.v1.item.ItemVariant;
+import net.fabricmc.fabric.api.transfer.v1.storage.StoragePreconditions;
+import net.fabricmc.fabric.api.transfer.v1.storage.StorageView;
+import net.fabricmc.fabric.api.transfer.v1.storage.TransferVariant;
+import net.fabricmc.fabric.api.transfer.v1.storage.base.InsertionOnlyStorage;
+import net.fabricmc.fabric.api.transfer.v1.transaction.TransactionContext;
+
+public class TrashingStorage<T extends TransferVariant<?>> implements InsertionOnlyStorage<T> {
+	public static final TrashingStorage<ItemVariant> ITEM = new TrashingStorage<>();
+
+	@Override
+	public long insert(T resource, long maxAmount, TransactionContext transaction) {
+		StoragePreconditions.notBlankNotNegative(resource, maxAmount);
+
+		// Insertion always succeeds.
+		return maxAmount;
+	}
+
+	@Override
+	public Iterator<StorageView<T>> iterator(TransactionContext transaction) {
+		return Collections.emptyIterator();
+	}
+}