diff --git a/packages/core/src/composables/useHandle.ts b/packages/core/src/composables/useHandle.ts
index 4a1c61a7..ce1eb36a 100644
--- a/packages/core/src/composables/useHandle.ts
+++ b/packages/core/src/composables/useHandle.ts
@@ -65,7 +65,7 @@ export default function useHandle({
         isValidConnectionHandler = (!isTarget ? node.isValidTargetPos : node.isValidSourcePos) || alwaysValid
       }
 
-      let prevClosestHandle: ConnectionHandle | null
+      let closestHandle: ConnectionHandle | null
 
       let autoPanId = 0
 
@@ -119,7 +119,7 @@ export default function useHandle({
       function onPointerMove(event: MouseTouchEvent) {
         connectionPosition = getEventPosition(event, containerBounds)
 
-        prevClosestHandle = getClosestHandle(
+        closestHandle = getClosestHandle(
           pointToRendererPoint(connectionPosition, viewport.value, false, [1, 1]),
           connectionRadius.value,
           handleLookup,
@@ -132,7 +132,7 @@ export default function useHandle({
 
         const result = isValidHandle(
           event,
-          prevClosestHandle,
+          closestHandle,
           connectionMode.value,
           resolveUnref(nodeId),
           resolveUnref(handleId),
@@ -148,20 +148,20 @@ export default function useHandle({
         handleDomNode = result.handleDomNode
 
         updateConnection(
-          prevClosestHandle && isValid
+          closestHandle && isValid
             ? rendererPointToPoint(
                 {
-                  x: prevClosestHandle.x,
-                  y: prevClosestHandle.y,
+                  x: closestHandle.x,
+                  y: closestHandle.y,
                 },
                 viewport.value,
               )
             : connectionPosition,
           result.endHandle,
-          getConnectionStatus(!!prevClosestHandle, isValid),
+          getConnectionStatus(!!closestHandle, isValid),
         )
 
-        if (!prevClosestHandle && !isValid && !handleDomNode) {
+        if (!closestHandle && !isValid && !handleDomNode) {
           return resetRecentHandle(prevActiveHandle)
         }
 
@@ -179,7 +179,7 @@ export default function useHandle({
       }
 
       function onPointerUp(event: MouseTouchEvent) {
-        if ((prevClosestHandle || handleDomNode) && connection && isValid) {
+        if ((closestHandle || handleDomNode) && connection && isValid) {
           if (!onEdgeUpdate) {
             emits.connect(connection)
           } else {
diff --git a/packages/core/src/utils/handle.ts b/packages/core/src/utils/handle.ts
index 85d890c6..53e7a0d4 100644
--- a/packages/core/src/utils/handle.ts
+++ b/packages/core/src/utils/handle.ts
@@ -57,18 +57,31 @@ export function getClosestHandle(
   connectionRadius: number,
   handles: ConnectionHandle[],
 ): ConnectionHandle | null {
-  let closestHandle: ConnectionHandle | null = null
+  let closestHandles: ConnectionHandle[] = []
   let minDistance = Infinity
 
   handles.forEach((handle) => {
     const distance = Math.sqrt((handle.x - pos.x) ** 2 + (handle.y - pos.y) ** 2)
-    if (distance <= connectionRadius && distance < minDistance) {
+    if (distance <= connectionRadius) {
+      if (distance < minDistance) {
+        closestHandles = [handle]
+      } else if (distance === minDistance) {
+        // when multiple handles are on the same distance we collect all of them
+        closestHandles.push(handle)
+      }
+
       minDistance = distance
-      closestHandle = handle
     }
   })
 
-  return closestHandle
+  if (!closestHandles.length) {
+    return null
+  }
+
+  return closestHandles.length === 1
+    ? closestHandles[0]
+    : // if multiple handles are layout on top of each other we take the one with type = target because it's more likely that the user wants to connect to this one
+      closestHandles.find((handle) => handle.type === 'target') || closestHandles[0]
 }
 
 // checks if  and returns connection in fom of an object { source: 123, target: 312 }
@@ -89,6 +102,9 @@ export function isValidHandle(
   const handleDomNode = doc.querySelector(`.vue-flow__handle[data-id="${handle?.nodeId}-${handle?.id}-${handle?.type}"]`)
   const { x, y } = getEventPosition(event)
   const handleBelow = doc.elementFromPoint(x, y)
+
+  // we always want to prioritize the handle below the mouse cursor over the closest distance handle,
+  // because it could be that the center of another handle is closer to the mouse pointer than the handle below the cursor
   const handleToCheck = handleBelow?.classList.contains('vue-flow__handle') ? handleBelow : handleDomNode
 
   const result: ValidHandleResult = {