diff --git a/.changeset/giant-pets-draw.md b/.changeset/giant-pets-draw.md
new file mode 100644
index 00000000..df1e03a2
--- /dev/null
+++ b/.changeset/giant-pets-draw.md
@@ -0,0 +1,6 @@
+---
+'@xyflow/react': patch
+'@xyflow/system': patch
+---
+
+Optimize performance of nodesInitialized
diff --git a/packages/react/src/hooks/useNodesInitialized.ts b/packages/react/src/hooks/useNodesInitialized.ts
index a44ab658..6fd042a5 100644
--- a/packages/react/src/hooks/useNodesInitialized.ts
+++ b/packages/react/src/hooks/useNodesInitialized.ts
@@ -9,15 +9,17 @@ export type UseNodesInitializedOptions = {
 };
 
 const selector = (options: UseNodesInitializedOptions) => (s: ReactFlowState) => {
+  if (!options.includeHiddenNodes) {
+    return s.nodesInitialized;
+  }
+
   if (s.nodeLookup.size === 0) {
     return false;
   }
 
-  for (const [, { hidden, internals }] of s.nodeLookup) {
-    if (options.includeHiddenNodes || !hidden) {
-      if (internals.handleBounds === undefined || !nodeHasDimensions(internals.userNode)) {
-        return false;
-      }
+  for (const [, { internals }] of s.nodeLookup) {
+    if (internals.handleBounds === undefined || !nodeHasDimensions(internals.userNode)) {
+      return false;
     }
   }
 
diff --git a/packages/react/src/store/index.ts b/packages/react/src/store/index.ts
index 924e83cf..7682dc90 100644
--- a/packages/react/src/store/index.ts
+++ b/packages/react/src/store/index.ts
@@ -91,9 +91,9 @@ const createStore = ({
 
         if (fitViewQueued && nodesInitialized) {
           resolveFitView();
-          set({ nodes, fitViewQueued: false, fitViewOptions: undefined });
+          set({ nodes, nodesInitialized, fitViewQueued: false, fitViewOptions: undefined });
         } else {
-          set({ nodes });
+          set({ nodes, nodesInitialized });
         }
       },
       setEdges: (edges: Edge[]) => {
diff --git a/packages/react/src/store/initialState.ts b/packages/react/src/store/initialState.ts
index 8be408b8..996cc148 100644
--- a/packages/react/src/store/initialState.ts
+++ b/packages/react/src/store/initialState.ts
@@ -46,7 +46,7 @@ const getInitialState = ({
   const storeNodeExtent = nodeExtent ?? infiniteExtent;
 
   updateConnectionLookup(connectionLookup, edgeLookup, storeEdges);
-  adoptUserNodes(storeNodes, nodeLookup, parentLookup, {
+  const nodesInitialized = adoptUserNodes(storeNodes, nodeLookup, parentLookup, {
     nodeOrigin: storeNodeOrigin,
     nodeExtent: storeNodeExtent,
     elevateNodesOnSelect: false,
@@ -69,6 +69,7 @@ const getInitialState = ({
     height: 0,
     transform,
     nodes: storeNodes,
+    nodesInitialized,
     nodeLookup,
     parentLookup,
     edges: storeEdges,
diff --git a/packages/react/src/types/store.ts b/packages/react/src/types/store.ts
index aef78aaa..1e10fe06 100644
--- a/packages/react/src/types/store.ts
+++ b/packages/react/src/types/store.ts
@@ -54,6 +54,7 @@ export type ReactFlowStore<NodeType extends Node = Node, EdgeType extends Edge =
   height: number;
   transform: Transform;
   nodes: NodeType[];
+  nodesInitialized: boolean;
   nodeLookup: NodeLookup<InternalNode<NodeType>>;
   parentLookup: ParentLookup<InternalNode<NodeType>>;
   edges: EdgeType[];
diff --git a/packages/system/src/utils/store.ts b/packages/system/src/utils/store.ts
index 14fc710a..1546a8ff 100644
--- a/packages/system/src/utils/store.ts
+++ b/packages/system/src/utils/store.ts
@@ -88,7 +88,7 @@ export function adoptUserNodes<NodeType extends NodeBase>(
 ): boolean {
   const _options = mergeObjects(adoptUserNodesDefaultOptions, options);
 
-  let nodesInitialized = true;
+  let nodesInitialized = nodes.length > 0;
   const tmpLookup = new Map(nodeLookup);
   const selectedNodeZ: number = _options?.elevateNodesOnSelect ? 1000 : 0;