diff --git a/examples/react/src/examples/Figma/index.tsx b/examples/react/src/examples/Figma/index.tsx
index 6780b6cb..f51219df 100644
--- a/examples/react/src/examples/Figma/index.tsx
+++ b/examples/react/src/examples/Figma/index.tsx
@@ -3,7 +3,19 @@ import { ReactFlow, Background, BackgroundVariant, Node, Edge, SelectionMode, Co
 const MULTI_SELECT_KEY = ['Meta', 'Shift'];
 
 const initialNodes: Node[] = [
-  { id: '1', type: 'input', data: { label: 'Node 1' }, position: { x: 250, y: 5 }, className: 'light' },
+  {
+    id: '1',
+    type: 'input',
+    data: {
+      label: (
+        <>
+          <input defaultValue="hallo"></input>
+        </>
+      ),
+    },
+    position: { x: 250, y: 5 },
+    className: 'light',
+  },
   { id: '2', data: { label: 'Node 2' }, position: { x: 100, y: 100 }, className: 'light' },
   { id: '3', data: { label: 'Node 3' }, position: { x: 400, y: 100 }, className: 'light' },
   { id: '4', data: { label: 'Node 4' }, position: { x: 400, y: 200 }, className: 'light' },
diff --git a/examples/react/src/examples/FloatingEdges/FloatingConnectionLine.tsx b/examples/react/src/examples/FloatingEdges/FloatingConnectionLine.tsx
index 3bac9d41..a3039123 100644
--- a/examples/react/src/examples/FloatingEdges/FloatingConnectionLine.tsx
+++ b/examples/react/src/examples/FloatingEdges/FloatingConnectionLine.tsx
@@ -1,5 +1,5 @@
 import { FC } from 'react';
-import { getBezierPath, ConnectionLineComponentProps, Node } from '@xyflow/react';
+import { getBezierPath, ConnectionLineComponentProps, Node, InternalNode } from '@xyflow/react';
 
 import { getEdgeParams } from './utils';
 
@@ -13,7 +13,7 @@ const FloatingConnectionLine: FC<ConnectionLineComponentProps> = ({ toX, toY, fr
     width: 1,
     height: 1,
     position: { x: toX, y: toY },
-  } as Node;
+  } as InternalNode;
 
   const { sx, sy } = getEdgeParams(fromNode, targetNode);
 
diff --git a/examples/react/src/examples/FloatingEdges/utils.ts b/examples/react/src/examples/FloatingEdges/utils.ts
index 08593c5c..39f0fad0 100644
--- a/examples/react/src/examples/FloatingEdges/utils.ts
+++ b/examples/react/src/examples/FloatingEdges/utils.ts
@@ -2,21 +2,19 @@ import { Position, XYPosition, Node, Edge, InternalNode } from '@xyflow/react';
 
 // this helper function returns the intersection point
 // of the line between the center of the intersectionNode and the target node
-function getNodeIntersection(intersectionNode: Node, targetNode: Node): XYPosition {
-  // https://math.stackexchange.com/questions/1724792/an-algorithm-for-finding-the-intersection-point-between-a-center-of-vision-and-a
-
-  const { position: intersectionNodePosition } = intersectionNode;
+function getNodeIntersection(intersectionNode: InternalNode, targetNode: InternalNode): XYPosition {
+  const { internals: intersectionInternals } = intersectionNode;
   const { width: intersectionNodeWidth, height: intersectionNodeHeight } = intersectionNode.measured ?? {
     width: 0,
     height: 0,
   };
-  const targetPosition = targetNode.position;
+  const targetPosition = targetNode.internals.positionAbsolute;
 
   const w = (intersectionNodeWidth ?? 0) / 2;
   const h = (intersectionNodeHeight ?? 0) / 2;
 
-  const x2 = intersectionNodePosition.x + w;
-  const y2 = intersectionNodePosition.y + h;
+  const x2 = intersectionInternals.positionAbsolute.x + w;
+  const y2 = intersectionInternals.positionAbsolute.y + h;
   const x1 = targetPosition.x + w;
   const y1 = targetPosition.y + h;
 
@@ -92,7 +90,13 @@ export function createElements(): NodesAndEdges {
     const x = 250 * Math.cos(radians) + center.x;
     const y = 250 * Math.sin(radians) + center.y;
 
-    nodes.push({ id: `${i}`, data: { label: 'Source' }, position: { x, y } });
+    const isChild = i === 1;
+    nodes.push({
+      id: `${i}`,
+      data: { label: 'Source' },
+      position: isChild ? { x: 0, y: 0 } : { x, y },
+      parentId: isChild ? '0' : undefined,
+    });
 
     edges.push({
       id: `edge-${i}`,
diff --git a/examples/react/src/examples/UseConnection/index.tsx b/examples/react/src/examples/UseConnection/index.tsx
index cc90f11f..38109b45 100644
--- a/examples/react/src/examples/UseConnection/index.tsx
+++ b/examples/react/src/examples/UseConnection/index.tsx
@@ -40,7 +40,7 @@ const initialEdges: Edge[] = [
   { id: 'e1-3', source: '1', target: '3' },
 ];
 
-const UseZoomPanHelperFlow = () => {
+const UseConnectionFlow = () => {
   const [nodes, setNodes, onNodesChange] = useNodesState(initialNodes);
   const [edges, setEdges, onEdgesChange] = useEdgesState(initialEdges);
 
@@ -68,7 +68,7 @@ const UseZoomPanHelperFlow = () => {
 
 const WrappedFlow = () => (
   <ReactFlowProvider>
-    <UseZoomPanHelperFlow />
+    <UseConnectionFlow />
   </ReactFlowProvider>
 );
 
diff --git a/packages/react/src/hooks/useConnection.ts b/packages/react/src/hooks/useConnection.ts
index 8a4b377b..46784c4f 100644
--- a/packages/react/src/hooks/useConnection.ts
+++ b/packages/react/src/hooks/useConnection.ts
@@ -1,10 +1,10 @@
 import { shallow } from 'zustand/shallow';
-
-import { useStore } from './useStore';
-import type { ReactFlowStore } from '../types/store';
 import { ConnectionState, pointToRendererPoint } from '@xyflow/system';
 
-const selector = (s: ReactFlowStore): ConnectionState => {
+import { useStore } from './useStore';
+import type { InternalNode, Node, ReactFlowStore } from '../types';
+
+const selector = (s: ReactFlowStore) => {
   return s.connection.inProgress
     ? { ...s.connection, to: pointToRendererPoint(s.connection.to, s.transform) }
     : { ...s.connection };
@@ -15,6 +15,6 @@ const selector = (s: ReactFlowStore): ConnectionState => {
  * @public
  * @returns ConnectionState
  */
-export function useConnection(): ConnectionState {
-  return useStore(selector, shallow);
+export function useConnection<NodeType extends Node = Node>(): ConnectionState<InternalNode<NodeType>> {
+  return useStore(selector, shallow) as ConnectionState<InternalNode<NodeType>>;
 }
diff --git a/packages/react/src/types/edges.ts b/packages/react/src/types/edges.ts
index 640366d7..e765b389 100644
--- a/packages/react/src/types/edges.ts
+++ b/packages/react/src/types/edges.ts
@@ -16,7 +16,7 @@ import type {
   OnError,
 } from '@xyflow/system';
 
-import { EdgeTypes, Node } from '.';
+import { EdgeTypes, InternalNode, Node } from '.';
 
 export type EdgeLabelOptions = {
   label?: string | ReactNode;
@@ -190,10 +190,10 @@ export type SimpleBezierEdgeProps = EdgeComponentProps;
 
 export type OnReconnect<EdgeType extends Edge = Edge> = (oldEdge: EdgeType, newConnection: Connection) => void;
 
-export type ConnectionLineComponentProps = {
+export type ConnectionLineComponentProps<NodeType extends Node = Node> = {
   connectionLineStyle?: CSSProperties;
   connectionLineType: ConnectionLineType;
-  fromNode: Node;
+  fromNode: InternalNode<NodeType>;
   fromHandle: Handle;
   fromX: number;
   fromY: number;
@@ -202,8 +202,10 @@ export type ConnectionLineComponentProps = {
   fromPosition: Position;
   toPosition: Position;
   connectionStatus: 'valid' | 'invalid' | null;
-  toNode: Node | null;
+  toNode: InternalNode<NodeType> | null;
   toHandle: Handle | null;
 };
 
-export type ConnectionLineComponent = ComponentType<ConnectionLineComponentProps>;
+export type ConnectionLineComponent<NodeType extends Node = Node> = ComponentType<
+  ConnectionLineComponentProps<NodeType>
+>;
diff --git a/packages/system/src/types/general.ts b/packages/system/src/types/general.ts
index f712e1ea..becbe4af 100644
--- a/packages/system/src/types/general.ts
+++ b/packages/system/src/types/general.ts
@@ -148,34 +148,30 @@ export const initialConnection: NoConnection = {
 export type NoConnection = {
   inProgress: false;
   isValid: null;
-
   from: null;
   fromHandle: null;
   fromPosition: null;
   fromNode: null;
-
   to: null;
   toHandle: null;
   toPosition: null;
   toNode: null;
 };
-
-export type ConnectionInProgress = {
+export type ConnectionInProgress<NodeType extends InternalNodeBase = InternalNodeBase> = {
   inProgress: true;
   isValid: boolean | null;
-
   from: XYPosition;
   fromHandle: Handle;
   fromPosition: Position;
-  fromNode: NodeBase;
-
+  fromNode: NodeType;
   to: XYPosition;
   toHandle: Handle | null;
   toPosition: Position;
-  toNode: NodeBase | null;
+  toNode: NodeType | null;
 };
-
-export type ConnectionState = ConnectionInProgress | NoConnection;
+export type ConnectionState<NodeType extends InternalNodeBase = InternalNodeBase> =
+  | ConnectionInProgress<NodeType>
+  | NoConnection;
 
 export type UpdateConnection = (params: ConnectionState) => void;
 
diff --git a/packages/system/src/xyhandle/XYHandle.ts b/packages/system/src/xyhandle/XYHandle.ts
index 13f627fa..77b6da50 100644
--- a/packages/system/src/xyhandle/XYHandle.ts
+++ b/packages/system/src/xyhandle/XYHandle.ts
@@ -104,7 +104,7 @@ function onPointerDown(
     from,
     fromHandle,
     fromPosition: fromHandle.position,
-    fromNode: fromNodeInternal.internals.userNode,
+    fromNode: fromNodeInternal,
 
     to: position,
     toHandle: null,
@@ -163,7 +163,7 @@ function onPointerDown(
           : position,
       toHandle: result.toHandle,
       toPosition: isValid && result.toHandle ? result.toHandle.position : oppositePosition[fromHandle.position],
-      toNode: result.toHandle ? nodeLookup.get(result.toHandle.nodeId)!.internals.userNode : null,
+      toNode: result.toHandle ? nodeLookup.get(result.toHandle.nodeId)! : null,
     };
 
     // we don't want to trigger an update when the connection