diff --git a/packages/system/src/utils/graph.ts b/packages/system/src/utils/graph.ts
index 27ae064a..cde43bd8 100644
--- a/packages/system/src/utils/graph.ts
+++ b/packages/system/src/utils/graph.ts
@@ -254,9 +254,10 @@ export function calcNextPosition<NodeType extends NodeBase>(
     ];
   }
 
-  const positionAbsolute = currentExtent
-    ? clampPosition(nextPosition, currentExtent as CoordinateExtent)
-    : nextPosition;
+  const positionAbsolute =
+    currentExtent && currentExtent !== 'parent'
+      ? clampPosition(nextPosition, currentExtent as CoordinateExtent)
+      : nextPosition;
 
   return {
     position: {
diff --git a/packages/system/src/xydrag/XYDrag.ts b/packages/system/src/xydrag/XYDrag.ts
index 920299df..674d678c 100644
--- a/packages/system/src/xydrag/XYDrag.ts
+++ b/packages/system/src/xydrag/XYDrag.ts
@@ -1,7 +1,15 @@
 import { drag } from 'd3-drag';
 import { select } from 'd3-selection';
 
-import { calcAutoPan, getEventPosition, getPointerPosition, calcNextPosition, snapPosition } from '../utils';
+import {
+  calcAutoPan,
+  getEventPosition,
+  getPointerPosition,
+  calcNextPosition,
+  snapPosition,
+  getRectOfNodes,
+  rectToBox,
+} from '../utils';
 import { getDragItems, getEventHandlerParams, hasSelector, wrapSelectionDragFunc } from './utils';
 import type {
   NodeBase,
@@ -18,6 +26,7 @@ import type {
   OnNodeDrag,
   OnSelectionDrag,
   UpdateNodePositions,
+  Box,
 } from '../types';
 
 export type OnDrag = (event: MouseEvent, dragItems: NodeDragItem[], node: NodeBase, nodes: NodeBase[]) => void;
@@ -105,6 +114,12 @@ export function XYDrag({
       lastPos = { x, y };
 
       let hasChange = false;
+      let nodesBox: Box = { x: 0, y: 0, x2: 0, y2: 0 };
+
+      if (dragItems.length > 1 && nodeExtent) {
+        const rect = getRectOfNodes(dragItems as unknown as NodeBase[], nodeOrigin);
+        nodesBox = rectToBox(rect);
+      }
 
       dragItems = dragItems.map((n) => {
         let nextPosition = { x: x - n.distance.x, y: y - n.distance.y };
@@ -113,9 +128,24 @@ export function XYDrag({
           nextPosition = snapPosition(nextPosition, snapGrid);
         }
 
-        const updatedPos = calcNextPosition(n, nextPosition, nodes, nodeExtent, nodeOrigin, onError);
+        // if there is selection with multiple nodes and a node extent is set, we need to adjust the node extent for each node
+        // based on its position so that the node stays at it's position relative to the selection.
+        const adjustedNodeExtent: CoordinateExtent = [
+          [nodeExtent[0][0], nodeExtent[0][1]],
+          [nodeExtent[1][0], nodeExtent[1][1]],
+        ];
 
-        // we want to make sure that we only fire a change event when there is a changes
+        if (dragItems.length > 1 && nodeExtent && !n.extent) {
+          adjustedNodeExtent[0][0] = n.positionAbsolute.x - nodesBox.x + nodeExtent[0][0];
+          adjustedNodeExtent[1][0] = n.positionAbsolute.x + (n.width ?? 0) - nodesBox.x2 + nodeExtent[1][0];
+
+          adjustedNodeExtent[0][1] = n.positionAbsolute.y - nodesBox.y + nodeExtent[0][1];
+          adjustedNodeExtent[1][1] = n.positionAbsolute.y + (n.height ?? 0) - nodesBox.y2 + nodeExtent[1][1];
+        }
+
+        const updatedPos = calcNextPosition(n, nextPosition, nodes, adjustedNodeExtent, nodeOrigin, onError);
+
+        // we want to make sure that we only fire a change event when there is a change
         hasChange = hasChange || n.position.x !== updatedPos.position.x || n.position.y !== updatedPos.position.y;
 
         n.position = updatedPos.position;