diff --git a/examples/react/src/examples/NodeResizer/index.tsx b/examples/react/src/examples/NodeResizer/index.tsx
index 7afb411f..8d5b7602 100644
--- a/examples/react/src/examples/NodeResizer/index.tsx
+++ b/examples/react/src/examples/NodeResizer/index.tsx
@@ -185,6 +185,7 @@ const CustomNodeFlow = () => {
       maxZoom={5}
       snapToGrid={snapToGrid}
       fitView
+      onlyRenderVisibleElements
     >
       <Controls />
       <Panel position="bottom-right">
diff --git a/packages/react/src/components/NodeWrapper/index.tsx b/packages/react/src/components/NodeWrapper/index.tsx
index acc0d7fe..dfbb7b93 100644
--- a/packages/react/src/components/NodeWrapper/index.tsx
+++ b/packages/react/src/components/NodeWrapper/index.tsx
@@ -1,4 +1,4 @@
-import { useEffect, useRef, type MouseEvent, type KeyboardEvent } from 'react';
+import { type MouseEvent, type KeyboardEvent } from 'react';
 import cc from 'classcat';
 import { shallow } from 'zustand/shallow';
 import {
@@ -18,6 +18,7 @@ import { useDrag } from '../../hooks/useDrag';
 import { useMoveSelectedNodes } from '../../hooks/useMoveSelectedNodes';
 import { handleNodeClick } from '../Nodes/utils';
 import { arrowKeyDiffs, builtinNodeTypes, getNodeInlineStyleDimensions } from './utils';
+import { useNodeObserver } from './useNodeObserver';
 import type { InternalNode, Node, NodeWrapperProps } from '../../types';
 
 export function NodeWrapper<NodeType extends Node>({
@@ -68,58 +69,8 @@ export function NodeWrapper<NodeType extends Node>({
   const isFocusable = !!(node.focusable || (nodesFocusable && typeof node.focusable === 'undefined'));
 
   const store = useStoreApi();
-  const nodeRef = useRef<HTMLDivElement>(null);
-  const prevSourcePosition = useRef(node.sourcePosition);
-  const prevTargetPosition = useRef(node.targetPosition);
-  const prevType = useRef(nodeType);
-
-  const nodeDimensions = getNodeDimensions(node);
-  const inlineDimensions = getNodeInlineStyleDimensions(node);
-  const initialized = nodeHasDimensions(node);
-  const hasHandleBounds = !!node.internals.handleBounds;
-
-  const moveSelectedNodes = useMoveSelectedNodes();
-
-  useEffect(() => {
-    const currNode = nodeRef.current;
-
-    return () => {
-      if (currNode) {
-        resizeObserver?.unobserve(currNode);
-      }
-    };
-  }, []);
-
-  useEffect(() => {
-    if (nodeRef.current && !node.hidden) {
-      const currNode = nodeRef.current;
-      if (!initialized || !hasHandleBounds) {
-        resizeObserver?.unobserve(currNode);
-        resizeObserver?.observe(currNode);
-      }
-    }
-  }, [node.hidden, initialized, hasHandleBounds]);
-
-  useEffect(() => {
-    // when the user programmatically changes the source or handle position, we re-initialize the node
-    const typeChanged = prevType.current !== nodeType;
-    const sourcePosChanged = prevSourcePosition.current !== node.sourcePosition;
-    const targetPosChanged = prevTargetPosition.current !== node.targetPosition;
-
-    if (nodeRef.current && (typeChanged || sourcePosChanged || targetPosChanged)) {
-      if (typeChanged) {
-        prevType.current = nodeType;
-      }
-      if (sourcePosChanged) {
-        prevSourcePosition.current = node.sourcePosition;
-      }
-      if (targetPosChanged) {
-        prevTargetPosition.current = node.targetPosition;
-      }
-      store.getState().updateNodeInternals(new Map([[id, { id, nodeElement: nodeRef.current, force: true }]]));
-    }
-  }, [id, nodeType, node.sourcePosition, node.targetPosition]);
-
+  const hasDimensions = nodeHasDimensions(node);
+  const nodeRef = useNodeObserver({ node, nodeType, hasDimensions, resizeObserver });
   const dragging = useDrag({
     nodeRef,
     disabled: node.hidden || !isDraggable,
@@ -128,20 +79,21 @@ export function NodeWrapper<NodeType extends Node>({
     nodeId: id,
     isSelectable,
   });
+  const moveSelectedNodes = useMoveSelectedNodes();
 
   if (node.hidden) {
     return null;
   }
 
-  const positionAbsolute = nodeExtent
-    ? clampPosition(node.internals.positionAbsolute, nodeExtent)
-    : node.internals.positionAbsolute || { x: 0, y: 0 };
+  const nodeDimensions = getNodeDimensions(node);
+  const inlineDimensions = getNodeInlineStyleDimensions(node);
+  const clampedPosition = nodeExtent
+    ? clampPosition(internals.positionAbsolute, nodeExtent)
+    : internals.positionAbsolute;
 
   const positionWithOrigin = getPositionWithOrigin({
-    x: positionAbsolute.x,
-    y: positionAbsolute.y,
-    width: nodeDimensions.width,
-    height: nodeDimensions.height,
+    ...clampedPosition,
+    ...nodeDimensions,
     origin: node.origin || nodeOrigin,
   });
   const hasPointerEvents = isSelectable || isDraggable || onClick || onMouseEnter || onMouseMove || onMouseLeave;
@@ -188,7 +140,7 @@ export function NodeWrapper<NodeType extends Node>({
       store.setState({
         ariaLiveMessage: `Moved selected node ${event.key
           .replace('Arrow', '')
-          .toLowerCase()}. New position, x: ${~~positionAbsolute.x}, y: ${~~positionAbsolute.y}`,
+          .toLowerCase()}. New position, x: ${~~clampedPosition.x}, y: ${~~clampedPosition.y}`,
       });
 
       moveSelectedNodes({
@@ -221,7 +173,7 @@ export function NodeWrapper<NodeType extends Node>({
         zIndex: internals.z,
         transform: `translate(${positionWithOrigin.x}px,${positionWithOrigin.y}px)`,
         pointerEvents: hasPointerEvents ? 'all' : 'none',
-        visibility: initialized ? 'visible' : 'hidden',
+        visibility: hasDimensions ? 'visible' : 'hidden',
         ...node.style,
         ...inlineDimensions,
       }}
@@ -244,8 +196,8 @@ export function NodeWrapper<NodeType extends Node>({
           id={id}
           data={node.data}
           type={nodeType}
-          positionAbsoluteX={positionAbsolute.x}
-          positionAbsoluteY={positionAbsolute.y}
+          positionAbsoluteX={clampedPosition.x}
+          positionAbsoluteY={clampedPosition.y}
           selected={node.selected}
           isConnectable={isConnectable}
           sourcePosition={node.sourcePosition}
diff --git a/packages/react/src/components/NodeWrapper/useNodeObserver.ts b/packages/react/src/components/NodeWrapper/useNodeObserver.ts
new file mode 100644
index 00000000..1476e920
--- /dev/null
+++ b/packages/react/src/components/NodeWrapper/useNodeObserver.ts
@@ -0,0 +1,71 @@
+import { useEffect, useRef } from 'react';
+
+import type { InternalNode } from '../../types';
+import { useStoreApi } from '../../hooks/useStore';
+
+/**
+ * Hook to handle the resize observation + internal updates for the passed node.
+ *
+ * @internal
+ * @returns nodeRef - reference to the node element
+ */
+export function useNodeObserver({
+  node,
+  nodeType,
+  hasDimensions,
+  resizeObserver,
+}: {
+  node: InternalNode;
+  nodeType: string;
+  hasDimensions: boolean;
+  resizeObserver: ResizeObserver | null;
+}) {
+  const store = useStoreApi();
+  const nodeRef = useRef<HTMLDivElement | null>(null);
+  const observedNode = useRef<HTMLDivElement | null>(null);
+  const prevSourcePosition = useRef(node.sourcePosition);
+  const prevTargetPosition = useRef(node.targetPosition);
+  const prevType = useRef(nodeType);
+  const isInitialized = hasDimensions && !!node.internals.handleBounds && !node.hidden;
+
+  useEffect(() => {
+    if (nodeRef.current && (!isInitialized || observedNode.current !== nodeRef.current)) {
+      if (observedNode.current) {
+        resizeObserver?.unobserve(observedNode.current);
+      }
+      resizeObserver?.observe(nodeRef.current);
+      observedNode.current = nodeRef.current;
+    }
+  }, [isInitialized]);
+
+  useEffect(() => {
+    return () => {
+      if (observedNode.current) {
+        resizeObserver?.unobserve(observedNode.current);
+        observedNode.current = null;
+      }
+    };
+  }, []);
+
+  useEffect(() => {
+    if (nodeRef.current) {
+      // when the user programmatically changes the source or handle position, we need to update the internals
+      // to make sure the edges are updated correctly
+      const typeChanged = prevType.current !== nodeType;
+      const sourcePosChanged = prevSourcePosition.current !== node.sourcePosition;
+      const targetPosChanged = prevTargetPosition.current !== node.targetPosition;
+
+      if (typeChanged || sourcePosChanged || targetPosChanged) {
+        prevType.current = nodeType;
+        prevSourcePosition.current = node.sourcePosition;
+        prevTargetPosition.current = node.targetPosition;
+
+        store
+          .getState()
+          .updateNodeInternals(new Map([[node.id, { id: node.id, nodeElement: nodeRef.current, force: true }]]));
+      }
+    }
+  }, [node.id, nodeType, node.sourcePosition, node.targetPosition]);
+
+  return nodeRef;
+}
diff --git a/packages/react/src/container/NodeRenderer/useResizeObserver.ts b/packages/react/src/container/NodeRenderer/useResizeObserver.ts
index fa7d501f..b722d440 100644
--- a/packages/react/src/container/NodeRenderer/useResizeObserver.ts
+++ b/packages/react/src/container/NodeRenderer/useResizeObserver.ts
@@ -1,4 +1,4 @@
-import { useEffect, useMemo, useRef } from 'react';
+import { useEffect, useState } from 'react';
 
 import { ReactFlowState } from '../../types';
 import { useStore } from '../../hooks/useStore';
@@ -8,16 +8,13 @@ const selector = (s: ReactFlowState) => s.updateNodeInternals;
 
 export function useResizeObserver() {
   const updateNodeInternals = useStore(selector);
-  const resizeObserverRef = useRef<ResizeObserver>();
-
-  const resizeObserver = useMemo(() => {
+  const [resizeObserver] = useState(() => {
     if (typeof ResizeObserver === 'undefined') {
       return null;
     }
 
-    const observer = new ResizeObserver((entries: ResizeObserverEntry[]) => {
+    return new ResizeObserver((entries: ResizeObserverEntry[]) => {
       const updates = new Map<string, InternalNodeUpdate>();
-
       entries.forEach((entry: ResizeObserverEntry) => {
         const id = entry.target.getAttribute('data-id') as string;
         updates.set(id, {
@@ -28,17 +25,13 @@ export function useResizeObserver() {
 
       updateNodeInternals(updates);
     });
-
-    resizeObserverRef.current = observer;
-
-    return observer;
-  }, []);
+  });
 
   useEffect(() => {
     return () => {
-      resizeObserverRef?.current?.disconnect();
+      resizeObserver?.disconnect();
     };
-  }, []);
+  }, [resizeObserver]);
 
   return resizeObserver;
 }