diff --git a/examples/react/src/App/routes.ts b/examples/react/src/App/routes.ts
index 444586ca..7cd3eb13 100644
--- a/examples/react/src/App/routes.ts
+++ b/examples/react/src/App/routes.ts
@@ -49,6 +49,7 @@ import UseConnection from '../examples/UseConnection';
 import UseNodesInitialized from '../examples/UseNodesInit';
 import UseNodesData from '../examples/UseNodesData';
 import UseHandleConnections from '../examples/UseHandleConnections';
+import AddNodeOnEdgeDrop from '../examples/AddNodeOnEdgeDrop';
 
 export interface IRoute {
   name: string;
@@ -57,6 +58,11 @@ export interface IRoute {
 }
 
 const routes: IRoute[] = [
+  {
+    name: 'Add Node on edge Drop',
+    path: 'add-node-edge-drop',
+    component: AddNodeOnEdgeDrop,
+  },
   {
     name: 'Basic',
     path: 'basic',
diff --git a/examples/react/src/examples/AddNodeOnEdgeDrop/index.tsx b/examples/react/src/examples/AddNodeOnEdgeDrop/index.tsx
new file mode 100644
index 00000000..e1204169
--- /dev/null
+++ b/examples/react/src/examples/AddNodeOnEdgeDrop/index.tsx
@@ -0,0 +1,99 @@
+import { useCallback, useRef } from 'react';
+import {
+  ReactFlow,
+  useNodesState,
+  useEdgesState,
+  addEdge,
+  useReactFlow,
+  ReactFlowProvider,
+  OnConnect,
+  OnConnectStart,
+  OnConnectEnd,
+  Node,
+  Edge,
+} from '@xyflow/react';
+import '@xyflow/react/dist/style.css';
+
+const initialNodes: Node[] = [
+  {
+    id: '0',
+    type: 'input',
+    data: { label: 'Node' },
+    position: { x: 0, y: 50 },
+  },
+];
+
+const initialEdges: Edge[] = [];
+
+let id = 1;
+const getId = () => `${id++}`;
+
+const AddNodeOnEdgeDrop = () => {
+  const reactFlowWrapper = useRef(null);
+  const connectingNodeId = useRef<string | null>(null);
+  const [nodes, setNodes, onNodesChange] = useNodesState(initialNodes);
+  const [edges, setEdges, onEdgesChange] = useEdgesState(initialEdges);
+  const { screenToFlowPosition } = useReactFlow();
+  const onConnect: OnConnect = useCallback((params) => {
+    // reset the start node on connections
+    connectingNodeId.current = null;
+    setEdges((eds) => addEdge(params, eds));
+  }, []);
+
+  const onConnectStart: OnConnectStart = useCallback((_, { nodeId }) => {
+    connectingNodeId.current = nodeId;
+  }, []);
+
+  const onConnectEnd: OnConnectEnd = useCallback(
+    (event) => {
+      if (!connectingNodeId.current) return;
+
+      const targetIsPane = (event.target as HTMLDivElement)?.classList.contains('react-flow__pane');
+
+      if (targetIsPane && 'clientX' in event && 'clientY' in event) {
+        // we need to remove the wrapper bounds, in order to get the correct position
+        const id = getId();
+        const newNode: Node = {
+          id,
+          position: screenToFlowPosition({
+            x: event.clientX,
+            y: event.clientY,
+          }),
+          data: { label: `Node ${id}` },
+          origin: [0.5, 0.0],
+        };
+
+        const newEdge: Edge = {
+          id,
+          source: connectingNodeId.current,
+          target: id,
+        };
+
+        setNodes((nds) => nds.concat(newNode));
+        setEdges((eds) => eds.concat(newEdge));
+      }
+    },
+    [screenToFlowPosition]
+  );
+
+  return (
+    <div className="wrapper" ref={reactFlowWrapper} style={{ height: '100%' }}>
+      <ReactFlow
+        nodes={nodes}
+        edges={edges}
+        onNodesChange={onNodesChange}
+        onEdgesChange={onEdgesChange}
+        onConnect={onConnect}
+        onConnectStart={onConnectStart}
+        onConnectEnd={onConnectEnd}
+        fitView
+      />
+    </div>
+  );
+};
+
+export default () => (
+  <ReactFlowProvider>
+    <AddNodeOnEdgeDrop />
+  </ReactFlowProvider>
+);