diff --git a/examples/react/src/examples/NodeResizer/index.tsx b/examples/react/src/examples/NodeResizer/index.tsx
index 8d5b7602..397c1f22 100644
--- a/examples/react/src/examples/NodeResizer/index.tsx
+++ b/examples/react/src/examples/NodeResizer/index.tsx
@@ -37,6 +37,7 @@ const initialNodes: Node[] = [
     type: 'defaultResizer',
     data: { label: 'default resizer' },
     position: { x: 0, y: 0 },
+    origin: [1, 1],
     style: { ...nodeStyle },
   },
   {
@@ -127,7 +128,7 @@ const initialNodes: Node[] = [
     data: { label: 'Parent', keepAspectRatio: true },
     position: { x: 700, y: 0 },
     width: 300,
-    height: 400,
+    height: 300,
     style: { ...nodeStyle },
   },
   {
@@ -147,7 +148,9 @@ const initialNodes: Node[] = [
     id: '5b',
     type: 'defaultResizer',
     data: { label: 'Child with expandParent' },
-    position: { x: 150, y: 100 },
+    position: { x: 100, y: 100 },
+    width: 100,
+    height: 100,
     parentId: '5',
     expandParent: true,
     style: { ...nodeStyle },
@@ -155,8 +158,10 @@ const initialNodes: Node[] = [
   {
     id: '5c',
     type: 'defaultResizer',
-    data: { label: 'Child with expandParent & keepAspectRatio', keepAspectRatio: true },
-    position: { x: 25, y: 200 },
+    data: { label: 'Child with expandParent & keepAspectRatio' },
+    position: { x: 250, y: 200 },
+    height: 100,
+    width: 100,
     parentId: '5',
     expandParent: true,
     style: { ...nodeStyle },
diff --git a/examples/react/src/examples/Subflow/DebugNode.tsx b/examples/react/src/examples/Subflow/DebugNode.tsx
index 6a8a2d26..547da524 100644
--- a/examples/react/src/examples/Subflow/DebugNode.tsx
+++ b/examples/react/src/examples/Subflow/DebugNode.tsx
@@ -1,6 +1,6 @@
 import React, { memo, FC, CSSProperties } from 'react';
 
-import { Handle, NodeProps, Position } from '@xyflow/react';
+import { Handle, NodeProps, Position, useInternalNode } from '@xyflow/react';
 
 const infoStyle: CSSProperties = { fontSize: 11 };
 const idStyle: CSSProperties = {
@@ -12,6 +12,8 @@ const idStyle: CSSProperties = {
 };
 
 const DebugNode: FC<NodeProps> = ({ zIndex, positionAbsoluteX, positionAbsoluteY, id }) => {
+  const node = useInternalNode(id)!;
+
   return (
     <>
       <Handle type="target" position={Position.Top} />
@@ -19,6 +21,9 @@ const DebugNode: FC<NodeProps> = ({ zIndex, positionAbsoluteX, positionAbsoluteY
       <div style={infoStyle}>
         x:{Math.round(positionAbsoluteX)} y:{Math.round(positionAbsoluteY)} z:{zIndex}
       </div>
+      <div style={infoStyle}>
+        x:{Math.round(node.position.x)} y:{Math.round(node.position.y)}
+      </div>
       <Handle type="source" position={Position.Bottom} />
     </>
   );
diff --git a/examples/react/src/examples/Subflow/index.tsx b/examples/react/src/examples/Subflow/index.tsx
index 7f1b3f4b..74654870 100644
--- a/examples/react/src/examples/Subflow/index.tsx
+++ b/examples/react/src/examples/Subflow/index.tsx
@@ -14,6 +14,8 @@ import {
   Background,
   Panel,
   NodeOrigin,
+  useUpdateNodeInternals,
+  ReactFlowProvider,
 } from '@xyflow/react';
 
 import DebugNode from './DebugNode';
@@ -104,7 +106,7 @@ const initialNodes: Node[] = [
   {
     id: '5b',
     data: { label: 'Node 5b' },
-    position: { x: 225, y: 50 },
+    position: { x: 200, y: 200 },
     className: 'light',
     parentId: '5',
     expandParent: true,
@@ -151,6 +153,7 @@ const nodeTypes = {
 
 const Subflow = () => {
   const [rfInstance, setRfInstance] = useState<ReactFlowInstance | null>(null);
+  const updateNodeInternals = useUpdateNodeInternals();
   const [nodes, setNodes, onNodesChange] = useNodesState(initialNodes);
   const [edges, setEdges, onEdgesChange] = useEdgesState(initialEdges);
 
@@ -216,6 +219,7 @@ const Subflow = () => {
       onlyRenderVisibleElements={false}
       nodeTypes={nodeTypes}
       fitView
+      nodeOrigin={[0, 0]}
     >
       <MiniMap />
       <Controls />
@@ -228,9 +232,14 @@ const Subflow = () => {
         <button onClick={toggleChildNodes}>toggleChildNodes</button>
         <button onClick={logToObject}>toObject</button>
         <button onClick={() => setNodes(initialNodes)}>setNodes</button>
+        <button onClick={() => updateNodeInternals(nodes.map((node) => node.id))}>updateNodeInternals</button>
       </Panel>
     </ReactFlow>
   );
 };
 
-export default Subflow;
+export default () => (
+  <ReactFlowProvider>
+    <Subflow />
+  </ReactFlowProvider>
+);
diff --git a/packages/react/src/additional-components/MiniMap/MiniMap.tsx b/packages/react/src/additional-components/MiniMap/MiniMap.tsx
index 0a05890d..bd7d6634 100644
--- a/packages/react/src/additional-components/MiniMap/MiniMap.tsx
+++ b/packages/react/src/additional-components/MiniMap/MiniMap.tsx
@@ -25,12 +25,8 @@ const selector = (s: ReactFlowState) => {
 
   return {
     viewBB,
-    boundingRect:
-      s.nodeLookup.size > 0
-        ? getBoundsOfRects(getInternalNodesBounds(s.nodeLookup, { nodeOrigin: s.nodeOrigin }), viewBB)
-        : viewBB,
+    boundingRect: s.nodeLookup.size > 0 ? getBoundsOfRects(getInternalNodesBounds(s.nodeLookup), viewBB) : viewBB,
     rfId: s.rfId,
-    nodeOrigin: s.nodeOrigin,
     panZoom: s.panZoom,
     translateExtent: s.translateExtent,
     flowWidth: s.width,
diff --git a/packages/react/src/additional-components/MiniMap/MiniMapNodes.tsx b/packages/react/src/additional-components/MiniMap/MiniMapNodes.tsx
index da6d3745..5bb7e939 100644
--- a/packages/react/src/additional-components/MiniMap/MiniMapNodes.tsx
+++ b/packages/react/src/additional-components/MiniMap/MiniMapNodes.tsx
@@ -1,7 +1,7 @@
 /* eslint-disable @typescript-eslint/ban-ts-comment */
 /* eslint-disable @typescript-eslint/no-explicit-any */
 import { ComponentType, memo } from 'react';
-import { NodeOrigin, getNodeDimensions, getNodePositionWithOrigin, nodeHasDimensions } from '@xyflow/system';
+import { getNodeDimensions, nodeHasDimensions } from '@xyflow/system';
 import { shallow } from 'zustand/shallow';
 
 import { useStore } from '../../hooks/useStore';
@@ -11,7 +11,6 @@ import type { MiniMapNodes as MiniMapNodesProps, GetMiniMapNodeAttribute, MiniMa
 
 declare const window: any;
 
-const selector = (s: ReactFlowState) => s.nodeOrigin;
 const selectorNodeIds = (s: ReactFlowState) => s.nodes.map((node) => node.id);
 const getAttrFunction = <NodeType extends Node>(func: any): GetMiniMapNodeAttribute<NodeType> =>
   func instanceof Function ? func : () => func;
@@ -28,7 +27,6 @@ function MiniMapNodes<NodeType extends Node>({
   onClick,
 }: MiniMapNodesProps<NodeType>) {
   const nodeIds = useStore(selectorNodeIds, shallow);
-  const nodeOrigin = useStore(selector);
   const nodeColorFunc = getAttrFunction<NodeType>(nodeColor);
   const nodeStrokeColorFunc = getAttrFunction<NodeType>(nodeStrokeColor);
   const nodeClassNameFunc = getAttrFunction<NodeType>(nodeClassName);
@@ -46,7 +44,6 @@ function MiniMapNodes<NodeType extends Node>({
         <NodeComponentWrapper<NodeType>
           key={nodeId}
           id={nodeId}
-          nodeOrigin={nodeOrigin}
           nodeColorFunc={nodeColorFunc}
           nodeStrokeColorFunc={nodeStrokeColorFunc}
           nodeClassNameFunc={nodeClassNameFunc}
@@ -63,7 +60,6 @@ function MiniMapNodes<NodeType extends Node>({
 
 function NodeComponentWrapperInner<NodeType extends Node>({
   id,
-  nodeOrigin,
   nodeColorFunc,
   nodeStrokeColorFunc,
   nodeClassNameFunc,
@@ -74,7 +70,6 @@ function NodeComponentWrapperInner<NodeType extends Node>({
   onClick,
 }: {
   id: string;
-  nodeOrigin: NodeOrigin;
   nodeColorFunc: GetMiniMapNodeAttribute<NodeType>;
   nodeStrokeColorFunc: GetMiniMapNodeAttribute<NodeType>;
   nodeClassNameFunc: GetMiniMapNodeAttribute<NodeType>;
@@ -86,7 +81,7 @@ function NodeComponentWrapperInner<NodeType extends Node>({
 }) {
   const { node, x, y } = useStore((s) => {
     const node = s.nodeLookup.get(id) as InternalNode<NodeType>;
-    const { x, y } = getNodePositionWithOrigin(node, nodeOrigin).positionAbsolute;
+    const { x, y } = node.internals.positionAbsolute;
 
     return {
       node,
diff --git a/packages/react/src/additional-components/NodeResizer/NodeResizeControl.tsx b/packages/react/src/additional-components/NodeResizer/NodeResizeControl.tsx
index 79746f84..63128c09 100644
--- a/packages/react/src/additional-components/NodeResizer/NodeResizeControl.tsx
+++ b/packages/react/src/additional-components/NodeResizer/NodeResizeControl.tsx
@@ -67,26 +67,30 @@ function ResizeControl({
         },
         onChange: (change: XYResizerChange, childChanges: XYResizerChildChange[]) => {
           const { triggerNodeChanges, nodeLookup, parentLookup, nodeOrigin } = store.getState();
-
           const changes: NodeChange[] = [];
           const nextPosition = { x: change.x, y: change.y };
-
           const node = nodeLookup.get(id);
+
           if (node && node.expandParent && node.parentId) {
+            const origin = node.origin ?? nodeOrigin;
+            const width = change.width ?? node.measured.width!;
+            const height = change.height ?? node.measured.height!;
+
             const child: ParentExpandChild = {
               id: node.id,
               parentId: node.parentId,
               rect: {
-                width: change.width ?? node.measured.width!,
-                height: change.height ?? node.measured.height!,
+                width,
+                height,
                 ...evaluateAbsolutePosition(
                   {
                     x: change.x ?? node.position.x,
                     y: change.y ?? node.position.y,
                   },
+                  { width, height },
                   node.parentId,
                   nodeLookup,
-                  node.origin ?? nodeOrigin
+                  origin
                 ),
               },
             };
@@ -94,9 +98,10 @@ function ResizeControl({
             const parentExpandChanges = handleExpandParent([child], nodeLookup, parentLookup, nodeOrigin);
             changes.push(...parentExpandChanges);
 
-            // when the parent was expanded by the child node, its position will be clamped at 0,0
-            nextPosition.x = change.x ? Math.max(0, change.x) : undefined;
-            nextPosition.y = change.y ? Math.max(0, change.y) : undefined;
+            // when the parent was expanded by the child node, its position will be clamped at
+            // 0,0 when node origin is 0,0 and to width, height if it's 1,1
+            nextPosition.x = change.x ? Math.max(origin[0] * width, change.x) : undefined;
+            nextPosition.y = change.y ? Math.max(origin[1] * height, change.y) : undefined;
           }
 
           if (nextPosition.x !== undefined && nextPosition.y !== undefined) {
diff --git a/packages/react/src/additional-components/NodeToolbar/NodeToolbar.tsx b/packages/react/src/additional-components/NodeToolbar/NodeToolbar.tsx
index f14f822e..b4431157 100644
--- a/packages/react/src/additional-components/NodeToolbar/NodeToolbar.tsx
+++ b/packages/react/src/additional-components/NodeToolbar/NodeToolbar.tsx
@@ -1,7 +1,7 @@
 import { useCallback, CSSProperties } from 'react';
 import cc from 'classcat';
 import { shallow } from 'zustand/shallow';
-import { Rect, Position, getNodeToolbarTransform, getNodesBounds } from '@xyflow/system';
+import { Position, getNodeToolbarTransform, getInternalNodesBounds, NodeLookup } from '@xyflow/system';
 
 import { InternalNode, ReactFlowState } from '../../types';
 import { useStore } from '../../hooks/useStore';
@@ -17,21 +17,24 @@ const nodeEqualityFn = (a?: InternalNode, b?: InternalNode) =>
   a?.selected !== b?.selected ||
   a?.internals.z !== b?.internals.z;
 
-const nodesEqualityFn = (a: InternalNode[], b: InternalNode[]) => {
-  if (a.length !== b.length) {
+const nodesEqualityFn = (a: NodeLookup, b: NodeLookup) => {
+  if (a.size !== b.size) {
     return false;
   }
 
-  return !a.some((node, i) => nodeEqualityFn(node, b[i]));
+  for (const [key, node] of a) {
+    if (nodeEqualityFn(node, b.get(key))) {
+      return false;
+    }
+  }
+
+  return true;
 };
 
 const storeSelector = (state: ReactFlowState) => ({
-  viewport: {
-    x: state.transform[0],
-    y: state.transform[1],
-    zoom: state.transform[2],
-  },
-  nodeOrigin: state.nodeOrigin,
+  x: state.transform[0],
+  y: state.transform[1],
+  zoom: state.transform[2],
   selectedNodesCount: state.nodes.filter((node) => node.selected).length,
 });
 
@@ -49,36 +52,41 @@ export function NodeToolbar({
   const contextNodeId = useNodeId();
 
   const nodesSelector = useCallback(
-    (state: ReactFlowState): InternalNode[] => {
+    (state: ReactFlowState): NodeLookup => {
       const nodeIds = Array.isArray(nodeId) ? nodeId : [nodeId || contextNodeId || ''];
-
-      return nodeIds.reduce<InternalNode[]>((acc, id) => {
+      const internalNodes = nodeIds.reduce<NodeLookup>((res, id) => {
         const node = state.nodeLookup.get(id);
         if (node) {
-          acc.push(node);
+          res.set(node.id, node);
         }
-        return acc;
-      }, []);
+
+        return res;
+      }, new Map());
+
+      return internalNodes;
     },
     [nodeId, contextNodeId]
   );
   const nodes = useStore(nodesSelector, nodesEqualityFn);
-  const { viewport, nodeOrigin, selectedNodesCount } = useStore(storeSelector, shallow);
+  const { x, y, zoom, selectedNodesCount } = useStore(storeSelector, shallow);
 
   // if isVisible is not set, we show the toolbar only if its node is selected and no other node is selected
   const isActive =
-    typeof isVisible === 'boolean' ? isVisible : nodes.length === 1 && nodes[0].selected && selectedNodesCount === 1;
+    typeof isVisible === 'boolean'
+      ? isVisible
+      : nodes.size === 1 && nodes.values().next().value.selected && selectedNodesCount === 1;
 
-  if (!isActive || !nodes.length) {
+  if (!isActive || !nodes.size) {
     return null;
   }
 
-  const nodeRect: Rect = getNodesBounds(nodes, { nodeOrigin });
-  const zIndex: number = Math.max(...nodes.map((node) => node.internals.z + 1));
+  const nodeRect = getInternalNodesBounds(nodes);
+  const nodesArray = Array.from(nodes.values());
+  const zIndex = Math.max(...nodesArray.map((node) => node.internals.z + 1));
 
   const wrapperStyle: CSSProperties = {
     position: 'absolute',
-    transform: getNodeToolbarTransform(nodeRect, viewport, position, offset, align),
+    transform: getNodeToolbarTransform(nodeRect, { x, y, zoom }, position, offset, align),
     zIndex,
     ...style,
   };
@@ -89,7 +97,8 @@ export function NodeToolbar({
         style={wrapperStyle}
         className={cc(['react-flow__node-toolbar', className])}
         {...rest}
-        data-id={nodes.reduce((acc, node) => `${acc}${node.id} `, '').trim()}
+        // @todo: check if we could only do this for non-prod envs
+        data-id={nodesArray.reduce((acc, node) => `${acc}${node.id} `, '').trim()}
       >
         {children}
       </div>
diff --git a/packages/react/src/components/NodeWrapper/index.tsx b/packages/react/src/components/NodeWrapper/index.tsx
index 279cda82..655233c9 100644
--- a/packages/react/src/components/NodeWrapper/index.tsx
+++ b/packages/react/src/components/NodeWrapper/index.tsx
@@ -6,7 +6,6 @@ import {
   elementSelectionKeys,
   errorMessages,
   getNodeDimensions,
-  getPositionWithOrigin,
   isInputDOMNode,
   nodeHasDimensions,
 } from '@xyflow/system';
@@ -40,7 +39,6 @@ export function NodeWrapper<NodeType extends Node>({
   rfId,
   nodeTypes,
   nodeExtent,
-  nodeOrigin,
   onError,
 }: NodeWrapperProps<NodeType>) {
   const { node, internals, isParent } = useStore((s) => {
@@ -87,15 +85,11 @@ export function NodeWrapper<NodeType extends Node>({
 
   const nodeDimensions = getNodeDimensions(node);
   const inlineDimensions = getNodeInlineStyleDimensions(node);
+  // TODO: clamping should happen earlier
   const clampedPosition = nodeExtent
     ? clampPosition(internals.positionAbsolute, nodeExtent)
     : internals.positionAbsolute;
 
-  const positionWithOrigin = getPositionWithOrigin({
-    ...clampedPosition,
-    ...nodeDimensions,
-    origin: node.origin || nodeOrigin,
-  });
   const hasPointerEvents = isSelectable || isDraggable || onClick || onMouseEnter || onMouseMove || onMouseLeave;
 
   const onMouseEnterHandler = onMouseEnter
@@ -181,7 +175,7 @@ export function NodeWrapper<NodeType extends Node>({
       ref={nodeRef}
       style={{
         zIndex: internals.z,
-        transform: `translate(${positionWithOrigin.x}px,${positionWithOrigin.y}px)`,
+        transform: `translate(${clampedPosition.x}px,${clampedPosition.y}px)`,
         pointerEvents: hasPointerEvents ? 'all' : 'none',
         visibility: hasDimensions ? 'visible' : 'hidden',
         ...node.style,
diff --git a/packages/react/src/components/NodesSelection/index.tsx b/packages/react/src/components/NodesSelection/index.tsx
index fda3a8c9..e2bcd238 100644
--- a/packages/react/src/components/NodesSelection/index.tsx
+++ b/packages/react/src/components/NodesSelection/index.tsx
@@ -21,7 +21,6 @@ export type NodesSelectionProps<NodeType> = {
 
 const selector = (s: ReactFlowState) => {
   const { width, height, x, y } = getInternalNodesBounds(s.nodeLookup, {
-    nodeOrigin: s.nodeOrigin,
     filter: (node) => !!node.selected,
   });
 
diff --git a/packages/react/src/components/ReactFlowProvider/index.tsx b/packages/react/src/components/ReactFlowProvider/index.tsx
index f04ebebd..4843afeb 100644
--- a/packages/react/src/components/ReactFlowProvider/index.tsx
+++ b/packages/react/src/components/ReactFlowProvider/index.tsx
@@ -4,6 +4,7 @@ import { Provider } from '../../contexts/StoreContext';
 import { createStore } from '../../store';
 import { BatchProvider } from '../BatchProvider';
 import type { Node, Edge } from '../../types';
+import { NodeOrigin } from '@xyflow/system';
 
 export type ReactFlowProviderProps = {
   initialNodes?: Node[];
@@ -13,6 +14,7 @@ export type ReactFlowProviderProps = {
   initialWidth?: number;
   initialHeight?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
   children: ReactNode;
 };
 
@@ -24,6 +26,7 @@ export function ReactFlowProvider({
   initialWidth: width,
   initialHeight: height,
   fitView,
+  nodeOrigin,
   children,
 }: ReactFlowProviderProps) {
   const [store] = useState(() =>
@@ -35,6 +38,7 @@ export function ReactFlowProvider({
       width,
       height,
       fitView,
+      nodeOrigin,
     })
   );
 
diff --git a/packages/react/src/container/FlowRenderer/index.tsx b/packages/react/src/container/FlowRenderer/index.tsx
index 30d17979..f3e0a23d 100644
--- a/packages/react/src/container/FlowRenderer/index.tsx
+++ b/packages/react/src/container/FlowRenderer/index.tsx
@@ -22,7 +22,6 @@ export type FlowRendererProps<NodeType extends Node = Node> = Omit<
   | 'selectNodesOnDrag'
   | 'defaultMarkerColor'
   | 'rfId'
-  | 'nodeOrigin'
 > & {
   isControlledViewport: boolean;
   children: ReactNode;
diff --git a/packages/react/src/container/GraphView/index.tsx b/packages/react/src/container/GraphView/index.tsx
index 8050ca20..d74a0fdb 100644
--- a/packages/react/src/container/GraphView/index.tsx
+++ b/packages/react/src/container/GraphView/index.tsx
@@ -32,7 +32,6 @@ export type GraphViewProps<NodeType extends Node = Node, EdgeType extends Edge =
       | 'noPanClassName'
       | 'defaultViewport'
       | 'disableKeyboardA11y'
-      | 'nodeOrigin'
     >
   > & {
     rfId: string;
@@ -97,7 +96,6 @@ function GraphViewComponent<NodeType extends Node = Node, EdgeType extends Edge
   noWheelClassName,
   noPanClassName,
   disableKeyboardA11y,
-  nodeOrigin,
   nodeExtent,
   rfId,
   viewport,
@@ -186,7 +184,6 @@ function GraphViewComponent<NodeType extends Node = Node, EdgeType extends Edge
           noPanClassName={noPanClassName}
           noDragClassName={noDragClassName}
           disableKeyboardA11y={disableKeyboardA11y}
-          nodeOrigin={nodeOrigin}
           nodeExtent={nodeExtent}
           rfId={rfId}
         />
diff --git a/packages/react/src/container/NodeRenderer/index.tsx b/packages/react/src/container/NodeRenderer/index.tsx
index 39b20323..2b178ae5 100644
--- a/packages/react/src/container/NodeRenderer/index.tsx
+++ b/packages/react/src/container/NodeRenderer/index.tsx
@@ -22,7 +22,6 @@ export type NodeRendererProps<NodeType extends Node> = Pick<
   | 'noDragClassName'
   | 'rfId'
   | 'disableKeyboardA11y'
-  | 'nodeOrigin'
   | 'nodeExtent'
   | 'nodeTypes'
 >;
@@ -72,7 +71,6 @@ function NodeRendererComponent<NodeType extends Node>(props: NodeRendererProps<N
             id={nodeId}
             nodeTypes={props.nodeTypes}
             nodeExtent={props.nodeExtent}
-            nodeOrigin={props.nodeOrigin}
             onClick={props.onNodeClick}
             onMouseEnter={props.onNodeMouseEnter}
             onMouseMove={props.onNodeMouseMove}
diff --git a/packages/react/src/container/Pane/index.tsx b/packages/react/src/container/Pane/index.tsx
index d0661307..3a623372 100644
--- a/packages/react/src/container/Pane/index.tsx
+++ b/packages/react/src/container/Pane/index.tsx
@@ -155,7 +155,7 @@ export function Pane({
   };
 
   const onPointerMove = (event: ReactPointerEvent): void => {
-    const { userSelectionRect, edgeLookup, transform, nodeOrigin, nodeLookup, triggerNodeChanges, triggerEdgeChanges } =
+    const { userSelectionRect, edgeLookup, transform, nodeLookup, triggerNodeChanges, triggerEdgeChanges } =
       store.getState();
 
     if (!containerBounds.current || !userSelectionRect) {
@@ -181,8 +181,7 @@ export function Pane({
       nextUserSelectRect,
       transform,
       selectionMode === SelectionMode.Partial,
-      true,
-      nodeOrigin
+      true
     );
 
     const selectedEdgeIds = new Set<string>();
diff --git a/packages/react/src/container/ReactFlow/Wrapper.tsx b/packages/react/src/container/ReactFlow/Wrapper.tsx
index af9ad4a4..ce1b5a74 100644
--- a/packages/react/src/container/ReactFlow/Wrapper.tsx
+++ b/packages/react/src/container/ReactFlow/Wrapper.tsx
@@ -3,6 +3,7 @@ import { useContext, type ReactNode } from 'react';
 import StoreContext from '../../contexts/StoreContext';
 import { ReactFlowProvider } from '../../components/ReactFlowProvider';
 import type { Node, Edge } from '../../types';
+import { NodeOrigin } from '@xyflow/system';
 
 export function Wrapper({
   children,
@@ -13,6 +14,7 @@ export function Wrapper({
   width,
   height,
   fitView,
+  nodeOrigin,
 }: {
   children: ReactNode;
   nodes?: Node[];
@@ -22,6 +24,7 @@ export function Wrapper({
   width?: number;
   height?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
 }) {
   const isWrapped = useContext(StoreContext);
 
@@ -40,6 +43,7 @@ export function Wrapper({
       initialWidth={width}
       initialHeight={height}
       fitView={fitView}
+      nodeOrigin={nodeOrigin}
     >
       {children}
     </ReactFlowProvider>
diff --git a/packages/react/src/container/ReactFlow/index.tsx b/packages/react/src/container/ReactFlow/index.tsx
index 64ac7202..c301d9d4 100644
--- a/packages/react/src/container/ReactFlow/index.tsx
+++ b/packages/react/src/container/ReactFlow/index.tsx
@@ -157,7 +157,7 @@ function ReactFlow<NodeType extends Node = Node, EdgeType extends Edge = Edge>(
       data-testid="rf__wrapper"
       id={id}
     >
-      <Wrapper nodes={nodes} edges={edges} width={width} height={height} fitView={fitView}>
+      <Wrapper nodes={nodes} edges={edges} width={width} height={height} fitView={fitView} nodeOrigin={nodeOrigin}>
         <GraphView<NodeType, EdgeType>
           onInit={onInit}
           onNodeClick={onNodeClick}
@@ -217,7 +217,6 @@ function ReactFlow<NodeType extends Node = Node, EdgeType extends Edge = Edge>(
           noPanClassName={noPanClassName}
           rfId={rfId}
           disableKeyboardA11y={disableKeyboardA11y}
-          nodeOrigin={nodeOrigin}
           nodeExtent={nodeExtent}
           viewport={viewport}
           onViewportChange={onViewportChange}
diff --git a/packages/react/src/hooks/useReactFlow.ts b/packages/react/src/hooks/useReactFlow.ts
index 6766e775..faf9d31f 100644
--- a/packages/react/src/hooks/useReactFlow.ts
+++ b/packages/react/src/hooks/useReactFlow.ts
@@ -50,7 +50,7 @@ export function useReactFlow<NodeType extends Node = Node, EdgeType extends Edge
 
       const nodeToUse = isNode<NodeType>(node) ? node : nodeLookup.get(node.id)!;
       const position = nodeToUse.parentId
-        ? evaluateAbsolutePosition(nodeToUse.position, nodeToUse.parentId, nodeLookup, nodeOrigin)
+        ? evaluateAbsolutePosition(nodeToUse.position, nodeToUse.measured, nodeToUse.parentId, nodeLookup, nodeOrigin)
         : nodeToUse.position;
 
       const nodeWithPosition = {
diff --git a/packages/react/src/hooks/useViewportHelper.ts b/packages/react/src/hooks/useViewportHelper.ts
index ef4f6f38..245fafd7 100644
--- a/packages/react/src/hooks/useViewportHelper.ts
+++ b/packages/react/src/hooks/useViewportHelper.ts
@@ -45,22 +45,23 @@ const useViewportHelper = (): ViewportHelperFunctions => {
         return { x, y, zoom };
       },
       fitView: (options) => {
-        const { nodeLookup, width, height, nodeOrigin, minZoom, maxZoom, panZoom } = store.getState();
+        const { nodeLookup, width, height, minZoom, maxZoom, panZoom } = store.getState();
 
-        return panZoom
-          ? fitView(
-              {
-                nodeLookup,
-                width,
-                height,
-                nodeOrigin,
-                minZoom,
-                maxZoom,
-                panZoom,
-              },
-              options
-            )
-          : false;
+        if (!panZoom) {
+          return false;
+        }
+
+        return fitView(
+          {
+            nodeLookup,
+            width,
+            height,
+            minZoom,
+            maxZoom,
+            panZoom,
+          },
+          options
+        );
       },
       setCenter: (x, y, options) => {
         const { width, height, maxZoom, panZoom } = store.getState();
diff --git a/packages/react/src/store/index.ts b/packages/react/src/store/index.ts
index 29bf5ea5..5ccd7070 100644
--- a/packages/react/src/store/index.ts
+++ b/packages/react/src/store/index.ts
@@ -12,6 +12,7 @@ import {
   EdgeSelectionChange,
   NodeSelectionChange,
   ParentExpandChild,
+  NodeOrigin,
 } from '@xyflow/system';
 
 import { applyEdgeChanges, applyNodeChanges, createSelectionChange, getSelectionChanges } from '../utils/changes';
@@ -26,6 +27,7 @@ const createStore = ({
   width,
   height,
   fitView,
+  nodeOrigin,
 }: {
   nodes?: Node[];
   edges?: Edge[];
@@ -34,10 +36,11 @@ const createStore = ({
   width?: number;
   height?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
 }) =>
   createWithEqualityFn<ReactFlowState>(
     (set, get) => ({
-      ...getInitialState({ nodes, edges, width, height, fitView, defaultNodes, defaultEdges }),
+      ...getInitialState({ nodes, edges, width, height, fitView, nodeOrigin, defaultNodes, defaultEdges }),
       setNodes: (nodes: Node[]) => {
         const { nodeLookup, parentLookup, nodeOrigin, elevateNodesOnSelect } = get();
         // setNodes() is called exclusively in response to user actions:
@@ -98,7 +101,7 @@ const createStore = ({
           return;
         }
 
-        updateAbsolutePositions(nodeLookup, { nodeOrigin });
+        updateAbsolutePositions(nodeLookup, parentLookup, { nodeOrigin });
 
         // we call fitView once initially after all dimensions are set
         let nextFitViewDone = fitViewDone;
@@ -155,8 +158,8 @@ const createStore = ({
         }
 
         if (parentExpandChildren.length > 0) {
-          const { nodeLookup, parentLookup } = get();
-          const parentExpandChanges = handleExpandParent(parentExpandChildren, nodeLookup, parentLookup);
+          const { nodeLookup, parentLookup, nodeOrigin } = get();
+          const parentExpandChanges = handleExpandParent(parentExpandChildren, nodeLookup, parentLookup, nodeOrigin);
           changes.push(...parentExpandChanges);
         }
 
@@ -288,7 +291,7 @@ const createStore = ({
         return panBySystem({ delta, panZoom, transform, translateExtent, width, height });
       },
       fitView: (options?: FitViewOptions): boolean => {
-        const { panZoom, width, height, minZoom, maxZoom, nodeOrigin, nodeLookup } = get();
+        const { panZoom, width, height, minZoom, maxZoom, nodeLookup } = get();
 
         if (!panZoom) {
           return false;
@@ -302,7 +305,6 @@ const createStore = ({
             panZoom,
             minZoom,
             maxZoom,
-            nodeOrigin,
           },
           options
         );
diff --git a/packages/react/src/store/initialState.ts b/packages/react/src/store/initialState.ts
index 1a29e5df..495afd3d 100644
--- a/packages/react/src/store/initialState.ts
+++ b/packages/react/src/store/initialState.ts
@@ -7,6 +7,7 @@ import {
   updateConnectionLookup,
   devWarn,
   getInternalNodesBounds,
+  NodeOrigin,
 } from '@xyflow/system';
 
 import type { Edge, InternalNode, Node, ReactFlowStore } from '../types';
@@ -19,6 +20,7 @@ const getInitialState = ({
   width,
   height,
   fitView,
+  nodeOrigin,
 }: {
   nodes?: Node[];
   edges?: Edge[];
@@ -27,6 +29,7 @@ const getInitialState = ({
   width?: number;
   height?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
 } = {}): ReactFlowStore => {
   const nodeLookup = new Map<string, InternalNode>();
   const parentLookup = new Map();
@@ -34,21 +37,21 @@ const getInitialState = ({
   const edgeLookup = new Map();
   const storeEdges = defaultEdges ?? edges ?? [];
   const storeNodes = defaultNodes ?? nodes ?? [];
+  const storeNodeOrigin = nodeOrigin ?? [0, 0];
 
   updateConnectionLookup(connectionLookup, edgeLookup, storeEdges);
   adoptUserNodes(storeNodes, nodeLookup, parentLookup, {
-    nodeOrigin: [0, 0],
+    nodeOrigin: storeNodeOrigin,
     elevateNodesOnSelect: false,
   });
 
   let transform: Transform = [0, 0, 1];
 
   if (fitView && width && height) {
-    // @todo users nodeOrigin should be used here
     const bounds = getInternalNodesBounds(nodeLookup, {
-      nodeOrigin: [0, 0],
       filter: (node) => !!((node.width || node.initialWidth) && (node.height || node.initialHeight)),
     });
+
     const { x, y, zoom } = getViewportForBounds(bounds, width, height, 0.5, 2, 0.1);
     transform = [x, y, zoom];
   }
@@ -80,7 +83,7 @@ const getInitialState = ({
     domNode: null,
     paneDragging: false,
     noPanClassName: 'nopan',
-    nodeOrigin: [0, 0],
+    nodeOrigin: storeNodeOrigin,
     nodeDragThreshold: 1,
 
     snapGrid: [15, 15],
diff --git a/packages/react/src/types/nodes.ts b/packages/react/src/types/nodes.ts
index a01a894a..71e03036 100644
--- a/packages/react/src/types/nodes.ts
+++ b/packages/react/src/types/nodes.ts
@@ -1,12 +1,5 @@
 import type { CSSProperties, MouseEvent as ReactMouseEvent } from 'react';
-import type {
-  CoordinateExtent,
-  NodeBase,
-  NodeOrigin,
-  OnError,
-  NodeProps as NodePropsBase,
-  InternalNodeBase,
-} from '@xyflow/system';
+import type { CoordinateExtent, NodeBase, OnError, NodeProps as NodePropsBase, InternalNodeBase } from '@xyflow/system';
 
 import { NodeTypes } from './general';
 
@@ -59,7 +52,6 @@ export type NodeWrapperProps<NodeType extends Node> = {
   disableKeyboardA11y: boolean;
   nodeTypes?: NodeTypes;
   nodeExtent?: CoordinateExtent;
-  nodeOrigin: NodeOrigin;
   onError?: OnError;
 };
 
diff --git a/packages/react/src/types/store.ts b/packages/react/src/types/store.ts
index 8ef580b2..ab99ad45 100644
--- a/packages/react/src/types/store.ts
+++ b/packages/react/src/types/store.ts
@@ -26,6 +26,7 @@ import {
   type NodeLookup,
   type NodeChange,
   type EdgeChange,
+  type ParentLookup,
 } from '@xyflow/system';
 
 import type {
@@ -53,7 +54,7 @@ export type ReactFlowStore<NodeType extends Node = Node, EdgeType extends Edge =
   transform: Transform;
   nodes: NodeType[];
   nodeLookup: NodeLookup<InternalNode<NodeType>>;
-  parentLookup: Map<string, InternalNode<NodeType>[]>;
+  parentLookup: ParentLookup<InternalNode<NodeType>>;
   edges: Edge[];
   edgeLookup: EdgeLookup<EdgeType>;
   connectionLookup: ConnectionLookup;
diff --git a/packages/svelte/src/lib/actions/drag/index.ts b/packages/svelte/src/lib/actions/drag/index.ts
index 1405ccd9..f5649a29 100644
--- a/packages/svelte/src/lib/actions/drag/index.ts
+++ b/packages/svelte/src/lib/actions/drag/index.ts
@@ -34,7 +34,7 @@ export default function drag(domNode: Element, params: UseDragParams) {
         nodeExtent: get(store.nodeExtent),
         snapGrid: snapGrid ? snapGrid : [0, 0],
         snapToGrid: !!snapGrid,
-        nodeOrigin: [0, 0],
+        nodeOrigin: get(store.nodeOrigin),
         multiSelectionActive: get(store.multiselectionKeyPressed),
         domNode: get(store.domNode),
         transform: [vp.x, vp.y, vp.zoom],
diff --git a/packages/svelte/src/lib/components/NodeWrapper/NodeWrapper.svelte b/packages/svelte/src/lib/components/NodeWrapper/NodeWrapper.svelte
index 6fe6b648..3c77ddef 100644
--- a/packages/svelte/src/lib/components/NodeWrapper/NodeWrapper.svelte
+++ b/packages/svelte/src/lib/components/NodeWrapper/NodeWrapper.svelte
@@ -31,8 +31,6 @@
   export let isParent: $$Props['isParent'] = false;
   export let positionX: $$Props['positionX'];
   export let positionY: $$Props['positionY'];
-  export let positionOriginX: $$Props['positionOriginX'];
-  export let positionOriginY: $$Props['positionOriginY'];
   export let sourcePosition: $$Props['sourcePosition'] = undefined;
   export let targetPosition: $$Props['targetPosition'] = undefined;
   export let zIndex: $$Props['zIndex'];
@@ -181,7 +179,7 @@
     class:nopan={draggable}
     class:parent={isParent}
     style:z-index={zIndex}
-    style:transform="translate({positionOriginX}px, {positionOriginY}px)"
+    style:transform="translate({positionX}px, {positionY}px)"
     style:visibility={initialized ? 'visible' : 'hidden'}
     style="{style ?? ''};{inlineStyleDimensions.width}{inlineStyleDimensions.height}"
     on:click={onSelectNodeHandler}
diff --git a/packages/svelte/src/lib/components/NodeWrapper/types.ts b/packages/svelte/src/lib/components/NodeWrapper/types.ts
index c0f5ca79..11baf5b9 100644
--- a/packages/svelte/src/lib/components/NodeWrapper/types.ts
+++ b/packages/svelte/src/lib/components/NodeWrapper/types.ts
@@ -28,8 +28,6 @@ export type NodeWrapperProps = Pick<
   type: string;
   positionX: number;
   positionY: number;
-  positionOriginX: number;
-  positionOriginY: number;
   'on:nodeclick'?: (event: MouseEvent) => void;
   resizeObserver?: ResizeObserver | null;
   isParent?: boolean;
diff --git a/packages/svelte/src/lib/components/SvelteFlowProvider/SvelteFlowProvider.svelte b/packages/svelte/src/lib/components/SvelteFlowProvider/SvelteFlowProvider.svelte
index b943ab0a..053373c0 100644
--- a/packages/svelte/src/lib/components/SvelteFlowProvider/SvelteFlowProvider.svelte
+++ b/packages/svelte/src/lib/components/SvelteFlowProvider/SvelteFlowProvider.svelte
@@ -11,12 +11,14 @@
   export let initialWidth: $$Props['initialWidth'] = undefined;
   export let initialHeight: $$Props['initialHeight'] = undefined;
   export let fitView: $$Props['fitView'] = undefined;
+  export let nodeOrigin: $$Props['nodeOrigin'] = undefined;
 
   const store = createStore({
     nodes: initialNodes,
     edges: initialEdges,
     width: initialWidth,
     height: initialHeight,
+    nodeOrigin,
     fitView
   });
 
diff --git a/packages/svelte/src/lib/components/SvelteFlowProvider/types.ts b/packages/svelte/src/lib/components/SvelteFlowProvider/types.ts
index 769588b2..39fa5350 100644
--- a/packages/svelte/src/lib/components/SvelteFlowProvider/types.ts
+++ b/packages/svelte/src/lib/components/SvelteFlowProvider/types.ts
@@ -1,4 +1,5 @@
 import type { Edge, Node } from '$lib/types';
+import type { NodeOrigin } from '@xyflow/system';
 
 export type SvelteFlowProviderProps = {
   initialNodes?: Node[];
@@ -6,4 +7,5 @@ export type SvelteFlowProviderProps = {
   initialWidth?: number;
   initialHeight?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
 };
diff --git a/packages/svelte/src/lib/container/NodeRenderer/NodeRenderer.svelte b/packages/svelte/src/lib/container/NodeRenderer/NodeRenderer.svelte
index 4afc5637..b20329b3 100644
--- a/packages/svelte/src/lib/container/NodeRenderer/NodeRenderer.svelte
+++ b/packages/svelte/src/lib/container/NodeRenderer/NodeRenderer.svelte
@@ -1,6 +1,6 @@
 <script lang="ts">
   import { onDestroy } from 'svelte';
-  import { getPositionWithOrigin, getNodeDimensions, nodeHasDimensions } from '@xyflow/system';
+  import { nodeHasDimensions } from '@xyflow/system';
 
   import { NodeWrapper } from '$lib/components/NodeWrapper';
   import { useStore } from '$lib/store';
@@ -40,13 +40,6 @@
 
 <div class="svelte-flow__nodes">
   {#each $visibleNodes as node (node.id)}
-    {@const nodeDimesions = getNodeDimensions(node)}
-    {@const posOrigin = getPositionWithOrigin({
-      x: node.internals.positionAbsolute.x,
-      y: node.internals.positionAbsolute.y,
-      ...nodeDimesions,
-      origin: node.origin
-    })}
     <NodeWrapper
       {node}
       id={node.id}
@@ -65,8 +58,6 @@
       deletable={node.deletable ?? true}
       positionX={node.internals.positionAbsolute.x}
       positionY={node.internals.positionAbsolute.y}
-      positionOriginX={posOrigin.x ?? 0}
-      positionOriginY={posOrigin.y ?? 0}
       isParent={$parentLookup.has(node.id)}
       style={node.style}
       class={node.class}
diff --git a/packages/svelte/src/lib/container/SvelteFlow/SvelteFlow.svelte b/packages/svelte/src/lib/container/SvelteFlow/SvelteFlow.svelte
index dea8549f..74709680 100644
--- a/packages/svelte/src/lib/container/SvelteFlow/SvelteFlow.svelte
+++ b/packages/svelte/src/lib/container/SvelteFlow/SvelteFlow.svelte
@@ -78,6 +78,7 @@
   export let onconnectend: $$Props['onconnectend'] = undefined;
   export let onbeforedelete: $$Props['onbeforedelete'] = undefined;
   export let oninit: $$Props['oninit'] = undefined;
+  export let nodeOrigin: $$Props['nodeOrigin'] = undefined;
 
   export let defaultMarkerColor = '#b1b1b7';
 
@@ -93,7 +94,14 @@
 
   const store = hasContext(key)
     ? useStore()
-    : createStoreContext({ nodes: get(nodes), edges: get(edges), width, height, fitView });
+    : createStoreContext({
+        nodes: get(nodes),
+        edges: get(edges),
+        width,
+        height,
+        fitView,
+        nodeOrigin
+      });
 
   onMount(() => {
     store.width.set(clientWidth);
@@ -168,7 +176,8 @@
       onconnect,
       onconnectstart,
       onconnectend,
-      onbeforedelete
+      onbeforedelete,
+      nodeOrigin
     };
 
     updateStoreByKeys(store, updatableProps);
diff --git a/packages/svelte/src/lib/container/SvelteFlow/utils.ts b/packages/svelte/src/lib/container/SvelteFlow/utils.ts
index 29e65db4..c7166b0c 100644
--- a/packages/svelte/src/lib/container/SvelteFlow/utils.ts
+++ b/packages/svelte/src/lib/container/SvelteFlow/utils.ts
@@ -70,6 +70,7 @@ export type UpdatableStoreProps = {
   onconnectstart?: UnwrapWritable<SvelteFlowStore['onconnectstart']>;
   onconnectend?: UnwrapWritable<SvelteFlowStore['onconnectend']>;
   onbeforedelete?: UnwrapWritable<SvelteFlowStore['onbeforedelete']>;
+  nodeOrigin?: UnwrapWritable<SvelteFlowStore['nodeOrigin']>;
 };
 
 export function updateStoreByKeys(store: SvelteFlowStore, keys: UpdatableStoreProps) {
diff --git a/packages/svelte/src/lib/plugins/Minimap/Minimap.svelte b/packages/svelte/src/lib/plugins/Minimap/Minimap.svelte
index 2e6a7364..789dc476 100644
--- a/packages/svelte/src/lib/plugins/Minimap/Minimap.svelte
+++ b/packages/svelte/src/lib/plugins/Minimap/Minimap.svelte
@@ -11,7 +11,6 @@
     getBoundsOfRects,
     getInternalNodesBounds,
     getNodeDimensions,
-    getNodePositionWithOrigin,
     nodeHasDimensions,
     type Rect
   } from '@xyflow/system';
@@ -134,11 +133,10 @@
       {#each $nodes as userNode (userNode.id)}
         {@const node = $nodeLookup.get(userNode.id)}
         {#if node && nodeHasDimensions(node)}
-          {@const pos = getNodePositionWithOrigin(node).positionAbsolute}
           {@const nodeDimesions = getNodeDimensions(node)}
           <MinimapNode
-            x={pos.x}
-            y={pos.y}
+            x={node.internals.positionAbsolute.x}
+            y={node.internals.positionAbsolute.y}
             {...nodeDimesions}
             selected={node.selected}
             color={nodeColorFunc?.(node)}
diff --git a/packages/svelte/src/lib/store/index.ts b/packages/svelte/src/lib/store/index.ts
index 715c57b7..21d5cc0e 100644
--- a/packages/svelte/src/lib/store/index.ts
+++ b/packages/svelte/src/lib/store/index.ts
@@ -15,6 +15,7 @@ import {
   type CoordinateExtent,
   type UpdateConnection,
   errorMessages,
+  type NodeOrigin,
   type ConnectionState
 } from '@xyflow/system';
 
@@ -33,15 +34,24 @@ export function createStore({
   edges,
   width,
   height,
-  fitView: fitViewOnCreate
+  fitView: fitViewOnCreate,
+  nodeOrigin
 }: {
   nodes?: Node[];
   edges?: Edge[];
   width?: number;
   height?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
 }): SvelteFlowStore {
-  const store = getInitialStore({ nodes, edges, width, height, fitView: fitViewOnCreate });
+  const store = getInitialStore({
+    nodes,
+    edges,
+    width,
+    height,
+    fitView: fitViewOnCreate,
+    nodeOrigin
+  });
 
   function setNodeTypes(nodeTypes: NodeTypes) {
     store.nodeTypes.set({
@@ -123,6 +133,7 @@ export function createStore({
         }
         case 'position':
           node.position = change.position ?? node.position;
+
           break;
       }
     }
@@ -148,8 +159,7 @@ export function createStore({
         height: get(store.height),
         minZoom: get(store.minZoom),
         maxZoom: get(store.maxZoom),
-        panZoom,
-        nodeOrigin: get(store.nodeOrigin)
+        panZoom
       },
       options
     );
@@ -444,15 +454,17 @@ export function createStoreContext({
   edges,
   width,
   height,
-  fitView
+  fitView,
+  nodeOrigin
 }: {
   nodes?: Node[];
   edges?: Edge[];
   width?: number;
   height?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
 }) {
-  const store = createStore({ nodes, edges, width, height, fitView });
+  const store = createStore({ nodes, edges, width, height, fitView, nodeOrigin });
 
   setContext(key, {
     getStore: () => store
diff --git a/packages/svelte/src/lib/store/initial-store.ts b/packages/svelte/src/lib/store/initial-store.ts
index 073f206c..0c6435c3 100644
--- a/packages/svelte/src/lib/store/initial-store.ts
+++ b/packages/svelte/src/lib/store/initial-store.ts
@@ -6,7 +6,6 @@ import {
   ConnectionLineType,
   devWarn,
   adoptUserNodes,
-  getNodesBounds,
   getViewportForBounds,
   updateConnectionLookup,
   type SelectionRect,
@@ -22,7 +21,9 @@ import {
   type OnConnectStart,
   type OnConnectEnd,
   type NodeLookup,
-  type EdgeLookup
+  type EdgeLookup,
+  type ParentLookup,
+  getInternalNodesBounds
 } from '@xyflow/system';
 
 import DefaultNode from '$lib/components/nodes/DefaultNode.svelte';
@@ -72,18 +73,21 @@ export const getInitialStore = ({
   edges = [],
   width,
   height,
-  fitView
+  fitView,
+  nodeOrigin
 }: {
   nodes?: Node[];
   edges?: Edge[];
   width?: number;
   height?: number;
   fitView?: boolean;
+  nodeOrigin?: NodeOrigin;
 }) => {
   const nodeLookup: NodeLookup = new Map();
   const parentLookup = new Map();
+  const storeNodeOrigin = nodeOrigin ?? [0, 0];
   adoptUserNodes(nodes, nodeLookup, parentLookup, {
-    nodeOrigin: [0, 0],
+    nodeOrigin: storeNodeOrigin,
     elevateNodesOnSelect: false,
     checkEquality: false
   });
@@ -94,20 +98,17 @@ export const getInitialStore = ({
   let viewport: Viewport = { x: 0, y: 0, zoom: 1 };
 
   if (fitView && width && height) {
-    const nodesWithDimensions = nodes.filter(
-      (node) => (node.width && node.height) || (node.initialWidth && node.initialHeight)
-    );
-
-    // @todo users nodeOrigin should be used here
-    const bounds = getNodesBounds(nodesWithDimensions, { nodeOrigin: [0, 0] });
+    const bounds = getInternalNodesBounds(nodeLookup, {
+      filter: (node) => !!((node.width || node.initialWidth) && (node.height || node.initialHeight))
+    });
     viewport = getViewportForBounds(bounds, width, height, 0.5, 2, 0.1);
   }
 
   return {
     flowId: writable<string | null>(null),
-    nodes: createNodesStore(nodes, nodeLookup, parentLookup),
+    nodes: createNodesStore(nodes, nodeLookup, parentLookup, storeNodeOrigin),
     nodeLookup: readable<NodeLookup<InternalNode>>(nodeLookup),
-    parentLookup: readable<Map<string, InternalNode[]>>(parentLookup),
+    parentLookup: readable<ParentLookup<InternalNode>>(parentLookup),
     edgeLookup: readable<EdgeLookup<Edge>>(edgeLookup),
     visibleNodes: readable<InternalNode[]>([]),
     edges: createEdgesStore(edges, connectionLookup, edgeLookup),
@@ -117,7 +118,7 @@ export const getInitialStore = ({
     width: writable<number>(500),
     minZoom: writable<number>(0.5),
     maxZoom: writable<number>(2),
-    nodeOrigin: writable<NodeOrigin>([0, 0]),
+    nodeOrigin: writable<NodeOrigin>(storeNodeOrigin),
     nodeDragThreshold: writable<number>(1),
     nodeExtent: writable<CoordinateExtent>(infiniteExtent),
     translateExtent: writable<CoordinateExtent>(infiniteExtent),
diff --git a/packages/svelte/src/lib/store/utils.ts b/packages/svelte/src/lib/store/utils.ts
index 5fd66cfe..e0b53c46 100644
--- a/packages/svelte/src/lib/store/utils.ts
+++ b/packages/svelte/src/lib/store/utils.ts
@@ -13,7 +13,9 @@ import {
   type PanZoomInstance,
   type ConnectionLookup,
   type EdgeLookup,
-  type NodeLookup
+  type NodeLookup,
+  type ParentLookup,
+  type NodeOrigin
 } from '@xyflow/system';
 
 import type { DefaultEdgeOptions, DefaultNodeOptions, Edge, InternalNode, Node } from '$lib/types';
@@ -128,7 +130,8 @@ export type NodeStoreOptions = {
 export const createNodesStore = (
   nodes: Node[],
   nodeLookup: NodeLookup<InternalNode>,
-  parentLookup: Map<string, InternalNode[]>
+  parentLookup: ParentLookup<InternalNode>,
+  nodeOrigin: NodeOrigin = [0, 0]
 ): {
   subscribe: (this: void, run: Subscriber<Node[]>) => Unsubscriber;
   update: (this: void, updater: Updater<Node[]>) => void;
@@ -144,6 +147,7 @@ export const createNodesStore = (
   const _set = (nds: Node[]): Node[] => {
     adoptUserNodes(nds, nodeLookup, parentLookup, {
       elevateNodesOnSelect,
+      nodeOrigin,
       defaults,
       checkEquality: false
     });
diff --git a/packages/system/src/types/general.ts b/packages/system/src/types/general.ts
index 584d4515..fed3a318 100644
--- a/packages/system/src/types/general.ts
+++ b/packages/system/src/types/general.ts
@@ -7,7 +7,7 @@ import type { ZoomBehavior } from 'd3-zoom';
 import type { Transition } from 'd3-transition';
 
 import type { XYPosition, Rect } from './utils';
-import type { InternalNodeBase, NodeBase, NodeDragItem, NodeOrigin } from './nodes';
+import type { InternalNodeBase, NodeBase, NodeDragItem } from './nodes';
 import type { ConnectingHandle, HandleType } from './handles';
 import { PanZoomInstance } from './panzoom';
 import { EdgeBase } from '..';
@@ -61,7 +61,6 @@ export type FitViewParamsBase<NodeType extends NodeBase> = {
   panZoom: PanZoomInstance;
   minZoom: number;
   maxZoom: number;
-  nodeOrigin?: NodeOrigin;
 };
 
 export type FitViewOptionsBase<NodeType extends NodeBase = NodeBase> = {
diff --git a/packages/system/src/types/nodes.ts b/packages/system/src/types/nodes.ts
index 5f70660b..afe1b3fa 100644
--- a/packages/system/src/types/nodes.ts
+++ b/packages/system/src/types/nodes.ts
@@ -77,6 +77,7 @@ export type InternalNodeBase<NodeType extends NodeBase = NodeBase> = NodeType &
      * Used as an optimization to avoid certain operations. */
     userNode: NodeType;
     handleBounds?: NodeHandleBounds;
+    bounds?: NodeBounds;
   };
 };
 
@@ -153,4 +154,4 @@ export type NodeHandle = Optional<HandleElement, 'width' | 'height'>;
 export type Align = 'center' | 'start' | 'end';
 
 export type NodeLookup<NodeType extends InternalNodeBase = InternalNodeBase> = Map<string, NodeType>;
-export type ParentLookup<NodeType extends InternalNodeBase = InternalNodeBase> = Map<string, NodeType[]>;
+export type ParentLookup<NodeType extends InternalNodeBase = InternalNodeBase> = Map<string, Map<string, NodeType>>;
diff --git a/packages/system/src/utils/dom.ts b/packages/system/src/utils/dom.ts
index 850e6724..4bbc151a 100644
--- a/packages/system/src/utils/dom.ts
+++ b/packages/system/src/utils/dom.ts
@@ -1,4 +1,4 @@
-import type { Transform, XYPosition, SnapGrid, Dimensions, NodeOrigin, HandleElement, Position } from '../types';
+import type { Transform, XYPosition, SnapGrid, Dimensions, HandleElement, Position } from '../types';
 import { snapPosition, pointToRendererPoint } from './general';
 
 export type GetPointerPositionParams = {
@@ -62,8 +62,7 @@ export const getHandleBounds = (
   selector: string,
   nodeElement: HTMLDivElement,
   nodeBounds: DOMRect,
-  zoom: number,
-  nodeOrigin: NodeOrigin = [0, 0]
+  zoom: number
 ): HandleElement[] | null => {
   const handles = nodeElement.querySelectorAll(selector);
 
@@ -71,22 +70,15 @@ export const getHandleBounds = (
     return null;
   }
 
-  const handlesArray = Array.from(handles) as HTMLDivElement[];
-
-  const nodeOffset = {
-    x: nodeBounds.left + nodeBounds.width * nodeOrigin[0],
-    y: nodeBounds.top + nodeBounds.height * nodeOrigin[1],
-  };
-
-  return handlesArray.map((handle): HandleElement => {
+  return Array.from(handles).map((handle): HandleElement => {
     const handleBounds = handle.getBoundingClientRect();
 
     return {
       id: handle.getAttribute('data-handleid'),
       position: handle.getAttribute('data-handlepos') as unknown as Position,
-      x: (handleBounds.left - nodeOffset.x) / zoom,
-      y: (handleBounds.top - nodeOffset.y) / zoom,
-      ...getDimensions(handle),
+      x: (handleBounds.left - nodeBounds.left) / zoom,
+      y: (handleBounds.top - nodeBounds.top) / zoom,
+      ...getDimensions(handle as HTMLDivElement),
     };
   });
 };
diff --git a/packages/system/src/utils/general.ts b/packages/system/src/utils/general.ts
index 34092e08..0513f562 100644
--- a/packages/system/src/utils/general.ts
+++ b/packages/system/src/utils/general.ts
@@ -12,7 +12,7 @@ import type {
   NodeLookup,
 } from '../types';
 import { type Viewport } from '../types';
-import { getNodePositionWithOrigin } from './graph';
+import { getNodePositionWithOrigin, isInternalNodeBase } from './graph';
 
 export const clamp = (val: number, min = 0, max = 1): number => Math.min(Math.max(val, min), max);
 
@@ -68,24 +68,28 @@ export const boxToRect = ({ x, y, x2, y2 }: Box): Rect => ({
 });
 
 export const nodeToRect = (node: InternalNodeBase | NodeBase, nodeOrigin: NodeOrigin = [0, 0]): Rect => {
-  const { x, y } = getNodePositionWithOrigin(node, nodeOrigin).positionAbsolute;
+  const { x, y } = isInternalNodeBase(node)
+    ? node.internals.positionAbsolute
+    : getNodePositionWithOrigin(node, nodeOrigin);
 
   return {
     x,
     y,
-    width: node.measured?.width ?? node.width ?? 0,
-    height: node.measured?.height ?? node.height ?? 0,
+    width: node.measured?.width ?? node.width ?? node.initialWidth ?? 0,
+    height: node.measured?.height ?? node.height ?? node.initialHeight ?? 0,
   };
 };
 
 export const nodeToBox = (node: InternalNodeBase | NodeBase, nodeOrigin: NodeOrigin = [0, 0]): Box => {
-  const { x, y } = getNodePositionWithOrigin(node, nodeOrigin).positionAbsolute;
+  const { x, y } = isInternalNodeBase(node)
+    ? node.internals.positionAbsolute
+    : getNodePositionWithOrigin(node, nodeOrigin);
 
   return {
     x,
     y,
-    x2: x + (node.measured?.width ?? node.width ?? 0),
-    y2: y + (node.measured?.height ?? node.height ?? 0),
+    x2: x + (node.measured?.width ?? node.width ?? node.initialWidth ?? 0),
+    y2: y + (node.measured?.height ?? node.height ?? node.initialHeight ?? 0),
   };
 };
 
@@ -114,29 +118,6 @@ export const devWarn = (id: string, message: string) => {
   }
 };
 
-export const getPositionWithOrigin = ({
-  x,
-  y,
-  width,
-  height,
-  origin = [0, 0],
-}: {
-  x: number;
-  y: number;
-  width: number;
-  height: number;
-  origin?: NodeOrigin;
-}): XYPosition => {
-  if (!width || !height || origin[0] < 0 || origin[1] < 0 || origin[0] > 1 || origin[1] > 1) {
-    return { x, y };
-  }
-
-  return {
-    x: x - width * origin[0],
-    y: y - height * origin[1],
-  };
-};
-
 export const snapPosition = (position: XYPosition, snapGrid: SnapGrid = [1, 1]): XYPosition => {
   return {
     x: snapGrid[0] * Math.round(position.x / snapGrid[0]),
@@ -239,9 +220,10 @@ export function nodeHasDimensions<NodeType extends NodeBase = NodeBase>(node: No
  */
 export function evaluateAbsolutePosition(
   position: XYPosition,
+  dimensions: { width?: number; height?: number } = { width: 0, height: 0 },
   parentId: string,
   nodeLookup: NodeLookup,
-  nodeOrigin: NodeOrigin = [0, 0]
+  nodeOrigin: NodeOrigin
 ): XYPosition {
   let nextParentId: string | undefined = parentId;
   const positionAbsolute = { ...position };
@@ -252,10 +234,8 @@ export function evaluateAbsolutePosition(
 
     if (parent) {
       const origin = parent.origin || nodeOrigin;
-      const xOffset = (parent.measured.width ?? 0) * origin[0];
-      const yOffset = (parent.measured.height ?? 0) * origin[1];
-      positionAbsolute.x += parent.position.x - xOffset;
-      positionAbsolute.y += parent.position.y - yOffset;
+      positionAbsolute.x += parent.internals.positionAbsolute.x - (dimensions.width ?? 0) * origin[0];
+      positionAbsolute.y += parent.internals.positionAbsolute.y - (dimensions.height ?? 0) * origin[1];
     }
   }
 
diff --git a/packages/system/src/utils/graph.ts b/packages/system/src/utils/graph.ts
index 6a4715b8..d09fe1ef 100644
--- a/packages/system/src/utils/graph.ts
+++ b/packages/system/src/utils/graph.ts
@@ -106,25 +106,15 @@ export const getIncomers = <NodeType extends NodeBase = NodeBase, EdgeType exten
   return nodes.filter((n) => incomersIds.has(n.id));
 };
 
-export const getNodePositionWithOrigin = (
-  node: InternalNodeBase | NodeBase,
-  nodeOrigin: NodeOrigin = [0, 0]
-): { position: XYPosition; positionAbsolute: XYPosition } => {
+export const getNodePositionWithOrigin = (node: NodeBase, nodeOrigin: NodeOrigin = [0, 0]): XYPosition => {
   const { width, height } = getNodeDimensions(node);
-  const positionAbsolute = 'internals' in node ? node.internals.positionAbsolute : node.position;
-  const origin = node.origin || nodeOrigin;
+  const origin = node.origin ?? nodeOrigin;
   const offsetX = width * origin[0];
   const offsetY = height * origin[1];
 
   return {
-    position: {
-      x: node.position.x - offsetX,
-      y: node.position.y - offsetY,
-    },
-    positionAbsolute: {
-      x: positionAbsolute.x - offsetX,
-      y: positionAbsolute.y - offsetY,
-    },
+    x: node.position.x - offsetX,
+    y: node.position.y - offsetY,
   };
 };
 
@@ -157,7 +147,6 @@ export const getNodesBounds = (nodes: NodeBase[], params: GetNodesBoundsParams =
 };
 
 export type GetInternalNodesBoundsParams<NodeType> = {
-  nodeOrigin?: NodeOrigin;
   useRelativePosition?: boolean;
   filter?: (node: NodeType) => boolean;
 };
@@ -168,9 +157,7 @@ export type GetInternalNodesBoundsParams<NodeType> = {
  */
 export const getInternalNodesBounds = <NodeType extends InternalNodeBase | NodeDragItem>(
   nodeLookup: Map<string, NodeType>,
-  params: GetInternalNodesBoundsParams<NodeType> = {
-    nodeOrigin: [0, 0],
-  }
+  params: GetInternalNodesBoundsParams<NodeType> = {}
 ): Rect => {
   if (nodeLookup.size === 0) {
     return { x: 0, y: 0, width: 0, height: 0 };
@@ -179,8 +166,8 @@ export const getInternalNodesBounds = <NodeType extends InternalNodeBase | NodeD
   let box = { x: Infinity, y: Infinity, x2: -Infinity, y2: -Infinity };
 
   nodeLookup.forEach((node) => {
-    if (params.filter == undefined || params.filter(node)) {
-      const nodeBox = nodeToBox(node as InternalNodeBase, params.nodeOrigin);
+    if (params.filter === undefined || params.filter(node)) {
+      const nodeBox = nodeToBox(node as InternalNodeBase);
       box = getBoundsOfBoxes(box, nodeBox);
     }
   });
@@ -194,8 +181,7 @@ export const getNodesInside = <NodeType extends NodeBase = NodeBase>(
   [tx, ty, tScale]: Transform = [0, 0, 1],
   partially = false,
   // set excludeNonSelectableNodes if you want to pay attention to the nodes "selectable" attribute
-  excludeNonSelectableNodes = false,
-  nodeOrigin: NodeOrigin = [0, 0]
+  excludeNonSelectableNodes = false
 ): InternalNodeBase<NodeType>[] => {
   const paneRect = {
     ...pointToRendererPoint(rect, [tx, ty, tScale]),
@@ -214,7 +200,7 @@ export const getNodesInside = <NodeType extends NodeBase = NodeBase>(
       continue;
     }
 
-    const overlappingArea = getOverlappingArea(paneRect, nodeToRect(node, nodeOrigin));
+    const overlappingArea = getOverlappingArea(paneRect, nodeToRect(node));
     const notInitialized = width === null || height === null;
 
     const partiallyVisible = partially && overlappingArea > 0;
@@ -248,22 +234,22 @@ export const getConnectedEdges = <NodeType extends NodeBase = NodeBase, EdgeType
 };
 
 export function fitView<Params extends FitViewParamsBase<NodeBase>, Options extends FitViewOptionsBase<NodeBase>>(
-  { nodeLookup, width, height, panZoom, minZoom, maxZoom, nodeOrigin = [0, 0] }: Params,
+  { nodeLookup, width, height, panZoom, minZoom, maxZoom }: Params,
   options?: Options
 ) {
-  const filteredNodes: InternalNodeBase[] = [];
+  const filteredNodes: Map<string, InternalNodeBase> = new Map();
   const optionNodeIds = options?.nodes ? new Set(options.nodes.map((node) => node.id)) : null;
 
   nodeLookup.forEach((n) => {
     const isVisible = n.measured.width && n.measured.height && (options?.includeHiddenNodes || !n.hidden);
 
     if (isVisible && (!optionNodeIds || optionNodeIds.has(n.id))) {
-      filteredNodes.push(n);
+      filteredNodes.set(n.id, n);
     }
   });
 
-  if (filteredNodes.length > 0) {
-    const bounds = getNodesBounds(filteredNodes, { nodeOrigin });
+  if (filteredNodes.size > 0) {
+    const bounds = getInternalNodesBounds(filteredNodes);
 
     const viewport = getViewportForBounds(
       bounds,
@@ -323,9 +309,8 @@ export function calculateNodePosition<NodeType extends NodeBase>({
 }): { position: XYPosition; positionAbsolute: XYPosition } {
   const node = nodeLookup.get(nodeId)!;
   const parentNode = node.parentId ? nodeLookup.get(node.parentId) : undefined;
-  const { x: parentX, y: parentY } = parentNode
-    ? getNodePositionWithOrigin(parentNode, parentNode.origin || nodeOrigin).positionAbsolute
-    : { x: 0, y: 0 };
+  const { x: parentX, y: parentY } = parentNode ? parentNode.internals.positionAbsolute : { x: 0, y: 0 };
+  const origin = node.origin ?? nodeOrigin;
 
   let currentExtent = clampNodeExtent(node, node.extent || nodeExtent);
 
@@ -339,13 +324,9 @@ export function calculateNodePosition<NodeType extends NodeBase>({
       const parentHeight = parentNode.measured.height;
 
       if (nodeWidth && nodeHeight && parentWidth && parentHeight) {
-        const currNodeOrigin = node.origin || nodeOrigin;
-        const extentX = parentX + nodeWidth * currNodeOrigin[0];
-        const extentY = parentY + nodeHeight * currNodeOrigin[1];
-
         currentExtent = [
-          [extentX, extentY],
-          [extentX + parentWidth - nodeWidth, extentY + parentHeight - nodeHeight],
+          [parentX, parentY],
+          [parentX + parentWidth - nodeWidth, parentY + parentHeight - nodeHeight],
         ];
       }
     }
@@ -362,8 +343,9 @@ export function calculateNodePosition<NodeType extends NodeBase>({
 
   return {
     position: {
-      x: positionAbsolute.x - parentX,
-      y: positionAbsolute.y - parentY,
+      // TODO: is there a better way to do this?
+      x: positionAbsolute.x - parentX + node.measured.width! * origin[0],
+      y: positionAbsolute.y - parentY + node.measured.height! * origin[1],
     },
     positionAbsolute,
   };
diff --git a/packages/system/src/utils/store.ts b/packages/system/src/utils/store.ts
index 14918a11..2abebcb9 100644
--- a/packages/system/src/utils/store.ts
+++ b/packages/system/src/utils/store.ts
@@ -6,7 +6,6 @@ import {
   PanZoomInstance,
   Transform,
   XYPosition,
-  XYZPosition,
   ConnectionLookup,
   EdgeBase,
   EdgeLookup,
@@ -22,48 +21,28 @@ import { getBoundsOfRects, getNodeDimensions, isNumeric, nodeToRect } from './ge
 import { getNodePositionWithOrigin } from './graph';
 import { ParentExpandChild } from './types';
 
+const defaultOptions = {
+  nodeOrigin: [0, 0] as NodeOrigin,
+  elevateNodesOnSelect: true,
+  defaults: {},
+};
+const adoptUserNodesDefaultOptions = {
+  ...defaultOptions,
+  checkEquality: true,
+};
+
 export function updateAbsolutePositions<NodeType extends NodeBase>(
-  nodeLookup: Map<string, InternalNodeBase<NodeType>>,
-  options: UpdateNodesOptions<NodeType> = {
-    nodeOrigin: [0, 0] as NodeOrigin,
-    elevateNodesOnSelect: true,
-    defaults: {},
-  }
+  nodeLookup: NodeLookup<InternalNodeBase<NodeType>>,
+  parentLookup: ParentLookup<InternalNodeBase<NodeType>>,
+  options?: UpdateNodesOptions<NodeType>
 ) {
-  const selectedNodeZ: number = options?.elevateNodesOnSelect ? 1000 : 0;
-
-  for (const [, node] of nodeLookup) {
-    const parentId = node.parentId;
-
-    if (!parentId) {
+  const _options = { ...defaultOptions, ...options };
+  for (const node of nodeLookup.values()) {
+    if (!node.parentId) {
       continue;
     }
 
-    if (!nodeLookup.has(parentId)) {
-      throw new Error(`Parent node ${parentId} not found`);
-    }
-
-    const parentNode = nodeLookup.get(parentId);
-    const { x, y, z } = calculateXYZPosition(
-      node,
-      nodeLookup,
-      {
-        ...node.position,
-        z: (isNumeric(node.zIndex) ? node.zIndex : 0) + (node.selected ? selectedNodeZ : 0),
-      },
-      parentNode?.origin ?? options.nodeOrigin
-    );
-
-    const currPosition = node.internals.positionAbsolute;
-    const positionChanged = x !== currPosition.x || y !== currPosition.y;
-
-    if (positionChanged || z !== node.internals.z) {
-      node.internals = {
-        ...node.internals,
-        positionAbsolute: positionChanged ? { x, y } : currPosition,
-        z,
-      };
-    }
+    updateChildPosition(node, nodeLookup, parentLookup, _options);
   }
 }
 
@@ -76,38 +55,33 @@ type UpdateNodesOptions<NodeType extends NodeBase> = {
 
 export function adoptUserNodes<NodeType extends NodeBase>(
   nodes: NodeType[],
-  nodeLookup: Map<string, InternalNodeBase<NodeType>>,
-  parentLookup: Map<string, InternalNodeBase<NodeType>[]>,
-  options: UpdateNodesOptions<NodeType> = {
-    nodeOrigin: [0, 0] as NodeOrigin,
-    elevateNodesOnSelect: true,
-    defaults: {},
-    checkEquality: true,
-  }
+  nodeLookup: NodeLookup<InternalNodeBase<NodeType>>,
+  parentLookup: ParentLookup<InternalNodeBase<NodeType>>,
+  options?: UpdateNodesOptions<NodeType>
 ) {
+  const _options = { ...adoptUserNodesDefaultOptions, ...options };
   const tmpLookup = new Map(nodeLookup);
   nodeLookup.clear();
   parentLookup.clear();
 
   const selectedNodeZ: number = options?.elevateNodesOnSelect ? 1000 : 0;
 
-  nodes.forEach((userNode) => {
+  for (const userNode of nodes) {
     let internalNode = tmpLookup.get(userNode.id);
-
-    if (options.checkEquality && userNode === internalNode?.internals.userNode) {
+    if (_options.checkEquality && userNode === internalNode?.internals.userNode) {
       nodeLookup.set(userNode.id, internalNode);
     } else {
       internalNode = {
-        ...options.defaults,
+        ..._options.defaults,
         ...userNode,
         measured: {
           width: userNode.measured?.width,
           height: userNode.measured?.height,
         },
         internals: {
-          positionAbsolute: userNode.position,
+          positionAbsolute: getNodePositionWithOrigin(userNode, _options.nodeOrigin),
           handleBounds: internalNode?.internals.handleBounds,
-          z: (isNumeric(userNode.zIndex) ? userNode.zIndex : 0) + (userNode.selected ? selectedNodeZ : 0),
+          z: calculateZ(userNode, selectedNodeZ),
           userNode,
         },
       };
@@ -115,50 +89,75 @@ export function adoptUserNodes<NodeType extends NodeBase>(
     }
 
     if (userNode.parentId) {
-      const childNodes = parentLookup.get(userNode.parentId);
-      if (childNodes) {
-        childNodes.push(internalNode);
-      } else {
-        parentLookup.set(userNode.parentId, [internalNode]);
-      }
+      updateChildPosition(internalNode, nodeLookup, parentLookup, options);
     }
-  });
-
-  if (parentLookup.size > 0) {
-    updateAbsolutePositions(nodeLookup, options);
   }
 }
 
-function calculateXYZPosition<NodeType extends NodeBase>(
-  node: NodeType,
-  nodeLookup: Map<string, InternalNodeBase<NodeType>>,
-  result: XYZPosition,
-  nodeOrigin: NodeOrigin = [0, 0]
-): XYZPosition {
-  if (!node.parentId) {
-    return result;
+function updateChildPosition<NodeType extends NodeBase>(
+  node: InternalNodeBase<NodeType>,
+  nodeLookup: NodeLookup<InternalNodeBase<NodeType>>,
+  parentLookup: ParentLookup<InternalNodeBase<NodeType>>,
+  options?: UpdateNodesOptions<NodeType>
+) {
+  const _options = { ...defaultOptions, ...options };
+
+  const parentId = node.parentId!;
+  const parentNode = nodeLookup.get(parentId);
+  if (!parentNode) {
+    throw new Error(`Parent node ${parentId} not found`);
   }
 
-  const parent = nodeLookup.get(node.parentId)!;
-  const parentPosition = getNodePositionWithOrigin(parent, nodeOrigin).position;
+  // update the parentLookup
+  const childNodes = parentLookup.get(parentId);
+  if (childNodes) {
+    childNodes.set(node.id, node);
+  } else {
+    parentLookup.set(parentId, new Map([[node.id, node]]));
+  }
 
-  return calculateXYZPosition(
-    parent,
-    nodeLookup,
-    {
-      x: (result.x ?? 0) + parentPosition.x,
-      y: (result.y ?? 0) + parentPosition.y,
-      z: (parent.internals.z ?? 0) > (result.z ?? 0) ? parent.internals.z ?? 0 : result.z ?? 0,
-    },
-    parent.origin || nodeOrigin
-  );
+  const selectedNodeZ: number = options?.elevateNodesOnSelect ? 1000 : 0;
+
+  const { x, y, z } = calculateChildXYZ(node, parentNode, _options.nodeOrigin!, selectedNodeZ);
+
+  const currPosition = node.internals.positionAbsolute;
+  const positionChanged = x !== currPosition.x || y !== currPosition.y;
+
+  if (positionChanged || z !== node.internals.z) {
+    node.internals = {
+      ...node.internals,
+      positionAbsolute: positionChanged ? { x, y } : currPosition,
+      z,
+    };
+  }
+}
+
+function calculateZ(node: NodeBase, selectedNodeZ: number) {
+  return (isNumeric(node.zIndex) ? node.zIndex : 0) + (node.selected ? selectedNodeZ : 0);
+}
+
+function calculateChildXYZ<NodeType extends NodeBase>(
+  childNode: InternalNodeBase<NodeType>,
+  parentNode: InternalNodeBase<NodeType>,
+  nodeOrigin: NodeOrigin,
+  selectedNodeZ: number
+) {
+  const position = getNodePositionWithOrigin(childNode, nodeOrigin);
+  const childZ = calculateZ(childNode, selectedNodeZ);
+  const parentZ = parentNode.internals.z ?? 0;
+
+  return {
+    x: parentNode.internals.positionAbsolute.x + position.x,
+    y: parentNode.internals.positionAbsolute.y + position.y,
+    z: parentZ > childZ ? parentZ : childZ,
+  };
 }
 
 export function handleExpandParent(
   children: ParentExpandChild[],
   nodeLookup: NodeLookup,
   parentLookup: ParentLookup,
-  nodeOrigin?: NodeOrigin
+  nodeOrigin: NodeOrigin = [0, 0]
 ): (NodeDimensionChange | NodePositionChange)[] {
   const changes: (NodeDimensionChange | NodePositionChange)[] = [];
   const parentExpansions = new Map<string, { expandedRect: Rect; parent: InternalNodeBase }>();
@@ -170,36 +169,45 @@ export function handleExpandParent(
       continue;
     }
 
-    const parentRect =
-      parentExpansions.get(child.parentId)?.expandedRect ?? nodeToRect(parent, parent.origin ?? nodeOrigin);
+    const parentRect = parentExpansions.get(child.parentId)?.expandedRect ?? nodeToRect(parent);
     const expandedRect = getBoundsOfRects(parentRect, child.rect);
+
     parentExpansions.set(child.parentId, { expandedRect, parent });
   }
 
   if (parentExpansions.size > 0) {
     parentExpansions.forEach(({ expandedRect, parent }, parentId) => {
       // determine the position & dimensions of the parent
-      const { position } = getNodePositionWithOrigin(parent, parent.origin);
+      const positionAbsolute = parent.internals.positionAbsolute;
       const dimensions = getNodeDimensions(parent);
+      const origin = parent.origin ?? nodeOrigin;
 
-      // determine how much the parent expands by moving the position
-      const xChange = expandedRect.x < position.x ? Math.round(Math.abs(position.x - expandedRect.x)) : 0;
-      const yChange = expandedRect.y < position.y ? Math.round(Math.abs(position.y - expandedRect.y)) : 0;
+      // determine how much the parent expands in width and position
+      const xChange =
+        expandedRect.x < positionAbsolute.x ? Math.round(Math.abs(positionAbsolute.x - expandedRect.x)) : 0;
+      const yChange =
+        expandedRect.y < positionAbsolute.y ? Math.round(Math.abs(positionAbsolute.y - expandedRect.y)) : 0;
 
-      if (xChange > 0 || yChange > 0) {
+      const newWidth = Math.max(dimensions.width, Math.round(expandedRect.width));
+      const newHeight = Math.max(dimensions.height, Math.round(expandedRect.height));
+
+      const widthChange = (newWidth - dimensions.width) * origin[0];
+      const heightChange = (newHeight - dimensions.height) * origin[1];
+
+      // We need to correct the position of the parent node if the origin is not [0,0]
+      if (xChange > 0 || yChange > 0 || widthChange || heightChange) {
         changes.push({
           id: parentId,
           type: 'position',
           position: {
-            x: position.x - xChange,
-            y: position.y - yChange,
+            x: parent.position.x - xChange + widthChange,
+            y: parent.position.y - yChange + heightChange,
           },
         });
 
         // We move all child nodes in the oppsite direction
         // so the x,y changes of the parent do not move the children
-        const childNodes = parentLookup.get(parentId);
-        childNodes?.forEach((childNode) => {
+        parentLookup.get(parentId)?.forEach((childNode) => {
           if (!children.some((child) => child.id === childNode.id)) {
             changes.push({
               id: childNode.id,
@@ -213,14 +221,15 @@ export function handleExpandParent(
         });
       }
 
-      if (dimensions.width < expandedRect.width || dimensions.height < expandedRect.height) {
+      // We need to correct the dimensions of the parent node if the origin is not [0,0]
+      if (dimensions.width < expandedRect.width || dimensions.height < expandedRect.height || xChange || yChange) {
         changes.push({
           id: parentId,
           type: 'dimensions',
           setAttributes: true,
           dimensions: {
-            width: Math.max(dimensions.width, Math.round(expandedRect.width)),
-            height: Math.max(dimensions.height, Math.round(expandedRect.height)),
+            width: newWidth + (xChange ? origin[0] * xChange - widthChange : 0),
+            height: newHeight + (yChange ? origin[1] * yChange - heightChange : 0),
           },
         });
       }
@@ -250,16 +259,19 @@ export function updateNodeInternals<NodeType extends InternalNodeBase>(
   // in this array we collect nodes, that might trigger changes (like expanding parent)
   const parentExpandChildren: ParentExpandChild[] = [];
 
-  updates.forEach((update) => {
+  for (const update of updates.values()) {
     const node = nodeLookup.get(update.id);
+    if (!node) {
+      continue;
+    }
 
-    if (node?.hidden) {
+    if (node.hidden) {
       node.internals = {
         ...node.internals,
         handleBounds: undefined,
       };
       updatedInternals = true;
-    } else if (node) {
+    } else {
       const dimensions = getDimensions(update.nodeElement);
       const dimensionChanged = node.measured.width !== dimensions.width || node.measured.height !== dimensions.height;
       const doUpdate = !!(
@@ -270,14 +282,19 @@ export function updateNodeInternals<NodeType extends InternalNodeBase>(
 
       if (doUpdate) {
         const nodeBounds = update.nodeElement.getBoundingClientRect();
+
         node.measured = dimensions;
         node.internals = {
           ...node.internals,
+          positionAbsolute: getNodePositionWithOrigin(node, nodeOrigin),
           handleBounds: {
-            source: getHandleBounds('.source', update.nodeElement, nodeBounds, zoom, node.origin || nodeOrigin),
-            target: getHandleBounds('.target', update.nodeElement, nodeBounds, zoom, node.origin || nodeOrigin),
+            source: getHandleBounds('.source', update.nodeElement, nodeBounds, zoom),
+            target: getHandleBounds('.target', update.nodeElement, nodeBounds, zoom),
           },
         };
+        if (node.parentId) {
+          updateChildPosition(node, nodeLookup, parentLookup, { nodeOrigin });
+        }
 
         updatedInternals = true;
 
@@ -298,7 +315,7 @@ export function updateNodeInternals<NodeType extends InternalNodeBase>(
         }
       }
     }
-  });
+  }
 
   if (parentExpandChildren.length > 0) {
     const parentExpandChanges = handleExpandParent(parentExpandChildren, nodeLookup, parentLookup, nodeOrigin);
diff --git a/packages/system/src/xydrag/XYDrag.ts b/packages/system/src/xydrag/XYDrag.ts
index 365f20ef..0e89c1c6 100644
--- a/packages/system/src/xydrag/XYDrag.ts
+++ b/packages/system/src/xydrag/XYDrag.ts
@@ -124,13 +124,12 @@ export function XYDrag<OnNodeDrag extends (e: any, nodes: any, node: any) => voi
       let nodesBox: Box = { x: 0, y: 0, x2: 0, y2: 0 };
 
       if (dragItems.size > 1 && nodeExtent) {
-        const rect = getInternalNodesBounds(dragItems, { nodeOrigin });
+        const rect = getInternalNodesBounds(dragItems);
         nodesBox = rectToBox(rect);
       }
 
       for (const [id, dragItem] of dragItems) {
         let nextPosition = { x: x - dragItem.distance.x, y: y - dragItem.distance.y };
-
         if (snapToGrid) {
           nextPosition = snapPosition(nextPosition, snapGrid);
         }
diff --git a/packages/system/src/xyresizer/XYResizer.ts b/packages/system/src/xyresizer/XYResizer.ts
index 5188a424..c9dae4aa 100644
--- a/packages/system/src/xyresizer/XYResizer.ts
+++ b/packages/system/src/xyresizer/XYResizer.ts
@@ -3,7 +3,15 @@ import { select } from 'd3-selection';
 
 import { getControlDirection, getDimensionsAfterResize, getResizeDirection } from './utils';
 import { getPointerPosition } from '../utils';
-import type { CoordinateExtent, NodeBase, NodeLookup, NodeOrigin, Transform, XYPosition } from '../types';
+import type {
+  CoordinateExtent,
+  InternalNodeBase,
+  NodeBase,
+  NodeLookup,
+  NodeOrigin,
+  Transform,
+  XYPosition,
+} from '../types';
 import type { OnResize, OnResizeEnd, OnResizeStart, ResizeDragEvent, ShouldResize, ControlPosition } from './types';
 
 const initPrevValues = { width: 0, height: 0, x: 0, y: 0 };
@@ -100,9 +108,9 @@ export function XYResizer({ domNode, nodeId, getStoreItems, onChange, onEnd }: X
 
     const controlDirection = getControlDirection(controlPosition);
 
-    let node: NodeBase | undefined = undefined;
+    let node: InternalNodeBase | undefined = undefined;
     let childNodes: XYResizerChildChange[] = [];
-    let parentNode: NodeBase | undefined = undefined; // Needed to fix expandParent
+    let parentNode: InternalNodeBase | undefined = undefined; // Needed to fix expandParent
     let parentExtent: CoordinateExtent | undefined = undefined;
     let childExtent: CoordinateExtent | undefined = undefined;
 
@@ -118,8 +126,8 @@ export function XYResizer({ domNode, nodeId, getStoreItems, onChange, onEnd }: X
         const { xSnapped, ySnapped } = getPointerPosition(event.sourceEvent, { transform, snapGrid, snapToGrid });
 
         prevValues = {
-          width: node.measured?.width ?? 0,
-          height: node.measured?.height ?? 0,
+          width: node.measured.width ?? 0,
+          height: node.measured.height ?? 0,
           x: node.position.x ?? 0,
           y: node.position.y ?? 0,
         };
@@ -132,11 +140,10 @@ export function XYResizer({ domNode, nodeId, getStoreItems, onChange, onEnd }: X
         };
 
         parentNode = undefined;
-        if (node.extent === 'parent' || node.expandParent) {
-          parentNode = nodeLookup.get(node.parentId!);
-          if (parentNode && node.extent === 'parent') {
-            parentExtent = nodeToParentExtent(parentNode);
-          }
+
+        if (node.parentId && (node.extent === 'parent' || node.expandParent)) {
+          parentNode = nodeLookup.get(node.parentId);
+          parentExtent = parentNode && node.extent === 'parent' ? nodeToParentExtent(parentNode) : undefined;
         }
 
         // Collect all child nodes to correct their relative positions when top/left changes
@@ -153,7 +160,7 @@ export function XYResizer({ domNode, nodeId, getStoreItems, onChange, onEnd }: X
             });
 
             if (child.extent === 'parent' || child.expandParent) {
-              const extent = nodeToChildExtent(child, node!, child.origin ?? nodeOrigin);
+              const extent = nodeToChildExtent(child, node, child.origin ?? nodeOrigin);
 
               if (childExtent) {
                 childExtent = [
@@ -202,26 +209,15 @@ export function XYResizer({ domNode, nodeId, getStoreItems, onChange, onEnd }: X
           return;
         }
 
-        if (isXPosChange || isYPosChange || nodeOrigin[0] === 1 || nodeOrigin[1] == 1) {
+        if (isXPosChange || isYPosChange || nodeOrigin[0] === 1 || nodeOrigin[1] === 1) {
           change.x = isXPosChange ? x : prevValues.x;
           change.y = isYPosChange ? y : prevValues.y;
 
           prevValues.x = change.x;
           prevValues.y = change.y;
 
-          // Fix expandParent when resizing from top/left
-          if (parentNode && node.expandParent) {
-            if (change.x && change.x < 0) {
-              prevValues.x = 0;
-              startValues.x = startValues.x - change.x;
-            }
-
-            if (change.y && change.y < 0) {
-              prevValues.y = 0;
-              startValues.y = startValues.y - change.y;
-            }
-          }
-
+          // when top/left changes, correct the relative positions of child nodes
+          // so that they stay in the same position
           if (childNodes.length > 0) {
             const xChange = x - prevX;
             const yChange = y - prevY;
@@ -243,6 +239,21 @@ export function XYResizer({ domNode, nodeId, getStoreItems, onChange, onEnd }: X
           prevValues.height = change.height;
         }
 
+        // Fix expandParent when resizing from top/left
+        if (parentNode && node.expandParent) {
+          const xLimit = nodeOrigin[0] * (change.width ?? 0);
+          if (change.x && change.x < xLimit) {
+            prevValues.x = xLimit;
+            startValues.x = startValues.x - (change.x - xLimit);
+          }
+
+          const yLimit = nodeOrigin[1] * (change.height ?? 0);
+          if (change.y && change.y < yLimit) {
+            prevValues.y = yLimit;
+            startValues.y = startValues.y - (change.y - yLimit);
+          }
+        }
+
         const direction = getResizeDirection({
           width: prevValues.width,
           prevWidth,