diff --git a/examples/react/src/App/routes.ts b/examples/react/src/App/routes.ts
index 6dffe3b0..28c9e8cc 100644
--- a/examples/react/src/App/routes.ts
+++ b/examples/react/src/App/routes.ts
@@ -53,6 +53,7 @@ import UseHandleConnections from '../examples/UseHandleConnections';
 import AddNodeOnEdgeDrop from '../examples/AddNodeOnEdgeDrop';
 import DevTools from '../examples/DevTools';
 import Redux from '../examples/Redux';
+import MovingHandles from '../examples/MovingHandles';
 
 export interface IRoute {
   name: string;
@@ -206,6 +207,11 @@ const routes: IRoute[] = [
     path: 'multi-setnodes',
     component: MultiSetNodes,
   },
+  {
+    name: 'Moving Handles',
+    path: 'moving-handles',
+    component: MovingHandles,
+  },
   {
     name: 'Multi Flows',
     path: 'multiflows',
diff --git a/examples/react/src/examples/EasyConnect/CustomNode.tsx b/examples/react/src/examples/EasyConnect/CustomNode.tsx
index 03726da2..803f7b9e 100644
--- a/examples/react/src/examples/EasyConnect/CustomNode.tsx
+++ b/examples/react/src/examples/EasyConnect/CustomNode.tsx
@@ -2,9 +2,7 @@ import { Handle, NodeProps, Position, useConnection } from '@xyflow/react';
 
 export default function CustomNode({ id }: NodeProps) {
   const connection = useConnection();
-
   const isTarget = connection.inProgress && connection.fromNode.id !== id;
-
   const label = isTarget ? 'Drop here' : 'Drag to connect';
 
   return (
@@ -17,12 +15,12 @@ export default function CustomNode({ id }: NodeProps) {
         }}
       >
         {/* If handles are conditionally rendered and not present initially, you need to update the node internals https://reactflow.dev/docs/api/hooks/use-update-node-internals/ */}
-        {/* In this case we don't need to use useUpdateNodeInternals, since !connection.inProgress is true at the beginning and all handles are rendered initially. */}
-        {!connection.inProgress && <Handle className="customHandle" position={Position.Right} type="source" id="src" />}
-
+        {/* In this case we don't need to use useUpdateNodeInternals, since !isConnecting is true at the beginning and all handles are rendered initially. */}
+        {!connection.inProgress && <Handle className="customHandle" position={Position.Right} type="source" />}
         {/* We want to disable the target handle, if the connection was started from this node */}
-        {/* {(!connection.inProgress || isTarget) && ( */}
-        <Handle className="customHandle" position={Position.Left} type="target" isConnectableStart={false} id="trgt" />
+        {(!connection.inProgress || isTarget) && (
+          <Handle className="customHandle" position={Position.Left} type="target" isConnectableStart={false} />
+        )}
         {label}
       </div>
     </div>
diff --git a/examples/react/src/examples/MovingHandles/MovingHandleNode.tsx b/examples/react/src/examples/MovingHandles/MovingHandleNode.tsx
new file mode 100644
index 00000000..bef0bec9
--- /dev/null
+++ b/examples/react/src/examples/MovingHandles/MovingHandleNode.tsx
@@ -0,0 +1,57 @@
+import React, { memo, CSSProperties } from 'react';
+import { Handle, Position, NodeProps, useConnection } from '@xyflow/react';
+
+import type { MovingHandleNode } from '.';
+
+const sourceHandleStyle: CSSProperties = {
+  position: 'relative',
+  transform: 'translate(-50%, 0)',
+  top: 0,
+  transition: 'transform 0.5s',
+};
+
+function MovingHandleNode({}: NodeProps<MovingHandleNode>) {
+  const connection = useConnection();
+
+  return (
+    <>
+      <div
+        style={{
+          display: 'flex',
+          flexDirection: 'column',
+          position: 'absolute',
+          left: 0,
+          top: 0,
+          justifyContent: 'space-around',
+          height: '100%',
+        }}
+      >
+        <Handle
+          type="target"
+          id="a"
+          position={Position.Left}
+          style={{
+            ...sourceHandleStyle,
+            transform: connection.inProgress ? 'translate(-20px, 0)' : 'translate(-50%, 0)',
+          }}
+        />
+        <Handle
+          type="target"
+          id="b"
+          position={Position.Left}
+          style={{
+            ...sourceHandleStyle,
+            transform: connection.inProgress ? 'translate(-20px, 0)' : 'translate(-50%, 0)',
+          }}
+        />
+      </div>
+      <div style={{ background: '#f4f4f4', padding: 10 }}>
+        <div>moving handles</div>
+        <Handle type="source" position={Position.Right} />
+        <Handle type="source" position={Position.Right} />
+      </div>
+    </>
+  );
+}
+
+export default memo(MovingHandleNode);
diff --git a/examples/react/src/examples/MovingHandles/index.tsx b/examples/react/src/examples/MovingHandles/index.tsx
new file mode 100644
index 00000000..8e254eb2
--- /dev/null
+++ b/examples/react/src/examples/MovingHandles/index.tsx
@@ -0,0 +1,116 @@
+import { useState, useCallback, useEffect } from 'react';
+import {
+  ReactFlow,
+  Controls,
+  addEdge,
+  Node,
+  Position,
+  useEdgesState,
+  Background,
+  applyNodeChanges,
+  OnNodesChange,
+  OnConnect,
+  BuiltInNode,
+  BuiltInEdge,
+  NodeTypes,
+  ReactFlowProvider,
+  useConnection,
+  useReactFlow,
+  useUpdateNodeInternals,
+} from '@xyflow/react';
+
+import MovingHandleNode from './MovingHandleNode';
+
+export type MovingHandleNode = Node<{}, 'movingHandle'>;
+export type MyNode = BuiltInNode | MovingHandleNode;
+export type MyEdge = BuiltInEdge;
+
+const nodeTypes: NodeTypes = {
+  movingHandle: MovingHandleNode,
+};
+
+const initNodes: MyNode[] = [
+  {
+    id: 'input',
+    type: 'input',
+    data: { label: 'input' },
+    position: { x: -300, y: 0 },
+    sourcePosition: Position.Right,
+  },
+];
+
+for (let i = 0; i < 10; i++) {
+  initNodes.push({
+    id: `${i}`,
+    type: 'movingHandle',
+    position: { x: 0, y: i * 60 },
+    data: {},
+  });
+}
+
+const initEdges: MyEdge[] = [];
+
+const CustomNodeFlow = () => {
+  const [nodes, setNodes] = useState<MyNode[]>(initNodes);
+
+  const onNodesChange: OnNodesChange<MyNode> = useCallback(
+    (changes) =>
+      setNodes((nds) => {
+        const nextNodes = applyNodeChanges(changes, nds);
+        return nextNodes;
+      }),
+    [setNodes]
+  );
+
+  const [edges, setEdges, onEdgesChange] = useEdgesState<MyEdge>(initEdges);
+
+  const onConnect: OnConnect = useCallback(
+    (connection) => setEdges((eds) => addEdge({ ...connection, animated: true }, eds)),
+    [setEdges]
+  );
+
+  return (
+    <ReactFlow
+      nodes={nodes}
+      edges={edges}
+      onNodesChange={onNodesChange}
+      onEdgesChange={onEdgesChange}
+      onConnect={onConnect}
+      nodeTypes={nodeTypes}
+      minZoom={0.2}
+      fitView
+    >
+      <Controls />
+      <Background />
+      <NodeUpdater />
+    </ReactFlow>
+  );
+};
+
+function NodeUpdater() {
+  const connection = useConnection();
+  const { getNodes } = useReactFlow();
+  const updateNodeInternals = useUpdateNodeInternals();
+
+  useEffect(() => {
+    const startTime = Date.now();
+    const nodeIds = getNodes().map((n) => n.id);
+
+    function update() {
+      if (Date.now() - startTime < 500) {
+        updateNodeInternals(nodeIds);
+        requestAnimationFrame(update);
+      }
+    }
+
+    update();
+  }, [connection.inProgress]);
+
+  return null;
+}
+
+export default () => (
+  <ReactFlowProvider>
+    <CustomNodeFlow />
+  </ReactFlowProvider>
+);