diff --git a/example/src/NodeTypeChange/index.js b/example/src/NodeTypeChange/index.js
new file mode 100644
index 00000000..b414392b
--- /dev/null
+++ b/example/src/NodeTypeChange/index.js
@@ -0,0 +1,52 @@
+import React, { useState } from 'react';
+
+import ReactFlow, { addEdge } from 'react-flow-renderer';
+
+const onLoad = (reactFlowInstance) => reactFlowInstance.fitView();
+
+const initialElements = [
+  {
+    id: '1',
+    sourcePosition: 'right',
+    type: 'input',
+    data: { label: 'Input' },
+    position: { x: 0, y: 80 },
+  },
+  {
+    id: '2',
+    type: 'output',
+    sourcePosition: 'right',
+    targetPosition: 'left',
+    data: { label: 'A Node' },
+    position: { x: 250, y: 0 },
+  },
+  { id: 'e1-2', source: '1', type: 'smoothstep', target: '2', animated: true },
+];
+
+const HorizontalFlow = () => {
+  const [elements, setElements] = useState(initialElements);
+  const onConnect = (params) => setElements((els) => addEdge(params, els));
+  const changeType = () => {
+    setElements((elms) =>
+      elms.map((el) => {
+        if (el.type === 'input') {
+          return el;
+        }
+
+        el.type = el.type === 'default' ? 'output' : 'default';
+
+        return { ...el };
+      })
+    );
+  };
+
+  return (
+    <ReactFlow elements={elements} onConnect={onConnect} onLoad={onLoad}>
+      <button onClick={changeType} style={{ position: 'absolute', right: 10, top: 30, zIndex: 4 }}>
+        change type
+      </button>
+    </ReactFlow>
+  );
+};
+
+export default HorizontalFlow;
diff --git a/example/src/index.js b/example/src/index.js
index f90eee35..639183b4 100644
--- a/example/src/index.js
+++ b/example/src/index.js
@@ -15,6 +15,7 @@ import Provider from './Provider';
 import Hidden from './Hidden';
 import EdgeTypes from './EdgeTypes';
 import CustomConnectionLine from './CustomConnectionLine';
+import NodeTypeChange from './NodeTypeChange';
 
 import './index.css';
 
@@ -79,6 +80,10 @@ const routes = [
     path: '/custom-connectionline',
     component: CustomConnectionLine,
   },
+  {
+    path: '/nodetype-change',
+    component: NodeTypeChange,
+  },
 ];
 
 const navLinks = routes.filter((route) => route.label);
diff --git a/src/hooks/useElementUpdater.ts b/src/hooks/useElementUpdater.ts
index f3f7fdc1..0f2bac7c 100644
--- a/src/hooks/useElementUpdater.ts
+++ b/src/hooks/useElementUpdater.ts
@@ -44,6 +44,13 @@ const useElementUpdater = (propElements: Elements): void => {
 
         if (typeof propElement.type !== 'undefined') {
           elementProps.type = propElement.type;
+
+          // we reset the elements dimensions here in order to force a re-calculation of the bounds.
+          // When the type of a node changes it is possible that the number or positions of handles changes too.
+          if (isNode(existingElement) && propElement.type !== existingElement.type) {
+            existingElement.__rf.width = null;
+            existingElement.__rf.height = null;
+          }
         }
 
         if (isNode(existingElement)) {