diff --git a/frontend/src/utils/nodeLayout.ts b/frontend/src/utils/nodeLayout.ts
new file mode 100644
index 0000000..5c6cf93
--- /dev/null
+++ b/frontend/src/utils/nodeLayout.ts
@@ -0,0 +1,56 @@
+import type { WorkflowNode } from '../types/workflow'
+
+export interface NodePosition {
+  x: number
+  y: number
+}
+
+// Horizontal gap between a source node and a newly connected node.
+export const HORIZONTAL_STEP = 260
+
+// Vertical spacing used both to stack nodes that have no source, and to
+// cascade a new node further down when its preferred slot is already taken.
+export const VERTICAL_STEP = 120
+
+// Node cards are ~180px wide (see styles/canvas.css `min-width`); treat
+// anything within this distance on either axis as "occupying" the slot.
+const COLLISION_THRESHOLD_X = 180
+const COLLISION_THRESHOLD_Y = VERTICAL_STEP
+
+const isOccupied = (existingNodes: WorkflowNode[], candidate: NodePosition): boolean =>
+  existingNodes.some(
+    (n) =>
+      Math.abs(n.position.x - candidate.x) < COLLISION_THRESHOLD_X &&
+      Math.abs(n.position.y - candidate.y) < COLLISION_THRESHOLD_Y
+  )
+
+/**
+ * Computes where a newly created node should be placed so it doesn't
+ * overlap any existing node. When `sourceNode` is given, the candidate
+ * position starts directly to the right of it and cascades downward in
+ * `VERTICAL_STEP` increments until a free slot is found. When there is no
+ * source, nodes stack vertically from the top-left corner.
+ */
+export const computeNewNodePosition = (
+  existingNodes: WorkflowNode[],
+  sourceNode: WorkflowNode | null | undefined
+): NodePosition => {
+  if (!sourceNode) {
+    let candidate: NodePosition = { x: 40, y: 40 }
+    while (isOccupied(existingNodes, candidate)) {
+      candidate = { x: candidate.x, y: candidate.y + VERTICAL_STEP }
+    }
+    return candidate
+  }
+
+  let candidate: NodePosition = {
+    x: sourceNode.position.x + HORIZONTAL_STEP,
+    y: sourceNode.position.y
+  }
+
+  while (isOccupied(existingNodes, candidate)) {
+    candidate = { x: candidate.x, y: candidate.y + VERTICAL_STEP }
+  }
+
+  return candidate
+}
diff --git a/frontend/src/views/WorkflowBuilder.vue b/frontend/src/views/WorkflowBuilder.vue
index 1d04020..5d3596f 100644
--- a/frontend/src/views/WorkflowBuilder.vue
+++ b/frontend/src/views/WorkflowBuilder.vue
@@ -120,6 +120,7 @@ import { useAppConfig } from '../composables/useAppConfig'
 import { useAutomationConnect } from '../composables/useAutomationConnect'
 import { builderPath, listPath } from '../router'
 import { findNodeType, TRIGGER_CATEGORY, AI_CATEGORY, ACTION_CATEGORY, NOTIFICATION_CATEGORY } from '../nodeTypes'
+import { computeNewNodePosition } from '../utils/nodeLayout'
 import type { TriggerType, WorkflowEdge, WorkflowNode, WorkflowNodeData } from '../types/workflow'
 
 const props = defineProps<{ id: string }>()
@@ -199,9 +200,7 @@ const onPickNodeType = (typeId: string) => {
   if (!def) return
 
   const source = nodes.value.find((n) => n.id === pickerConnectFrom.value)
-  const position = source
-    ? { x: source.position.x + 260, y: source.position.y }
-    : { x: 40, y: 40 + nodes.value.length * 120 }
+  const position = computeNewNodePosition(nodes.value, source)
 
   const node: WorkflowNode = {
     id: def.nodeKind === 'trigger' ? 'trigger' : nextNodeId(def.nodeKind),
diff --git a/frontend/tests/unit/nodeLayout.spec.ts b/frontend/tests/unit/nodeLayout.spec.ts
new file mode 100644
index 0000000..344bc23
--- /dev/null
+++ b/frontend/tests/unit/nodeLayout.spec.ts
@@ -0,0 +1,56 @@
+import { describe, expect, it } from 'vitest'
+
+import { computeNewNodePosition } from '../../src/utils/nodeLayout'
+import type { WorkflowNode } from '../../src/types/workflow'
+
+const makeNode = (id: string, x: number, y: number): WorkflowNode => ({
+  id,
+  type: 'action',
+  position: { x, y },
+  data: {}
+})
+
+describe('computeNewNodePosition', () => {
+  it('returns the straightforward position when nothing occupies the candidate spot', () => {
+    const source = makeNode('source', 100, 200)
+    const existingNodes: WorkflowNode[] = [source]
+
+    const position = computeNewNodePosition(existingNodes, source)
+
+    expect(position).toEqual({ x: 360, y: 200 })
+  })
+
+  it('moves the position down by one step when the candidate spot is already occupied', () => {
+    const source = makeNode('source', 100, 200)
+    const blocker = makeNode('blocker', 360, 200)
+    const existingNodes: WorkflowNode[] = [source, blocker]
+
+    const position = computeNewNodePosition(existingNodes, source)
+
+    expect(position.x).toBe(360)
+    expect(position.y).toBe(320)
+  })
+
+  it('cascades further down when two nodes are already stacked below the source', () => {
+    const source = makeNode('source', 100, 200)
+    const blocker1 = makeNode('blocker1', 360, 200)
+    const blocker2 = makeNode('blocker2', 360, 320)
+    const existingNodes: WorkflowNode[] = [source, blocker1, blocker2]
+
+    const position = computeNewNodePosition(existingNodes, source)
+
+    expect(position.x).toBe(360)
+    expect(position.y).toBe(440)
+  })
+
+  it('is not affected by nodes that are far away and do not overlap', () => {
+    const source = makeNode('source', 100, 200)
+    const farAway = makeNode('far', 900, 900)
+    const sameXDifferentY = makeNode('sameXFar', 360, 900)
+    const existingNodes: WorkflowNode[] = [source, farAway, sameXDifferentY]
+
+    const position = computeNewNodePosition(existingNodes, source)
+
+    expect(position).toEqual({ x: 360, y: 200 })
+  })
+})