diff --git a/packages/frontend/editor-ui/src/app/composables/useCanvasOperations.ts b/packages/frontend/editor-ui/src/app/composables/useCanvasOperations.ts
index 6cc4f1bfeaf..db6da1d4ccc 100644
--- a/packages/frontend/editor-ui/src/app/composables/useCanvasOperations.ts
+++ b/packages/frontend/editor-ui/src/app/composables/useCanvasOperations.ts
@@ -82,6 +82,7 @@ import {
 	generateOffsets,
 	getNodesGroupSize,
 	PUSH_NODES_OFFSET,
+	doRectsOverlap,
 } from '@/app/utils/nodeViewUtils';
 import type { Connection } from '@vue-flow/core';
 import type {
@@ -1196,8 +1197,33 @@ export function useCanvasOperations() {
 					// Compute the y offset for the new node based on the number of main outputs of the source node
 					// and shift the downstream nodes accordingly
 
-					shiftDownstreamNodesPosition(lastInteractedWithNode.name, PUSH_NODES_OFFSET, {
+					// Calculate actual node size for the new node being inserted
+					// Configurable nodes (like AI Agent) have non-main inputs and are wider
+					// Use nodeTypeDescription.inputs directly since the node isn't in the workflow yet
+					// If inputs is a string (expression), it's a dynamic node like AI Agent which is configurable
+					let isNewNodeConfigurable = false;
+					if (typeof nodeTypeDescription.inputs === 'string') {
+						// Dynamic inputs (expression string) indicates AI/configurable nodes
+						isNewNodeConfigurable = true;
+					} else if (Array.isArray(nodeTypeDescription.inputs)) {
+						const nodeInputTypes = NodeHelpers.getConnectionTypes(nodeTypeDescription.inputs);
+						isNewNodeConfigurable =
+							nodeInputTypes.filter((input) => input !== NodeConnectionTypes.Main).length > 0;
+					}
+					const newNodeSize: [number, number] = isNewNodeConfigurable
+						? CONFIGURABLE_NODE_SIZE
+						: DEFAULT_NODE_SIZE;
+					// Calculate shift margin: base offset plus extra width for configurable nodes
+					// For standard nodes: PUSH_NODES_OFFSET (208)
+					// For configurable nodes: PUSH_NODES_OFFSET + (configurable width - default width)
+					const extraWidth = isNewNodeConfigurable
+						? CONFIGURABLE_NODE_SIZE[0] - DEFAULT_NODE_SIZE[0]
+						: 0;
+					const shiftMargin = PUSH_NODES_OFFSET + extraWidth;
+
+					shiftDownstreamNodesPosition(lastInteractedWithNode.name, shiftMargin, {
 						trackHistory: true,
+						nodeSize: newNodeSize,
 					});
 				}
 
@@ -1279,6 +1305,14 @@ export function useCanvasOperations() {
 						lastInteractedWithNode.position[0] + pushOffset,
 						lastInteractedWithNode.position[1] + yOffset,
 					];
+
+					// When inserting via edge plus button, adjust Y to fit within overlapping sticky notes
+					if (lastInteractedWithNodeConnection) {
+						const adjustedY = getYPositionForStickyOverlap(position, nodeSize);
+						if (adjustedY !== null) {
+							position = [position[0], adjustedY];
+						}
+					}
 				}
 			}
 		}
@@ -1324,25 +1358,255 @@ export function useCanvasOperations() {
 	}
 
 	/**
-	 * Moves all downstream nodes of a node
+	 * Gets the bounding rectangle of a node including its size
+	 */
+	function getNodeRect(node: INodeUi): { x: number; y: number; width: number; height: number } {
+		if (node.type === STICKY_NODE_TYPE) {
+			return {
+				x: node.position[0],
+				y: node.position[1],
+				width: (node.parameters.width as number) || DEFAULT_NODE_SIZE[0],
+				height: (node.parameters.height as number) || DEFAULT_NODE_SIZE[1],
+			};
+		}
+		return {
+			x: node.position[0],
+			y: node.position[1],
+			width: DEFAULT_NODE_SIZE[0],
+			height: DEFAULT_NODE_SIZE[1],
+		};
+	}
+
+	/**
+	 * Check if there's enough space for a new node at the insertion position.
+	 * Uses a margin to account for nodes that are touching (edge-to-edge)
+	 * which should still be considered as blocking the insertion.
+	 */
+	function hasSpaceForInsertion(
+		insertPosition: XYPosition,
+		nodeSize: [number, number],
+		nodesToCheck: INodeUi[],
+	): boolean {
+		// Add a small margin to detect nodes that are touching (edge-to-edge)
+		const margin = GRID_SIZE;
+		const insertRect = {
+			x: insertPosition[0],
+			y: insertPosition[1],
+			width: nodeSize[0] + margin,
+			height: nodeSize[1],
+		};
+
+		for (const node of nodesToCheck) {
+			if (node.type === STICKY_NODE_TYPE) continue;
+			const nodeRect = getNodeRect(node);
+			if (doRectsOverlap(insertRect, nodeRect)) {
+				return false;
+			}
+		}
+		return true;
+	}
+
+	/**
+	 * Gets all nodes that should be shifted when inserting a node.
+	 * Algorithm:
+	 * 1. Find nodes that overlap with or are to the right of insertion area (similar Y)
+	 * 2. Add nodes connected to them (downstream)
+	 * 3. Filter to only include nodes that need to move
+	 */
+	function getNodesToShift(
+		insertPosition: XYPosition,
+		sourceNodeName: string,
+	): { nodesToMove: INodeUi[]; stickiesToStretch: INodeUi[] } {
+		const allNodes = Object.values(workflowsStore.nodesByName);
+		const insertX = insertPosition[0];
+		const insertY = insertPosition[1];
+		const yTolerance = DEFAULT_NODE_SIZE[1] * 2; // Nodes within ~2 node heights are considered "similar Y"
+
+		// Step 1: Find initial candidates - nodes that overlap with or are to the right of insertion
+		// A node overlaps if its right edge extends into the insertion area
+		const initialCandidates = allNodes.filter((node) => {
+			if (node.type === STICKY_NODE_TYPE) return false;
+			if (node.name === sourceNodeName) return false;
+			const isSimilarY = Math.abs(node.position[1] - insertY) <= yTolerance;
+			// Node overlaps or is to the right if its right edge is past the insertion X
+			// or its left edge is at/past the insertion X
+			const nodeRightEdge = node.position[0] + DEFAULT_NODE_SIZE[0];
+			const overlapsOrIsToTheRight = nodeRightEdge > insertX || node.position[0] >= insertX;
+			return isSimilarY && overlapsOrIsToTheRight;
+		});
+
+		// Step 2: Add all downstream connected nodes from initial candidates
+		const candidateNames = new Set(initialCandidates.map((n) => n.name));
+		for (const candidate of initialCandidates) {
+			const downstream = workflowHelpers.getConnectedNodes(
+				'downstream',
+				editableWorkflowObject.value,
+				candidate.name,
+			);
+			downstream.forEach((name) => candidateNames.add(name));
+		}
+
+		// Step 3: Get all candidate regular nodes (they overlap with or are downstream of insertion)
+		const regularNodesToMove = allNodes.filter((node) => {
+			if (node.type === STICKY_NODE_TYPE) return false;
+			return candidateNames.has(node.name);
+		});
+
+		// Step 4: Find sticky notes that need moving or stretching
+		const stickiesToStretch: INodeUi[] = [];
+		const stickiesToMove: INodeUi[] = [];
+		const stickyNodes = allNodes.filter((node) => node.type === STICKY_NODE_TYPE);
+
+		// Calculate the vertical area that will be affected (insertion point + nodes being moved)
+		const affectedMinY = Math.min(insertY, ...regularNodesToMove.map((n) => n.position[1]));
+		const affectedMaxY = Math.max(
+			insertY + DEFAULT_NODE_SIZE[1],
+			...regularNodesToMove.map((n) => n.position[1] + DEFAULT_NODE_SIZE[1]),
+		);
+
+		for (const sticky of stickyNodes) {
+			const stickyRect = getNodeRect(sticky);
+			const stickyLeftEdge = sticky.position[0];
+			const stickyRightEdge = stickyLeftEdge + stickyRect.width;
+			const stickyTop = sticky.position[1];
+			const stickyBottom = stickyTop + stickyRect.height;
+			const overlapsVertically = !(stickyBottom <= affectedMinY || stickyTop >= affectedMaxY);
+
+			// Sticky should be moved if its left edge is at or past the insertion position
+			if (stickyLeftEdge >= insertX && overlapsVertically) {
+				stickiesToMove.push(sticky);
+			}
+			// Sticky should be stretched if:
+			// 1. Its left edge is before the insertion position
+			// 2. Its right edge extends into or past the insertion position
+			// 3. It overlaps vertically with the affected area
+			else if (stickyLeftEdge < insertX && stickyRightEdge >= insertX && overlapsVertically) {
+				stickiesToStretch.push(sticky);
+			}
+		}
+
+		// Combine regular nodes and stickies to move
+		const nodesToMove = [...regularNodesToMove, ...stickiesToMove];
+
+		return { nodesToMove, stickiesToStretch };
+	}
+
+	/**
+	 * Checks if the insertion position overlaps with a sticky note and returns
+	 * an adjusted Y position that fits within the sticky's content area.
+	 * Only adjusts Y if there's enough space for insertion (no downstream nodes blocking).
+	 * Returns null if no adjustment is needed.
+	 */
+	function getYPositionForStickyOverlap(
+		insertPosition: XYPosition,
+		nodeSize: [number, number],
+	): number | null {
+		const allNodes = Object.values(workflowsStore.nodesByName);
+		const stickyNodes = allNodes.filter((node) => node.type === STICKY_NODE_TYPE);
+		const regularNodes = allNodes.filter((node) => node.type !== STICKY_NODE_TYPE);
+
+		// Add a small margin to detect nodes that are touching (edge-to-edge)
+		const margin = GRID_SIZE;
+		const insertRect = {
+			x: insertPosition[0],
+			y: insertPosition[1],
+			width: nodeSize[0] + margin,
+			height: nodeSize[1],
+		};
+
+		// First check if there are any regular nodes blocking the insertion position
+		// If so, downstream nodes will be shifted and we should keep the original Y
+		for (const node of regularNodes) {
+			const nodeRect = getNodeRect(node);
+			if (doRectsOverlap(insertRect, nodeRect)) {
+				// There's a regular node blocking - don't adjust Y, let shift logic handle it
+				return null;
+			}
+		}
+
+		// No regular nodes blocking - check if we need to adjust Y for sticky overlap
+		for (const sticky of stickyNodes) {
+			const stickyRect = getNodeRect(sticky);
+
+			// Check if insertion position overlaps with this sticky
+			if (doRectsOverlap(insertRect, stickyRect)) {
+				// Sticky header takes up approximately 40px (title area)
+				const STICKY_HEADER_HEIGHT = 40;
+				const stickyContentTop = sticky.position[1] + STICKY_HEADER_HEIGHT;
+				const stickyContentBottom = sticky.position[1] + stickyRect.height - GRID_SIZE;
+
+				// Calculate the ideal Y position centered in the sticky's content area
+				const contentHeight = stickyContentBottom - stickyContentTop;
+				const centeredY = stickyContentTop + (contentHeight - nodeSize[1]) / 2;
+
+				// Ensure the position is grid-aligned
+				return Math.round(centeredY / GRID_SIZE) * GRID_SIZE;
+			}
+		}
+
+		return null;
+	}
+
+	/**
+	 * Stretches a sticky note by increasing its width
+	 */
+	function stretchStickyNote(
+		sticky: INodeUi,
+		stretchAmount: number,
+		{ trackHistory = false }: { trackHistory?: boolean },
+	) {
+		const currentWidth = (sticky.parameters.width as number) || DEFAULT_NODE_SIZE[0];
+		const newWidth = currentWidth + stretchAmount;
+
+		const newParameters = {
+			...sticky.parameters,
+			width: newWidth,
+		};
+
+		replaceNodeParameters(sticky.id, sticky.parameters as INodeParameters, newParameters, {
+			trackHistory,
+			trackBulk: false,
+		});
+	}
+
+	/**
+	 * Moves downstream nodes when inserting a node between existing nodes.
+	 * Only moves nodes if there isn't enough space for the new node.
+	 * Sticky notes that overlap the insertion area are stretched instead of moved.
 	 */
 	function shiftDownstreamNodesPosition(
 		sourceNodeName: string,
 		margin: number,
-		{ trackHistory = false }: { trackHistory?: boolean },
+		{
+			trackHistory = false,
+			nodeSize = DEFAULT_NODE_SIZE,
+		}: { trackHistory?: boolean; nodeSize?: [number, number] },
 	) {
 		const sourceNode = workflowsStore.nodesByName[sourceNodeName];
-		const checkNodes = workflowHelpers.getConnectedNodes(
-			'downstream',
-			editableWorkflowObject.value,
-			sourceNodeName,
-		);
-		for (const nodeName of checkNodes) {
-			const node = workflowsStore.nodesByName[nodeName];
-			if (!node || !sourceNode || node.position[0] < sourceNode.position[0]) {
-				continue;
-			}
+		if (!sourceNode) return;
 
+		// Calculate insertion position (to the right of source node)
+		// Use PUSH_NODES_OFFSET to match the actual position where nodes are placed
+		const insertPosition: XYPosition = [
+			sourceNode.position[0] + PUSH_NODES_OFFSET,
+			sourceNode.position[1],
+		];
+
+		// Get all nodes except source and stickies
+		const nodesToCheck = Object.values(workflowsStore.nodesByName).filter(
+			(n) => n.name !== sourceNodeName && n.type !== STICKY_NODE_TYPE,
+		);
+
+		// Check if there's enough space - if so, don't move anything
+		if (hasSpaceForInsertion(insertPosition, nodeSize, nodesToCheck)) {
+			return;
+		}
+
+		// Get nodes to shift and stickies to stretch
+		const { nodesToMove, stickiesToStretch } = getNodesToShift(insertPosition, sourceNodeName);
+
+		// Move regular nodes to the right
+		for (const node of nodesToMove) {
 			updateNodePosition(
 				node.id,
 				{
@@ -1352,6 +1616,11 @@ export function useCanvasOperations() {
 				{ trackHistory },
 			);
 		}
+
+		// Stretch sticky notes instead of moving them
+		for (const sticky of stickiesToStretch) {
+			stretchStickyNote(sticky, margin, { trackHistory });
+		}
 	}
 
 	/**
diff --git a/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.test.ts b/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.test.ts
index 218487c61da..0ddaa89fb41 100644
--- a/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.test.ts
+++ b/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.test.ts
@@ -12,6 +12,8 @@ import {
 	snapPositionToGrid,
 	calculateNodeSize,
 	GRID_SIZE,
+	doRectsOverlap,
+	canUsePosition,
 } from './nodeViewUtils';
 import type { INode, INodeTypeDescription, INodeExecutionData, Workflow } from 'n8n-workflow';
 import type { INodeUi, XYPosition } from '@/Interface';
@@ -575,3 +577,61 @@ function createTestGraphNode(data: Partial<GraphNode> = {}): GraphNode {
 		...data,
 	};
 }
+
+describe('doRectsOverlap', () => {
+	it('should return true when rectangles overlap', () => {
+		const rect1 = { x: 0, y: 0, width: 100, height: 100 };
+		const rect2 = { x: 50, y: 50, width: 100, height: 100 };
+		expect(doRectsOverlap(rect1, rect2)).toBe(true);
+	});
+
+	it('should return false when rectangles do not overlap horizontally', () => {
+		const rect1 = { x: 0, y: 0, width: 100, height: 100 };
+		const rect2 = { x: 150, y: 0, width: 100, height: 100 };
+		expect(doRectsOverlap(rect1, rect2)).toBe(false);
+	});
+
+	it('should return false when rectangles do not overlap vertically', () => {
+		const rect1 = { x: 0, y: 0, width: 100, height: 100 };
+		const rect2 = { x: 0, y: 150, width: 100, height: 100 };
+		expect(doRectsOverlap(rect1, rect2)).toBe(false);
+	});
+
+	it('should return false when rectangles touch but do not overlap', () => {
+		const rect1 = { x: 0, y: 0, width: 100, height: 100 };
+		const rect2 = { x: 100, y: 0, width: 100, height: 100 };
+		expect(doRectsOverlap(rect1, rect2)).toBe(false);
+	});
+
+	it('should return true when one rectangle contains another', () => {
+		const rect1 = { x: 0, y: 0, width: 200, height: 200 };
+		const rect2 = { x: 50, y: 50, width: 50, height: 50 };
+		expect(doRectsOverlap(rect1, rect2)).toBe(true);
+	});
+});
+
+describe('canUsePosition', () => {
+	it('should return true when positions are far apart', () => {
+		const pos1: XYPosition = [0, 0];
+		const pos2: XYPosition = [200, 200];
+		expect(canUsePosition(pos1, pos2)).toBe(true);
+	});
+
+	it('should return false when positions overlap', () => {
+		const pos1: XYPosition = [0, 0];
+		const pos2: XYPosition = [50, 50];
+		expect(canUsePosition(pos1, pos2)).toBe(false);
+	});
+
+	it('should return true when positions are separated horizontally', () => {
+		const pos1: XYPosition = [0, 0];
+		const pos2: XYPosition = [DEFAULT_NODE_SIZE[0] + 1, 0];
+		expect(canUsePosition(pos1, pos2)).toBe(true);
+	});
+
+	it('should return true when positions are separated vertically', () => {
+		const pos1: XYPosition = [0, 0];
+		const pos2: XYPosition = [0, DEFAULT_NODE_SIZE[1] + 1];
+		expect(canUsePosition(pos1, pos2)).toBe(true);
+	});
+});
diff --git a/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.ts b/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.ts
index 5e652cc2e19..5b6465379e3 100644
--- a/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.ts
+++ b/packages/frontend/editor-ui/src/app/utils/nodeViewUtils.ts
@@ -125,7 +125,7 @@ export const getNodesGroupSize = (nodes: INodeUi[]): [number, number] => {
 /**
  * Checks if the given position is available for a new node
  */
-const canUsePosition = (
+export const canUsePosition = (
 	position1: XYPosition,
 	position2: XYPosition,
 	size: [number, number] = DEFAULT_NODE_SIZE,
@@ -139,6 +139,21 @@ const canUsePosition = (
 	return true;
 };
 
+/**
+ * Check if two rectangles overlap
+ */
+export const doRectsOverlap = (
+	rect1: { x: number; y: number; width: number; height: number },
+	rect2: { x: number; y: number; width: number; height: number },
+): boolean => {
+	return !(
+		rect1.x + rect1.width <= rect2.x ||
+		rect2.x + rect2.width <= rect1.x ||
+		rect1.y + rect1.height <= rect2.y ||
+		rect2.y + rect2.height <= rect1.y
+	);
+};
+
 /**
  * Returns the closest number divisible by the given number
  */
diff --git a/packages/testing/playwright/tests/e2e/workflows/editor/canvas/actions.spec.ts b/packages/testing/playwright/tests/e2e/workflows/editor/canvas/actions.spec.ts
index 50bc4e12c8c..541175ada78 100644
--- a/packages/testing/playwright/tests/e2e/workflows/editor/canvas/actions.spec.ts
+++ b/packages/testing/playwright/tests/e2e/workflows/editor/canvas/actions.spec.ts
@@ -4,6 +4,8 @@ import {
 	CODE_NODE_NAME,
 	HTTP_REQUEST_NODE_NAME,
 	CODE_NODE_DISPLAY_NAME,
+	EDIT_FIELDS_SET_NODE_NAME,
+	AGENT_NODE_NAME,
 } from '../../../../../config/constants';
 import { test, expect } from '../../../../../fixtures/base';
 
@@ -190,4 +192,160 @@ test.describe('Canvas Actions', () => {
 
 		await expect(n8n.canvas.selectedNodes()).toHaveCount(2);
 	});
+
+	test.describe('Node insertion positioning', () => {
+		test('should not shift downstream nodes when there is enough space', async ({ n8n }) => {
+			// Create trigger -> code with large gap between them
+			await n8n.canvas.addNode(MANUAL_TRIGGER_NODE_NAME);
+			await n8n.canvas.nodeByName(MANUAL_TRIGGER_NODE_DISPLAY_NAME).click();
+			await n8n.canvas.addNode(CODE_NODE_NAME, { action: 'Code in JavaScript', closeNDV: true });
+
+			await n8n.canvas.clickZoomToFitButton();
+
+			// Move code node far to the right to create space
+			await n8n.canvas.dragNodeToRelativePosition(CODE_NODE_DISPLAY_NAME, 400, 0);
+
+			// Get code node position before insertion
+			const codePositionBefore = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+
+			// Insert node between trigger and code
+			await n8n.canvas.addNodeBetweenNodes(
+				MANUAL_TRIGGER_NODE_DISPLAY_NAME,
+				CODE_NODE_DISPLAY_NAME,
+				HTTP_REQUEST_NODE_NAME,
+			);
+
+			// Get code node position after insertion
+			const codePositionAfter = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+
+			// Code node should not have moved since there was enough space
+			expect(codePositionAfter.x).toBe(codePositionBefore.x);
+			expect(codePositionAfter.y).toBe(codePositionBefore.y);
+		});
+
+		test('should shift downstream nodes when there is not enough space', async ({ n8n }) => {
+			// Create trigger -> code (close together)
+			await n8n.canvas.addNode(MANUAL_TRIGGER_NODE_NAME);
+			await n8n.canvas.nodeByName(MANUAL_TRIGGER_NODE_DISPLAY_NAME).click();
+			await n8n.canvas.addNode(CODE_NODE_NAME, { action: 'Code in JavaScript', closeNDV: true });
+
+			await n8n.canvas.clickZoomToFitButton();
+
+			// Get code node position before insertion
+			const codePositionBefore = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+
+			// Insert node between trigger and code
+			await n8n.canvas.addNodeBetweenNodes(
+				MANUAL_TRIGGER_NODE_DISPLAY_NAME,
+				CODE_NODE_DISPLAY_NAME,
+				HTTP_REQUEST_NODE_NAME,
+			);
+
+			// Get code node position after insertion
+			const codePositionAfter = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+
+			// Code node should have moved to the right
+			expect(codePositionAfter.x).toBeGreaterThan(codePositionBefore.x);
+		});
+
+		test('should shift connected downstream nodes together', async ({ n8n }) => {
+			// Create trigger -> code -> edit fields chain
+			await n8n.canvas.addNode(MANUAL_TRIGGER_NODE_NAME);
+			await n8n.canvas.nodeByName(MANUAL_TRIGGER_NODE_DISPLAY_NAME).click();
+			await n8n.canvas.addNode(CODE_NODE_NAME, { action: 'Code in JavaScript', closeNDV: true });
+			await n8n.canvas.nodeByName(CODE_NODE_DISPLAY_NAME).click();
+			await n8n.canvas.addNode(EDIT_FIELDS_SET_NODE_NAME, { closeNDV: true });
+
+			await n8n.canvas.clickZoomToFitButton();
+
+			// Get positions before insertion
+			const codePositionBefore = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+			const editFieldsPositionBefore = await n8n.canvas.getNodePosition('Edit Fields');
+
+			// Insert node between trigger and code
+			await n8n.canvas.addNodeBetweenNodes(
+				MANUAL_TRIGGER_NODE_DISPLAY_NAME,
+				CODE_NODE_DISPLAY_NAME,
+				HTTP_REQUEST_NODE_NAME,
+			);
+
+			// Get positions after insertion
+			const codePositionAfter = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+			const editFieldsPositionAfter = await n8n.canvas.getNodePosition('Edit Fields');
+
+			// Both downstream nodes should have moved by approximately the same amount
+			const codeDeltaX = codePositionAfter.x - codePositionBefore.x;
+			const editFieldsDeltaX = editFieldsPositionAfter.x - editFieldsPositionBefore.x;
+
+			expect(codeDeltaX).toBeGreaterThan(0);
+			expect(editFieldsDeltaX).toBeGreaterThan(0);
+			// They should move by similar amounts (within tolerance for rounding)
+			expect(Math.abs(codeDeltaX - editFieldsDeltaX)).toBeLessThan(20);
+		});
+
+		test('should shift downstream nodes correctly when inserting configurable nodes like AI Agent', async ({
+			n8n,
+		}) => {
+			// Create trigger -> code (close together)
+			await n8n.canvas.addNode(MANUAL_TRIGGER_NODE_NAME);
+			await n8n.canvas.nodeByName(MANUAL_TRIGGER_NODE_DISPLAY_NAME).click();
+			await n8n.canvas.addNode(CODE_NODE_NAME, { action: 'Code in JavaScript', closeNDV: true });
+
+			await n8n.canvas.clickZoomToFitButton();
+
+			// Get code node position before insertion
+			const codePositionBefore = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+
+			// Insert AI Agent (a configurable/wider node) between trigger and code
+			await n8n.canvas.addNodeBetweenNodes(
+				MANUAL_TRIGGER_NODE_DISPLAY_NAME,
+				CODE_NODE_DISPLAY_NAME,
+				AGENT_NODE_NAME,
+			);
+
+			// Get positions after insertion
+			const codePositionAfter = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+			const agentPosition = await n8n.canvas.getNodePosition(AGENT_NODE_NAME);
+
+			// Code node should have moved to the right
+			expect(codePositionAfter.x).toBeGreaterThan(codePositionBefore.x);
+
+			// AI Agent node should be positioned between trigger and code (not overlapping)
+			// AI Agent is 256px wide, so its right edge should be left of code node
+			// Agent position is top-left, so right edge is agentPosition.x + 256
+			const agentRightEdge = agentPosition.x + 256;
+			expect(agentRightEdge).toBeLessThan(codePositionAfter.x);
+		});
+
+		test('should not shift downstream nodes when there is enough space for configurable nodes', async ({
+			n8n,
+		}) => {
+			// Create trigger -> code with large gap between them
+			await n8n.canvas.addNode(MANUAL_TRIGGER_NODE_NAME);
+			await n8n.canvas.nodeByName(MANUAL_TRIGGER_NODE_DISPLAY_NAME).click();
+			await n8n.canvas.addNode(CODE_NODE_NAME, { action: 'Code in JavaScript', closeNDV: true });
+
+			await n8n.canvas.clickZoomToFitButton();
+
+			// Move code node far to the right to create space for AI Agent (which is 256px wide)
+			await n8n.canvas.dragNodeToRelativePosition(CODE_NODE_DISPLAY_NAME, 500, 0);
+
+			// Get code node position before insertion
+			const codePositionBefore = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+
+			// Insert AI Agent between trigger and code
+			await n8n.canvas.addNodeBetweenNodes(
+				MANUAL_TRIGGER_NODE_DISPLAY_NAME,
+				CODE_NODE_DISPLAY_NAME,
+				AGENT_NODE_NAME,
+			);
+
+			// Get code node position after insertion
+			const codePositionAfter = await n8n.canvas.getNodePosition(CODE_NODE_DISPLAY_NAME);
+
+			// Code node should not have moved since there was enough space
+			expect(codePositionAfter.x).toBe(codePositionBefore.x);
+			expect(codePositionAfter.y).toBe(codePositionBefore.y);
+		});
+	});
 });