diff --git a/app/api/chat/route.ts b/app/api/chat/route.ts
index b9c337eaa9..eddcd9cb71 100644
--- a/app/api/chat/route.ts
+++ b/app/api/chat/route.ts
@@ -46,7 +46,7 @@ const workflowActions = {
     }
   },
   addEdge: {
-    description: "Create a connection between two blocks",
+    description: "Create a connection (edge) between two blocks",
     parameters: {
       type: "object",
       required: ["sourceId", "targetId"],
@@ -81,7 +81,7 @@ const workflowActions = {
     }
   },
   removeEdge: {
-    description: "Remove a connection between blocks",
+    description: "Remove a connection (edge) between blocks",
     parameters: {
       type: "object",
       required: ["id"],
diff --git a/stores/chat/store.ts b/stores/chat/store.ts
index 440afca01c..4e2551ed82 100644
--- a/stores/chat/store.ts
+++ b/stores/chat/store.ts
@@ -3,7 +3,7 @@ import { devtools } from 'zustand/middleware'
 import { useWorkflowStore } from '../workflow/store'
 import { useEnvironmentStore } from '../environment/store'
 import { ChatStore, ChatMessage } from './types'
-import { getNextBlockNumber } from './utils'
+import { getNextBlockNumber, calculateBlockPosition } from './utils'
 
 export const useChatStore = create<ChatStore>()(
   devtools(
@@ -73,25 +73,36 @@ export const useChatStore = create<ChatStore>()(
           
           // Handle any actions returned from the API
           if (data.actions) {
-            for (const action of data.actions) {
+            // Process all block additions first to properly calculate positions
+            const blockActions = data.actions.filter(
+              (action: any) => action.name === 'addBlock'
+            )
+            
+            blockActions.forEach((action: any, index: number) => {
+              const { type, name } = action.parameters
+              const id = crypto.randomUUID()
+              
+              // Calculate position based on current blocks and action index
+              const position = calculateBlockPosition(
+                workflowStore.blocks,
+                index
+              )
+              
+              // Generate name if not provided
+              const blockName = name || `${type} ${getNextBlockNumber(workflowStore.blocks, type)}`
+              
+              workflowStore.addBlock(id, type, blockName, position)
+            })
+
+            // Handle other actions (edges, removals, etc.)
+            const otherActions = data.actions.filter(
+              (action: any) => action.name !== 'addBlock'
+            )
+            
+            otherActions.forEach((action: any) => {
               switch (action.name) {
-                case 'addBlock': {
-                  const { type, name, position } = action.parameters
-                  const id = crypto.randomUUID()
-                  const defaultPosition = position || {
-                    x: Object.keys(workflowStore.blocks).length * 250,
-                    y: 100
-                  }
-                  
-                  // Generate name if not provided
-                  const blockName = name || `${type} ${getNextBlockNumber(workflowStore.blocks, type)}`
-                  
-                  workflowStore.addBlock(id, type, blockName, defaultPosition)
-                  break
-                }
                 case 'addEdge': {
                   const { sourceId, targetId, sourceHandle, targetHandle } = action.parameters
-                  
                   workflowStore.addEdge({
                     id: crypto.randomUUID(),
                     source: sourceId,
@@ -111,7 +122,7 @@ export const useChatStore = create<ChatStore>()(
                   break
                 }
               }
-            }
+            })
           }
 
           // Add assistant's response to chat
diff --git a/stores/chat/utils.ts b/stores/chat/utils.ts
index 2f5be39e72..3b0b107ac4 100644
--- a/stores/chat/utils.ts
+++ b/stores/chat/utils.ts
@@ -9,4 +9,25 @@ export const getNextBlockNumber = (blocks: Record<string, any>, type: string) =>
 
   const maxNumber = Math.max(0, ...typeBlocks)
   return maxNumber + 1
+}
+
+// Calculate block position based on existing blocks and current action index
+export const calculateBlockPosition = (
+  existingBlocks: Record<string, any>,
+  index: number,
+  startX = 100,
+  startY = 100,
+  xSpacing = 500,
+  ySpacing = 150
+) => {
+  const blocksCount = Object.keys(existingBlocks).length
+  
+  // Calculate position based on existing blocks and current action index
+  const row = Math.floor((blocksCount + index) / 5) // 5 blocks per row
+  const col = (blocksCount + index) % 5
+  
+  return {
+    x: startX + (col * xSpacing),
+    y: startY + (row * ySpacing)
+  }
 }
\ No newline at end of file