diff --git a/src/composables/canvas/useSelectionToolboxPosition.ts b/src/composables/canvas/useSelectionToolboxPosition.ts
index 963f9c7d2..e98d4d5ef 100644
--- a/src/composables/canvas/useSelectionToolboxPosition.ts
+++ b/src/composables/canvas/useSelectionToolboxPosition.ts
@@ -1,4 +1,4 @@
-import { onUnmounted, ref, watch } from 'vue'
+import { computed, onUnmounted, ref, watch } from 'vue'
 import type { Ref } from 'vue'
 
 import { useCanvasTransformSync } from '@/composables/canvas/useCanvasTransformSync'
@@ -170,50 +170,75 @@ export function useSelectionToolboxPosition(
     }
   )
 
-  // Watch for dragging state
-  watch(
-    () => canvasStore.canvas?.state?.draggingItems,
-    (dragging) => {
-      if (dragging) {
-        visible.value = false
-
-        if (moreOptionsOpen.value) {
-          const currentSig = buildSelectionSignature(canvasStore)
-          if (currentSig !== moreOptionsSelectionSignature) {
-            moreOptionsSelectionSignature = null
-          }
-          moreOptionsWasOpenBeforeDrag = true
-          moreOptionsOpen.value = false
-          moreOptionsRestorePending.value = !!moreOptionsSelectionSignature
-          if (moreOptionsRestorePending.value) {
-            forceCloseMoreOptionsSignal.value++
-          } else {
-            moreOptionsWasOpenBeforeDrag = false
-          }
-        } else {
-          moreOptionsRestorePending.value = false
-          moreOptionsWasOpenBeforeDrag = false
-        }
-      } else {
-        requestAnimationFrame(() => {
-          updateSelectionBounds()
-          const selectionMatches = currentSelectionMatchesSignature(canvasStore)
-          const shouldRestore =
-            moreOptionsWasOpenBeforeDrag &&
-            visible.value &&
-            moreOptionsRestorePending.value &&
-            selectionMatches
-
-          if (shouldRestore) {
-            restoreMoreOptionsSignal.value++
-          } else {
-            moreOptionsRestorePending.value = false
-          }
-          moreOptionsWasOpenBeforeDrag = false
-        })
-      }
+  const handleDragStateChange = (dragging: boolean) => {
+    if (dragging) {
+      handleDragStart()
+      return
     }
-  )
+
+    handleDragEnd()
+  }
+
+  const handleDragStart = () => {
+    visible.value = false
+
+    // Early return if more options wasn't open
+    if (!moreOptionsOpen.value) {
+      moreOptionsRestorePending.value = false
+      moreOptionsWasOpenBeforeDrag = false
+      return
+    }
+
+    // Handle more options cleanup
+    const currentSig = buildSelectionSignature(canvasStore)
+    const selectionChanged = currentSig !== moreOptionsSelectionSignature
+
+    if (selectionChanged) {
+      moreOptionsSelectionSignature = null
+    }
+    moreOptionsOpen.value = false
+    moreOptionsWasOpenBeforeDrag = true
+    moreOptionsRestorePending.value = !!moreOptionsSelectionSignature
+
+    if (moreOptionsRestorePending.value) {
+      forceCloseMoreOptionsSignal.value++
+      return
+    }
+
+    moreOptionsWasOpenBeforeDrag = false
+  }
+
+  const handleDragEnd = () => {
+    requestAnimationFrame(() => {
+      updateSelectionBounds()
+
+      const selectionMatches = currentSelectionMatchesSignature(canvasStore)
+      const shouldRestore =
+        moreOptionsWasOpenBeforeDrag &&
+        visible.value &&
+        moreOptionsRestorePending.value &&
+        selectionMatches
+
+      // Single point of assignment for each ref
+      moreOptionsRestorePending.value =
+        shouldRestore && moreOptionsRestorePending.value
+      moreOptionsWasOpenBeforeDrag = false
+
+      if (shouldRestore) {
+        restoreMoreOptionsSignal.value++
+      }
+    })
+  }
+
+  // Unified dragging state - combines both LiteGraph and Vue node dragging
+  const isDragging = computed((): boolean => {
+    const litegraphDragging = canvasStore.canvas?.state?.draggingItems ?? false
+    const vueNodeDragging =
+      shouldRenderVueNodes.value && layoutStore.isDraggingVueNodes.value
+    return litegraphDragging || vueNodeDragging
+  })
+
+  watch(isDragging, handleDragStateChange)
 
   onUnmounted(() => {
     resetMoreOptionsState()
diff --git a/src/renderer/core/layout/store/layoutStore.ts b/src/renderer/core/layout/store/layoutStore.ts
index 7daa4523c..254b27a2c 100644
--- a/src/renderer/core/layout/store/layoutStore.ts
+++ b/src/renderer/core/layout/store/layoutStore.ts
@@ -5,7 +5,7 @@
  * CRDT ensures conflict-free operations for both single and multi-user scenarios.
  */
 import log from 'loglevel'
-import { type ComputedRef, type Ref, computed, customRef } from 'vue'
+import { type ComputedRef, type Ref, computed, customRef, ref } from 'vue'
 import * as Y from 'yjs'
 
 import { ACTOR_CONFIG } from '@/renderer/core/layout/constants'
@@ -134,6 +134,9 @@ class LayoutStoreImpl implements LayoutStore {
   private slotSpatialIndex: SpatialIndexManager // For slots
   private rerouteSpatialIndex: SpatialIndexManager // For reroutes
 
+  // Vue dragging state for selection toolbox (public ref for direct mutation)
+  public isDraggingVueNodes = ref(false)
+
   constructor() {
     // Initialize Yjs data structures
     this.ynodes = this.ydoc.getMap('nodes')
diff --git a/src/renderer/extensions/vueNodes/components/LGraphNode.vue b/src/renderer/extensions/vueNodes/components/LGraphNode.vue
index 60e946bf0..808c21ca1 100644
--- a/src/renderer/extensions/vueNodes/components/LGraphNode.vue
+++ b/src/renderer/extensions/vueNodes/components/LGraphNode.vue
@@ -148,6 +148,7 @@ import { useErrorHandling } from '@/composables/useErrorHandling'
 import { LiteGraph } from '@/lib/litegraph/src/litegraph'
 import { SelectedNodeIdsKey } from '@/renderer/core/canvas/injectionKeys'
 import { TransformStateKey } from '@/renderer/core/layout/injectionKeys'
+import { layoutStore } from '@/renderer/core/layout/store/layoutStore'
 import { useNodeExecutionState } from '@/renderer/extensions/vueNodes/execution/useNodeExecutionState'
 import { useNodeLayout } from '@/renderer/extensions/vueNodes/layout/useNodeLayout'
 import { LODLevel, useLOD } from '@/renderer/extensions/vueNodes/lod/useLOD'
@@ -363,6 +364,10 @@ const handlePointerDown = (event: PointerEvent) => {
 
   // Start drag using layout system
   isDragging.value = true
+
+  // Set Vue node dragging state for selection toolbox
+  layoutStore.isDraggingVueNodes.value = true
+
   startDrag(event)
   lastY.value = event.clientY
   lastX.value = event.clientX
@@ -378,6 +383,9 @@ const handlePointerUp = (event: PointerEvent) => {
   if (isDragging.value) {
     isDragging.value = false
     void endDrag(event)
+
+    // Clear Vue node dragging state for selection toolbox
+    layoutStore.isDraggingVueNodes.value = false
   }
   // Emit node-click for selection handling in GraphCanvas
   const dx = event.clientX - lastX.value