diff --git a/packages/fossflow-lib/src/components/ContextMenu/ContextMenu.tsx b/packages/fossflow-lib/src/components/ContextMenu/ContextMenu.tsx
index 5f3c1e1..5907cd5 100644
--- a/packages/fossflow-lib/src/components/ContextMenu/ContextMenu.tsx
+++ b/packages/fossflow-lib/src/components/ContextMenu/ContextMenu.tsx
@@ -1,6 +1,5 @@
 import React from 'react';
 import { Menu, MenuItem } from '@mui/material';
-import { Coords } from 'src/types';
 
 interface MenuItemI {
   label: string;
@@ -9,25 +8,19 @@ interface MenuItemI {
 
 interface Props {
   onClose: () => void;
-  position: Coords;
-  anchorEl?: HTMLElement;
+  anchorEl?: HTMLElement | null;
   menuItems: MenuItemI[];
 }
 
 export const ContextMenu = ({
   onClose,
-  position,
   anchorEl,
   menuItems
 }: Props) => {
   return (
     <Menu
-      open
+      open={!!anchorEl}
       anchorEl={anchorEl}
-      style={{
-        left: position.x,
-        top: position.y
-      }}
       onClose={onClose}
     >
       {menuItems.map((item, index) => {
diff --git a/packages/fossflow-lib/src/components/ContextMenu/ContextMenuManager.tsx b/packages/fossflow-lib/src/components/ContextMenu/ContextMenuManager.tsx
index f7526b5..029fbb3 100644
--- a/packages/fossflow-lib/src/components/ContextMenu/ContextMenuManager.tsx
+++ b/packages/fossflow-lib/src/components/ContextMenu/ContextMenuManager.tsx
@@ -1,13 +1,13 @@
 import React, { useCallback } from 'react';
 import { useUiStateStore } from 'src/stores/uiStateStore';
-import { getTilePosition, CoordsUtils, generateId, findNearestUnoccupiedTile } from 'src/utils';
+import { generateId, findNearestUnoccupiedTile } from 'src/utils';
 import { useScene } from 'src/hooks/useScene';
 import { useModelStore } from 'src/stores/modelStore';
 import { VIEW_ITEM_DEFAULTS } from 'src/config';
 import { ContextMenu } from './ContextMenu';
 
 interface Props {
-  anchorEl?: HTMLElement;
+  anchorEl?: HTMLElement | null;
 }
 
 export const ContextMenuManager = ({ anchorEl }: Props) => {
@@ -15,9 +15,6 @@ export const ContextMenuManager = ({ anchorEl }: Props) => {
   const model = useModelStore((state) => {
     return state;
   });
-  const zoom = useUiStateStore((state) => {
-    return state.zoom;
-  });
   const contextMenu = useUiStateStore((state) => {
     return state.contextMenu;
   });
@@ -30,67 +27,58 @@ export const ContextMenuManager = ({ anchorEl }: Props) => {
     uiStateActions.setContextMenu(null);
   }, [uiStateActions]);
 
-  if (!contextMenu) {
-    return null;
-  }
+  return (
+    <ContextMenu
+      anchorEl={anchorEl}
+      onClose={onClose}
+      menuItems={[
+        {
+          label: 'Add Node',
+          onClick: () => {
+            if (!contextMenu) return;
+            if (model.icons.length > 0) {
+              const modelItemId = generateId();
+              const firstIcon = model.icons[0];
+              
+              // Find nearest unoccupied tile (should return the same tile since context menu is for empty tiles)
+              const targetTile = findNearestUnoccupiedTile(contextMenu.tile, scene) || contextMenu.tile;
 
-  if (contextMenu.type === 'EMPTY') {
-    return (
-      <ContextMenu
-        anchorEl={anchorEl}
-        onClose={onClose}
-        position={CoordsUtils.multiply(
-          getTilePosition({ tile: contextMenu.tile }),
-          zoom
-        )}
-        menuItems={[
-          {
-            label: 'Add Node',
-            onClick: () => {
-              if (model.icons.length > 0) {
-                const modelItemId = generateId();
-                const firstIcon = model.icons[0];
-                
-                // Find nearest unoccupied tile (should return the same tile since context menu is for empty tiles)
-                const targetTile = findNearestUnoccupiedTile(contextMenu.tile, scene) || contextMenu.tile;
-
-                scene.placeIcon({
-                  modelItem: {
-                    id: modelItemId,
-                    name: 'Untitled',
-                    icon: firstIcon.id
-                  },
-                  viewItem: {
-                    ...VIEW_ITEM_DEFAULTS,
-                    id: modelItemId,
-                    tile: targetTile
-                  }
-                });
-              }
-              onClose();
-            }
-          },
-          {
-            label: 'Add Rectangle',
-            onClick: () => {
-              if (model.colors.length > 0) {
-                scene.createRectangle({
-                  id: generateId(),
-                  color: model.colors[0].id,
-                  from: contextMenu.tile,
-                  to: contextMenu.tile
-                });
-              }
-              onClose();
+              scene.placeIcon({
+                modelItem: {
+                  id: modelItemId,
+                  name: 'Untitled',
+                  icon: firstIcon.id
+                },
+                viewItem: {
+                  ...VIEW_ITEM_DEFAULTS,
+                  id: modelItemId,
+                  tile: targetTile
+                }
+              });
             }
+            onClose();
           }
-        ]}
-      />
-    );
-  }
+        },
+        {
+          label: 'Add Rectangle',
+          onClick: () => {
+            if (!contextMenu) return;
+            if (model.colors.length > 0) {
+              scene.createRectangle({
+                id: generateId(),
+                color: model.colors[0].id,
+                from: contextMenu.tile,
+                to: contextMenu.tile
+              });
+            }
+            onClose();
+          }
+        }
+      ]}
+    />
+  );
 
   // Remove ITEM context menu since layer ordering only works for rectangles
   // and provides no value for regular diagram items
 
-  return null;
 };
diff --git a/packages/fossflow-lib/src/components/UiOverlay/UiOverlay.tsx b/packages/fossflow-lib/src/components/UiOverlay/UiOverlay.tsx
index af599a4..939f035 100644
--- a/packages/fossflow-lib/src/components/UiOverlay/UiOverlay.tsx
+++ b/packages/fossflow-lib/src/components/UiOverlay/UiOverlay.tsx
@@ -24,6 +24,7 @@ import { ConnectorRerouteTooltip } from '../ConnectorRerouteTooltip/ConnectorRer
 import { ImportHintTooltip } from '../ImportHintTooltip/ImportHintTooltip';
 import { LassoHintTooltip } from '../LassoHintTooltip/LassoHintTooltip';
 import { LazyLoadingWelcomeNotification } from '../LazyLoadingWelcomeNotification/LazyLoadingWelcomeNotification';
+import { CoordsUtils, getTilePosition } from 'src/utils';
 
 const ToolsEnum = {
   MAIN_MENU: 'MAIN_MENU',
@@ -100,6 +101,9 @@ export const UiOverlay = () => {
   const iconPackManager = useUiStateStore((state) => {
     return state.iconPackManager;
   });
+  const contextMenu = useUiStateStore((state) => {
+    return state.contextMenu;
+  });
   const { size: rendererSize } = useResizeObserver(rendererEl);
 
   return (
@@ -262,8 +266,17 @@ export const UiOverlay = () => {
       {iconPackManager && <LazyLoadingWelcomeNotification />}
 
       <SceneLayer>
-        <Box ref={contextMenuAnchorRef} />
-        <ContextMenuManager anchorEl={contextMenuAnchorRef.current} />
+        {contextMenu && (
+          <Box 
+            ref={contextMenuAnchorRef} 
+            sx={{
+              position: 'absolute',
+              left: getTilePosition({ tile: contextMenu.tile }).x,
+              top: getTilePosition({ tile: contextMenu.tile }).y
+            }}
+          />
+        )}
+        <ContextMenuManager anchorEl={contextMenu && contextMenu.type === "EMPTY" ? contextMenuAnchorRef.current : null} />
       </SceneLayer>
     </>
   );