diff --git a/apps/sim/lib/workflows/autolayout/core.test.ts b/apps/sim/lib/workflows/autolayout/core.test.ts
new file mode 100644
index 00000000000..3ecf5bba95d
--- /dev/null
+++ b/apps/sim/lib/workflows/autolayout/core.test.ts
@@ -0,0 +1,76 @@
+/**
+ * @vitest-environment node
+ */
+import { describe, expect, it, vi } from 'vitest'
+import { layoutBlocksCore } from '@/lib/workflows/autolayout/core'
+import type { Edge } from '@/lib/workflows/autolayout/types'
+import type { BlockState } from '@/stores/workflows/workflow/types'
+
+vi.mock('@/blocks', () => ({
+  getBlock: () => null,
+}))
+
+function createBlock(id: string): BlockState {
+  return {
+    id,
+    type: 'agent',
+    name: id,
+    position: { x: 0, y: 0 },
+    subBlocks: {},
+    outputs: {},
+    enabled: true,
+    height: 120,
+    layout: { measuredWidth: 250, measuredHeight: 120 },
+  } as BlockState
+}
+
+describe('layoutBlocksCore', () => {
+  it('keeps each branch in a stable row regardless of block insertion order', () => {
+    // Two parallel chains from one source. Insertion order is interleaved so the
+    // per-layer order flips: layer1 [a1,b1], layer2 [b2,a2], layer3 [a3,b3].
+    // Row assignment must come from the resolved predecessor position, not from
+    // per-layer insertion-order tie-breaks.
+    const blocks: Record<string, BlockState> = {}
+    for (const id of ['s', 'a1', 'b1', 'b2', 'a2', 'a3', 'b3']) {
+      blocks[id] = createBlock(id)
+    }
+    const edges: Edge[] = [
+      { id: 'e1', source: 's', target: 'a1' },
+      { id: 'e2', source: 's', target: 'b1' },
+      { id: 'e3', source: 'a1', target: 'a2' },
+      { id: 'e4', source: 'b1', target: 'b2' },
+      { id: 'e5', source: 'a2', target: 'a3' },
+      { id: 'e6', source: 'b2', target: 'b3' },
+    ]
+
+    const { nodes } = layoutBlocksCore(blocks, edges, { isContainer: false })
+    const y = (id: string) => nodes.get(id)!.position.y
+
+    const aAboveInLayer1 = y('a1') < y('b1')
+    expect(y('a2') < y('b2')).toBe(aAboveInLayer1)
+    expect(y('a3') < y('b3')).toBe(aAboveInLayer1)
+  })
+
+  it('leaves no vertical overlaps within a layer', () => {
+    const blocks: Record<string, BlockState> = {}
+    for (const id of ['s', 'a1', 'b1', 'c1']) {
+      blocks[id] = createBlock(id)
+    }
+    const edges: Edge[] = [
+      { id: 'e1', source: 's', target: 'a1' },
+      { id: 'e2', source: 's', target: 'b1' },
+      { id: 'e3', source: 's', target: 'c1' },
+    ]
+
+    const { nodes } = layoutBlocksCore(blocks, edges, { isContainer: false })
+    const layer1 = ['a1', 'b1', 'c1']
+      .map((id) => nodes.get(id)!)
+      .sort((a, b) => a.position.y - b.position.y)
+
+    for (let i = 0; i < layer1.length - 1; i++) {
+      expect(layer1[i + 1].position.y).toBeGreaterThanOrEqual(
+        layer1[i].position.y + layer1[i].metrics.height
+      )
+    }
+  })
+})
diff --git a/apps/sim/lib/workflows/autolayout/core.ts b/apps/sim/lib/workflows/autolayout/core.ts
index 94035ebe90d..a420db0f845 100644
--- a/apps/sim/lib/workflows/autolayout/core.ts
+++ b/apps/sim/lib/workflows/autolayout/core.ts
@@ -3,7 +3,6 @@ import { BLOCK_DIMENSIONS, HANDLE_POSITIONS } from '@sim/workflow-renderer'
 import {
   CONTAINER_LAYOUT_OPTIONS,
   DEFAULT_LAYOUT_OPTIONS,
-  MAX_OVERLAP_ITERATIONS,
 } from '@/lib/workflows/autolayout/constants'
 import type { Edge, GraphNode, LayoutOptions } from '@/lib/workflows/autolayout/types'
 import {
@@ -200,57 +199,23 @@ export function groupByLayer(nodes: Map<string, GraphNode>): Map<number, GraphNo
 }
 
 /**
- * Resolves vertical overlaps between nodes in the same layer.
+ * Resolves vertical overlaps between nodes within a single layer by pushing
+ * lower nodes down. Must run before the next layer is positioned so successors
+ * derive their Y from resolved predecessor positions — this keeps each branch
+ * in a stable row instead of re-breaking Y ties per layer.
  * X overlaps are prevented by construction via cumulative width-based positioning.
  */
-function resolveVerticalOverlaps(nodes: GraphNode[], verticalSpacing: number): void {
-  let iteration = 0
-  let hasOverlap = true
-
-  while (hasOverlap && iteration < MAX_OVERLAP_ITERATIONS) {
-    hasOverlap = false
-    iteration++
-
-    const nodesByLayer = new Map<number, GraphNode[]>()
-    for (const node of nodes) {
-      if (!nodesByLayer.has(node.layer)) {
-        nodesByLayer.set(node.layer, [])
-      }
-      nodesByLayer.get(node.layer)!.push(node)
-    }
-
-    for (const [layer, layerNodes] of nodesByLayer) {
-      if (layerNodes.length < 2) continue
-
-      layerNodes.sort((a, b) => a.position.y - b.position.y)
+function resolveLayerOverlaps(layerNodes: GraphNode[], verticalSpacing: number): void {
+  if (layerNodes.length < 2) return
 
-      for (let i = 0; i < layerNodes.length - 1; i++) {
-        const node1 = layerNodes[i]
-        const node2 = layerNodes[i + 1]
+  const sorted = [...layerNodes].sort((a, b) => a.position.y - b.position.y)
 
-        const node1Bottom = node1.position.y + node1.metrics.height
-        const requiredY = node1Bottom + verticalSpacing
-
-        if (node2.position.y < requiredY) {
-          hasOverlap = true
-          node2.position.y = requiredY
-
-          logger.debug('Resolved vertical overlap in layer', {
-            layer,
-            block1: node1.id,
-            block2: node2.id,
-            iteration,
-          })
-        }
-      }
+  for (let i = 0; i < sorted.length - 1; i++) {
+    const requiredY = sorted[i].position.y + sorted[i].metrics.height + verticalSpacing
+    if (sorted[i + 1].position.y < requiredY) {
+      sorted[i + 1].position.y = requiredY
     }
   }
-
-  if (hasOverlap) {
-    logger.warn('Could not fully resolve all vertical overlaps after max iterations', {
-      iterations: MAX_OVERLAP_ITERATIONS,
-    })
-  }
 }
 
 /**
@@ -372,9 +337,9 @@ export function calculatePositions(
 
       node.position = { x: xPosition, y: bestSourceHandleY - targetHandleOffset }
     }
-  }
 
-  resolveVerticalOverlaps(Array.from(layers.values()).flat(), verticalSpacing)
+    resolveLayerOverlaps(nodesInLayer, verticalSpacing)
+  }
 }
 
 /**