diff --git a/PERFORMANCE.md b/PERFORMANCE.md
new file mode 100644
index 0000000..45b00b6
--- /dev/null
+++ b/PERFORMANCE.md
@@ -0,0 +1,48 @@
+# Performance notes
+
+## Already in place
+
+- **Throttled node updates during drag** – `onNodesChange` merges changes and flushes at most once per animation frame (~60 fps) so dragging doesn’t trigger hundreds of re-renders per second.
+- **`nodeDragThreshold={1}`** – Avoids treating small pointer moves as drags and reduces noisy change events.
+- **Memoized React Flow props** – `nodeTypes`, `edgeTypes`, `defaultEdgeOptions`, and `flowContextValue` are memoized so their references don’t change every render.
+- **Custom `nodePropsAreEqual`** – Node components use `React.memo(..., nodePropsAreEqual)` so a node only re-renders when its own `id`, `data`, `width`, `height`, or `selected` change (e.g. dragging one node doesn’t force others to re-render when the library keeps their props reference stable).
+- **ConfigNode derived data** – `incomingEdges`, `incomingIds`, and `connected*` are wrapped in `useMemo` so they aren’t recomputed on every render.
+
+## Further improvements you can try
+
+### 1. Split context (medium effort)
+
+Right now every component that uses `useContext(FlowContext)` re-renders whenever `nodes` or `edges` change. You can split into:
+
+- **FlowDataContext** – `nodes`, `edges` (changes often).
+- **FlowActionsContext** – `setNodes`, `setEdges`, `isValidConnection`, etc. (stable).
+
+Components that only need actions (e.g. menus, buttons) subscribe to `FlowActionsContext` and won’t re-render on graph updates.
+
+### 2. Avoid reading full `nodes`/`edges` where possible
+
+React Flow’s docs recommend not depending on the full `nodes`/`edges` arrays when you only need a small slice (e.g. “selected ids”). If you add features like selection state, keep that in a separate store or state (e.g. `selectedNodeIds`) and have components depend on that instead of filtering `nodes` everywhere.
+
+### 3. Lighter node content
+
+- **CodeMirror** – Config and function nodes use CodeMirror; it’s heavy. Options: lazy-initialize the editor (mount only when the node is focused or visible), or use a plain `<textarea>` for very small/simple flows.
+- **Resize** – `NodeResizeControl` and `useResizeHeight` add work. If you don’t need resize everywhere, make it optional or only on certain node types.
+
+### 4. CSS
+
+- **Containment** – `BaseNode` already uses `contain: layout` where dimensions are set. Keeping layout/paint contained per node helps.
+- **Simpler styles** – For many nodes, avoid heavy shadows, blur, or complex animations on the node container; they can cost a lot during pan/zoom/drag.
+
+### 5. RenderingNode pipeline
+
+The render node runs Nunjucks + Kroki on signatures (config, edges, variables, functions). It already avoids re-running when irrelevant data changes. If you add more inputs, keep them in the signature pattern so the effect only runs when something that affects the result actually changes.
+
+### 6. Large graphs
+
+- **Hide/collapse** – For big trees, use the `hidden` property (or similar) so only expanded nodes are rendered.
+- **Virtualization** – React Flow doesn’t virtualize by default. For 100+ nodes, consider only rendering nodes in view (e.g. with `onlyRenderVisibleElements` if/when available in your version) or a custom viewport-based filter.
+
+### 7. Build / runtime
+
+- **Production build** – Use `vite build` and test with the production build; React and Vite are much faster without dev mode and source maps.
+- **React DevTools Profiler** – Record while dragging or editing to see which components re-render and how often; that will guide where to add more memoization or split context.
diff --git a/src/App.tsx b/src/App.tsx
index 9d3e488..d22ad2d 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -1,4 +1,4 @@
-import React from 'react'
+import React, { useCallback, useMemo, useRef } from 'react'
 import {
   ReactFlow,
   ReactFlowProvider,
@@ -8,10 +8,12 @@ import {
   addEdge,
   useNodesState,
   useEdgesState,
+  applyNodeChanges,
   type Node,
   type Edge,
   type Connection,
   type ColorMode,
+  type NodeChange,
 } from '@xyflow/react'
 import ConfigNode from './components/graph/ConfigNode'
 import FunctionNode from './components/graph/FunctionNode'
@@ -64,7 +66,7 @@ const initialEdges: Edge[] = [
 
 export default function App() {
   const { theme, toggleTheme } = useTheme()
-  const [nodes, setNodes, onNodesChange] = useNodesState(initialNodes)
+  const [nodes, setNodes, onNodesChangeBase] = useNodesState(initialNodes)
   const [edges, setEdges, onEdgesChange] = useEdgesState(initialEdges)
   const [rfInstance, setRfInstance] = React.useState<any | null>(null)
   const [renamingNodeId, setRenamingNodeId] = React.useState<string | null>(null)
@@ -74,6 +76,36 @@ export default function App() {
   const lastClickRef = React.useRef<{ clientX: number; clientY: number } | null>(null)
   const [contextTarget, setContextTarget] = React.useState<null | { type: 'canvas'; clientX: number; clientY: number }>(null)
 
+  // Throttle node changes during drag: merge changes and flush at most once per animation frame to reduce re-renders
+  const pendingChangesRef = useRef<NodeChange<Node>[]>([])
+  const rafRef = useRef<number | null>(null)
+  const onNodesChange = useCallback(
+    (changes: NodeChange<Node>[]) => {
+      if (changes.length === 0) return
+      const pending = pendingChangesRef.current
+      for (const c of changes) {
+        const id = (c as { id?: string }).id
+        if (id != null) {
+          const i = pending.findIndex((p) => (p as { id?: string }).id === id)
+          if (i >= 0) pending[i] = c
+          else pending.push(c)
+        } else {
+          pending.push(c)
+        }
+      }
+      if (rafRef.current === null) {
+        rafRef.current = requestAnimationFrame(() => {
+          rafRef.current = null
+          const toApply = pendingChangesRef.current.splice(0, pendingChangesRef.current.length)
+          if (toApply.length > 0) {
+            setNodes((nds) => applyNodeChanges(toApply, nds))
+          }
+        })
+      }
+    },
+    [setNodes]
+  )
+
   const nodeTypes = React.useMemo(
     () => ({ config: ConfigNode, render: RenderingNode, variable: VariableNode, function: FunctionNode }),
     []
@@ -81,6 +113,8 @@ export default function App() {
 
   const edgeTypes = React.useMemo(() => ({ animated: AnimatedEdge }), [])
 
+  const defaultEdgeOptions = React.useMemo(() => ({ type: 'animated' as const }), [])
+
   const onConnect = React.useCallback(
     (params: Connection) => setEdges((eds) => addEdge(params, eds)),
     [setEdges]
@@ -121,6 +155,31 @@ export default function App() {
     setRfInstance(instance)
   }, [])
 
+  const flowContextValue = useMemo(
+    () => ({
+      nodes,
+      setNodes,
+      edges,
+      setEdges,
+      renamingNodeId,
+      setRenamingNodeId,
+      connectionFrom,
+      setConnectionFrom,
+      isValidConnection,
+    }),
+    [
+      nodes,
+      setNodes,
+      edges,
+      setEdges,
+      renamingNodeId,
+      setRenamingNodeId,
+      connectionFrom,
+      setConnectionFrom,
+      isValidConnection,
+    ]
+  )
+
   const onContextMenuCapture = React.useCallback((ev: React.MouseEvent) => {
     const target = ev.target as HTMLElement
     const nodeEl = target.closest('.react-flow__node')
@@ -236,7 +295,7 @@ export default function App() {
       >
         {theme === 'dark' ? <Sun className="h-4 w-4" /> : <Moon className="h-4 w-4" />}
       </Button>
-      <FlowContext.Provider value={{ nodes, setNodes, edges, setEdges, renamingNodeId, setRenamingNodeId, connectionFrom, setConnectionFrom, isValidConnection }}>
+      <FlowContext.Provider value={flowContextValue}>
         <ContextMenu>
           <ContextMenuTrigger asChild>
             <div style={{ width: '100%', height: '100%' }}>
@@ -252,12 +311,13 @@ export default function App() {
                   isValidConnection={isValidConnection}
                   nodeTypes={nodeTypes}
                   edgeTypes={edgeTypes}
-                  defaultEdgeOptions={{ type: 'animated' }}
+                  defaultEdgeOptions={defaultEdgeOptions}
                   colorMode={theme as ColorMode}
                   snapToGrid
                   snapGrid={SNAP_GRID}
                   fitView
                   onInit={onInit}
+                  nodeDragThreshold={1}
                 >
                   <Background variant="dots" gap={20} />
                   <Controls />
diff --git a/src/components/graph/ConfigNode.tsx b/src/components/graph/ConfigNode.tsx
index c5c99ea..5691305 100644
--- a/src/components/graph/ConfigNode.tsx
+++ b/src/components/graph/ConfigNode.tsx
@@ -2,6 +2,7 @@ import React, { memo, useCallback, useContext, useMemo, useRef } from 'react'
 import { autocompletion } from '@codemirror/autocomplete'
 import CodeMirror from '@uiw/react-codemirror'
 import FlowContext from '../../lib/flowContext'
+import { nodePropsAreEqual } from '../../lib/flowUtils'
 import { useResizeHeight } from '../../hooks/useResizeHeight'
 import { nunjucksCompletionSource } from '../../lib/nunjucksAutocomplete'
 import { plantumlLanguage } from '../../lib/plantumlLanguage'
@@ -41,11 +42,22 @@ export const ConfigNode = memo(function ConfigNode({ id, data, width, height }:
 
     const editorRef = useRef<unknown>(null)
 
-    const incomingEdges = ctx?.edges?.filter((e: any) => e.target === id) ?? []
-    const incomingIds = incomingEdges.map((e: any) => e.source).sort()
-    const connectedConfigNodes = (ctx?.nodes ?? []).filter((n: any) => incomingIds.includes(n.id) && n.type === 'config')
-    const connectedVariableNodes = (ctx?.nodes ?? []).filter((n: any) => incomingIds.includes(n.id) && n.type === 'variable')
-    const connectedFunctionNodes = (ctx?.nodes ?? []).filter((n: any) => incomingIds.includes(n.id) && n.type === 'function')
+    const edges = ctx?.edges ?? []
+    const nodes = ctx?.nodes ?? []
+    const incomingEdges = useMemo(() => edges.filter((e: any) => e.target === id), [edges, id])
+    const incomingIds = useMemo(() => incomingEdges.map((e: any) => e.source).sort(), [incomingEdges])
+    const connectedConfigNodes = useMemo(
+        () => (nodes as any[]).filter((n: any) => incomingIds.includes(n.id) && n.type === 'config'),
+        [nodes, incomingIds]
+    )
+    const connectedVariableNodes = useMemo(
+        () => (nodes as any[]).filter((n: any) => incomingIds.includes(n.id) && n.type === 'variable'),
+        [nodes, incomingIds]
+    )
+    const connectedFunctionNodes = useMemo(
+        () => (nodes as any[]).filter((n: any) => incomingIds.includes(n.id) && n.type === 'function'),
+        [nodes, incomingIds]
+    )
     const hasDependencies = connectedConfigNodes.length > 0 || connectedVariableNodes.length > 0 || connectedFunctionNodes.length > 0
 
     const onChange = useCallback(
@@ -273,7 +285,7 @@ export const ConfigNode = memo(function ConfigNode({ id, data, width, height }:
             </BaseNodeFooter>
         </BaseNode>
     )
-})
+}, nodePropsAreEqual)
 
 ConfigNode.displayName = 'ConfigNode'
 
diff --git a/src/components/graph/FunctionNode.tsx b/src/components/graph/FunctionNode.tsx
index 578538a..3eb9b7c 100644
--- a/src/components/graph/FunctionNode.tsx
+++ b/src/components/graph/FunctionNode.tsx
@@ -2,6 +2,7 @@ import React, { memo, useCallback, useContext, useMemo, useRef } from 'react'
 import CodeMirror from '@uiw/react-codemirror'
 import { javascript } from '@codemirror/lang-javascript'
 import FlowContext from '../../lib/flowContext'
+import { nodePropsAreEqual } from '../../lib/flowUtils'
 import { useResizeHeight } from '../../hooks/useResizeHeight'
 import { useTheme } from '../../lib/themeContext'
 import {
@@ -171,7 +172,7 @@ export const FunctionNode = memo(function FunctionNode({ id, data, width, height
             </BaseNodeFooter>
         </BaseNode>
     )
-})
+}, nodePropsAreEqual)
 
 FunctionNode.displayName = 'FunctionNode'
 
diff --git a/src/components/graph/RenderingNode.tsx b/src/components/graph/RenderingNode.tsx
index fc2cbce..88f65b4 100644
--- a/src/components/graph/RenderingNode.tsx
+++ b/src/components/graph/RenderingNode.tsx
@@ -8,7 +8,7 @@ import {
     BaseNodeFooter,
     BaseNodeHeaderRow,
 } from './BaseNode'
-import { DEFAULT_NODE_STYLE, getDefaultDataForType, getNextNodeId } from '../../lib/flowUtils'
+import { DEFAULT_NODE_STYLE, getDefaultDataForType, getNextNodeId, nodePropsAreEqual } from '../../lib/flowUtils'
 import { NodeFooterEdgeIndicators } from './NodeFooterEdgeIndicators'
 import { NodeHeaderTitle } from './NodeHeaderTitle'
 import { NodeMenubar } from './NodeMenubar'
@@ -611,7 +611,7 @@ export const RenderingNode = memo(function RenderingNode({ id, width, height }:
         </BaseNode>
         </NodeStatusIndicator>
     )
-})
+}, nodePropsAreEqual)
 
 RenderingNode.displayName = 'RenderingNode'
 
diff --git a/src/components/graph/VariableNode.tsx b/src/components/graph/VariableNode.tsx
index 4bdce50..419d02e 100644
--- a/src/components/graph/VariableNode.tsx
+++ b/src/components/graph/VariableNode.tsx
@@ -1,5 +1,6 @@
 import React, { memo, useCallback, useContext } from 'react'
 import FlowContext from '../../lib/flowContext'
+import { nodePropsAreEqual } from '../../lib/flowUtils'
 import {
     BaseNode,
     BaseNodeContent,
@@ -138,7 +139,7 @@ export const VariableNode = memo(function VariableNode({ id, data }: Props) {
             </BaseNodeFooter>
         </BaseNode>
     )
-})
+}, nodePropsAreEqual)
 
 VariableNode.displayName = 'VariableNode'
 
diff --git a/src/lib/flowUtils.ts b/src/lib/flowUtils.ts
index 5c1b4c3..3a56f06 100644
--- a/src/lib/flowUtils.ts
+++ b/src/lib/flowUtils.ts
@@ -1,3 +1,21 @@
+/**
+ * Use as second argument to React.memo() for node components.
+ * Skips re-render when only position (or other unrelated props) changed,
+ * so dragging one node doesn't force other nodes to re-render.
+ */
+export function nodePropsAreEqual<P extends { id?: string; data?: any; width?: number; height?: number; selected?: boolean }>(
+  prev: P,
+  next: P
+): boolean {
+  return (
+    prev.id === next.id &&
+    prev.data === next.data &&
+    prev.width === next.width &&
+    prev.height === next.height &&
+    prev.selected === next.selected
+  )
+}
+
 export const PREFIX_BY_TYPE: Record<string, string> = {
   config: 'cfg_',
   render: 'rnd_',