diff --git a/packages/serverless-workflow-diagram-editor/src/react-flow/diagram/Diagram.css b/packages/serverless-workflow-diagram-editor/src/react-flow/diagram/Diagram.css
index 4c3f9a9..92dd1de 100644
--- a/packages/serverless-workflow-diagram-editor/src/react-flow/diagram/Diagram.css
+++ b/packages/serverless-workflow-diagram-editor/src/react-flow/diagram/Diagram.css
@@ -14,12 +14,106 @@
  * limitations under the License.
  */
 
-.diagram-background {
-  --xy-background-pattern-color: #ccc;
-  background-color: #e5e4e2;
+@reference "../../styles.css";
+
+/* react flow overrides */
+@layer react-flow-overrides {
+  .dec-root .diagram-background {
+    --xy-background-pattern-color: #ccc;
+    background-color: #e5e4e2;
+  }
+
+  .dec-root.dark .diagram-background{ 
+      --xy-background-pattern-color: inherit;
+      background-color: inherit;
+  }
+
+  /* react flow pointer behavior */
+  .dec-root .react-flow__pane {
+    cursor: default !important;
+  }
+
+  /* node hovering */
+  .dec-root .react-flow__node {
+    cursor: pointer !important; 
+  }
+
+  /* node dragging */
+  .dec-root .react-flow__node.dragging {
+    cursor: grabbing !important;
+  }
+
+  /* dragging the pane (panning) */
+  .dec-root .react-flow__pane.dragging {
+    cursor: grab !important;
+  }
+
+  .dec-root .react-flow__pane.selection {
+    cursor: grab !important;
+  }
+
+  /* space is held and pan is active */
+  .dec-root .react-flow__pane:active {
+    cursor: grabbing !important;
+  }
 }
 
-.dark .diagram-background{ 
-    --xy-background-pattern-color: inherit;
-    background-color: inherit;
+/* custom nodes */
+@layer custom-nodes {
+  .dec-root .node-label-container {
+    @apply
+      dec:whitespace-pre 
+      dec:p-0.75
+      dec:text-black
+      dec:text-sm;
+  }
+
+  .dec-root.dark .node-label-container {
+    @apply
+      dec:text-white;
+  }
+
+  .dec-root .custom-node-container {
+    @apply 
+      dec:rounded-[5px] 
+      dec:bg-white 
+      dec:border dec:border-black 
+      dec:transition-[border,box-shadow] 
+      dec:h-full 
+      dec:w-full;
+  }
+
+  .dec-root.dark .custom-node-container {
+    @apply 
+      dec:bg-[rgb(85,83,83)] 
+      dec:border-[#e5e4e2];
+  }
+
+  .dec-root .custom-node-container:hover {
+    @apply
+      dec:hover:border dec:hover:border-black 
+      dec:hover:shadow-[0_0_10px_rgba(0,65,208,0.3)] 
+      dec:hover:h-full 
+      dec:hover:w-full;
+  }
+
+  .dec-root.dark .custom-node-container:hover {
+    @apply
+      dec:hover:border-[#5dafd5] 
+      dec:hover:shadow-[0_0_10px_rgba(255,255,255,0.3)];
+  }
+
+  .dec-root .custom-node-container.selected {
+    @apply
+      dec:bg-[#aebbd5] 
+      dec:border dec:border-black 
+      dec:shadow-[0_0_10px_rgba(1,79,248,0.3)];
+  }
+
+  .dec-root.dark .custom-node-container.selected {
+    @apply
+      dec:bg-[#727676] 
+      dec:border-[#4324dc] 
+      dec:shadow-[0_0_10px_rgba(255,255,255,0.3)];
+  }
 }
\ No newline at end of file
diff --git a/packages/serverless-workflow-diagram-editor/src/react-flow/nodes/Nodes.tsx b/packages/serverless-workflow-diagram-editor/src/react-flow/nodes/Nodes.tsx
index 587f582..17f1820 100644
--- a/packages/serverless-workflow-diagram-editor/src/react-flow/nodes/Nodes.tsx
+++ b/packages/serverless-workflow-diagram-editor/src/react-flow/nodes/Nodes.tsx
@@ -50,11 +50,11 @@ interface PlaceholderProps {
 function PlaceholderContent({ id, data, selected, type }: PlaceholderProps) {
   return (
     <div
-      className={`dec:rounded dec:border dec:border-gray-300 dec:dark:border-gray-600 dec:bg-white dec:dark:bg-gray-800  dec:text-gray-900 dec:dark:text-gray-100${selected ? " dec:ring-2 dec:ring-blue-400" : ""}`}
+      className={`custom-node-container ${selected ? "selected" : ""}`}
       data-testid={`${type}-node-${id}`}
     >
       <RF.Handle type="target" position={RF.Position.Top} />
-      <div className="dec:whitespace-pre dec:p-[7px]" data-testid={`${type}-label-${id}`}>
+      <div className="node-label-container" data-testid={`${type}-label-${id}`}>
         {`${type}\n${data.label}`}
       </div>
       <RF.Handle type="source" position={RF.Position.Bottom} />
diff --git a/packages/serverless-workflow-diagram-editor/src/styles.css b/packages/serverless-workflow-diagram-editor/src/styles.css
index 0f4fb10..91e5180 100644
--- a/packages/serverless-workflow-diagram-editor/src/styles.css
+++ b/packages/serverless-workflow-diagram-editor/src/styles.css
@@ -14,6 +14,12 @@
  * limitations under the License.
  */
 
+/* layer order (Priority: lowest -> highest) */
+@layer 
+  base, 
+  react-flow-overrides, 
+  custom-nodes;
+
 @import "tailwindcss" prefix(dec);
 
 @custom-variant dark (&:where(.dec-root.dark, .dec-root.dark *));
@@ -31,6 +37,11 @@
   Tailwind utilities are prefixed with `dec:` (Diagram Editor Component)
   to reduce the risk of conflicts with host application styles.
 */
-.dec-root {
-  height: 100%;
+
+/* global reset styles and element defaults */
+@layer base {
+  .dec-root {
+    @apply
+      dec:h-full;
+  }
 }
\ No newline at end of file
diff --git a/packages/serverless-workflow-diagram-editor/tests/diagram-editor/DiagramEditorDragNDrop.story.test.tsx b/packages/serverless-workflow-diagram-editor/tests/diagram-editor/DiagramEditorDragNDrop.story.test.tsx
index f431563..ea1f08d 100644
--- a/packages/serverless-workflow-diagram-editor/tests/diagram-editor/DiagramEditorDragNDrop.story.test.tsx
+++ b/packages/serverless-workflow-diagram-editor/tests/diagram-editor/DiagramEditorDragNDrop.story.test.tsx
@@ -53,7 +53,6 @@ describe("Story - DiagramEditorDragNDrop component", () => {
 
     render(<Component locale={locale} isReadOnly={isReadOnly} />);
 
-    const wfFileDND = screen.getByTestId("story-workflow-file-dnd");
     const wfFileUploadInput = screen.getByTestId("story-workflow-file-upload");
     const reactFlowContainer = screen.queryByTestId("diagram-container");