diff --git a/canvas/src/store/__tests__/canvas-events.test.ts b/canvas/src/store/__tests__/canvas-events.test.ts
index f6e0924d4..5d60003c8 100644
--- a/canvas/src/store/__tests__/canvas-events.test.ts
+++ b/canvas/src/store/__tests__/canvas-events.test.ts
@@ -332,6 +332,105 @@ describe("handleCanvasEvent – WORKSPACE_PROVISIONING", () => {
     const bPos = lastNodes.find((n) => n.id === "ws-b")!.position;
     expect(bPos).toEqual({ x: 420, y: 100 }); // idx 1 = (100 + 320, 100)
   });
+
+  it("uses finalX/finalY from payload when parentId is set and parent exists in store", () => {
+    // Org-import child lands with explicit coords — these are server-computed
+    // parent-relative positions. The handler must trust them verbatim.
+    const parent = makeNode("parent-root", { name: "Root" });
+    const { get, set } = makeStore([parent]);
+
+    handleCanvasEvent(
+      makeMsg({
+        event: "WORKSPACE_PROVISIONING",
+        workspace_id: "child-org",
+        payload: {
+          name: "Org Child",
+          tier: 2,
+          parent_id: "parent-root",
+          x: 500,
+          y: 300,
+        },
+      }),
+      get,
+      set
+    );
+
+    const newNodes = (set.mock.calls[0][0] as { nodes: Node<WorkspaceNodeData>[] }).nodes;
+    expect(newNodes).toHaveLength(2);
+    const child = newNodes.find((n) => n.id === "child-org")!;
+
+    // Must use the server-provided coords, not grid
+    expect(child.position).toEqual({ x: 500, y: 300 });
+    // Must bind parentId so RF renders it nested inside the parent card
+    expect(child.parentId).toBe("parent-root");
+    expect(child.data.parentId).toBe("parent-root");
+    expect(child.data.name).toBe("Org Child");
+    expect(child.data.status).toBe("provisioning");
+  });
+
+  it("uses grid position when parentId is set but parent is NOT in store yet", () => {
+    // Rare WS-reorder: child event arrives before parent's PROVISIONING event.
+    // Must not crash — uses grid slot as fallback. Parent will reparent
+    // the child when it lands.
+    const { get, set } = makeStore([]);
+
+    handleCanvasEvent(
+      makeMsg({
+        event: "WORKSPACE_PROVISIONING",
+        workspace_id: "orphan-child",
+        payload: {
+          name: "Orphan",
+          parent_id: "unknown-parent",
+          x: 999,
+          y: 888,
+        },
+      }),
+      get,
+      set
+    );
+
+    const newNodes = (set.mock.calls[0][0] as { nodes: Node<WorkspaceNodeData>[] }).nodes;
+    const child = newNodes.find((n) => n.id === "orphan-child")!;
+
+    // Must NOT use finalX/finalY — parent isn't in store so grid slot is used
+    expect(child.position).not.toEqual({ x: 999, y: 888 });
+    // Grid slot for idx 0: (100, 100)
+    expect(child.position).toEqual({ x: 100, y: 100 });
+    // parentId is NOT set on the node when parent is unknown:
+    // the node will be reparented when the parent eventually lands
+    expect(child.data.parentId).not.toBe("unknown-parent");
+  });
+
+  it("no-op cascade: parent in store but no finalX/Y → grid position, no parentId", () => {
+    // Parent exists but payload has no x/y → must not crash, uses grid slot.
+    // parentId is NOT set because we don't have parent-relative coords.
+    const parent = makeNode("parent-exists");
+    const { get, set } = makeStore([parent]);
+
+    handleCanvasEvent(
+      makeMsg({
+        event: "WORKSPACE_PROVISIONING",
+        workspace_id: "child-no-coords",
+        payload: {
+          name: "No Coords",
+          parent_id: "parent-exists",
+          // no x or y
+        },
+      }),
+      get,
+      set
+    );
+
+    const newNodes = (set.mock.calls[0][0] as { nodes: Node<WorkspaceNodeData>[] }).nodes;
+    const child = newNodes.find((n) => n.id === "child-no-coords")!;
+
+    // Grid slot for idx 0: (100, 100)
+    expect(child.position).toEqual({ x: 100, y: 100 });
+    // parentId stays null (not undefined) when no finalX/Y — server has no
+    // position for this node, and the handler initialises parentId=null
+    expect(child.parentId).toBeUndefined();
+    expect(child.data.parentId).toBeNull();
+  });
 });
 
 // ---------------------------------------------------------------------------
diff --git a/canvas/src/store/__tests__/canvas.test.ts b/canvas/src/store/__tests__/canvas.test.ts
index e3410b147..02ea22884 100644
--- a/canvas/src/store/__tests__/canvas.test.ts
+++ b/canvas/src/store/__tests__/canvas.test.ts
@@ -848,6 +848,374 @@ describe("hydrationError", () => {
   });
 });
 
+// ---------- growParentsToFitChildren ----------
+//
+// growParentsToFitChildren walks every parent node and expands its width/height
+// so all children fit inside with padding. Collapsed parents are skipped (grow-
+// only, never shrink). Returns the same array reference when no changes are
+// needed, a new array when at least one parent grew.
+//
+// Constants (from canvas-topology.ts):
+//   CHILD_DEFAULT_WIDTH  = 240
+//   CHILD_DEFAULT_HEIGHT = 130
+//   PARENT_SIDE_PADDING   = 16
+//   PARENT_BOTTOM_PADDING  = 16
+//
+// For a child at (childX, childY) with size (childW, childH):
+//   requiredParentW = childX + childW + PARENT_SIDE_PADDING
+//   requiredParentH = childY + childH + PARENT_BOTTOM_PADDING
+//
+// Coverage targets:
+//   - Node with no parentId → skipped entirely (returns same node)
+//   - Parent with no children → skipped (kids.length === 0 → returns n)
+//   - Collapsed parent → skipped even when children overflow
+//   - Child fits within existing parent → no-op (requiredW <= currentW && requiredH <= currentH)
+//   - Child overflows parent width → grows width only
+//   - Child overflows parent height → grows height only
+//   - Child overflows both → grows both
+//   - Missing measured.width (falls back to width, then CHILD_DEFAULT_WIDTH)
+//   - Missing measured.height (falls back to height, then CHILD_DEFAULT_HEIGHT)
+//   - Missing parent measured.width (falls back to width, then 0)
+//   - Missing parent measured.height (falls back to height, then 0)
+//   - No change at all → returns same array reference (changed=false path)
+
+describe("growParentsToFitChildren", () => {
+  it("skips nodes with no parentId (standalone roots)", () => {
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "root",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Root", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 200, height: 150 },
+        },
+      ],
+    });
+
+    const before = useCanvasStore.getState().nodes;
+    useCanvasStore.getState().growParentsToFitChildren();
+    const after = useCanvasStore.getState().nodes;
+
+    // Same array reference (no change needed)
+    expect(after).toBe(before);
+  });
+
+  it("skips parent with no children (orphan parentId)", () => {
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "orphan",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          parentId: "nonexistent",
+          data: { name: "Orphan", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 100, height: 100 },
+        },
+      ],
+    });
+
+    const before = useCanvasStore.getState().nodes;
+    useCanvasStore.getState().growParentsToFitChildren();
+    const after = useCanvasStore.getState().nodes;
+
+    // Same array reference (parentId exists but no children reference it)
+    expect(after).toBe(before);
+    expect(after[0].measured).toEqual({ width: 100, height: 100 });
+  });
+
+  it("skips collapsed parents even when children overflow", () => {
+    // Child at (500, 400) → requires parent 500+240+16=756w, 400+130+16=546h
+    // Parent is collapsed AND tiny — must NOT grow
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: true, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 200, height: 150 },
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 500, y: 400 },
+          parentId: "parent",
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 240, height: 130 },
+        },
+      ],
+    });
+
+    const before = useCanvasStore.getState().nodes;
+    useCanvasStore.getState().growParentsToFitChildren();
+    const after = useCanvasStore.getState().nodes;
+
+    // Same reference (collapsed → skipped entirely)
+    expect(after).toBe(before);
+    const parent = after.find((n) => n.id === "parent")!;
+    expect(parent.measured).toEqual({ width: 200, height: 150 });
+  });
+
+  it("no-op when child fits within existing parent size", () => {
+    // Child at (0,0) 240x130 → requires 0+240+16=256w, 0+130+16=146h
+    // Parent is exactly 256×146 → fits perfectly
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 256, height: 146 },
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          parentId: "parent",
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 240, height: 130 },
+        },
+      ],
+    });
+
+    const before = useCanvasStore.getState().nodes;
+    useCanvasStore.getState().growParentsToFitChildren();
+    const after = useCanvasStore.getState().nodes;
+
+    // Same array reference (no change needed)
+    expect(after).toBe(before);
+    const parent = after.find((n) => n.id === "parent")!;
+    expect(parent.measured).toEqual({ width: 256, height: 146 });
+  });
+
+  it("grows parent width only when child overflows width but not height", () => {
+    // Child at (100, 0) 240x130 → requires 100+240+16=356w, 0+130+16=146h
+    // Parent is 256×146 → fits height, overflows width → grows to 356×146
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 256, height: 146 },
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 100, y: 0 },
+          parentId: "parent",
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 240, height: 130 },
+        },
+      ],
+    });
+
+    useCanvasStore.getState().growParentsToFitChildren();
+    const parent = useCanvasStore.getState().nodes.find((n) => n.id === "parent")!;
+
+    expect(parent.width).toBe(356); // 100+240+16
+    expect(parent.height).toBe(146); // unchanged
+  });
+
+  it("grows parent height only when child overflows height but not width", () => {
+    // Child at (0, 50) 240x130 → requires 0+240+16=256w, 50+130+16=196h
+    // Parent is 256×146 → fits width, overflows height → grows to 256×196
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 256, height: 146 },
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 0, y: 50 },
+          parentId: "parent",
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 240, height: 130 },
+        },
+      ],
+    });
+
+    useCanvasStore.getState().growParentsToFitChildren();
+    const parent = useCanvasStore.getState().nodes.find((n) => n.id === "parent")!;
+
+    expect(parent.width).toBe(256); // unchanged
+    expect(parent.height).toBe(196); // 50+130+16
+  });
+
+  it("grows parent in both dimensions when child overflows both", () => {
+    // Child at (200, 100) 240x130 → requires 200+240+16=456w, 100+130+16=246h
+    // Parent is 256×146 → grows to 456×246
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 256, height: 146 },
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 200, y: 100 },
+          parentId: "parent",
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 240, height: 130 },
+        },
+      ],
+    });
+
+    useCanvasStore.getState().growParentsToFitChildren();
+    const parent = useCanvasStore.getState().nodes.find((n) => n.id === "parent")!;
+
+    expect(parent.width).toBe(456);  // 200+240+16
+    expect(parent.height).toBe(246); // 100+130+16
+  });
+
+  it("uses CHILD_DEFAULT_WIDTH/HEIGHT when child has no measured or explicit dimensions", () => {
+    // Child with NO measured, NO width/height → falls back to 240×130 defaults
+    // Child at (500, 200) → requires 500+240+16=756w, 200+130+16=346h
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 100, height: 100 },
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 500, y: 200 },
+          parentId: "parent",
+          // No measured, no width/height → uses CHILD_DEFAULT_WIDTH=240, CHILD_DEFAULT_HEIGHT=130
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+        },
+      ],
+    });
+
+    useCanvasStore.getState().growParentsToFitChildren();
+    const parent = useCanvasStore.getState().nodes.find((n) => n.id === "parent")!;
+
+    expect(parent.width).toBe(756);  // 500+240+16
+    expect(parent.height).toBe(346); // 200+130+16
+  });
+
+  it("uses explicit width/height when measured is absent on child", () => {
+    // Child has width/height but NOT measured
+    // Child at (300, 50) with explicit 200×100 → requires 300+200+16=516w, 50+100+16=166h
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 200, height: 100 },
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 300, y: 50 },
+          parentId: "parent",
+          width: 200,
+          height: 100,
+          // No measured → falls back to width=200, height=100
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+        },
+      ],
+    });
+
+    useCanvasStore.getState().growParentsToFitChildren();
+    const parent = useCanvasStore.getState().nodes.find((n) => n.id === "parent")!;
+
+    expect(parent.width).toBe(516);  // 300+200+16
+    expect(parent.height).toBe(166); // 50+100+16
+  });
+
+  it("uses measured when present (takes precedence over explicit width/height)", () => {
+    // Child has both measured AND explicit width/height — measured should win
+    // Child at (0,0) measured=240×130 explicit=100×50 → uses measured
+    // Required: 0+240+16=256w, 0+130+16=146h
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 256, height: 146 }, // fits exactly
+        },
+        {
+          id: "child",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          parentId: "parent",
+          width: 100,   // ignored (measured present)
+          height: 50,   // ignored
+          measured: { width: 240, height: 130 },
+          data: { name: "Child", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+        },
+      ],
+    });
+
+    const before = useCanvasStore.getState().nodes;
+    useCanvasStore.getState().growParentsToFitChildren();
+    const after = useCanvasStore.getState().nodes;
+
+    // Same reference (measured fits exactly)
+    expect(after).toBe(before);
+  });
+
+  it("multiple children: grows to fit the furthest child in each dimension", () => {
+    // Child 1 at (0, 0) 240×130 → maxRight=240, maxBottom=130
+    // Child 2 at (300, 200) 240×130 → maxRight=540, maxBottom=330
+    // Required: 540+16=556w, 330+16=346h
+    useCanvasStore.setState({
+      nodes: [
+        {
+          id: "parent",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          data: { name: "Parent", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: null, currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 100, height: 100 },
+        },
+        {
+          id: "child1",
+          type: "workspaceNode",
+          position: { x: 0, y: 0 },
+          parentId: "parent",
+          data: { name: "Child1", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 240, height: 130 },
+        },
+        {
+          id: "child2",
+          type: "workspaceNode",
+          position: { x: 300, y: 200 },
+          parentId: "parent",
+          data: { name: "Child2", status: "online", tier: 1, agentCard: null, activeTasks: 0, collapsed: false, role: "agent", lastErrorRate: 0, lastSampleError: "", url: "", parentId: "parent", currentTask: "", needsRestart: false, runtime: "", budgetLimit: null },
+          measured: { width: 240, height: 130 },
+        },
+      ],
+    });
+
+    useCanvasStore.getState().growParentsToFitChildren();
+    const parent = useCanvasStore.getState().nodes.find((n) => n.id === "parent")!;
+
+    expect(parent.width).toBe(556);  // max(0+240, 300+240)+16
+    expect(parent.height).toBe(346); // max(0+130, 200+130)+16
+  });
+});
+
 // ---------- ACTIVITY_LOGGED event ----------
 
 describe("ACTIVITY_LOGGED event", () => {