diff --git a/frontend/src/components/network/panels/DeviceToolbar.tsx b/frontend/src/components/network/panels/DeviceToolbar.tsx
index dd13ce96..fa5ea810 100644
--- a/frontend/src/components/network/panels/DeviceToolbar.tsx
+++ b/frontend/src/components/network/panels/DeviceToolbar.tsx
@@ -1,5 +1,5 @@
 import { useState, useMemo, useCallback } from 'react'
-import { Search, Plus, ChevronDown, ChevronRight, X } from 'lucide-react'
+import { Search, Plus, ChevronDown, ChevronRight, X, LayoutGrid } from 'lucide-react'
 import { getDeviceRenderConfig, CATEGORY_LABELS, CATEGORY_ORDER } from '../nodes/deviceRegistry'
 import type { DeviceTypeResponse, DeviceTypeCreate } from '@/types'
 import { deviceTypesApi } from '@/api'
@@ -121,6 +121,34 @@ export function DeviceToolbar({ deviceTypes, onDeviceTypesChange }: DeviceToolba
         })}
       </div>
 
+      {/* Grouping section */}
+      <div className="mb-1 mt-2 border-t border-default pt-2">
+        <div className="flex items-center gap-1 px-1 py-1 text-[10px] font-semibold uppercase tracking-wider text-muted-foreground">
+          Grouping
+        </div>
+        <div className="flex flex-col gap-0.5">
+          {[
+            { slug: 'subnet', label: 'Subnet' },
+            { slug: 'vlan', label: 'VLAN' },
+            { slug: 'site', label: 'Site' },
+            { slug: 'dmz', label: 'DMZ' },
+          ].map(item => (
+            <div
+              key={item.slug}
+              draggable
+              onDragStart={e => {
+                e.dataTransfer.setData('application/reactflow-group', JSON.stringify(item))
+                e.dataTransfer.effectAllowed = 'move'
+              }}
+              className="flex cursor-grab items-center gap-2 rounded px-2 py-1.5 text-xs text-primary hover:bg-elevated active:cursor-grabbing"
+            >
+              <LayoutGrid size={14} className="text-muted-foreground" />
+              <span>{item.label}</span>
+            </div>
+          ))}
+        </div>
+      </div>
+
       <div className="border-t border-default p-2">
         {!showAddForm ? (
           <button
diff --git a/frontend/src/components/network/panels/PropertiesPanel.tsx b/frontend/src/components/network/panels/PropertiesPanel.tsx
index ee9b6b63..12ac1f8d 100644
--- a/frontend/src/components/network/panels/PropertiesPanel.tsx
+++ b/frontend/src/components/network/panels/PropertiesPanel.tsx
@@ -10,6 +10,7 @@ interface PropertiesPanelProps {
   selectedEdge: Edge | null
   onNodeUpdate: (nodeId: string, data: Partial<DeviceNodeData>) => void
   onEdgeUpdate: (edgeId: string, data: Partial<DiagramEdge>) => void
+  onEdgeTypeChange: (edgeId: string, edgeType: string) => void
   onDeleteNode: (nodeId: string) => void
   onDeleteEdge: (edgeId: string) => void
 }
@@ -50,6 +51,7 @@ export function PropertiesPanel({
   selectedEdge,
   onNodeUpdate,
   onEdgeUpdate,
+  onEdgeTypeChange,
   onDeleteNode,
   onDeleteEdge,
 }: PropertiesPanelProps) {
@@ -137,6 +139,26 @@ export function PropertiesPanel({
               mono
             />
           </div>
+          <div className="flex items-center justify-between">
+            <FieldLabel>Show Traffic</FieldLabel>
+            <button
+              onClick={() => {
+                const newType = selectedEdge.type === 'animated' ? 'connection' : 'animated'
+                onEdgeTypeChange(selectedEdge.id, newType)
+              }}
+              className={cn(
+                'relative h-5 w-9 rounded-full transition-colors',
+                selectedEdge.type === 'animated' ? 'bg-accent' : 'bg-elevated',
+              )}
+            >
+              <span
+                className={cn(
+                  'absolute top-0.5 left-0.5 h-4 w-4 rounded-full bg-white transition-transform',
+                  selectedEdge.type === 'animated' && 'translate-x-4',
+                )}
+              />
+            </button>
+          </div>
         </div>
         <div className="border-t border-default p-3">
           <button
diff --git a/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx b/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx
index 8abb6ffa..8c0b916a 100644
--- a/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx
+++ b/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx
@@ -200,10 +200,7 @@ function DiagramEditorInner() {
 
   const onDrop = useCallback((event: React.DragEvent) => {
     event.preventDefault()
-    const raw = event.dataTransfer.getData('application/reactflow-device')
-    if (!raw) return
 
-    const { slug, label, category } = JSON.parse(raw) as { slug: string; label: string; category: string }
     const reactFlowBounds = (event.target as HTMLElement).closest('.react-flow')?.getBoundingClientRect()
     if (!reactFlowBounds) return
 
@@ -212,29 +209,53 @@ function DiagramEditorInner() {
       y: event.clientY - reactFlowBounds.top,
     }
 
-    const newNode: Node = {
-      id: `device-${Date.now()}-${Math.random().toString(36).slice(2, 7)}`,
-      type: 'device',
-      position,
-      data: {
-        label,
-        deviceType: slug,
-        category,
-        properties: {
-          hostname: null,
-          ip: null,
-          subnet: null,
-          vendor: null,
-          model: null,
-          role: null,
-          vlan: null,
-          notes: null,
-          status: 'unknown',
-        } satisfies DeviceProperties,
-      } satisfies DeviceNodeData,
+    // Handle device drops
+    const deviceRaw = event.dataTransfer.getData('application/reactflow-device')
+    if (deviceRaw) {
+      const { slug, label, category } = JSON.parse(deviceRaw) as { slug: string; label: string; category: string }
+      const newNode: Node = {
+        id: `device-${Date.now()}-${Math.random().toString(36).slice(2, 7)}`,
+        type: 'device',
+        position,
+        data: {
+          label,
+          deviceType: slug,
+          category,
+          properties: {
+            hostname: null,
+            ip: null,
+            subnet: null,
+            vendor: null,
+            model: null,
+            role: null,
+            vlan: null,
+            notes: null,
+            status: 'unknown',
+          } satisfies DeviceProperties,
+        } satisfies DeviceNodeData,
+      }
+      setNodes(nds => [...nds, newNode])
+      setIsDirty(true)
+      return
+    }
+
+    // Handle group drops
+    const groupRaw = event.dataTransfer.getData('application/reactflow-group')
+    if (groupRaw) {
+      const { slug, label } = JSON.parse(groupRaw) as { slug: string; label: string }
+      const newNode: Node = {
+        id: `group-${Date.now()}-${Math.random().toString(36).slice(2, 7)}`,
+        type: 'group',
+        position,
+        style: { width: 300, height: 200 },
+        data: {
+          label,
+          groupType: slug,
+        },
+      }
+      setNodes(nds => [...nds, newNode])
+      setIsDirty(true)
     }
-    setNodes(nds => [...nds, newNode])
-    setIsDirty(true)
   }, [setNodes])
 
   const handleNodeUpdate = useCallback((nodeId: string, updates: Partial<DeviceNodeData>) => {
@@ -262,6 +283,14 @@ function DiagramEditorInner() {
     setIsDirty(true)
   }, [setEdges])
 
+  const handleEdgeTypeChange = useCallback((edgeId: string, edgeType: string) => {
+    setEdges(eds => eds.map(e => {
+      if (e.id !== edgeId) return e
+      return { ...e, type: edgeType }
+    }))
+    setIsDirty(true)
+  }, [setEdges])
+
   const handleDeleteNode = useCallback((nodeId: string) => {
     setNodes(nds => nds.filter(n => n.id !== nodeId))
     setEdges(eds => eds.filter(e => e.source !== nodeId && e.target !== nodeId))
@@ -405,6 +434,7 @@ function DiagramEditorInner() {
           selectedEdge={selectedEdge}
           onNodeUpdate={handleNodeUpdate}
           onEdgeUpdate={handleEdgeUpdate}
+          onEdgeTypeChange={handleEdgeTypeChange}
           onDeleteNode={handleDeleteNode}
           onDeleteEdge={handleDeleteEdge}
         />