diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3cc15d92..5b863e9a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,20 @@ All notable changes to ResolutionFlow are documented here.
 
 ## [Unreleased]
 
+## [2026-04-04] Network Diagram Editor UX Improvements
+
+### Added
+- Snap-to-grid (20px) on Network Diagram canvas — nodes align consistently when dragged
+- NodeResizer on group nodes (subnet/VLAN/site/DMZ) — select a group and drag its handles to resize
+- Group node dimensions now saved to and restored from the backend on reload
+
+### Fixed
+- Connection edges now render as straight lines instead of orthogonal bent paths
+- ISP device now appears inside the Cloud category in the sidebar instead of a standalone "Internet" section; respects search and item count
+- Group nodes now restore correctly as `type: 'group'` on diagram load (previously loaded as `type: 'device'`, breaking group display after save)
+
+---
+
 ### Added
 - Tree Templates + Import/Export marketplace (#66)
 - Recurring Issue Detection — client-specific pattern alerts (#60)
diff --git a/frontend/src/components/network/NetworkCanvas.tsx b/frontend/src/components/network/NetworkCanvas.tsx
index 1c6569b8..307e047a 100644
--- a/frontend/src/components/network/NetworkCanvas.tsx
+++ b/frontend/src/components/network/NetworkCanvas.tsx
@@ -85,6 +85,8 @@ export function NetworkCanvas({
         defaultEdgeOptions={{ type: 'connection' }}
         deleteKeyCode={['Backspace', 'Delete']}
         multiSelectionKeyCode="Shift"
+        snapToGrid={true}
+        snapGrid={[20, 20]}
         fitView
         className="bg-page"
       >
diff --git a/frontend/src/components/network/edges/ConnectionEdge.tsx b/frontend/src/components/network/edges/ConnectionEdge.tsx
index 0e38ba72..2d79b120 100644
--- a/frontend/src/components/network/edges/ConnectionEdge.tsx
+++ b/frontend/src/components/network/edges/ConnectionEdge.tsx
@@ -1,5 +1,5 @@
 import { memo } from 'react'
-import { SmoothStepEdge, EdgeLabelRenderer, type EdgeProps } from '@xyflow/react'
+import { BaseEdge, EdgeLabelRenderer, getStraightPath, type EdgeProps } from '@xyflow/react'
 
 interface ConnectionEdgeData {
   connectionType?: string
@@ -24,10 +24,17 @@ function ConnectionEdgeComponent(props: EdgeProps) {
   const connectionType = edgeData?.connectionType || 'ethernet'
   const style = CONNECTION_STYLES[connectionType] || DEFAULT_STYLE
 
+  const [edgePath, labelX, labelY] = getStraightPath({
+    sourceX: props.sourceX,
+    sourceY: props.sourceY,
+    targetX: props.targetX,
+    targetY: props.targetY,
+  })
+
   return (
     <>
-      <SmoothStepEdge
-        {...props}
+      <BaseEdge
+        path={edgePath}
         style={{
           ...style,
           ...(props.selected ? { stroke: '#60a5fa', strokeWidth: style.strokeWidth + 1 } : {}),
@@ -39,7 +46,7 @@ function ConnectionEdgeComponent(props: EdgeProps) {
             className="nodrag nopan rounded bg-page px-1.5 py-0.5 text-[10px] text-muted-foreground"
             style={{
               position: 'absolute',
-              transform: `translate(-50%, -50%) translate(${(props.sourceX + props.targetX) / 2}px, ${(props.sourceY + props.targetY) / 2}px)`,
+              transform: `translate(-50%, -50%) translate(${labelX}px, ${labelY}px)`,
               pointerEvents: 'all',
             }}
           >
diff --git a/frontend/src/components/network/panels/DeviceToolbar.tsx b/frontend/src/components/network/panels/DeviceToolbar.tsx
index 53411006..22f59669 100644
--- a/frontend/src/components/network/panels/DeviceToolbar.tsx
+++ b/frontend/src/components/network/panels/DeviceToolbar.tsx
@@ -84,9 +84,13 @@ export function DeviceToolbar({ deviceTypes, onDeviceTypesChange }: DeviceToolba
 
       <div className="flex-1 overflow-y-auto px-2 pb-2">
         {CATEGORY_ORDER.map(cat => {
-          const items = filteredByCategory[cat]
-          if (!items?.length) return null
+          const items = filteredByCategory[cat] || []
+          const isCloud = cat === 'cloud'
+          const ispMatchesSearch = !search || 'isp'.includes(search.toLowerCase()) || 'internet service provider'.includes(search.toLowerCase())
+          const showIsp = isCloud && ispMatchesSearch
+          if (!items.length && !showIsp) return null
           const collapsed = collapsedCategories.has(cat)
+          const totalCount = items.length + (showIsp ? 1 : 0)
 
           return (
             <div key={cat} className="mb-1">
@@ -96,7 +100,7 @@ export function DeviceToolbar({ deviceTypes, onDeviceTypesChange }: DeviceToolba
               >
                 {collapsed ? <ChevronRight size={12} /> : <ChevronDown size={12} />}
                 {CATEGORY_LABELS[cat] || cat}
-                <span className="ml-auto text-[10px] font-normal">{items.length}</span>
+                <span className="ml-auto text-[10px] font-normal">{totalCount}</span>
               </button>
               {!collapsed && (
                 <div className="flex flex-col gap-0.5">
@@ -115,6 +119,24 @@ export function DeviceToolbar({ deviceTypes, onDeviceTypesChange }: DeviceToolba
                       </div>
                     )
                   })}
+                  {showIsp && (
+                    <div
+                      draggable
+                      onDragStart={e => {
+                        e.dataTransfer.setData('application/reactflow-device', JSON.stringify({
+                          slug: 'isp',
+                          label: 'ISP',
+                          category: 'cloud',
+                        }))
+                        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 active:scale-[0.98] transition-transform"
+                    >
+                      <GripVertical size={12} className="shrink-0 text-muted-foreground/50" />
+                      <Globe size={14} style={{ color: 'var(--color-accent)' }} />
+                      <span>ISP</span>
+                    </div>
+                  )}
                 </div>
               )}
             </div>
@@ -122,31 +144,6 @@ export function DeviceToolbar({ deviceTypes, onDeviceTypesChange }: DeviceToolba
         })}
       </div>
 
-      {/* Internet 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">
-          Internet
-        </div>
-        <div className="flex flex-col gap-0.5">
-          <div
-            draggable
-            onDragStart={e => {
-              e.dataTransfer.setData('application/reactflow-device', JSON.stringify({
-                slug: 'isp',
-                label: 'ISP',
-                category: 'cloud',
-              }))
-              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 active:scale-[0.98] transition-transform"
-          >
-            <GripVertical size={12} className="shrink-0 text-muted-foreground/50" />
-            <Globe size={14} style={{ color: 'var(--color-accent)' }} />
-            <span>ISP</span>
-          </div>
-        </div>
-      </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">
diff --git a/frontend/src/components/network/ui/labeled-group-node.tsx b/frontend/src/components/network/ui/labeled-group-node.tsx
index 18127dc0..ecab2c80 100644
--- a/frontend/src/components/network/ui/labeled-group-node.tsx
+++ b/frontend/src/components/network/ui/labeled-group-node.tsx
@@ -1,5 +1,5 @@
 import type { ReactNode, ComponentProps } from 'react'
-import { Panel, type NodeProps, type PanelPosition } from '@xyflow/react'
+import { Panel, NodeResizer, type NodeProps, type PanelPosition } from '@xyflow/react'
 import { BaseNode } from './base-node'
 import { cn } from '@/lib/utils'
 
@@ -43,17 +43,26 @@ export function GroupNode({ data, selected }: NodeProps) {
   const label = nodeData.label || 'Group'
 
   return (
-    <BaseNode
-      className={cn(
-        'h-full w-full min-h-[200px] min-w-[300px] overflow-hidden rounded-lg bg-elevated/30 border-default/50',
-        selected && 'border-accent',
-      )}
-    >
-      <Panel className="m-0 p-0" position="top-left">
-        <GroupNodeLabel className={getLabelClassName('top-left')}>
-          {label}
-        </GroupNodeLabel>
-      </Panel>
-    </BaseNode>
+    <>
+      <NodeResizer
+        isVisible={selected}
+        minWidth={150}
+        minHeight={100}
+        lineStyle={{ borderColor: 'var(--color-accent)', borderWidth: 1 }}
+        handleStyle={{ width: 8, height: 8, borderColor: 'var(--color-accent)', background: 'var(--color-card)' }}
+      />
+      <BaseNode
+        className={cn(
+          'h-full w-full min-h-[100px] min-w-[150px] overflow-hidden rounded-lg bg-elevated/30 border-default/50',
+          selected && 'border-accent',
+        )}
+      >
+        <Panel className="m-0 p-0" position="top-left">
+          <GroupNodeLabel className={getLabelClassName('top-left')}>
+            {label}
+          </GroupNodeLabel>
+        </Panel>
+      </BaseNode>
+    </>
   )
 }
diff --git a/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx b/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx
index 0ddcb4eb..cd178324 100644
--- a/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx
+++ b/frontend/src/pages/NetworkDiagrams/DiagramEditor.tsx
@@ -115,16 +115,30 @@ function DiagramEditorInner() {
         setAssetName(diagram.asset_name)
         setDescription(diagram.description)
         setNodes(
-          diagram.nodes.map(n => ({
-            id: n.id,
-            type: 'device',
-            position: n.position,
-            data: {
-              label: n.label,
-              deviceType: n.type,
-              properties: n.properties,
-            } satisfies DeviceNodeData,
-          }))
+          diagram.nodes.map(n => {
+            if (n.nodeType === 'group') {
+              return {
+                id: n.id,
+                type: 'group',
+                position: n.position,
+                style: n.style || { width: 300, height: 200 },
+                data: {
+                  label: n.label,
+                  groupType: n.type,
+                },
+              }
+            }
+            return {
+              id: n.id,
+              type: 'device',
+              position: n.position,
+              data: {
+                label: n.label,
+                deviceType: n.type,
+                properties: n.properties,
+              } satisfies DeviceNodeData,
+            }
+          })
         )
         setEdges(
           diagram.edges.map(e => ({
@@ -155,6 +169,8 @@ function DiagramEditorInner() {
     return getNodes().map(n => {
       if (n.type === 'group') {
         const data = n.data as Record<string, unknown>
+        const width = typeof n.style?.width === 'number' ? n.style.width : (n.measured?.width ?? 300)
+        const height = typeof n.style?.height === 'number' ? n.style.height : (n.measured?.height ?? 200)
         return {
           id: n.id,
           type: (data.groupType as string) || 'subnet',
@@ -162,7 +178,7 @@ function DiagramEditorInner() {
           position: n.position,
           properties: {} as DeviceProperties,
           nodeType: 'group',
-          style: n.style || null,
+          style: { width, height },
         }
       }
       const data = n.data as unknown as DeviceNodeData
diff --git a/frontend/src/types/network-diagram.ts b/frontend/src/types/network-diagram.ts
index cfca8cc0..dd02155d 100644
--- a/frontend/src/types/network-diagram.ts
+++ b/frontend/src/types/network-diagram.ts
@@ -16,6 +16,8 @@ export interface DiagramNode {
   label: string
   position: { x: number; y: number }
   properties: DeviceProperties
+  nodeType?: string
+  style?: { width?: number; height?: number } | null
 }
 
 export interface DiagramEdge {