diff --git a/.cursor/rules/git-diff-minimization.mdc b/.cursor/rules/git-diff-minimization.mdc
new file mode 100644
index 00000000..31512a55
--- /dev/null
+++ b/.cursor/rules/git-diff-minimization.mdc
@@ -0,0 +1,16 @@
+---
+description: 
+globs: 
+---
+Please make only the necessary inline changes to accomplish this task without reformatting or displacing surrounding code. I need to keep my git diffs minimal.
+
+When editing, please use this format for your changes:
+1. Identify exact line numbers needing modification
+2. Show only the specific changes required (not entire functions)
+3. Keep existing indentation and formatting
+
+When making changes:
+- Do not reformat entire functions
+- Maintain existing indentation style
+- Do not adjust blank lines or spacing
+- Do not rearrange imports or declarations
\ No newline at end of file
diff --git a/apps/web/src/components/artifacts/ArtifactLoading.tsx b/apps/web/src/components/artifacts/ArtifactLoading.tsx
index a38a2771..015c9c82 100644
--- a/apps/web/src/components/artifacts/ArtifactLoading.tsx
+++ b/apps/web/src/components/artifacts/ArtifactLoading.tsx
@@ -1,38 +1,44 @@
 import { cn } from "@/lib/utils";
 import { Skeleton } from "../ui/skeleton";
+import { motion } from "framer-motion";
 
 export function ArtifactLoading() {
   return (
-    <div className="w-full h-full flex flex-col">
-      <div className="flex items-center justify-between m-4">
-        <Skeleton className="w-56 h-10" />
-        <div className="flex items-center justify-center gap-2">
-          <Skeleton className="w-6 h-6" />
-          <Skeleton className="w-16 h-6" />
-          <Skeleton className="w-6 h-6" />
+    <motion.div
+      className="w-[80%] max-w-3xl bg-white rounded-lg shadow-lg p-6"
+      initial={{ opacity: 0, scale: 0.9 }}
+      animate={{ opacity: 1, scale: 1 }}
+      transition={{ duration: 0.3 }}
+    >
+      <div className="flex flex-col gap-6">
+        <div className="flex items-center justify-between">
+          <Skeleton className="w-56 h-8" />
+          <div className="flex items-center gap-2">
+            <Skeleton className="w-6 h-6 rounded-full" />
+            <Skeleton className="w-16 h-6" />
+            <Skeleton className="w-6 h-6 rounded-full" />
+          </div>
         </div>
-        <div className="flex items-center justify-end gap-2">
-          <Skeleton className="w-10 h-10 rounded-md" />
-          <Skeleton className="w-10 h-10 rounded-md" />
+
+        <div className="flex flex-col gap-3">
+          {Array.from({ length: 8 }).map((_, i) => (
+            <Skeleton
+              key={i}
+              className={cn(
+                "h-6",
+                ["w-1/4", "w-1/3", "w-2/5", "w-1/2", "w-3/5", "w-2/3", "w-3/4"][
+                  Math.floor(Math.random() * 7)
+                ]
+              )}
+            />
+          ))}
+        </div>
+
+        <div className="flex items-center justify-end gap-2 mt-4">
+          <Skeleton className="w-12 h-12 rounded-2xl" />
+          <Skeleton className="w-12 h-12 rounded-2xl" />
         </div>
       </div>
-      <div className="flex flex-col gap-1 m-4">
-        {Array.from({ length: 25 }).map((_, i) => (
-          <Skeleton
-            key={i}
-            className={cn(
-              "h-5",
-              ["w-1/4", "w-1/3", "w-2/5", "w-1/2", "w-3/5", "w-2/3", "w-3/4"][
-                Math.floor(Math.random() * 7)
-              ]
-            )}
-          />
-        ))}
-      </div>
-      <div className="flex items-center justify-end gap-2 mt-auto m-4">
-        <Skeleton className="w-12 h-12 rounded-2xl" />
-        <Skeleton className="w-12 h-12 rounded-2xl" />
-      </div>
-    </div>
+    </motion.div>
   );
 }
diff --git a/apps/web/src/components/artifacts/ArtifactRenderer.tsx b/apps/web/src/components/artifacts/ArtifactRenderer.tsx
index 7a2caf4a..93e857b9 100644
--- a/apps/web/src/components/artifacts/ArtifactRenderer.tsx
+++ b/apps/web/src/components/artifacts/ArtifactRenderer.tsx
@@ -64,6 +64,16 @@ function ArtifactRendererComponent(props: ArtifactRendererProps) {
   const [inputValue, setInputValue] = useState("");
   const [isHoveringOverArtifact, setIsHoveringOverArtifact] = useState(false);
   const [isValidSelectionOrigin, setIsValidSelectionOrigin] = useState(false);
+  const [showLoading, setShowLoading] = useState(false);
+
+  useEffect(() => {
+    // Show loading state while generating artifact
+    if (isStreaming && graphData.currentNode === "generateArtifact") {
+      setShowLoading(true);
+    } else {
+      setShowLoading(false);
+    }
+  }, [isStreaming, graphData.currentNode]);
 
   const handleMouseUp = useCallback(() => {
     const selection = window.getSelection();
@@ -288,10 +298,16 @@ function ArtifactRendererComponent(props: ArtifactRendererProps) {
     ? getArtifactContent(artifact)
     : undefined;
 
-  if (!artifact && isStreaming) {
-    return <ArtifactLoading />;
+  // Show loading state only when generating a new artifact
+  if (showLoading) {
+    return (
+      <div className="w-full h-full flex items-center justify-center">
+        <ArtifactLoading />
+      </div>
+    );
   }
 
+  // Show empty state when no artifact exists
   if (!artifact || !currentArtifactContent) {
     return <div className="w-full h-full"></div>;
   }
diff --git a/apps/web/src/components/canvas/canvas.tsx b/apps/web/src/components/canvas/canvas.tsx
index 237c0fac..9fbba759 100644
--- a/apps/web/src/components/canvas/canvas.tsx
+++ b/apps/web/src/components/canvas/canvas.tsx
@@ -28,19 +28,22 @@ import {
 } from "@/components/ui/resizable";
 import { CHAT_COLLAPSED_QUERY_PARAM } from "@/constants";
 import { useRouter, useSearchParams } from "next/navigation";
+import { motion, AnimatePresence } from "framer-motion";
 
 export function CanvasComponent() {
   const { graphData } = useGraphContext();
   const { setModelName, setModelConfig } = useThreadContext();
-  const { setArtifact, chatStarted, setChatStarted } = graphData;
+  const { setArtifact, chatStarted, setChatStarted, isStreaming } = graphData;
   const { toast } = useToast();
   const [isEditing, setIsEditing] = useState(false);
   const [webSearchResultsOpen, setWebSearchResultsOpen] = useState(false);
   const [chatCollapsed, setChatCollapsed] = useState(false);
+  const [isArtifactAnimating, setIsArtifactAnimating] = useState(false);
 
   const searchParams = useSearchParams();
   const router = useRouter();
   const chatCollapsedSearchParam = searchParams.get(CHAT_COLLAPSED_QUERY_PARAM);
+
   useEffect(() => {
     try {
       if (chatCollapsedSearchParam) {
@@ -67,6 +70,7 @@ export function CanvasComponent() {
       return;
     }
     setChatStarted(true);
+    setIsArtifactAnimating(true);
 
     let artifactContent: ArtifactCodeV3 | ArtifactMarkdownV3;
     if (type === "code" && language) {
@@ -90,11 +94,13 @@ export function CanvasComponent() {
       currentIndex: 1,
       contents: [artifactContent],
     };
-    // Do not worry about existing items in state. This should
-    // never occur since this action can only be invoked if
-    // there are no messages/artifacts in the thread.
     setArtifact(newArtifact);
     setIsEditing(true);
+
+    // Reset animation state after animation completes
+    setTimeout(() => {
+      setIsArtifactAnimating(false);
+    }, 2000);
   };
 
   return (
@@ -110,7 +116,6 @@ export function CanvasComponent() {
               router.replace(`?${queryParams.toString()}`, { scroll: false });
             }}
             switchSelectedThreadCallback={(thread) => {
-              // Chat should only be "started" if there are messages present
               if ((thread.values as Record<string, any>)?.messages?.length) {
                 setChatStarted(true);
                 if (thread?.metadata?.customModelName) {
@@ -146,7 +151,7 @@ export function CanvasComponent() {
           defaultSize={25}
           minSize={15}
           maxSize={50}
-          className="transition-all duration-700 h-screen mr-auto bg-gray-50/70 shadow-inner-right"
+          className="h-screen bg-gray-50/70 shadow-inner-right"
           id="chat-panel-main"
           order={1}
         >
@@ -162,7 +167,6 @@ export function CanvasComponent() {
                 router.replace(`?${queryParams.toString()}`, { scroll: false });
               }}
               switchSelectedThreadCallback={(thread) => {
-                // Chat should only be "started" if there are messages present
                 if ((thread.values as Record<string, any>)?.messages?.length) {
                   setChatStarted(true);
                   if (thread?.metadata?.customModelName) {
@@ -175,9 +179,9 @@ export function CanvasComponent() {
 
                   if (thread?.metadata?.modelConfig) {
                     setModelConfig(
-                      (thread?.metadata.customModelName ??
+                      (thread?.metadata?.customModelName ??
                         DEFAULT_MODEL_NAME) as ALL_MODEL_NAMES,
-                      (thread.metadata.modelConfig ??
+                      (thread.metadata?.modelConfig ??
                         DEFAULT_MODEL_CONFIG) as CustomModelConfig
                     );
                   } else {
@@ -195,44 +199,91 @@ export function CanvasComponent() {
         </ResizablePanel>
       )}
 
-      {chatStarted && (
-        <>
-          <ResizableHandle />
-          <ResizablePanel
-            defaultSize={chatCollapsed ? 100 : 75}
-            maxSize={85}
-            minSize={50}
-            id="canvas-panel"
-            order={2}
-            className="flex flex-row w-full"
-          >
-            <div className="w-full ml-auto">
-              <ArtifactRenderer
-                chatCollapsed={chatCollapsed}
-                setChatCollapsed={(c) => {
-                  setChatCollapsed(c);
-                  const queryParams = new URLSearchParams(
-                    searchParams.toString()
-                  );
-                  queryParams.set(
-                    CHAT_COLLAPSED_QUERY_PARAM,
-                    JSON.stringify(c)
-                  );
-                  router.replace(`?${queryParams.toString()}`, {
-                    scroll: false,
-                  });
-                }}
-                setIsEditing={setIsEditing}
-                isEditing={isEditing}
-              />
-            </div>
-            <WebSearchResults
-              open={webSearchResultsOpen}
-              setOpen={setWebSearchResultsOpen}
-            />
-          </ResizablePanel>
-        </>
-      )}
+      {chatStarted &&
+        (graphData.artifact ||
+          (isStreaming && graphData.currentNode === "generateArtifact")) && (
+          <>
+            <ResizableHandle />
+            <ResizablePanel
+              defaultSize={chatCollapsed ? 100 : 75}
+              maxSize={85}
+              minSize={50}
+              id="canvas-panel"
+              order={2}
+              className="relative bg-white"
+            >
+              <motion.div
+                className="absolute inset-0 bg-gradient-to-b from-blue-50/50 to-white"
+                initial={
+                  isArtifactAnimating
+                    ? {
+                        scale: 0.4,
+                        opacity: 0,
+                        x: "50%",
+                        y: "50%",
+                        width: "60%",
+                        height: "60%",
+                        margin: "auto",
+                        borderRadius: "1rem",
+                        boxShadow:
+                          "0 4px 6px -1px rgb(0 0 0 / 0.1), 0 2px 4px -2px rgb(0 0 0 / 0.1)",
+                      }
+                    : false
+                }
+                animate={
+                  isArtifactAnimating
+                    ? {
+                        scale: 1,
+                        opacity: 1,
+                        x: 0,
+                        y: 0,
+                        width: "100%",
+                        height: "100%",
+                        margin: 0,
+                        borderRadius: 0,
+                        boxShadow: "none",
+                        transition: {
+                          type: "spring",
+                          stiffness: 200,
+                          damping: 25,
+                          duration: 1.5,
+                        },
+                      }
+                    : false
+                }
+              >
+                <div className="w-full h-full">
+                  <ArtifactRenderer
+                    chatCollapsed={chatCollapsed}
+                    setChatCollapsed={(c) => {
+                      setChatCollapsed(c);
+                      const queryParams = new URLSearchParams(
+                        searchParams.toString()
+                      );
+                      queryParams.set(
+                        CHAT_COLLAPSED_QUERY_PARAM,
+                        JSON.stringify(c)
+                      );
+                      router.replace(`?${queryParams.toString()}`, {
+                        scroll: false,
+                      });
+                    }}
+                    setIsEditing={setIsEditing}
+                    isEditing={isEditing}
+                  />
+                </div>
+              </motion.div>
+              {!chatCollapsed && (
+                <div className="absolute right-0 top-0 h-full">
+                  <WebSearchResults
+                    open={webSearchResultsOpen}
+                    setOpen={setWebSearchResultsOpen}
+                  />
+                </div>
+              )}
+            </ResizablePanel>
+          </>
+        )}
     </ResizablePanelGroup>
   );
 }
diff --git a/apps/web/src/components/chat-interface/thread.tsx b/apps/web/src/components/chat-interface/thread.tsx
index 539a4748..bd2be4e3 100644
--- a/apps/web/src/components/chat-interface/thread.tsx
+++ b/apps/web/src/components/chat-interface/thread.tsx
@@ -149,19 +149,23 @@ export const Thread: FC<ThreadProps> = (props: ThreadProps) => {
             searchEnabled={props.searchEnabled}
           />
         )}
-        <ThreadPrimitive.Messages
-          components={{
-            UserMessage: UserMessage,
-            AssistantMessage: (prop) => (
-              <AssistantMessage
-                {...prop}
-                feedbackSubmitted={feedbackSubmitted}
-                setFeedbackSubmitted={setFeedbackSubmitted}
-                runId={runId}
-              />
-            ),
-          }}
-        />
+        <div className="flex justify-center">
+          <div className="w-full max-w-2xl">
+            <ThreadPrimitive.Messages
+              components={{
+                UserMessage: UserMessage,
+                AssistantMessage: (prop) => (
+                  <AssistantMessage
+                    {...prop}
+                    feedbackSubmitted={feedbackSubmitted}
+                    setFeedbackSubmitted={setFeedbackSubmitted}
+                    runId={runId}
+                  />
+                ),
+              }}
+            />
+          </div>
+        </div>
       </ThreadPrimitive.Viewport>
       <div className="mt-4 flex w-full flex-col items-center justify-end rounded-t-lg bg-inherit pb-4 px-4">
         <ThreadScrollToBottom />
diff --git a/apps/web/src/contexts/GraphContext.tsx b/apps/web/src/contexts/GraphContext.tsx
index 645d5b28..aff80f96 100644
--- a/apps/web/src/contexts/GraphContext.tsx
+++ b/apps/web/src/contexts/GraphContext.tsx
@@ -77,6 +77,7 @@ interface GraphData {
   artifactUpdateFailed: boolean;
   chatStarted: boolean;
   searchEnabled: boolean;
+  currentNode: string | undefined;
   setSearchEnabled: Dispatch<SetStateAction<boolean>>;
   setChatStarted: Dispatch<SetStateAction<boolean>>;
   setIsStreaming: Dispatch<SetStateAction<boolean>>;
@@ -142,6 +143,7 @@ export function GraphProvider({ children }: { children: ReactNode }) {
   const [error, setError] = useState(false);
   const [artifactUpdateFailed, setArtifactUpdateFailed] = useState(false);
   const [searchEnabled, setSearchEnabled] = useState(false);
+  const [currentNode, setCurrentNode] = useState<string | undefined>(undefined);
 
   const [_, setWebSearchResultsId] = useQueryState(
     WEB_SEARCH_RESULTS_QUERY_PARAM
@@ -458,6 +460,7 @@ export function GraphProvider({ children }: { children: ReactNode }) {
                 langgraphNode
               )
             ) {
+              setCurrentNode(langgraphNode);
               const message = extractStreamDataChunk(nodeChunk);
               if (!followupMessageId) {
                 followupMessageId = message.id;
@@ -468,6 +471,7 @@ export function GraphProvider({ children }: { children: ReactNode }) {
             }
 
             if (langgraphNode === "generateArtifact") {
+              setCurrentNode("generateArtifact");
               const message = extractStreamDataChunk(nodeChunk);
 
               // Accumulate content
@@ -1426,6 +1430,7 @@ export function GraphProvider({ children }: { children: ReactNode }) {
       chatStarted,
       artifactUpdateFailed,
       searchEnabled,
+      currentNode,
       setSearchEnabled,
       setChatStarted,
       setIsStreaming,