diff --git a/packages/xod-client/src/core/styles/components/Link.scss b/packages/xod-client/src/core/styles/components/Link.scss
index 354cccb4..bef4b317 100644
--- a/packages/xod-client/src/core/styles/components/Link.scss
+++ b/packages/xod-client/src/core/styles/components/Link.scss
@@ -1,33 +1,40 @@
+@mixin link-parts-coloring($type-color) {
+  .line {
+    stroke: $type-color;
+  }
+
+  .end {
+    fill: $type-color;
+  }
+}
 
 .Link {
-  stroke: grey;
-  stroke-width: 2px;
+  .line {
+    stroke: grey;
+    stroke-width: 2px;
+  }
 
   &.string {
-    stroke: $color-datatype-string;
+    @include link-parts-coloring($color-datatype-string);
   }
 
   &.number {
-    stroke: $color-datatype-number;
+    @include link-parts-coloring($color-datatype-number);
   }
 
   &.bool {
-    stroke: $color-datatype-bool;
+    @include link-parts-coloring($color-datatype-bool);
   }
 
   &.pulse {
-    stroke: $color-datatype-pulse;
+    @include link-parts-coloring($color-datatype-pulse);
   }
 
   &:hover {
-    .line {
-      stroke: white;
-    }
+    @include link-parts-coloring(white);
   }
 
   &.is-selected {
-    .line {
-      stroke: #4ed5ec;
-    }
+    @include link-parts-coloring($color-canvas-selected);
   }
 }
diff --git a/packages/xod-client/src/core/styles/components/Pin.scss b/packages/xod-client/src/core/styles/components/Pin.scss
index c1e23423..32f180d2 100644
--- a/packages/xod-client/src/core/styles/components/Pin.scss
+++ b/packages/xod-client/src/core/styles/components/Pin.scss
@@ -1,17 +1,8 @@
 @mixin symbol-coloring($type-color) {
   stroke: $type-color;
 
-  $hover-color: lighten($type-color, 25%);
-
-  &:hover {
-    stroke: $hover-color
-  }
-
   &.is-connected {
     fill: $type-color;
-    &:hover {
-      fill: $hover-color
-    }
   }
 }
 
@@ -22,10 +13,6 @@
     stroke-width: 2px;
     filter: url(#dropshadow);
 
-    &:hover {
-      fill: color-canvas-hover($color-pin-fill);
-    }
-
     &.string {
       @include symbol-coloring($color-datatype-string);
     }
@@ -43,20 +30,24 @@
     }
   }
 
-  .label {
-    font-family: $font-family-condensed;
-    font-weight: 500;
-    font-size: 12px;
-    dominant-baseline: central;
-  }
+  &:hover {
+    .symbol {
+      &.string {
+        @include symbol-coloring(lighten($color-datatype-string, 25%));
+      }
 
-  .label.input {
-    fill: $color-pinlabel-input;
-  }
+      &.number {
+        @include symbol-coloring(lighten($color-datatype-number, 25%));
+      }
 
-  .label.output {
-    fill: $color-pinlabel-output;
-    font-weight: 700; // black font looks thinner
+      &.bool {
+        @include symbol-coloring(lighten($color-datatype-bool, 25%));
+      }
+
+      &.pulse {
+        @include symbol-coloring(lighten($color-datatype-pulse, 25%));
+      }
+    }
   }
 
   .linkingHighlight {
@@ -77,6 +68,4 @@
       fill: $color-canvas-selected;
     }
   }
-
-
 }
diff --git a/packages/xod-client/src/core/styles/components/PinLabel.scss b/packages/xod-client/src/core/styles/components/PinLabel.scss
new file mode 100644
index 00000000..f6c5d861
--- /dev/null
+++ b/packages/xod-client/src/core/styles/components/PinLabel.scss
@@ -0,0 +1,15 @@
+.PinLabel {
+  font-family: $font-family-condensed;
+  font-weight: 500;
+  font-size: 12px;
+  dominant-baseline: central;
+}
+
+.PinLabel.input {
+  fill: $color-pinlabel-input;
+}
+
+.PinLabel.output {
+  fill: $color-pinlabel-output;
+  font-weight: 700; // black font looks thinner
+}
\ No newline at end of file
diff --git a/packages/xod-client/src/core/styles/main.scss b/packages/xod-client/src/core/styles/main.scss
index 06e3586e..cf6a5eac 100644
--- a/packages/xod-client/src/core/styles/main.scss
+++ b/packages/xod-client/src/core/styles/main.scss
@@ -26,6 +26,7 @@
   'components/Node',
   'components/NodeText',
   'components/Pin',
+  'components/PinLabel',
   'components/Link',
   'components/PopupAlert',
   'components/PopupPrompt',
diff --git a/packages/xod-client/src/editor/containers/Patch.jsx b/packages/xod-client/src/editor/containers/Patch.jsx
index aa287dfd..a3599ea8 100644
--- a/packages/xod-client/src/editor/containers/Patch.jsx
+++ b/packages/xod-client/src/editor/containers/Patch.jsx
@@ -18,6 +18,7 @@ import NodesLayer from '../../project/components/NodesLayer';
 import LinksLayer from '../../project/components/LinksLayer';
 import GhostsLayer from '../../project/components/GhostsLayer';
 import SnappingPreviewLayer from '../../project/components/SnappingPreviewLayer';
+import DraggedNodeLayer from '../../project/components/DraggedNodeLayer';
 import {
   addNodesPositioning,
   addLinksPositioning,
@@ -47,6 +48,9 @@ class Patch extends React.Component {
     this.onLinkClick = this.onLinkClick.bind(this);
 
     this.deselectAll = this.deselectAll.bind(this);
+
+    this.getDraggedNodeId = this.getDraggedNodeId.bind(this);
+    this.extendNodesByPinValidness = this.extendNodesByPinValidness.bind(this);
   }
 
   shouldComponentUpdate(nextProps, nextState) {
@@ -171,8 +175,11 @@ class Patch extends React.Component {
   }
 
   getNodes() {
-    const nodes = R.values(this.props.nodes);
-    return this.extendNodesByPinValidness(nodes);
+    return R.compose(
+      this.extendNodesByPinValidness,
+      R.values,
+      R.omit([this.getDraggedNodeId()]) // we are rendering dragged node in a separate layer
+    )(this.props.nodes);
   }
   getLinks() {
     return R.values(this.props.links);
@@ -259,6 +266,7 @@ class Patch extends React.Component {
   }
 
   render() {
+    const draggedNodeId = this.getDraggedNodeId();
     const nodes = this.getNodes();
     const links = this.getLinks();
 
@@ -276,19 +284,23 @@ class Patch extends React.Component {
             height={this.props.size.height}
             onClick={this.deselectAll}
           />
+          <NodesLayer
+            nodes={nodes}
+            onMouseDown={this.onNodeMouseDown}
+            onPinMouseDown={this.onPinMouseDown}
+            onPinMouseUp={this.onPinMouseUp}
+          />
           <SnappingPreviewLayer
-            draggedNodeId={this.getDraggedNodeId()}
+            draggedNodeId={draggedNodeId}
             nodes={this.props.nodes}
           />
           <LinksLayer
             links={links}
             onClick={this.onLinkClick}
           />
-          <NodesLayer
-            nodes={nodes}
-            onMouseDown={this.onNodeMouseDown}
-            onPinMouseDown={this.onPinMouseDown}
-            onPinMouseUp={this.onPinMouseUp}
+          <DraggedNodeLayer
+            draggedNodeId={draggedNodeId}
+            nodes={this.props.nodes}
           />
           <GhostsLayer
             mousePosition={this.state.mousePosition}
diff --git a/packages/xod-client/src/project/components/DraggedNodeLayer.jsx b/packages/xod-client/src/project/components/DraggedNodeLayer.jsx
new file mode 100644
index 00000000..c837730f
--- /dev/null
+++ b/packages/xod-client/src/project/components/DraggedNodeLayer.jsx
@@ -0,0 +1,53 @@
+import React from 'react';
+
+import SVGLayer from './SVGLayer';
+import Node from './Node';
+
+class DraggedNodeLayer extends React.Component {
+  constructor(props) {
+    super(props);
+    this.displayName = 'DraggedNodeLayer';
+  }
+
+  shouldComponentUpdate(nextProps) {
+    return !!(nextProps.draggedNodeId || this.props.draggedNodeId);
+  }
+
+  render() {
+    const {
+      nodes,
+      draggedNodeId,
+    } = this.props;
+
+    if (!draggedNodeId) return null;
+
+    const node = nodes[draggedNodeId];
+
+    return (
+      <SVGLayer
+        name="DraggedNode"
+        className="DraggedNodeLayer"
+      >
+        <Node
+          key={node.id}
+          id={node.id}
+          label={node.label}
+          position={node.position}
+          size={node.size}
+          outputPinsSectionHeight={node.outputPinsSectionHeight}
+          pins={node.pins}
+          width={node.width}
+          isSelected={node.isSelected}
+          isGhost={node.isGhost}
+        />
+      </SVGLayer>
+    );
+  }
+}
+
+DraggedNodeLayer.propTypes = {
+  draggedNodeId: React.PropTypes.any,
+  nodes: React.PropTypes.any,
+};
+
+export default DraggedNodeLayer;
diff --git a/packages/xod-client/src/project/components/Link.jsx b/packages/xod-client/src/project/components/Link.jsx
index 676fad99..8d441394 100644
--- a/packages/xod-client/src/project/components/Link.jsx
+++ b/packages/xod-client/src/project/components/Link.jsx
@@ -3,6 +3,7 @@ import classNames from 'classnames';
 import { SIZE } from 'xod-core';
 
 import { noop } from '../../utils/ramda';
+import { PIN_RADIUS } from '../nodeLayout';
 
 class Link extends React.Component {
   constructor(props) {
@@ -48,6 +49,8 @@ class Link extends React.Component {
     const clickable = this.isClickable();
     const pointerEvents = (clickable) ? 'all' : 'none';
 
+    const linkEndRadius = PIN_RADIUS - 3;
+
     return (
       <g
         className={cls}
@@ -64,6 +67,20 @@ class Link extends React.Component {
           className="line"
           {...coords}
         />
+        <circle
+          className="end"
+          cx={coords.x1}
+          cy={coords.y1}
+          r={linkEndRadius}
+          fill="black"
+        />
+        <circle
+          className="end"
+          cx={coords.x2}
+          cy={coords.y2}
+          r={linkEndRadius}
+          fill="black"
+        />
       </g>
     );
   }
diff --git a/packages/xod-client/src/project/components/Node.jsx b/packages/xod-client/src/project/components/Node.jsx
index 2d240011..03a54998 100644
--- a/packages/xod-client/src/project/components/Node.jsx
+++ b/packages/xod-client/src/project/components/Node.jsx
@@ -3,6 +3,7 @@ import React from 'react';
 import classNames from 'classnames';
 
 import Pin from './Pin';
+import PinLabel from './PinLabel';
 import NodeText from './NodeText';
 import { noop } from '../../utils/ramda';
 
@@ -12,13 +13,8 @@ class Node extends React.Component {
   constructor(props) {
     super(props);
     this.id = this.props.id;
-
-    // needed for distinguishing between mouseDown events on pins and on node body
-    this.pinListRef = null;
-
-    this.assignPinListRef = this.assignPinListRef.bind(this);
-
     this.onMouseDown = this.onMouseDown.bind(this);
+
     this.onPinMouseUp = this.onPinMouseUp.bind(this);
     this.onPinMouseDown = this.onPinMouseDown.bind(this);
   }
@@ -28,11 +24,6 @@ class Node extends React.Component {
   }
 
   onMouseDown(event) {
-    if (this.pinListRef && this.pinListRef.contains(event.target)) {
-      event.preventDefault();
-      return;
-    }
-
     this.props.onMouseDown(event, this.id);
   }
 
@@ -44,10 +35,6 @@ class Node extends React.Component {
     this.props.onPinMouseDown(this.id, pinId);
   }
 
-  assignPinListRef(ref) {
-    this.pinListRef = ref;
-  }
-
   render() {
     const {
       size,
@@ -76,16 +63,12 @@ class Node extends React.Component {
     return (
       <svg
         key={this.id}
-        className={cls}
+        style={{ overflow: 'visible' }}
         {...position}
         {...size}
         viewBox={`0 0 ${size.width} ${size.height}`}
-        onMouseDown={this.onMouseDown}
       >
-        <g
-          onMouseOver={this.handleOver}
-          onMouseOut={this.handleOut}
-        >
+        <g className={cls} onMouseDown={this.onMouseDown}>
           <clipPath id={maskId}>
             <rect
               className="mask"
@@ -112,15 +95,23 @@ class Node extends React.Component {
             {label}
           </NodeText>
         </g>
-        <g className="pinlist" ref={this.assignPinListRef}>
+
+        <g className="pins">
           {pinsArr.map(pin =>
-            <Pin
-              keyName={pin.key}
-              key={pin.key}
-              {...pin}
-              onMouseUp={this.onPinMouseUp}
-              onMouseDown={this.onPinMouseDown}
-            />
+            <g key={pin.key}>
+              <Pin
+                {...pin}
+                keyName={pin.key}
+                key={`pin_${pin.key}`}
+                onMouseUp={this.onPinMouseUp}
+                onMouseDown={this.onPinMouseDown}
+              />
+              <PinLabel
+                {...pin}
+                keyName={pin.key}
+                key={`pinlabel_${pin.key}`}
+              />
+            </g>
           )}
         </g>
       </svg>
diff --git a/packages/xod-client/src/project/components/Pin.jsx b/packages/xod-client/src/project/components/Pin.jsx
index d05d2197..240eb67b 100644
--- a/packages/xod-client/src/project/components/Pin.jsx
+++ b/packages/xod-client/src/project/components/Pin.jsx
@@ -1,10 +1,8 @@
 import React from 'react';
 import classNames from 'classnames';
-import { PIN_DIRECTION, PIN_VALIDITY } from 'xod-core';
+import { PIN_VALIDITY } from 'xod-core';
 import { noop } from '../../utils/ramda';
-
-const PIN_RADIUS = 6;
-const TEXT_OFFSET_FROM_PIN_BORDER = 10;
+import { PIN_RADIUS } from '../nodeLayout';
 
 export default class Pin extends React.Component {
   constructor(props) {
@@ -57,39 +55,11 @@ export default class Pin extends React.Component {
     };
   }
 
-  getTextProps() {
-    const textVerticalOffset = PIN_RADIUS + TEXT_OFFSET_FROM_PIN_BORDER;
-    const pos = this.getPinCenter();
-    return {
-      x: pos.x,
-      y: pos.y + (textVerticalOffset * (this.isInput() ? 1 : -1)),
-      textAnchor: 'middle',
-    };
-  }
-
-  getDirection() {
-    return this.props.direction;
-  }
-
-  isInput() {
-    return (this.getDirection() === PIN_DIRECTION.INPUT);
-  }
-
   isInjected() {
     return !!this.props.injected;
   }
 
   render() {
-    const pinLabel = this.props.pinLabel ? (
-      <text
-        className={`label ${this.isInput() ? 'input' : 'output'}`}
-        key={`pinText_${this.props.keyName}`}
-        {...this.getTextProps()}
-      >
-        {this.props.pinLabel}
-      </text>
-    ) : null;
-
     const cls = classNames('Pin', {
       'is-property': this.isInjected(),
       'is-selected': this.props.isSelected,
@@ -125,7 +95,6 @@ export default class Pin extends React.Component {
           r="15"
         />
         {symbol}
-        {pinLabel}
       </g>
     );
   }
@@ -134,9 +103,7 @@ export default class Pin extends React.Component {
 Pin.propTypes = {
   keyName: React.PropTypes.string.isRequired,
   injected: React.PropTypes.bool,
-  pinLabel: React.PropTypes.string,
   type: React.PropTypes.string,
-  direction: React.PropTypes.string.isRequired,
   position: React.PropTypes.object.isRequired,
   onMouseUp: React.PropTypes.func.isRequired,
   onMouseDown: React.PropTypes.func.isRequired,
diff --git a/packages/xod-client/src/project/components/PinLabel.jsx b/packages/xod-client/src/project/components/PinLabel.jsx
new file mode 100644
index 00000000..9d649fda
--- /dev/null
+++ b/packages/xod-client/src/project/components/PinLabel.jsx
@@ -0,0 +1,47 @@
+import React from 'react';
+import { PIN_DIRECTION } from 'xod-core';
+
+import { PIN_RADIUS, TEXT_OFFSET_FROM_PIN_BORDER } from '../nodeLayout';
+
+export default class Pin extends React.Component {
+  getPinCenter() {
+    return this.props.position;
+  }
+
+  getTextProps() {
+    const textVerticalOffset = PIN_RADIUS + TEXT_OFFSET_FROM_PIN_BORDER;
+    const pos = this.getPinCenter();
+    return {
+      x: pos.x,
+      y: pos.y + (textVerticalOffset * (this.isInput() ? 1 : -1)),
+      textAnchor: 'middle',
+    };
+  }
+
+  getDirection() {
+    return this.props.direction;
+  }
+
+  isInput() {
+    return (this.getDirection() === PIN_DIRECTION.INPUT);
+  }
+
+  render() {
+    return this.props.pinLabel ? (
+      <text
+        className={`PinLabel ${this.isInput() ? 'input' : 'output'}`}
+        key={`pinText_${this.props.keyName}`}
+        {...this.getTextProps()}
+      >
+        {this.props.pinLabel}
+      </text>
+    ) : null;
+  }
+}
+
+Pin.propTypes = {
+  keyName: React.PropTypes.string.isRequired,
+  pinLabel: React.PropTypes.string,
+  direction: React.PropTypes.string.isRequired,
+  position: React.PropTypes.object.isRequired,
+};
diff --git a/packages/xod-client/src/project/nodeLayout.js b/packages/xod-client/src/project/nodeLayout.js
index 2c4ebbcd..489fe368 100644
--- a/packages/xod-client/src/project/nodeLayout.js
+++ b/packages/xod-client/src/project/nodeLayout.js
@@ -20,6 +20,8 @@ export const PIN_MARGIN = {
 };
 
 export const NODE_CORNER_RADIUS = 5;
+export const PIN_RADIUS = 6;
+export const TEXT_OFFSET_FROM_PIN_BORDER = 10;
 
 /**
  * @param {number} pinCount
diff --git a/packages/xod-client/stories/Link.jsx b/packages/xod-client/stories/Link.jsx
new file mode 100644
index 00000000..cdaaf549
--- /dev/null
+++ b/packages/xod-client/stories/Link.jsx
@@ -0,0 +1,68 @@
+import React from 'react';
+import { storiesOf } from '@kadira/storybook';
+
+import '../src/core/styles/main.scss';
+import XODLink from '../src/project/components/Link';
+
+const pFrom = { x: 30, y: 30 };
+const pTo = { x: 120, y: 120 };
+
+const baseProps = {
+  id: 'qwerty',
+  from: pFrom,
+  to: pTo,
+  isGhost: false,
+  isSelected: false,
+  type: 'string',
+};
+
+storiesOf('Link', module)
+  .addDecorator(story => (
+    <svg>
+      <rect width={(pFrom.x * 2) + pTo.x} height={(pFrom.y * 2) + pTo.x} fill="#676767" />
+      <circle
+        cx={pFrom.x}
+        cy={pFrom.y}
+        r="1"
+        fill="red"
+      />
+      <circle
+        cx={pTo.x}
+        cy={pTo.y}
+        r="1"
+        fill="red"
+      />
+      {story()}
+    </svg>
+  ))
+  .add('string', () => (
+    <XODLink
+      {...baseProps}
+      type="string"
+    />
+  ))
+  .add('bool', () => (
+    <XODLink
+      {...baseProps}
+      type="bool"
+    />
+  ))
+  .add('number', () => (
+    <XODLink
+      {...baseProps}
+      type="number"
+    />
+  ))
+  .add('pulse', () => (
+    <XODLink
+      {...baseProps}
+      type="pulse"
+    />
+  ))
+  .add('selected', () => (
+    <XODLink
+      {...baseProps}
+      isSelected
+    />
+  ));
+
diff --git a/packages/xod-client/stories/Pin.jsx b/packages/xod-client/stories/Pin.jsx
index 71969ac7..92788272 100644
--- a/packages/xod-client/stories/Pin.jsx
+++ b/packages/xod-client/stories/Pin.jsx
@@ -34,16 +34,9 @@ storiesOf('Pin', module)
       {story()}
     </PatchSVG>
   ))
-  .add('input', () => (
+  .add('default', () => (
     <Pin
       {...baseProps}
-      direction="input"
-    />
-  ))
-  .add('output', () => (
-    <Pin
-      {...baseProps}
-      direction="output"
     />
   ))
   .add('selected', () => (
diff --git a/packages/xod-client/stories/PinLabel.jsx b/packages/xod-client/stories/PinLabel.jsx
new file mode 100644
index 00000000..492549a7
--- /dev/null
+++ b/packages/xod-client/stories/PinLabel.jsx
@@ -0,0 +1,41 @@
+import React from 'react';
+import { storiesOf } from '@kadira/storybook';
+
+import '../src/core/styles/main.scss';
+import PinLabel from '../src/project/components/PinLabel';
+
+const pinCenter = { x: 70, y: 70 };
+
+const baseProps = {
+  keyName: "my pin's keyname",
+  pinLabel: 'PIN',
+  direction: 'input',
+  position: pinCenter,
+};
+
+storiesOf('PinLabel', module)
+  .addDecorator(story => (
+    <svg>
+      <rect width={pinCenter.x * 2} height={pinCenter.y * 2} fill="#676767" />
+      <line x1={pinCenter.x} y1="0" x2={pinCenter.x} y2={pinCenter.y * 2} stroke="#373737" />
+      <line x1="0" y1={pinCenter.y} x2={pinCenter.x * 2} y2={pinCenter.y} stroke="#373737" />
+      <text y=".6em" fontSize="11" dy="0" fill="white">
+        <tspan x=".3em" dy=".6em">cross line indicates center</tspan>
+        <tspan x=".3em" dy="1.2em">position passed to pin</tspan>
+      </text>
+      {story()}
+    </svg>
+  ))
+  .add('input', () => (
+    <PinLabel
+      {...baseProps}
+      direction="input"
+    />
+  ))
+  .add('output', () => (
+    <PinLabel
+      {...baseProps}
+      direction="output"
+    />
+  ));
+