diff --git a/CHANGELOG.adoc b/CHANGELOG.adoc
index f7162b227e..4a7ab64e57 100644
--- a/CHANGELOG.adoc
+++ b/CHANGELOG.adoc
@@ -128,6 +128,7 @@ It uses our algorithm instead of elk.js to perform the arrange-all.
 - https://github.com/eclipse-sirius/sirius-web/issues/2640[#2640] [diagram] Compute the handle position on diagram conversion, which happens every time a diagram refresh payload is received.
 - https://github.com/eclipse-sirius/sirius-web/issues/2647[#2647] [diagram] Split border shorthand CSS properties into non-shorthand properties for list nodes.
 Make some border node transparent when the node is in a list node in the convert engine.
+- https://github.com/eclipse-sirius/sirius-web/issues/2683[#2683] [diagram] Hide diagram element palette when the element itself is moved.
 
 === New Features
 
diff --git a/packages/diagrams/frontend/sirius-components-diagrams-reactflow/src/renderer/DiagramRenderer.tsx b/packages/diagrams/frontend/sirius-components-diagrams-reactflow/src/renderer/DiagramRenderer.tsx
index 450887da97..eb2ac4fef4 100644
--- a/packages/diagrams/frontend/sirius-components-diagrams-reactflow/src/renderer/DiagramRenderer.tsx
+++ b/packages/diagrams/frontend/sirius-components-diagrams-reactflow/src/renderer/DiagramRenderer.tsx
@@ -112,6 +112,7 @@ export const DiagramRenderer = ({ diagramRefreshedEventPayload, selection, setSe
         setNodes(laidOutDiagram.nodes);
         setEdges(laidOutDiagram.edges);
         hideDiagramPalette();
+        hideDiagramElementPalette();
         resetReferencePosition();
         fitToScreen();
 
@@ -128,6 +129,10 @@ export const DiagramRenderer = ({ diagramRefreshedEventPayload, selection, setSe
   const handleNodesChange: OnNodesChange = (changes: NodeChange[]) => {
     const transformedNodeChanges = transformBorderNodeChanges(changes);
 
+    if (transformedNodeChanges.some((change) => change.type === 'position' || change.type === 'dimensions')) {
+      hideDiagramElementPalette();
+    }
+
     let newNodes = applyNodeChanges(transformedNodeChanges, nodes);
 
     newNodes = applyHandleChange(transformedNodeChanges, newNodes as Node<NodeData, DiagramNodeType>[]);