diff --git a/.secrets.baseline b/.secrets.baseline
index 338c4e0149f9..035ae52b8983 100644
--- a/.secrets.baseline
+++ b/.secrets.baseline
@@ -1403,7 +1403,7 @@
         "filename": "src/frontend/src/constants/constants.ts",
         "hashed_secret": "19a2fbd0dd38b4097f419c962342ef5e109eab07",
         "is_verified": false,
-        "line_number": 737,
+        "line_number": 751,
         "is_secret": false
       },
       {
@@ -1411,7 +1411,7 @@
         "filename": "src/frontend/src/constants/constants.ts",
         "hashed_secret": "3806954324550e26ef5de85d007f1746825a073c",
         "is_verified": false,
-        "line_number": 738,
+        "line_number": 752,
         "is_secret": false
       },
       {
@@ -1419,7 +1419,7 @@
         "filename": "src/frontend/src/constants/constants.ts",
         "hashed_secret": "c04f8fbf55c9096907a982750b1c6b0e4c1dd658",
         "is_verified": false,
-        "line_number": 913,
+        "line_number": 926,
         "is_secret": false
       }
     ],
diff --git a/src/frontend/src/CustomNodes/NoteNode/__tests__/note-node-shrink.test.tsx b/src/frontend/src/CustomNodes/NoteNode/__tests__/note-node-shrink.test.tsx
new file mode 100644
index 000000000000..e1d5d0ad30f0
--- /dev/null
+++ b/src/frontend/src/CustomNodes/NoteNode/__tests__/note-node-shrink.test.tsx
@@ -0,0 +1,221 @@
+/**
+ * Unit tests for NoteNode shrink/resize behavior
+ * Validates that sticky notes can shrink to the correct minimum size
+ */
+
+import { render, screen } from "@testing-library/react";
+import {
+  DEFAULT_NOTE_SIZE,
+  NOTE_NODE_MIN_HEIGHT,
+  NOTE_NODE_MIN_WIDTH,
+} from "@/constants/constants";
+import type { NoteDataType } from "@/types/flow";
+
+// Mock dependencies
+const mockSetNode = jest.fn();
+const mockCurrentFlow = {
+  data: {
+    nodes: [] as Array<{ id: string; width?: number; height?: number }>,
+  },
+};
+
+jest.mock("@/stores/flowStore", () => ({
+  __esModule: true,
+  default: (selector: (state: any) => any) =>
+    selector({
+      currentFlow: mockCurrentFlow,
+      setNode: mockSetNode,
+    }),
+}));
+
+jest.mock("@xyflow/react", () => ({
+  NodeResizer: ({
+    minWidth,
+    minHeight,
+    onResize,
+    isVisible,
+  }: {
+    minWidth: number;
+    minHeight: number;
+    onResize: (event: any, params: { width: number; height: number }) => void;
+    isVisible?: boolean;
+  }) => (
+    <div
+      data-testid="node-resizer"
+      data-min-width={minWidth}
+      data-min-height={minHeight}
+      data-is-visible={isVisible}
+    />
+  ),
+}));
+
+jest.mock("@/shared/hooks/use-alternate", () => ({
+  useAlternate: (initial: boolean) => [initial, jest.fn()],
+}));
+
+jest.mock("../NoteToolbarComponent", () => ({
+  __esModule: true,
+  default: () => <div data-testid="note-toolbar" />,
+}));
+
+jest.mock("../../GenericNode/components/NodeDescription", () => ({
+  __esModule: true,
+  default: () => <div data-testid="node-description" />,
+}));
+
+jest.mock("@/utils/utils", () => ({
+  cn: (...classes: any[]) => classes.filter(Boolean).join(" "),
+}));
+
+// Import component after mocks are set up
+import NoteNode from "../index";
+
+describe("NoteNode Shrink Behavior", () => {
+  const createMockData = (
+    id: string = "test-note",
+    backgroundColor: string = "amber",
+  ): NoteDataType =>
+    ({
+      id,
+      type: "noteNode",
+      node: {
+        description: "Test note content",
+        template: { backgroundColor },
+      },
+    }) as NoteDataType;
+
+  beforeEach(() => {
+    jest.clearAllMocks();
+    mockCurrentFlow.data.nodes = [];
+  });
+
+  describe("Minimum Size Constraints", () => {
+    it("should configure NodeResizer with correct minimum width", () => {
+      const data = createMockData();
+      render(<NoteNode data={data} selected={true} />);
+
+      const resizer = screen.getByTestId("node-resizer");
+      expect(Number(resizer.dataset.minWidth)).toBe(NOTE_NODE_MIN_WIDTH);
+      expect(NOTE_NODE_MIN_WIDTH).toBe(260);
+    });
+
+    it("should configure NodeResizer with correct minimum height", () => {
+      const data = createMockData();
+      render(<NoteNode data={data} selected={true} />);
+
+      const resizer = screen.getByTestId("node-resizer");
+      expect(Number(resizer.dataset.minHeight)).toBe(NOTE_NODE_MIN_HEIGHT);
+      expect(NOTE_NODE_MIN_HEIGHT).toBe(100);
+    });
+
+    it("should show resizer only when selected", () => {
+      const data = createMockData();
+
+      // When selected
+      const { rerender } = render(<NoteNode data={data} selected={true} />);
+      let resizer = screen.getByTestId("node-resizer");
+      expect(resizer.dataset.isVisible).toBe("true");
+
+      // When not selected
+      rerender(<NoteNode data={data} selected={false} />);
+      resizer = screen.getByTestId("node-resizer");
+      expect(resizer.dataset.isVisible).toBe("false");
+    });
+  });
+
+  describe("Default Size Behavior", () => {
+    it("should use DEFAULT_NOTE_SIZE when no dimensions are stored", () => {
+      const data = createMockData("note-1");
+      mockCurrentFlow.data.nodes = [];
+
+      render(<NoteNode data={data} selected={false} />);
+
+      const noteNode = screen.getByTestId("note_node");
+      expect(noteNode.style.width).toBe(`${DEFAULT_NOTE_SIZE}px`);
+      expect(noteNode.style.height).toBe(`${DEFAULT_NOTE_SIZE}px`);
+      expect(DEFAULT_NOTE_SIZE).toBe(324);
+    });
+
+    it("should use stored dimensions from flow state", () => {
+      const data = createMockData("note-1");
+      const customWidth = 400;
+      const customHeight = 300;
+
+      mockCurrentFlow.data.nodes = [
+        { id: "note-1", width: customWidth, height: customHeight },
+      ];
+
+      render(<NoteNode data={data} selected={false} />);
+
+      const noteNode = screen.getByTestId("note_node");
+      expect(noteNode.style.width).toBe(`${customWidth}px`);
+      expect(noteNode.style.height).toBe(`${customHeight}px`);
+    });
+  });
+
+  describe("Shrink to Minimum Size", () => {
+    it("should allow shrinking to minimum dimensions", () => {
+      const data = createMockData("note-1");
+
+      // Simulate a note that has been shrunk to minimum size
+      mockCurrentFlow.data.nodes = [
+        {
+          id: "note-1",
+          width: NOTE_NODE_MIN_WIDTH,
+          height: NOTE_NODE_MIN_HEIGHT,
+        },
+      ];
+
+      render(<NoteNode data={data} selected={true} />);
+
+      const noteNode = screen.getByTestId("note_node");
+      expect(noteNode.style.width).toBe(`${NOTE_NODE_MIN_WIDTH}px`);
+      expect(noteNode.style.height).toBe(`${NOTE_NODE_MIN_HEIGHT}px`);
+    });
+
+    it("should render correctly at minimum width", () => {
+      const data = createMockData("note-1");
+      mockCurrentFlow.data.nodes = [
+        { id: "note-1", width: NOTE_NODE_MIN_WIDTH, height: DEFAULT_NOTE_SIZE },
+      ];
+
+      render(<NoteNode data={data} selected={false} />);
+
+      const noteNode = screen.getByTestId("note_node");
+      expect(noteNode.style.width).toBe(`${NOTE_NODE_MIN_WIDTH}px`);
+    });
+
+    it("should render correctly at minimum height", () => {
+      const data = createMockData("note-1");
+      mockCurrentFlow.data.nodes = [
+        {
+          id: "note-1",
+          width: DEFAULT_NOTE_SIZE,
+          height: NOTE_NODE_MIN_HEIGHT,
+        },
+      ];
+
+      render(<NoteNode data={data} selected={false} />);
+
+      const noteNode = screen.getByTestId("note_node");
+      expect(noteNode.style.height).toBe(`${NOTE_NODE_MIN_HEIGHT}px`);
+    });
+  });
+
+  describe("Size Constraints Validation", () => {
+    it("should have minimum width less than default size", () => {
+      expect(NOTE_NODE_MIN_WIDTH).toBeLessThan(DEFAULT_NOTE_SIZE);
+    });
+
+    it("should have minimum height less than default size", () => {
+      expect(NOTE_NODE_MIN_HEIGHT).toBeLessThan(DEFAULT_NOTE_SIZE);
+    });
+
+    it("should have reasonable minimum dimensions for usability", () => {
+      // Minimum width should be at least 200px for readability
+      expect(NOTE_NODE_MIN_WIDTH).toBeGreaterThanOrEqual(200);
+      // Minimum height should be at least 80px for content
+      expect(NOTE_NODE_MIN_HEIGHT).toBeGreaterThanOrEqual(80);
+    });
+  });
+});
diff --git a/src/frontend/src/CustomNodes/NoteNode/index.tsx b/src/frontend/src/CustomNodes/NoteNode/index.tsx
index 7ad16c792d6c..c3414d5638a8 100644
--- a/src/frontend/src/CustomNodes/NoteNode/index.tsx
+++ b/src/frontend/src/CustomNodes/NoteNode/index.tsx
@@ -3,6 +3,7 @@ import { debounce } from "lodash";
 import { useMemo, useRef, useState } from "react";
 import {
   COLOR_OPTIONS,
+  DEFAULT_NOTE_SIZE,
   NOTE_NODE_MIN_HEIGHT,
   NOTE_NODE_MIN_WIDTH,
 } from "@/constants/constants";
@@ -14,7 +15,6 @@ import NodeDescription from "../GenericNode/components/NodeDescription";
 import NoteToolbarComponent from "./NoteToolbarComponent";
 
 const CHAR_LIMIT = 2500;
-const DEFAULT_NOTE_SIZE = 324;
 const TRANSPARENT_COLOR = "#00000000";
 
 /**
@@ -103,8 +103,8 @@ function NoteNode({
     () => currentFlow?.data?.nodes.find((node) => node.id === data.id),
     [currentFlow, data.id],
   );
-  const nodeWidth = nodeData?.measured?.width ?? DEFAULT_NOTE_SIZE;
-  const nodeHeight = nodeData?.measured?.height ?? DEFAULT_NOTE_SIZE;
+  const nodeWidth = nodeData?.width ?? DEFAULT_NOTE_SIZE;
+  const nodeHeight = nodeData?.height ?? DEFAULT_NOTE_SIZE;
 
   // Debounced resize handler to avoid excessive state updates during drag
   const debouncedResize = useMemo(
@@ -146,8 +146,8 @@ function NoteNode({
   return (
     <>
       <NodeResizer
-        minWidth={Math.max(DEFAULT_NOTE_SIZE, NOTE_NODE_MIN_WIDTH)}
-        minHeight={Math.max(DEFAULT_NOTE_SIZE, NOTE_NODE_MIN_HEIGHT)}
+        minWidth={NOTE_NODE_MIN_WIDTH}
+        minHeight={NOTE_NODE_MIN_HEIGHT}
         onResize={(_, { width, height }) => debouncedResize(width, height)}
         isVisible={selected}
         lineClassName="!border !border-muted-foreground"
@@ -162,8 +162,8 @@ function NoteNode({
         ref={nodeRef}
         data-testid="note_node"
         style={{
-          minWidth: nodeWidth,
-          minHeight: nodeHeight,
+          width: nodeWidth,
+          height: nodeHeight,
           backgroundColor: resolvedBgColor,
         }}
         className={cn(
diff --git a/src/frontend/src/constants/constants.ts b/src/frontend/src/constants/constants.ts
index bad8532c6975..d2ee7f8375bb 100644
--- a/src/frontend/src/constants/constants.ts
+++ b/src/frontend/src/constants/constants.ts
@@ -882,8 +882,9 @@ export const DRAG_EVENTS_CUSTOM_TYPESS = {
   "text/plain": "text/plain",
 };
 
-export const NOTE_NODE_MIN_WIDTH = 324;
-export const NOTE_NODE_MIN_HEIGHT = 324;
+export const NOTE_NODE_MIN_WIDTH = 260;
+export const NOTE_NODE_MIN_HEIGHT = 100;
+export const DEFAULT_NOTE_SIZE = 324;
 
 export const COLOR_OPTIONS = {
   amber: "hsl(var(--note-amber))",
diff --git a/src/frontend/src/pages/FlowPage/components/PageComponent/index.tsx b/src/frontend/src/pages/FlowPage/components/PageComponent/index.tsx
index 60afa87a7bfe..bc678414f8df 100644
--- a/src/frontend/src/pages/FlowPage/components/PageComponent/index.tsx
+++ b/src/frontend/src/pages/FlowPage/components/PageComponent/index.tsx
@@ -24,6 +24,7 @@ import NoteNode from "@/CustomNodes/NoteNode";
 import FlowToolbar from "@/components/core/flowToolbarComponent";
 import {
   COLOR_OPTIONS,
+  DEFAULT_NOTE_SIZE,
   NOTE_NODE_MIN_HEIGHT,
   NOTE_NODE_MIN_WIDTH,
 } from "@/constants/constants";
@@ -161,8 +162,8 @@ export default function Page({
   const addComponent = useAddComponent();
 
   const zoomLevel = reactFlowInstance?.getZoom();
-  const shadowBoxWidth = NOTE_NODE_MIN_WIDTH * (zoomLevel || 1);
-  const shadowBoxHeight = NOTE_NODE_MIN_HEIGHT * (zoomLevel || 1);
+  const shadowBoxWidth = DEFAULT_NOTE_SIZE * (zoomLevel || 1);
+  const shadowBoxHeight = DEFAULT_NOTE_SIZE * (zoomLevel || 1);
   const shadowBoxBackgroundColor = COLOR_OPTIONS[Object.keys(COLOR_OPTIONS)[0]];
 
   const handleGroupNode = useCallback(() => {
@@ -656,6 +657,8 @@ export default function Page({
           id: newId,
           type: "noteNode",
           position: position || { x: 0, y: 0 },
+          width: DEFAULT_NOTE_SIZE,
+          height: DEFAULT_NOTE_SIZE,
           data: {
             ...data,
             id: newId,