diff --git a/web/app/components/workflow/candidate-node.tsx b/web/app/components/workflow/candidate-node.tsx
index 6f2389aad2..5a1fd825fb 100644
--- a/web/app/components/workflow/candidate-node.tsx
+++ b/web/app/components/workflow/candidate-node.tsx
@@ -13,7 +13,7 @@ import {
   useWorkflowStore,
 } from './store'
 import { WorkflowHistoryEvent, useNodesInteractions, useWorkflowHistory } from './hooks'
-import { CUSTOM_NODE } from './constants'
+import { CUSTOM_NODE, ITERATION_PADDING } from './constants'
 import { getIterationStartNode, getLoopStartNode } from './utils'
 import CustomNode from './nodes'
 import CustomNoteNode from './note-node'
@@ -41,7 +41,33 @@ const CandidateNode = () => {
       } = store.getState()
       const { screenToFlowPosition } = reactflow
       const nodes = getNodes()
-      const { x, y } = screenToFlowPosition({ x: mousePosition.pageX, y: mousePosition.pageY })
+      // Get mouse position in flow coordinates (this is where the top-left corner should be)
+      let { x, y } = screenToFlowPosition({ x: mousePosition.pageX, y: mousePosition.pageY })
+
+      // If the node has a parent (e.g., inside iteration), apply constraints and convert to relative position
+      if (candidateNode.parentId) {
+        const parentNode = nodes.find(node => node.id === candidateNode.parentId)
+        if (parentNode && parentNode.position) {
+          // Apply boundary constraints for iteration nodes
+          if (candidateNode.data.isInIteration) {
+            const nodeWidth = candidateNode.width || 0
+            const nodeHeight = candidateNode.height || 0
+            const minX = parentNode.position.x + ITERATION_PADDING.left
+            const maxX = parentNode.position.x + (parentNode.width || 0) - ITERATION_PADDING.right - nodeWidth
+            const minY = parentNode.position.y + ITERATION_PADDING.top
+            const maxY = parentNode.position.y + (parentNode.height || 0) - ITERATION_PADDING.bottom - nodeHeight
+
+            // Constrain position
+            x = Math.max(minX, Math.min(maxX, x))
+            y = Math.max(minY, Math.min(maxY, y))
+          }
+
+          // Convert to relative position
+          x = x - parentNode.position.x
+          y = y - parentNode.position.y
+        }
+      }
+
       const newNodes = produce(nodes, (draft) => {
         draft.push({
           ...candidateNode,
@@ -59,6 +85,20 @@ const CandidateNode = () => {
 
         if (candidateNode.data.type === BlockEnum.Loop)
           draft.push(getLoopStartNode(candidateNode.id))
+
+        // Update parent iteration node's _children array
+        if (candidateNode.parentId && candidateNode.data.isInIteration) {
+          const parentNode = draft.find(node => node.id === candidateNode.parentId)
+          if (parentNode && parentNode.data.type === BlockEnum.Iteration) {
+            if (!parentNode.data._children)
+              parentNode.data._children = []
+
+            parentNode.data._children.push({
+              nodeId: candidateNode.id,
+              nodeType: candidateNode.data.type,
+            })
+          }
+        }
       })
       setNodes(newNodes)
       if (candidateNode.type === CUSTOM_NOTE_NODE)
@@ -84,6 +124,34 @@ const CandidateNode = () => {
   if (!candidateNode)
     return null
 
+  // Apply boundary constraints if node is inside iteration
+  if (candidateNode.parentId && candidateNode.data.isInIteration) {
+    const { getNodes } = store.getState()
+    const nodes = getNodes()
+    const parentNode = nodes.find(node => node.id === candidateNode.parentId)
+
+    if (parentNode && parentNode.position) {
+      const { screenToFlowPosition, flowToScreenPosition } = reactflow
+      // Get mouse position in flow coordinates
+      const flowPosition = screenToFlowPosition({ x: mousePosition.pageX, y: mousePosition.pageY })
+
+      // Calculate boundaries in flow coordinates
+      const nodeWidth = candidateNode.width || 0
+      const nodeHeight = candidateNode.height || 0
+      const minX = parentNode.position.x + ITERATION_PADDING.left
+      const maxX = parentNode.position.x + (parentNode.width || 0) - ITERATION_PADDING.right - nodeWidth
+      const minY = parentNode.position.y + ITERATION_PADDING.top
+      const maxY = parentNode.position.y + (parentNode.height || 0) - ITERATION_PADDING.bottom - nodeHeight
+
+      // Constrain position
+      const constrainedX = Math.max(minX, Math.min(maxX, flowPosition.x))
+      const constrainedY = Math.max(minY, Math.min(maxY, flowPosition.y))
+
+      // Convert back to screen coordinates
+      flowToScreenPosition({ x: constrainedX, y: constrainedY })
+    }
+  }
+
   return (
     <div
       className='absolute z-10'
diff --git a/web/app/components/workflow/hooks/use-nodes-interactions.ts b/web/app/components/workflow/hooks/use-nodes-interactions.ts
index fa61cdeb8c..bb72fe2f74 100644
--- a/web/app/components/workflow/hooks/use-nodes-interactions.ts
+++ b/web/app/components/workflow/hooks/use-nodes-interactions.ts
@@ -737,7 +737,7 @@ export const useNodesInteractions = () => {
         targetHandle = 'target',
         toolDefaultValue,
       },
-      { prevNodeId, prevNodeSourceHandle, nextNodeId, nextNodeTargetHandle },
+      { prevNodeId, prevNodeSourceHandle, nextNodeId, nextNodeTargetHandle, skipAutoConnect },
     ) => {
       if (getNodesReadOnly()) return
 
@@ -830,7 +830,7 @@ export const useNodesInteractions = () => {
         }
 
         let newEdge = null
-        if (nodeType !== BlockEnum.DataSource) {
+        if (nodeType !== BlockEnum.DataSource && !skipAutoConnect) {
           newEdge = {
             id: `${prevNodeId}-${prevNodeSourceHandle}-${newNode.id}-${targetHandle}`,
             type: CUSTOM_EDGE,
@@ -970,6 +970,7 @@ export const useNodesInteractions = () => {
           nodeType !== BlockEnum.IfElse
           && nodeType !== BlockEnum.QuestionClassifier
           && nodeType !== BlockEnum.LoopEnd
+          && !skipAutoConnect
         ) {
           newEdge = {
             id: `${newNode.id}-${sourceHandle}-${nextNodeId}-${nextNodeTargetHandle}`,
@@ -1119,7 +1120,7 @@ export const useNodesInteractions = () => {
         )
         let newPrevEdge = null
 
-        if (nodeType !== BlockEnum.DataSource) {
+        if (nodeType !== BlockEnum.DataSource && !skipAutoConnect) {
           newPrevEdge = {
             id: `${prevNodeId}-${prevNodeSourceHandle}-${newNode.id}-${targetHandle}`,
             type: CUSTOM_EDGE,
@@ -1159,6 +1160,7 @@ export const useNodesInteractions = () => {
           nodeType !== BlockEnum.IfElse
           && nodeType !== BlockEnum.QuestionClassifier
           && nodeType !== BlockEnum.LoopEnd
+          && !skipAutoConnect
         ) {
           newNextEdge = {
             id: `${newNode.id}-${sourceHandle}-${nextNodeId}-${nextNodeTargetHandle}`,
diff --git a/web/app/components/workflow/nodes/_base/components/panel-operator/panel-operator-popup.tsx b/web/app/components/workflow/nodes/_base/components/panel-operator/panel-operator-popup.tsx
index a871e60e3a..5fa3257a3f 100644
--- a/web/app/components/workflow/nodes/_base/components/panel-operator/panel-operator-popup.tsx
+++ b/web/app/components/workflow/nodes/_base/components/panel-operator/panel-operator-popup.tsx
@@ -15,7 +15,9 @@ import {
   useNodesSyncDraft,
 } from '@/app/components/workflow/hooks'
 import ShortcutsName from '@/app/components/workflow/shortcuts-name'
-import type { Node } from '@/app/components/workflow/types'
+import { BlockEnum, type Node } from '@/app/components/workflow/types'
+import PanelAddBlock from '@/app/components/workflow/nodes/iteration/panel-add-block'
+import type { IterationNodeType } from '@/app/components/workflow/nodes/iteration/types'
 
 type PanelOperatorPopupProps = {
   id: string
@@ -51,6 +53,9 @@ const PanelOperatorPopup = ({
         (showChangeBlock || canRunBySingle(data.type, isChildNode)) && (
           <>
             <div className='p-1'>
+              {data.type === BlockEnum.Iteration && (
+                <PanelAddBlock iterationNodeData={data as IterationNodeType} onClosePopup={onClosePopup}/>
+              )}
               {
                 canRunBySingle(data.type, isChildNode) && (
                   <div
diff --git a/web/app/components/workflow/nodes/iteration/panel-add-block.tsx b/web/app/components/workflow/nodes/iteration/panel-add-block.tsx
new file mode 100644
index 0000000000..e827548168
--- /dev/null
+++ b/web/app/components/workflow/nodes/iteration/panel-add-block.tsx
@@ -0,0 +1,116 @@
+import {
+  memo,
+  useCallback,
+  useState,
+} from 'react'
+import { useTranslation } from 'react-i18next'
+import type { OffsetOptions } from '@floating-ui/react'
+import { useStoreApi } from 'reactflow'
+
+import BlockSelector from '@/app/components/workflow/block-selector'
+import type {
+  OnSelectBlock,
+} from '@/app/components/workflow/types'
+import {
+  BlockEnum,
+} from '@/app/components/workflow/types'
+import { useAvailableBlocks, useNodesMetaData, useNodesReadOnly, usePanelInteractions } from '../../hooks'
+import type { IterationNodeType } from './types'
+import { useWorkflowStore } from '../../store'
+import { generateNewNode, getNodeCustomTypeByNodeDataType } from '../../utils'
+import { ITERATION_CHILDREN_Z_INDEX } from '../../constants'
+
+type AddBlockProps = {
+  renderTrigger?: (open: boolean) => React.ReactNode
+  offset?: OffsetOptions
+  iterationNodeData: IterationNodeType
+  onClosePopup: () => void
+}
+const AddBlock = ({
+  offset,
+  iterationNodeData,
+  onClosePopup,
+}: AddBlockProps) => {
+  const { t } = useTranslation()
+  const store = useStoreApi()
+  const workflowStore = useWorkflowStore()
+  const { nodesReadOnly } = useNodesReadOnly()
+  const { handlePaneContextmenuCancel } = usePanelInteractions()
+  const [open, setOpen] = useState(false)
+  const { availableNextBlocks } = useAvailableBlocks(BlockEnum.Start, false)
+  const { nodesMap: nodesMetaDataMap } = useNodesMetaData()
+
+  const handleOpenChange = useCallback((open: boolean) => {
+    setOpen(open)
+    if (!open)
+      handlePaneContextmenuCancel()
+  }, [handlePaneContextmenuCancel])
+
+  const handleSelect = useCallback<OnSelectBlock>((type, toolDefaultValue) => {
+    const { getNodes } = store.getState()
+    const nodes = getNodes()
+    const nodesWithSameType = nodes.filter(node => node.data.type === type)
+    const { defaultValue } = nodesMetaDataMap![type]
+
+    // Find the parent iteration node
+    const parentIterationNode = nodes.find(node => node.data.start_node_id === iterationNodeData.start_node_id)
+
+    const { newNode } = generateNewNode({
+      type: getNodeCustomTypeByNodeDataType(type),
+      data: {
+        ...(defaultValue as any),
+        title: nodesWithSameType.length > 0 ? `${defaultValue.title} ${nodesWithSameType.length + 1}` : defaultValue.title,
+        ...toolDefaultValue,
+        _isCandidate: true,
+        // Set iteration-specific properties
+        isInIteration: true,
+        iteration_id: parentIterationNode?.id,
+      },
+      position: {
+        x: 0,
+        y: 0,
+      },
+    })
+
+    // Set parent and z-index for iteration child
+    if (parentIterationNode) {
+      newNode.parentId = parentIterationNode.id
+      newNode.extent = 'parent' as any
+      newNode.zIndex = ITERATION_CHILDREN_Z_INDEX
+    }
+
+    workflowStore.setState({
+      candidateNode: newNode,
+    })
+    onClosePopup()
+  }, [store, workflowStore, nodesMetaDataMap, iterationNodeData.start_node_id, onClosePopup])
+
+  const renderTrigger = () => {
+    return (
+      <div
+        className='flex h-8 cursor-pointer items-center justify-between rounded-lg px-3 text-sm text-text-secondary hover:bg-state-base-hover'
+      >
+        {t('workflow.common.addBlock')}
+      </div>
+    )
+  }
+
+  return (
+    <BlockSelector
+      open={open}
+      onOpenChange={handleOpenChange}
+      disabled={nodesReadOnly}
+      onSelect={handleSelect}
+      placement='right-start'
+      offset={offset ?? {
+        mainAxis: 4,
+        crossAxis: -8,
+      }}
+      trigger={renderTrigger}
+      popupClassName='!min-w-[256px]'
+      availableBlocksTypes={availableNextBlocks}
+    />
+  )
+}
+
+export default memo(AddBlock)
diff --git a/web/app/components/workflow/types.ts b/web/app/components/workflow/types.ts
index f6a706a982..55afde0bfd 100644
--- a/web/app/components/workflow/types.ts
+++ b/web/app/components/workflow/types.ts
@@ -379,6 +379,7 @@ export type OnNodeAdd = (
     prevNodeSourceHandle?: string
     nextNodeId?: string
     nextNodeTargetHandle?: string
+    skipAutoConnect?: boolean
   },
 ) => void