diff --git a/playwright/e2e/dashboards-demo/dashboard.spec.ts b/playwright/e2e/dashboards-demo/dashboard.spec.ts
index cc248a3c93..854aecf4d3 100644
--- a/playwright/e2e/dashboards-demo/dashboard.spec.ts
+++ b/playwright/e2e/dashboards-demo/dashboard.spec.ts
@@ -218,6 +218,69 @@ test.describe('dashboard', () => {
     await si.runVisualAndA11yTests(stepName);
   });
 
+  test(example + ' cancel restores auto-positioned layout', async ({ page, si }) => {
+    await si.visitExample(example, undefined);
+    await expect(page.getByRole('heading', { name: 'Sample Dashboard' })).toBeVisible();
+
+    // Record original bounding boxes of all widgets keyed by item-id
+    const widgets = page.locator('si-widget-host');
+    const count = await widgets.count();
+    const originalBoxes: Record<string, { x: number; y: number }> = {};
+    for (let i = 0; i < count; i++) {
+      const widget = widgets.nth(i);
+      const itemId = await widget.getAttribute('item-id');
+      expect(itemId).toBeTruthy();
+      const box = await widget.boundingBox();
+      expect(box).toBeTruthy();
+      originalBoxes[itemId!] = { x: Math.round(box!.x), y: Math.round(box!.y) };
+    }
+
+    // Enter edit mode
+    const editBtn = page.getByLabel('Edit');
+    await editBtn.click();
+    await expect(page.getByText('Cancel')).toBeVisible();
+
+    // Resize the Pie Chart widget by dragging the bottom-right resize handle to the left
+    const pieChart = page.locator('si-widget-host', { hasText: 'Pie Chart' });
+    await pieChart.hover();
+    const resizeHandle = pieChart.locator('.ui-resizable-se');
+    const handleBox = await resizeHandle.boundingBox();
+    expect(handleBox).toBeTruthy();
+    const startX = handleBox!.x + handleBox!.width / 2;
+    const startY = handleBox!.y + handleBox!.height / 2;
+    await page.mouse.move(startX, startY);
+    await page.mouse.down();
+    await page.mouse.move(startX - 100, startY);
+    await page.mouse.up();
+
+    // Move the Full Speed widget towards Pie Chart by dragging its overlay to the left
+    const fullSpeed = page.locator('si-widget-host', { hasText: 'Full Speed' });
+    await fullSpeed.scrollIntoViewIfNeeded();
+    const fullSpeedDraggable = fullSpeed.locator('.draggable-overlay');
+    const dragBox = await fullSpeedDraggable.boundingBox();
+    expect(dragBox).toBeTruthy();
+    const dragStartX = dragBox!.x + dragBox!.width / 2;
+    const dragStartY = dragBox!.y + dragBox!.height / 2;
+    await page.mouse.move(dragStartX, dragStartY);
+    await page.mouse.down();
+    await page.mouse.move(dragStartX - 150, dragStartY, { steps: 10 });
+    await page.mouse.up();
+
+    // Cancel the edit
+    await page.getByText('Cancel', { exact: true }).click();
+    await expect(page.getByLabel('Edit')).toBeVisible();
+
+    // Scroll the widgets container to top before verifying positions
+    await page.locator('.si-dashboard-content').evaluate(el => el.scrollTo(0, 0));
+
+    // Verify all widgets returned to their original positions
+    for (const [itemId, expectedBox] of Object.entries(originalBoxes)) {
+      await expect(page.locator(`si-widget-host[item-id="${itemId}"]`)).toHaveBoundingBox(
+        expectedBox
+      );
+    }
+  });
+
   const openWidgetCatalog = async (page: Page): Promise<void> => {
     await expect(page.getByLabel('Edit')).toBeVisible();
     const editBtn = page.getByLabel('Edit');
diff --git a/projects/dashboards-ng/src/components/grid/si-grid.component.spec.ts b/projects/dashboards-ng/src/components/grid/si-grid.component.spec.ts
index a4044beae5..c1d429b355 100644
--- a/projects/dashboards-ng/src/components/grid/si-grid.component.spec.ts
+++ b/projects/dashboards-ng/src/components/grid/si-grid.component.spec.ts
@@ -200,6 +200,26 @@ describe('SiGridComponent', () => {
       .triggerEventHandler('gridEvent', { event: { type: 'added' } });
   });
 
+  it('#handleGridEvent() should capture auto-positioned layout so cancel restores it', () => {
+    // Simulate persisted widgets without explicit x/y (auto-positioned by GridStack)
+    const widgetConfig: WidgetConfig = { id: 'w1', widgetId: 'id', x: undefined, y: undefined };
+    component.persistedWidgetInstances = [widgetConfig];
+    component.visibleWidgetInstances$.next([widgetConfig]);
+
+    const spy = vi
+      .spyOn(component.gridStackWrapper(), 'getWidgetLayout')
+      .mockReturnValue({ x: 0, y: 0, width: 4, height: 2, id: 'w1' });
+
+    // Trigger an 'added' event while NOT in edit mode
+    fixture.debugElement
+      .query(By.css('si-gridstack-wrapper'))
+      .triggerEventHandler('gridEvent', { event: { type: 'added' } });
+
+    expect(spy).toHaveBeenCalled();
+    expect(component.persistedWidgetInstances[0].x).toBe(0);
+    expect(component.persistedWidgetInstances[0].y).toBe(0);
+  });
+
   it('should load widgets when dashboardId changes', async () => {
     const widgetConfig: WidgetConfig = { id: 'myId', widgetId: 'myWidgetId' };
     const myDashboardId = 'myDashboardId';
diff --git a/projects/dashboards-ng/src/components/grid/si-grid.component.ts b/projects/dashboards-ng/src/components/grid/si-grid.component.ts
index 9a93f26bc0..78dd4f8dcd 100644
--- a/projects/dashboards-ng/src/components/grid/si-grid.component.ts
+++ b/projects/dashboards-ng/src/components/grid/si-grid.component.ts
@@ -378,6 +378,16 @@ export class SiGridComponent implements OnInit, OnChanges, OnDestroy {
 
   protected handleGridEvent(event: GridWrapperEvent): void {
     const relevantEventTypes = ['added', 'removed', 'dragstop', 'resizestop'];
+    // When widgets without explicit x/y are first added, GridStack auto-positions them.
+    // Capture these resolved positions so cancel() can restore the exact layout
+    // instead of re-triggering auto-positioning which may produce a different result.
+    if (
+      event.event.type === 'added' &&
+      !this.editableInternal &&
+      this.persistedWidgetInstances.some(w => w.x === undefined || w.y === undefined)
+    ) {
+      this.persistedWidgetInstances = this.updateWidgetPositions(this.persistedWidgetInstances);
+    }
     if (this.editable() && relevantEventTypes.includes(event.event.type)) {
       // Make sure the widget config always holds the latest position information
       const widgets = this.updateWidgetPositions(this.visibleWidgetInstances$.value);