diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8f2594b..ee39582 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -53,3 +53,11 @@ Format: [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
 - `getAllFilesObject()` helper extracted; `sendFilesAdded()` and `GET /api/files` share it
 - `sendLegacyInitialWsMessages` renamed to `sendAuthlessInitialMessages`
 - `.project-hooks/pre-commit` added to run vitest on every commit
+
+## [Unreleased] - 2026-03-30
+
+### Fixed
+- Bidirectional sync conflict: WS-applied updates no longer reverted by browser auto-sync (lastSyncedElementsRef now updated on element_updated, element_deleted, elements_batch_created)
+- Labeled container updates (rectangle, ellipse, diamond, arrow) now use convertToExcalidrawElements with ID transplant for correct text layout instead of in-place text patch that caused clipping
+- Standalone text element updates now write label.text into text/originalText fields so Excalidraw renders the new value
+- convertTextToLabel now maps text→label for arrows and empty strings (previously skipped falsy text)
diff --git a/frontend/src/App.tsx b/frontend/src/App.tsx
index eb01262..0a78e67 100644
--- a/frontend/src/App.tsx
+++ b/frontend/src/App.tsx
@@ -521,14 +521,67 @@ function App(): JSX.Element {
         case 'element_updated':
           if (data.element) {
             const cleanedUpdatedElement = cleanElementForExcalidraw(data.element)
-            const convertedUpdatedElement = convertToExcalidrawElements([cleanedUpdatedElement], { regenerateIds: false })[0]
-            const updatedElements = currentElements.map(el =>
-              el.id === data.element!.id ? convertedUpdatedElement : el
-            )
+            const newLabelText = data.element.label?.text
+            const isLabeledContainer = newLabelText !== undefined &&
+              ['rectangle', 'ellipse', 'diamond', 'arrow'].includes(data.element.type)
+            const isTextElement = data.element.type === 'text'
+
+            let updatedElements: any[]
+
+            if (isLabeledContainer) {
+              // Use convertToExcalidrawElements for correct text layout/metrics, but
+              // transplant the existing bound text element's ID so Excalidraw's internal
+              // state stays coherent (avoids orphan references and text clipping).
+              const existingBoundText = currentElements.find(
+                el => (el as any).containerId === data.element!.id
+              )
+              const convertedAll = convertToExcalidrawElements([cleanedUpdatedElement], { regenerateIds: false })
+              const convertedContainer = convertedAll[0] as any
+              const convertedBoundText = (convertedAll[1] ?? null) as any
+
+              if (existingBoundText && convertedBoundText) {
+                // Transplant existing bound text ID so container → text link is stable
+                const patchedBoundText = { ...convertedBoundText, id: (existingBoundText as any).id }
+                const patchedContainer = {
+                  ...convertedContainer,
+                  boundElements: [{ id: (existingBoundText as any).id, type: 'text' }]
+                }
+                updatedElements = [
+                  ...currentElements.filter(el => el.id !== data.element!.id && el.id !== (existingBoundText as any).id),
+                  patchedContainer,
+                  patchedBoundText
+                ]
+              } else {
+                // No existing bound text — use converted result as-is
+                updatedElements = [
+                  ...currentElements.filter(el => el.id !== data.element!.id && (el as any).containerId !== data.element!.id),
+                  ...(convertedBoundText ? [convertedContainer, convertedBoundText] : [convertedContainer])
+                ]
+              }
+            } else if (isTextElement) {
+              // For standalone text elements: write label.text into the text field
+              const textValue = newLabelText ?? (data.element as any).text ?? ''
+              updatedElements = currentElements.map(el =>
+                el.id === data.element!.id
+                  ? { ...(el as any), ...cleanedUpdatedElement, text: textValue, originalText: textValue }
+                  : el
+              )
+            } else {
+              // Generic element (arrows, etc.)
+              const convertedAll = convertToExcalidrawElements([cleanedUpdatedElement], { regenerateIds: false })
+              updatedElements = currentElements
+                .filter(el => (el as any).containerId !== data.element!.id)
+                .map(el => el.id === data.element!.id ? convertedAll[0] : el)
+            }
+
             api.updateScene({
               elements: updatedElements,
               captureUpdate: CaptureUpdateAction.NEVER
             })
+            // Update sync baseline so auto-sync doesn't overwrite this WS-applied change
+            const wsUpdatedBaseline = new Map(lastSyncedElementsRef.current)
+            wsUpdatedBaseline.set(data.element.id, data.element)
+            lastSyncedElementsRef.current = wsUpdatedBaseline
             sendAck(data.msgId, 'applied', 1, 1)
           }
           break
@@ -540,6 +593,10 @@ function App(): JSX.Element {
               elements: filteredElements,
               captureUpdate: CaptureUpdateAction.NEVER
             })
+            // Remove from sync baseline so auto-sync doesn't re-create it
+            const wsDeletedBaseline = new Map(lastSyncedElementsRef.current)
+            wsDeletedBaseline.delete(data.elementId)
+            lastSyncedElementsRef.current = wsDeletedBaseline
             sendAck(data.msgId, 'applied', 1, 1)
           }
           break
@@ -568,6 +625,12 @@ function App(): JSX.Element {
             const expectedIds = data.elements.map((e: ServerElement) => e.id)
             const landedCount = expectedIds.filter(id => scene.some(s => s.id === id)).length
             const status = landedCount === expectedIds.length ? 'applied' : landedCount > 0 ? 'partial' : 'failed'
+            // Update sync baseline so auto-sync doesn't treat these as new local changes
+            const wsBatchBaseline = new Map(lastSyncedElementsRef.current)
+            for (const el of data.elements) {
+              wsBatchBaseline.set(el.id, el)
+            }
+            lastSyncedElementsRef.current = wsBatchBaseline
             sendAck(data.msgId, status, landedCount, expectedIds.length)
           }
           break
diff --git a/src/index.ts b/src/index.ts
index 0a1ac27..beafe63 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -1033,18 +1033,15 @@ const server = new Server(
 // Helper function to convert text property to label format for Excalidraw
 function convertTextToLabel(element: ServerElement): ServerElement {
   const { text, ...rest } = element;
-  if (text) {
-    // For standalone text elements, keep text as direct property
-    if (element.type === 'text') {
-      return element; // Keep text as direct property
-    }
-    // For other elements (rectangle, ellipse, diamond), convert to label format
-    return {
-      ...rest,
-      label: { text }
-    } as ServerElement;
-  }
-  return element;
+  // text === undefined means the caller didn't touch the text field — leave as-is
+  if (text === undefined) return element;
+  // Standalone text elements keep text as a direct property
+  if (element.type === 'text') return element;
+  // All container/shape/arrow elements: map text → label.text (empty string clears it)
+  return {
+    ...rest,
+    label: { text }
+  } as ServerElement;
 }
 
 // Set up request handler for tool calls