diff --git a/packages/mermaid/src/diagrams/state/dataFetcher.js b/packages/mermaid/src/diagrams/state/dataFetcher.js
index d553a4834..ce93cd865 100644
--- a/packages/mermaid/src/diagrams/state/dataFetcher.js
+++ b/packages/mermaid/src/diagrams/state/dataFetcher.js
@@ -302,7 +302,7 @@ export const dataFetcher = (parent, parsedItem, diagramStates, nodes, edges, alt
       domId: stateDomId(itemId, graphItemCount),
       type: newNode.type,
       isGroup: newNode.type === 'group',
-      padding: 15,
+      padding: 8,
       rx: 10,
       ry: 10,
       useRough,
@@ -328,7 +328,7 @@ export const dataFetcher = (parent, parsedItem, diagramStates, nodes, edges, alt
         domId: stateDomId(itemId, graphItemCount, NOTE),
         type: newNode.type,
         isGroup: newNode.type === 'group',
-        padding: 15, //getConfig().flowchart.padding
+        padding: 0, //getConfig().flowchart.padding
         useRough,
       };
       const groupData = {
@@ -341,7 +341,7 @@ export const dataFetcher = (parent, parsedItem, diagramStates, nodes, edges, alt
         domId: stateDomId(itemId, graphItemCount, PARENT),
         type: 'group',
         isGroup: true,
-        padding: 0, //getConfig().flowchart.padding
+        padding: 16, //getConfig().flowchart.padding
         useRough,
       };
       graphItemCount++;
diff --git a/packages/mermaid/src/rendering-util/layout-algorithms/dagre/index.js b/packages/mermaid/src/rendering-util/layout-algorithms/dagre/index.js
index 3a20a2e0e..ff229600f 100644
--- a/packages/mermaid/src/rendering-util/layout-algorithms/dagre/index.js
+++ b/packages/mermaid/src/rendering-util/layout-algorithms/dagre/index.js
@@ -54,7 +54,14 @@ const recursiveRender = async (_elem, graph, diagramType, id, parentCluster, sit
       if (parentCluster !== undefined) {
         const data = JSON.parse(JSON.stringify(parentCluster.clusterData));
         // data.clusterPositioning = true;
-        log.info('Setting data for cluster XXX (', v, ') ', data, parentCluster);
+        log.trace(
+          'Setting data for parent cluster XXX\n Node.id = ',
+          v,
+          '\n data=',
+          data.height,
+          '\nParent cluster',
+          parentCluster.height
+        );
         graph.setNode(parentCluster.id, data);
         if (!graph.parent(v)) {
           log.trace('Setting parent', v, parentCluster.id);
@@ -64,7 +71,8 @@ const recursiveRender = async (_elem, graph, diagramType, id, parentCluster, sit
       log.info('(Insert) Node XXX' + v + ': ' + JSON.stringify(graph.node(v)));
       if (node && node.clusterNode) {
         // const children = graph.children(v);
-        log.info('Cluster identified', v, node.width, graph.node(v));
+        log.info('Cluster identified XXX', v, node.width, graph.node(v));
+        // "o" will contain the full cluster not just the children
         const o = await recursiveRender(
           nodes,
           node.graph,
@@ -76,10 +84,18 @@ const recursiveRender = async (_elem, graph, diagramType, id, parentCluster, sit
         const newEl = o.elem;
         updateNodeBounds(node, newEl);
         node.diff = o.diff || 0;
-        log.info('Node bounds (abc123)', v, node, node.width, node.x, node.y);
+        log.trace(
+          'New compound node after recursive render XAX',
+          v,
+          'width',
+          // node,
+          node.width,
+          'height',
+          node.height
+          // node.x,
+          // node.y
+        );
         setNodeElem(newEl, node);
-
-        log.warn('Recursive render complete ', newEl, node);
       } else {
         if (graph.children(v).length > 0) {
           // This is a cluster but not to be rendered recursively
@@ -89,7 +105,7 @@ const recursiveRender = async (_elem, graph, diagramType, id, parentCluster, sit
           clusterDb[node.id] = { id: findNonClusterChild(node.id, graph), node };
           // insertCluster(clusters, graph.node(v));
         } else {
-          log.info('Node - the non recursive path', v, node.id, node);
+          log.trace('Node - the non recursive path XAX', v, node.id, node);
           await insertNode(nodes, graph.node(v), dir);
         }
       }
@@ -113,20 +129,26 @@ const recursiveRender = async (_elem, graph, diagramType, id, parentCluster, sit
   graph.edges().forEach(function (e) {
     log.info('Edge ' + e.v + ' -> ' + e.w + ': ' + JSON.stringify(e));
   });
-  log.info('#############################################');
-  log.info('###                Layout                 ###');
-  log.info('#############################################');
-  log.info(graph);
+
+  log.info('############################################# XXX');
+  log.info('###                Layout                 ### XXX');
+  log.info('############################################# XXX');
+
   dagreLayout(graph);
+
   log.info('Graph after layout:', graphlibJson.write(graph));
   // Move the nodes to the correct place
   let diff = 0;
-  const { subGraphTitleTotalMargin } = getSubGraphTitleMargins(siteConfig);
+  log.info('Need the size here XAX', graph.node('T1')?.height);
+  let { subGraphTitleTotalMargin } = getSubGraphTitleMargins(siteConfig);
+  subGraphTitleTotalMargin = 0;
   sortNodesByHierarchy(graph).forEach(function (v) {
     const node = graph.node(v);
-    log.info('Position ' + v + ': ' + JSON.stringify(graph.node(v)));
+    const p = graph.node(node?.parentId);
+    subGraphTitleTotalMargin = p?.offsetY || subGraphTitleTotalMargin;
+
     log.info(
-      'Position ' + v + ': (' + node.x,
+      'Position XAX' + v + ': (' + node.x,
       ',' + node.y,
       ') width: ',
       node.width,
@@ -134,19 +156,55 @@ const recursiveRender = async (_elem, graph, diagramType, id, parentCluster, sit
       node.height
     );
     if (node && node.clusterNode) {
-      // clusterDb[node.id].node = node;
-      node.y += subGraphTitleTotalMargin;
+      const parent = graph.node(node.parentId);
+      node.y += 2;
+      node.x -= 8;
+      log.trace('A tainted cluster node XAX', v, node.id, node.width, node.height, node.x, node.y);
+      clusterDb[node.id].node = node;
+      // node.y += subGraphTitleTotalMargin - 10;
+      node.y -= (node.offsetY || 0) / 2;
       positionNode(node);
     } else {
       // Non cluster node
       if (graph.children(v).length > 0) {
-        // A cluster in the non-recursive way
-        // positionCluster(node);
-        node.height += subGraphTitleTotalMargin;
+        node.height += 0;
+        const parent = graph.node(node.parentId);
+        node.y += (node.offsetY || 0) / 2;
         insertCluster(clusters, node);
+
+        // A cluster in the non-recursive way
+        log.trace(
+          'A pure cluster node with children XAX',
+          v,
+          node.id,
+          node.width,
+          node.height,
+          node.x,
+          node.y,
+          'offset',
+          parent?.offsetY
+        );
         clusterDb[node.id].node = node;
       } else {
-        node.y += subGraphTitleTotalMargin / 2;
+        const parent = graph.node(node.parentId);
+        node.y += (parent?.offsetY || 0) / 2;
+        log.trace(
+          'A regular node XAX - using the padding',
+          v,
+          node.id,
+          'parent',
+          node.parentId,
+          node.width,
+          node.height,
+          node.x,
+          node.y,
+          'offsetY',
+          node.offsetY,
+          'parent',
+          parent,
+          node
+        );
+
         positionNode(node);
       }
     }
@@ -169,9 +227,14 @@ const recursiveRender = async (_elem, graph, diagramType, id, parentCluster, sit
       diff = n.diff;
     }
   });
+  log.trace('Returning from recursive render XAX', elem, diff);
   return { elem, diff };
 };
-
+/**
+ * ###############################################################
+ * Render the graph
+ * ###############################################################
+ */
 export const render = async (data4Layout, svg, element) => {
   // Create the input mermaid.graph
   const graph = new graphlib.Graph({
@@ -223,13 +286,3 @@ export const render = async (data4Layout, svg, element) => {
     siteConfig
   );
 };
-
-// const shapeDefinitions = {};
-// export const addShape = ({ shapeType: fun }) => {
-//   shapeDefinitions[shapeType] = fun;
-// };
-
-// const arrowDefinitions = {};
-// export const addArrow = ({ arrowType: fun }) => {
-//   arrowDefinitions[arrowType] = fun;
-// };
diff --git a/packages/mermaid/src/rendering-util/rendering-elements/clusters.js b/packages/mermaid/src/rendering-util/rendering-elements/clusters.js
index b807409ed..f8eeed633 100644
--- a/packages/mermaid/src/rendering-util/rendering-elements/clusters.js
+++ b/packages/mermaid/src/rendering-util/rendering-elements/clusters.js
@@ -247,6 +247,8 @@ const roundedWithTitle = (parent, node) => {
 
   const rectBox = rect.node().getBBox();
   node.height = rectBox.height;
+  node.offsetX = 0;
+  node.offsetY = 20;
 
   node.intersect = function (point) {
     return intersectRect(node, point);
@@ -292,8 +294,9 @@ const divider = (parent, node) => {
   }
   const rectBox = rect.node().getBBox();
   node.width = rectBox.width;
-  node.height = rectBox.height;
-  node.diff = -node.padding / 2;
+  node.height = rectBox.height - node.padding;
+  node.diff = 0; //-node.padding / 2;
+  node.offsetY = 0;
   node.intersect = function (point) {
     return intersectRect(node, point);
   };
@@ -306,7 +309,6 @@ const shapes = { rect, roundedWithTitle, noteGroup, divider };
 let clusterElems = {};
 
 export const insertCluster = (elem, node) => {
-  log.trace('Inserting cluster');
   const shape = node.shape || 'rect';
   const cluster = shapes[shape](elem, node);
   clusterElems[node.id] = cluster;
diff --git a/packages/mermaid/src/rendering-util/rendering-elements/nodes.js b/packages/mermaid/src/rendering-util/rendering-elements/nodes.js
index 3013d2fba..7216749c8 100644
--- a/packages/mermaid/src/rendering-util/rendering-elements/nodes.js
+++ b/packages/mermaid/src/rendering-util/rendering-elements/nodes.js
@@ -75,16 +75,12 @@ export const positionNode = (node) => {
     node,
     'translate(' + (node.x - node.width / 2 - 5) + ', ' + node.width / 2 + ')'
   );
-  const padding = 8;
-  const diff = node.diff || 0;
+
+  const diff = 0;
   if (node.clusterNode) {
     el.attr(
       'transform',
-      'translate(' +
-        (node.x + diff - node.width / 2) +
-        ', ' +
-        (node.y - node.height / 2 - padding) +
-        ')'
+      'translate(' + (node.x + diff - node.width / 2) + ', ' + (node.y - node.height / 2) + ')'
     );
   } else {
     el.attr('transform', 'translate(' + node.x + ', ' + node.y + ')');
diff --git a/packages/mermaid/src/schemas/config.schema.yaml b/packages/mermaid/src/schemas/config.schema.yaml
index 9146e2d94..46f99ad9e 100644
--- a/packages/mermaid/src/schemas/config.schema.yaml
+++ b/packages/mermaid/src/schemas/config.schema.yaml
@@ -100,6 +100,11 @@ properties:
     type: integer
     default: 500
     minimum: 0
+  mergeEdges:
+    description: |
+      Elk specific option that allows edge egdes to share path where it convenient. It can make for pretty diagrams but can also make it harder to read the diagram.
+    type: boolean
+    default: false
   darkMode:
     type: boolean
     default: false