diff --git a/static/app.js b/static/app.js
index ebc5865..e8e32fc 100644
--- a/static/app.js
+++ b/static/app.js
@@ -12,6 +12,7 @@ import './plugins/datapipeline.js';
 import './plugins/monitorAlerting.js';
 import './plugins/thirdPartyService.js';
 import { PluginRegistry } from './pluginRegistry.js';
+import { initializeObservers } from './observers.js';
 
 export class CanvasApp {
     constructor() {
@@ -55,6 +56,12 @@ export class CanvasApp {
         this._maxReconnectDelay = 15000;
         this._reconnectTimer = null;
 
+        // Initialize observer system (alongside existing event handling)
+        const observers = initializeObservers(this.nodePropsPanel, this.propsSaveBtn);
+        this.propertiesPanelSubject = observers.propertiesPanel;
+        this.nodeSelectionSubject = observers.nodeSelection;
+        this.connectionModeSubject = observers.connectionMode;
+
         this.initEventHandlers();
     }
 
@@ -77,13 +84,16 @@ export class CanvasApp {
             this.arrowMode = !this.arrowMode;
             if (this.arrowMode) {
                 this.arrowToolBtn.classList.add('active');
-                this.hidePropsPanel();
+                // Use observer to notify that arrow mode is enabled (will hide props panel)
+                this.connectionModeSubject.notifyConnectionModeChanged(true);
             } else {
                 this.arrowToolBtn.classList.remove('active');
                 if (this.connectionStart) {
                     this.connectionStart.group.classList.remove('selected');
                     this.connectionStart = null;
                 }
+                // Use observer to notify that arrow mode is disabled
+                this.connectionModeSubject.notifyConnectionModeChanged(false);
             }
         });
         this.startChatBtn.addEventListener('click', () => {
@@ -245,9 +255,17 @@ export class CanvasApp {
             
             // Don't hide props panel if clicking on it
             if (!this.nodePropsPanel.contains(e.target)) {
-                this.hidePropsPanel();
+                // Use observer to notify that properties panel should be closed
+                if (this.selectedNode) {
+                    this.propertiesPanelSubject.notifyPropertiesPanelClosed(this.selectedNode);
+                }
+            }
+            
+            // Use observer to notify that current node should be deselected
+            if (this.selectedNode) {
+                this.nodeSelectionSubject.notifyNodeDeselected(this.selectedNode);
+                this.selectedNode = null;
             }
-            this.clearSelection();
         });
 
         this.propsSaveBtn.addEventListener('click', () => {
@@ -258,7 +276,6 @@ export class CanvasApp {
             const plugin = PluginRegistry.get(node.type);
 
             if (!plugin || !plugin.props) {
-                this.hidePropsPanel();
                 return;
             }
 
@@ -280,8 +297,6 @@ export class CanvasApp {
                     node.updateLabel(value);
                 }
             }
-
-            this.hidePropsPanel();
         });
 
         // Prevent props panel from closing when clicking inside it
@@ -310,95 +325,14 @@ export class CanvasApp {
                     });
                     this.selectedNode = null;
                     this.activeNode = null;
-                    this.hidePropsPanel();
                 }
             }
         });
     }
 
-    showPropsPanel(node) {
-        this.activeNode = node;
-        const plugin = PluginRegistry.get(node.type);
-        const panel = this.nodePropsPanel;
-
-        if (!plugin || this.arrowMode) {
-            this.hidePropsPanel();
-            return;
-        }
-
-        // Get the node's actual screen position using getBoundingClientRect
-        const nodeRect = node.group.getBoundingClientRect();
-        const containerRect = this.canvasContainer.getBoundingClientRect();
-        const panelWidth = 220; // From CSS: #node-props-panel width
-        const panelHeight = 400; // Estimated height for boundary checking
-        
-        // Try to position dialog to the right of the node
-        let dialogX = nodeRect.right + 10;
-        let dialogY = nodeRect.top;
-        
-        // Check if dialog would go off the right edge of the screen
-        if (dialogX + panelWidth > window.innerWidth) {
-            // Position to the left of the node instead
-            dialogX = nodeRect.left - panelWidth - 10;
-        }
-        
-        // Check if dialog would go off the bottom of the screen
-        if (dialogY + panelHeight > window.innerHeight) {
-            // Move up to keep it visible
-            dialogY = window.innerHeight - panelHeight - 10;
-        }
-        
-        // Ensure dialog doesn't go above the top of the screen
-        if (dialogY < 10) {
-            dialogY = 10;
-        }
-        
-        panel.style.left = dialogX + 'px';
-        panel.style.top = dialogY + 'px';
-
-        // Hide all groups first
-        const allGroups = panel.querySelectorAll('.prop-group, #label-group, #compute-group, #lb-group');
-        allGroups.forEach(g => g.style.display = 'none');
 
-        const shownGroups = new Set();
 
-        for (const prop of plugin.props) {
-            const group = panel.querySelector(`[data-group='${prop.group}']`);
-            const input = panel.querySelector(`[name='${prop.name}']`);
 
-            // Show group once
-            if (group && !shownGroups.has(group)) {
-                group.style.display = 'block';
-                shownGroups.add(group);
-            }
-
-            // Set value
-            if (input) {
-                input.value = node.props[prop.name] ?? prop.default;
-            }
-        }
-
-        this.propsSaveBtn.disabled = false;
-        panel.style.display = 'block';
-        
-        // Trigger smooth animation
-        setTimeout(() => {
-            panel.classList.add('visible');
-        }, 10);
-    }
-
-    hidePropsPanel() {
-        const panel = this.nodePropsPanel;
-        panel.classList.remove('visible');
-        
-        // Hide after animation completes
-        setTimeout(() => {
-            panel.style.display = 'none';
-        }, 200);
-        
-        this.propsSaveBtn.disabled = true;
-        this.activeNode = null;
-    }
 
     updateConnectionsFor(movedNode) {
         this.connections.forEach(conn => {
@@ -408,17 +342,7 @@ export class CanvasApp {
         });
     }
 
-    clearSelection() {
-        if (this.selectedConnection) {
-            this.selectedConnection.deselect();
-            this.selectedConnection = null;
-        }
 
-        if (this.selectedNode) {
-            this.selectedNode.deselect();
-            this.selectedNode = null;
-        }
-    }
 
     exportDesign() {
         const nodes = this.placedComponents
diff --git a/static/connection.js b/static/connection.js
index 2d01263..69a33d8 100644
--- a/static/connection.js
+++ b/static/connection.js
@@ -41,7 +41,15 @@ export class Connection {
         this.selected = false;
         this.line.addEventListener('click', (e) => {
             e.stopPropagation();
-            this.app.clearSelection();
+            // Clear node selection via observer
+            if (this.app.selectedNode) {
+                this.app.nodeSelectionSubject.notifyNodeDeselected(this.app.selectedNode);
+                this.app.selectedNode = null;
+            }
+            // Clear any previously selected connection
+            if (this.app.selectedConnection) {
+                this.app.selectedConnection.deselect();
+            }
             this.select();
         });
 
@@ -117,7 +125,15 @@ export class Connection {
     }
 
     select() {
-        this.app.clearSelection();
+        // Clear node selection via observer
+        if (this.app.selectedNode) {
+            this.app.nodeSelectionSubject.notifyNodeDeselected(this.app.selectedNode);
+            this.app.selectedNode = null;
+        }
+        // Clear any previously selected connection
+        if (this.app.selectedConnection) {
+            this.app.selectedConnection.deselect();
+        }
         this.selected = true;
         this.line.setAttribute('stroke', '#007bff');
         this.line.setAttribute('stroke-width', 3);
diff --git a/static/node.js b/static/node.js
index 3aeb85f..fbf2a3a 100644
--- a/static/node.js
+++ b/static/node.js
@@ -62,15 +62,17 @@ export class ComponentNode {
             if (app.arrowMode) {
                 Connection.handleClick(this, app);
             } else {
-                app.clearSelection();
-                this.select();
+                // Use observer to notify node selection
+                app.nodeSelectionSubject.notifyNodeSelected(this);
+                app.selectedNode = this; // Keep app state in sync for now
             }
         });
 
         this.group.addEventListener('dblclick', (e) => {
             e.stopPropagation();
             if (!app.arrowMode) {
-                app.showPropsPanel(this);
+                // Use observer pattern instead of direct call
+                app.propertiesPanelSubject.notifyPropertiesPanelRequested(this);
             }
         });
 
@@ -144,7 +146,10 @@ export class ComponentNode {
     }
 
     select() {
-        this.app.clearSelection();
+        // Use observer to clear previous selection and select this node
+        if (this.app.selectedNode && this.app.selectedNode !== this) {
+            this.app.nodeSelectionSubject.notifyNodeDeselected(this.app.selectedNode);
+        }
         this.group.classList.add('selected');
         this.app.selectedNode = this;
     }
diff --git a/static/observers.js b/static/observers.js
new file mode 100644
index 0000000..17dbb68
--- /dev/null
+++ b/static/observers.js
@@ -0,0 +1,411 @@
+/**
+ * Dedicated Observer Pattern Implementation
+ * 
+ * Each observer is dedicated to a particular concern and is type-safe.
+ * This provides clean separation of concerns and maintainable event handling.
+ */
+
+import { PluginRegistry } from './pluginRegistry.js';
+
+/**
+ * NodeSelectionObserver - Dedicated to node selection events only
+ */
+export class NodeSelectionObserver {
+    constructor() {
+        this.observers = [];
+    }
+
+    // Add a specific observer for node selection changes
+    addObserver(observer) {
+        if (typeof observer.onNodeSelected !== 'function' ||
+            typeof observer.onNodeDeselected !== 'function') {
+            throw new Error('Observer must implement onNodeSelected and onNodeDeselected methods');
+        }
+        this.observers.push(observer);
+    }
+
+    removeObserver(observer) {
+        const index = this.observers.indexOf(observer);
+        if (index !== -1) {
+            this.observers.splice(index, 1);
+        }
+    }
+
+    // Notify all observers about node selection
+    notifyNodeSelected(node) {
+        for (const observer of this.observers) {
+            observer.onNodeSelected(node);
+        }
+    }
+
+    // Notify all observers about node deselection  
+    notifyNodeDeselected(node) {
+        for (const observer of this.observers) {
+            observer.onNodeDeselected(node);
+        }
+    }
+}
+
+/**
+ * PropertiesPanelObserver - Dedicated to properties panel events only
+ */
+export class PropertiesPanelObserver {
+    constructor() {
+        this.observers = [];
+    }
+
+    addObserver(observer) {
+        if (typeof observer.onPropertiesPanelRequested !== 'function') {
+            throw new Error('Observer must implement onPropertiesPanelRequested method');
+        }
+        this.observers.push(observer);
+    }
+
+    removeObserver(observer) {
+        const index = this.observers.indexOf(observer);
+        if (index !== -1) {
+            this.observers.splice(index, 1);
+        }
+    }
+
+    notifyPropertiesPanelRequested(node) {
+        for (const observer of this.observers) {
+            observer.onPropertiesPanelRequested(node);
+        }
+    }
+
+    notifyPropertiesPanelClosed(node) {
+        for (const observer of this.observers) {
+            if (observer.onPropertiesPanelClosed) {
+                observer.onPropertiesPanelClosed(node);
+            }
+        }
+    }
+}
+
+/**
+ * ConnectionModeObserver - Dedicated to connection/arrow mode events
+ */
+export class ConnectionModeObserver {
+    constructor() {
+        this.observers = [];
+    }
+
+    addObserver(observer) {
+        if (typeof observer.onConnectionModeChanged !== 'function') {
+            throw new Error('Observer must implement onConnectionModeChanged method');
+        }
+        this.observers.push(observer);
+    }
+
+    removeObserver(observer) {
+        const index = this.observers.indexOf(observer);
+        if (index !== -1) {
+            this.observers.splice(index, 1);
+        }
+    }
+
+    notifyConnectionModeChanged(isEnabled) {
+        for (const observer of this.observers) {
+            observer.onConnectionModeChanged(isEnabled);
+        }
+    }
+}
+
+/**
+ * Properties Panel Manager - Implements observer interfaces
+ */
+export class PropertiesPanelManager {
+    constructor(panelElement, saveButton) {
+        this.panel = panelElement;
+        this.saveButton = saveButton;
+        this.activeNode = null;
+
+        this.setupDOMEventListeners();
+    }
+
+    // Implement the observer interface for properties panel events
+    onPropertiesPanelRequested(node) {
+        const plugin = PluginRegistry.get(node.type);
+        
+        if (!plugin) {
+            this.hidePanel();
+            return;
+        }
+        
+        this.showPanel(node, plugin);
+    }
+
+    onPropertiesPanelClosed(node) {
+        if (this.activeNode === node) {
+            this.hidePanel();
+        }
+    }
+
+    // Implement the observer interface for connection mode events  
+    onConnectionModeChanged(isEnabled) {
+        if (isEnabled && this.activeNode) {
+            this.hidePanel();
+        }
+    }
+
+    // Implement the observer interface for node selection events
+    onNodeSelected(node) {
+        // Properties panel doesn't need to do anything special when nodes are selected
+        // The double-click handler takes care of showing the panel
+    }
+
+    onNodeDeselected(node) {
+        // When a node is deselected, close the properties panel if it's for that node
+        if (this.activeNode === node) {
+            this.hidePanel();
+        }
+    }
+
+    setupDOMEventListeners() {
+        this.saveButton.addEventListener('click', () => {
+            this.saveProperties();
+        });
+
+        this.panel.addEventListener('click', (e) => {
+            e.stopPropagation();
+        });
+    }
+
+    showPanel(node, plugin) {
+        this.activeNode = node;
+        
+        // Calculate position for optimal placement
+        const nodeRect = node.group.getBoundingClientRect();
+        const panelWidth = 220;
+        const panelHeight = 400;
+        
+        let dialogX = nodeRect.right + 10;
+        let dialogY = nodeRect.top;
+        
+        if (dialogX + panelWidth > window.innerWidth) {
+            dialogX = nodeRect.left - panelWidth - 10;
+        }
+        
+        if (dialogY + panelHeight > window.innerHeight) {
+            dialogY = window.innerHeight - panelHeight - 10;
+        }
+        
+        if (dialogY < 10) {
+            dialogY = 10;
+        }
+        
+        this.panel.style.left = dialogX + 'px';
+        this.panel.style.top = dialogY + 'px';
+
+        // Hide all groups first
+        const allGroups = this.panel.querySelectorAll('.prop-group, #label-group, #compute-group, #lb-group');
+        allGroups.forEach(g => g.style.display = 'none');
+
+        const shownGroups = new Set();
+
+        // Set up properties based on plugin definition
+        for (const prop of plugin.props) {
+            const group = this.panel.querySelector(`[data-group='${prop.group}']`);
+            const input = this.panel.querySelector(`[name='${prop.name}']`);
+
+            // Show group once
+            if (group && !shownGroups.has(group)) {
+                group.style.display = 'block';
+                shownGroups.add(group);
+            }
+
+            // Set value
+            if (input) {
+                input.value = node.props[prop.name] ?? prop.default;
+            }
+        }
+
+        this.saveButton.disabled = false;
+        this.panel.style.display = 'block';
+        
+        setTimeout(() => {
+            this.panel.classList.add('visible');
+        }, 10);
+    }
+
+    hidePanel() {
+        if (!this.activeNode) return;
+
+        this.panel.classList.remove('visible');
+        
+        setTimeout(() => {
+            this.panel.style.display = 'none';
+        }, 200);
+        
+        this.activeNode = null;
+    }
+
+    saveProperties() {
+        if (!this.activeNode) return;
+
+        const node = this.activeNode;
+        const panel = this.panel;
+        const plugin = PluginRegistry.get(node.type);
+
+        if (!plugin || !plugin.props) {
+            this.hidePanel();
+            return;
+        }
+
+        // Loop through plugin-defined props and update the node
+        for (const prop of plugin.props) {
+            const input = panel.querySelector(`[name='${prop.name}']`);
+            if (!input) continue;
+
+            let value;
+            if (prop.type === 'number') {
+                value = parseFloat(input.value);
+                if (isNaN(value)) value = prop.default ?? 0;
+            } else {
+                value = input.value;
+            }
+
+            node.props[prop.name] = value;
+            if (prop.name === 'label') {
+                node.updateLabel(value);
+            }
+        }
+
+        this.hidePanel();
+    }
+}
+
+/**
+ * Selection Manager - Implements node selection observer interface
+ */
+export class SelectionManager {
+    constructor() {
+        this.selectedNode = null;
+        this.selectedConnection = null;
+    }
+
+    // Implement the observer interface for node selection
+    onNodeSelected(node) {
+        this.clearSelection();
+        this.selectedNode = node;
+        node.select(); // Visual feedback
+    }
+
+    onNodeDeselected(node) {
+        if (this.selectedNode === node) {
+            node.deselect();
+            this.selectedNode = null;
+        }
+    }
+
+    clearSelection() {
+        if (this.selectedNode) {
+            this.selectedNode.deselect();
+            this.selectedNode = null;
+        }
+
+        if (this.selectedConnection) {
+            this.selectedConnection.deselect();
+            this.selectedConnection = null;
+        }
+    }
+}
+
+/**
+ * Initialize the observer system
+ */
+export function initializeObservers(nodePropsPanel, propsSaveBtn) {
+    // Create the specific observers (subjects)
+    const nodeSelectionSubject = new NodeSelectionObserver();
+    const propertiesPanelSubject = new PropertiesPanelObserver();
+    const connectionModeSubject = new ConnectionModeObserver();
+
+    // Create the specific observers (listeners)
+    const propertiesPanel = new PropertiesPanelManager(nodePropsPanel, propsSaveBtn);
+    
+    const selectionManager = new SelectionManager();
+
+    // Wire them together - each observer registers for what it cares about
+    nodeSelectionSubject.addObserver(selectionManager);
+    nodeSelectionSubject.addObserver(propertiesPanel); // Properties panel cares about selection too
+
+    propertiesPanelSubject.addObserver(propertiesPanel);
+    
+    connectionModeSubject.addObserver(propertiesPanel); // Panel hides when arrow mode enabled
+
+    // Return the subjects so the main app can notify them
+    return {
+        nodeSelection: nodeSelectionSubject,
+        propertiesPanel: propertiesPanelSubject,
+        connectionMode: connectionModeSubject
+    };
+}
+
+/**
+ * How the main CanvasApp would use these observers
+ */
+export class CanvasAppWithObservers {
+    constructor() {
+        // Initialize observers
+        const observers = initializeObservers();
+        this.nodeSelectionSubject = observers.nodeSelection;
+        this.propertiesPanelSubject = observers.propertiesPanel;
+        this.connectionModeSubject = observers.connectionMode;
+
+        this.selectedNode = null;
+        this.arrowMode = false;
+
+        this.setupEventListeners();
+    }
+
+    setupEventListeners() {
+        // Canvas click - clear selection
+        this.canvas.addEventListener('click', (e) => {
+            if (e.detail > 1) return; // Ignore double-clicks
+            
+            if (this.selectedNode) {
+                this.nodeSelectionSubject.notifyNodeDeselected(this.selectedNode);
+                this.selectedNode = null;
+            }
+        });
+
+        // Arrow mode toggle
+        this.arrowToolBtn.addEventListener('click', () => {
+            this.arrowMode = !this.arrowMode;
+            this.connectionModeSubject.notifyConnectionModeChanged(this.arrowMode);
+        });
+    }
+
+    // When a node is double-clicked
+    onNodeDoubleClick(node) {
+        if (!this.arrowMode) {
+            this.propertiesPanelSubject.notifyPropertiesPanelRequested(node);
+        }
+    }
+
+    // When a node is single-clicked
+    onNodeSingleClick(node) {
+        if (this.selectedNode !== node) {
+            if (this.selectedNode) {
+                this.nodeSelectionSubject.notifyNodeDeselected(this.selectedNode);
+            }
+            this.selectedNode = node;
+            this.nodeSelectionSubject.notifyNodeSelected(node);
+        }
+    }
+}
+
+/**
+ * Key Benefits of This Approach:
+ * 
+ * 1. TYPE SAFETY: Each observer has a specific interface
+ * 2. SINGLE RESPONSIBILITY: Each observer handles ONE concern  
+ * 3. NO MAGIC STRINGS: No event type constants that can be mistyped
+ * 4. COMPILE-TIME CHECKING: TypeScript/IDE can validate observer interfaces
+ * 5. FOCUSED: PropertiesPanelObserver only knows about properties panels
+ * 6. TESTABLE: Each observer can be tested with mock implementations
+ * 
+ * This approach is more verbose but much safer and clearer about
+ * what each component is responsible for.
+ */