diff --git a/.changeset/handle-blank-canvas.md b/.changeset/handle-blank-canvas.md
new file mode 100644
index 00000000..d99bc64a
--- /dev/null
+++ b/.changeset/handle-blank-canvas.md
@@ -0,0 +1,5 @@
+---
+"@openworkflowspec/diagram-editor": minor
+---
+
+Handle blank canvas in diagram editor
diff --git a/packages/dual-editor/tests/DualEditor.test.tsx b/packages/dual-editor/tests/DualEditor.test.tsx
index 3ef68f2c..7b7eab34 100644
--- a/packages/dual-editor/tests/DualEditor.test.tsx
+++ b/packages/dual-editor/tests/DualEditor.test.tsx
@@ -15,7 +15,7 @@
  */
 
 import { act, fireEvent, render, screen, waitFor } from "@testing-library/react";
-import { useEffect, useState } from "react";
+import { useEffect, useRef } from "react";
 import type { ComponentProps } from "react";
 import { beforeEach, describe, expect, it, vi } from "vitest";
 import { DualEditor } from "../src/DualEditor";
@@ -28,17 +28,21 @@ vi.mock("@openworkflowspec/text-editor", () => ({
     content: string;
     onContentChange?: (content: string) => void;
   }) => {
-    const [editorContent, setEditorContent] = useState(content);
-    useEffect(() => setEditorContent(content), [content]);
+    const textareaRef = useRef<HTMLTextAreaElement>(null);
+    useEffect(() => {
+      if (textareaRef.current && textareaRef.current.value !== content) {
+        textareaRef.current.value = content;
+      }
+    }, [content]);
 
     return (
       <textarea
         aria-label="Text source"
         data-testid="text-source"
-        value={editorContent}
+        ref={textareaRef}
+        defaultValue={content}
         onChange={(event) => {
           const nextContent = event.currentTarget.value;
-          setEditorContent(nextContent);
           onContentChange?.(nextContent);
         }}
       />
@@ -56,18 +60,22 @@ vi.mock("@openworkflowspec/diagram-editor", () => ({
     language?: "json" | "yaml";
     onContentChange?: (content: string) => void;
   }) => {
-    const [diagramContent, setDiagramContent] = useState(content);
-    useEffect(() => setDiagramContent(content), [content]);
+    const textareaRef = useRef<HTMLTextAreaElement>(null);
+    useEffect(() => {
+      if (textareaRef.current && textareaRef.current.value !== content) {
+        textareaRef.current.value = content;
+      }
+    }, [content]);
 
     return (
       <textarea
         aria-label="Diagram source"
         data-testid="diagram-source"
         data-format={language}
-        value={diagramContent}
+        ref={textareaRef}
+        defaultValue={content}
         onChange={(event) => {
           const nextContent = event.currentTarget.value;
-          setDiagramContent(nextContent);
           onContentChange?.(nextContent);
         }}
       />
diff --git a/packages/open-workflow-diagram-editor/src/diagram-editor/DiagramEditor.tsx b/packages/open-workflow-diagram-editor/src/diagram-editor/DiagramEditor.tsx
index e0f8372a..97e2dc39 100644
--- a/packages/open-workflow-diagram-editor/src/diagram-editor/DiagramEditor.tsx
+++ b/packages/open-workflow-diagram-editor/src/diagram-editor/DiagramEditor.tsx
@@ -113,11 +113,31 @@ export type DiagramEditorProps = {
 const DiagramEditorContent = ({
   diagramDivRef,
   colorMode,
+  content,
 }: {
   diagramDivRef: React.RefObject<HTMLDivElement | null>;
   colorMode: ResolvedColorMode;
+  content: string;
 }) => {
-  const { model } = useDiagramEditorContext();
+  const { model, processedContent } = useDiagramEditorContext();
+  const { t } = useI18n();
+  if (content.trim().length === 0 && model === null) {
+    return (
+      <div className="dec-empty-state">
+        <div className="dec-empty-state__content">
+          <h2 className="dec-empty-state__title">{t("workflowEmpty.title")}</h2>
+          <p className="dec-empty-state__message">{t("workflowEmpty.message")}</p>
+        </div>
+      </div>
+    );
+  }
+  if (model === null && processedContent !== content) {
+    return (
+      <div role="status" aria-busy="true" className="dec-loading-state">
+        {t("workflowLoading")}
+      </div>
+    );
+  }
   return model === null ? (
     <ParsingErrorPage />
   ) : (
@@ -158,7 +178,11 @@ const DiagramEditorBody = ({
         >
           <SidebarProvider defaultOpen={false}>
             <div className="dec-diagram-content">
-              <DiagramEditorContent diagramDivRef={diagramDivRef} colorMode={resolvedColorMode} />
+              <DiagramEditorContent
+                diagramDivRef={diagramDivRef}
+                colorMode={resolvedColorMode}
+                content={props.content}
+              />
             </div>
             <SidePanel />
           </SidebarProvider>
diff --git a/packages/open-workflow-diagram-editor/src/i18n/locales/en.ts b/packages/open-workflow-diagram-editor/src/i18n/locales/en.ts
index ff8cdae7..a2469f89 100644
--- a/packages/open-workflow-diagram-editor/src/i18n/locales/en.ts
+++ b/packages/open-workflow-diagram-editor/src/i18n/locales/en.ts
@@ -18,6 +18,9 @@ export const en = {
   "workflowError.title": "Workflow Error",
   "workflowError.default": "There was an error loading the workflow.",
   "workflowError.parsing.title": "Parsing Error",
+  "workflowEmpty.title": "Your diagram will appear here",
+  "workflowEmpty.message": "Start by adding YAML or JSON workflow content to see your diagram.",
+  workflowLoading: "Loading diagram…",
   "sidebar.toggle": "Toggle sidebar",
   "sidebar.workflow": "Workflow",
   "sidebar.document": "Document",
diff --git a/packages/open-workflow-diagram-editor/src/store/DiagramEditorContext.tsx b/packages/open-workflow-diagram-editor/src/store/DiagramEditorContext.tsx
index 045c34b0..5ec6e25b 100644
--- a/packages/open-workflow-diagram-editor/src/store/DiagramEditorContext.tsx
+++ b/packages/open-workflow-diagram-editor/src/store/DiagramEditorContext.tsx
@@ -23,6 +23,8 @@ export type DiagramEditorContextType = {
   isReadOnly: boolean;
   locale: string;
   contentFormat: ContentFormat;
+  /** Content string whose most recent parse attempt has completed. */
+  processedContent: string | null;
   model: Specification.Workflow | null;
   errors: SdkError[];
   nodes: RF.Node[];
diff --git a/packages/open-workflow-diagram-editor/src/store/DiagramEditorContextProvider.tsx b/packages/open-workflow-diagram-editor/src/store/DiagramEditorContextProvider.tsx
index 602d3861..39754bfe 100644
--- a/packages/open-workflow-diagram-editor/src/store/DiagramEditorContextProvider.tsx
+++ b/packages/open-workflow-diagram-editor/src/store/DiagramEditorContextProvider.tsx
@@ -55,6 +55,7 @@ export const DiagramEditorContextProvider = React.forwardRef<
     props.content.trimStart().startsWith("{") ? "json" : "yaml",
   );
   const contentFormat = props.language ?? detectedContentFormat;
+  const [processedContent, setProcessedContent] = React.useState<string | null>(null);
 
   // Config state (non-history)
   const [locale, setLocale] = React.useState<string>(props.locale);
@@ -114,6 +115,8 @@ export const DiagramEditorContextProvider = React.forwardRef<
     // This will be addressed in the editing feature branch as the implemntation is changing
     // oxlint-disable-next-line react/set-state-in-effect
     setErrors(parsedErrors);
+    // oxlint-disable-next-line react/set-state-in-effect
+    setProcessedContent(props.content);
     if (parsedModel === null) {
       // Content is unparseable — reset history to null so downstream consumers
       // (e.g. DiagramEditorContent) see model === null and render the error page
@@ -148,6 +151,7 @@ export const DiagramEditorContextProvider = React.forwardRef<
       if (newModel === null) return;
 
       setErrors(newErrors);
+      setProcessedContent(content);
 
       const newFormat: ContentFormat = content.trimStart().startsWith("{") ? "json" : "yaml";
       setDetectedContentFormat(newFormat);
@@ -199,6 +203,7 @@ export const DiagramEditorContextProvider = React.forwardRef<
       isReadOnly,
       locale,
       contentFormat,
+      processedContent,
       model,
       errors,
       nodes,
@@ -224,6 +229,7 @@ export const DiagramEditorContextProvider = React.forwardRef<
       isReadOnly,
       locale,
       contentFormat,
+      processedContent,
       model,
       errors,
       nodes,
diff --git a/packages/open-workflow-diagram-editor/src/styles.css b/packages/open-workflow-diagram-editor/src/styles.css
index 0d087859..cc2e4176 100644
--- a/packages/open-workflow-diagram-editor/src/styles.css
+++ b/packages/open-workflow-diagram-editor/src/styles.css
@@ -82,6 +82,10 @@
     --dec-surface-dark-raised: #1f2937;
     --dec-surface-dark-elevated: #2d3748;
 
+    /* Empty and loading state text */
+    --dec-state-title-color: #111827;
+    --dec-state-message-color: #4b5563;
+
     /* edges */
     --dec-edge-selected: #aea6a6;
     --dec-edge-selected-condition: rgb(var(--dec-selected-rgb));
@@ -97,6 +101,9 @@
   }
 
   .dec-root.dark {
+    --dec-state-title-color: #f3f4f6;
+    --dec-state-message-color: #d1d5db;
+
     /* canvas */
     --dec-canvas-bg: #1c222c;
     --dec-canvas-pattern: #4a5568;
@@ -123,4 +130,32 @@
   .dec-root .dec-diagram-content {
     @apply dec:flex-1 dec:min-w-0 dec:h-full;
   }
+
+  .dec-root .dec-empty-state {
+    @apply dec:flex dec:h-full dec:min-h-0 dec:items-center dec:justify-center dec:p-6;
+  }
+
+  .dec-root .dec-empty-state,
+  .dec-root .dec-loading-state {
+    background-color: var(--dec-canvas-bg);
+  }
+
+  .dec-root .dec-empty-state__content {
+    @apply dec:max-w-sm dec:text-center;
+  }
+
+  .dec-root .dec-empty-state__title {
+    @apply dec:text-base dec:font-semibold;
+    color: var(--dec-state-title-color);
+  }
+
+  .dec-root .dec-empty-state__message {
+    @apply dec:mt-1 dec:text-sm;
+    color: var(--dec-state-message-color);
+  }
+
+  .dec-root .dec-loading-state {
+    @apply dec:flex dec:h-full dec:items-center dec:justify-center dec:text-sm;
+    color: var(--dec-state-message-color);
+  }
 }
diff --git a/packages/open-workflow-diagram-editor/tests/diagram-editor/DiagramEditor.test.tsx b/packages/open-workflow-diagram-editor/tests/diagram-editor/DiagramEditor.test.tsx
index 84f0266e..545f1251 100644
--- a/packages/open-workflow-diagram-editor/tests/diagram-editor/DiagramEditor.test.tsx
+++ b/packages/open-workflow-diagram-editor/tests/diagram-editor/DiagramEditor.test.tsx
@@ -50,6 +50,75 @@ describe("DiagramEditor Component", () => {
     expect(screen.queryByTestId("diagram-container")).not.toBeInTheDocument();
   });
 
+  it.each(["", " \n\t "])(
+    "renders the empty state without an error for blank content %j",
+    (content) => {
+      render(<DiagramEditor content={content} locale={locale} isReadOnly={isReadOnly} />);
+
+      expect(screen.getByText(t("workflowEmpty.title"))).toBeInTheDocument();
+      expect(screen.getByText(t("workflowEmpty.message"))).toBeInTheDocument();
+      expect(screen.queryByRole("alert")).not.toBeInTheDocument();
+      expect(screen.queryByTestId("diagram-container")).not.toBeInTheDocument();
+    },
+  );
+
+  it("transitions from the empty state to the diagram when workflow content is added", async () => {
+    const { container, rerender } = render(
+      <DiagramEditor content="" locale={locale} isReadOnly={isReadOnly} />,
+    );
+
+    expect(screen.getByText(t("workflowEmpty.title"))).toBeInTheDocument();
+
+    const insertedAlerts: Element[] = [];
+    const observer = new MutationObserver((records) => {
+      for (const record of records) {
+        for (const node of record.addedNodes) {
+          if (!(node instanceof Element)) continue;
+          if (node.matches('[role="alert"]')) insertedAlerts.push(node);
+          insertedAlerts.push(...node.querySelectorAll('[role="alert"]'));
+        }
+      }
+    });
+    observer.observe(container, { childList: true, subtree: true });
+
+    try {
+      rerender(
+        <DiagramEditor
+          content={BASIC_VALID_WORKFLOW_YAML}
+          locale={locale}
+          isReadOnly={isReadOnly}
+        />,
+      );
+
+      // A mounted wrapper can still contain an empty canvas while ELK is laying out nodes.
+      await waitFor(() => expect(container.querySelector(".dec-leaf-node")).toBeInTheDocument());
+      await act(async () => {
+        await Promise.resolve();
+      });
+    } finally {
+      observer.disconnect();
+    }
+
+    expect(insertedAlerts).toHaveLength(0);
+    expect(screen.queryByText(t("workflowEmpty.title"))).not.toBeInTheDocument();
+    expect(screen.queryByRole("alert")).not.toBeInTheDocument();
+  });
+
+  it("returns to the empty state when workflow content is removed", async () => {
+    const { rerender } = render(
+      <DiagramEditor content={BASIC_VALID_WORKFLOW_YAML} locale={locale} isReadOnly={isReadOnly} />,
+    );
+
+    await waitFor(() => expect(screen.getByTestId("diagram-container")).toBeInTheDocument());
+    rerender(<DiagramEditor content={"  \n"} locale={locale} isReadOnly={isReadOnly} />);
+
+    await waitFor(() => {
+      expect(screen.getByText(t("workflowEmpty.title"))).toBeInTheDocument();
+      expect(screen.queryByTestId("diagram-container")).not.toBeInTheDocument();
+      expect(screen.queryByRole("alert")).not.toBeInTheDocument();
+    });
+  });
+
   it.each([
     { colorMode: "light" as const, expectedDark: false },
     { colorMode: "dark" as const, expectedDark: true },
@@ -234,6 +303,19 @@ do:
     expect(output).toContain("loaded-via-set-content");
   });
 
+  it("shows a workflow loaded through the ref when the initial content is blank", async () => {
+    const ref = React.createRef<DiagramEditorRef>();
+    render(<DiagramEditor ref={ref} content="" locale="en" isReadOnly={true} />);
+
+    expect(screen.getByText(t("workflowEmpty.title"))).toBeInTheDocument();
+
+    act(() => ref.current?.setContent(BASIC_VALID_WORKFLOW_YAML));
+
+    await waitFor(() => expect(screen.getByTestId("diagram-container")).toBeInTheDocument());
+    expect(screen.queryByText(t("workflowEmpty.title"))).not.toBeInTheDocument();
+    expect(screen.queryByRole("alert")).not.toBeInTheDocument();
+  });
+
   it("setContent with JSON input switches the format so getContent returns JSON", () => {
     const ref = React.createRef<DiagramEditorRef>();
 
diff --git a/packages/open-workflow-diagram-editor/tests/test-utils/render-helpers.tsx b/packages/open-workflow-diagram-editor/tests/test-utils/render-helpers.tsx
index 9d13e895..2458369a 100644
--- a/packages/open-workflow-diagram-editor/tests/test-utils/render-helpers.tsx
+++ b/packages/open-workflow-diagram-editor/tests/test-utils/render-helpers.tsx
@@ -38,6 +38,7 @@ export const createMockContextValue = (
   isReadOnly: true,
   locale: "en",
   contentFormat: "yaml",
+  processedContent: null,
   model: null,
   errors: [],
   nodes: [],