Various embodiments of a system and method for automatically arranging or positioning objects in a block diagram of a graphical program are described. A graphical programming development environment or other software application may be operable to automatically analyze a block diagram of a graphical program, e.g., in order to determine objects present in the block diagram, as well as their initial positions within the block diagram. The graphical programming development environment may then automatically re-position various ones of the objects in the block diagram. In various embodiments, the objects may be re-positioned so as to better organize the block diagram or enable a user to more easily view or understand the block diagram.