diff --git a/lightningbeam-ui/lightningbeam-editor/src/main.rs b/lightningbeam-ui/lightningbeam-editor/src/main.rs
index 7f852c3..5fb74d8 100644
--- a/lightningbeam-ui/lightningbeam-editor/src/main.rs
+++ b/lightningbeam-ui/lightningbeam-editor/src/main.rs
@@ -2111,33 +2111,38 @@ impl EditorApp {
                 let _ = self.action_executor.execute(Box::new(action));
             } else {
                 // For clips, create a clip instance
-                // Video clips align to stage origin (0,0) and scale to document size
-                // Audio clips are centered in document
-                let (pos_x, pos_y) = if asset_info.clip_type == panes::DragClipType::Video {
-                    (0.0, 0.0)
-                } else {
-                    let doc = self.action_executor.document();
-                    (doc.width / 2.0, doc.height / 2.0)
-                };
-
                 let mut clip_instance = ClipInstance::new(asset_info.clip_id)
-                    .with_timeline_start(drop_time)
-                    .with_position(pos_x, pos_y);
+                    .with_timeline_start(drop_time);
 
-                // For video clips, scale to fill document dimensions
+                // For video clips, scale to fit and center in document
                 if asset_info.clip_type == panes::DragClipType::Video {
                     if let Some((video_width, video_height)) = asset_info.dimensions {
                         let doc = self.action_executor.document();
                         let doc_width = doc.width;
                         let doc_height = doc.height;
 
-                        // Calculate scale to fill document
+                        // Calculate scale to fit (use minimum to preserve aspect ratio)
                         let scale_x = doc_width / video_width;
                         let scale_y = doc_height / video_height;
+                        let uniform_scale = scale_x.min(scale_y);
 
-                        clip_instance.transform.scale_x = scale_x;
-                        clip_instance.transform.scale_y = scale_y;
+                        clip_instance.transform.scale_x = uniform_scale;
+                        clip_instance.transform.scale_y = uniform_scale;
+
+                        // Center the video in the document
+                        let scaled_width = video_width * uniform_scale;
+                        let scaled_height = video_height * uniform_scale;
+                        let center_x = (doc_width - scaled_width) / 2.0;
+                        let center_y = (doc_height - scaled_height) / 2.0;
+
+                        clip_instance.transform.x = center_x;
+                        clip_instance.transform.y = center_y;
                     }
+                } else {
+                    // Audio clips are centered in document
+                    let doc = self.action_executor.document();
+                    clip_instance.transform.x = doc.width / 2.0;
+                    clip_instance.transform.y = doc.height / 2.0;
                 }
 
                 // Save instance ID for potential grouping
diff --git a/lightningbeam-ui/lightningbeam-editor/src/panes/stage.rs b/lightningbeam-ui/lightningbeam-editor/src/panes/stage.rs
index 888428b..dddc226 100644
--- a/lightningbeam-ui/lightningbeam-editor/src/panes/stage.rs
+++ b/lightningbeam-ui/lightningbeam-editor/src/panes/stage.rs
@@ -4705,30 +4705,36 @@ impl PaneRenderer for StagePane {
                                 shared.pending_actions.push(Box::new(action));
                             } else {
                                 // For clips, create a clip instance
-                                // Video clips align to stage origin (0,0), other clips use mouse position
-                                let (pos_x, pos_y) = if dragging.clip_type == DragClipType::Video {
-                                    (0.0, 0.0)
-                                } else {
-                                    (world_pos.x as f64, world_pos.y as f64)
-                                };
-
                                 let mut clip_instance = ClipInstance::new(dragging.clip_id)
-                                    .with_timeline_start(drop_time)
-                                    .with_position(pos_x, pos_y);
+                                    .with_timeline_start(drop_time);
 
-                                // For video clips, scale to fill document dimensions
+                                // For video clips, scale to fit and center in document
                                 if dragging.clip_type == DragClipType::Video {
                                     if let Some((video_width, video_height)) = dragging.dimensions {
                                         let doc_width = shared.action_executor.document().width;
                                         let doc_height = shared.action_executor.document().height;
 
-                                        // Calculate scale to fill document
+                                        // Calculate scale to fit (use minimum to preserve aspect ratio)
                                         let scale_x = doc_width / video_width;
                                         let scale_y = doc_height / video_height;
+                                        let uniform_scale = scale_x.min(scale_y);
 
-                                        clip_instance.transform.scale_x = scale_x;
-                                        clip_instance.transform.scale_y = scale_y;
+                                        clip_instance.transform.scale_x = uniform_scale;
+                                        clip_instance.transform.scale_y = uniform_scale;
+
+                                        // Center the video in the document
+                                        let scaled_width = video_width * uniform_scale;
+                                        let scaled_height = video_height * uniform_scale;
+                                        let center_x = (doc_width - scaled_width) / 2.0;
+                                        let center_y = (doc_height - scaled_height) / 2.0;
+
+                                        clip_instance.transform.x = center_x;
+                                        clip_instance.transform.y = center_y;
                                     }
+                                } else {
+                                    // Audio clips use mouse drop position
+                                    clip_instance.transform.x = world_pos.x as f64;
+                                    clip_instance.transform.y = world_pos.y as f64;
                                 }
 
                                 // Save instance ID for potential grouping