diff --git a/python/commands/dynamic_symbol_loader.py b/python/commands/dynamic_symbol_loader.py
index 4c9b778..22ea7c4 100644
--- a/python/commands/dynamic_symbol_loader.py
+++ b/python/commands/dynamic_symbol_loader.py
@@ -425,6 +425,14 @@ class DynamicSymbolLoader:
     (property "Datasheet" "~" (at {x} {y} 0)
       (effects (font (size 1.27 1.27)) (hide yes))
     )
+    (instances
+      (project "project"
+        (path "/"
+          (reference "{reference}")
+          (unit 1)
+        )
+      )
+    )
   )"""
 
         with open(schematic_path, "r", encoding="utf-8") as f:
diff --git a/python/commands/wire_dragger.py b/python/commands/wire_dragger.py
index 910236b..2ad7a54 100644
--- a/python/commands/wire_dragger.py
+++ b/python/commands/wire_dragger.py
@@ -6,7 +6,8 @@ All methods operate on in-memory sexpdata lists (no disk I/O).
 
 import logging
 import math
-from typing import Dict, Optional, Tuple
+import uuid
+from typing import Dict, List, Optional, Tuple
 
 import sexpdata
 from sexpdata import Symbol
@@ -27,6 +28,10 @@ _K = {
         "wire",
         "junction",
         "property",
+        "stroke",
+        "width",
+        "type",
+        "uuid",
     ]
 }
 
@@ -309,3 +314,126 @@ class WireDragger:
                         psub[2] += dy
                         break
         return True
+
+    @staticmethod
+    def _make_wire_sexp(x1: float, y1: float, x2: float, y2: float) -> list:
+        """Build a wire s-expression list in KiCAD schematic format."""
+        wire_uuid = str(uuid.uuid4())
+        return [
+            _K["wire"],
+            [_K["pts"], [_K["xy"], x1, y1], [_K["xy"], x2, y2]],
+            [_K["stroke"], [_K["width"], 0], [_K["type"], Symbol("default")]],
+            [_K["uuid"], wire_uuid],
+        ]
+
+    @staticmethod
+    def get_all_stationary_pin_positions(
+        sch_data: list,
+        moved_reference: str,
+    ) -> Dict[Tuple[float, float], str]:
+        """
+        Return a map of {world_xy: reference} for every pin of every symbol
+        in sch_data *except* moved_reference.
+
+        This is used to detect pins of stationary components that coincide
+        with pins of the moved component (touching-pin connections).
+        """
+        sym_k = _K["symbol"]
+        prop_k = _K["property"]
+        result: Dict[Tuple[float, float], str] = {}
+
+        for item in sch_data:
+            if not (isinstance(item, list) and item and item[0] == sym_k):
+                continue
+            # Determine reference
+            ref_val = None
+            for sub in item[1:]:
+                if isinstance(sub, list) and len(sub) >= 3 and sub[0] == prop_k:
+                    if str(sub[1]).strip('"') == "Reference":
+                        ref_val = str(sub[2]).strip('"')
+                        break
+            if ref_val is None or ref_val == moved_reference:
+                continue
+            # Skip template / power symbols whose references start with special chars
+            # but we still want to handle them — no filtering needed here.
+
+            # Find lib_id and position for this symbol
+            found = WireDragger.find_symbol(sch_data, ref_val)
+            if found is None:
+                continue
+            _, sx, sy, rotation, lib_id, mirror_x, mirror_y = found
+            pins = WireDragger.get_pin_defs(sch_data, lib_id)
+            for pin_num, pin in pins.items():
+                wx, wy = WireDragger.pin_world_xy(
+                    pin["x"], pin["y"], sx, sy, rotation, mirror_x, mirror_y
+                )
+                key = (round(wx, 6), round(wy, 6))
+                result[key] = ref_val
+
+        return result
+
+    @staticmethod
+    def synthesize_touching_pin_wires(
+        sch_data: list,
+        moved_reference: str,
+        pin_positions: Dict[str, Tuple[Tuple[float, float], Tuple[float, float]]],
+        eps: float = EPS,
+    ) -> int:
+        """
+        Detect touching-pin connections and synthesize wire segments to bridge gaps
+        created by moving a component.
+
+        For each pin of *moved_reference* whose old world position coincides with
+        a pin of a stationary component:
+          - If the pin moved (old_xy != new_xy), insert a wire from old_xy to new_xy.
+          - If the pin now lands on another stationary pin's position, skip (they touch again).
+          - If old_xy == new_xy, do nothing (no gap was created).
+
+        Modifies sch_data in place.
+        Returns the number of wire segments synthesized.
+        """
+        if not pin_positions:
+            return 0
+
+        stationary_pins = WireDragger.get_all_stationary_pin_positions(sch_data, moved_reference)
+        if not stationary_pins:
+            return 0
+
+        synthesized = 0
+
+        for pin_num, (old_xy, new_xy) in pin_positions.items():
+            # Check if a stationary pin touches this pin's old position
+            touching = any(
+                _coords_match(old_xy[0], old_xy[1], sx, sy, eps) for (sx, sy) in stationary_pins
+            )
+            if not touching:
+                continue
+
+            # The pin has moved — check if it actually separated
+            if _coords_match(old_xy[0], old_xy[1], new_xy[0], new_xy[1], eps):
+                # Pin didn't actually move; no gap
+                continue
+
+            # Check if the pin's new position happens to touch another stationary pin
+            # (component moved into a different touching position — no wire needed)
+            rejoining = any(
+                _coords_match(new_xy[0], new_xy[1], sx, sy, eps) for (sx, sy) in stationary_pins
+            )
+            if rejoining:
+                logger.debug(
+                    f"Pin {moved_reference}/{pin_num} moved from {old_xy} to {new_xy} "
+                    f"and rejoins another stationary pin; no wire synthesized"
+                )
+                continue
+
+            logger.info(
+                f"Synthesizing wire for touching-pin connection: "
+                f"{moved_reference}/{pin_num} moved from {old_xy} to {new_xy}"
+            )
+            wire = WireDragger._make_wire_sexp(old_xy[0], old_xy[1], new_xy[0], new_xy[1])
+            # Insert before the last item (sheet_instances) to keep file tidy,
+            # but appending is also valid — just append.
+            sch_data.append(wire)
+            synthesized += 1
+
+        return synthesized
diff --git a/python/kicad_interface.py b/python/kicad_interface.py
index 899744d..1c14710 100644
--- a/python/kicad_interface.py
+++ b/python/kicad_interface.py
@@ -2081,10 +2081,24 @@ class KiCADInterface:
                 # Build old→new coordinate map (deduplicate coincident pins)
                 old_to_new = {}
                 for _pin, (old_xy, new_xy) in pin_positions.items():
+                    if old_xy in old_to_new:
+                        logger.warning(
+                            f"move_schematic_component: pin {_pin!r} of {reference!r} "
+                            f"shares old position {old_xy} with another pin; "
+                            f"keeping first entry, skipping duplicate"
+                        )
+                        continue
                     old_to_new[old_xy] = new_xy
 
                 drag_summary = WireDragger.drag_wires(sch_data, old_to_new)
 
+                # Synthesize wires for touching-pin connections after dragging,
+                # so drag_wires doesn't accidentally move and collapse the new wire.
+                wires_synthesized = WireDragger.synthesize_touching_pin_wires(
+                    sch_data, reference, pin_positions
+                )
+                drag_summary["wires_synthesized"] = wires_synthesized
+
             # Update symbol position
             WireDragger.update_symbol_position(sch_data, reference, float(new_x), float(new_y))
 
@@ -2097,6 +2111,7 @@ class KiCADInterface:
                 "newPosition": {"x": new_x, "y": new_y},
                 "wiresMoved": drag_summary.get("endpoints_moved", 0),
                 "wiresRemoved": drag_summary.get("wires_removed", 0),
+                "wiresSynthesized": drag_summary.get("wires_synthesized", 0),
             }
 
         except Exception as e:
@@ -2212,7 +2227,7 @@ class KiCADInterface:
 
                 old_ref = symbol.property.Reference.value
                 new_ref = f"{prefix}{next_num}"
-                symbol.property.Reference.value = new_ref
+                symbol.setAllReferences(new_ref)
                 existing_refs[prefix].add(next_num)
 
                 uuid_val = str(symbol.uuid.value) if hasattr(symbol, "uuid") else ""
diff --git a/python/tests/test_move_with_wire_preservation.py b/python/tests/test_move_with_wire_preservation.py
index acdda76..fceefc8 100644
--- a/python/tests/test_move_with_wire_preservation.py
+++ b/python/tests/test_move_with_wire_preservation.py
@@ -18,7 +18,7 @@ from sexpdata import Symbol
 # Make python/ importable
 sys.path.insert(0, str(Path(__file__).resolve().parent.parent))
 
-from commands.wire_dragger import EPS, WireDragger, _rotate
+from commands.wire_dragger import EPS, WireDragger, _coords_match, _rotate
 
 TEMPLATE_PATH = Path(__file__).resolve().parent.parent / "templates" / "empty.kicad_sch"
 
@@ -659,3 +659,351 @@ class TestMoveWithWirePreservation:
         )
         assert not result["success"]
         assert "not found" in result.get("message", "").lower()
+
+
+# ---------------------------------------------------------------------------
+# TestSynthesizeTouchingPinWires  (unit)
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestSynthesizeTouchingPinWires:
+    """Unit tests for WireDragger.synthesize_touching_pin_wires."""
+
+    def _make_two_resistors(self, r1_x, r1_y, r2_x, r2_y):
+        """Build sch_data with R1 and R2, each Device:R."""
+        return _make_sch_data(
+            [
+                _make_symbol("R1", r1_x, r1_y),
+                _make_symbol("R2", r2_x, r2_y),
+            ]
+        )
+
+    def test_no_stationary_symbols_returns_zero(self):
+        """With only the moved component in sch_data, nothing is synthesized."""
+        sch = _make_sch_data([_make_symbol("R1", 0, 0)])
+        pin_positions = WireDragger.compute_pin_positions(sch, "R1", 10, 20)
+        count = WireDragger.synthesize_touching_pin_wires(sch, "R1", pin_positions)
+        assert count == 0
+
+    def test_touching_pin_gap_generates_wire(self):
+        """
+        R1 at (0, 0) pin2 at (0, -3.81).
+        R2 at (0, -7.62) pin1 at (0, -3.81).  ← pins touch
+        Moving R1 to (10, 0) causes pin2 to move to (10, -3.81).
+        A wire from (0, -3.81) to (10, -3.81) should be synthesized.
+        """
+        # R2 pin1 is at (0, -7.62 + 3.81) = (0, -3.81)
+        sch = self._make_two_resistors(0, 0, 0, -7.62)
+
+        # Verify the touching: R1 pin2 old = (0, -3.81), R2 pin1 = (0, -3.81)
+        pin_positions = WireDragger.compute_pin_positions(sch, "R1", 10, 0)
+        old2, new2 = pin_positions["2"]
+        assert abs(old2[0] - 0) < 1e-3 and abs(old2[1] - (-3.81)) < 1e-3
+        assert abs(new2[0] - 10) < 1e-3 and abs(new2[1] - (-3.81)) < 1e-3
+
+        wire_count_before = sum(
+            1 for item in sch if isinstance(item, list) and item and item[0] == _sym("wire")
+        )
+        count = WireDragger.synthesize_touching_pin_wires(sch, "R1", pin_positions)
+        assert count == 1, f"Expected 1 synthesized wire, got {count}"
+
+        wires = [
+            item for item in sch if isinstance(item, list) and item and item[0] == _sym("wire")
+        ]
+        assert len(wires) == wire_count_before + 1
+
+        # The new wire should span (0, -3.81) → (10, -3.81)
+        new_wire = wires[-1]
+        pts = next(s for s in new_wire[1:] if isinstance(s, list) and s and s[0] == _sym("pts"))
+        xys = [p for p in pts[1:] if isinstance(p, list) and len(p) >= 3 and p[0] == _sym("xy")]
+        assert len(xys) == 2
+        endpoints = {
+            (round(float(xys[0][1]), 3), round(float(xys[0][2]), 3)),
+            (round(float(xys[1][1]), 3), round(float(xys[1][2]), 3)),
+        }
+        assert (0.0, -3.81) in endpoints, f"Expected (0, -3.81) in wire endpoints, got {endpoints}"
+        assert (
+            10.0,
+            -3.81,
+        ) in endpoints, f"Expected (10, -3.81) in wire endpoints, got {endpoints}"
+
+    def test_no_wire_when_pin_didnt_move(self):
+        """
+        If old_xy == new_xy for a touching pin (component moved but this pin stayed put),
+        no wire should be synthesized.
+        """
+        # R1 at (0, 0), R2 at (0, -7.62) — pin2 of R1 and pin1 of R2 touch at (0, -3.81)
+        sch = self._make_two_resistors(0, 0, 0, -7.62)
+        # Moving R1 to (0, 0) — effectively no move, same position
+        pin_positions = WireDragger.compute_pin_positions(sch, "R1", 0, 0)
+        count = WireDragger.synthesize_touching_pin_wires(sch, "R1", pin_positions)
+        assert count == 0
+
+    def test_no_wire_when_rejoins_other_stationary_pin(self):
+        """
+        If the moved pin's new position coincides with another stationary pin,
+        no wire should be synthesized (they touch again).
+        """
+        # R1 at (0, 0), R2 at (0, -7.62), R3 at (10, -7.62)
+        # R1 pin2 was touching R2 pin1 at (0, -3.81).
+        # Moving R1 to (10, 0): pin2 lands at (10, -3.81) which is R3 pin1.
+        sch = _make_sch_data(
+            [
+                _make_symbol("R1", 0, 0),
+                _make_symbol("R2", 0, -7.62),
+                _make_symbol("R3", 10, -7.62),
+            ]
+        )
+        pin_positions = WireDragger.compute_pin_positions(sch, "R1", 10, 0)
+        count = WireDragger.synthesize_touching_pin_wires(sch, "R1", pin_positions)
+        assert count == 0, f"Expected 0 synthesized wires (rejoined), got {count}"
+
+    def test_empty_pin_positions_returns_zero(self):
+        sch = _make_sch_data([_make_symbol("R1", 0, 0)])
+        count = WireDragger.synthesize_touching_pin_wires(sch, "R1", {})
+        assert count == 0
+
+    def test_non_touching_pins_not_affected(self):
+        """
+        When R1 and R2 are NOT touching (different positions), no wire is synthesized.
+        """
+        # R1 at (0, 0), R2 at (100, 100) — far apart
+        sch = self._make_two_resistors(0, 0, 100, 100)
+        pin_positions = WireDragger.compute_pin_positions(sch, "R1", 10, 0)
+        count = WireDragger.synthesize_touching_pin_wires(sch, "R1", pin_positions)
+        assert count == 0
+
+
+# ---------------------------------------------------------------------------
+# TestOldToNewCollision  (unit) — regression for the duplicate-pin-position bug
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestOldToNewCollision:
+    """Verify that coincident pins do not silently overwrite each other in old_to_new."""
+
+    def test_handler_logs_warning_on_collision(self, caplog):
+        """
+        When two pins share the same old position, a warning should be logged
+        and the *first* mapping should be kept (not overwritten by the second).
+        """
+        import logging
+
+        # Build a fake pin_positions dict with a deliberate collision
+        pin_positions = {
+            "1": ((0.0, 3.81), (10.0, 23.81)),
+            "2": ((0.0, 3.81), (10.0, 16.19)),  # same old_xy as pin "1"
+        }
+
+        old_to_new = {}
+        with caplog.at_level(logging.WARNING, logger="kicad_interface"):
+            for _pin, (old_xy, new_xy) in pin_positions.items():
+                if old_xy in old_to_new:
+                    import logging as _logging
+
+                    logger_inner = _logging.getLogger("kicad_interface")
+                    logger_inner.warning(
+                        f"move_schematic_component: pin {_pin!r} shares old position {old_xy} "
+                        f"with another pin; keeping first entry, skipping duplicate"
+                    )
+                    continue
+                old_to_new[old_xy] = new_xy
+
+        # Only one entry should exist, and it should be the first one
+        assert len(old_to_new) == 1
+        assert old_to_new[(0.0, 3.81)] == (10.0, 23.81)
+        # Warning should have been logged
+        assert any("skipping duplicate" in r.message for r in caplog.records)
+
+
+# ---------------------------------------------------------------------------
+# TestTouchingPinIntegration  (integration)
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.integration
+class TestTouchingPinIntegration:
+    """Integration tests for pin-touching connection wire synthesis."""
+
+    def _make_schematic(self, extra_sexp=""):
+        """Copy empty.kicad_sch to a temp file."""
+        tmp = Path(tempfile.mkdtemp()) / "test.kicad_sch"
+        shutil.copy(TEMPLATE_PATH, tmp)
+        if extra_sexp:
+            content = tmp.read_text(encoding="utf-8")
+            idx = content.rfind(")")
+            content = content[:idx] + "\n" + extra_sexp + "\n)"
+            tmp.write_text(content, encoding="utf-8")
+        return tmp
+
+    def _add_resistor(self, path: Path, ref: str, x: float, y: float, rotation: float = 0) -> Path:
+        import uuid as _uuid
+
+        u = str(_uuid.uuid4())
+        sexp = f"""
+  (symbol (lib_id "Device:R") (at {x} {y} {rotation}) (unit 1)
+    (in_bom yes) (on_board yes) (dnp no)
+    (uuid "{u}")
+    (property "Reference" "{ref}" (at {x + 2.032} {y} 90)
+      (effects (font (size 1.27 1.27)))
+    )
+    (property "Value" "10k" (at {x} {y} 90)
+      (effects (font (size 1.27 1.27)))
+    )
+    (property "Footprint" "" (at {x - 1.778} {y} 90)
+      (effects (font (size 1.27 1.27)) hide)
+    )
+    (property "Datasheet" "~" (at {x} {y} 0)
+      (effects (font (size 1.27 1.27)) hide)
+    )
+    (pin "1" (uuid "{_uuid.uuid4()}"))
+    (pin "2" (uuid "{_uuid.uuid4()}"))
+    (instances (project "test" (path "/" (reference "{ref}") (unit 1))))
+  )"""
+        content = path.read_text(encoding="utf-8")
+        idx = content.rfind(")")
+        path.write_text(content[:idx] + "\n" + sexp + "\n)", encoding="utf-8")
+        return path
+
+    def _parse_wires(self, path: Path):
+        content = path.read_text(encoding="utf-8")
+        data = sexpdata.loads(content)
+        wires = []
+        for item in data:
+            if not (isinstance(item, list) and item and item[0] == Symbol("wire")):
+                continue
+            pts = next(
+                (s for s in item[1:] if isinstance(s, list) and s and s[0] == Symbol("pts")),
+                None,
+            )
+            if pts is None:
+                continue
+            xys = [
+                p for p in pts[1:] if isinstance(p, list) and len(p) >= 3 and p[0] == Symbol("xy")
+            ]
+            if len(xys) >= 2:
+                wires.append(
+                    (
+                        (float(xys[0][1]), float(xys[0][2])),
+                        (float(xys[-1][1]), float(xys[-1][2])),
+                    )
+                )
+        return wires
+
+    def test_touching_pin_wire_created_on_move(self):
+        """
+        R1 at (100, 100) and R2 at (100, 92.38) share a touching pin:
+          R1 pin2 = (100, 96.19), R2 pin1 = (100, 96.19).
+        Moving R1 to (110, 100) should synthesize a wire from (100, 96.19) to (110, 96.19).
+        """
+        sch = self._make_schematic()
+        # R1 pin2 world position = 100 + (-3.81) = 96.19
+        # R2 pin1 world position = 92.38 + 3.81 = 96.19
+        self._add_resistor(sch, "R1", 100, 100)
+        self._add_resistor(sch, "R2", 100, 92.38)
+
+        sys.path.insert(0, str(Path(__file__).resolve().parent.parent))
+        from kicad_interface import KiCADInterface
+
+        iface = KiCADInterface()
+        result = iface.handle_command(
+            "move_schematic_component",
+            {
+                "schematicPath": str(sch),
+                "reference": "R1",
+                "position": {"x": 110, "y": 100},
+            },
+        )
+        assert result["success"], result.get("message")
+        assert (
+            result.get("wiresSynthesized", 0) >= 1
+        ), f"Expected at least 1 synthesized wire, got {result}"
+
+        wires = self._parse_wires(sch)
+        # There should be a wire bridging the old and new pin2 positions
+        old_pin2 = (100.0, 96.19)
+        new_pin2 = (110.0, 96.19)
+        bridging = [
+            (s, e)
+            for s, e in wires
+            if (
+                (
+                    abs(s[0] - old_pin2[0]) < 0.05
+                    and abs(s[1] - old_pin2[1]) < 0.05
+                    and abs(e[0] - new_pin2[0]) < 0.05
+                    and abs(e[1] - new_pin2[1]) < 0.05
+                )
+                or (
+                    abs(e[0] - old_pin2[0]) < 0.05
+                    and abs(e[1] - old_pin2[1]) < 0.05
+                    and abs(s[0] - new_pin2[0]) < 0.05
+                    and abs(s[1] - new_pin2[1]) < 0.05
+                )
+            )
+        ]
+        assert (
+            len(bridging) >= 1
+        ), f"Expected a bridging wire from {old_pin2} to {new_pin2}, got wires: {wires}"
+
+    def test_no_wire_synthesized_when_no_touching_pins(self):
+        """
+        Two resistors with no pin overlap should not generate any synthesized wires.
+        """
+        sch = self._make_schematic()
+        self._add_resistor(sch, "R1", 100, 100)
+        self._add_resistor(sch, "R2", 150, 150)  # far away
+
+        sys.path.insert(0, str(Path(__file__).resolve().parent.parent))
+        from kicad_interface import KiCADInterface
+
+        iface = KiCADInterface()
+        result = iface.handle_command(
+            "move_schematic_component",
+            {
+                "schematicPath": str(sch),
+                "reference": "R1",
+                "position": {"x": 110, "y": 100},
+            },
+        )
+        assert result["success"], result.get("message")
+        assert result.get("wiresSynthesized", 0) == 0
+
+    def test_existing_wires_still_dragged_with_touching_pins(self):
+        """
+        When R1 has both an explicit wire AND a touching-pin connection,
+        both should be handled: the wire dragged and the touching-pin bridged.
+        """
+        sch = self._make_schematic()
+        # R1 at (100, 100), R2 at (100, 92.38) — pin2 of R1 touches pin1 of R2
+        self._add_resistor(sch, "R1", 100, 100)
+        self._add_resistor(sch, "R2", 100, 92.38)
+
+        # Also add an explicit wire at pin1 of R1 (100, 103.81) going up
+        import uuid as _uuid
+
+        wire_sexp = f"""
+  (wire (pts (xy 100 103.81) (xy 100 115))
+    (stroke (width 0) (type default))
+    (uuid "{_uuid.uuid4()}")
+  )"""
+        content = sch.read_text(encoding="utf-8")
+        idx = content.rfind(")")
+        sch.write_text(content[:idx] + "\n" + wire_sexp + "\n)", encoding="utf-8")
+
+        sys.path.insert(0, str(Path(__file__).resolve().parent.parent))
+        from kicad_interface import KiCADInterface
+
+        iface = KiCADInterface()
+        result = iface.handle_command(
+            "move_schematic_component",
+            {
+                "schematicPath": str(sch),
+                "reference": "R1",
+                "position": {"x": 110, "y": 100},
+            },
+        )
+        assert result["success"], result.get("message")
+        assert result.get("wiresMoved", 0) >= 1, "Expected at least one wire endpoint dragged"
+        assert result.get("wiresSynthesized", 0) >= 1, "Expected at least one touching-pin wire"