diff --git a/AGENTS.md b/AGENTS.md
new file mode 100644
index 0000000000..f2d904434c
--- /dev/null
+++ b/AGENTS.md
@@ -0,0 +1,34 @@
+# AGENTS.md
+
+## Project Structure
+
+Excalidraw is a **monorepo** with a clear separation between the core library and the application:
+
+- **`packages/excalidraw/`** - Main React component library published to npm as `@excalidraw/excalidraw`
+- **`excalidraw-app/`** - Full-featured web application (excalidraw.com) that uses the library
+- **`packages/`** - Core packages: `@excalidraw/common`, `@excalidraw/element`, `@excalidraw/math`, `@excalidraw/utils`
+- **`examples/`** - Integration examples (NextJS, browser script)
+
+## Development Workflow
+
+1. **Package Development**: Work in `packages/*` for editor features
+2. **App Development**: Work in `excalidraw-app/` for app-specific features
+3. **Testing**: Always run `yarn test:update` before committing
+4. **Type Safety**: Use `yarn test:typecheck` to verify TypeScript
+
+## Development Commands
+
+```bash
+yarn test:typecheck  # TypeScript type checking
+yarn test:update     # Run all tests (with snapshot updates)
+yarn fix             # Auto-fix formatting and linting issues
+```
+
+## Architecture Notes
+
+### Package System
+
+- Uses Yarn workspaces for monorepo management
+- Internal packages use path aliases (see `vitest.config.mts`)
+- Build system uses esbuild for packages, Vite for the app
+- TypeScript throughout with strict configuration
diff --git a/packages/element/src/frame.ts b/packages/element/src/frame.ts
index 3c82099546..cfb4bdd511 100644
--- a/packages/element/src/frame.ts
+++ b/packages/element/src/frame.ts
@@ -872,6 +872,19 @@ export const shouldApplyFrameClip = (
     return true;
   }
 
+  // Elements that belong to a frame should still render through that frame's
+  // clip, even when fully outside the frame bounds (e.g. generated content).
+  if (
+    !appState.selectedElementsAreBeingDragged &&
+    element.frameId === frame.id
+  ) {
+    for (const groupId of element.groupIds) {
+      checkedGroups?.set(groupId, true);
+    }
+
+    return true;
+  }
+
   // if an element is outside the frame, but is part of a group that has some elements
   // "in" the frame, we should clip the element
   if (
diff --git a/packages/element/tests/frame.test.tsx b/packages/element/tests/frame.test.tsx
index 47f2160ac3..2753c4e58f 100644
--- a/packages/element/tests/frame.test.tsx
+++ b/packages/element/tests/frame.test.tsx
@@ -2,6 +2,7 @@ import {
   convertToExcalidrawElements,
   Excalidraw,
 } from "@excalidraw/excalidraw";
+import { arrayToMap } from "@excalidraw/common";
 
 import { API } from "@excalidraw/excalidraw/tests/helpers/api";
 import { Keyboard, Pointer } from "@excalidraw/excalidraw/tests/helpers/ui";
@@ -10,6 +11,8 @@ import {
   render,
 } from "@excalidraw/excalidraw/tests/test-utils";
 
+import { shouldApplyFrameClip } from "../src/frame";
+
 import type { ExcalidrawElement } from "../src/types";
 
 const { h } = window;
@@ -561,3 +564,78 @@ describe("adding elements to frames", () => {
     });
   });
 });
+
+describe("frame clipping", () => {
+  const getAppStateForFrameClip = () =>
+    ({
+      frameRendering: {
+        enabled: true,
+        clip: true,
+      },
+      selectedElementsAreBeingDragged: false,
+      selectedElementIds: {},
+      frameToHighlight: null,
+      editingGroupId: null,
+    } as any);
+
+  it("clips a frame child even when fully outside the frame bounds", () => {
+    const frame = API.createElement({
+      type: "frame",
+      id: "frame",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+    });
+    const outsideChild = API.createElement({
+      type: "rectangle",
+      id: "outside-child",
+      x: 250,
+      y: 250,
+      width: 50,
+      height: 50,
+      frameId: frame.id,
+    });
+
+    const elementsMap = arrayToMap([outsideChild, frame]);
+
+    expect(
+      shouldApplyFrameClip(
+        outsideChild,
+        frame,
+        getAppStateForFrameClip(),
+        elementsMap,
+      ),
+    ).toBe(true);
+  });
+
+  it("does not clip an outside element that does not belong to the frame", () => {
+    const frame = API.createElement({
+      type: "frame",
+      id: "frame",
+      x: 0,
+      y: 0,
+      width: 100,
+      height: 100,
+    });
+    const outsideElement = API.createElement({
+      type: "rectangle",
+      id: "outside",
+      x: 250,
+      y: 250,
+      width: 50,
+      height: 50,
+    });
+
+    const elementsMap = arrayToMap([outsideElement, frame]);
+
+    expect(
+      shouldApplyFrameClip(
+        outsideElement,
+        frame,
+        getAppStateForFrameClip(),
+        elementsMap,
+      ),
+    ).toBe(false);
+  });
+});