diff --git a/.github/workflows/smoke-tests.yml b/.github/workflows/smoke-tests.yml
index 8e13e477f..628749b90 100644
--- a/.github/workflows/smoke-tests.yml
+++ b/.github/workflows/smoke-tests.yml
@@ -37,6 +37,7 @@ jobs:
           - "17*.robot"
           - "18*.robot"
           - "19*.robot"
+          - "20*.robot"
     # allow podman job to fail, since it started to fail on github actions
     continue-on-error: ${{ matrix.runtime == 'podman' }}
     steps:
diff --git a/clab/graph.go b/clab/graph.go
index 97f7ca785..837aa4a18 100644
--- a/clab/graph.go
+++ b/clab/graph.go
@@ -8,13 +8,17 @@ import (
 	"embed"
 	"fmt"
 	"html/template"
+	"io"
 	"io/fs"
 	"net/http"
 	"os"
 	"os/exec"
+	"os/signal"
 	"strings"
+	"syscall"
 
 	"github.com/awalterschulze/gographviz"
+	"github.com/creack/pty"
 	log "github.com/sirupsen/logrus"
 	e "github.com/srl-labs/containerlab/errors"
 	"github.com/srl-labs/containerlab/internal/mermaid"
@@ -23,6 +27,7 @@ import (
 	"github.com/srl-labs/containerlab/runtime"
 	"github.com/srl-labs/containerlab/types"
 	"github.com/srl-labs/containerlab/utils"
+	"golang.org/x/term"
 )
 
 type GraphTopo struct {
@@ -298,10 +303,34 @@ func (c *CLab) ServeTopoGraph(tmpl, staticDir, srv string, topoD TopoData) error
 func (c *CLab) GenerateDrawioDiagram(version string, additionalFlags []string) error {
 	topoFile := c.TopoPaths.TopologyFilenameBase()
 
+	imageName := fmt.Sprintf("ghcr.io/srl-labs/clab-io-draw:%s", version)
+
+	// If version is "latest", check for newer image and pull if necessary
+	if version == "latest" {
+		log.Info("Checking for updates to the latest Docker image...")
+		pullCmd := exec.Command("docker", "pull", imageName)
+		pullOut, pullErr := pullCmd.CombinedOutput()
+		pullOutput := string(pullOut)
+		if pullErr != nil {
+			log.Errorf("Failed to pull the latest image: %v", pullErr)
+			log.Errorf("Pull command output: %s", pullOutput)
+			return fmt.Errorf("failed to pull the latest image: %w\nOutput: %s", pullErr, pullOutput)
+		}
+
+		// Check if the image was updated or is up-to-date
+		if strings.Contains(pullOutput, "Downloaded newer image") {
+			log.Infof("Docker image updated to the latest version.")
+		} else if strings.Contains(pullOutput, "Image is up to date") {
+			log.Infof("Docker image is already the latest version.")
+		} else {
+			log.Warnf("Unexpected output from docker pull command: %s", pullOutput)
+		}
+	}
+
 	cmdArgs := []string{
-		"docker", "run",
+		"docker", "run", "-it",
 		"-v", fmt.Sprintf("%s:/data", c.TopoPaths.TopologyFileDir()),
-		fmt.Sprintf("ghcr.io/srl-labs/clab-io-draw:%s", version),
+		imageName,
 		"-i", topoFile,
 	}
 
@@ -313,16 +342,57 @@ func (c *CLab) GenerateDrawioDiagram(version string, additionalFlags []string) e
 		cmdArgs = append(cmdArgs, parts...)
 	}
 
+	// Create the command
 	cmd := exec.Command("sudo", cmdArgs...)
 
-	out, err := cmd.CombinedOutput()
+	// Start the command with a pseudo-terminal (PTY)
+	ptmx, err := pty.Start(cmd)
+	if err != nil {
+		log.Errorf("Failed to start command with PTY: %v", err)
+		return fmt.Errorf("failed to start command with PTY: %w", err)
+	}
+	defer func() { _ = ptmx.Close() }() // Best effort to close the PTY
+
+	// Check if os.Stdin is a terminal
+	if term.IsTerminal(int(os.Stdin.Fd())) {
+		// Handle PTY size changes
+		ch := make(chan os.Signal, 1)
+		signal.Notify(ch, syscall.SIGWINCH)
+		go func() {
+			for range ch {
+				if err := pty.InheritSize(os.Stdin, ptmx); err != nil {
+					log.Errorf("Error resizing PTY: %v", err)
+				}
+			}
+		}()
+		ch <- syscall.SIGWINCH // Initial resize
+
+		// Set the terminal to raw mode
+		oldState, err := term.MakeRaw(int(os.Stdin.Fd()))
+		if err != nil {
+			log.Errorf("Failed to set terminal to raw mode: %v", err)
+			return fmt.Errorf("failed to set terminal to raw mode: %w", err)
+		}
+		defer func() {
+			_ = term.Restore(int(os.Stdin.Fd()), oldState) // Best effort to restore
+		}()
+
+		// Copy stdin to the PTY and the PTY to stdout
+		go func() { _, _ = io.Copy(ptmx, os.Stdin) }()
+	}
+
+	// Always copy the PTY output to our program's stdout
+	// This ensures we capture the output regardless of TTY status
+	_, _ = io.Copy(os.Stdout, ptmx)
+
+	// Wait for the command to finish
+	err = cmd.Wait()
 	if err != nil {
 		log.Errorf("Command execution failed: %v", err)
-		log.Errorf("Command output: %s", string(out))
-		return fmt.Errorf("failed to generate diagram: %w\nOutput: %s", err, string(out))
+		return fmt.Errorf("failed to generate diagram: %w", err)
 	}
 
-	log.Infof("Diagram created successfully. Output: %s", string(out))
+	log.Infof("Diagram created successfully.")
 
 	return nil
 }
diff --git a/go.mod b/go.mod
index a36e2b0e9..5e9ab5e20 100644
--- a/go.mod
+++ b/go.mod
@@ -180,7 +180,7 @@ require (
 	github.com/containers/storage v1.55.1 // indirect
 	github.com/coreos/go-iptables v0.7.0 // indirect
 	github.com/coreos/go-systemd/v22 v22.5.1-0.20231103132048-7d375ecc2b09 // indirect
-	github.com/creack/pty v1.1.21 // indirect
+	github.com/creack/pty v1.1.24 // indirect
 	github.com/cyphar/filepath-securejoin v0.3.1 // indirect
 	github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc // indirect
 	github.com/disiqueira/gotree/v3 v3.0.2 // indirect
diff --git a/go.sum b/go.sum
index 69b980c20..f44087678 100644
--- a/go.sum
+++ b/go.sum
@@ -280,6 +280,8 @@ github.com/creack/pty v1.1.7/go.mod h1:lj5s0c3V2DBrqTV7llrYr5NG6My20zk30Fl46Y7Do
 github.com/creack/pty v1.1.9/go.mod h1:oKZEueFk5CKHvIhNR5MUki03XCEU+Q6VDXinZuGJ33E=
 github.com/creack/pty v1.1.21 h1:1/QdRyBaHHJP61QkWMXlOIBfsgdDeeKfK8SYVUWJKf0=
 github.com/creack/pty v1.1.21/go.mod h1:MOBLtS5ELjhRRrroQr9kyvTxUAFNvYEK993ew/Vr4O4=
+github.com/creack/pty v1.1.24 h1:bJrF4RRfyJnbTJqzRLHzcGaZK1NeM5kTC9jGgovnR1s=
+github.com/creack/pty v1.1.24/go.mod h1:08sCNb52WyoAwi2QDyzUCTgcvVFhUzewun7wtTfvcwE=
 github.com/cyberphone/json-canonicalization v0.0.0-20231217050601-ba74d44ecf5f h1:eHnXnuK47UlSTOQexbzxAZfekVz6i+LKRdj1CU5DPaM=
 github.com/cyberphone/json-canonicalization v0.0.0-20231217050601-ba74d44ecf5f/go.mod h1:uzvlm1mxhHkdfqitSA92i7Se+S9ksOn3a3qmv/kyOCw=
 github.com/cyphar/filepath-securejoin v0.2.2/go.mod h1:FpkQEhXnPnOthhzymB7CGsFk2G9VLXONKD9G7QGMM+4=
diff --git a/tests/01-smoke/20-graph-generation.robot b/tests/01-smoke/20-graph-generation.robot
new file mode 100644
index 000000000..67c744bdc
--- /dev/null
+++ b/tests/01-smoke/20-graph-generation.robot
@@ -0,0 +1,45 @@
+*** Settings ***
+Documentation       This test ensures that the `clab graph` command generates a diagram successfully,
+...                 and that the code handling the Docker image updates works as expected.
+
+Library             OperatingSystem
+Library             Process
+Resource            ../common.robot
+
+Suite Setup         Setup
+Suite Teardown      Teardown
+
+*** Variables ***
+${lab-file}         03-linux-nodes-to-bridge-and-host.clab.yml
+${lab-name}         graph-test
+${runtime}          docker
+${diagram-file}     03-linux-nodes-to-bridge-and-host.clab.drawio
+
+*** Test Cases ***
+Generate Diagram for ${lab-name} Lab
+    [Documentation]    This test runs `clab graph` to generate a diagram and verifies success.
+
+    # Run the 'clab graph' command to generate the diagram
+    ${output}=    Run Process    sudo    -E    ${CLAB_BIN}    graph    -t    ${CURDIR}/${lab-file}    --drawio    --drawio-args\=--theme nokia_modern_dark
+    ...    shell=True    stdout=PIPE    stderr=PIPE
+
+    Log    ${output.stdout}
+    Log    ${output.stderr}
+
+    # Ensure the command completed successfully
+    Should Be Equal As Integers    ${output.rc}    0
+
+    # Check for expected output messages
+    Should Contain    ${output.stdout}    Diagram created successfully.
+
+    # Check that the diagram file was created
+    File Should Exist    ${CURDIR}/${diagram-file}
+
+*** Keywords ***
+Setup
+    # Skip this test suite for podman for now
+    Skip If    '${runtime}' == 'podman'
+
+Teardown
+    # Clean up by destroying the lab and removing the diagram file
+    Remove File    ${CURDIR}/${diagram-file}
\ No newline at end of file