diff --git a/demo-site/about.html b/demo-site/about.html
index 3ec8475..4b4601c 100644
--- a/demo-site/about.html
+++ b/demo-site/about.html
@@ -9,7 +9,7 @@
     <!-- Navigation -->
     <nav class="navbar">
         <div class="container">
-            <h1 class="logo insertr" data-content-id="hero-title-c70343" data-content-type="text">Acme Consulting</h1>
+            <h1 class="logo insertr" data-content-id="about-logo-bf9558" data-content-type="text">Acme Consulting</h1>
             <ul class="nav-links">
                 <li><a href="index.html">Home</a></li>
                 <li><a href="about.html">About</a></li>
@@ -22,15 +22,15 @@
     <!-- Hero Section -->
     <section class="hero">
         <div class="container">
-            <h1 class="insertr" data-content-id="hero-title-c70343" data-content-type="text">About Acme Consulting</h1>
-            <p class="lead insertr" data-content-id="footer-text-a44170" data-content-type="markdown">We&#39;re a team of experienced consultants dedicated to helping small businesses thrive in today&#39;s competitive marketplace.</p>
+            <h1 class="insertr" data-content-id="about-h1-b0851a" data-content-type="text">About Acme Consulting</h1>
+            <p class="lead insertr" data-content-id="about-lead-ccc316" data-content-type="markdown">We&#39;re a team of experienced consultants dedicated to helping small businesses thrive in today&#39;s competitive marketplace.</p>
         </div>
     </section>
 
     <!-- Story Section -->
     <section class="services">
         <div class="container">
-            <h2 class="insertr" data-content-id="testimonial-subtitle-648b88" data-content-type="text">Our Story</h2>
+            <h2 class="insertr" data-content-id="about-h2-246854" data-content-type="text">Our Story</h2>
             <div class="insertr-group">
                 <p>Founded in 2020, Acme Consulting emerged from a simple observation: small businesses needed access to the same high-quality strategic advice that large corporations receive, but in a format that was accessible, affordable, and actionable.</p>
                 
@@ -44,8 +44,8 @@
     <!-- Team Section -->
     <section class="cta">
         <div class="container">
-            <h2 class="insertr" data-content-id="subtitle-ba6444" data-content-type="text">Our Team</h2>
-            <p class="insertr" data-content-id="text-8b3502" data-content-type="markdown">We&#39;re a diverse group of strategists, operators, and technology experts united by our passion for helping businesses succeed.</p>
+            <h2 class="insertr" data-content-id="about-h2-2-f16ab1" data-content-type="text">Our Team</h2>
+            <p class="insertr" data-content-id="about-p-0e26bc" data-content-type="markdown">We&#39;re a diverse group of strategists, operators, and technology experts united by our passion for helping businesses succeed.</p>
             
             <div class="services-grid" style="margin-top: 3rem;">
                 <div class="service-card">
@@ -76,19 +76,19 @@
     <!-- Values Section -->
     <section class="testimonial">
         <div class="container">
-            <h2 class="insertr" style="margin-bottom: 2rem;" data-content-id="testimonial-subtitle-dce35b" data-content-type="text">Our Values</h2>
+            <h2 class="insertr" style="margin-bottom: 2rem;" data-content-id="about-h2-3-893efa" data-content-type="text">Our Values</h2>
             <div style="display: grid; grid-template-columns: repeat(auto-fit, minmax(250px, 1fr)); gap: 2rem; text-align: left;">
                 <div>
-                    <h3 class="insertr" data-content-id="testimonial-heading-957cc8" data-content-type="text">Client-First</h3>
-                    <p class="insertr" data-content-id="testimonial-text-f7e46f" data-content-type="markdown">Every recommendation we make is designed with your specific business context and goals in mind.</p>
+                    <h3 class="insertr" data-content-id="about-h3-4-07ce1b" data-content-type="text">Client-First</h3>
+                    <p class="insertr" data-content-id="about-p-2-9f60dd" data-content-type="markdown">Every recommendation we make is designed with your specific business context and goals in mind.</p>
                 </div>
                 <div>
-                    <h3 class="insertr" data-content-id="testimonial-heading-fd4293" data-content-type="text">Practical Solutions</h3>
-                    <p class="insertr" data-content-id="testimonial-text-c12023" data-content-type="markdown">We believe in strategies that you can actually implement with your current resources and capabilities.</p>
+                    <h3 class="insertr" data-content-id="about-h3-5-07ce1b" data-content-type="text">Practical Solutions</h3>
+                    <p class="insertr" data-content-id="about-p-3-9f60dd" data-content-type="markdown">We believe in strategies that you can actually implement with your current resources and capabilities.</p>
                 </div>
                 <div>
-                    <h3 class="insertr" data-content-id="testimonial-heading-957cc8" data-content-type="text">Long-term Partnership</h3>
-                    <p class="insertr" data-content-id="testimonial-text-45dae2" data-content-type="markdown">We&#39;re not just consultants; we&#39;re partners in your business success for the long haul.</p>
+                    <h3 class="insertr" data-content-id="about-h3-6-07ce1b" data-content-type="text">Long-term Partnership</h3>
+                    <p class="insertr" data-content-id="about-p-4-9f60dd" data-content-type="markdown">We&#39;re not just consultants; we&#39;re partners in your business success for the long haul.</p>
                 </div>
             </div>
         </div>
@@ -97,7 +97,7 @@
     <!-- Test Section for Insertr Features -->
     <section class="testimonial">
         <div class="container">
-            <h2 class="insertr" data-content-id="testimonial-subtitle-648b88" data-content-type="text">Feature Tests</h2>
+            <h2 class="insertr" data-content-id="about-h2-4-893efa" data-content-type="text">Feature Tests</h2>
             
             <!-- Test 1: .insertr container expansion (should make each p individually editable) -->
             <div style="margin-bottom: 2rem;">
@@ -124,8 +124,8 @@
     <!-- Footer -->
     <footer class="footer">
         <div class="container">
-            <p class="insertr" data-content-id="footer-text-a2b6a8" data-content-type="markdown">© 2024 Acme Consulting Services. All rights reserved.</p>
-            <p class="insertr" data-content-id="footer-text-a44170" data-content-type="markdown">📧 info@acmeconsulting.com | 📞 (555) 123-4567 | <button class="insertr-gate" style="background: none; border: 1px solid #ccc; padding: 4px 8px; margin-left: 10px; border-radius: 3px; font-size: 11px;">🔧 Edit</button></p>
+            <p class="insertr" data-content-id="about-p-8-c093f3" data-content-type="markdown">© 2024 Acme Consulting Services. All rights reserved.</p>
+            <p class="insertr" data-content-id="about-p-9-c093f3" data-content-type="markdown">📧 info@acmeconsulting.com | 📞 (555) 123-4567 | <button class="insertr-gate" style="background: none; border: 1px solid #ccc; padding: 4px 8px; margin-left: 10px; border-radius: 3px; font-size: 11px;">🔧 Edit</button></p>
         </div>
     </footer>
 
diff --git a/demo-site/index.html b/demo-site/index.html
index 0808b98..5a95114 100644
--- a/demo-site/index.html
+++ b/demo-site/index.html
@@ -9,7 +9,7 @@
     <!-- Navigation -->
     <nav class="navbar">
         <div class="container">
-            <h1 class="logo insertr" data-content-id="navbar-logo-2b10ad" data-content-type="text">Acme Consulting</h1>
+            <h1 class="logo insertr" data-content-id="index-logo-c176ba" data-content-type="text">Acme Consulting</h1>
             <ul class="nav-links">
                 <li><a href="index.html">Home</a></li>
                 <li><a href="about.html">About</a></li>
@@ -22,30 +22,30 @@
     <!-- Hero Section -->
     <section class="hero">
         <div class="container">
-            <h1 class="insertr" data-content-id="hero-title-7cfeea" data-content-type="text">Transform Your Business with Expert Consulting</h1>
-            <p class="lead insertr" data-content-id="footer-text-d73f32" data-content-type="markdown"><strong>We</strong> help small businesses grow through strategic planning, process optimization, and digital transformation. Our team brings 15+ years of experience to drive your success. Superb</p>
-            <a href="contact.html" class="btn-primary insertr" data-content-id="link-d11ae9" data-content-type="link">Get Started Today?</a>
+            <h1 class="insertr" data-content-id="index-h1-1b83cf" data-content-type="text">Transform Your Business with Expert Consulting</h1>
+            <p class="lead insertr" data-content-id="index-lead-c7070a" data-content-type="markdown"><strong>We help small</strong> businesses grow through strategic planning, process optimization, and digital transformation. Our team brings 15+ years of experience to drive your success.</p>
+            <a href="contact.html" class="btn-primary insertr" data-content-id="index-btn-primary-088a84" data-content-type="link">Get Started Today</a>
         </div>
     </section>
 
     <!-- Services Section -->
     <section class="services">
         <div class="container">
-            <h2 class="insertr" data-content-id="subtitle-d0ebd3" data-content-type="text">Our Services</h2>
-            <p class="section-subtitle insertr" data-content-id="services-title-66a36e" data-content-type="markdown">Comprehensive solutions tailored to your business needs</p>
+            <h2 class="insertr" data-content-id="index-h2-7e9e73" data-content-type="text">Our Services</h2>
+            <p class="section-subtitle insertr" data-content-id="index-section-subtitle-bf0683" data-content-type="markdown">Comprehensive solutions tailored to your business needs. We are flexible as willow sticks</p>
             
             <div class="services-grid">
                 <div class="service-card">
-                    <h3 class="insertr" data-content-id="services-heading-0d6ef9" data-content-type="text">Strategic Planning</h3>
-                    <p class="insertr" data-content-id="services-text-3a002f" data-content-type="markdown">Develop clear roadmaps and actionable strategies that align with your business goals and drive sustainable growth.</p>
+                    <h3 class="insertr" data-content-id="index-h3-2c6736" data-content-type="text">Strategic Planning</h3>
+                    <p class="insertr" data-content-id="index-p-a935d2" data-content-type="markdown">Develop clear roadmaps and actionable strategies that align with your business goals and drive sustainable growth.</p>
                 </div>
                 <div class="service-card">
-                    <h3 class="insertr" data-content-id="services-heading-fdebeb" data-content-type="text">Operations Optimization</h3>
-                    <p class="insertr" data-content-id="services-text-31ddbd" data-content-type="markdown">Streamline processes, reduce costs, and improve efficiency through proven methodologies and best practices.</p>
+                    <h3 class="insertr" data-content-id="index-h3-2-2c6736" data-content-type="text">Operations Optimization</h3>
+                    <p class="insertr" data-content-id="index-p-2-a935d2" data-content-type="markdown">Streamline processes, reduce costs, and improve efficiency through proven methodologies and best practices.</p>
                 </div>
                 <div class="service-card">
-                    <h3 class="insertr" data-content-id="services-heading-0d6ef9" data-content-type="text">Digital Transformation</h3>
-                    <p class="insertr" data-content-id="services-text-bd1837" data-content-type="markdown">Modernize your technology stack and digital presence to compete effectively in today&#39;s marketplace.</p>
+                    <h3 class="insertr" data-content-id="index-h3-3-2c6736" data-content-type="text">Digital Transformation</h3>
+                    <p class="insertr" data-content-id="index-p-3-a935d2" data-content-type="markdown">Modernize your technology stack and digital presence to compete effectively in today&#39;s marketplace.</p>
                 </div>
             </div>
         </div>
@@ -55,8 +55,8 @@
     <section class="testimonial">
         <div class="container">
             <blockquote>
-                <p class="insertr" data-content-id="testimonial-text-69de1a" data-content-type="markdown">&#34;Acme Consulting transformed our operations completely. We saw a 40% increase in efficiency within 6 months of implementing their recommendations.&#34;</p>
-                <cite class="insertr" data-content-id="testimonial-content-dfd023" data-content-type="text">Sarah Johnson, CEO of TechStart Inc.</cite>
+                <p class="insertr" data-content-id="index-p-4-0a9466" data-content-type="markdown">&#34;Acme Consulting transformed our operations completely. We saw a 40% increase in efficiency within 6 months of implementing their recommendations.&#34;</p>
+                <cite class="insertr" data-content-id="index-cite-24152c" data-content-type="text">Sarah Johnson, CEO of TechStart Inc.</cite>
             </blockquote>
         </div>
     </section>
@@ -64,17 +64,17 @@
     <!-- Call to Action -->
     <section class="cta">
         <div class="container">
-            <h2 class="insertr" data-content-id="subtitle-d0ebd3" data-content-type="text">Ready to Transform Your Business?</h2>
-            <p class="insertr" data-content-id="text-a588c5" data-content-type="markdown">Contact us today for a free consultation and discover how we can help you achieve your goals.</p>
-            <a href="contact.html" class="btn-primary insertr" data-content-id="link-d11ae9" data-content-type="link">Schedule Consultation</a>
+            <h2 class="insertr" data-content-id="index-h2-2-9b9baa" data-content-type="text">Ready to Transform Your Business?</h2>
+            <p class="insertr" data-content-id="index-p-5-e960fe" data-content-type="markdown">Contact us today for a free consultation and discover how we can help you achieve your goals.</p>
+            <a href="contact.html" class="btn-primary insertr" data-content-id="index-btn-primary-2-a33c64" data-content-type="link">Schedule Consultation</a>
         </div>
     </section>
 
     <!-- Footer -->
     <footer class="footer">
         <div class="container">
-            <p class="insertr" data-content-id="footer-text-a2b6a8-22fbf8" data-content-type="markdown">© 2024 Acme Consulting Services. All rights reserved.</p>
-            <p class="insertr" data-content-id="footer-text-d73f32" data-content-type="markdown"><strong>We</strong> help small businesses grow through strategic planning, process optimization, and digital transformation. Our team brings 15+ years of experience to drive your success. Superb</p>
+            <p class="insertr" data-content-id="index-p-6-9b47e7" data-content-type="markdown">© 2024 Acme Consulting Services. All rights reserved.</p>
+            <p class="insertr" data-content-id="index-p-7-9b47e7" data-content-type="markdown">📧 info@acmeconsulting.com | 📞 (555) 123-4567 | Located in downtown Springfield | <button class="insertr-gate" style="background: none; border: 1px solid #ccc; padding: 4px 8px; margin-left: 10px; border-radius: 3px; font-size: 11px;">🔧 Edit</button></p>
         </div>
     </footer>
 
diff --git a/internal/api/handlers.go b/internal/api/handlers.go
index 426b447..851e4ba 100644
--- a/internal/api/handlers.go
+++ b/internal/api/handlers.go
@@ -713,6 +713,7 @@ func (h *ContentHandler) generateContentID(ctx *ElementContext) string {
 	}
 
 	// Use existing parser ID generator
+	// For API-generated IDs, use a placeholder filePath since we don't have file context
 	idGenerator := parser.NewIDGenerator()
-	return idGenerator.Generate(virtualNode)
+	return idGenerator.Generate(virtualNode, "api-generated")
 }
diff --git a/internal/parser/id_generator.go b/internal/parser/id_generator.go
index b16b136..09964d1 100644
--- a/internal/parser/id_generator.go
+++ b/internal/parser/id_generator.go
@@ -1,169 +1,133 @@
 package parser
 
 import (
-	"crypto/sha1"
+	"crypto/sha256"
+	"encoding/hex"
 	"fmt"
-	"regexp"
+	"path/filepath"
 	"strings"
 
 	"golang.org/x/net/html"
 )
 
-// IDGenerator generates unique content IDs for elements
+// IDGenerator generates unique content IDs for elements using lightweight hierarchical approach
 type IDGenerator struct {
-	usedIDs map[string]bool
+	usedIDs       map[string]bool
+	elementCounts map[string]int // Track counts per file+type for indexing
 }
 
 // NewIDGenerator creates a new ID generator
 func NewIDGenerator() *IDGenerator {
 	return &IDGenerator{
-		usedIDs: make(map[string]bool),
+		usedIDs:       make(map[string]bool),
+		elementCounts: make(map[string]int),
 	}
 }
 
-// Generate creates a content ID for an HTML element
-func (g *IDGenerator) Generate(node *html.Node) string {
-	context := g.getSemanticContext(node)
-	purpose := g.getPurpose(node)
-	contentHash := g.getContentHash(node)
+// Generate creates a content ID for an HTML element using lightweight hierarchical approach
+func (g *IDGenerator) Generate(node *html.Node, filePath string) string {
+	// 1. File context (minimal)
+	fileName := g.getFileName(filePath)
 
-	baseID := g.createBaseID(context, purpose, contentHash)
-	finalID := g.ensureUnique(baseID)
+	// 2. Element identity (lightweight)
+	tag := strings.ToLower(node.Data)
+	primaryClass := g.getPrimaryClass(node)
+
+	// 3. Position context (simple)
+	elementKey := g.getElementKey(fileName, tag, primaryClass)
+	index := g.getElementIndex(elementKey)
+
+	// 4. Build readable prefix
+	prefix := g.buildPrefix(fileName, tag, primaryClass, index)
+
+	// 5. Add collision-resistant suffix
+	signature := g.createSignature(node, filePath)
+	hash := sha256.Sum256([]byte(signature))
+	suffix := hex.EncodeToString(hash[:3])
+
+	finalID := fmt.Sprintf("%s-%s", prefix, suffix)
+
+	// Ensure uniqueness (should be guaranteed by hash, but safety check)
+	g.usedIDs[finalID] = true
 
 	return finalID
 }
 
-// getSemanticContext determines the semantic context from parent elements
-func (g *IDGenerator) getSemanticContext(node *html.Node) string {
-	// Walk up the tree to find semantic containers
-	parent := node.Parent
-	for parent != nil && parent.Type == html.ElementNode {
-		classes := GetClasses(parent)
-
-		// Check for common semantic section classes
-		for _, class := range []string{"hero", "services", "nav", "navbar", "footer", "about", "contact", "testimonial"} {
-			if ContainsClass(classes, class) {
-				return class
-			}
-		}
-
-		// Check for semantic HTML elements
-		switch parent.Data {
-		case "nav":
-			return "nav"
-		case "header":
-			return "header"
-		case "footer":
-			return "footer"
-		case "main":
-			return "main"
-		case "aside":
-			return "aside"
-		}
-
-		parent = parent.Parent
-	}
-
-	return "content"
+// getFileName extracts filename without extension for ID prefix
+func (g *IDGenerator) getFileName(filePath string) string {
+	base := filepath.Base(filePath)
+	return strings.TrimSuffix(base, filepath.Ext(base))
 }
 
-// getPurpose determines the purpose/role of the element
-func (g *IDGenerator) getPurpose(node *html.Node) string {
-	tag := strings.ToLower(node.Data)
+// getPrimaryClass returns the first meaningful (non-insertr) CSS class
+func (g *IDGenerator) getPrimaryClass(node *html.Node) string {
 	classes := GetClasses(node)
-
-	// Check for specific CSS classes that indicate purpose
 	for _, class := range classes {
-		switch {
-		case strings.Contains(class, "title"):
-			return "title"
-		case strings.Contains(class, "headline"):
-			return "headline"
-		case strings.Contains(class, "description"):
-			return "description"
-		case strings.Contains(class, "subtitle"):
-			return "subtitle"
-		case strings.Contains(class, "cta"):
-			return "cta"
-		case strings.Contains(class, "button"):
-			return "button"
-		case strings.Contains(class, "logo"):
-			return "logo"
-		case strings.Contains(class, "lead"):
-			return "lead"
+		if class != "insertr" && class != "" {
+			return class
 		}
 	}
-
-	// Infer purpose from HTML tag
-	switch tag {
-	case "h1":
-		return "title"
-	case "h2":
-		return "subtitle"
-	case "h3", "h4", "h5", "h6":
-		return "heading"
-	case "p":
-		return "text"
-	case "a":
-		return "link"
-	case "button":
-		return "button"
-	default:
-		return "content"
-	}
+	return ""
 }
 
-// getContentHash creates a short hash of the content for ID generation
-func (g *IDGenerator) getContentHash(node *html.Node) string {
-	text := extractTextContent(node)
-
-	// Create hash of the text content
-	hash := fmt.Sprintf("%x", sha1.Sum([]byte(text)))
-
-	// Return first 6 characters for brevity
-	return hash[:6]
+// getElementKey creates a key for tracking element counts
+func (g *IDGenerator) getElementKey(fileName, tag, primaryClass string) string {
+	if primaryClass != "" {
+		return fmt.Sprintf("%s-%s", fileName, primaryClass)
+	}
+	return fmt.Sprintf("%s-%s", fileName, tag)
 }
 
-// createBaseID creates the base ID from components
-func (g *IDGenerator) createBaseID(context, purpose, contentHash string) string {
-	parts := []string{}
-
-	// Add context if meaningful
-	if context != "content" {
-		parts = append(parts, context)
-	}
-
-	// Add purpose
-	parts = append(parts, purpose)
-
-	// Always add content hash for uniqueness
-	parts = append(parts, contentHash)
-
-	baseID := strings.Join(parts, "-")
-
-	// Clean up the ID
-	baseID = regexp.MustCompile(`-+`).ReplaceAllString(baseID, "-")
-	baseID = strings.Trim(baseID, "-")
-
-	// Ensure it's not empty
-	if baseID == "" {
-		baseID = fmt.Sprintf("content-%s", contentHash)
-	}
-
-	return baseID
+// getElementIndex returns the position index for this element type in the file
+func (g *IDGenerator) getElementIndex(elementKey string) int {
+	g.elementCounts[elementKey]++
+	return g.elementCounts[elementKey]
 }
 
-// ensureUnique makes sure the ID is unique by adding a suffix if needed
-func (g *IDGenerator) ensureUnique(baseID string) string {
-	if !g.usedIDs[baseID] {
-		g.usedIDs[baseID] = true
-		return baseID
+// buildPrefix creates human-readable prefix for the ID
+func (g *IDGenerator) buildPrefix(fileName, tag, primaryClass string, index int) string {
+	var parts []string
+	parts = append(parts, fileName)
+
+	if primaryClass != "" {
+		parts = append(parts, primaryClass)
+	} else {
+		parts = append(parts, tag)
 	}
 
-	// If base ID is taken, add a hash suffix
-	hash := fmt.Sprintf("%x", sha1.Sum([]byte(baseID)))[:6]
-	uniqueID := fmt.Sprintf("%s-%s", baseID, hash)
+	// Only add index if it's not the first element of this type
+	if index > 1 {
+		parts = append(parts, fmt.Sprintf("%d", index))
+	}
 
-	g.usedIDs[uniqueID] = true
-	return uniqueID
+	return strings.Join(parts, "-")
+}
+
+// createSignature creates a unique signature for collision resistance
+func (g *IDGenerator) createSignature(node *html.Node, filePath string) string {
+	// Minimal signature for uniqueness
+	tag := node.Data
+	classes := strings.Join(GetClasses(node), " ")
+	domPath := g.getSimpleDOMPath(node)
+
+	return fmt.Sprintf("%s|%s|%s|%s", filePath, domPath, tag, classes)
+}
+
+// getSimpleDOMPath creates a simple DOM path for uniqueness
+func (g *IDGenerator) getSimpleDOMPath(node *html.Node) string {
+	var pathParts []string
+	current := node
+	depth := 0
+
+	for current != nil && current.Type == html.ElementNode && depth < 5 {
+		part := current.Data
+		if classes := GetClasses(current); len(classes) > 0 && classes[0] != "insertr" {
+			part += "." + classes[0]
+		}
+		pathParts = append([]string{part}, pathParts...)
+		current = current.Parent
+		depth++
+	}
+
+	return strings.Join(pathParts, ">")
 }
diff --git a/internal/parser/parser.go b/internal/parser/parser.go
index 2736d14..eb706a1 100644
--- a/internal/parser/parser.go
+++ b/internal/parser/parser.go
@@ -132,7 +132,7 @@ func (p *Parser) createElement(node *html.Node, filePath string, classes []strin
 	// Resolve content ID (existing or generated)
 	contentID, hasExistingID := p.resolveContentID(node)
 	if !hasExistingID {
-		contentID = p.idGenerator.Generate(node)
+		contentID = p.idGenerator.Generate(node, filePath)
 	}
 
 	// Detect content type