diff --git a/spec/LayoutSpec.js b/spec/LayoutSpec.js
index a3fdd4d0..dc99bc17 100755
--- a/spec/LayoutSpec.js
+++ b/spec/LayoutSpec.js
@@ -490,6 +490,17 @@ describe('Layout', function() {
     );
   });
 
+  it('should layout node with padding and a child with margin', function() {
+    testLayout(
+      {style: {padding: 5}, children: [
+        {style: {margin: 5}}
+      ]},
+      {width: 20, height: 20, top: 0, left: 0, children: [
+        {width: 0, height: 0, top: 10, left: 10}
+      ]}
+    );
+  });
+
   it('should layout randomly', function() {
     function RNG(seed) {
       this.state = seed;
diff --git a/src/Layout.js b/src/Layout.js
index 6636037c..5eb3025a 100755
--- a/src/Layout.js
+++ b/src/Layout.js
@@ -164,7 +164,7 @@ function computeLayout(node) {
       }
     }
 
-    var crossDim = getPadding(node, leading[crossAxis]);
+    var crossDim = 0;
     var mainPos = getPadding(node, leading[mainAxis]) + leadingMainDim;
     children.forEach(function(child) {
       child.layout[pos[mainAxis]] += mainPos;
@@ -178,7 +178,8 @@ function computeLayout(node) {
       }
     });
     mainPos += getPadding(node, trailing[mainAxis]);
-    crossDim += getPadding(node, trailing[crossAxis]);
+    crossDim += getPadding(node, leading[crossAxis]) +
+      getPadding(node, trailing[crossAxis]);
 
     if (node.layout[dim[mainAxis]] === undefined && !mainDimInStyle) {
       node.layout[dim[mainAxis]] = Math.max(mainPos, 0);