diff --git a/spec/LayoutSpec.js b/spec/LayoutSpec.js
index dc01bb65..a7a1d900 100755
--- a/spec/LayoutSpec.js
+++ b/spec/LayoutSpec.js
@@ -512,7 +512,6 @@ describe('Layout', function() {
     );
   });
 
-
   it('should layout node with inner & outer padding and stretch', function() {
     testLayout(
       {style: {padding: 50}, children: [
@@ -524,6 +523,22 @@ describe('Layout', function() {
     );
   });
 
+  it('should layout node with stretch and child with margin', function() {
+    testLayout(
+      {style: {}, children: [
+        {style: {alignSelf: 'stretch'}, children: [
+          {style: {margin: 16}}
+        ]}
+      ]},
+
+      {width: 32, height: 32, top: 0, left: 0, children: [
+        {width: 32, height: 32, top: 0, left: 0, children: [
+          {width: 0, height: 0, top: 16, left: 16}
+        ]}
+      ]}
+    );
+  });
+
   it('should layout randomly', function() {
     function RNG(seed) {
       this.state = seed;
diff --git a/src/Layout.js b/src/Layout.js
index 70268f5e..7e73b60b 100755
--- a/src/Layout.js
+++ b/src/Layout.js
@@ -202,13 +202,11 @@ function computeLayout(node) {
       } else if (alignItem === 'flex-end') {
         leadingCrossDim += remainingCrossDim;
       } else if (alignItem === 'stretch') {
-        child.layout[dim[crossAxis]] += node.layout[dim[crossAxis]] -
+        child.layout[dim[crossAxis]] = node.layout[dim[crossAxis]] -
           getPadding(node, leading[crossAxis]) -
           getPadding(node, trailing[crossAxis]) -
           getMargin(child, leading[crossAxis]) -
-          getMargin(child, trailing[crossAxis]) -
-          getPadding(child, leading[crossAxis]) -
-          getPadding(child, trailing[crossAxis]);
+          getMargin(child, trailing[crossAxis]);
       }
       child.layout[pos[crossAxis]] += leadingCrossDim;
     });