diff --git a/spec/LayoutSpec.js b/spec/LayoutSpec.js
index b3422c6a..a3fdd4d0 100755
--- a/spec/LayoutSpec.js
+++ b/spec/LayoutSpec.js
@@ -479,6 +479,17 @@ describe('Layout', function() {
     );
   });
 
+  it('should layout node with padding and a child', function() {
+    testLayout(
+      {style: {padding: 5}, children: [
+        {style: {}}
+      ]},
+      {width: 10, height: 10, top: 0, left: 0, children: [
+        {width: 0, height: 0, top: 5, left: 5}
+      ]}
+    );
+  });
+
   it('should layout randomly', function() {
     function RNG(seed) {
       this.state = seed;
diff --git a/src/Layout.js b/src/Layout.js
index e4254548..0ec5fc89 100755
--- a/src/Layout.js
+++ b/src/Layout.js
@@ -190,16 +190,18 @@ function computeLayout(node) {
     children.forEach(function(child) {
       var alignItem = getAlignItem(node, child);
       var remainingCrossDim = node.layout[dim[crossAxis]] -
-        getDimWithMargin(child, crossAxis);
-      var leadingCrossDim = 0;
+        getDimWithMargin(child, crossAxis) -
+        getPadding(leading[crossAxis], node) -
+        getPadding(trailing[crossAxis], node);
+      var leadingCrossDim = getPadding(leading[crossAxis], node);
       if (alignItem === 'flex-start') {
         // Do nothing
       } else if (alignItem === 'center') {
-        leadingCrossDim = remainingCrossDim / 2;
+        leadingCrossDim += remainingCrossDim / 2;
       } else if (alignItem === 'flex-end') {
-        leadingCrossDim = remainingCrossDim;
+        leadingCrossDim += remainingCrossDim;
       } else if (alignItem === 'stretch') {
-        child.layout[dim[crossAxis]] = node.layout[dim[crossAxis]] -
+        child.layout[dim[crossAxis]] += node.layout[dim[crossAxis]] -
           getMargin(leading[crossAxis], child) -
           getMargin(trailing[crossAxis], child);
       }