diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/Layer.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/Layer.java
index 8192c8f00..29d0dfc34 100644
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/Layer.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/Layer.java
@@ -90,6 +90,7 @@ public class Layer {
     private int _selectionEndY;
     
     private boolean _forDeletion;
+    private boolean _hasFixedAncester;
     
     /**
      * @see {@link #getCurrentTransformMatrix()}
@@ -117,6 +118,7 @@ public Layer(Layer parent, Box master, CssContext c) {
         master.setLayer(this);
         master.setContainingLayer(this);
         _hasLocalTransform = !master.getStyle().isIdent(CSSName.TRANSFORM, IdentValue.NONE);
+        _hasFixedAncester = (parent != null && parent._hasFixedAncester) || master.getStyle().isFixed();
     }
     
     /** 
@@ -159,6 +161,10 @@ public boolean isForDeletion() {
         return this._forDeletion;
     }
     
+    public boolean hasFixedAncester() {
+        return _hasFixedAncester;
+    }
+    
     public Layer getParent() {
         return _parent;
     }
diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java
index 4005bc5bc..34e5296c3 100644
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java
@@ -108,8 +108,12 @@ protected void collect(RenderingContext c, Layer layer, DisplayListContainer dlP
 		        }
 		    }
 			return;
+		} else if (layer.hasFixedAncester()) {
+		    // Fixed child layers are handled when the fixed layer is painted by
+		    // the SimplePainter.
+		    return;
 		}
-		
+
 		List<PageInfo> layerPages = PagedBoxCollector.findLayerPages(c, layer, _pages);
 		int layerPageStart = findStartPage(c, layer);
 		int layerPageEnd = findEndPage(c, layer);
diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/TransformCreator.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/TransformCreator.java
index 843e5b110..1c18eb771 100644
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/TransformCreator.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/TransformCreator.java
@@ -95,8 +95,8 @@ public static AffineTransform createDocumentCoordinatesTransform(Box master, Css
 		return ctm;
 	}
 	
-	private static float getPageTranslateX(float absTranslateX, int shadowPageNumber, PageBox page, CssContext c) {
-	    if (shadowPageNumber == -1) {
+	private static float getPageTranslateX(float absTranslateX, int shadowPageNumber, PageBox page, CssContext c, Box box) {
+	    if (shadowPageNumber == -1 || box.getContainingLayer().hasFixedAncester()) {
 	        return absTranslateX + page.getMarginBorderPadding(c, CalculatedStyle.LEFT);    
 	    }
 	    
@@ -132,12 +132,12 @@ private static void createTransform(CssContext c, Box box, PageBox page, AffineT
 		
 			if (transformYOrigin == TransformYOrigin.PAGE_BOTTOM) {
 				// The transform point is the lower left of the page (PDF coordinate system).
-				pageTranslateX = getPageTranslateX(absTranslateX, shadowPageNumber, page, c);
+				pageTranslateX = getPageTranslateX(absTranslateX, shadowPageNumber, page, c, box);
 				float topDownPageTranslateY = (absTranslateY + page.getMarginBorderPadding(c, CalculatedStyle.TOP)) - page.getPaintingTop();
 				pageTranslateY = (page.getHeight(c) - topDownPageTranslateY);
 			} else { // PAGE_TOP
 				// The transform point is the upper left of the page.
-				pageTranslateX = getPageTranslateX(absTranslateX, shadowPageNumber, page, c);
+				pageTranslateX = getPageTranslateX(absTranslateX, shadowPageNumber, page, c, box);
 				pageTranslateY = (absTranslateY - page.getPaintingTop()) + page.getMarginBorderPadding(c, CalculatedStyle.TOP); 
 			}
 		
diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/simplepainter/SimplePainter.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/simplepainter/SimplePainter.java
index d1d4cf3cd..a5f8f8459 100644
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/simplepainter/SimplePainter.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/simplepainter/SimplePainter.java
@@ -39,9 +39,12 @@ public void paintLayer(RenderingContext c, Layer layer) {
         if (parentClip != null) {
             c.getOutputDevice().pushClip(parentClip);
         }
-        
+
         if (layer.hasLocalTransform()) {
-            AffineTransform transform = TransformCreator.createPageMarginCoordinatesTransform(c, master, c.getPage(), xTranslate, yTranslate);
+            AffineTransform transform = c.isInPageMargins() ? 
+                    TransformCreator.createPageMarginCoordinatesTransform(c, master, c.getPage(), xTranslate, yTranslate) :
+                    TransformCreator.createPageCoordinatesTranform(c, master, c.getPage(), c.getShadowPageNumber());
+                    
             c.getOutputDevice().pushTransformLayer(transform);
         }
         
@@ -56,7 +59,7 @@ public void paintLayer(RenderingContext c, Layer layer) {
                 paintLayerBackgroundAndBorder(c, master);
             }
 
-            if (layer.isRootLayer() || layer.isStackingContext()) {
+            if (layer.isRootLayer() || layer.isStackingContext() || master.getStyle().isFixed()) {
                 paintLayers(c, layer.getSortedLayers(Layer.NEGATIVE));
             }
             
@@ -69,7 +72,7 @@ public void paintLayer(RenderingContext c, Layer layer) {
             paintInlineContent(c, boxCollector.inlines());
             paintReplacedElements(c, boxCollector.replaceds());
             
-            if (layer.isRootLayer() || layer.isStackingContext()) {
+            if (layer.isRootLayer() || layer.isStackingContext() || master.getStyle().isFixed()) {
                 paintLayers(c, layer.collectLayers(Layer.AUTO));
                 // TODO z-index: 0 layers should be painted atomically
                 paintLayers(c, layer.getSortedLayers(Layer.ZERO));
@@ -213,6 +216,10 @@ private void paintLayers(RenderingContext c, List<Layer> layers) {
     }
     
     public void paintAsLayer(RenderingContext c, BlockBox startingPoint) {
+        if (startingPoint.getStyle().requiresLayer()) {
+            return;
+        }
+        
         SimpleBoxCollector collector = new SimpleBoxCollector();
         collector.collect(c, startingPoint.getContainingLayer(), startingPoint);
 
diff --git a/openhtmltopdf-examples/src/main/resources/visualtest/expected/text/fixed-nested-transform.pdf b/openhtmltopdf-examples/src/main/resources/visualtest/expected/text/fixed-nested-transform.pdf
new file mode 100644
index 000000000..671f76ddb
Binary files /dev/null and b/openhtmltopdf-examples/src/main/resources/visualtest/expected/text/fixed-nested-transform.pdf differ
diff --git a/openhtmltopdf-examples/src/test/java/com/openhtmltopdf/visualregressiontests/TextVisualRegressionTest.java b/openhtmltopdf-examples/src/test/java/com/openhtmltopdf/visualregressiontests/TextVisualRegressionTest.java
index d0162c67f..4ed766c49 100644
--- a/openhtmltopdf-examples/src/test/java/com/openhtmltopdf/visualregressiontests/TextVisualRegressionTest.java
+++ b/openhtmltopdf-examples/src/test/java/com/openhtmltopdf/visualregressiontests/TextVisualRegressionTest.java
@@ -452,8 +452,6 @@ public void testFixedNestedInlineBlock() throws IOException {
      * Tests that a nested transform in a fixed element renders correctly.
      */
     @Test
-    @Ignore // Failing due to using the wrong transform offsets.
-            // Also boxes being painted twice.
     public void testFixedNestedTransform() throws IOException {
         assertTrue(run("fixed-nested-transform"));
     }