diff --git a/modules/Element.lua b/modules/Element.lua
index c323b9d..0e3577e 100644
--- a/modules/Element.lua
+++ b/modules/Element.lua
@@ -731,7 +731,6 @@ function Element.new(props)
   -- Check if we should use 9-patch content padding for auto-sizing
   local use9PatchPadding = false
   local ninePatchContentPadding = nil
-  local tempPadding = nil
   if self._themeManager:hasThemeComponent() then
     local component = self._themeManager:getComponent()
     if component and component._ninePatchData and component._ninePatchData.contentPadding then
@@ -749,22 +748,31 @@ function Element.new(props)
       then
         use9PatchPadding = true
         ninePatchContentPadding = component._ninePatchData.contentPadding
-        local scaledPadding = self._themeManager:getScaledContentPadding(tempWidth, tempHeight)
-        if scaledPadding then
-          tempPadding = scaledPadding
-        else
-          tempPadding = {
-            left = ninePatchContentPadding.left,
-            top = ninePatchContentPadding.top,
-            right = ninePatchContentPadding.right,
-            bottom = ninePatchContentPadding.bottom,
-          }
-        end
       end
-      tempPadding = Units.resolveSpacing(props.padding, self.width, self.height)
     end
   end
 
+  -- First, resolve padding using temporary dimensions
+  -- For auto-sized elements, this is content width; for explicit sizing, this is border-box width
+  local tempPadding
+  if use9PatchPadding then
+    -- Get scaled 9-patch content padding from ThemeManager
+    local scaledPadding = self._themeManager:getScaledContentPadding(tempWidth, tempHeight)
+    if scaledPadding then
+      tempPadding = scaledPadding
+    else
+      -- Fallback if scaling fails
+      tempPadding = {
+        left = ninePatchContentPadding.left,
+        top = ninePatchContentPadding.top,
+        right = ninePatchContentPadding.right,
+        bottom = ninePatchContentPadding.bottom,
+      }
+    end
+  else
+    tempPadding = Units.resolveSpacing(props.padding, self.width, self.height)
+  end
+
   -- Margin percentages are relative to parent's dimensions (CSS spec)
   local parentWidth = self.parent and self.parent.width or viewportWidth
   local parentHeight = self.parent and self.parent.height or viewportHeight
diff --git a/modules/LayoutEngine.lua b/modules/LayoutEngine.lua
index b98f234..f40a91d 100644
--- a/modules/LayoutEngine.lua
+++ b/modules/LayoutEngine.lua
@@ -485,7 +485,7 @@ function LayoutEngine:layoutChildren()
         -- Vertical layout: main axis is Y, cross axis is X
         -- Position child at border box (x, y represents top-left including padding)
         -- Add reservedMainStart and top margin to account for absolutely positioned siblings and margins
-        child.y = element.y + element.padding.top + reservedMainStart + currentMainPos + child.margin.top
+        child.y = self.element.y + self.element.padding.top + reservedMainStart + currentMainPos + child.margin.top
 
         -- BORDER-BOX MODEL: Use border-box dimensions for alignment calculations
         local childBorderBoxWidth = child:getBorderBoxWidth()