diff --git a/__tests__/Resizable.test.js b/__tests__/Resizable.test.js
index 7b12e5ca..1dd52528 100644
--- a/__tests__/Resizable.test.js
+++ b/__tests__/Resizable.test.js
@@ -63,4 +63,111 @@ describe('render Resizable', () => {
       expect(element.find('.custom-component-se')).toHaveLength(1);
     });
   });
+
+  describe('onResize callback with modified position', () => {
+    const customProps = {
+      ...props,
+      resizeHandles: ['nw', 'sw' ,'ne', 'se', 'n', 's', 'w', 'e'],
+    };
+    const mockClientRect = {
+      left: 0,
+      top: 0,
+    };
+    const eventTarget = document.createElement('div');
+    // $FlowIgnore need to override to have control over dummy dom element
+    eventTarget.getBoundingClientRect = () => ({ ...mockClientRect });
+    const mockEvent = { target: eventTarget };
+    const element = shallow(<Resizable {...customProps}>{resizableBoxChildren}</Resizable>);
+    const nwHandle = element.find('DraggableCore').first();
+
+    test('Gradual resizing without movement between does not modify callback', () => {
+      expect(props.onResize).not.toHaveBeenCalled();
+      nwHandle.prop('onDrag')(mockEvent, { node: null, deltaX: 5, deltaY: 10 });
+      expect(props.onResize).lastCalledWith(
+        mockEvent,
+        expect.objectContaining({
+          size: {
+            height: 40,
+            width: 45,
+          },
+        })
+      );
+    });
+
+    test('Movement between callbacks modifies response values', () => {
+      expect(props.onResize).not.toHaveBeenCalled();
+
+      mockClientRect.top = -10; // Object moves between callbacks
+      nwHandle.prop('onDrag')(mockEvent, { node: null, deltaX: 5, deltaY: 10 });
+      expect(props.onResize).lastCalledWith(
+        mockEvent,
+        expect.objectContaining({
+          size: {
+            height: 50, // No height change since deltaY is caused by clientRect moving vertically
+            width: 45,
+          },
+        })
+      );
+
+      mockClientRect.left = 20; // Object moves between callbacks
+      nwHandle.prop('onDrag')(mockEvent, { node: null, deltaX: 5, deltaY: 10 });
+      expect(props.onResize).lastCalledWith(
+        mockEvent,
+        expect.objectContaining({
+          size: {
+            height: 40, // Height decreased as deltaY increases - no further top position change since last
+            width: 25, // Width decreased 25 - 5 from deltaX and 20 from changing position
+          },
+        })
+      );
+
+      props.onResize.mockClear();
+      mockClientRect.left -= 10; // Object moves between callbacks
+      mockClientRect.top -= 10; // Object moves between callbacks
+      nwHandle.prop('onDrag')(mockEvent, { node: null, deltaX: 10, deltaY: 10 });
+      expect(props.onResize).not.toHaveBeenCalled();
+
+      mockClientRect.left -= 10; // Object moves between callbacks
+      mockClientRect.top -= 10; // Object moves between callbacks
+      const swHandle = element.find('DraggableCore').at(1);
+      swHandle.prop('onDrag')(mockEvent, { node: null, deltaX: 10, deltaY: 10 });
+      expect(props.onResize).lastCalledWith(
+        mockEvent,
+        expect.objectContaining({
+          size: {
+            height: 60, // Changed since resizing from bottom doesn't cause position change
+            width: 50, // No change - movement has caused entire delta
+          },
+        })
+      );
+
+      mockClientRect.left -= 10; // Object moves between callbacks
+      mockClientRect.top -= 10; // Object moves between callbacks
+      const neHandle = element.find('DraggableCore').at(2);
+      neHandle.prop('onDrag')(mockEvent, { node: null, deltaX: 10, deltaY: 10 });
+      expect(props.onResize).lastCalledWith(
+        mockEvent,
+        expect.objectContaining({
+          size: {
+            height: 50, // No change - movement has caused entire delta
+            width: 60, // Changed since resizing from right doesn't cause position change
+          },
+        })
+      );
+
+      mockClientRect.left -= 10; // Object moves between callbacks
+      mockClientRect.top -= 10; // Object moves between callbacks
+      const seHandle = element.find('DraggableCore').at(3);
+      seHandle.prop('onDrag')(mockEvent, { node: null, deltaX: 10, deltaY: 10 });
+      expect(props.onResize).lastCalledWith(
+        mockEvent,
+        expect.objectContaining({
+          size: {
+            height: 60, // Changed since resizing from right doesn't cause position change
+            width: 60, // Changed since resizing from right doesn't cause position change
+          },
+        })
+      );
+    });
+  });
 });
diff --git a/examples/1.html b/examples/1.html
index c63def0b..70e3a600 100644
--- a/examples/1.html
+++ b/examples/1.html
@@ -7,13 +7,20 @@
       }
       #content {
         width: 100%;
-        background: #eee;
-        padding-bottom: 200px;
+        padding-bottom: 250px;
       }
       .layoutRoot {
         display: flex;
+        background: #eee;
+        margin-bottom: 20px;
         flex-wrap: wrap;
       }
+      .absoluteLayout {
+        height: 600px;
+        position: relative;
+        justify-content: center;
+        align-items: center
+      }
       .box {
         display: inline-block;
         background: #ccc;
@@ -42,6 +49,24 @@
       .box3:hover .react-resizable-handle {
         display: block;
       }
+      .absolutely-positioned {
+        position: absolute !important;
+      }
+      .center-aligned {
+        margin: auto;
+      }
+      .left-aligned {
+        left: 0;
+      }
+      .right-aligned {
+        right: 0;
+      }
+      .top-aligned {
+        top: 0;
+      }
+      .bottom-aligned {
+        bottom: 0;
+      }
     </style>
     <script src="https://cdnjs.cloudflare.com/ajax/libs/react/15.6.1/react.min.js"></script>
     <script src="https://cdnjs.cloudflare.com/ajax/libs/react/15.6.1/react-dom.min.js"></script>
diff --git a/examples/ExampleLayout.js b/examples/ExampleLayout.js
index 22666fcd..1e3ee089 100644
--- a/examples/ExampleLayout.js
+++ b/examples/ExampleLayout.js
@@ -2,18 +2,50 @@ import React from 'react';
 import Resizable from '../lib/Resizable';
 import ResizableBox from '../lib/ResizableBox';
 import 'style-loader!css-loader!../css/styles.css';
-import 'style-loader!css-loader!./test.css';
+import 'style-loader!css-loader!./example.css';
 
 export default class ExampleLayout extends React.Component<{}, {width: number, height: number}> {
-  state = {width: 200, height: 200};
+  state = {
+    width: 200,
+    height: 200,
+    absoluteWidth: 200,
+    absoluteHeight: 200,
+    absoluteLeft: 0,
+    absoluteTop: 0,
+  };
 
   onClick = () => {
-    this.setState({width: 200, height: 200});
+    this.setState({ width: 200, height: 200, absoluteWidth: 200, absoluteHeight: 200 });
   };
 
   onResize = (event, {element, size, handle}) => {
     this.setState({width: size.width, height: size.height});
   };
+  onResizeAbsolute = (event, {element, size, handle}) => {
+    this.setState((state) => {
+      let newLeft = state.absoluteLeft;
+      let newTop = state.absoluteTop;
+      const deltaHeight = size.height - state.absoluteHeight;
+      const deltaWidth = size.width - state.absoluteWidth;
+      if (handle[0] === 'n') {
+        newTop -= deltaHeight / 2;
+      } else if (handle[0] === 's') {
+        newTop += deltaHeight / 2;
+      }
+      if (handle[handle.length - 1] === 'w') {
+        newLeft -= deltaWidth / 2;
+      } else if (handle[handle.length - 1] === 'e') {
+        newLeft += deltaWidth / 2;
+      }
+
+      return {
+        absoluteWidth: size.width,
+        absoluteHeight: size.height,
+        absoluteLeft: newLeft,
+        absoluteTop: newTop,
+      };
+    });
+  };
 
   render() {
     return (
@@ -73,6 +105,38 @@ export default class ExampleLayout extends React.Component<{}, {width: number, h
             <span className="text">Not resizable ("none" axis).</span>
           </ResizableBox>
         </div>
+        <div className="layoutRoot absoluteLayout">
+          <ResizableBox className="box absolutely-positioned top-aligned left-aligned" height={200} width={200} resizeHandles={['se', 'e', 's']}>
+            <span className="text">{"Top-left Aligned"}</span>
+          </ResizableBox>
+          <ResizableBox className="box absolutely-positioned bottom-aligned left-aligned" height={200} width={200} resizeHandles={['ne', 'e', 'n']}>
+            <span className="text">{"Bottom-left Aligned"}</span>
+          </ResizableBox>
+          <Resizable
+            className="box absolutely-positioned center-aligned"
+            height={this.state.absoluteHeight}
+            width={this.state.absoluteWidth}
+            onResize={this.onResizeAbsolute}
+            resizeHandles={['sw', 'se', 'nw', 'ne', 'w', 'e', 'n', 's']}
+          >
+            <div
+              className="box"
+              style={{
+                width: this.state.absoluteWidth,
+                height: this.state.absoluteHeight,
+                margin: `${this.state.absoluteTop} 0 0 ${this.state.absoluteLeft}`,
+              }}
+            >
+              <span className="text">{"Raw use of <Resizable> element with controlled position. Resize and reposition in all directions"}</span>
+            </div>
+          </Resizable>
+          <ResizableBox className="box absolutely-positioned top-aligned right-aligned" height={200} width={200} resizeHandles={['sw', 'w', 's']}>
+            <span className="text">{"Top-right Aligned"}</span>
+          </ResizableBox>
+          <ResizableBox className="box absolutely-positioned bottom-aligned right-aligned" height={200} width={200} resizeHandles={['nw', 'w', 'n']}>
+            <span className="text">{"Bottom-right Aligned"}</span>
+          </ResizableBox>
+        </div>
       </div>
     );
   }
diff --git a/lib/Resizable.js b/lib/Resizable.js
index 83353d25..d5561881 100644
--- a/lib/Resizable.js
+++ b/lib/Resizable.js
@@ -2,10 +2,9 @@
 import React from 'react';
 import type {Node as ReactNode} from 'react';
 import {DraggableCore} from 'react-draggable';
-
 import {cloneElement} from './utils';
 import {resizableProps} from "./propTypes";
-import type {ResizeHandleAxis, Props, ResizableState, DragCallbackData} from './propTypes';
+import type {ResizeHandleAxis, Props, ResizableState, DragCallbackData, ClientRect} from './propTypes';
 
 export default class Resizable extends React.Component<Props, ResizableState> {
   static propTypes = resizableProps;
@@ -24,6 +23,9 @@ export default class Resizable extends React.Component<Props, ResizableState> {
     slackW: 0, slackH: 0,
   };
 
+  lastHandleRect: ?ClientRect = null;
+  draggingNode: ?HTMLElement = null;
+
   lockAspectRatio(width: number, height: number, aspectRatio: number): [number, number] {
     height = width / aspectRatio;
     width = height * aspectRatio;
@@ -93,6 +95,36 @@ export default class Resizable extends React.Component<Props, ResizableState> {
       const canDragX = (this.props.axis === 'both' || this.props.axis === 'x') && ['n', 's'].indexOf(axis) === -1;
       const canDragY = (this.props.axis === 'both' || this.props.axis === 'y') && ['e', 'w'].indexOf(axis) === -1;
 
+      /*
+        Track the element being dragged to account for changes in position.
+        If a handle's position is changed between callbacks, we need to factor this in to the next callback
+      */
+      if (this.draggingNode == null && e.target instanceof HTMLElement) {
+        this.draggingNode = e.target;
+      }
+      if (this.draggingNode instanceof HTMLElement) {
+        const handleRect = this.draggingNode.getBoundingClientRect();
+        if (this.lastHandleRect != null) {
+          // Find how much the handle has moved since the last callback
+          const deltaLeftSinceLast = handleRect.left - this.lastHandleRect.left;
+          const deltaTopSinceLast = handleRect.top - this.lastHandleRect.top;
+          
+          // If the handle has repositioned on either axis since last render,
+          // we need to increase our callback values by this much.
+          // Only checking 'n', 'w' since resizing by 's', 'w' won't affect the overall position on page
+          if (canDragX && axis[axis.length - 1] === 'w') {
+            deltaX += deltaLeftSinceLast / this.props.transformScale;
+          }
+          if(canDragY && axis[0] === 'n') {
+            deltaY += deltaTopSinceLast / this.props.transformScale;
+          }
+        }
+        this.lastHandleRect = {
+          top: handleRect.top,
+          left: handleRect.left,
+        };
+      }
+
       // reverse delta if using top or left drag handles
       if (canDragX && axis[axis.length - 1] === 'w') {
         deltaX = -deltaX;
@@ -117,6 +149,7 @@ export default class Resizable extends React.Component<Props, ResizableState> {
         // nothing
       } else if (handlerName === 'onResizeStop') {
         newState.slackW = newState.slackH = 0;
+        this.lastHandleRect = this.draggingNode = null;
       } else {
         // Early return if no change after constraints
         if (width === this.props.width && height === this.props.height) return;
diff --git a/lib/propTypes.js b/lib/propTypes.js
index 6aef0c1a..6ec135ff 100644
--- a/lib/propTypes.js
+++ b/lib/propTypes.js
@@ -23,6 +23,10 @@ export type ResizeCallbackData = {|
   size: {|width: number, height: number|},
   handle: ResizeHandleAxis
 |};
+export type ClientRect = {|
+  left: number;
+  top: number;
+|};
 
 // <Resizable>
 export type Props = {|
diff --git a/webpack.config.js b/webpack.config.js
index e60e4cae..9954e050 100644
--- a/webpack.config.js
+++ b/webpack.config.js
@@ -4,7 +4,7 @@ const path = require('path');
 module.exports = {
   context: __dirname,
   entry: {
-    test: "./test/test.js",
+    test: "./examples/example.js",
   },
   output: {
     path: path.join(__dirname, "dist"),