diff --git a/d2layouts/d2layouts.go b/d2layouts/d2layouts.go
index 30ff31b68..46590f8b1 100644
--- a/d2layouts/d2layouts.go
+++ b/d2layouts/d2layouts.go
@@ -1,9 +1,11 @@
 package d2layouts
 
 import (
+	"math"
 	"strings"
 
 	"oss.terrastruct.com/d2/d2graph"
+	"oss.terrastruct.com/d2/lib/geo"
 )
 
 type GraphType string
@@ -15,7 +17,7 @@ const (
 	SequenceDiagram   GraphType = "sequence-diagram"
 )
 
-func LayoutNested(g *d2graph.Graph, graphType GraphType, coreLayout d2graph.LayoutGraph) {
+func LayoutNested(g *d2graph.Graph, graphType GraphType, coreLayout d2graph.LayoutGraph) geo.Spacing {
 	// Before we can layout these nodes, we need to handle all nested diagrams first.
 	extracted := make(map[*d2graph.Object]*d2graph.Graph)
 
@@ -29,10 +31,10 @@ func LayoutNested(g *d2graph.Graph, graphType GraphType, coreLayout d2graph.Layo
 			nestedGraph := ExtractNested(child)
 
 			// Layout of nestedGraph is completed
-			LayoutNested(nestedGraph, graphType, coreLayout)
+			spacing := LayoutNested(nestedGraph, graphType, coreLayout)
 
 			// Fit child to size of nested layout
-			FitToGraph(child, nestedGraph)
+			FitToGraph(child, nestedGraph, spacing)
 
 			// We will restore the contents after running layout with child as the placeholder
 			extracted[child] = nestedGraph
@@ -43,12 +45,14 @@ func LayoutNested(g *d2graph.Graph, graphType GraphType, coreLayout d2graph.Layo
 
 	// We can now run layout with accurate sizes of nested layout containers
 	// Layout according to the type of diagram
-	LayoutDiagram(g, graphType, coreLayout)
+	spacing := LayoutDiagram(g, graphType, coreLayout)
 
 	// With the layout set, inject all the extracted graphs
 	for n, nestedGraph := range extracted {
 		InjectNested(n, nestedGraph)
 	}
+
+	return spacing
 }
 
 func NestedGraphType(obj *d2graph.Object) GraphType {
@@ -65,15 +69,15 @@ func NestedGraphType(obj *d2graph.Object) GraphType {
 }
 
 func ExtractNested(container *d2graph.Object) *d2graph.Graph {
-	tempGraph := d2graph.NewGraph()
-	tempGraph.RootLevel = int(container.Level())
+	nestedGraph := d2graph.NewGraph()
+	nestedGraph.RootLevel = int(container.Level())
 
 	// separate out nested edges
 	g := container.Graph
 	remainingEdges := make([]*d2graph.Edge, 0, len(g.Edges))
 	for _, edge := range g.Edges {
 		if edge.Src.Parent.IsDescendantOf(container) && edge.Dst.Parent.IsDescendantOf(container) {
-			tempGraph.Edges = append(tempGraph.Edges, edge)
+			nestedGraph.Edges = append(nestedGraph.Edges, edge)
 		} else {
 			remainingEdges = append(remainingEdges, edge)
 		}
@@ -84,7 +88,7 @@ func ExtractNested(container *d2graph.Object) *d2graph.Graph {
 	remainingObjects := make([]*d2graph.Object, 0, len(g.Objects))
 	for _, obj := range g.Objects {
 		if obj.IsDescendantOf(container) {
-			tempGraph.Objects = append(tempGraph.Objects, obj)
+			nestedGraph.Objects = append(nestedGraph.Objects, obj)
 		} else {
 			remainingObjects = append(remainingObjects, obj)
 		}
@@ -92,14 +96,14 @@ func ExtractNested(container *d2graph.Object) *d2graph.Graph {
 	g.Objects = remainingObjects
 
 	// update object and new root references
-	for _, o := range tempGraph.Objects {
-		o.Graph = tempGraph
+	for _, o := range nestedGraph.Objects {
+		o.Graph = nestedGraph
 	}
 	// set root references
-	tempGraph.Root.ChildrenArray = append(tempGraph.Root.ChildrenArray, container.ChildrenArray...)
+	nestedGraph.Root.ChildrenArray = append(nestedGraph.Root.ChildrenArray, container.ChildrenArray...)
 	for _, child := range container.ChildrenArray {
-		child.Parent = tempGraph.Root
-		tempGraph.Root.Children[strings.ToLower(child.ID)] = child
+		child.Parent = nestedGraph.Root
+		nestedGraph.Root.Children[strings.ToLower(child.ID)] = child
 	}
 
 	// remove container's references
@@ -108,17 +112,68 @@ func ExtractNested(container *d2graph.Object) *d2graph.Graph {
 	}
 	container.ChildrenArray = nil
 
-	return tempGraph
+	// position contents relative to 0,0
+	dx := -container.TopLeft.X
+	dy := -container.TopLeft.Y
+	for _, o := range nestedGraph.Objects {
+		o.TopLeft.X += dx
+		o.TopLeft.Y += dy
+	}
+	for _, e := range nestedGraph.Edges {
+		e.Move(dx, dy)
+	}
+	return nestedGraph
 }
 
-func InjectNested(container *d2graph.Object, graph *d2graph.Graph) {
-	// TODO
+func InjectNested(container *d2graph.Object, nestedGraph *d2graph.Graph) {
+	g := container.Graph
+	for _, obj := range nestedGraph.Root.ChildrenArray {
+		obj.Parent = container
+		container.Children[strings.ToLower(obj.ID)] = obj
+		container.ChildrenArray = append(container.ChildrenArray, obj)
+	}
+	for _, obj := range nestedGraph.Objects {
+		obj.Graph = g
+	}
+	g.Objects = append(g.Objects, nestedGraph.Objects...)
+	g.Edges = append(g.Edges, nestedGraph.Edges...)
+
+	// Note: assumes nestedGraph's layout has contents positioned relative to 0,0
+	dx := container.TopLeft.X
+	dy := container.TopLeft.Y
+	for _, o := range nestedGraph.Objects {
+		o.TopLeft.X += dx
+		o.TopLeft.Y += dy
+	}
+	for _, e := range nestedGraph.Edges {
+		e.Move(dx, dy)
+	}
 }
 
-func FitToGraph(container *d2graph.Object, graph *d2graph.Graph) {
-	// TODO
+func boundingBox(g *d2graph.Graph) (tl, br *geo.Point) {
+	if len(g.Objects) == 0 {
+		return geo.NewPoint(0, 0), geo.NewPoint(0, 0)
+	}
+	tl = geo.NewPoint(math.Inf(1), math.Inf(1))
+	br = geo.NewPoint(math.Inf(-1), math.Inf(-1))
+
+	for _, obj := range g.Objects {
+		tl.X = math.Min(tl.X, obj.TopLeft.X)
+		tl.Y = math.Min(tl.Y, obj.TopLeft.Y)
+		br.X = math.Max(br.X, obj.TopLeft.X+obj.Width)
+		br.Y = math.Max(br.Y, obj.TopLeft.Y+obj.Height)
+	}
+
+	return tl, br
 }
 
-func LayoutDiagram(graph *d2graph.Graph, graphType GraphType, coreLayout d2graph.LayoutGraph) {
-	// TODO
+func FitToGraph(container *d2graph.Object, nestedGraph *d2graph.Graph, padding geo.Spacing) {
+	tl, br := boundingBox(nestedGraph)
+	container.Width = padding.Left + br.X - tl.X + padding.Right
+	container.Height = padding.Top + br.Y - tl.Y + padding.Bottom
+}
+
+func LayoutDiagram(graph *d2graph.Graph, graphType GraphType, coreLayout d2graph.LayoutGraph) geo.Spacing {
+	// TODO
+	return geo.Spacing{}
 }
diff --git a/lib/geo/spacing.go b/lib/geo/spacing.go
new file mode 100644
index 000000000..2684ee582
--- /dev/null
+++ b/lib/geo/spacing.go
@@ -0,0 +1,5 @@
+package geo
+
+type Spacing struct {
+	Top, Bottom, Left, Right float64
+}