diff --git a/d2graph/d2graph.go b/d2graph/d2graph.go
index 006bfae85..f43837ef8 100644
--- a/d2graph/d2graph.go
+++ b/d2graph/d2graph.go
@@ -26,6 +26,7 @@ import (
 	"oss.terrastruct.com/d2/d2themes/d2themescatalog"
 	"oss.terrastruct.com/d2/lib/color"
 	"oss.terrastruct.com/d2/lib/geo"
+	"oss.terrastruct.com/d2/lib/label"
 	"oss.terrastruct.com/d2/lib/shape"
 	"oss.terrastruct.com/d2/lib/textmeasure"
 )
@@ -1989,3 +1990,36 @@ func (obj *Object) GetModifierElementAdjustments() (dx, dy float64) {
 	}
 	return dx, dy
 }
+
+func (obj *Object) ToShape() shape.Shape {
+	tl := obj.TopLeft
+	if tl == nil {
+		tl = geo.NewPoint(0, 0)
+	}
+	dslShape := strings.ToLower(obj.Shape.Value)
+	shapeType := d2target.DSL_SHAPE_TO_SHAPE_TYPE[dslShape]
+	contentBox := geo.NewBox(tl, obj.Width, obj.Height)
+	return shape.NewShape(shapeType, contentBox)
+}
+
+func (obj *Object) GetLabelTopLeft() *geo.Point {
+	if obj.LabelPosition == nil {
+		return nil
+	}
+
+	s := obj.ToShape()
+	labelPosition := label.Position(*obj.LabelPosition)
+
+	var box *geo.Box
+	if labelPosition.IsOutside() {
+		box = s.GetBox()
+	} else {
+		box = s.GetInnerBox()
+	}
+
+	labelTL := labelPosition.GetPointOnBox(box, label.PADDING,
+		float64(obj.LabelDimensions.Width),
+		float64(obj.LabelDimensions.Height),
+	)
+	return labelTL
+}
diff --git a/d2layouts/d2dagrelayout/layout.go b/d2layouts/d2dagrelayout/layout.go
index db9c4f4b3..39cd1f9fe 100644
--- a/d2layouts/d2dagrelayout/layout.go
+++ b/d2layouts/d2dagrelayout/layout.go
@@ -119,9 +119,7 @@ func Layout(ctx context.Context, g *d2graph.Graph, opts *ConfigurableOpts) (err
 		}
 
 		if obj.Icon != nil && obj.Shape.Value != d2target.ShapeImage {
-			contentBox := geo.NewBox(geo.NewPoint(0, 0), float64(obj.Width), float64(obj.Height))
-			shapeType := d2target.DSL_SHAPE_TO_SHAPE_TYPE[obj.Shape.Value]
-			s := shape.NewShape(shapeType, contentBox)
+			s := obj.ToShape()
 			iconSize := d2target.GetIconSize(s.GetInnerBox(), string(label.InsideTopLeft))
 			// Since dagre container labels are pushed up, we don't want a child container to collide
 			maxContainerLabelHeight = go2.Max(maxContainerLabelHeight, (iconSize+label.PADDING*2)*2)
@@ -491,8 +489,8 @@ func Layout(ctx context.Context, g *d2graph.Graph, opts *ConfigurableOpts) (err
 			}
 		}
 
-		srcShape := shape.NewShape(d2target.DSL_SHAPE_TO_SHAPE_TYPE[strings.ToLower(edge.Src.Shape.Value)], edge.Src.Box)
-		dstShape := shape.NewShape(d2target.DSL_SHAPE_TO_SHAPE_TYPE[strings.ToLower(edge.Dst.Shape.Value)], edge.Dst.Box)
+		srcShape := edge.Src.ToShape()
+		dstShape := edge.Dst.ToShape()
 
 		// trace the edge to the specific shape's border
 		points[startIndex] = shape.TraceToShapeBorder(srcShape, start, points[startIndex+1])
diff --git a/d2layouts/d2elklayout/layout.go b/d2layouts/d2elklayout/layout.go
index 5c29020a2..be6687f7e 100644
--- a/d2layouts/d2elklayout/layout.go
+++ b/d2layouts/d2elklayout/layout.go
@@ -501,8 +501,8 @@ func Layout(ctx context.Context, g *d2graph.Graph, opts *ConfigurableOpts) (err
 			}
 		}
 
-		srcShape := shape.NewShape(d2target.DSL_SHAPE_TO_SHAPE_TYPE[strings.ToLower(edge.Src.Shape.Value)], edge.Src.Box)
-		dstShape := shape.NewShape(d2target.DSL_SHAPE_TO_SHAPE_TYPE[strings.ToLower(edge.Dst.Shape.Value)], edge.Dst.Box)
+		srcShape := edge.Src.ToShape()
+		dstShape := edge.Dst.ToShape()
 
 		// trace the edge to the specific shape's border
 		points[startIndex] = shape.TraceToShapeBorder(srcShape, points[startIndex], points[startIndex+1])
diff --git a/d2layouts/d2grid/layout.go b/d2layouts/d2grid/layout.go
index 26bfb26b7..6b747f7b3 100644
--- a/d2layouts/d2grid/layout.go
+++ b/d2layouts/d2grid/layout.go
@@ -6,13 +6,10 @@ import (
 	"fmt"
 	"math"
 	"sort"
-	"strings"
 
 	"oss.terrastruct.com/d2/d2graph"
-	"oss.terrastruct.com/d2/d2target"
 	"oss.terrastruct.com/d2/lib/geo"
 	"oss.terrastruct.com/d2/lib/label"
-	"oss.terrastruct.com/d2/lib/shape"
 	"oss.terrastruct.com/util-go/go2"
 )
 
@@ -104,13 +101,12 @@ func withoutGridDiagrams(ctx context.Context, g *d2graph.Graph, layout d2graph.L
 			if obj.GridGap != nil || obj.VerticalGap != nil {
 				verticalPadding = gd.verticalGap
 			}
+
 			// size shape according to grid
-			obj.SizeToContent(float64(gd.width), float64(gd.height), float64(2*horizontalPadding), float64(2*verticalPadding))
+			obj.SizeToContent(gd.width, gd.height, float64(2*horizontalPadding), float64(2*verticalPadding))
 
 			// compute where the grid should be placed inside shape
-			dslShape := strings.ToLower(obj.Shape.Value)
-			shapeType := d2target.DSL_SHAPE_TO_SHAPE_TYPE[dslShape]
-			s := shape.NewShape(shapeType, geo.NewBox(geo.NewPoint(0, 0), obj.Width, obj.Height))
+			s := obj.ToShape()
 			innerBox := s.GetInnerBox()
 			if innerBox.TopLeft.X != 0 || innerBox.TopLeft.Y != 0 {
 				gd.shift(innerBox.TopLeft.X, innerBox.TopLeft.Y)
@@ -126,6 +122,34 @@ func withoutGridDiagrams(ctx context.Context, g *d2graph.Graph, layout d2graph.L
 			}
 			if obj.LabelDimensions.Height != 0 {
 				labelHeight := float64(obj.LabelDimensions.Height) + 2*label.PADDING
+
+				{
+					// also check for grid cells with outside top labels
+					topY := gd.objects[0].TopLeft.Y
+					highestLabel := topY
+					for _, o := range gd.objects {
+						if o.TopLeft.Y > topY {
+							if gd.rowDirected {
+								break
+							} else {
+								continue
+							}
+						}
+						if o.LabelPosition != nil {
+							labelPosition := label.Position(*o.LabelPosition)
+							if labelPosition.IsOutside() {
+								labelTL := o.GetLabelTopLeft()
+								if labelTL.Y < highestLabel {
+									highestLabel = labelTL.Y
+								}
+							}
+						}
+					}
+					if highestLabel < topY {
+						labelHeight += topY - highestLabel + 2*label.PADDING
+					}
+				}
+
 				if labelHeight > float64(verticalPadding) {
 					// if the label doesn't fit within the padding, we need to add more
 					grow := labelHeight - float64(verticalPadding)