diff --git a/d2cli/main.go b/d2cli/main.go
index f0c5e7ea0..804505e5d 100644
--- a/d2cli/main.go
+++ b/d2cli/main.go
@@ -355,6 +355,26 @@ func compile(ctx context.Context, ms *xmain.State, plugin d2plugin.Plugin, rende
 
 	ext := getExportExtension(outputPath)
 	switch ext {
+	case GIF:
+		svg, pngs, err := renderPNGsForGIF(ctx, ms, plugin, renderOpts, ruler, page, diagram)
+		if err != nil {
+			return nil, false, err
+		}
+		out, err := xgif.AnimatePNGs(pngs, int(animateInterval))
+		if err != nil {
+			return nil, false, err
+		}
+		err = os.MkdirAll(filepath.Dir(outputPath), 0755)
+		if err != nil {
+			return nil, false, err
+		}
+		err = ms.WritePath(outputPath, out)
+		if err != nil {
+			return nil, false, err
+		}
+		dur := time.Since(start)
+		ms.Log.Success.Printf("successfully compiled %s to %s in %s", ms.HumanPath(inputPath), ms.HumanPath(outputPath), dur)
+		return svg, true, nil
 	case PDF:
 		pageMap := buildBoardIDToIndex(diagram, nil, nil)
 		pdf, err := renderPDF(ctx, ms, plugin, renderOpts, outputPath, page, ruler, diagram, nil, nil, pageMap)
@@ -401,19 +421,11 @@ func compile(ctx context.Context, ms *xmain.State, plugin d2plugin.Plugin, rende
 		if err != nil {
 			return nil, false, err
 		}
-		// TODO: test GIF with 1 frame
 		var out []byte
 		if len(boards) > 0 {
 			out = boards[0]
-			if animateInterval > 0 {
-				if ext == GIF {
-					tl, br := diagram.NestedBoundingBox()
-					width := png.SCALE*(br.X-tl.X) + renderOpts.Pad*2
-					height := png.SCALE*(br.Y-tl.Y) + renderOpts.Pad*2
-					out, err = xgif.AnimatePNGs(boards, width, height, int(animateInterval))
-				} else {
-					out, err = d2animate.Wrap(diagram, boards, renderOpts, int(animateInterval))
-				}
+			if animateInterval > 0 && ext != GIF {
+				out, err = d2animate.Wrap(diagram, boards, renderOpts, int(animateInterval))
 				if err != nil {
 					return nil, false, err
 				}
@@ -610,7 +622,7 @@ func render(ctx context.Context, ms *xmain.State, compileDur time.Duration, plug
 }
 
 func _render(ctx context.Context, ms *xmain.State, plugin d2plugin.Plugin, opts d2svg.RenderOpts, outputPath string, bundle, forceAppendix bool, page playwright.Page, ruler *textmeasure.Ruler, diagram *d2target.Diagram) ([]byte, error) {
-	toPNG := getExportExtension(outputPath).requiresPNGRenderer()
+	toPNG := getExportExtension(outputPath) == PNG
 	svg, err := d2svg.Render(diagram, &d2svg.RenderOpts{
 		Pad:           opts.Pad,
 		Sketch:        opts.Sketch,
@@ -1001,3 +1013,61 @@ func buildBoardIDToIndex(diagram *d2target.Diagram, dictionary map[string]int, p
 
 	return dictionary
 }
+
+func renderPNGsForGIF(ctx context.Context, ms *xmain.State, plugin d2plugin.Plugin, opts d2svg.RenderOpts, ruler *textmeasure.Ruler, page playwright.Page, diagram *d2target.Diagram) (svg []byte, pngs [][]byte, err error) {
+	if !diagram.IsFolderOnly {
+		svg, err = d2svg.Render(diagram, &d2svg.RenderOpts{
+			Pad:           opts.Pad,
+			Sketch:        opts.Sketch,
+			Center:        opts.Center,
+			SetDimensions: true,
+		})
+		if err != nil {
+			return nil, nil, err
+		}
+
+		svg, err = plugin.PostProcess(ctx, svg)
+		if err != nil {
+			return nil, nil, err
+		}
+
+		svg, bundleErr := imgbundler.BundleLocal(ctx, ms, svg)
+		svg, bundleErr2 := imgbundler.BundleRemote(ctx, ms, svg)
+		bundleErr = multierr.Combine(bundleErr, bundleErr2)
+		if bundleErr != nil {
+			return nil, nil, bundleErr
+		}
+
+		svg = appendix.Append(diagram, ruler, svg)
+
+		pngImg, err := png.ConvertSVG(ms, page, svg)
+		if err != nil {
+			return nil, nil, err
+		}
+		pngs = append(pngs, pngImg)
+	}
+
+	for _, dl := range diagram.Layers {
+		_, layerPNGs, err := renderPNGsForGIF(ctx, ms, plugin, opts, ruler, page, dl)
+		if err != nil {
+			return nil, nil, err
+		}
+		pngs = append(pngs, layerPNGs...)
+	}
+	for _, dl := range diagram.Scenarios {
+		_, scenarioPNGs, err := renderPNGsForGIF(ctx, ms, plugin, opts, ruler, page, dl)
+		if err != nil {
+			return nil, nil, err
+		}
+		pngs = append(pngs, scenarioPNGs...)
+	}
+	for _, dl := range diagram.Steps {
+		_, stepsPNGs, err := renderPNGsForGIF(ctx, ms, plugin, opts, ruler, page, dl)
+		if err != nil {
+			return nil, nil, err
+		}
+		pngs = append(pngs, stepsPNGs...)
+	}
+
+	return svg, pngs, nil
+}
diff --git a/lib/xgif/test_output.gif b/lib/xgif/test_output.gif
index d9bfda058..5226b6427 100644
Binary files a/lib/xgif/test_output.gif and b/lib/xgif/test_output.gif differ
diff --git a/lib/xgif/xgif.go b/lib/xgif/xgif.go
index 64823b07a..f0c149712 100644
--- a/lib/xgif/xgif.go
+++ b/lib/xgif/xgif.go
@@ -4,32 +4,47 @@ import (
 	"bytes"
 	"fmt"
 	"image"
+	"image/color"
 	"image/gif"
 	"image/png"
 
 	"github.com/ericpauley/go-quantize/quantize"
+	"oss.terrastruct.com/util-go/go2"
 )
 
 const INFINITE_LOOP = 0
+const BG_INDEX uint8 = 255
+
+var BG_COLOR = color.White
+
+func AnimatePNGs(pngs [][]byte, animIntervalMs int) ([]byte, error) {
+	var width, height int
+	pngImgs := make([]image.Image, len(pngs))
+	for i, pngBytes := range pngs {
+		img, err := png.Decode(bytes.NewBuffer(pngBytes))
+		if err != nil {
+			return nil, err
+		}
+		pngImgs[i] = img
+		bounds := img.Bounds()
+		width = go2.Max(width, bounds.Dx())
+		height = go2.Max(height, bounds.Dy())
+	}
 
-func AnimatePNGs(pngs [][]byte, gifWidth, gifHeight int, animIntervalMs int) ([]byte, error) {
 	interval := animIntervalMs / 10 // gif animation interval is in 100ths of a second
 	anim := &gif.GIF{
 		LoopCount: INFINITE_LOOP,
 		Config: image.Config{
-			Width:  gifWidth,
-			Height: gifHeight,
+			Width:  width,
+			Height: height,
 		},
 	}
 
-	for _, pngBytes := range pngs {
-		pngImage, err := png.Decode(bytes.NewBuffer(pngBytes))
-		if err != nil {
-			return nil, err
-		}
+	for _, pngImage := range pngImgs {
+		// 1. convert the PNG into a GIF compatible image (Bitmap) by quantizing it to 255 colors
 		buf := bytes.NewBuffer(nil)
-		err = gif.Encode(buf, pngImage, &gif.Options{
-			NumColors: 256, // GIFs can have up to 256 colors
+		err := gif.Encode(buf, pngImage, &gif.Options{
+			NumColors: 255, // GIFs can have up to 256 colors, so keep 1 slot for white background
 			Quantizer: quantize.MedianCutQuantizer{},
 		})
 		if err != nil {
@@ -43,7 +58,27 @@ func AnimatePNGs(pngs [][]byte, gifWidth, gifHeight int, animIntervalMs int) ([]
 		if !ok {
 			return nil, fmt.Errorf("decoded git image could not be cast as *image.Paletted")
 		}
-		anim.Image = append(anim.Image, palettedImg)
+
+		// 2. make GIF frames of the same size, keeping images centered and with a white background
+		bounds := pngImage.Bounds()
+		top := (height - bounds.Dy()) / 2
+		bottom := top + bounds.Dy()
+		left := (width - bounds.Dx()) / 2
+		right := left + bounds.Dx()
+
+		palettedImg.Palette[BG_INDEX] = BG_COLOR
+		frame := image.NewPaletted(image.Rect(0, 0, width, height), palettedImg.Palette)
+		for x := 0; x < width; x++ {
+			for y := 0; y < height; y++ {
+				if x <= left || y <= top || x >= right || y >= bottom {
+					frame.SetColorIndex(x, y, BG_INDEX)
+				} else {
+					frame.SetColorIndex(x, y, palettedImg.ColorIndexAt(x-left, y-top))
+				}
+			}
+		}
+
+		anim.Image = append(anim.Image, frame)
 		anim.Delay = append(anim.Delay, interval)
 	}
 
diff --git a/lib/xgif/xgif_test.go b/lib/xgif/xgif_test.go
index b0f356654..fcdc370e7 100644
--- a/lib/xgif/xgif_test.go
+++ b/lib/xgif/xgif_test.go
@@ -1,13 +1,11 @@
 package xgif
 
 import (
-	"bytes"
 	_ "embed"
-	"image/png"
+	"os"
 	"testing"
 
 	"github.com/stretchr/testify/assert"
-	"oss.terrastruct.com/util-go/go2"
 )
 
 //go:embed test_input1.png
@@ -20,20 +18,18 @@ var test_input2 []byte
 var test_output []byte
 
 func TestPngToGif(t *testing.T) {
-	board1, err := png.Decode(bytes.NewBuffer(test_input1))
-	assert.NoError(t, err)
-	gifWidth := board1.Bounds().Dx()
-	gifHeight := board1.Bounds().Dy()
-
-	board2, err := png.Decode(bytes.NewBuffer(test_input2))
-	assert.NoError(t, err)
-	gifWidth = go2.Max(board2.Bounds().Dx(), gifWidth)
-	gifHeight = go2.Max(board2.Bounds().Dy(), gifHeight)
-
 	boards := [][]byte{test_input1, test_input2}
 	interval := 1_000
-	gifBytes, err := AnimatePNGs(boards, gifWidth, gifHeight, interval)
+	gifBytes, err := AnimatePNGs(boards, interval)
 	assert.NoError(t, err)
 
+	// use this to update the test output
+	if false {
+		f, err := os.Create("test_output_2.gif")
+		assert.NoError(t, err)
+		defer f.Close()
+		f.Write(gifBytes)
+	}
+
 	assert.Equal(t, test_output, gifBytes)
 }