diff --git a/core/src/display_object/avm2_button.rs b/core/src/display_object/avm2_button.rs
index 6f1d1db5a..381866d01 100644
--- a/core/src/display_object/avm2_button.rs
+++ b/core/src/display_object/avm2_button.rs
@@ -617,7 +617,8 @@ impl<'gc> TDisplayObject<'gc> for Avm2Button<'gc> {
         // Add the bounds of the child, dictated by current state
         let state = self.0.read().state;
         if let Some(child) = self.get_state_child(state.into()) {
-            let child_bounds = child.bounds_with_transform(matrix);
+            let matrix = *matrix * *child.base().matrix();
+            let child_bounds = child.bounds_with_transform(&matrix);
             bounds = bounds.union(&child_bounds);
         }
 
diff --git a/tests/tests/swfs/avm2/button_bounds/Test.as b/tests/tests/swfs/avm2/button_bounds/Test.as
new file mode 100644
index 000000000..89c1b350f
--- /dev/null
+++ b/tests/tests/swfs/avm2/button_bounds/Test.as
@@ -0,0 +1,14 @@
+package  {
+	
+	import flash.display.MovieClip;
+	
+	
+	public class Test extends MovieClip {
+		
+		
+		public function Test() {
+			trace(button.getBounds(this));
+		}
+	}
+	
+}
diff --git a/tests/tests/swfs/avm2/button_bounds/output.txt b/tests/tests/swfs/avm2/button_bounds/output.txt
new file mode 100644
index 000000000..83bf1d168
--- /dev/null
+++ b/tests/tests/swfs/avm2/button_bounds/output.txt
@@ -0,0 +1 @@
+(x=188.8, y=112.6, w=91.64999999999998, h=21.200000000000017)
diff --git a/tests/tests/swfs/avm2/button_bounds/test.fla b/tests/tests/swfs/avm2/button_bounds/test.fla
new file mode 100644
index 000000000..5b1ebd71a
Binary files /dev/null and b/tests/tests/swfs/avm2/button_bounds/test.fla differ
diff --git a/tests/tests/swfs/avm2/button_bounds/test.swf b/tests/tests/swfs/avm2/button_bounds/test.swf
new file mode 100644
index 000000000..33c19cf78
Binary files /dev/null and b/tests/tests/swfs/avm2/button_bounds/test.swf differ
diff --git a/tests/tests/swfs/avm2/button_bounds/test.toml b/tests/tests/swfs/avm2/button_bounds/test.toml
new file mode 100644
index 000000000..f47277724
--- /dev/null
+++ b/tests/tests/swfs/avm2/button_bounds/test.toml
@@ -0,0 +1,5 @@
+num_frames = 1
+
+[approximations]
+number_patterns = ["\\(x=(.+?), y=(.+?), w=(.+?), h=(.+?)\\)"]
+epsilon = 0.01