diff --git a/sway/desktop/layer_shell.c b/sway/desktop/layer_shell.c
index 91e113a73..197189910 100644
--- a/sway/desktop/layer_shell.c
+++ b/sway/desktop/layer_shell.c
@@ -115,9 +115,10 @@ static void arrange_layer(struct sway_output *output, struct wl_list *list,
 		// Horizontal axis
 		const uint32_t both_horiz = ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT
 			| ZWLR_LAYER_SURFACE_V1_ANCHOR_RIGHT;
-		if ((state->anchor & both_horiz) && box.width == 0) {
+		if (box.width == 0) {
 			box.x = bounds.x;
-			box.width = bounds.width;
+		} else if ((state->anchor & both_horiz) == both_horiz) {
+			box.x = bounds.x + ((bounds.width / 2) - (box.width / 2));
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT)) {
 			box.x = bounds.x;
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_RIGHT)) {
@@ -128,9 +129,10 @@ static void arrange_layer(struct sway_output *output, struct wl_list *list,
 		// Vertical axis
 		const uint32_t both_vert = ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP
 			| ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM;
-		if ((state->anchor & both_vert) && box.height == 0) {
+		if (box.height == 0) {
 			box.y = bounds.y;
-			box.height = bounds.height;
+		} else if ((state->anchor & both_vert) == both_vert) {
+			box.y = bounds.y + ((bounds.height / 2) - (box.height / 2));
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP)) {
 			box.y = bounds.y;
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM)) {
@@ -139,17 +141,23 @@ static void arrange_layer(struct sway_output *output, struct wl_list *list,
 			box.y = bounds.y + ((bounds.height / 2) - (box.height / 2));
 		}
 		// Margin
-		if ((state->anchor & both_horiz) == both_horiz) {
+		if (box.width == 0) {
 			box.x += state->margin.left;
-			box.width -= state->margin.left + state->margin.right;
+			box.width = bounds.width -
+				(state->margin.left + state->margin.right);
+		} else if ((state->anchor & both_horiz) == both_horiz) {
+			// don't apply margins
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_LEFT)) {
 			box.x += state->margin.left;
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_RIGHT)) {
 			box.x -= state->margin.right;
 		}
-		if ((state->anchor & both_vert) == both_vert) {
+		if (box.height == 0) {
 			box.y += state->margin.top;
-			box.height -= state->margin.top + state->margin.bottom;
+			box.height = bounds.height -
+				(state->margin.top + state->margin.bottom);
+		} else if ((state->anchor & both_vert) == both_vert) {
+			// don't apply margins
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_TOP)) {
 			box.y += state->margin.top;
 		} else if ((state->anchor & ZWLR_LAYER_SURFACE_V1_ANCHOR_BOTTOM)) {