diff --git a/core/asset.ts b/core/asset.ts
index b9b514b..45f92c4 100644
--- a/core/asset.ts
+++ b/core/asset.ts
@@ -1,3 +1,4 @@
+import type { Size } from "./geometry";
 import type { AssetId } from "./id";
 
 export type Asset = {
@@ -5,4 +6,5 @@ export type Asset = {
   name: string;
   mimeType: string;
   source: string;
+  intrinsicSize: Size;
 };
diff --git a/editor/transform-targets.test.ts b/editor/transform-targets.test.ts
index 20d6438..2160422 100644
--- a/editor/transform-targets.test.ts
+++ b/editor/transform-targets.test.ts
@@ -6,14 +6,25 @@ const document: ImageDocument = {
   id: "d1",
   name: "Test",
   version: 1,
-  assets: [],
+  assets: [{ id: "asset-1", name: "Image", mimeType: "image/png", source: "asset://image", intrinsicSize: { w: 200, h: 100 } }],
   artboards: [
     {
       id: "a1",
       name: "Artboard",
       bounds: { x: 0, y: 0, w: 100, h: 80 },
       backgroundColor: "transparent",
-      layers: [],
+      layers: [
+        {
+          id: "l1",
+          type: "image",
+          name: "Image Layer",
+          visible: true,
+          locked: false,
+          opacity: 1,
+          assetId: "asset-1",
+          transform: { position: { x: 10, y: 20 }, scale: { x: 0.5, y: 2 }, rotation: 0 },
+        },
+      ],
     },
   ],
 };
@@ -27,6 +38,17 @@ describe("transform targets", () => {
     expect(resolveTransformTargetBounds(document, { type: "artboard", id: "a1" })).toEqual({ x: 0, y: 0, w: 100, h: 80 });
   });
 
+  test("resolves image layer bounds from intrinsic asset dimensions", () => {
+    expect(resolveTransformTargetBounds(document, { type: "layer", id: "l1" })).toEqual({ x: 10, y: 20, w: 100, h: 200 });
+  });
+
+  test("applies image layer bounds to transform", () => {
+    const next = applyTransformTargetBounds(document, { type: "layer", id: "l1" }, { x: 30, y: 40, w: 400, h: 50 });
+    const layer = next.artboards[0]?.layers[0];
+
+    expect(layer?.transform).toEqual({ position: { x: 30, y: 40 }, scale: { x: 2, y: 0.5 }, rotation: 0 });
+  });
+
   test("applies artboard bounds", () => {
     const next = applyTransformTargetBounds(document, { type: "artboard", id: "a1" }, { x: 10, y: 20, w: 200, h: 160 });
     expect(next.artboards[0]?.bounds).toEqual({ x: 10, y: 20, w: 200, h: 160 });
diff --git a/editor/transform-targets.ts b/editor/transform-targets.ts
index 7210073..c9145c7 100644
--- a/editor/transform-targets.ts
+++ b/editor/transform-targets.ts
@@ -10,7 +10,7 @@ export function resolveTransformTargetBounds(document: ImageDocument, target: Tr
       return document.artboards.find((artboard) => artboard.id === target.id)?.bounds;
     case "layer": {
       const layer = findLayer(document, target.id);
-      return layer ? resolveLayerBounds(layer) : undefined;
+      return layer ? resolveLayerBounds(document, layer) : undefined;
     }
   }
 }
@@ -23,7 +23,7 @@ export function applyTransformTargetBounds(document: ImageDocument, target: Tran
         artboards: document.artboards.map((artboard) => (artboard.id === target.id ? { ...artboard, bounds: { ...bounds } } : artboard)),
       };
     case "layer":
-      return document;
+      return applyLayerBounds(document, target.id, bounds);
   }
 }
 
@@ -33,6 +33,40 @@ export function selectedTransformTarget(document: ImageDocument, selection: { ar
   return undefined;
 }
 
+function applyLayerBounds(document: ImageDocument, layerId: LayerId, bounds: Rect): ImageDocument {
+  return {
+    ...document,
+    artboards: document.artboards.map((artboard) => ({
+      ...artboard,
+      layers: applyLayerBoundsInTree(document, artboard.layers, layerId, bounds),
+    })),
+  };
+}
+
+function applyLayerBoundsInTree(document: ImageDocument, layers: Layer[], layerId: LayerId, bounds: Rect): Layer[] {
+  return layers.map((layer) => {
+    if (layer.id === layerId && layer.type === "image") {
+      const asset = document.assets.find((candidate) => candidate.id === layer.assetId);
+      if (!asset) return layer;
+
+      return {
+        ...layer,
+        transform: {
+          ...layer.transform,
+          position: { x: bounds.x, y: bounds.y },
+          scale: {
+            x: bounds.w / asset.intrinsicSize.w,
+            y: bounds.h / asset.intrinsicSize.h,
+          },
+        },
+      };
+    }
+
+    if (layer.type === "group") return { ...layer, children: applyLayerBoundsInTree(document, layer.children, layerId, bounds) };
+    return layer;
+  });
+}
+
 function findLayer(document: ImageDocument, layerId: LayerId): Layer | undefined {
   for (const artboard of document.artboards) {
     const layer = findLayerInTree(artboard.layers, layerId);
@@ -54,15 +88,24 @@ function findLayerInTree(layers: Layer[], layerId: LayerId): Layer | undefined {
   return undefined;
 }
 
-function resolveLayerBounds(layer: Layer): Rect | undefined {
+function resolveLayerBounds(document: ImageDocument, layer: Layer): Rect | undefined {
   switch (layer.type) {
     case "group":
       return unionRects(layer.children.flatMap((child) => {
-        const bounds = resolveLayerBounds(child);
+        const bounds = resolveLayerBounds(document, child);
         return bounds ? [bounds] : [];
       }));
-    case "image":
-      return undefined;
+    case "image": {
+      const asset = document.assets.find((candidate) => candidate.id === layer.assetId);
+      if (!asset) return undefined;
+
+      return {
+        x: layer.transform.position.x,
+        y: layer.transform.position.y,
+        w: asset.intrinsicSize.w * layer.transform.scale.x,
+        h: asset.intrinsicSize.h * layer.transform.scale.y,
+      };
+    }
   }
 }