diff --git a/editor/src/components/canvas/canvas-strategies/strategies/grid-change-element-location-strategy.ts b/editor/src/components/canvas/canvas-strategies/strategies/grid-change-element-location-strategy.ts
index 8eb840663578..2557a35c9e47 100644
--- a/editor/src/components/canvas/canvas-strategies/strategies/grid-change-element-location-strategy.ts
+++ b/editor/src/components/canvas/canvas-strategies/strategies/grid-change-element-location-strategy.ts
@@ -34,8 +34,16 @@ import {
   isAutoGridPin,
   getCommandsForGridItemPlacement,
   sortElementsByGridPosition,
+  getGridRelativeContainingBlock,
 } from './grid-helpers'
 import type { GridCellCoordinates } from './grid-cell-bounds'
+import {
+  canvasRectangle,
+  offsetPoint,
+  offsetRect,
+  rectContainsPoint,
+  zeroCanvasRect,
+} from '../../../../core/shared/math-utils'
 
 export const gridChangeElementLocationStrategy: CanvasStrategyFactory = (
   canvasState: InteractionCanvasState,
@@ -172,7 +180,7 @@ function getCommandsAndPatchForGridChangeElementLocation(
   }
 }
 
-interface NewGridElementProps {
+export interface NewGridElementProps {
   gridElementProperties: GridElementProperties
   targetCellCoords: GridCellCoordinates
   targetRootCell: GridCellCoordinates
diff --git a/editor/src/components/canvas/canvas-strategies/strategies/grid-element-change-location-strategy.spec.browser2.tsx b/editor/src/components/canvas/canvas-strategies/strategies/grid-element-change-location-strategy.spec.browser2.tsx
index efb317a19ba2..04c6a3939405 100644
--- a/editor/src/components/canvas/canvas-strategies/strategies/grid-element-change-location-strategy.spec.browser2.tsx
+++ b/editor/src/components/canvas/canvas-strategies/strategies/grid-element-change-location-strategy.spec.browser2.tsx
@@ -698,7 +698,7 @@ export var storyboard = (
         }
       })
 
-      it('can move absolute element among grid cells', async () => {
+      it('can move absolute element among grid cells (within containing block)', async () => {
         const editor = await renderTestEditorWithCode(ProjectCode, 'await-first-dom-report')
 
         const child = editor.renderedDOM.getByTestId('child')
@@ -730,13 +730,56 @@ export var storyboard = (
         await mouseMoveToPoint(dragTarget, endPoint)
         await mouseUpAtPoint(dragTarget, endPoint)
 
+        {
+          const { top, left, gridColumn, gridRow } = child.style
+          expect({ top, left, gridColumn, gridRow }).toEqual({
+            gridColumn: '1',
+            gridRow: '1',
+            left: '252px',
+            top: '256px',
+          })
+        }
+      })
+
+      it('can move absolute element among grid cells', async () => {
+        const editor = await renderTestEditorWithCode(ProjectCode, 'await-first-dom-report')
+
+        const child = editor.renderedDOM.getByTestId('child')
+
+        {
+          const { top, left, gridColumn, gridRow } = child.style
+          expect({ top, left, gridColumn, gridRow }).toEqual({
+            gridColumn: '1',
+            gridRow: '1',
+            left: '12px',
+            top: '16px',
+          })
+        }
+
+        await selectComponentsForTest(editor, [EP.fromString('sb/scene/grid/child')])
+
+        const childBounds = child.getBoundingClientRect()
+        const childCenter = windowPoint({
+          x: Math.floor(childBounds.left + childBounds.width / 2),
+          y: Math.floor(childBounds.top + childBounds.height / 2),
+        })
+
+        const endPoint = offsetPoint(childCenter, windowPoint({ x: 300, y: 300 }))
+        const dragTarget = editor.renderedDOM.getByTestId(
+          GridCellTestId(EP.fromString('sb/scene/grid/child')),
+        )
+
+        await mouseDownAtPoint(dragTarget, childCenter)
+        await mouseMoveToPoint(dragTarget, endPoint)
+        await mouseUpAtPoint(dragTarget, endPoint)
+
         {
           const { top, left, gridColumn, gridRow } = child.style
           expect({ top, left, gridColumn, gridRow }).toEqual({
             gridColumn: '2',
             gridRow: '2',
-            left: '21.5px',
-            top: '32px',
+            left: '81.5px',
+            top: '92px',
           })
         }
       })
diff --git a/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.spec.browser2.tsx b/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.spec.browser2.tsx
index 389e0034888f..f4de8c072645 100644
--- a/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.spec.browser2.tsx
+++ b/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.spec.browser2.tsx
@@ -156,14 +156,14 @@ export var storyboard = (
       >
         <div
           style={{
+            gridColumn: 1,
+            gridRow: 1,
             backgroundColor: '#f0f',
             position: 'absolute',
             left: 300,
             top: 300,
             width: 79,
             height: 86,
-            gridColumn: 1,
-            gridRow: 1,
           }}
           data-uid='dragme'
           data-testid='dragme'
diff --git a/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.ts b/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.ts
index 775f8d306c7f..fe46c424ee44 100644
--- a/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.ts
+++ b/editor/src/components/canvas/canvas-strategies/strategies/grid-move-absolute.ts
@@ -8,12 +8,16 @@ import {
   type ElementInstanceMetadataMap,
   type GridContainerProperties,
 } from '../../../../core/shared/element-template'
-import type { CanvasVector } from '../../../../core/shared/math-utils'
+import type { CanvasRectangle, CanvasVector } from '../../../../core/shared/math-utils'
 import {
   canvasRectangle,
   canvasRectangleToLocalRectangle,
+  isNotNullFiniteRectangle,
   nullIfInfinity,
+  offsetPoint,
   offsetRect,
+  rectangleContainsRectangleInclusive,
+  rectContainsPoint,
   windowPoint,
   zeroCanvasRect,
   zeroRectIfNullOrInfinity,
@@ -42,6 +46,7 @@ import {
   getParentGridTemplatesFromChildMeasurements,
   gridMoveStrategiesExtraCommands,
 } from './grid-helpers'
+import type { NewGridElementProps } from './grid-change-element-location-strategy'
 import {
   getNewGridElementProps,
   runGridChangeElementLocation,
@@ -177,6 +182,57 @@ function getCommandsAndPatchForGridAbsoluteMove(
   }
 }
 
+export function getNewGridElementPropsCheckingOriginalGrid(
+  originalGridMetadata: ElementInstanceMetadata,
+  interactionData: DragInteractionData,
+  selectedElementMetadata: ElementInstanceMetadata,
+  gridCellGlobalFrames: GridCellGlobalFrames,
+  coordinateSystemBounds: CanvasRectangle,
+  newPathAfterReparent: ElementPath | null,
+): NewGridElementProps | null {
+  if (interactionData.drag == null) {
+    return null
+  }
+
+  // Identify the containing block position and size.
+  const originalContainingBlockRectangle = getGridRelativeContainingBlock(
+    originalGridMetadata,
+    selectedElementMetadata,
+    selectedElementMetadata.specialSizeMeasurements.elementGridProperties,
+  )
+
+  // Capture the original position of the grid child.
+  const originalCanvasFrame = selectedElementMetadata.globalFrame
+  if (!isNotNullFiniteRectangle(originalCanvasFrame)) {
+    return null
+  }
+
+  // Identify if the new position of the grid child is wholly inside the containing block's
+  // global frame.
+  const containingBlockGlobalFrame = offsetRect(
+    canvasRectangle(originalContainingBlockRectangle),
+    coordinateSystemBounds,
+  )
+  const gridChildNewGlobalFrame = offsetRect(originalCanvasFrame, interactionData.drag)
+  const insideOriginalContainingBlock = rectangleContainsRectangleInclusive(
+    containingBlockGlobalFrame,
+    gridChildNewGlobalFrame,
+  )
+
+  // If the element is inside the containing block,
+  // then don't attempt to move it.
+  if (insideOriginalContainingBlock) {
+    return null
+  }
+
+  return getNewGridElementProps(
+    interactionData,
+    selectedElementMetadata,
+    gridCellGlobalFrames,
+    newPathAfterReparent,
+  )
+}
+
 function runGridMoveAbsolute(
   jsxMetadata: ElementInstanceMetadataMap,
   interactionData: DragInteractionData,
@@ -260,18 +316,6 @@ function runGridMoveAbsolute(
     ]
   }
 
-  // The element may be moving to a different grid position, which is then used
-  // to calculate the potentially new containing block.
-  const newGridElementProps = getNewGridElementProps(
-    interactionData,
-    selectedElementMetadata,
-    gridCellGlobalFrames,
-    null,
-  )
-
-  const coordinateSystemBounds =
-    selectedElementMetadata.specialSizeMeasurements.immediateParentBounds ?? zeroCanvasRect
-
   // Get the metadata of the original grid.
   const originalGridPath = findOriginalGrid(
     jsxMetadata,
@@ -285,6 +329,23 @@ function runGridMoveAbsolute(
     return []
   }
 
+  const coordinateSystemBounds =
+    selectedElementMetadata.specialSizeMeasurements.immediateParentBounds
+  if (coordinateSystemBounds == null) {
+    return []
+  }
+
+  // The element may be moving to a different grid position, which is then used
+  // to calculate the potentially new containing block.
+  const newGridElementProps = getNewGridElementPropsCheckingOriginalGrid(
+    originalGrid,
+    interactionData,
+    selectedElementMetadata,
+    gridCellGlobalFrames,
+    coordinateSystemBounds,
+    null,
+  )
+
   // Get the containing block of the grid child.
   const containingBlockRectangle = getGridRelativeContainingBlock(
     originalGrid,
@@ -302,14 +363,16 @@ function runGridMoveAbsolute(
 
   // otherwise, return a change location + absolute adjustment
   return [
-    ...runGridChangeElementLocation(
-      jsxMetadata,
-      interactionData,
-      selectedElementMetadata,
-      gridCellGlobalFrames,
-      gridTemplate,
-      null,
-    ),
+    ...(newGridElementProps == null
+      ? []
+      : runGridChangeElementLocation(
+          jsxMetadata,
+          interactionData,
+          selectedElementMetadata,
+          gridCellGlobalFrames,
+          gridTemplate,
+          null,
+        )),
     ...getMoveCommandsForDrag(
       containingRect,
       element,
diff --git a/editor/src/core/shared/math-utils.ts b/editor/src/core/shared/math-utils.ts
index a50258330f00..14f9d6263c7c 100644
--- a/editor/src/core/shared/math-utils.ts
+++ b/editor/src/core/shared/math-utils.ts
@@ -322,6 +322,18 @@ export function rectangleContainsRectangle(
   )
 }
 
+export function rectangleContainsRectangleInclusive(
+  outer: CanvasRectangle,
+  inner: CanvasRectangle,
+): boolean {
+  return (
+    outer.x <= inner.x &&
+    inner.x + inner.width <= outer.x + outer.width &&
+    outer.y <= inner.y &&
+    inner.y + inner.height <= outer.y + outer.height
+  )
+}
+
 export function rectangleFromTLBR(
   topLeft: CanvasPoint,
   bottomRight: CanvasPoint,