diff --git a/CHANGELOG.md b/CHANGELOG.md
index f7df560..591a71d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,10 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [Unreleased (0.12.2)]
+### Fixed
+- Fixed template instance size and position overrides in `ObjectData::shape`. (#309)
+
 ## [0.12.1]
 ### Changed
 - Improved documentation on `Map::layers` and `Map::get_layer`. (#306)
diff --git a/assets/tiled_object_template.tmx b/assets/tiled_object_template.tmx
index 940809e..b6b8416 100644
--- a/assets/tiled_object_template.tmx
+++ b/assets/tiled_object_template.tmx
@@ -1,5 +1,5 @@
 <?xml version="1.0" encoding="UTF-8"?>
-<map version="1.4" tiledversion="1.4.2" orientation="orthogonal" renderorder="right-down" width="3" height="3" tilewidth="32" tileheight="32" infinite="0" nextlayerid="3" nextobjectid="3">
+<map version="1.11" tiledversion="1.11.0" orientation="orthogonal" renderorder="right-down" width="3" height="3" tilewidth="32" tileheight="32" infinite="0" nextlayerid="3" nextobjectid="4">
  <tileset firstgid="1" source="tilesheet.tsx"/>
  <layer id="1" name="Tile Layer 1" width="3" height="3">
   <data encoding="csv">
@@ -14,5 +14,6 @@
    </properties>
   </object>
   <object id="2" gid="45" x="0" y="32" width="32" height="32"/>
+  <object id="3" template="tiled_object_template.tx" x="0" y="64" width="64" height="32"/>
  </objectgroup>
 </map>
diff --git a/src/objects.rs b/src/objects.rs
index 05d0b98..dcf130f 100644
--- a/src/objects.rs
+++ b/src/objects.rs
@@ -229,7 +229,7 @@ impl ObjectData {
         reader: &mut impl ResourceReader,
         cache: &mut impl ResourceCache,
     ) -> Result<ObjectData> {
-        let (id, tile, mut n, mut t, c, w, h, mut v, mut r, template, x, y) = get_attrs!(
+        let (id, tile, mut n, mut t, c, mut w, mut h, mut v, mut r, template, x, y) = get_attrs!(
             for v in attrs {
                 Some("id") => id ?= v.parse(),
                 Some("gid") => tile ?= v.parse::<u32>(),
@@ -275,6 +275,15 @@ impl ObjectData {
                 if let Some(templ_tile) = &obj.tile {
                     tile.get_or_insert_with(|| templ_tile.clone());
                 }
+                match &obj.shape {
+                    ObjectShape::Rect { width, height }
+                    | ObjectShape::Ellipse { width, height }
+                    | ObjectShape::Text { width, height, .. } => {
+                        w.get_or_insert(*width);
+                        h.get_or_insert(*height);
+                    }
+                    _ => {}
+                }
                 Ok(template)
             })
             .transpose()?;
@@ -319,11 +328,51 @@ impl ObjectData {
             },
         });
 
-        // Possibly copy properties from the template into the object
-        // Any that already exist in the object's map don't get copied over
         if let Some(templ) = template {
-            shape.get_or_insert(templ.object.shape.clone());
+            shape.get_or_insert_with(|| {
+                // Inherit the shape from the template but use the size and
+                // position from the object where relevant
+                match &templ.object.shape {
+                    ObjectShape::Rect { .. } => ObjectShape::Rect { width, height },
+                    ObjectShape::Ellipse { .. } => ObjectShape::Ellipse { width, height },
+                    ObjectShape::Point(_, _) => ObjectShape::Point(x, y),
+                    ObjectShape::Text {
+                        font_family,
+                        pixel_size,
+                        wrap,
+                        color,
+                        bold,
+                        italic,
+                        underline,
+                        strikeout,
+                        kerning,
+                        halign,
+                        valign,
+                        text,
+                        width: _,
+                        height: _,
+                    } => ObjectShape::Text {
+                        font_family: font_family.clone(),
+                        pixel_size: pixel_size.clone(),
+                        wrap: wrap.clone(),
+                        color: color.clone(),
+                        bold: bold.clone(),
+                        italic: italic.clone(),
+                        underline: underline.clone(),
+                        strikeout: strikeout.clone(),
+                        kerning: kerning.clone(),
+                        halign: halign.clone(),
+                        valign: valign.clone(),
+                        text: text.clone(),
+                        width,
+                        height,
+                    },
+                    shape => shape.clone(),
+                }
+            });
 
+            // Possibly copy properties from the template into the object
+            // Any that already exist in the object's map don't get copied over
             for (k, v) in &templ.object.properties {
                 if !properties.contains_key(k) {
                     properties.insert(k.clone(), v.clone());
diff --git a/tests/lib.rs b/tests/lib.rs
index 4b41ccb..f190049 100644
--- a/tests/lib.rs
+++ b/tests/lib.rs
@@ -439,6 +439,7 @@ fn test_object_template_property() {
     let object_layer = r.get_layer(1).unwrap().as_object_layer().unwrap();
     let object = object_layer.get_object(0).unwrap(); // The templated object
     let object_nt = object_layer.get_object(1).unwrap(); // The non-templated object
+    let object_resized = object_layer.get_object(2).unwrap(); // The resized templated object
 
     // Test core properties
     assert_eq!(
@@ -450,6 +451,13 @@ fn test_object_template_property() {
     );
     assert_eq!(object.x, 32.0);
     assert_eq!(object.y, 32.0);
+    assert_eq!(
+        object_resized.shape,
+        ObjectShape::Rect {
+            width: 64.0,
+            height: 32.0,
+        }
+    );
 
     // Test properties are copied over
     assert_eq!(