diff --git a/src/tiledimage.js b/src/tiledimage.js
index a925104c..248f0ece 100644
--- a/src/tiledimage.js
+++ b/src/tiledimage.js
@@ -570,32 +570,50 @@ $.extend($.TiledImage.prototype, $.EventSource.prototype, /** @lends OpenSeadrag
     fitBounds: function(bounds, anchor, immediately) {
         anchor = anchor || $.Placement.CENTER;
         var anchorProperties = $.Placement.properties[anchor];
-        if (bounds.getAspectRatio() > this.contentAspectX) {
+        var aspectRatio = this.contentAspectX;
+        var xOffset = 0;
+        var yOffset = 0;
+        var displayedWidthRatio = 1;
+        var displayedHeightRatio = 1;
+        if (this._clip) {
+            aspectRatio = this._clip.getAspectRatio();
+            displayedWidthRatio = this._clip.width / this.source.dimensions.x;
+            displayedHeightRatio = this._clip.height / this.source.dimensions.y;
+            if (bounds.getAspectRatio() > aspectRatio) {
+                xOffset = this._clip.x / this._clip.height * bounds.height;
+                yOffset = this._clip.y / this._clip.height * bounds.height;
+            } else {
+                xOffset = this._clip.x / this._clip.width * bounds.width;
+                yOffset = this._clip.y / this._clip.width * bounds.width;
+            }
+        }
+
+        if (bounds.getAspectRatio() > aspectRatio) {
             // We will have margins on the X axis
-            var targetWidth = bounds.height * this.contentAspectX;
+            var height = bounds.height / displayedHeightRatio;
             var marginLeft = 0;
             if (anchorProperties.isHorizontallyCentered) {
-                marginLeft = (bounds.width - targetWidth) / 2;
+                marginLeft = (bounds.width - bounds.height * aspectRatio) / 2;
             } else if (anchorProperties.isRight) {
-                marginLeft = bounds.width - targetWidth;
+                marginLeft = bounds.width - bounds.height * aspectRatio;
             }
             this.setPosition(
-                new $.Point(bounds.x + marginLeft, bounds.y),
+                new $.Point(bounds.x - xOffset + marginLeft, bounds.y - yOffset),
                 immediately);
-            this.setHeight(bounds.height, immediately);
+            this.setHeight(height, immediately);
         } else {
             // We will have margins on the Y axis
-            var targetHeight = bounds.width / this.contentAspectX;
+            var width = bounds.width / displayedWidthRatio;
             var marginTop = 0;
             if (anchorProperties.isVerticallyCentered) {
-                marginTop = (bounds.height - targetHeight) / 2;
+                marginTop = (bounds.height - bounds.width / aspectRatio) / 2;
             } else if (anchorProperties.isBottom) {
-                marginTop = bounds.height - targetHeight;
+                marginTop = bounds.height - bounds.width / aspectRatio;
             }
             this.setPosition(
-                new $.Point(bounds.x, bounds.y + marginTop),
+                new $.Point(bounds.x - xOffset, bounds.y - yOffset + marginTop),
                 immediately);
-            this.setWidth(bounds.width, immediately);
+            this.setWidth(width, immediately);
         }
     },
 
diff --git a/test/modules/tiledimage.js b/test/modules/tiledimage.js
index 76b55541..f281d076 100644
--- a/test/modules/tiledimage.js
+++ b/test/modules/tiledimage.js
@@ -347,4 +347,48 @@
                 fitBoundsPlacement: OpenSeadragon.Placement.BOTTOM_RIGHT
             }]);
     });
+
+    asyncTest('fitBounds with clipping', function() {
+
+        function assertRectEquals(actual, expected, message) {
+            ok(actual.equals(expected), message + ' should be ' +
+                expected.toString() + ', found ' + actual.toString());
+        }
+
+        viewer.addHandler('open', function openHandler() {
+            viewer.removeHandler('open', openHandler);
+
+            var squareImage = viewer.world.getItemAt(0);
+            var actualBounds = squareImage.getBounds(true);
+            var expectedBounds = new OpenSeadragon.Rect(-1, -1, 2, 2);
+            assertRectEquals(actualBounds, expectedBounds, 'Square image bounds');
+
+            var tallImage = viewer.world.getItemAt(1);
+            actualBounds = tallImage.getBounds(true);
+            expectedBounds = new OpenSeadragon.Rect(1, 1, 2, 8);
+            assertRectEquals(actualBounds, expectedBounds, 'Tall image bounds');
+
+            var wideImage = viewer.world.getItemAt(2);
+            actualBounds = wideImage.getBounds(true);
+            expectedBounds = new OpenSeadragon.Rect(1, 1, 16, 4);
+            assertRectEquals(actualBounds, expectedBounds, 'Wide image bounds');
+            start();
+        });
+
+        viewer.open([{
+                tileSource: '/test/data/testpattern.dzi',
+                clip: new OpenSeadragon.Rect(500, 500, 500, 500),
+                fitBounds: new OpenSeadragon.Rect(0, 0, 1, 1)
+            }, {
+                tileSource: '/test/data/tall.dzi',
+                clip: new OpenSeadragon.Rect(0, 0, 250, 100),
+                fitBounds: new OpenSeadragon.Rect(1, 1, 1, 2),
+                fitBoundsPlacement: OpenSeadragon.Placement.TOP
+            }, {
+                tileSource: '/test/data/wide.dzi',
+                clip: new OpenSeadragon.Rect(0, 0, 100, 250),
+                fitBounds: new OpenSeadragon.Rect(1, 1, 1, 2),
+                fitBoundsPlacement: OpenSeadragon.Placement.TOP_LEFT
+            }]);
+    });
 })();