diff --git a/editor/src/messages/tool/common_functionality/transformation_cage.rs b/editor/src/messages/tool/common_functionality/transformation_cage.rs
index dba65b4080..cdbbf723d4 100644
--- a/editor/src/messages/tool/common_functionality/transformation_cage.rs
+++ b/editor/src/messages/tool/common_functionality/transformation_cage.rs
@@ -303,15 +303,19 @@ impl SelectedEdges {
 	}
 }
 
-/// Aligns the mouse position to the closest axis
-pub fn axis_align_drag(axis_align: bool, axis: Axis, position: DVec2, start: DVec2) -> DVec2 {
+/// Aligns the mouse position to the closest axis, accounting for canvas rotation.
+/// `canvas_rotation` is the angle in radians by which the canvas is tilted.
+pub fn axis_align_drag(axis_align: bool, axis: Axis, position: DVec2, start: DVec2, canvas_rotation: f64) -> DVec2 {
 	if axis_align {
 		let mouse_position = position - start;
 		let snap_resolution = SELECTION_DRAG_ANGLE.to_radians();
-		let angle = -mouse_position.angle_to(DVec2::X);
+		// Subtract canvas rotation to work in canvas-local space
+		let angle = -mouse_position.angle_to(DVec2::X) - canvas_rotation;
 		let snapped_angle = (angle / snap_resolution).round() * snap_resolution;
-		let axis_vector = DVec2::from_angle(snapped_angle);
-		if snapped_angle.is_finite() {
+		// Add canvas rotation back to get the final screen-space angle
+		let final_angle = snapped_angle + canvas_rotation;
+		let axis_vector = DVec2::from_angle(final_angle);
+		if final_angle.is_finite() {
 			start + axis_vector * mouse_position.dot(axis_vector).abs()
 		} else {
 			start
@@ -327,8 +331,10 @@ pub fn axis_align_drag(axis_align: bool, axis: Axis, position: DVec2, start: DVe
 
 /// Snaps a dragging event from the artboard or select tool
 pub fn snap_drag(start: DVec2, current: DVec2, snap_to_axis: bool, axis: Axis, snap_data: SnapData, snap_manager: &mut SnapManager, candidates: &[SnapCandidatePoint]) -> DVec2 {
-	let mouse_position = axis_align_drag(snap_to_axis, axis, snap_data.input.mouse.position, start);
 	let document = snap_data.document;
+	// Extract canvas rotation from the document_to_viewport transform
+	let canvas_rotation = document.metadata().document_to_viewport.matrix2.y_axis.to_angle() - std::f64::consts::FRAC_PI_2;
+	let mouse_position = axis_align_drag(snap_to_axis, axis, snap_data.input.mouse.position, start, canvas_rotation);
 	let total_mouse_delta_document = document.metadata().document_to_viewport.inverse().transform_vector2(mouse_position - start);
 	let mouse_delta_document = document.metadata().document_to_viewport.inverse().transform_vector2(mouse_position - current);
 	let mut offset = mouse_delta_document;
diff --git a/editor/src/messages/tool/tool_messages/select_tool.rs b/editor/src/messages/tool/tool_messages/select_tool.rs
index e5738e7770..08fb5e2b81 100644
--- a/editor/src/messages/tool/tool_messages/select_tool.rs
+++ b/editor/src/messages/tool/tool_messages/select_tool.rs
@@ -402,6 +402,8 @@ struct SelectToolData {
 	snap_candidates: Vec<SnapCandidatePoint>,
 	auto_panning: AutoPanning,
 	drag_start_center: ViewportPosition,
+	/// Drag start position in document coordinates, used for axis-aligned snapping that follows canvas pan/tilt
+	drag_start_document: DVec2,
 }
 
 impl SelectToolData {
@@ -911,12 +913,16 @@ impl Fsm for SelectToolFsmState {
 					}
 
 					if axis_state.is_none_or(|(axis, _)| !axis.is_constraint()) && tool_data.axis_align {
-						let mouse_position = mouse_position - tool_data.drag_start;
+						// Convert document-space origin to current viewport (follows pan/tilt)
+						let viewport_origin = document.metadata().document_to_viewport.transform_point2(tool_data.drag_start_document);
+						let mouse_position = mouse_position - viewport_origin;
 						let snap_resolution = SELECTION_DRAG_ANGLE.to_radians();
-						let angle = -mouse_position.angle_to(DVec2::X);
-						let snapped_angle = (angle / snap_resolution).round() * snap_resolution;
+						// Account for canvas rotation
+						let canvas_rotation = document.metadata().document_to_viewport.matrix2.y_axis.to_angle() - std::f64::consts::FRAC_PI_2;
+						let angle = -mouse_position.angle_to(DVec2::X) - canvas_rotation;
+						let snapped_angle = (angle / snap_resolution).round() * snap_resolution + canvas_rotation;
 
-						let origin = tool_data.drag_start_center;
+						let origin = viewport_origin;
 						let viewport_diagonal = viewport.size().into_dvec2().length();
 
 						let edge = DVec2::from_angle(snapped_angle).normalize_or(DVec2::X);
@@ -1037,6 +1043,7 @@ impl Fsm for SelectToolFsmState {
 				let (resize, rotate, skew) = transforming_transform_cage(document, &mut tool_data.bounding_box_manager, input, responses, &mut tool_data.layers_dragging, Some(position));
 
 				tool_data.drag_start_center = position;
+				tool_data.drag_start_document = document.metadata().document_to_viewport.inverse().transform_point2(input.mouse.position);
 
 				// If the user is dragging the bounding box bounds, go into ResizingBounds mode.
 				// If the user is dragging the rotate trigger, go into RotatingBounds mode.
@@ -1179,7 +1186,9 @@ impl Fsm for SelectToolFsmState {
 				let ignore = tool_data.non_duplicated_layers.as_ref().filter(|_| !layers_exist).unwrap_or(&tool_data.layers_dragging);
 
 				let snap_data = SnapData::ignore(document, input, viewport, ignore);
-				let (start, current) = (tool_data.drag_start, tool_data.drag_current);
+				// Convert document-space origin to current viewport (follows pan/tilt)
+				let start = document.metadata().document_to_viewport.transform_point2(tool_data.drag_start_document);
+				let current = tool_data.drag_current;
 				let e0 = tool_data
 					.bounding_box_manager
 					.as_ref()