diff --git a/src/core/constraints.c b/src/core/constraints.c
index 89e70f3a8..a66fe6e20 100644
--- a/src/core/constraints.c
+++ b/src/core/constraints.c
@@ -490,8 +490,25 @@ place_window_if_needed(MetaWindow     *window,
 
       orig_rect = info->orig;
 
-      meta_window_place (window, orig_rect.x, orig_rect.y,
-                         &placed_rect.x, &placed_rect.y);
+      if (window->placement_rule)
+        {
+          MetaWindow *parent = meta_window_get_transient_for (window);
+          MetaRectangle parent_rect;
+          int rel_x, rel_y;
+
+          meta_window_process_placement (window,
+                                         window->placement_rule,
+                                         &rel_x, &rel_y);
+          meta_window_get_frame_rect (parent, &parent_rect);
+
+          placed_rect.x = parent_rect.x + rel_x;
+          placed_rect.y = parent_rect.y + rel_y;
+        }
+      else
+        {
+          meta_window_place (window, orig_rect.x, orig_rect.y,
+                             &placed_rect.x, &placed_rect.y);
+        }
       did_placement = TRUE;
 
       /* placing the window may have changed the monitor.  Find the
@@ -725,12 +742,16 @@ try_flip_window_position (MetaWindow                       *window,
                           ConstraintInfo                   *info,
                           MetaPlacementRule                *placement_rule,
                           MetaPlacementConstraintAdjustment constraint_adjustment,
+                          int                               parent_x,
+                          int                               parent_y,
                           MetaRectangle                    *rect,
                           MetaRectangle                    *intersection)
 {
   MetaPlacementRule flipped_rule = *placement_rule;;
   MetaRectangle flipped_rect;
   MetaRectangle flipped_intersection;
+  int flipped_rel_x;
+  int flipped_rel_y;
 
   switch (constraint_adjustment)
     {
@@ -747,7 +768,9 @@ try_flip_window_position (MetaWindow                       *window,
 
   flipped_rect = info->current;
   meta_window_process_placement (window, &flipped_rule,
-                                 &flipped_rect.x, &flipped_rect.y);
+                                 &flipped_rel_x, &flipped_rel_y);
+  flipped_rect.x = parent_x + flipped_rel_x;
+  flipped_rect.y = parent_y + flipped_rel_y;
   meta_rectangle_intersect (&flipped_rect, &info->work_area_monitor,
                             &flipped_intersection);
 
@@ -852,7 +875,10 @@ constrain_custom_rule (MetaWindow         *window,
     {
       try_flip_window_position (window, info, &current_rule,
                                 META_PLACEMENT_CONSTRAINT_ADJUSTMENT_FLIP_X,
-                                &info->current, &intersection);
+                                parent_rect.x,
+                                parent_rect.y,
+                                &info->current,
+                                &intersection);
     }
   if (info->current.height != intersection.height &&
       (current_rule.constraint_adjustment &
@@ -860,7 +886,10 @@ constrain_custom_rule (MetaWindow         *window,
     {
       try_flip_window_position (window, info, &current_rule,
                                 META_PLACEMENT_CONSTRAINT_ADJUSTMENT_FLIP_Y,
-                                &info->current, &intersection);
+                                parent_rect.x,
+                                parent_rect.y,
+                                &info->current,
+                                &intersection);
     }
 
   meta_rectangle_intersect (&info->current, &info->work_area_monitor,
diff --git a/src/core/place.c b/src/core/place.c
index 7b4a6a7b3..6d0a159a3 100644
--- a/src/core/place.c
+++ b/src/core/place.c
@@ -610,53 +610,52 @@ find_first_fit (MetaWindow         *window,
 void
 meta_window_process_placement (MetaWindow        *window,
                                MetaPlacementRule *placement_rule,
-                               int               *x,
-                               int               *y)
+                               int               *rel_x,
+                               int               *rel_y)
 {
-  MetaWindow *parent = meta_window_get_transient_for (window);
-  MetaRectangle parent_rect;
   MetaRectangle anchor_rect;
   int window_width, window_height;
+  int x, y;
 
   window_width = placement_rule->width;
   window_height = placement_rule->height;
-  meta_window_get_frame_rect (parent, &parent_rect);
 
   anchor_rect = placement_rule->anchor_rect;
-  anchor_rect.x += parent_rect.x;
-  anchor_rect.y += parent_rect.y;
 
   /* Place at anchor point. */
   if (placement_rule->anchor & META_PLACEMENT_ANCHOR_LEFT)
-    *x = anchor_rect.x;
+    x = anchor_rect.x;
   else if (placement_rule->anchor & META_PLACEMENT_ANCHOR_RIGHT)
-    *x = anchor_rect.x + anchor_rect.width;
+    x = anchor_rect.x + anchor_rect.width;
   else
-    *x = anchor_rect.x + (anchor_rect.width / 2);
+    x = anchor_rect.x + (anchor_rect.width / 2);
   if (placement_rule->anchor & META_PLACEMENT_ANCHOR_TOP)
-    *y = anchor_rect.y;
+    y = anchor_rect.y;
   else if (placement_rule->anchor & META_PLACEMENT_ANCHOR_BOTTOM)
-    *y = anchor_rect.y + anchor_rect.height;
+    y = anchor_rect.y + anchor_rect.height;
   else
-    *y = anchor_rect.y + (anchor_rect.height / 2);
+    y = anchor_rect.y + (anchor_rect.height / 2);
 
   /* Shift according to gravity. */
   if (placement_rule->gravity & META_PLACEMENT_GRAVITY_LEFT)
-    *x -= window_width;
+    x -= window_width;
   else if (placement_rule->gravity & META_PLACEMENT_GRAVITY_RIGHT)
-    *x = *x;
+    x = x;
   else
-    *x -= window_width / 2;
+    x -= window_width / 2;
   if (placement_rule->gravity & META_PLACEMENT_GRAVITY_TOP)
-    *y -= window_height;
+    y -= window_height;
   else if (placement_rule->gravity & META_PLACEMENT_GRAVITY_BOTTOM)
-    *y = *y;
+    y = y;
   else
-    *y -= window_height / 2;
+    y -= window_height / 2;
 
   /* Offset according to offset. */
-  *x += placement_rule->offset_x;
-  *y += placement_rule->offset_y;
+  x += placement_rule->offset_x;
+  y += placement_rule->offset_y;
+
+  *rel_x = x;
+  *rel_y = y;
 }
 
 void
@@ -672,15 +671,7 @@ meta_window_place (MetaWindow        *window,
 
   meta_topic (META_DEBUG_PLACEMENT, "Placing window %s\n", window->desc);
 
-  /* If the window has a custom placement rule, always run only that. */
-  if (window->placement_rule)
-    {
-      meta_window_process_placement (window,
-                                     window->placement_rule,
-                                     &x, &y);
-
-      goto done;
-    }
+  g_return_if_fail (!window->placement_rule);
 
   switch (window->type)
     {
diff --git a/src/core/place.h b/src/core/place.h
index 2c0fe8298..2e2c81141 100644
--- a/src/core/place.h
+++ b/src/core/place.h
@@ -27,8 +27,8 @@
 
 void meta_window_process_placement (MetaWindow        *window,
                                     MetaPlacementRule *placement_rule,
-                                    int               *x,
-                                    int               *y);
+                                    int               *rel_x,
+                                    int               *rel_y);
 
 void meta_window_place (MetaWindow *window,
                         int         x,