diff --git a/crates/bevy_text/src/text2d.rs b/crates/bevy_text/src/text2d.rs
index 062532e377f88..41979af4da090 100644
--- a/crates/bevy_text/src/text2d.rs
+++ b/crates/bevy_text/src/text2d.rs
@@ -138,6 +138,7 @@ pub fn extract_text2d_sprite(
             &ViewVisibility,
             &ComputedTextBlock,
             &TextLayoutInfo,
+            &TextBounds,
             &Anchor,
             &GlobalTransform,
         )>,
@@ -156,6 +157,7 @@ pub fn extract_text2d_sprite(
         view_visibility,
         computed_block,
         text_layout_info,
+        text_bounds,
         anchor,
         global_transform,
     ) in text2d_query.iter()
@@ -164,11 +166,14 @@ pub fn extract_text2d_sprite(
             continue;
         }
 
-        let text_anchor = -(anchor.as_vec() + 0.5);
-        let alignment_translation = text_layout_info.size * text_anchor;
-        let transform = *global_transform
-            * GlobalTransform::from_translation(alignment_translation.extend(0.))
-            * scaling;
+        let size = Vec2::new(
+            text_bounds.width.unwrap_or(text_layout_info.size.x),
+            text_bounds.height.unwrap_or(text_layout_info.size.y),
+        );
+        let bottom_left =
+            -(anchor.as_vec() + 0.5) * size + (size.y - text_layout_info.size.y) * Vec2::Y;
+        let transform =
+            *global_transform * GlobalTransform::from_translation(bottom_left.extend(0.)) * scaling;
         let mut color = LinearRgba::WHITE;
         let mut current_span = usize::MAX;
         for PositionedGlyph {
@@ -319,16 +324,27 @@ pub fn scale_value(value: f32, factor: f32) -> f32 {
 pub fn calculate_bounds_text2d(
     mut commands: Commands,
     mut text_to_update_aabb: Query<
-        (Entity, &TextLayoutInfo, &Anchor, Option<&mut Aabb>),
+        (
+            Entity,
+            &TextLayoutInfo,
+            &Anchor,
+            &TextBounds,
+            Option<&mut Aabb>,
+        ),
         (Changed<TextLayoutInfo>, Without<NoFrustumCulling>),
     >,
 ) {
-    for (entity, layout_info, anchor, aabb) in &mut text_to_update_aabb {
-        // `Anchor::as_vec` gives us an offset relative to the text2d bounds, by negating it and scaling
-        // by the logical size we compensate the transform offset in local space to get the center.
-        let center = (-anchor.as_vec() * layout_info.size).extend(0.0).into();
-        // Distance in local space from the center to the x and y limits of the text2d bounds.
-        let half_extents = (layout_info.size / 2.0).extend(0.0).into();
+    for (entity, layout_info, anchor, text_bounds, aabb) in &mut text_to_update_aabb {
+        let size = Vec2::new(
+            text_bounds.width.unwrap_or(layout_info.size.x),
+            text_bounds.height.unwrap_or(layout_info.size.y),
+        );
+        let center = (-anchor.as_vec() * size + (size.y - layout_info.size.y) * Vec2::Y)
+            .extend(0.)
+            .into();
+
+        let half_extents = (0.5 * layout_info.size).extend(0.0).into();
+
         if let Some(mut aabb) = aabb {
             *aabb = Aabb {
                 center,
diff --git a/examples/2d/text2d.rs b/examples/2d/text2d.rs
index efe57c530cd21..2bd748a929213 100644
--- a/examples/2d/text2d.rs
+++ b/examples/2d/text2d.rs
@@ -119,30 +119,40 @@ fn setup(mut commands: Commands, asset_server: Res<AssetServer>) {
         Transform::from_translation(Vec3::new(-400.0, -250.0, 0.0)),
     ));
 
-    for (text_anchor, color) in [
-        (Anchor::TopLeft, Color::Srgba(RED)),
-        (Anchor::TopRight, Color::Srgba(LIME)),
-        (Anchor::BottomRight, Color::Srgba(BLUE)),
-        (Anchor::BottomLeft, Color::Srgba(YELLOW)),
-    ] {
-        commands
-            .spawn((
-                Text2d::new(" Anchor".to_string()),
-                slightly_smaller_text_font.clone(),
-                Transform::from_translation(250. * Vec3::Y),
-                text_anchor,
-            ))
-            .with_child((
-                TextSpan("::".to_string()),
-                slightly_smaller_text_font.clone(),
-                TextColor(LIGHT_GREY.into()),
-            ))
-            .with_child((
-                TextSpan(format!("{text_anchor:?} ")),
-                slightly_smaller_text_font.clone(),
-                TextColor(color),
-            ));
-    }
+    commands
+        .spawn((
+            Sprite {
+                color: Color::Srgba(LIGHT_CYAN),
+                custom_size: Some(Vec2::new(10., 10.)),
+                ..Default::default()
+            },
+            Transform::from_translation(250. * Vec3::Y),
+        ))
+        .with_children(|commands| {
+            for (text_anchor, color) in [
+                (Anchor::TopLeft, Color::Srgba(RED)),
+                (Anchor::TopRight, Color::Srgba(LIME)),
+                (Anchor::BottomRight, Color::Srgba(BLUE)),
+                (Anchor::BottomLeft, Color::Srgba(YELLOW)),
+            ] {
+                commands
+                    .spawn((
+                        Text2d::new(" Anchor".to_string()),
+                        slightly_smaller_text_font.clone(),
+                        text_anchor,
+                    ))
+                    .with_child((
+                        TextSpan("::".to_string()),
+                        slightly_smaller_text_font.clone(),
+                        TextColor(LIGHT_GREY.into()),
+                    ))
+                    .with_child((
+                        TextSpan(format!("{text_anchor:?} ")),
+                        slightly_smaller_text_font.clone(),
+                        TextColor(color),
+                    ));
+            }
+        });
 }
 
 fn animate_translation(