diff --git a/src/ImageSharp/Processing/Transforms/Transform.cs b/src/ImageSharp/Processing/Transforms/Transform.cs
index 87c7306b81..496e57defc 100644
--- a/src/ImageSharp/Processing/Transforms/Transform.cs
+++ b/src/ImageSharp/Processing/Transforms/Transform.cs
@@ -35,7 +35,7 @@ namespace SixLabors.ImageSharp
         /// <returns>The <see cref="Image{TPixel}"/></returns>
         public static IImageProcessingContext<TPixel> Transform<TPixel>(this IImageProcessingContext<TPixel> source, Matrix3x2 matrix, IResampler sampler)
             where TPixel : struct, IPixel<TPixel>
-            => Transform(source, matrix, sampler, Rectangle.Empty);
+            => Transform(source, matrix, sampler, Size.Empty);
 
         /// <summary>
         /// Transforms an image by the given matrix using the specified sampling algorithm.
@@ -44,17 +44,18 @@ namespace SixLabors.ImageSharp
         /// <param name="source">The image to transform.</param>
         /// <param name="matrix">The transformation matrix.</param>
         /// <param name="sampler">The <see cref="IResampler"/> to perform the resampling.</param>
-        /// <param name="rectangle">The rectangle to constrain the transformed image to.</param>
+        /// <param name="sourceRectangle">The rectangle defining the source pixel area to transform. 'sourceRectangle.Location' becomes the origo of the transformed image.</param>
         /// <returns>The <see cref="Image{TPixel}"/></returns>
         public static IImageProcessingContext<TPixel> Transform<TPixel>(
             this IImageProcessingContext<TPixel> source,
             Matrix3x2 matrix,
             IResampler sampler,
-            Rectangle rectangle)
+            Rectangle sourceRectangle)
             where TPixel : struct, IPixel<TPixel>
         {
-            // TODO: Fixme!
-            return source.ApplyProcessor(new AffineTransformProcessor<TPixel>(matrix, sampler, rectangle.Size));
+            var t = Matrix3x2.CreateTranslation(-sourceRectangle.Location);
+            Matrix3x2 combinedMatrix = t * matrix;
+            return source.ApplyProcessor(new AffineTransformProcessor<TPixel>(combinedMatrix, sampler, sourceRectangle.Size));
         }
 
         /// <summary>
diff --git a/tests/ImageSharp.Tests/Processing/Transforms/AffineTransformTests.cs b/tests/ImageSharp.Tests/Processing/Transforms/AffineTransformTests.cs
index f6ef365e54..ace6cb70d6 100644
--- a/tests/ImageSharp.Tests/Processing/Transforms/AffineTransformTests.cs
+++ b/tests/ImageSharp.Tests/Processing/Transforms/AffineTransformTests.cs
@@ -143,40 +143,66 @@ namespace SixLabors.ImageSharp.Tests.Processing.Transforms
                     { 0, 0, 5, 10 },
                     { 0, 0, 10, 5 },
                     { 5, 0, 5, 10 },
-                    {-5,-5, 15, 15 }
+                    {-5,-5, 20, 20 }
                 };
 
+        /// <summary>
+        /// Testing transforms using custom source rectangles:
+        /// https://github.com/SixLabors/ImageSharp/pull/386#issuecomment-357104963
+        /// </summary>
+        [Theory]
+        [WithTestPatternImages(96, 48, PixelTypes.Rgba32)]
+        public void Transform_FromSourceRectangle1<TPixel>(TestImageProvider<TPixel> provider)
+            where TPixel : struct, IPixel<TPixel>
+        {
+            var rectangle = new Rectangle(48, 0, 96, 36);
+
+            using (Image<TPixel> image = provider.GetImage())
+            {
+                var m = Matrix3x2.CreateScale(2.0F, 1.5F);
+                
+                image.Mutate(i => i.Transform(m, KnownResamplers.Spline, rectangle));
+
+                image.DebugSave(provider);
+                image.CompareToReferenceOutput(provider);
+            }
+        }
+
         [Theory]
-        [WithSolidFilledImages(nameof(Transform_IntoRectangle_Data), 10, 10, nameof(Rgba32.Red), PixelTypes.Rgba32)]
-        public void Transform_IntoRectangle<TPixel>(TestImageProvider<TPixel> provider, int x0, int y0, int w, int h)
+        [WithTestPatternImages(96, 48, PixelTypes.Rgba32)]
+        public void Transform_FromSourceRectangle2<TPixel>(TestImageProvider<TPixel> provider)
             where TPixel : struct, IPixel<TPixel>
         {
-            var rectangle = new Rectangle(x0, y0, w, h);
+            var rectangle = new Rectangle(0, 24, 48, 48);
 
             using (Image<TPixel> image = provider.GetImage())
             {
-                Matrix3x2 m = this.MakeManuallyCenteredMatrix(45, 0.8f, image);
+                var m = Matrix3x2.CreateScale(1.0F, 2.0F);
 
                 image.Mutate(i => i.Transform(m, KnownResamplers.Spline, rectangle));
-                string testDetails = $"({x0},{y0}-W{w},H{h})";
-                image.DebugSave(provider, testDetails);
+
+                image.DebugSave(provider);
+                image.CompareToReferenceOutput(provider);
             }
         }
 
         [Theory]
-        [WithTestPatternImages(nameof(ResamplerNames), 100, 200, PixelTypes.Rgba32)]
+        [WithTestPatternImages(nameof(ResamplerNames), 150, 150, PixelTypes.Rgba32)]
         public void Transform_WithSampler<TPixel>(TestImageProvider<TPixel> provider, string resamplerName)
             where TPixel : struct, IPixel<TPixel>
         {
             IResampler sampler = GetResampler(resamplerName);
             using (Image<TPixel> image = provider.GetImage())
             {
-                Matrix3x2 rotate = Matrix3x2Extensions.CreateRotationDegrees(50);
-                Matrix3x2 scale = Matrix3x2Extensions.CreateScale(new SizeF(.5F, .5F));
-                var translate = Matrix3x2.CreateTranslation(75, 0);
-                
-                image.Mutate(i => i.Transform(rotate * scale * translate, sampler));
+                Matrix3x2 m = this.MakeManuallyCenteredMatrix(50, 0.6f, image);
+
+                image.Mutate(i =>
+                    {
+                        i.Transform(m, sampler);
+                    });
+
                 image.DebugSave(provider, resamplerName);
+                image.CompareToReferenceOutput(provider, resamplerName);
             }
         }
 
diff --git a/tests/Images/External b/tests/Images/External
index 9d4070dab9..02687e772f 160000
--- a/tests/Images/External
+++ b/tests/Images/External
@@ -1 +1 @@
-Subproject commit 9d4070dab9e4aefa70dcd41ef98176a5d54e644f
+Subproject commit 02687e772f84b1d518ab83eacdfafba476f824e6