diff --git a/packages/studio/src/components/editor/DomEditCropHandles.tsx b/packages/studio/src/components/editor/DomEditCropHandles.tsx
index 7ccdaad3e..7ac3b485b 100644
--- a/packages/studio/src/components/editor/DomEditCropHandles.tsx
+++ b/packages/studio/src/components/editor/DomEditCropHandles.tsx
@@ -4,9 +4,11 @@ import type { OverlayRect } from "./domEditOverlayGeometry";
 import {
   type CropEdge,
   cropRectFromInsets,
+  readElementCropFrame,
   readElementCropInsets,
   resolveCropInsetFromEdgeDrag,
   resolveCropInsetFromMoveDrag,
+  rotateDeltaIntoFrame,
 } from "./domEditOverlayCrop";
 import { buildInsetClipPathSides, type ClipPathInsetSides } from "./clipPathHelpers";
 
@@ -17,6 +19,10 @@ interface CropGestureState {
   startY: number;
   startInsets: ClipPathInsetSides;
   didMove: boolean;
+  /** Element frame captured at gesture start: pointer deltas rotate into it. */
+  angleDeg: number;
+  scaleX: number;
+  scaleY: number;
 }
 
 interface DomEditCropHandlesProps {
@@ -133,11 +139,20 @@ export function DomEditCropHandles({
     };
   }, [selection.element]);
 
-  const scaleX = overlayRect.editScaleX > 0 ? overlayRect.editScaleX : 1;
-  const scaleY = overlayRect.editScaleY > 0 ? overlayRect.editScaleY : 1;
-  const width = overlayRect.width / scaleX;
-  const height = overlayRect.height / scaleY;
-  const cropRect = cropRectFromInsets(overlayRect, state.insets, scaleX, scaleY);
+  // The crop applies in the element's LOCAL frame (clip-path precedes the
+  // transform), so all crop UI is drawn inside a container rotated with the
+  // element — on a rotated element an axis-aligned dim visually "straightens"
+  // it by masking the rotated corners.
+  const frame = readElementCropFrame(selection.element, overlayRect);
+  const width = frame.width / frame.scaleX; // element CSS px
+  const height = frame.height / frame.scaleY;
+  // Crop rect in FRAME-LOCAL coordinates (origin = frame top-left).
+  const cropRect = cropRectFromInsets(
+    { left: 0, top: 0, width: frame.width, height: frame.height },
+    state.insets,
+    frame.scaleX,
+    frame.scaleY,
+  );
 
   const startCropGesture = (edge: CropEdge | "move", event: ReactPointerEvent<HTMLElement>) => {
     if (!onStyleCommit) return;
@@ -151,6 +166,9 @@ export function DomEditCropHandles({
       startY: event.clientY,
       startInsets: state.insets,
       didMove: false,
+      angleDeg: frame.angleDeg,
+      scaleX: frame.scaleX,
+      scaleY: frame.scaleY,
     };
     // Clip is already lifted by the selection effect; just flag the drag so the
     // rule-of-thirds grid shows.
@@ -162,12 +180,17 @@ export function DomEditCropHandles({
     if (!gesture || gesture.pointerId !== event.pointerId) return;
     event.preventDefault();
     event.stopPropagation();
+    const local = rotateDeltaIntoFrame(
+      event.clientX - gesture.startX,
+      event.clientY - gesture.startY,
+      gesture.angleDeg,
+    );
     const drag = {
       startInsets: gesture.startInsets,
-      deltaX: event.clientX - gesture.startX,
-      deltaY: event.clientY - gesture.startY,
-      scaleX,
-      scaleY,
+      deltaX: local.deltaX,
+      deltaY: local.deltaY,
+      scaleX: gesture.scaleX,
+      scaleY: gesture.scaleY,
     };
     const nextInsets =
       gesture.edge === "move"
@@ -225,24 +248,27 @@ export function DomEditCropHandles({
   if (!state.croppable) return null;
 
   return (
-    <>
+    <div
+      data-dom-edit-crop-frame="true"
+      className="pointer-events-none absolute"
+      style={{
+        left: frame.left,
+        top: frame.top,
+        width: frame.width,
+        height: frame.height,
+        transform: frame.angleDeg !== 0 ? `rotate(${frame.angleDeg}deg)` : undefined,
+      }}
+    >
       {/* Dim the cropped-away area whenever the element is cropped and selected,
-          so the hidden content is visible (ghosted) without dragging. */}
+          so the hidden content is visible (ghosted) without dragging. Clipped to
+          the element's own (rotated) box. */}
       {hasCrop && (
-        <div
-          className="pointer-events-none absolute overflow-hidden"
-          style={{
-            left: overlayRect.left,
-            top: overlayRect.top,
-            width: overlayRect.width,
-            height: overlayRect.height,
-          }}
-        >
+        <div className="pointer-events-none absolute inset-0 overflow-hidden">
           <div
             className="absolute"
             style={{
-              left: cropRect.left - overlayRect.left,
-              top: cropRect.top - overlayRect.top,
+              left: cropRect.left,
+              top: cropRect.top,
               width: cropRect.width,
               height: cropRect.height,
               boxShadow: "0 0 0 100000px rgba(8, 8, 12, 0.6)",
@@ -324,6 +350,6 @@ export function DomEditCropHandles({
           />
         );
       })}
-    </>
+    </div>
   );
 }
diff --git a/packages/studio/src/components/editor/domEditOverlayCrop.test.ts b/packages/studio/src/components/editor/domEditOverlayCrop.test.ts
index a23abc0e7..9831f06ed 100644
--- a/packages/studio/src/components/editor/domEditOverlayCrop.test.ts
+++ b/packages/studio/src/components/editor/domEditOverlayCrop.test.ts
@@ -2,9 +2,11 @@ import { describe, expect, it } from "vitest";
 import {
   cropRectFromInsets,
   hugRectForElement,
+  readElementCropFrame,
   readElementCropInsets,
   resolveCropInsetFromEdgeDrag,
   resolveCropInsetFromMoveDrag,
+  rotateDeltaIntoFrame,
 } from "./domEditOverlayCrop";
 
 describe("resolveCropInsetFromEdgeDrag", () => {
@@ -151,3 +153,91 @@ describe("readElementCropInsets tri-state", () => {
     expect(hugRectForElement(rect, fakeEl("circle(50%)"))).toEqual(rect);
   });
 });
+
+// Regression: crop UI drawn on the axis-aligned bounding box visually
+// "straightens" a rotated element — the dim masks the rotated corners. The
+// frame gives the element's own box + rotation so the UI rotates with it.
+describe("readElementCropFrame", () => {
+  const overlayRect = { left: 100, top: 50, width: 220, height: 130, editScaleX: 1, editScaleY: 1 };
+
+  const fakeEl = (transform: string, offsetWidth = 200, offsetHeight = 100) =>
+    ({
+      offsetWidth,
+      offsetHeight,
+      ownerDocument: { defaultView: { getComputedStyle: () => ({ transform }) } },
+    }) as unknown as HTMLElement;
+
+  it("identity transform → the axis-aligned overlay rect", () => {
+    expect(readElementCropFrame(fakeEl("none"), overlayRect)).toEqual({
+      angleDeg: 0,
+      left: 100,
+      top: 50,
+      width: 220,
+      height: 130,
+      scaleX: 1,
+      scaleY: 1,
+    });
+  });
+
+  it("rotated element → its own box, centered on the AABB, with the angle", () => {
+    // rotate(30deg): matrix(cos, sin, -sin, cos, tx, ty)
+    const cos = Math.cos(Math.PI / 6);
+    const sin = Math.sin(Math.PI / 6);
+    const frame = readElementCropFrame(
+      fakeEl(`matrix(${cos}, ${sin}, ${-sin}, ${cos}, 10, 20)`),
+      overlayRect,
+    );
+    expect(frame.angleDeg).toBeCloseTo(30, 3);
+    expect(frame.width).toBeCloseTo(200, 3);
+    expect(frame.height).toBeCloseTo(100, 3);
+    // centered on the AABB center (210, 115)
+    expect(frame.left + frame.width / 2).toBeCloseTo(210, 3);
+    expect(frame.top + frame.height / 2).toBeCloseTo(115, 3);
+    expect(frame.scaleX).toBeCloseTo(1, 3);
+  });
+
+  it("scaled element → scale factored into px-per-element-px", () => {
+    const frame = readElementCropFrame(fakeEl("matrix(1.5, 0, 0, 2, 0, 0)"), overlayRect);
+    expect(frame.angleDeg).toBe(0);
+    expect(frame.scaleX).toBeCloseTo(1.5, 3);
+    expect(frame.scaleY).toBeCloseTo(2, 3);
+    expect(frame.width).toBeCloseTo(300, 3);
+    expect(frame.height).toBeCloseTo(200, 3);
+  });
+
+  it("3D transform falls back to the axis-aligned frame", () => {
+    const frame = readElementCropFrame(
+      fakeEl("matrix3d(1,0,0,0,0,1,0,0,0,0,1,0,0,0,0,1)"),
+      overlayRect,
+    );
+    expect(frame).toEqual({
+      angleDeg: 0,
+      left: 100,
+      top: 50,
+      width: 220,
+      height: 130,
+      scaleX: 1,
+      scaleY: 1,
+    });
+  });
+});
+
+describe("rotateDeltaIntoFrame", () => {
+  it("passes deltas through at 0deg", () => {
+    expect(rotateDeltaIntoFrame(10, 5, 0)).toEqual({ deltaX: 10, deltaY: 5 });
+  });
+
+  it("rotates a screen delta into a 90deg-rotated frame", () => {
+    // Element rotated +90°: dragging DOWN on screen moves along the element's +x.
+    const { deltaX, deltaY } = rotateDeltaIntoFrame(0, 10, 90);
+    expect(deltaX).toBeCloseTo(10, 6);
+    expect(deltaY).toBeCloseTo(0, 6);
+  });
+
+  it("round-trips a 30deg rotation", () => {
+    const local = rotateDeltaIntoFrame(7, -3, 30);
+    const back = rotateDeltaIntoFrame(local.deltaX, local.deltaY, -30);
+    expect(back.deltaX).toBeCloseTo(7, 6);
+    expect(back.deltaY).toBeCloseTo(-3, 6);
+  });
+});
diff --git a/packages/studio/src/components/editor/domEditOverlayCrop.ts b/packages/studio/src/components/editor/domEditOverlayCrop.ts
index 4f0e7dd7f..cfff9daf4 100644
--- a/packages/studio/src/components/editor/domEditOverlayCrop.ts
+++ b/packages/studio/src/components/editor/domEditOverlayCrop.ts
@@ -122,3 +122,91 @@ export function hugRectForElement(
     return rect;
   return cropRectFromInsets(rect, insets, rect.editScaleX, rect.editScaleY);
 }
+
+/**
+ * The element's own (unrotated) box in overlay space, plus the rotation to
+ * apply when drawing crop UI over it. `clip-path` applies in the element's
+ * LOCAL frame — before its transform — so the crop dim/outline/handles must be
+ * drawn rotated with the element, not on its axis-aligned bounding box: an
+ * AABB-drawn dim visually "straightens" a rotated element by masking its
+ * corners (the crop window looks axis-aligned while the pixels are not).
+ *
+ * scaleX/scaleY are overlay px per element CSS px (element's own scale × the
+ * editor zoom), so element-space insets map straight onto the frame. Assumes
+ * the default 50%/50% transform-origin (the GSAP/studio convention). 3D or
+ * unparseable transforms fall back to the axis-aligned frame (angle 0, AABB
+ * box) — the pre-existing presentation.
+ */
+export interface CropFrame {
+  angleDeg: number;
+  left: number;
+  top: number;
+  width: number;
+  height: number;
+  scaleX: number;
+  scaleY: number;
+}
+
+export function readElementCropFrame(
+  element: HTMLElement,
+  overlayRect: CropScreenRect & { editScaleX: number; editScaleY: number },
+): CropFrame {
+  const editX = overlayRect.editScaleX > 0 ? overlayRect.editScaleX : 1;
+  const editY = overlayRect.editScaleY > 0 ? overlayRect.editScaleY : 1;
+  const aabb: CropFrame = {
+    angleDeg: 0,
+    left: overlayRect.left,
+    top: overlayRect.top,
+    width: overlayRect.width,
+    height: overlayRect.height,
+    scaleX: editX,
+    scaleY: editY,
+  };
+  let transform = "";
+  try {
+    transform = element.ownerDocument.defaultView?.getComputedStyle(element).transform ?? "";
+  } catch {
+    return aabb;
+  }
+  if (!transform || transform === "none") return aabb;
+  const m = /^matrix\(([^)]+)\)$/.exec(transform);
+  if (!m) return aabb; // matrix3d or unparseable → axis-aligned fallback
+  const [a, b, c, d] = m[1]!.split(",").map((v) => Number.parseFloat(v));
+  if (![a, b, c, d].every(Number.isFinite)) return aabb;
+  const elScaleX = Math.hypot(a!, b!);
+  const det = a! * d! - b! * c!;
+  const elScaleY = elScaleX !== 0 ? det / elScaleX : 1;
+  if (elScaleX <= 0 || elScaleY <= 0) return aabb;
+  const angleDeg = (Math.atan2(b!, a!) * 180) / Math.PI;
+  const scaleX = elScaleX * editX;
+  const scaleY = elScaleY * editY;
+  const width = element.offsetWidth * scaleX;
+  const height = element.offsetHeight * scaleY;
+  if (!(width > 0) || !(height > 0)) return aabb;
+  // Rotation about the default center keeps the center invariant, so the
+  // local box is centered on the AABB center.
+  const cx = overlayRect.left + overlayRect.width / 2;
+  const cy = overlayRect.top + overlayRect.height / 2;
+  return {
+    angleDeg,
+    left: cx - width / 2,
+    top: cy - height / 2,
+    width,
+    height,
+    scaleX,
+    scaleY,
+  };
+}
+
+/** Rotate a screen-space pointer delta into the element's local frame. */
+export function rotateDeltaIntoFrame(
+  deltaX: number,
+  deltaY: number,
+  angleDeg: number,
+): { deltaX: number; deltaY: number } {
+  if (angleDeg === 0) return { deltaX, deltaY };
+  const rad = (-angleDeg * Math.PI) / 180;
+  const cos = Math.cos(rad);
+  const sin = Math.sin(rad);
+  return { deltaX: deltaX * cos - deltaY * sin, deltaY: deltaX * sin + deltaY * cos };
+}