diff --git a/frontend/src/app/main/data/workspace/transforms.cljs b/frontend/src/app/main/data/workspace/transforms.cljs
index 389e0baf0..7160f14e0 100644
--- a/frontend/src/app/main/data/workspace/transforms.cljs
+++ b/frontend/src/app/main/data/workspace/transforms.cljs
@@ -217,11 +217,14 @@
 
                   ;; When the horizontal/vertical scale a flex children with auto/fill
                   ;; we change it too fixed
-                  set-fix-width?
+                  change-width?
                   (not (mth/close? (dm/get-prop scalev :x) 1))
 
-                  set-fix-height?
-                  (not (mth/close? (dm/get-prop scalev :y) 1))]
+                  change-height?
+                  (not (mth/close? (dm/get-prop scalev :y) 1))
+
+                  auto-width-text?  (and (cfh/text-shape? shape) (= :auto-width (dm/get-prop shape :grow-type)))
+                  auto-height-text? (and (cfh/text-shape? shape) (= :auto-height (dm/get-prop shape :grow-type)))]
 
               (cond-> (ctm/empty)
                 (some? displacement)
@@ -230,12 +233,18 @@
                 :always
                 (ctm/resize scalev resize-origin shape-transform shape-transform-inverse)
 
-                ^boolean set-fix-width?
+                ^boolean change-width?
                 (ctm/change-property :layout-item-h-sizing :fix)
 
-                ^boolean set-fix-height?
+                ^boolean change-height?
                 (ctm/change-property :layout-item-v-sizing :fix)
 
+                (and auto-width-text? (or change-width? change-height?))
+                (ctm/change-property :grow-type :fixed)
+
+                (and auto-height-text? change-height?)
+                (ctm/change-property :grow-type :fixed)
+
                 ^boolean scale-text
                 (ctm/scale-content (dm/get-prop scalev :x)))))
 
diff --git a/render-wasm/src/shapes/modifiers.rs b/render-wasm/src/shapes/modifiers.rs
index 1b0560e96..51128065d 100644
--- a/render-wasm/src/shapes/modifiers.rs
+++ b/render-wasm/src/shapes/modifiers.rs
@@ -6,10 +6,10 @@ mod grid_layout;
 
 use common::GetBounds;
 
-use crate::math::{identitish, Bounds, Matrix, Point};
+use crate::math::{self as math, identitish, Bounds, Matrix, Point};
 use crate::shapes::{
-    modified_children_ids, ConstraintH, ConstraintV, Frame, Group, Layout, Modifier, Shape,
-    StructureEntry, TransformEntry, Type,
+    auto_height, modified_children_ids, set_paragraphs_width, ConstraintH, ConstraintV, Frame,
+    Group, GrowType, Layout, Modifier, Shape, StructureEntry, TransformEntry, Type,
 };
 use crate::state::State;
 use crate::uuid::Uuid;
@@ -106,6 +106,7 @@ fn calculate_group_bounds(
 pub fn propagate_modifiers(state: &State, modifiers: Vec<TransformEntry>) -> Vec<TransformEntry> {
     let shapes = &state.shapes;
 
+    let font_col = state.render_state.fonts.font_collection();
     let mut entries: VecDeque<_> = modifiers
         .iter()
         .map(|entry| Modifier::Transform(entry.clone()))
@@ -137,7 +138,25 @@ pub fn propagate_modifiers(state: &State, modifiers: Vec<TransformEntry>) -> Vec
                     };
 
                     let shape_bounds_before = bounds.find(&shape);
-                    let shape_bounds_after = shape_bounds_before.transform(&entry.transform);
+                    let mut shape_bounds_after = shape_bounds_before.transform(&entry.transform);
+
+                    let mut transform = entry.transform;
+
+                    if let Type::Text(content) = &shape.shape_type {
+                        if content.grow_type() == GrowType::AutoHeight {
+                            let mut paragraphs = content.get_skia_paragraphs(font_col);
+                            set_paragraphs_width(shape_bounds_after.width(), &mut paragraphs);
+                            let height = auto_height(&paragraphs);
+                            let resize_transform = math::resize_matrix(
+                                &shape_bounds_after,
+                                &shape_bounds_after,
+                                shape_bounds_after.width(),
+                                height,
+                            );
+                            shape_bounds_after = shape_bounds_after.transform(&resize_transform);
+                            transform.post_concat(&resize_transform);
+                        }
+                    }
 
                     if entry.propagate {
                         let mut children = propagate_children(
@@ -145,11 +164,10 @@ pub fn propagate_modifiers(state: &State, modifiers: Vec<TransformEntry>) -> Vec
                             shapes,
                             &shape_bounds_before,
                             &shape_bounds_after,
-                            entry.transform,
+                            transform,
                             &bounds,
                             &state.structure,
                         );
-
                         entries.append(&mut children);
                     }
 
@@ -158,7 +176,7 @@ pub fn propagate_modifiers(state: &State, modifiers: Vec<TransformEntry>) -> Vec
                     let default_matrix = Matrix::default();
                     let mut shape_modif =
                         modifiers.get(&shape.id).unwrap_or(&default_matrix).clone();
-                    shape_modif.post_concat(&entry.transform);
+                    shape_modif.post_concat(&transform);
                     modifiers.insert(shape.id, shape_modif);
 
                     if let Some(parent) = shape.parent_id.and_then(|id| shapes.get(&id)) {
diff --git a/render-wasm/src/shapes/text.rs b/render-wasm/src/shapes/text.rs
index 96f6c9b05..808d5d104 100644
--- a/render-wasm/src/shapes/text.rs
+++ b/render-wasm/src/shapes/text.rs
@@ -40,7 +40,11 @@ pub struct TextContent {
 pub fn set_paragraphs_width(width: f32, paragraphs: &mut Vec<Vec<skia::textlayout::Paragraph>>) {
     for group in paragraphs {
         for paragraph in group {
-            paragraph.layout(width)
+            // We first set max so we can get the min_intrinsic_width (this is the min word size)
+            // then after we set either the real with or the min.
+            // This is done this way so the words are not break into lines.
+            paragraph.layout(f32::MAX);
+            paragraph.layout(f32::max(width, paragraph.min_intrinsic_width().ceil()));
         }
     }
 }