diff --git a/public/app/features/canvas/runtime/element.tsx b/public/app/features/canvas/runtime/element.tsx
index 37000ed02bd..dd41cf89d99 100644
--- a/public/app/features/canvas/runtime/element.tsx
+++ b/public/app/features/canvas/runtime/element.tsx
@@ -14,6 +14,7 @@ import { DimensionContext } from 'app/features/dimensions';
 import { HorizontalConstraint, Placement, VerticalConstraint } from '../types';
 
 import { GroupState } from './group';
+import { RootElement } from './root';
 import { Scene } from './scene';
 
 let counter = 0;
@@ -68,6 +69,11 @@ export class ElementState implements LayerElement {
 
   /** Use the configured options to update CSS style properties directly on the wrapper div **/
   applyLayoutStylesToDiv() {
+    if (this.isRoot()) {
+      // Root supersedes layout engine and is always 100% width + height of panel
+      return;
+    }
+
     const { constraint } = this.options;
     const { vertical, horizontal } = constraint ?? {};
     const placement = this.options.placement ?? ({} as Placement);
@@ -170,12 +176,16 @@ export class ElementState implements LayerElement {
     }
   }
 
-  setPlacementFromConstraint() {
+  setPlacementFromConstraint(elementContainer?: DOMRect, parentContainer?: DOMRect) {
     const { constraint } = this.options;
     const { vertical, horizontal } = constraint ?? {};
 
-    const elementContainer = this.div && this.div.getBoundingClientRect();
-    const parentContainer = this.div && this.div.parentElement?.getBoundingClientRect();
+    if (!elementContainer) {
+      elementContainer = this.div && this.div.getBoundingClientRect();
+    }
+    if (!parentContainer) {
+      parentContainer = this.div && this.div.parentElement?.getBoundingClientRect();
+    }
 
     const relativeTop =
       elementContainer && parentContainer ? Math.abs(Math.round(elementContainer.top - parentContainer.top)) : 0;
@@ -305,6 +315,11 @@ export class ElementState implements LayerElement {
     }
 
     this.dataStyle = css;
+    this.applyLayoutStylesToDiv();
+  }
+
+  isRoot(): this is RootElement {
+    return false;
   }
 
   /** Recursively visit all nodes */
diff --git a/public/app/features/canvas/runtime/group.tsx b/public/app/features/canvas/runtime/group.tsx
index 35d38155a90..809dfc12fa4 100644
--- a/public/app/features/canvas/runtime/group.tsx
+++ b/public/app/features/canvas/runtime/group.tsx
@@ -82,7 +82,7 @@ export class GroupState extends ElementState {
 
   // ??? or should this be on the element directly?
   // are actions scoped to layers?
-  doAction = (action: LayerActionID, element: ElementState, updateName = true) => {
+  doAction = (action: LayerActionID, element: ElementState, updateName = true, shiftItemsOnDuplicate = true) => {
     switch (action) {
       case LayerActionID.Delete:
         this.elements = this.elements.filter((e) => e !== element);
@@ -97,48 +97,50 @@ export class GroupState extends ElementState {
         }
         const opts = cloneDeep(element.options);
 
-        const { constraint, placement: oldPlacement } = element.options;
-        const { vertical, horizontal } = constraint ?? {};
-        const placement = oldPlacement ?? ({} as Placement);
+        if (shiftItemsOnDuplicate) {
+          const { constraint, placement: oldPlacement } = element.options;
+          const { vertical, horizontal } = constraint ?? {};
+          const placement = oldPlacement ?? ({} as Placement);
 
-        switch (vertical) {
-          case VerticalConstraint.Top:
-          case VerticalConstraint.TopBottom:
-            if (placement.top == null) {
-              placement.top = 25;
-            } else {
-              placement.top += 10;
-            }
-            break;
-          case VerticalConstraint.Bottom:
-            if (placement.bottom == null) {
-              placement.bottom = 100;
-            } else {
-              placement.bottom -= 10;
-            }
-            break;
+          switch (vertical) {
+            case VerticalConstraint.Top:
+            case VerticalConstraint.TopBottom:
+              if (placement.top == null) {
+                placement.top = 25;
+              } else {
+                placement.top += 10;
+              }
+              break;
+            case VerticalConstraint.Bottom:
+              if (placement.bottom == null) {
+                placement.bottom = 100;
+              } else {
+                placement.bottom -= 10;
+              }
+              break;
+          }
+
+          switch (horizontal) {
+            case HorizontalConstraint.Left:
+            case HorizontalConstraint.LeftRight:
+              if (placement.left == null) {
+                placement.left = 50;
+              } else {
+                placement.left += 10;
+              }
+              break;
+            case HorizontalConstraint.Right:
+              if (placement.right == null) {
+                placement.right = 50;
+              } else {
+                placement.right -= 10;
+              }
+              break;
+          }
+
+          opts.placement = placement;
         }
 
-        switch (horizontal) {
-          case HorizontalConstraint.Left:
-          case HorizontalConstraint.LeftRight:
-            if (placement.left == null) {
-              placement.left = 50;
-            } else {
-              placement.left += 10;
-            }
-            break;
-          case HorizontalConstraint.Right:
-            if (placement.right == null) {
-              placement.right = 50;
-            } else {
-              placement.right -= 10;
-            }
-            break;
-        }
-
-        opts.placement = placement;
-
         const copy = new ElementState(element.item, opts, this);
         copy.updateData(this.scene.context);
         if (updateName) {
@@ -157,7 +159,7 @@ export class GroupState extends ElementState {
 
   render() {
     return (
-      <div key={`${this.UID}/${this.revId}`} style={{ ...this.sizeStyle, ...this.dataStyle }}>
+      <div key={this.UID} ref={this.initElement} style={{ overflow: 'hidden' }}>
         {this.elements.map((v) => v.render())}
       </div>
     );
diff --git a/public/app/features/canvas/runtime/root.tsx b/public/app/features/canvas/runtime/root.tsx
index 8eebe0c01aa..47b1339356d 100644
--- a/public/app/features/canvas/runtime/root.tsx
+++ b/public/app/features/canvas/runtime/root.tsx
@@ -1,3 +1,5 @@
+import React from 'react';
+
 import { CanvasGroupOptions, CanvasElementOptions } from 'app/features/canvas';
 
 import { GroupState } from './group';
@@ -32,4 +34,16 @@ export class RootElement extends GroupState {
       elements: this.elements.map((v) => v.getSaveModel()),
     };
   }
+
+  setRootRef = (target: HTMLDivElement) => {
+    this.div = target;
+  };
+
+  render() {
+    return (
+      <div key={this.UID} ref={this.setRootRef} style={{ ...this.sizeStyle, ...this.dataStyle }}>
+        {this.elements.map((v) => v.render())}
+      </div>
+    );
+  }
 }
diff --git a/public/app/features/canvas/runtime/scene.tsx b/public/app/features/canvas/runtime/scene.tsx
index 41db45e95a6..edfcb5689f2 100644
--- a/public/app/features/canvas/runtime/scene.tsx
+++ b/public/app/features/canvas/runtime/scene.tsx
@@ -26,6 +26,8 @@ import {
 } from 'app/features/dimensions/utils';
 import { LayerActionID } from 'app/plugins/panel/canvas/types';
 
+import { Placement } from '../types';
+
 import { ElementState } from './element';
 import { GroupState } from './group';
 import { RootElement } from './root';
@@ -138,11 +140,19 @@ export class Scene {
         currentSelectedElements[0].parent
       );
 
+      const groupPlacement = this.generateGroupContainer(currentSelectedElements);
+
+      newLayer.options.placement = groupPlacement;
+
       currentSelectedElements.forEach((element: ElementState) => {
+        const elementContainer = element.div?.getBoundingClientRect();
+        element.setPlacementFromConstraint(elementContainer, groupPlacement as DOMRect);
         currentLayer.doAction(LayerActionID.Delete, element);
-        newLayer.doAction(LayerActionID.Duplicate, element, false);
+        newLayer.doAction(LayerActionID.Duplicate, element, false, false);
       });
 
+      newLayer.setPlacementFromConstraint(groupPlacement as DOMRect, currentLayer.div?.getBoundingClientRect());
+
       currentLayer.elements.push(newLayer);
 
       this.byName.set(newLayer.getName(), newLayer);
@@ -151,6 +161,44 @@ export class Scene {
     });
   }
 
+  private generateGroupContainer = (elements: ElementState[]): Placement => {
+    let minTop = Infinity;
+    let minLeft = Infinity;
+    let maxRight = 0;
+    let maxBottom = 0;
+
+    elements.forEach((element: ElementState) => {
+      const elementContainer = element.div?.getBoundingClientRect();
+
+      if (!elementContainer) {
+        return;
+      }
+
+      if (minTop > elementContainer.top) {
+        minTop = elementContainer.top;
+      }
+
+      if (minLeft > elementContainer.left) {
+        minLeft = elementContainer.left;
+      }
+
+      if (maxRight < elementContainer.right) {
+        maxRight = elementContainer.right;
+      }
+
+      if (maxBottom < elementContainer.bottom) {
+        maxBottom = elementContainer.bottom;
+      }
+    });
+
+    return {
+      top: minTop,
+      left: minLeft,
+      width: maxRight - minLeft,
+      height: maxBottom - minTop,
+    };
+  };
+
   clearCurrentSelection() {
     let event: MouseEvent = new MouseEvent('click');
     this.selecto?.clickTarget(event, this.div);
diff --git a/public/app/plugins/panel/canvas/editor/LayerElementListEditor.tsx b/public/app/plugins/panel/canvas/editor/LayerElementListEditor.tsx
index 75d36be7784..809495898b5 100644
--- a/public/app/plugins/panel/canvas/editor/LayerElementListEditor.tsx
+++ b/public/app/plugins/panel/canvas/editor/LayerElementListEditor.tsx
@@ -55,10 +55,7 @@ export class LayerElementListEditor extends PureComponent<Props> {
         let selection: SelectionParams = { targets: [] };
         if (item instanceof GroupState) {
           const targetElements: HTMLDivElement[] = [];
-          item.elements.forEach((element: ElementState) => {
-            targetElements.push(element.div!);
-          });
-
+          targetElements.push(item?.div!);
           selection.targets = targetElements;
           selection.group = item;
           settings.scene.select(selection);
@@ -129,7 +126,9 @@ export class LayerElementListEditor extends PureComponent<Props> {
 
     this.deleteGroup();
     layer.elements.forEach((element: ElementState) => {
-      layer.parent?.doAction(LayerActionID.Duplicate, element, false);
+      const elementContainer = element.div?.getBoundingClientRect();
+      element.setPlacementFromConstraint(elementContainer, layer.parent?.div?.getBoundingClientRect());
+      layer.parent?.doAction(LayerActionID.Duplicate, element, false, false);
     });
   };
 
diff --git a/public/app/plugins/panel/canvas/editor/layerEditor.tsx b/public/app/plugins/panel/canvas/editor/layerEditor.tsx
index 9c07fd425c1..dcf2ba29abe 100644
--- a/public/app/plugins/panel/canvas/editor/layerEditor.tsx
+++ b/public/app/plugins/panel/canvas/editor/layerEditor.tsx
@@ -57,6 +57,7 @@ export function getLayerEditor(opts: InstanceState): NestedPanelOptions<LayerEdi
         }
         const c = setOptionImmutably(options, path, value);
         scene.currentLayer?.onChange(c);
+        scene.currentLayer?.updateData(scene.context);
       },
     }),