diff --git a/platform/features/layout/src/FixedController.js b/platform/features/layout/src/FixedController.js
index b87a6cb9d2..0bd52e6d59 100644
--- a/platform/features/layout/src/FixedController.js
+++ b/platform/features/layout/src/FixedController.js
@@ -60,7 +60,7 @@ define(
                 cellStyles = [];
 
                 // Update grid size from model
-                gridSize = ($scope.model || {}).layoutGrid || gridSize;
+                gridSize = ($scope.model || {}).layoutGrid || DEFAULT_GRID_SIZE;
 
                 for (x = 0; x < gridExtent[0]; x += 1) {
                     for (y = 0; y < gridExtent[1]; y += 1) {
@@ -136,6 +136,16 @@ define(
                 }
             }
 
+            // Update element positions when grid size changes
+            function updateElementPositions(layoutGrid) {
+                // Update grid size from model
+                gridSize = layoutGrid || DEFAULT_GRID_SIZE;
+
+                elementProxies.forEach(function (elementProxy) {
+                    elementProxy.style = convertPosition(elementProxy);
+                });
+            }
+
             // Update telemetry values based on new data available
             function updateValues() {
                 if (subscription) {
@@ -277,6 +287,9 @@ define(
             // Position panes when the model field changes
             $scope.$watch("model.composition", updateComposition);
 
+            // Detect changes to grid size
+            $scope.$watch("model.layoutGrid", updateElementPositions);
+
             // Subscribe to telemetry when an object is available
             $scope.$watch("domainObject", subscribe);
 
@@ -372,4 +385,4 @@ define(
 
         return FixedController;
     }
-);
\ No newline at end of file
+);