diff --git a/crates/bevy_ui/src/auto_directional_navigation.rs b/crates/bevy_ui/src/auto_directional_navigation.rs
index d714c3b3c5fda..4c215d3dac089 100644
--- a/crates/bevy_ui/src/auto_directional_navigation.rs
+++ b/crates/bevy_ui/src/auto_directional_navigation.rs
@@ -6,7 +6,7 @@
 use crate::{ComputedNode, ComputedUiTargetCamera, UiGlobalTransform};
 use bevy_camera::visibility::InheritedVisibility;
 use bevy_ecs::{prelude::*, system::SystemParam};
-use bevy_math::CompassOctant;
+use bevy_math::{ops, CompassOctant, Vec2};
 
 use bevy_input_focus::{
     directional_navigation::{
@@ -184,12 +184,13 @@ impl<'w, 's> AutoDirectionalNavigator<'w, 's> {
                     if let Some(tc) = computed_target_camera.get()
                         && tc == target_camera
                     {
-                        let (_scale, _rotation, translation) =
-                            transform.to_scale_angle_translation();
+                        let (scale, rotation, translation) = transform.to_scale_angle_translation();
+                        let scaled_size = computed.size() * computed.inverse_scale_factor() * scale;
+                        let rotated_size = get_rotated_bounds(scaled_size, rotation);
                         Some(FocusableArea {
                             entity,
                             position: translation * computed.inverse_scale_factor(),
-                            size: computed.size() * computed.inverse_scale_factor(),
+                            size: rotated_size,
                         })
                     } else {
                         // The node either does not have a target camera or it is not the same as the desired one.
@@ -212,13 +213,15 @@ impl<'w, 's> AutoDirectionalNavigator<'w, 's> {
             None,
             |(entity, computed_target_camera, computed, transform)| {
                 if let Some(target_camera) = computed_target_camera.get() {
-                    let (_scale, _rotation, translation) = transform.to_scale_angle_translation();
+                    let (scale, rotation, translation) = transform.to_scale_angle_translation();
+                    let scaled_size = computed.size() * computed.inverse_scale_factor() * scale;
+                    let rotated_size = get_rotated_bounds(scaled_size, rotation);
                     Some((
                         target_camera,
                         FocusableArea {
                             entity,
                             position: translation * computed.inverse_scale_factor(),
-                            size: computed.size() * computed.inverse_scale_factor(),
+                            size: rotated_size,
                         },
                     ))
                 } else {
@@ -228,3 +231,15 @@ impl<'w, 's> AutoDirectionalNavigator<'w, 's> {
         )
     }
 }
+
+fn get_rotated_bounds(size: Vec2, rotation: f32) -> Vec2 {
+    if rotation == 0.0 {
+        return size;
+    }
+    let cos_r = ops::cos(rotation).abs();
+    let sin_r = ops::sin(rotation).abs();
+    Vec2::new(
+        size.x * cos_r + size.y * sin_r,
+        size.x * sin_r + size.y * cos_r,
+    )
+}
diff --git a/examples/ui/auto_directional_navigation.rs b/examples/ui/auto_directional_navigation.rs
index fe5fda3fa9982..4bd63946f6f44 100644
--- a/examples/ui/auto_directional_navigation.rs
+++ b/examples/ui/auto_directional_navigation.rs
@@ -20,7 +20,7 @@ use bevy::{
         directional_navigation::{AutoNavigationConfig, DirectionalNavigationPlugin},
         InputDispatchPlugin, InputFocus, InputFocusVisible,
     },
-    math::{CompassOctant, Dir2},
+    math::{CompassOctant, Dir2, Rot2},
     picking::{
         backend::HitData,
         pointer::{Location, PointerId},
@@ -210,6 +210,15 @@ fn setup_scattered_ui(mut commands: Commands, mut input_focus: ResMut<InputFocus
 
     let mut first_button = None;
     for (i, (x, y)) in button_positions.iter().enumerate() {
+        let transform = if i == 4 {
+            UiTransform {
+                scale: Vec2::splat(1.2),
+                rotation: Rot2::FRAC_PI_2,
+                ..default()
+            }
+        } else {
+            UiTransform::IDENTITY
+        };
         let button_entity = commands
             .spawn((
                 Button,
@@ -225,6 +234,7 @@ fn setup_scattered_ui(mut commands: Commands, mut input_focus: ResMut<InputFocus
                     border_radius: BorderRadius::all(px(12)),
                     ..default()
                 },
+                transform,
                 // This is the key: just add this component for automatic navigation!
                 AutoDirectionalNavigation::default(),
                 ResetTimer::default(),