diff --git a/CHANGELOG.md b/CHANGELOG.md
index 44d419287..c5fef7156 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -42,12 +42,14 @@ This project adheres to [Semantic Versioning](http://semver.org/).
 ### Breaking Changes
 
 - `ex.Action` now requires a unique `id` property
+- Z-indexes are now relative to the parent's Z-index. You can get the global Z-index with the `globalZ` property on the Actor or TransformComponent.
 
 ### Deprecated
 
 ### Added
 
 - Built in actions now have a unique `id` property
+- `globalZ` property to Actor and TransformComponent
 
 ### Fixed
 
diff --git a/src/engine/Actor.ts b/src/engine/Actor.ts
index cd77d4fb6..c71564b02 100644
--- a/src/engine/Actor.ts
+++ b/src/engine/Actor.ts
@@ -884,6 +884,13 @@ export class Actor extends Entity implements Eventable, PointerEvents, CanInitia
     return this.get(TransformComponent).globalScale;
   }
 
+  /**
+   * The global z-index of the actor
+   */
+  public get globalZ(): number {
+    return this.get(TransformComponent).globalZ;
+  }
+
   // #region Collision
 
   /**
diff --git a/src/engine/EntityComponentSystem/Components/TransformComponent.ts b/src/engine/EntityComponentSystem/Components/TransformComponent.ts
index a3441c487..314b8b173 100644
--- a/src/engine/EntityComponentSystem/Components/TransformComponent.ts
+++ b/src/engine/EntityComponentSystem/Components/TransformComponent.ts
@@ -43,24 +43,31 @@ export class TransformComponent extends Component {
    * Observable that emits when the z index changes on this component
    */
   public zIndexChanged$ = new Observable<number>();
-  private _z = 0;
 
   /**
    * The z-index ordering of the entity, a higher values are drawn on top of lower values.
    * For example z=99 would be drawn on top of z=0.
    */
   public get z(): number {
-    return this._z;
+    return this._transform.z;
   }
 
   public set z(val: number) {
-    const oldz = this._z;
-    this._z = val;
+    const oldz = this._transform.z;
+    this._transform.z = val;
     if (oldz !== val) {
       this.zIndexChanged$.notifyAll(val);
     }
   }
 
+  public get globalZ() {
+    return this._transform.globalZ;
+  }
+
+  public set globalZ(z: number) {
+    this._transform.globalZ = z;
+  }
+
   private _coordPlane = CoordPlane.World;
   /**
    * The [[CoordPlane|coordinate plane|]] for this transform for the entity.
@@ -135,7 +142,6 @@ export class TransformComponent extends Component {
   clone(): TransformComponent {
     const component = new TransformComponent();
     component._transform = this._transform.clone();
-    component._z = this._z;
     return component;
   }
 }
diff --git a/src/engine/Graphics/GraphicsSystem.ts b/src/engine/Graphics/GraphicsSystem.ts
index ccd773b6b..42674562c 100644
--- a/src/engine/Graphics/GraphicsSystem.ts
+++ b/src/engine/Graphics/GraphicsSystem.ts
@@ -65,7 +65,7 @@ export class GraphicsSystem extends System {
     this._graphicsContext = this._engine.graphicsContext;
     if (this._zHasChanged) {
       this._sortedTransforms.sort((a, b) => {
-        return a.z - b.z;
+        return a.globalZ - b.globalZ;
       });
       this._zHasChanged = false;
     }
@@ -265,7 +265,7 @@ export class GraphicsSystem extends System {
       }
 
       if (transform) {
-        this._graphicsContext.z = transform.z;
+        this._graphicsContext.z = transform.globalZ;
         this._graphicsContext.translate(tx.pos.x, tx.pos.y);
         this._graphicsContext.scale(tx.scale.x, tx.scale.y);
         this._graphicsContext.rotate(tx.rotation);
diff --git a/src/engine/Math/transform.ts b/src/engine/Math/transform.ts
index 5074392ef..91410f03f 100644
--- a/src/engine/Math/transform.ts
+++ b/src/engine/Math/transform.ts
@@ -160,6 +160,32 @@ export class Transform {
     });
   }
 
+  private _z: number = 0;
+
+  set z(z: number) {
+    this._z = z;
+    this.flagDirty();
+  }
+
+  get z() {
+    return this._z;
+  }
+
+  set globalZ(z: number) {
+    if (this.parent) {
+      this.z = z - this.parent.globalZ;
+    } else {
+      this.z = z;
+    }
+  }
+
+  get globalZ() {
+    if (this.parent) {
+      return this.z + this.parent.globalZ;
+    }
+    return this.z;
+  }
+
   private _isDirty = false;
   private _isInverseDirty = false;
   private _matrix = AffineMatrix.identity();
@@ -223,6 +249,7 @@ export class Transform {
   public clone(dest?: Transform) {
     const target = dest ?? new Transform();
     this._pos.clone(target._pos);
+    target._z = this._z;
     target._rotation = this._rotation;
     this._scale.clone(target._scale);
     target.flagDirty();
diff --git a/src/spec/GraphicsSystemSpec.ts b/src/spec/GraphicsSystemSpec.ts
index 544741961..06527269c 100644
--- a/src/spec/GraphicsSystemSpec.ts
+++ b/src/spec/GraphicsSystemSpec.ts
@@ -15,11 +15,21 @@ describe('A Graphics ECS System', () => {
     entities = [
       new ex.Entity().addComponent(new ex.TransformComponent()).addComponent(new ex.GraphicsComponent()),
       new ex.Entity().addComponent(new ex.TransformComponent()).addComponent(new ex.GraphicsComponent()),
+      new ex.Entity().addComponent(new ex.TransformComponent()).addComponent(new ex.GraphicsComponent()),
+
+      // parent
+      new ex.Entity().addComponent(new ex.TransformComponent()).addComponent(new ex.GraphicsComponent()),
+
+      // child of ^
       new ex.Entity().addComponent(new ex.TransformComponent()).addComponent(new ex.GraphicsComponent())
     ];
-    entities[0].get(TransformComponent).z = 10;
-    entities[1].get(TransformComponent).z = 5;
-    entities[2].get(TransformComponent).z = 1;
+    entities[0].get(TransformComponent).z = 100;
+    entities[1].get(TransformComponent).z = 50;
+    entities[2].get(TransformComponent).z = 10;
+
+    entities[3].get(TransformComponent).z = 5;
+    entities[3].addChild(entities[4]);
+    entities[4].get(TransformComponent).z = -1;
   });
 
   afterEach(() => {
@@ -32,7 +42,7 @@ describe('A Graphics ECS System', () => {
     expect(ex.GraphicsSystem).toBeDefined();
   });
 
-  it('sorts entities by transform.z', () => {
+  it('sorts entities by transform.globalZ', () => {
     const world = engine.currentScene.world;
     const sut = new ex.GraphicsSystem(world);
     engine.currentScene._initialize(engine);
diff --git a/src/spec/TransformComponentSpec.ts b/src/spec/TransformComponentSpec.ts
index 2816af201..2ddbff4f2 100644
--- a/src/spec/TransformComponentSpec.ts
+++ b/src/spec/TransformComponentSpec.ts
@@ -146,6 +146,26 @@ describe('A TransformComponent', () => {
     expect(childTx.rotation).toBeCloseTo(Math.PI); // Math.PI + Math.PI = 2PI = 0 global
   });
 
+  it('can have parent/child relationships with z', () => {
+    const parent = new ex.Entity([new ex.TransformComponent()]);
+    const child = new ex.Entity([new ex.TransformComponent()]);
+    parent.addChild(child);
+
+    const parentTx = parent.get(ex.TransformComponent);
+    const childTx = child.get(ex.TransformComponent);
+
+    // Changing a parent z influences the child global z
+    parentTx.z = 100;
+    expect(childTx.z).toBe(0);
+    expect(childTx.globalZ).toBe(100);
+
+    // Changing a child global z affects childs local and not parent z
+    parentTx.z = 100;
+    childTx.globalZ = 50;
+    expect(parentTx.z).toBe(100);
+    expect(childTx.z).toBe(-50);
+  });
+
   it('can retrieve the global transform', () => {
     const parent = new ex.Entity([new ex.TransformComponent()]);
     const child = new ex.Entity([new ex.TransformComponent()]);