diff --git a/crates/text/src/layout.rs b/crates/text/src/layout.rs
index 19d7b8c72d..ae1bd552af 100644
--- a/crates/text/src/layout.rs
+++ b/crates/text/src/layout.rs
@@ -442,6 +442,8 @@ struct KernSlot {
     blank: bool,
     /// Advance along the line (px, horizontal scale included).
     advance: f32,
+    /// What horizontal scale adds to the shaped advance (px; negative below 100%).
+    growth: f32,
     /// A tab, shaped as a space; it advances to the next tab stop.
     tab: bool,
     /// Vertical type, upright glyph (its outline doesn't run along the column).
@@ -646,11 +648,29 @@ impl Layouter {
             // Box extent along the lines: width, or height for vertical type (columns).
             let (line_origin, line_len) = if vertical { (box_rect.1, box_rect.3) } else { (box_rect.0, box_rect.2) };
             let avail = if is_box { Some((line_len - indent_start - indent_end).max(1.0)) } else { None };
+            // Horizontal scale is applied after shaping, so paragraph text breaks at the box
+            // width divided by it (#5565). Mixed scales break at the largest, so no line
+            // overflows the box.
+            let break_scale = if is_box {
+                let si0 = style_at(prange.start);
+                (0..out.styles.len())
+                    .filter(|&ri| {
+                        let rs = run_starts.get(ri).copied().unwrap_or(0);
+                        let end = rs.saturating_add(runs.get(ri).map_or(0, |r| r.len));
+                        ri == si0 || (rs.max(prange.start) < end.min(content_end))
+                    })
+                    .filter_map(|ri| out.styles.get(ri))
+                    .map(effective_horizontal_scale)
+                    .fold(0.0f32, f32::max)
+            } else {
+                1.0
+            };
+            let break_scale = if break_scale > 0.0 { break_scale } else { 1.0 };
             let break_lines = |layout: &mut Layout<RunBrush>| {
                 if first_indent != 0.0 {
-                    layout.set_text_indent(first_indent, IndentOptions::default());
+                    layout.set_text_indent(first_indent / break_scale, IndentOptions::default());
                 }
-                layout.break_all_lines(avail);
+                layout.break_all_lines(avail.map(|a| a / break_scale));
             };
             // Paragraph text: a tab is never wider than a space plus one tab interval, so breaking
             // lines at that width keeps the expanded tabs inside the box, but can wrap early.
@@ -779,6 +799,7 @@ impl Layouter {
                             blank: first.is_none() || c.is_space_or_nbsp() || c.text_range().end <= prefix.len(),
                             upright: vertical && c.first_style().brush.1 != VClass::Rotate as u8,
                             advance: c.advance() * hs,
+                            growth: c.advance() * (hs - 1.0),
                             tab: tabs.binary_search(&c.text_range().start).is_ok(),
                         });
                     }
@@ -823,10 +844,15 @@ impl Layouter {
                 // moves the whole line).
                 let mut pos = indent_start + if li == 0 { first_indent } else { 0.0 };
                 let mut trailing_tabs = 0.0f32;
+                let mut trailing_growth = 0.0f32;
                 for (j, s) in slots.iter().enumerate() {
+                    // Trailing whitespace is outside the line's extent (`adv`).
+                    let trailing = s.blank && slots[j + 1..].iter().all(|n| n.blank);
+                    if trailing {
+                        trailing_growth += s.growth;
+                    }
                     if s.tab {
                         kern_px[j] = next_tab_stop(pos, tab_px) - pos - s.advance;
-                        // Trailing whitespace is outside the line's extent (`adv`).
                         if slots[j + 1..].iter().all(|n| n.blank) {
                             trailing_tabs += kern_px[j];
                         }
@@ -864,15 +890,18 @@ impl Layouter {
                 };
                 let dx = if is_box {
                     let base = line_origin + indent_start - kern_align;
-                    let slack = avail.unwrap_or(0.0) - adv - line_kern;
+                    let slack = avail.unwrap_or(0.0) - adv * break_scale - line_kern;
+                    // Parley aligned the unscaled line in `avail / break_scale`: scale its
+                    // indent and alignment offset back to the box.
+                    let scaled_offset = m.offset * (break_scale - 1.0);
                     base + if last_line {
                         match ps.align {
                             TextAlign::JustifyCenter => slack * 0.5 - m.offset,
                             TextAlign::JustifyRight => slack - m.offset,
-                            _ => 0.0,
+                            _ => scaled_offset,
                         }
                     } else {
-                        0.0
+                        scaled_offset
                     }
                 } else {
                     let target = match ps.align {
@@ -1037,7 +1066,7 @@ impl Layouter {
                     range: map(lr.start)..map(lr.end).min(content_end),
                     baseline,
                     x0,
-                    x1: x0 + adv + extra - trailing_tabs,
+                    x1: x0 + adv + extra - trailing_tabs - trailing_growth,
                     ascent,
                     descent,
                     paragraph: pi,
@@ -1049,6 +1078,11 @@ impl Layouter {
     }
 }
 
+/// A style's horizontal scale; unset (zero or negative) is 100%.
+fn effective_horizontal_scale(st: &CharStyle) -> f32 {
+    if st.horizontal_scale > 0.0 && st.horizontal_scale.is_finite() { st.horizontal_scale } else { 1.0 }
+}
+
 /// The first tab stop after `pos` (px from the anchor or box edge); stops are `interval` apart.
 fn next_tab_stop(pos: f32, interval: f32) -> f32 {
     if interval > 0.0 && pos.is_finite() { ((pos + 1e-3) / interval).floor() * interval + interval } else { pos }
diff --git a/crates/text/src/tests.rs b/crates/text/src/tests.rs
index 7afb4d6cd1..894ecf4e4f 100644
--- a/crates/text/src/tests.rs
+++ b/crates/text/src/tests.rs
@@ -272,6 +272,44 @@ fn box_text_wraps_inside_width() {
     assert_eq!(l2.lines.len(), 2);
 }
 
+/// #5565: paragraph text breaks at its horizontally scaled width. At 60% it breaks like 100%
+/// text in a box 1/0.6 as wide, and the lines fill the box instead of wrapping early.
+#[test]
+fn horizontal_scale_breaks_paragraph_lines_at_the_scaled_width() {
+    let mut e = TextEngine::new();
+    let text = "The quick brown fox jumps over the lazy dog again and again until the paragraph wraps";
+    let boxed = |scale: f32, width: f32, align: TextAlign| {
+        let style = CharStyle { font_family: "Inter".into(), size_pt: 12.0, horizontal_scale: scale, ..Default::default() };
+        let t = TextLayer { shape: TextShape::Box { x: 10.0, y: 0.0, width, height: 1000.0 }, ..styled(text, style) };
+        with_para(t, ParagraphStyle { align, ..Default::default() })
+    };
+    let ranges = |l: &crate::TextLayout| l.lines.iter().map(|ln| ln.range.clone()).collect::<Vec<_>>();
+    for scale in [0.6f32, 1.5] {
+        let scaled = e.layout(&boxed(scale, 120.0, TextAlign::Left), 72.0);
+        let plain = e.layout(&boxed(1.0, 120.0 / scale, TextAlign::Left), 72.0);
+        assert!(scaled.lines.len() > 1, "{scale}");
+        assert_eq!(ranges(&scaled), ranges(&plain), "{scale}: same breaks as unscaled text in the widened box");
+        for (li, ln) in scaled.lines.iter().enumerate() {
+            assert!(ln.x0 >= 10.0 - 1e-3 && ln.x1 <= 130.0 + 1e-3, "{scale}: {ln:?}");
+            // The extent ends at the last glyph, not after the scaled trailing space.
+            let ink = scaled.clusters.iter().filter(|c| c.line == li && !text[c.range.clone()].trim().is_empty());
+            assert!((ink.map(|c| c.x + c.advance).fold(0.0, f32::max) - ln.x1).abs() < 0.01, "{scale}: {ln:?}");
+        }
+    }
+    // At 60% the lines use the box: the first would not fit at 100%.
+    let scaled = e.layout(&boxed(0.6, 120.0, TextAlign::Left), 72.0);
+    assert!(scaled.lines[0].x1 > 110.0, "{:?}", scaled.lines[0]);
+    // Centred and right-aligned lines are placed by their scaled width.
+    let c = e.layout(&boxed(0.6, 120.0, TextAlign::Center), 72.0);
+    for ln in &c.lines {
+        assert!(((ln.x0 + ln.x1) * 0.5 - 70.0).abs() < 0.5, "{ln:?}");
+    }
+    let r = e.layout(&boxed(0.6, 120.0, TextAlign::Right), 72.0);
+    for ln in &r.lines {
+        assert!((ln.x1 - 130.0).abs() < 0.5, "{ln:?}");
+    }
+}
+
 #[test]
 fn alignment_point_and_box() {
     let mut e = TextEngine::new();