diff --git a/crates/engine/src/cmd/object.rs b/crates/engine/src/cmd/object.rs
index 22ef28d13..c4cf27198 100644
--- a/crates/engine/src/cmd/object.rs
+++ b/crates/engine/src/cmd/object.rs
@@ -1804,7 +1804,7 @@ fn distribute_spacing(s: &mut Session, p: &Value) -> Result<Value> {
 }
 
 fn set_bounds(s: &mut Session, p: &Value) -> Result<Value> {
-    match bounds_transform(s, p, selected_roots(s)?, 0.0)? {
+    match bounds_transform(s, p, selected_roots_to_transform(s)?, 0.0)? {
         Bounds::Anchors(ids, b) => set_anchor_bounds(s, p, ids, b),
         Bounds::Objects(ids, xf) => apply_transform(s, "Transform", ids, xf, p, false),
     }
diff --git a/crates/engine/src/tests.rs b/crates/engine/src/tests.rs
index a96733cb4..a203ed6d0 100644
--- a/crates/engine/src/tests.rs
+++ b/crates/engine/src/tests.rs
@@ -2451,6 +2451,34 @@ fn an_isolated_compound_paths_member_moves_alone() {
     assert_eq!((x0(&s, outer), x0(&s, hole)), (5.0, 55.0), "the compound path selected: the whole ring");
 }
 
+/// The X, Y, W and H of the Properties and Transform panels run `object.setBounds`, which takes the
+/// same objects as the other transforms: a path of a compound path selected alone sets its own
+/// box and leaves the ring around it (#4046). The hole is off-centre, and a plain rectangle
+/// outside the ring keeps "everything moved" from passing.
+#[test]
+fn set_bounds_of_a_compound_paths_member_sets_only_that_path() {
+    let x = |s: &Session, id: NodeId| {
+        let b = s.doc().unwrap().doc.node(id).unwrap().geometric_bounds().unwrap();
+        (b.x0, b.x1)
+    };
+    let mut s = session();
+    let (c, outer, hole) = isolated_ring(&mut s);
+    let other = rect(&mut s, 100.0, 0.0, 10.0, 10.0);
+    s.execute("select.set", &json!({"ids": [hole.0]})).unwrap();
+    s.execute("object.setBounds", &json!({"width": 20, "reference": 0})).unwrap();
+    assert_eq!((x(&s, outer), x(&s, hole)), ((0.0, 40.0), (10.0, 30.0)), "isolated: only the hole is wider");
+    s.execute("object.setBounds", &json!({"x": 25, "reference": 0})).unwrap();
+    assert_eq!((x(&s, outer), x(&s, hole)), ((0.0, 40.0), (25.0, 45.0)), "isolated: only the hole moved");
+    s.execute("object.exitIsolation", &json!({})).unwrap();
+    s.execute("select.set", &json!({"ids": [hole.0]})).unwrap();
+    s.execute("object.setBounds", &json!({"x": 12, "reference": 0})).unwrap();
+    assert_eq!((x(&s, outer), x(&s, hole)), ((0.0, 40.0), (12.0, 32.0)), "not isolated: still only the hole");
+    s.execute("select.set", &json!({"ids": [c.0]})).unwrap();
+    s.execute("object.setBounds", &json!({"x": 5, "reference": 0})).unwrap();
+    assert_eq!((x(&s, outer), x(&s, hole)), ((5.0, 45.0), (17.0, 37.0)), "the compound path selected: the whole ring");
+    assert_eq!(x(&s, other), (100.0, 110.0), "the rectangle outside never moves");
+}
+
 /// `depth` and `childLimit` slice a summary read; a level that shows fewer children
 /// than it has reports `childCount`, and invalid values are rejected, not reinterpreted.
 #[test]