diff --git a/drivers/gles3/rasterizer_canvas_gles3.cpp b/drivers/gles3/rasterizer_canvas_gles3.cpp
index 941b1a1b2805..7a6df3d2a43d 100644
--- a/drivers/gles3/rasterizer_canvas_gles3.cpp
+++ b/drivers/gles3/rasterizer_canvas_gles3.cpp
@@ -647,18 +647,17 @@ void RasterizerCanvasGLES3::_render_items(RID p_to_render_target, int p_item_cou
 			_record_item_commands(ci, p_to_render_target, p_canvas_transform_inverse, current_clip, blend_mode, p_lights, index, batch_broken, r_sdf_used, Point2());
 		} else {
 			Point2 start_pos = ci->repeat_size * -(ci->repeat_times / 2);
-			Point2 end_pos = ci->repeat_size * ci->repeat_times + ci->repeat_size + start_pos;
-			Point2 pos = start_pos;
-
-			do {
-				do {
-					_record_item_commands(ci, p_to_render_target, p_canvas_transform_inverse, current_clip, blend_mode, p_lights, index, batch_broken, r_sdf_used, pos);
-					pos.y += ci->repeat_size.y;
-				} while (pos.y < end_pos.y);
-
-				pos.x += ci->repeat_size.x;
-				pos.y = start_pos.y;
-			} while (pos.x < end_pos.x);
+			Point2 offset;
+
+			int repeat_times_x = ci->repeat_size.x ? ci->repeat_times : 0;
+			int repeat_times_y = ci->repeat_size.y ? ci->repeat_times : 0;
+			for (int ry = 0; ry <= repeat_times_y; ry++) {
+				offset.y = start_pos.y + ry * ci->repeat_size.y;
+				for (int rx = 0; rx <= repeat_times_x; rx++) {
+					offset.x = start_pos.x + rx * ci->repeat_size.x;
+					_record_item_commands(ci, p_to_render_target, p_canvas_transform_inverse, current_clip, blend_mode, p_lights, index, batch_broken, r_sdf_used, offset);
+				}
+			}
 		}
 	}
 
@@ -809,7 +808,7 @@ void RasterizerCanvasGLES3::_render_items(RID p_to_render_target, int p_item_cou
 	state.last_item_index += index;
 }
 
-void RasterizerCanvasGLES3::_record_item_commands(const Item *p_item, RID p_render_target, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, GLES3::CanvasShaderData::BlendMode p_blend_mode, Light *p_lights, uint32_t &r_index, bool &r_batch_broken, bool &r_sdf_used, const Point2 &p_offset) {
+void RasterizerCanvasGLES3::_record_item_commands(const Item *p_item, RID p_render_target, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, GLES3::CanvasShaderData::BlendMode p_blend_mode, Light *p_lights, uint32_t &r_index, bool &r_batch_broken, bool &r_sdf_used, const Point2 &p_repeat_offset) {
 	RenderingServer::CanvasItemTextureFilter texture_filter = p_item->texture_filter == RS::CANVAS_ITEM_TEXTURE_FILTER_DEFAULT ? state.default_filter : p_item->texture_filter;
 
 	if (texture_filter != state.canvas_instance_batches[state.current_batch_index].filter) {
@@ -826,11 +825,11 @@ void RasterizerCanvasGLES3::_record_item_commands(const Item *p_item, RID p_rend
 		state.canvas_instance_batches[state.current_batch_index].repeat = texture_repeat;
 	}
 
-	Transform2D base_transform = p_canvas_transform_inverse * p_item->final_transform;
-
-	if (p_offset.x || p_offset.y) {
-		base_transform *= Transform2D(0, p_offset / p_item->xform_curr.get_scale()); // TODO: Interpolate or explain why not needed.
+	Transform2D base_transform = p_item->final_transform;
+	if (p_item->repeat_source_item && (p_repeat_offset.x || p_repeat_offset.y)) {
+		base_transform.columns[2] += p_item->repeat_source_item->final_transform.basis_xform(p_repeat_offset);
 	}
+	base_transform = p_canvas_transform_inverse * base_transform;
 
 	Transform2D draw_transform; // Used by transform command
 
diff --git a/drivers/gles3/rasterizer_canvas_gles3.h b/drivers/gles3/rasterizer_canvas_gles3.h
index 46ed479a3d6e..027f717eb7dd 100644
--- a/drivers/gles3/rasterizer_canvas_gles3.h
+++ b/drivers/gles3/rasterizer_canvas_gles3.h
@@ -362,7 +362,7 @@ class RasterizerCanvasGLES3 : public RendererCanvasRender {
 
 	void canvas_render_items(RID p_to_render_target, Item *p_item_list, const Color &p_modulate, Light *p_light_list, Light *p_directional_list, const Transform2D &p_canvas_transform, RS::CanvasItemTextureFilter p_default_filter, RS::CanvasItemTextureRepeat p_default_repeat, bool p_snap_2d_vertices_to_pixel, bool &r_sdf_used, RenderingMethod::RenderInfo *r_render_info = nullptr) override;
 	void _render_items(RID p_to_render_target, int p_item_count, const Transform2D &p_canvas_transform_inverse, Light *p_lights, bool &r_sdf_used, bool p_to_backbuffer = false, RenderingMethod::RenderInfo *r_render_info = nullptr);
-	void _record_item_commands(const Item *p_item, RID p_render_target, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, GLES3::CanvasShaderData::BlendMode p_blend_mode, Light *p_lights, uint32_t &r_index, bool &r_break_batch, bool &r_sdf_used, const Point2 &p_offset);
+	void _record_item_commands(const Item *p_item, RID p_render_target, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, GLES3::CanvasShaderData::BlendMode p_blend_mode, Light *p_lights, uint32_t &r_index, bool &r_break_batch, bool &r_sdf_used, const Point2 &p_repeat_offset);
 	void _render_batch(Light *p_lights, uint32_t p_index, RenderingMethod::RenderInfo *r_render_info = nullptr);
 	bool _bind_material(GLES3::CanvasMaterialData *p_material_data, CanvasShaderGLES3::ShaderVariant p_variant, uint64_t p_specialization);
 	void _new_batch(bool &r_batch_broken);
diff --git a/servers/rendering/renderer_canvas_cull.cpp b/servers/rendering/renderer_canvas_cull.cpp
index c4286dcc0c69..bed8a83e82a4 100644
--- a/servers/rendering/renderer_canvas_cull.cpp
+++ b/servers/rendering/renderer_canvas_cull.cpp
@@ -51,7 +51,7 @@ void RendererCanvasCull::_render_canvas_item_tree(RID p_to_render_target, Canvas
 	memset(z_last_list, 0, z_range * sizeof(RendererCanvasRender::Item *));
 
 	for (int i = 0; i < p_child_item_count; i++) {
-		_cull_canvas_item(p_child_items[i].item, p_transform, p_clip_rect, Color(1, 1, 1, 1), 0, z_list, z_last_list, nullptr, nullptr, true, p_canvas_cull_mask, p_child_items[i].mirror, 1);
+		_cull_canvas_item(p_child_items[i].item, p_transform, p_clip_rect, Color(1, 1, 1, 1), 0, z_list, z_last_list, nullptr, nullptr, true, p_canvas_cull_mask, p_child_items[i].mirror, 1, nullptr);
 	}
 
 	RendererCanvasRender::Item *list = nullptr;
@@ -97,6 +97,7 @@ void _collect_ysort_children(RendererCanvasCull::Item *p_canvas_item, const Tran
 				if (!child_items[i]->repeat_source) {
 					child_items[i]->repeat_size = p_canvas_item->repeat_size;
 					child_items[i]->repeat_times = p_canvas_item->repeat_times;
+					child_items[i]->repeat_source_item = p_canvas_item->repeat_source_item;
 				}
 
 				// Y sorted canvas items are flattened into r_items. Calculate their absolute z index to use when rendering r_items.
@@ -229,10 +230,13 @@ void RendererCanvasCull::_attach_canvas_item_for_draw(RendererCanvasCull::Item *
 
 			ci->visibility_notifier->visible_in_frame = RSG::rasterizer->get_frame_number();
 		}
+	} else if (ci->repeat_source) {
+		// If repeat source does not draw itself it still needs transform updated as its child items' repeat offsets are relative to it.
+		ci->final_transform = p_transform;
 	}
 }
 
-void RendererCanvasCull::_cull_canvas_item(Item *p_canvas_item, const Transform2D &p_parent_xform, const Rect2 &p_clip_rect, const Color &p_modulate, int p_z, RendererCanvasRender::Item **r_z_list, RendererCanvasRender::Item **r_z_last_list, Item *p_canvas_clip, Item *p_material_owner, bool p_allow_y_sort, uint32_t p_canvas_cull_mask, const Point2 &p_repeat_size, int p_repeat_times) {
+void RendererCanvasCull::_cull_canvas_item(Item *p_canvas_item, const Transform2D &p_parent_xform, const Rect2 &p_clip_rect, const Color &p_modulate, int p_z, RendererCanvasRender::Item **r_z_list, RendererCanvasRender::Item **r_z_last_list, Item *p_canvas_clip, Item *p_material_owner, bool p_allow_y_sort, uint32_t p_canvas_cull_mask, const Point2 &p_repeat_size, int p_repeat_times, RendererCanvasRender::Item *p_repeat_source_item) {
 	Item *ci = p_canvas_item;
 
 	if (!ci->visible) {
@@ -268,13 +272,16 @@ void RendererCanvasCull::_cull_canvas_item(Item *p_canvas_item, const Transform2
 
 	Point2 repeat_size = p_repeat_size;
 	int repeat_times = p_repeat_times;
+	RendererCanvasRender::Item *repeat_source_item = p_repeat_source_item;
 
 	if (ci->repeat_source) {
 		repeat_size = ci->repeat_size;
 		repeat_times = ci->repeat_times;
+		repeat_source_item = ci;
 	} else {
 		ci->repeat_size = repeat_size;
 		ci->repeat_times = repeat_times;
+		ci->repeat_source_item = repeat_source_item;
 	}
 
 	if (repeat_size.x || repeat_size.y) {
@@ -357,7 +364,7 @@ void RendererCanvasCull::_cull_canvas_item(Item *p_canvas_item, const Transform2
 			sorter.sort(child_items, child_item_count);
 
 			for (i = 0; i < child_item_count; i++) {
-				_cull_canvas_item(child_items[i], final_xform * child_items[i]->ysort_xform, p_clip_rect, modulate * child_items[i]->ysort_modulate, child_items[i]->ysort_parent_abs_z_index, r_z_list, r_z_last_list, (Item *)ci->final_clip_owner, (Item *)child_items[i]->material_owner, false, p_canvas_cull_mask, child_items[i]->repeat_size, child_items[i]->repeat_times);
+				_cull_canvas_item(child_items[i], final_xform * child_items[i]->ysort_xform, p_clip_rect, modulate * child_items[i]->ysort_modulate, child_items[i]->ysort_parent_abs_z_index, r_z_list, r_z_last_list, (Item *)ci->final_clip_owner, (Item *)child_items[i]->material_owner, false, p_canvas_cull_mask, child_items[i]->repeat_size, child_items[i]->repeat_times, child_items[i]->repeat_source_item);
 			}
 		} else {
 			RendererCanvasRender::Item *canvas_group_from = nullptr;
@@ -381,14 +388,14 @@ void RendererCanvasCull::_cull_canvas_item(Item *p_canvas_item, const Transform2
 			if (!child_items[i]->behind && !use_canvas_group) {
 				continue;
 			}
-			_cull_canvas_item(child_items[i], final_xform, p_clip_rect, modulate, p_z, r_z_list, r_z_last_list, (Item *)ci->final_clip_owner, p_material_owner, true, p_canvas_cull_mask, repeat_size, repeat_times);
+			_cull_canvas_item(child_items[i], final_xform, p_clip_rect, modulate, p_z, r_z_list, r_z_last_list, (Item *)ci->final_clip_owner, p_material_owner, true, p_canvas_cull_mask, repeat_size, repeat_times, repeat_source_item);
 		}
 		_attach_canvas_item_for_draw(ci, p_canvas_clip, r_z_list, r_z_last_list, final_xform, p_clip_rect, global_rect, modulate, p_z, p_material_owner, use_canvas_group, canvas_group_from);
 		for (int i = 0; i < child_item_count; i++) {
 			if (child_items[i]->behind || use_canvas_group) {
 				continue;
 			}
-			_cull_canvas_item(child_items[i], final_xform, p_clip_rect, modulate, p_z, r_z_list, r_z_last_list, (Item *)ci->final_clip_owner, p_material_owner, true, p_canvas_cull_mask, repeat_size, repeat_times);
+			_cull_canvas_item(child_items[i], final_xform, p_clip_rect, modulate, p_z, r_z_list, r_z_last_list, (Item *)ci->final_clip_owner, p_material_owner, true, p_canvas_cull_mask, repeat_size, repeat_times, repeat_source_item);
 		}
 	}
 }
@@ -435,10 +442,14 @@ void RendererCanvasCull::canvas_set_item_mirroring(RID p_canvas, RID p_item, con
 }
 
 void RendererCanvasCull::canvas_set_item_repeat(RID p_item, const Point2 &p_repeat_size, int p_repeat_times) {
+	ERR_FAIL_COND(p_repeat_size.x < 0 || p_repeat_size.y < 0);
+	ERR_FAIL_COND(p_repeat_times < 0);
 	Item *canvas_item = canvas_item_owner.get_or_null(p_item);
 	ERR_FAIL_NULL(canvas_item);
 
-	canvas_item->repeat_source = true;
+	bool is_repeat_source = (p_repeat_size.x || p_repeat_size.y) && p_repeat_times;
+	canvas_item->repeat_source = is_repeat_source;
+	canvas_item->repeat_source_item = is_repeat_source ? canvas_item : nullptr;
 	canvas_item->repeat_size = p_repeat_size;
 	canvas_item->repeat_times = p_repeat_times;
 }
diff --git a/servers/rendering/renderer_canvas_cull.h b/servers/rendering/renderer_canvas_cull.h
index 9f8cbea2e958..ce71a0b427ab 100644
--- a/servers/rendering/renderer_canvas_cull.h
+++ b/servers/rendering/renderer_canvas_cull.h
@@ -188,7 +188,7 @@ class RendererCanvasCull {
 
 private:
 	void _render_canvas_item_tree(RID p_to_render_target, Canvas::ChildItem *p_child_items, int p_child_item_count, const Transform2D &p_transform, const Rect2 &p_clip_rect, const Color &p_modulate, RendererCanvasRender::Light *p_lights, RendererCanvasRender::Light *p_directional_lights, RS::CanvasItemTextureFilter p_default_filter, RS::CanvasItemTextureRepeat p_default_repeat, bool p_snap_2d_vertices_to_pixel, uint32_t p_canvas_cull_mask, RenderingMethod::RenderInfo *r_render_info = nullptr);
-	void _cull_canvas_item(Item *p_canvas_item, const Transform2D &p_parent_xform, const Rect2 &p_clip_rect, const Color &p_modulate, int p_z, RendererCanvasRender::Item **r_z_list, RendererCanvasRender::Item **r_z_last_list, Item *p_canvas_clip, Item *p_material_owner, bool p_allow_y_sort, uint32_t p_canvas_cull_mask, const Point2 &p_repeat_size, int p_repeat_times);
+	void _cull_canvas_item(Item *p_canvas_item, const Transform2D &p_parent_xform, const Rect2 &p_clip_rect, const Color &p_modulate, int p_z, RendererCanvasRender::Item **r_z_list, RendererCanvasRender::Item **r_z_last_list, Item *p_canvas_clip, Item *p_material_owner, bool p_allow_y_sort, uint32_t p_canvas_cull_mask, const Point2 &p_repeat_size, int p_repeat_times, RendererCanvasRender::Item *p_repeat_source_item);
 
 	static constexpr int z_range = RS::CANVAS_ITEM_Z_MAX - RS::CANVAS_ITEM_Z_MIN + 1;
 
diff --git a/servers/rendering/renderer_canvas_render.h b/servers/rendering/renderer_canvas_render.h
index cb8180f9895e..c57abee1659f 100644
--- a/servers/rendering/renderer_canvas_render.h
+++ b/servers/rendering/renderer_canvas_render.h
@@ -364,6 +364,7 @@ class RendererCanvasRender {
 		bool repeat_source;
 		Point2 repeat_size;
 		int repeat_times = 1;
+		Item *repeat_source_item = nullptr;
 
 		Rect2 global_rect_cache;
 
diff --git a/servers/rendering/renderer_rd/renderer_canvas_render_rd.cpp b/servers/rendering/renderer_rd/renderer_canvas_render_rd.cpp
index 5c68fb82b1fd..5e4721dfb51d 100644
--- a/servers/rendering/renderer_rd/renderer_canvas_render_rd.cpp
+++ b/servers/rendering/renderer_rd/renderer_canvas_render_rd.cpp
@@ -407,7 +407,7 @@ _FORCE_INLINE_ static uint32_t _indices_to_primitives(RS::PrimitiveType p_primit
 	return (p_indices - subtractor[p_primitive]) / divisor[p_primitive];
 }
 
-void RendererCanvasRenderRD::_render_item(RD::DrawListID p_draw_list, RID p_render_target, const Item *p_item, RD::FramebufferFormatID p_framebuffer_format, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, Light *p_lights, PipelineVariants *p_pipeline_variants, bool &r_sdf_used, const Point2 &p_offset, RenderingMethod::RenderInfo *r_render_info) {
+void RendererCanvasRenderRD::_render_item(RD::DrawListID p_draw_list, RID p_render_target, const Item *p_item, RD::FramebufferFormatID p_framebuffer_format, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, Light *p_lights, PipelineVariants *p_pipeline_variants, bool &r_sdf_used, const Point2 &p_repeat_offset, RenderingMethod::RenderInfo *r_render_info) {
 	//create an empty push constant
 	RendererRD::TextureStorage *texture_storage = RendererRD::TextureStorage::get_singleton();
 	RendererRD::MeshStorage *mesh_storage = RendererRD::MeshStorage::get_singleton();
@@ -425,11 +425,11 @@ void RendererCanvasRenderRD::_render_item(RD::DrawListID p_draw_list, RID p_rend
 	}
 
 	PushConstant push_constant;
-	Transform2D base_transform = p_canvas_transform_inverse * p_item->final_transform;
-
-	if (p_offset.x || p_offset.y) {
-		base_transform *= Transform2D(0, p_offset / p_item->xform_curr.get_scale()); // TODO: Interpolate or explain why not needed.
+	Transform2D base_transform = p_item->final_transform;
+	if (p_item->repeat_source_item && (p_repeat_offset.x || p_repeat_offset.y)) {
+		base_transform.columns[2] += p_item->repeat_source_item->final_transform.basis_xform(p_repeat_offset);
 	}
+	base_transform = p_canvas_transform_inverse * base_transform;
 
 	Transform2D draw_transform;
 	_update_transform_2d_to_mat2x3(base_transform, push_constant.world);
@@ -1250,18 +1250,17 @@ void RendererCanvasRenderRD::_render_items(RID p_to_render_target, int p_item_co
 			_render_item(draw_list, p_to_render_target, ci, fb_format, canvas_transform_inverse, current_clip, p_lights, pipeline_variants, r_sdf_used, Point2(), r_render_info);
 		} else {
 			Point2 start_pos = ci->repeat_size * -(ci->repeat_times / 2);
-			Point2 end_pos = ci->repeat_size * ci->repeat_times + ci->repeat_size + start_pos;
-			Point2 pos = start_pos;
-
-			do {
-				do {
-					_render_item(draw_list, p_to_render_target, ci, fb_format, canvas_transform_inverse, current_clip, p_lights, pipeline_variants, r_sdf_used, pos, r_render_info);
-					pos.y += ci->repeat_size.y;
-				} while (pos.y < end_pos.y);
-
-				pos.x += ci->repeat_size.x;
-				pos.y = start_pos.y;
-			} while (pos.x < end_pos.x);
+			Point2 offset;
+
+			int repeat_times_x = ci->repeat_size.x ? ci->repeat_times : 0;
+			int repeat_times_y = ci->repeat_size.y ? ci->repeat_times : 0;
+			for (int ry = 0; ry <= repeat_times_y; ry++) {
+				offset.y = start_pos.y + ry * ci->repeat_size.y;
+				for (int rx = 0; rx <= repeat_times_x; rx++) {
+					offset.x = start_pos.x + rx * ci->repeat_size.x;
+					_render_item(draw_list, p_to_render_target, ci, fb_format, canvas_transform_inverse, current_clip, p_lights, pipeline_variants, r_sdf_used, offset, r_render_info);
+				}
+			}
 		}
 
 		prev_material = material;
diff --git a/servers/rendering/renderer_rd/renderer_canvas_render_rd.h b/servers/rendering/renderer_rd/renderer_canvas_render_rd.h
index a78ced271a03..9deb4814c71d 100644
--- a/servers/rendering/renderer_rd/renderer_canvas_render_rd.h
+++ b/servers/rendering/renderer_rd/renderer_canvas_render_rd.h
@@ -423,7 +423,7 @@ class RendererCanvasRenderRD : public RendererCanvasRender {
 	double debug_redraw_time = 1.0;
 
 	inline void _bind_canvas_texture(RD::DrawListID p_draw_list, RID p_texture, RS::CanvasItemTextureFilter p_base_filter, RS::CanvasItemTextureRepeat p_base_repeat, RID &r_last_texture, PushConstant &push_constant, Size2 &r_texpixel_size, bool p_texture_is_data = false); //recursive, so regular inline used instead.
-	void _render_item(RenderingDevice::DrawListID p_draw_list, RID p_render_target, const Item *p_item, RenderingDevice::FramebufferFormatID p_framebuffer_format, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, Light *p_lights, PipelineVariants *p_pipeline_variants, bool &r_sdf_used, const Point2 &p_offset, RenderingMethod::RenderInfo *r_render_info = nullptr);
+	void _render_item(RenderingDevice::DrawListID p_draw_list, RID p_render_target, const Item *p_item, RenderingDevice::FramebufferFormatID p_framebuffer_format, const Transform2D &p_canvas_transform_inverse, Item *&current_clip, Light *p_lights, PipelineVariants *p_pipeline_variants, bool &r_sdf_used, const Point2 &p_repeat_offset, RenderingMethod::RenderInfo *r_render_info = nullptr);
 	void _render_items(RID p_to_render_target, int p_item_count, const Transform2D &p_canvas_transform_inverse, Light *p_lights, bool &r_sdf_used, bool p_to_backbuffer = false, RenderingMethod::RenderInfo *r_render_info = nullptr);
 
 	_FORCE_INLINE_ void _update_transform_2d_to_mat2x4(const Transform2D &p_transform, float *p_mat2x4);