diff --git a/libs/hwui/SkiaShader.cpp b/libs/hwui/SkiaShader.cpp
index 9013fd5..c38eedb 100644
--- a/libs/hwui/SkiaShader.cpp
+++ b/libs/hwui/SkiaShader.cpp
@@ -411,8 +411,14 @@
 
 void SkiaComposeShader::setupProgram(Program* program, const mat4& modelView,
         const Snapshot& snapshot, GLuint* textureUnit) {
-    mFirst->setupProgram(program, modelView, snapshot, textureUnit);
-    mSecond->setupProgram(program, modelView, snapshot, textureUnit);
+    // Apply this compose shader's local transform and pass it down to
+    // the child shaders. They will in turn apply their local transform
+    // to this matrix.
+    mat4 transform;
+    computeScreenSpaceMatrix(transform, modelView);
+
+    mFirst->setupProgram(program, transform, snapshot, textureUnit);
+    mSecond->setupProgram(program, transform, snapshot, textureUnit);
 }
 
 }; // namespace uirenderer
diff --git a/tests/HwAccelerationTest/src/com/android/test/hwui/MoreShadersActivity.java b/tests/HwAccelerationTest/src/com/android/test/hwui/MoreShadersActivity.java
index 02cb4b6..1847f43 100644
--- a/tests/HwAccelerationTest/src/com/android/test/hwui/MoreShadersActivity.java
+++ b/tests/HwAccelerationTest/src/com/android/test/hwui/MoreShadersActivity.java
@@ -57,6 +57,7 @@
         private Paint mLargePaint;
         private BitmapShader mScaled2Shader;
         private ColorFilter mColorFilter;
+        private final Matrix mMtx1;
 
         ShadersView(Context c) {
             super(c);
@@ -70,7 +71,7 @@
             mScaledShader = new BitmapShader(texture, Shader.TileMode.MIRROR,
                     Shader.TileMode.MIRROR);
             Matrix m2 = new Matrix();
-            m2.setScale(0.5f, 0.5f);
+            m2.setScale(0.1f, 0.1f);
             mScaledShader.setLocalMatrix(m2);
             
             mScaled2Shader = new BitmapShader(texture, Shader.TileMode.MIRROR,
@@ -81,12 +82,20 @@
 
             mHorGradient = new LinearGradient(0.0f, 0.0f, mDrawWidth, 0.0f,
                     Color.RED, 0x7f00ff00, Shader.TileMode.CLAMP);
-            
+            Matrix m4 = new Matrix();
+            m4.setScale(0.5f, 0.5f);
+            mHorGradient.setLocalMatrix(m4);
+
             mVertGradient = new LinearGradient(0.0f, 0.0f, 0.0f, mDrawHeight / 2.0f,
                     Color.YELLOW, Color.MAGENTA, Shader.TileMode.MIRROR);
 
             mComposeShader = new ComposeShader(mScaledShader, mHorGradient,
                     PorterDuff.Mode.SRC_OVER);
+            mMtx1 = new Matrix();
+            mMtx1.setTranslate(mTexWidth / 2.0f, mTexHeight / 2.0f);
+            mMtx1.postRotate(45, 0, 0);
+            mComposeShader.setLocalMatrix(mMtx1);
+
             mCompose2Shader = new ComposeShader(mHorGradient, mScaledShader,
                     PorterDuff.Mode.SRC_OUT);