diff --git a/frontend-react/src/App.tsx b/frontend-react/src/App.tsx
index 88d33e0..7cd90dc 100644
--- a/frontend-react/src/App.tsx
+++ b/frontend-react/src/App.tsx
@@ -133,7 +133,7 @@ export function App() {
       switch (action.id) {
         case "compile":
           {
-            const result = await compile(payload);
+            const result = await compile(payload, { preserve_placement: true });
             actionsApi.setCompileResult(result);
           }
           break;
diff --git a/src/layout.js b/src/layout.js
index a4bfd96..1b72928 100644
--- a/src/layout.js
+++ b/src/layout.js
@@ -2404,9 +2404,9 @@ function layoutAndRouteNative(model, options = {}) {
   const renderMode = options.render_mode === "explicit" ? "explicit" : DEFAULT_RENDER_MODE;
   const respectLocks = options.respect_locks ?? true;
   const autoRotate = options.auto_rotate ?? true;
-  const preservePlacement = options.preserve_placement === true;
+  const preservePlacement = options.preserve_placement !== false;
   const placed = preservePlacement
-    ? preservePlacedInstances(model, { respectLocks, autoRotate: false })
+    ? preservePlacedInstances(model, { respectLocks, autoRotate })
     : placeInstances(model, { respectLocks, autoRotate }).placed;
   const placedMap = new Map(placed.map((inst) => [inst.ref, inst]));
   const bounds = buildBounds(model, placed);
diff --git a/src/server.js b/src/server.js
index 8ce0d9f..f288981 100644
--- a/src/server.js
+++ b/src/server.js
@@ -339,7 +339,12 @@ export function createRequestHandler() {
         api_version: API_VERSION,
         schema_version: SCHEMA_VERSION,
         model: laidOut,
-        compile: withEnvelopeMeta(compile(laidOut, parsed.options))
+        compile: withEnvelopeMeta(
+          compile(laidOut, {
+            ...(parsed.options ?? {}),
+            preserve_placement: true
+          })
+        )
       });
     } catch (err) {
       if (err?.code === "PAYLOAD_TOO_LARGE") {
@@ -372,7 +377,12 @@ export function createRequestHandler() {
         api_version: API_VERSION,
         schema_version: SCHEMA_VERSION,
         model: laidOut,
-        compile: withEnvelopeMeta(compile(laidOut, parsed.options))
+        compile: withEnvelopeMeta(
+          compile(laidOut, {
+            ...(parsed.options ?? {}),
+            preserve_placement: true
+          })
+        )
       });
     } catch (err) {
       if (err?.code === "PAYLOAD_TOO_LARGE") {
diff --git a/tests/baselines/ui/dense-analog.png b/tests/baselines/ui/dense-analog.png
index 09245a8..2e9de6f 100644
Binary files a/tests/baselines/ui/dense-analog.png and b/tests/baselines/ui/dense-analog.png differ
diff --git a/tests/baselines/ui/explicit-mode-auto-tidy.png b/tests/baselines/ui/explicit-mode-auto-tidy.png
index a476e08..11f1709 100644
Binary files a/tests/baselines/ui/explicit-mode-auto-tidy.png and b/tests/baselines/ui/explicit-mode-auto-tidy.png differ
diff --git a/tests/baselines/ui/laptop-viewport.png b/tests/baselines/ui/laptop-viewport.png
index ae2aea7..bdd6edf 100644
Binary files a/tests/baselines/ui/laptop-viewport.png and b/tests/baselines/ui/laptop-viewport.png differ
diff --git a/tests/baselines/ui/post-migration-apply.png b/tests/baselines/ui/post-migration-apply.png
index 97b09b7..dffd89f 100644
Binary files a/tests/baselines/ui/post-migration-apply.png and b/tests/baselines/ui/post-migration-apply.png differ