diff --git a/lib/OpenLayers/Layer/Grid.js b/lib/OpenLayers/Layer/Grid.js
index f23ccee3a2..99d8814d52 100644
--- a/lib/OpenLayers/Layer/Grid.js
+++ b/lib/OpenLayers/Layer/Grid.js
@@ -718,19 +718,18 @@ OpenLayers.Layer.Grid = OpenLayers.Class(OpenLayers.Layer.HTTPRequest, {
      */
     initSingleTile: function(bounds) {
         this.clearTileQueue();
-        //determine if a maxExtent restriction exists
-        var maxExt = this.maxExtent || this.map.getMaxExtent() || this.map.maxExtent;
-        
+
         //determine new tile bounds
         var tileWidth, tileHeight, tileBounds;
         var center = bounds.getCenterLonLat();
+
         //adjust tile bounds to fit in maxExtent restriction
-        //if it is an overlay and there is a maxExtent restriction
-        if(this != this.map.baseLayer && maxExt && bounds.containsBounds(maxExt)) {
-            bounds.bottom = Math.max(maxExt.bottom, bounds.bottom);
-            bounds.top = Math.min(maxExt.top, bounds.top);
-            bounds.left = Math.max(maxExt.left, bounds.left);
-            bounds.right = Math.min(maxExt.right, bounds.right);
+        //if there is a maxExtent restriction
+        if(this.maxExtent && bounds.containsBounds(this.maxExtent, true)) {
+            bounds.bottom = Math.max(this.maxExtent.bottom, bounds.bottom);
+            bounds.top = Math.min(this.maxExtent.top, bounds.top);
+            bounds.left = Math.max(this.maxExtent.left, bounds.left);
+            bounds.right = Math.min(this.maxExtent.right, bounds.right);
             tileWidth = bounds.getWidth();
             tileHeight = bounds.getHeight();
             tileBounds = bounds;
@@ -742,10 +741,10 @@ OpenLayers.Layer.Grid = OpenLayers.Class(OpenLayers.Layer.HTTPRequest, {
                 lon : tileBounds.right,
                 lat : tileBounds.top
             });
-            this.tileSize = {
-                h : Math.abs(trPx.y - blPx.y),
-                w : Math.abs(trPx.x - blPx.x)
-            };
+            this.tileSize = new OpenLayers.Size(
+                Math.abs(trPx.x - blPx.x),
+                Math.abs(trPx.y - blPx.y)
+            );
             this._resetTileSize = true;
         }
         else {
@@ -760,6 +759,7 @@ OpenLayers.Layer.Grid = OpenLayers.Class(OpenLayers.Layer.HTTPRequest, {
                 );
             if(this._resetTileSize === true) {
                 this.setTileSize();
+                delete this._resetTileSize;
             }
         }
         var px = this.map.getLayerPxFromLonLat({
diff --git a/tests/Layer/Grid.html b/tests/Layer/Grid.html
index 34abdea092..1fc02c8a7a 100644
--- a/tests/Layer/Grid.html
+++ b/tests/Layer/Grid.html
@@ -449,7 +449,7 @@
     }
     
     function test_Layer_Grid_initSingleTile(t) {
-      t.plan( 11 );
+      t.plan( 19 );
       
         layer = new OpenLayers.Layer.Grid(name, url, params, {
             singleTile: true,
@@ -501,8 +501,46 @@
             }
         }; 
         layer.grid = [[ tile ]];
-        layer.initSingleTile(bounds);       
-      
+        layer.initSingleTile(bounds);
+        
+        //test maxExtent restrictions
+        //reset grid
+        layer.grid = [];
+        //more useful mocks
+        layer.map = {
+            getLayerPxFromLonLat: function(ul) {
+            	return {
+            		x:ul.lon, 
+            		y:ul.lat
+        		};
+        	},
+        	getResolution:function(){return 1;}
+    	};
+    	layer.addTile = function(tileBounds, px) {
+            t.ok(tileBounds.equals(desiredTileBounds), "correct tile bounds passed to addTile to create new tile");
+            t.ok(px.x == translatedPX.x && px.y == translatedPX.y, "correct tile px passed to addTile to create new tile");
+            return newTile;
+        };
+        tile = { 
+            moveTo: function(tileBounds, px) {
+                t.ok(tileBounds.equals(desiredTileBounds), "correct tile bounds passed to tile.moveTo()");
+                t.ok(px.x == translatedPX.x && px.y == translatedPX.y, "correct tile px passed to tile.moveTo()");
+            }
+        };
+    	//test bound fully contains the maxExtent
+    	//tile bounds -10,10,50,100
+    	layer.maxExtent = new OpenLayers.Bounds(0,20,40,90);
+    	desiredTileBounds = new OpenLayers.Bounds(0,20,40,90);
+        translatedPX = {x:0,y:90};
+    	layer.initSingleTile(bounds);       
+        
+        //test bound overlaps the maxExtent
+        bounds = new OpenLayers.Bounds(-10,10,50,100);
+        layer.maxExtent = new OpenLayers.Bounds(-30,20,40,110);
+    	desiredTileBounds = new OpenLayers.Bounds(-10,20,40,100);
+        translatedPX = {x:-10,y:100};
+        layer.grid = [[ tile ]];
+    	layer.initSingleTile(bounds);
     }  
      
     function test_Layer_Grid_addTileMonitoringHooks(t) {