diff --git a/components/layout_2020/display_list/stacking_context.rs b/components/layout_2020/display_list/stacking_context.rs
index bdca1e5d77a..504725ae7c5 100644
--- a/components/layout_2020/display_list/stacking_context.rs
+++ b/components/layout_2020/display_list/stacking_context.rs
@@ -474,7 +474,7 @@ impl StackingContext {
         if effects.filter.0.is_empty() &&
             effects.opacity == 1.0 &&
             effects.mix_blend_mode == ComputedMixBlendMode::Normal &&
-            !style.has_transform_or_perspective()
+            !style.has_transform_or_perspective(FragmentFlags::empty())
         {
             return false;
         }
@@ -896,7 +896,7 @@ struct ReferenceFrameData {
 
 impl BoxFragment {
     fn get_stacking_context_type(&self) -> Option<StackingContextType> {
-        if self.style.establishes_stacking_context() {
+        if self.style.establishes_stacking_context(self.base.flags) {
             return Some(StackingContextType::RealStackingContext);
         }
 
@@ -986,7 +986,7 @@ impl BoxFragment {
         // properties will be replaced before recursing into children.
         assert!(self
             .style
-            .establishes_containing_block_for_all_descendants());
+            .establishes_containing_block_for_all_descendants(self.base.flags));
         let adjusted_containing_block = ContainingBlock::new(
             containing_block
                 .rect
@@ -1168,7 +1168,7 @@ impl BoxFragment {
         // absolute and fixed descendants.
         let new_containing_block_info = if self
             .style
-            .establishes_containing_block_for_all_descendants()
+            .establishes_containing_block_for_all_descendants(self.base.flags)
         {
             containing_block_info.new_for_absolute_and_fixed_descendants(
                 &for_non_absolute_descendants,
@@ -1176,7 +1176,7 @@ impl BoxFragment {
             )
         } else if self
             .style
-            .establishes_containing_block_for_absolute_descendants()
+            .establishes_containing_block_for_absolute_descendants(self.base.flags)
         {
             containing_block_info.new_for_absolute_descendants(
                 &for_non_absolute_descendants,
@@ -1389,7 +1389,7 @@ impl BoxFragment {
         &self,
         containing_block_rect: &PhysicalRect<Length>,
     ) -> Option<ReferenceFrameData> {
-        if !self.style.has_transform_or_perspective() {
+        if !self.style.has_transform_or_perspective(self.base.flags) {
             return None;
         }
 
diff --git a/components/layout_2020/formatting_contexts.rs b/components/layout_2020/formatting_contexts.rs
index 347e88ad96e..1b15baa7eca 100644
--- a/components/layout_2020/formatting_contexts.rs
+++ b/components/layout_2020/formatting_contexts.rs
@@ -16,7 +16,7 @@ use crate::dom::NodeExt;
 use crate::dom_traversal::{Contents, NodeAndStyleInfo};
 use crate::flexbox::FlexContainer;
 use crate::flow::BlockFormattingContext;
-use crate::fragment_tree::{BaseFragmentInfo, Fragment};
+use crate::fragment_tree::{BaseFragmentInfo, Fragment, FragmentFlags};
 use crate::positioned::PositioningContext;
 use crate::replaced::ReplacedContent;
 use crate::sizing::{self, ContentSizes};
@@ -131,11 +131,15 @@ impl IndependentFormattingContext {
                     contents,
                 })
             },
-            Err(contents) => Self::Replaced(ReplacedFormattingContext {
-                base_fragment_info: node_and_style_info.into(),
-                style: Arc::clone(&node_and_style_info.style),
-                contents,
-            }),
+            Err(contents) => {
+                let mut base_fragment_info: BaseFragmentInfo = node_and_style_info.into();
+                base_fragment_info.flags.insert(FragmentFlags::IS_REPLACED);
+                Self::Replaced(ReplacedFormattingContext {
+                    base_fragment_info,
+                    style: Arc::clone(&node_and_style_info.style),
+                    contents,
+                })
+            },
         }
     }
 
diff --git a/components/layout_2020/fragment_tree/base_fragment.rs b/components/layout_2020/fragment_tree/base_fragment.rs
index ac29bcc976d..b5e7fb3fbc5 100644
--- a/components/layout_2020/fragment_tree/base_fragment.rs
+++ b/components/layout_2020/fragment_tree/base_fragment.rs
@@ -88,6 +88,9 @@ bitflags! {
         const IS_BODY_ELEMENT_OF_HTML_ELEMENT_ROOT = 0b00000001;
         /// Whether or not the node that created this Fragment is a `<br>` element.
         const IS_BR_ELEMENT = 0b00000010;
+        /// Whether or not this Fragment was created to contain a replaced element or is
+        /// a replaced element.
+        const IS_REPLACED = 0b00000100;
     }
 }
 
diff --git a/components/layout_2020/fragment_tree/fragment.rs b/components/layout_2020/fragment_tree/fragment.rs
index 151a004aa13..b13fab0ddd4 100644
--- a/components/layout_2020/fragment_tree/fragment.rs
+++ b/components/layout_2020/fragment_tree/fragment.rs
@@ -192,12 +192,12 @@ impl Fragment {
                     .translate(containing_block.origin.to_vector());
                 let new_manager = if fragment
                     .style
-                    .establishes_containing_block_for_all_descendants()
+                    .establishes_containing_block_for_all_descendants(fragment.base.flags)
                 {
                     manager.new_for_absolute_and_fixed_descendants(&content_rect, &padding_rect)
                 } else if fragment
                     .style
-                    .establishes_containing_block_for_absolute_descendants()
+                    .establishes_containing_block_for_absolute_descendants(fragment.base.flags)
                 {
                     manager.new_for_absolute_descendants(&content_rect, &padding_rect)
                 } else {
diff --git a/components/layout_2020/positioned.rs b/components/layout_2020/positioned.rs
index 024f1ed5399..0b26e8638dd 100644
--- a/components/layout_2020/positioned.rs
+++ b/components/layout_2020/positioned.rs
@@ -18,7 +18,8 @@ use crate::dom::NodeExt;
 use crate::dom_traversal::{Contents, NodeAndStyleInfo};
 use crate::formatting_contexts::IndependentFormattingContext;
 use crate::fragment_tree::{
-    AbsoluteBoxOffsets, BoxFragment, CollapsedBlockMargins, Fragment, HoistedSharedFragment,
+    AbsoluteBoxOffsets, BoxFragment, CollapsedBlockMargins, Fragment, FragmentFlags,
+    HoistedSharedFragment,
 };
 use crate::geom::{
     AuOrAuto, LengthOrAuto, LengthPercentageOrAuto, LogicalRect, LogicalSides, LogicalVec2,
@@ -144,9 +145,13 @@ impl PositioningContext {
     }
 
     pub(crate) fn new_for_style(style: &ComputedValues) -> Option<Self> {
-        if style.establishes_containing_block_for_all_descendants() {
+        // NB: We never make PositioningContexts for replaced elements, which is why we always
+        // pass false here.
+        if style.establishes_containing_block_for_all_descendants(FragmentFlags::empty()) {
             Some(Self::new_for_containing_block_for_all_descendants())
-        } else if style.establishes_containing_block_for_absolute_descendants() {
+        } else if style
+            .establishes_containing_block_for_absolute_descendants(FragmentFlags::empty())
+        {
             Some(Self {
                 for_nearest_positioned_ancestor: Some(Vec::new()),
                 for_nearest_containing_block_for_all_descendants: Vec::new(),
diff --git a/components/layout_2020/style_ext.rs b/components/layout_2020/style_ext.rs
index 243b6bf3083..3430d2ffd8b 100644
--- a/components/layout_2020/style_ext.rs
+++ b/components/layout_2020/style_ext.rs
@@ -20,6 +20,7 @@ use style::Zero;
 use webrender_api as wr;
 
 use crate::dom_traversal::Contents;
+use crate::fragment_tree::FragmentFlags;
 use crate::geom::{
     AuOrAuto, LengthOrAuto, LengthPercentageOrAuto, LogicalSides, LogicalVec2, PhysicalSides,
     PhysicalSize,
@@ -179,13 +180,19 @@ pub(crate) trait ComputedValuesExt {
         &self,
         containing_block_writing_mode: WritingMode,
     ) -> LogicalSides<LengthPercentageOrAuto<'_>>;
-    fn has_transform_or_perspective(&self) -> bool;
+    fn has_transform_or_perspective(&self, fragment_flags: FragmentFlags) -> bool;
     fn effective_z_index(&self) -> i32;
     fn establishes_block_formatting_context(&self) -> bool;
-    fn establishes_stacking_context(&self) -> bool;
+    fn establishes_stacking_context(&self, fragment_flags: FragmentFlags) -> bool;
     fn establishes_scroll_container(&self) -> bool;
-    fn establishes_containing_block_for_absolute_descendants(&self) -> bool;
-    fn establishes_containing_block_for_all_descendants(&self) -> bool;
+    fn establishes_containing_block_for_absolute_descendants(
+        &self,
+        fragment_flags: FragmentFlags,
+    ) -> bool;
+    fn establishes_containing_block_for_all_descendants(
+        &self,
+        fragment_flags: FragmentFlags,
+    ) -> bool;
     fn background_is_transparent(&self) -> bool;
     fn get_webrender_primitive_flags(&self) -> wr::PrimitiveFlags;
 }
@@ -411,7 +418,7 @@ impl ComputedValuesExt for ComputedValues {
 
     /// Returns true if this style has a transform, or perspective property set and
     /// it applies to this element.
-    fn has_transform_or_perspective(&self) -> bool {
+    fn has_transform_or_perspective(&self, fragment_flags: FragmentFlags) -> bool {
         // "A transformable element is an element in one of these categories:
         //   * all elements whose layout is governed by the CSS box model except for
         //     non-replaced inline boxes, table-column boxes, and table-column-group
@@ -420,8 +427,9 @@ impl ComputedValuesExt for ComputedValues {
         //     elements with the exception of any descendant element of text content
         //     elements."
         // https://drafts.csswg.org/css-transforms/#transformable-element
-        // FIXME(mrobinson): Properly handle tables and replaced elements here.
-        if self.get_box().display.is_inline_flow() {
+        if self.get_box().display.is_inline_flow() &&
+            !fragment_flags.contains(FragmentFlags::IS_REPLACED)
+        {
             return false;
         }
 
@@ -464,7 +472,7 @@ impl ComputedValuesExt for ComputedValues {
     }
 
     /// Returns true if this fragment establishes a new stacking context and false otherwise.
-    fn establishes_stacking_context(&self) -> bool {
+    fn establishes_stacking_context(&self, fragment_flags: FragmentFlags) -> bool {
         let effects = self.get_effects();
         if effects.opacity != 1.0 {
             return true;
@@ -474,7 +482,7 @@ impl ComputedValuesExt for ComputedValues {
             return true;
         }
 
-        if self.has_transform_or_perspective() {
+        if self.has_transform_or_perspective(fragment_flags) {
             return true;
         }
 
@@ -513,8 +521,11 @@ impl ComputedValuesExt for ComputedValues {
     /// descendants) this method will return true, but a true return value does
     /// not imply that the style establishes a containing block for all descendants.
     /// Use `establishes_containing_block_for_all_descendants()` instead.
-    fn establishes_containing_block_for_absolute_descendants(&self) -> bool {
-        if self.establishes_containing_block_for_all_descendants() {
+    fn establishes_containing_block_for_absolute_descendants(
+        &self,
+        fragment_flags: FragmentFlags,
+    ) -> bool {
+        if self.establishes_containing_block_for_all_descendants(fragment_flags) {
             return true;
         }
 
@@ -525,8 +536,11 @@ impl ComputedValuesExt for ComputedValues {
     /// all descendants, including fixed descendants (`position: fixed`).
     /// Note that this also implies that it establishes a containing block
     /// for absolute descendants (`position: absolute`).
-    fn establishes_containing_block_for_all_descendants(&self) -> bool {
-        if self.has_transform_or_perspective() {
+    fn establishes_containing_block_for_all_descendants(
+        &self,
+        fragment_flags: FragmentFlags,
+    ) -> bool {
+        if self.has_transform_or_perspective(fragment_flags) {
             return true;
         }
 
diff --git a/components/layout_2020/table/layout.rs b/components/layout_2020/table/layout.rs
index ea223ea0cce..32531b3c383 100644
--- a/components/layout_2020/table/layout.rs
+++ b/components/layout_2020/table/layout.rs
@@ -22,7 +22,7 @@ use super::{Table, TableSlot, TableSlotCell, TableTrack, TableTrackGroup};
 use crate::context::LayoutContext;
 use crate::formatting_contexts::{Baselines, IndependentLayout};
 use crate::fragment_tree::{
-    BaseFragmentInfo, BoxFragment, CollapsedBlockMargins, ExtraBackground, Fragment,
+    BaseFragmentInfo, BoxFragment, CollapsedBlockMargins, ExtraBackground, Fragment, FragmentFlags,
     PositioningFragment,
 };
 use crate::geom::{AuOrAuto, LengthPercentageOrAuto, LogicalRect, LogicalSides, LogicalVec2};
@@ -985,11 +985,15 @@ impl<'a> TableLayout<'a> {
                         row.group_index.map_or(false, |group_index| {
                             self.table.row_groups[group_index]
                                 .style
-                                .establishes_containing_block_for_absolute_descendants()
+                                .establishes_containing_block_for_absolute_descendants(
+                                    FragmentFlags::empty(),
+                                )
                         });
                     row_group_collects_for_nearest_positioned_ancestor ||
                         row.style
-                            .establishes_containing_block_for_absolute_descendants()
+                            .establishes_containing_block_for_absolute_descendants(
+                                FragmentFlags::empty(),
+                            )
                 });
 
             let mut cells_laid_out_row = Vec::new();
diff --git a/tests/wpt/meta/MANIFEST.json b/tests/wpt/meta/MANIFEST.json
index 0654489de5b..282124d4b21 100644
--- a/tests/wpt/meta/MANIFEST.json
+++ b/tests/wpt/meta/MANIFEST.json
@@ -260846,6 +260846,19 @@
        {}
       ]
      ],
+     "transform-iframe-002.html": [
+      "b9b10ea368324efa93e73476fc8084dadb89f2d0",
+      [
+       null,
+       [
+        [
+         "/css/reference/ref-filled-green-100px-square-only.html",
+         "=="
+        ]
+       ],
+       {}
+      ]
+     ],
      "transform-image-001.html": [
       "0565b8dbeeb86b82993847a139c8f38b66c0b163",
       [
@@ -415399,6 +415412,10 @@
        "d92c3705b6b9dd270d17c64fce9010a5ab1fe4f3",
        []
       ],
+      "transform-iframe-002-contents.html": [
+       "84f079c90bcb590e81ba39753edf723bcb123858",
+       []
+      ],
       "transform-lime-square.png": [
        "8f939993332e1101b921615723ec6067f3bb90a3",
        []
diff --git a/tests/wpt/meta/css/css-transforms/transform3d-image-scale-001.html.ini b/tests/wpt/meta/css/css-transforms/transform3d-image-scale-001.html.ini
deleted file mode 100644
index 11da067d959..00000000000
--- a/tests/wpt/meta/css/css-transforms/transform3d-image-scale-001.html.ini
+++ /dev/null
@@ -1,2 +0,0 @@
-[transform3d-image-scale-001.html]
-  expected: FAIL
diff --git a/tests/wpt/tests/css/css-transforms/support/transform-iframe-002-contents.html b/tests/wpt/tests/css/css-transforms/support/transform-iframe-002-contents.html
new file mode 100644
index 00000000000..84f079c90bc
--- /dev/null
+++ b/tests/wpt/tests/css/css-transforms/support/transform-iframe-002-contents.html
@@ -0,0 +1,14 @@
+<!DOCTYPE html>
+<html>
+  <head>
+    <title>CSS Test (Transforms): Iframe (contents)</title>
+    <link rel="author" title="Martin Robinson" href="mailto:mrobinson@igalia.com">
+    <style>
+        body {
+            background: green;
+        }
+    </style>
+  </head>
+  <body>
+  </body>
+</html>
diff --git a/tests/wpt/tests/css/css-transforms/transform-iframe-002.html b/tests/wpt/tests/css/css-transforms/transform-iframe-002.html
new file mode 100644
index 00000000000..b9b10ea3683
--- /dev/null
+++ b/tests/wpt/tests/css/css-transforms/transform-iframe-002.html
@@ -0,0 +1,20 @@
+<!DOCTYPE html>
+<html>
+  <head>
+    <title>CSS Test (Transforms): Iframe</title>
+    <link rel="author" title="Martin Robinson" href="mailto:mrobinson@igalia.com">
+    <link rel="help" href="http://www.w3.org/TR/css-transforms-1/#transform-rendering">
+    <meta name="assert" content="This test ensures that an iframe element can be transformed.">
+    <link rel="match" href="/css/reference/ref-filled-green-100px-square-only.html">
+    <style>
+      iframe {
+        height: 50px;
+        width: 50px;
+        transform: translate(25px, 25px) scale(2, 2);
+        border: none;
+      }
+    </style>
+    <p>Test passes if there is a filled green square.</p>
+    <iframe src="support/transform-iframe-002-contents.html"></iframe>
+  </body>
+</html>