diff --git a/src/item/Item.js b/src/item/Item.js
index 390d095c..d790f64a 100644
--- a/src/item/Item.js
+++ b/src/item/Item.js
@@ -2350,14 +2350,9 @@ new function() { // Injection scope for hit-test functions shared with project
                 if (_proto && !(item instanceof _proto)) {
                     items.splice(i, 1);
                 } else {
-                    // If the item is removed and inserted it again further
-                    // above, the index needs to be adjusted accordingly.
-                    var owner = item._getOwner(),
-                        shift = owner === this && item._index < index;
                     // Notify parent of change. Don't notify item itself yet,
                     // as we're doing so when adding it to the new owner below.
-                    if (owner && item._remove(false, true) && shift)
-                        index--;
+                    item._remove(false, true);
                 }
             }
             Base.splice(children, items, index, 0);
@@ -2387,6 +2382,32 @@ new function() { // Injection scope for hit-test functions shared with project
     // through _getOwner() in the various Item#insert*() methods.
     _insertItem: '#insertChild',
 
+    /**
+     * Private helper method used by {@link #insertAbove(item)} and
+     * {@link #insertBelow(item)}, to insert this item in relation to a
+     * specified other item.
+     *
+     * @param {Item} item the item in relation to which which it should be
+     *     inserted
+     * @param {Number} offset the offset at which the item should be inserted
+     * @return {Item} the inserted item, or `null` if inserting was not possible
+     */
+    _insertAt: function(item, offset, _preserve) {
+        var res = this;
+        if (res !== item) {
+            var owner = item && item._getOwner();
+            if (owner) {
+                // Notify parent of change. Don't notify item itself yet,
+                // as we're doing so when adding it to the new owner below.
+                res._remove(false, true);
+                owner._insertItem(item._index + offset, res, _preserve);
+            } else {
+                res = null;
+            }
+        }
+        return res;
+    },
+
     /**
      * Inserts this item above the specified item.
      *
@@ -2394,9 +2415,7 @@ new function() { // Injection scope for hit-test functions shared with project
      * @return {Item} the inserted item, or `null` if inserting was not possible
      */
     insertAbove: function(item, _preserve) {
-        var owner = item && item._getOwner();
-        return owner ? owner._insertItem(item._index + 1, this, _preserve)
-                : null;
+        return this._insertAt(item, 1, _preserve);
     },
 
     /**
@@ -2406,8 +2425,7 @@ new function() { // Injection scope for hit-test functions shared with project
      * @return {Item} the inserted item, or `null` if inserting was not possible
      */
     insertBelow: function(item, _preserve) {
-        var owner = item && item._getOwner();
-        return owner ? owner._insertItem(item._index, this, _preserve) : null;
+        return this._insertAt(item, 0, _preserve);
     },
 
     /**
diff --git a/src/item/Project.js b/src/item/Project.js
index 79dd9b26..c84791f6 100644
--- a/src/item/Project.js
+++ b/src/item/Project.js
@@ -352,6 +352,8 @@ var Project = PaperScopeItem.extend(/** @lends Project# */{
      */
     insertLayer: function(index, layer) {
         if (layer instanceof Layer) {
+            // Notify parent of change. Don't notify item itself yet,
+            // as we're doing so when adding it to the new owner below.
             layer._remove(false, true);
             Base.splice(this._children, [layer], index, 0);
             layer._setProject(this, true);
diff --git a/test/tests/Item_Order.js b/test/tests/Item_Order.js
index 94b06eed..b99814ef 100644
--- a/test/tests/Item_Order.js
+++ b/test/tests/Item_Order.js
@@ -59,37 +59,57 @@ test('Item Order', function() {
 test('Item#insertAbove(item) / Item#insertBelow(item)', function() {
     var item0, item1, item2;
 
-    function testMove(command, indexes) {
-        paper.project.clear();
-        new Layer();
-        item0 = new Group();
-        item1 = new Group();
-        item2 = new Group();
-        command();
-        var str = getFunctionMessage(command);
-        equals(item0.index, indexes[0], str + ': item0.index');
-        equals(item1.index, indexes[1], str + ': item1.index');
-        equals(item2.index, indexes[2], str + ': item2.index');
+    function testType(ctor) {
+        function testMove(command, indexes) {
+            paper.project.clear();
+            if (ctor !== Layer)
+                new Layer();
+            item0 = new ctor();
+            item1 = new ctor();
+            item2 = new ctor();
+            command();
+            var str = getFunctionMessage(command);
+            var name = item0.className.toLowerCase();
+            equals(item0.index, indexes[0], str + ': ' + name + '0.index');
+            equals(item1.index, indexes[1], str + ': ' + name + '1.index');
+            equals(item2.index, indexes[2], str + ': ' + name + '2.index');
+        }
+
+        testMove(function() { item0.insertBelow(item0); }, [0,1,2]);
+        testMove(function() { item0.insertBelow(item1); }, [0,1,2]);
+        testMove(function() { item0.insertBelow(item2); }, [1,0,2]);
+        testMove(function() { item1.insertBelow(item0); }, [1,0,2]);
+        testMove(function() { item1.insertBelow(item1); }, [0,1,2]);
+        testMove(function() { item1.insertBelow(item2); }, [0,1,2]);
+
+        testMove(function() { item2.insertBelow(item0); }, [1,2,0]);
+        testMove(function() { item2.insertBelow(item1); }, [0,2,1]);
+        testMove(function() { item2.insertBelow(item2); }, [0,1,2]);
+
+        testMove(function() { item0.insertAbove(item0); }, [0,1,2]);
+        testMove(function() { item0.insertAbove(item1); }, [1,0,2]);
+        testMove(function() { item0.insertAbove(item2); }, [2,0,1]);
+        testMove(function() { item1.insertAbove(item0); }, [0,1,2]);
+        testMove(function() { item1.insertAbove(item1); }, [0,1,2]);
+        testMove(function() { item1.insertAbove(item2); }, [0,2,1]);
+        testMove(function() { item2.insertAbove(item0); }, [0,2,1]);
+        testMove(function() { item2.insertAbove(item1); }, [0,1,2]);
+        testMove(function() { item2.insertAbove(item2); }, [0,1,2]);
     }
 
-    testMove(function() { item0.insertBelow(item0); }, [0,1,2]);
-    testMove(function() { item0.insertBelow(item1); }, [0,1,2]);
-    testMove(function() { item0.insertBelow(item2); }, [1,0,2]);
-    testMove(function() { item1.insertBelow(item0); }, [1,0,2]);
-    testMove(function() { item1.insertBelow(item1); }, [0,1,2]);
-    testMove(function() { item1.insertBelow(item2); }, [0,1,2]);
-
-    testMove(function() { item2.insertBelow(item0); }, [1,2,0]);
-    testMove(function() { item2.insertBelow(item1); }, [0,2,1]);
-    testMove(function() { item2.insertBelow(item2); }, [0,1,2]);
-
-    testMove(function() { item0.insertAbove(item0); }, [0,1,2]);
-    testMove(function() { item0.insertAbove(item1); }, [1,0,2]);
-    testMove(function() { item0.insertAbove(item2); }, [2,0,1]);
-    testMove(function() { item1.insertAbove(item0); }, [0,1,2]);
-    testMove(function() { item1.insertAbove(item1); }, [0,1,2]);
-    testMove(function() { item1.insertAbove(item2); }, [0,2,1]);
-    testMove(function() { item2.insertAbove(item0); }, [0,2,1]);
-    testMove(function() { item2.insertAbove(item1); }, [0,1,2]);
-    testMove(function() { item2.insertAbove(item2); }, [0,1,2]);
+    testType(Group);
+    testType(Layer);
+});
+
+test('Item#insertChild() with already inserted children', function() {
+    var item1 = new Group(),
+        item2 = new Group(),
+        item3 = new Group(),
+        item4 = new Group(),
+        newIndex = 1,
+        oldIndex = item4.index;
+    item4.parent.insertChild(1, item4);
+    equals(function() { return item4.index; }, newIndex);
+    item4.parent.insertChild(oldIndex, item4);
+    equals(function() { return item4.index; }, oldIndex);
 });