diff --git a/source/blender/editors/space_node/node_draw.cc b/source/blender/editors/space_node/node_draw.cc
index a9db1fa50bd..33bb5540b9f 100644
--- a/source/blender/editors/space_node/node_draw.cc
+++ b/source/blender/editors/space_node/node_draw.cc
@@ -2716,14 +2716,28 @@ static void count_multi_input_socket_links(bNodeTree &ntree, SpaceNode &snode)
   }
 }
 
+
+static float frame_node_label_height(const NodeFrame &frame_data)
+{
+  return frame_data.label_size * U.dpi_fac;
+}
+
+#define NODE_FRAME_MARGIN (1.5f * U.widget_unit)
+
 /* XXX Does a bounding box update by iterating over all children.
  * Not ideal to do this in every draw call, but doing as transform callback doesn't work,
  * since the child node totr rects are not updated properly at that point. */
 static void frame_node_prepare_for_draw(bNode &node, Span<bNode *> nodes)
 {
-  const float margin = 1.5f * U.widget_unit;
   NodeFrame *data = (NodeFrame *)node.storage;
 
+  const float margin = NODE_FRAME_MARGIN;
+  const float has_label = node.label[0] != '\0';
+
+  const float label_height = frame_node_label_height(*data);
+  /* Add an additional 25 % to account for the descenders. This works well in most cases. */
+  const float margin_top = 0.5f * margin + (has_label ? 1.25f * label_height : 0.5f * margin);
+
   /* Initialize rect from current frame size. */
   rctf rect;
   node_to_updated_rect(node, rect);
@@ -2743,7 +2757,7 @@ static void frame_node_prepare_for_draw(bNode &node, Span<bNode *> nodes)
     noderect.xmin -= margin;
     noderect.xmax += margin;
     noderect.ymin -= margin;
-    noderect.ymax += margin;
+    noderect.ymax += margin_top;
 
     /* First child initializes frame. */
     if (bbinit) {
@@ -2841,8 +2855,7 @@ static void frame_node_draw_label(TreeDrawContext &tree_draw_ctx,
 
   BLF_enable(fontid, BLF_ASPECT);
   BLF_aspect(fontid, aspect, aspect, 1.0f);
-  /* Clamp. Otherwise it can suck up a LOT of memory. */
-  BLF_size(fontid, MIN2(24.0f, font_size) * U.dpi_fac);
+  BLF_size(fontid, font_size * U.dpi_fac);
 
   /* Title color. */
   int color_id = node_get_colorid(tree_draw_ctx, node);
@@ -2850,21 +2863,18 @@ static void frame_node_draw_label(TreeDrawContext &tree_draw_ctx,
   UI_GetThemeColorBlendShade3ubv(TH_TEXT, color_id, 0.4f, 10, color);
   BLF_color3ubv(fontid, color);
 
-  const float margin = float(NODE_DY / 4);
+  const float margin = NODE_FRAME_MARGIN;
   const float width = BLF_width(fontid, label, sizeof(label));
-  const float ascender = BLF_ascender(fontid);
-  const int label_height = ((margin / aspect) + (ascender * aspect));
+  const int label_height = frame_node_label_height(*data);
 
-  /* 'x' doesn't need aspect correction */
   const rctf &rct = node.runtime->totr;
-  /* XXX a bit hacky, should use separate align values for x and y. */
-  float x = BLI_rctf_cent_x(&rct) - (0.5f * width);
-  float y = rct.ymax - label_height;
+  const float label_x = BLI_rctf_cent_x(&rct) - (0.5f * width);
+  const float label_y = rct.ymax - label_height - (0.5f * margin);
 
-  /* label */
+  /* Label. */
   const bool has_label = node.label[0] != '\0';
   if (has_label) {
-    BLF_position(fontid, x, y, 0);
+    BLF_position(fontid, label_x, label_y, 0);
     BLF_draw(fontid, label, sizeof(label));
   }
 
@@ -2875,11 +2885,10 @@ static void frame_node_draw_label(TreeDrawContext &tree_draw_ctx,
     const float line_spacing = (line_height_max * aspect);
     const float line_width = (BLI_rctf_size_x(&rct) - 2 * margin) / aspect;
 
-    /* 'x' doesn't need aspect correction. */
-    x = rct.xmin + margin;
-    y = rct.ymax - label_height - (has_label ? line_spacing : 0);
+    const float x = rct.xmin + margin;
+    float y = rct.ymax - label_height - (has_label ? line_spacing + margin : 0);
 
-    int y_min = y + ((margin * 2) - (y - rct.ymin));
+    const int y_min = rct.ymin + margin;
 
     BLF_enable(fontid, BLF_CLIPPING | BLF_WORD_WRAP);
     BLF_clipping(fontid, rct.xmin, rct.ymin + margin, rct.xmax, rct.ymax);
diff --git a/source/blender/makesrna/intern/rna_nodetree.c b/source/blender/makesrna/intern/rna_nodetree.c
index bf1a9963f87..d84f221c862 100644
--- a/source/blender/makesrna/intern/rna_nodetree.c
+++ b/source/blender/makesrna/intern/rna_nodetree.c
@@ -11,6 +11,8 @@
 #include "BLI_math.h"
 #include "BLI_utildefines.h"
 
+#include "BLF_api.h"
+
 #include "BLT_translation.h"
 
 #include "DNA_curves_types.h"
@@ -4164,6 +4166,12 @@ static bNodeSocket *rna_NodeOutputFile_slots_new(
   return sock;
 }
 
+static void rna_FrameNode_label_size_update(Main *bmain, Scene *scene, PointerRNA *ptr)
+{
+  BLF_cache_clear();
+  rna_Node_update(bmain, scene, ptr);
+}
+
 static void rna_ShaderNodeTexIES_mode_set(PointerRNA *ptr, int value)
 {
   bNode *node = (bNode *)ptr->data;
@@ -4816,7 +4824,7 @@ static void def_frame(StructRNA *srna)
   RNA_def_property_int_sdna(prop, NULL, "label_size");
   RNA_def_property_range(prop, 8, 64);
   RNA_def_property_ui_text(prop, "Label Font Size", "Font size to use for displaying the label");
-  RNA_def_property_update(prop, NC_NODE | ND_DISPLAY, NULL);
+  RNA_def_property_update(prop, NC_NODE | ND_DISPLAY, "rna_FrameNode_label_size_update");
 }
 
 static void def_clamp(StructRNA *srna)