diff --git a/esphome/components/graphical_layout/__init__.py b/esphome/components/graphical_layout/__init__.py
index 12c0797fab..d07725bfc9 100644
--- a/esphome/components/graphical_layout/__init__.py
+++ b/esphome/components/graphical_layout/__init__.py
@@ -1,6 +1,7 @@
 import esphome.codegen as cg
 import esphome.config_validation as cv
 from esphome.const import CONF_ID, CONF_TYPE
+from esphome.components import color
 from . import horizontal_stack
 from . import vertical_stack
 from . import text_panel
@@ -18,8 +19,19 @@ AUTO_LOAD = ["display"]
 MULTI_CONF = True
 
 CONF_LAYOUT = "layout"
+CONF_MARGIN = "margin"
+CONF_PADDING = "padding"
+CONF_BORDER = "border"
+CONF_BORDER_COLOR = "border_color"
 
-BASE_ITEM_SCHEMA = cv.Schema({})
+BASE_ITEM_SCHEMA = cv.Schema(
+    {
+        cv.Optional(CONF_MARGIN, default=0): cv.templatable(cv.int_range(min=0)),
+        cv.Optional(CONF_BORDER, default=0): cv.templatable(cv.int_range(min=0)),
+        cv.Optional(CONF_BORDER_COLOR): cv.use_id(color.ColorStruct),
+        cv.Optional(CONF_PADDING, default=0): cv.templatable(cv.int_range(min=0)),
+    }
+)
 
 
 def item_type_schema(value):
@@ -58,6 +70,25 @@ CONFIG_SCHEMA = cv.Schema(
 ).extend(cv.COMPONENT_SCHEMA)
 
 
+async def build_layout_item_pvariable(config):
+    var = cg.new_Pvariable(config[CONF_ID])
+
+    margin = await cg.templatable(config[CONF_MARGIN], args=[], output_type=int)
+    cg.add(var.set_margin(margin))
+
+    border = await cg.templatable(config[CONF_BORDER], args=[], output_type=int)
+    cg.add(var.set_border(border))
+
+    if border_color_config := config.get(CONF_BORDER_COLOR):
+        border_color = await cg.get_variable(border_color_config)
+        cg.add(var.set_border_color(border_color))
+
+    padding = await cg.templatable(config[CONF_PADDING], args=[], output_type=int)
+    cg.add(var.set_margin(padding))
+
+    return var
+
+
 async def to_code(config):
     var = cg.new_Pvariable(config[CONF_ID])
     await cg.register_component(var, config)
@@ -65,7 +96,9 @@ async def to_code(config):
     layout_config = config[CONF_LAYOUT]
     layout_type = layout_config[CONF_TYPE]
     if layout_type in CODE_GENERATORS:
-        layout_var = await CODE_GENERATORS[layout_type](layout_config, CODE_GENERATORS)
+        layout_var = await CODE_GENERATORS[layout_type](
+            build_layout_item_pvariable, layout_config, CODE_GENERATORS
+        )
         cg.add(var.set_layout_root(layout_var))
     else:
         raise f"Do not know how to build type {layout_type}"
diff --git a/esphome/components/graphical_layout/display_rendering_panel.cpp b/esphome/components/graphical_layout/display_rendering_panel.cpp
index 5218c72fe9..904a89aa93 100644
--- a/esphome/components/graphical_layout/display_rendering_panel.cpp
+++ b/esphome/components/graphical_layout/display_rendering_panel.cpp
@@ -14,11 +14,11 @@ void DisplayRenderingPanel::dump_config(int indent_depth, int additional_level_d
   ESP_LOGCONFIG(TAG, "%*sHas drawing lambda: %s", indent_depth, "", YESNO(this->lambda_ != nullptr));
 }
 
-display::Rect DisplayRenderingPanel::measure_item(display::Display *display) {
-  return display::Rect(0, 0, this->width_, this->width_);
+display::Rect DisplayRenderingPanel::measure_item_internal(display::Display *display) {
+  return display::Rect(0, 0, this->width_, this->height_);
 }
 
-void DisplayRenderingPanel::render(display::Display *display, display::Rect bounds) { this->lambda_(*display); }
+void DisplayRenderingPanel::render_internal(display::Display *display, display::Rect bounds) { this->lambda_(*display); }
 
 }  // namespace graphical_layout
 }  // namespace esphome
diff --git a/esphome/components/graphical_layout/display_rendering_panel.h b/esphome/components/graphical_layout/display_rendering_panel.h
index a48b2b393e..0a753021bf 100644
--- a/esphome/components/graphical_layout/display_rendering_panel.h
+++ b/esphome/components/graphical_layout/display_rendering_panel.h
@@ -16,8 +16,8 @@ using display_writer_t = std::function<void(display::Display &)>;
  */
 class DisplayRenderingPanel : public LayoutItem {
  public:
-  display::Rect measure_item(display::Display *display) override;
-  void render(display::Display *display, display::Rect bounds) override;
+  display::Rect measure_item_internal(display::Display *display) override;
+  void render_internal(display::Display *display, display::Rect bounds) override;
   void dump_config(int indent_depth, int additional_level_depth) override;
 
   void set_width(int width) { this->width_ = width; };
diff --git a/esphome/components/graphical_layout/display_rendering_panel.py b/esphome/components/graphical_layout/display_rendering_panel.py
index c44c154888..c43effaee2 100644
--- a/esphome/components/graphical_layout/display_rendering_panel.py
+++ b/esphome/components/graphical_layout/display_rendering_panel.py
@@ -20,8 +20,8 @@ def get_config_schema(base_item_schema, item_type_schema):
     )
 
 
-async def config_to_layout_item(item_config, child_item_builder):
-    var = cg.new_Pvariable(item_config[CONF_ID])
+async def config_to_layout_item(pvariable_builder, item_config, child_item_builder):
+    var = await pvariable_builder(item_config)
 
     width = await cg.templatable(item_config[CONF_WIDTH], args=[], output_type=int)
     cg.add(var.set_width(width))
diff --git a/esphome/components/graphical_layout/horizontal_stack.cpp b/esphome/components/graphical_layout/horizontal_stack.cpp
index 24726db042..4c7a341c8e 100644
--- a/esphome/components/graphical_layout/horizontal_stack.cpp
+++ b/esphome/components/graphical_layout/horizontal_stack.cpp
@@ -18,7 +18,7 @@ void HorizontalStack::dump_config(int indent_depth, int additional_level_depth)
   }
 }
 
-display::Rect HorizontalStack::measure_item(display::Display *display) {
+display::Rect HorizontalStack::measure_item_internal(display::Display *display) {
   display::Rect rect(this->item_padding_, 0, 0, 0);
 
   for (LayoutItem *child : this->children_) {
@@ -35,7 +35,7 @@ display::Rect HorizontalStack::measure_item(display::Display *display) {
   return rect;
 }
 
-void HorizontalStack::render(display::Display *display, display::Rect bounds) {
+void HorizontalStack::render_internal(display::Display *display, display::Rect bounds) {
   int width_offset = this->item_padding_;
 
   for (LayoutItem *item : this->children_) {
diff --git a/esphome/components/graphical_layout/horizontal_stack.h b/esphome/components/graphical_layout/horizontal_stack.h
index f8b017f055..57fbebcf24 100644
--- a/esphome/components/graphical_layout/horizontal_stack.h
+++ b/esphome/components/graphical_layout/horizontal_stack.h
@@ -11,8 +11,8 @@ namespace graphical_layout {
  */
 class HorizontalStack : public ContainerLayoutItem {
  public:
-  display::Rect measure_item(display::Display *display) override;
-  void render(display::Display *display, display::Rect bounds) override;
+  display::Rect measure_item_internal(display::Display *display) override;
+  void render_internal(display::Display *display, display::Rect bounds) override;
   void dump_config(int indent_depth, int additional_level_depth) override;
 
   void set_item_padding(int item_padding) { this->item_padding_ = item_padding; };
diff --git a/esphome/components/graphical_layout/horizontal_stack.py b/esphome/components/graphical_layout/horizontal_stack.py
index 3b755073f5..c42ceffdfa 100644
--- a/esphome/components/graphical_layout/horizontal_stack.py
+++ b/esphome/components/graphical_layout/horizontal_stack.py
@@ -22,8 +22,8 @@ def get_config_schema(base_item_schema, item_type_schema):
     )
 
 
-async def config_to_layout_item(item_config, child_item_builder):
-    var = cg.new_Pvariable(item_config[CONF_ID])
+async def config_to_layout_item(pvariable_builder, item_config, child_item_builder):
+    var = await pvariable_builder(item_config)
 
     if item_padding_config := item_config[CONF_ITEM_PADDING]:
         cg.add(var.set_item_padding(item_padding_config))
@@ -32,7 +32,7 @@ async def config_to_layout_item(item_config, child_item_builder):
         child_item_type = child_item_config[CONF_TYPE]
         if child_item_type in child_item_builder:
             child_item_var = await child_item_builder[child_item_type](
-                child_item_config, child_item_builder
+                pvariable_builder, child_item_config, child_item_builder
             )
             cg.add(var.add_item(child_item_var))
         else:
diff --git a/esphome/components/graphical_layout/layout_item.cpp b/esphome/components/graphical_layout/layout_item.cpp
new file mode 100644
index 0000000000..77fe139b71
--- /dev/null
+++ b/esphome/components/graphical_layout/layout_item.cpp
@@ -0,0 +1,60 @@
+#include "layout_item.h"
+
+#include "esphome/components/display/display.h"
+#include "esphome/components/display/rect.h"
+
+namespace esphome {
+namespace graphical_layout {
+
+static const char *const TAG = "layoutitem";
+
+display::Rect LayoutItem::measure_item(display::Display *display) {
+  display::Rect inner_size = this->measure_item_internal(display);
+  int margin_border_padding = this->margin_ + this->border_ + this->padding_;
+
+  return display::Rect(0, 0, (margin_border_padding * 2) + inner_size.w, (margin_border_padding * 2) + inner_size.h);
+}
+
+void LayoutItem::render(display::Display *display, display::Rect bounds) {
+  // Margin
+  display->set_local_coordinates_relative_to_current(this->margin_, this->margin_);
+
+  // Border
+  if (this->border_ > 0) {
+    display::Rect border_bounds(0, 0, bounds.w - (this->margin_ * 2), bounds.h - (this->margin_ * 2));
+    if (this->border_ == 1) {
+      // Single pixel border use the native function
+      display->rectangle(0, 0, border_bounds.w, border_bounds.h, this->border_color_);
+    } else {
+      // Thicker border need to do mutiple filled rects
+      // Top rectangle
+      display->filled_rectangle(border_bounds.x, border_bounds.y, border_bounds.w, this->border_);
+      // Bottom rectangle
+      display->filled_rectangle(border_bounds.x, border_bounds.h - this->border_, border_bounds.w, this->border_);
+      // Left rectangle
+      display->filled_rectangle(border_bounds.x, border_bounds.y, this->border_, border_bounds.h);
+      // Right rectangle
+      display->filled_rectangle(border_bounds.w - this->border_, border_bounds.y, this->border_, border_bounds.h);
+    }
+  }
+
+  // Padding
+  display->set_local_coordinates_relative_to_current(this->border_ + this->padding_, this->border_ + this->padding_);   
+  int margin_border_padding_offset = (this->margin_ + this->border_ + this->padding_) * 2;
+  display::Rect internal_bounds(0, 0, bounds.w - margin_border_padding_offset, bounds.h - margin_border_padding_offset);
+
+  // Rendering
+  this->render_internal(display, internal_bounds);
+
+  // Pop padding  coords
+  display->pop_local_coordinates();
+
+  // Border doesn't use local coords
+
+  // Pop margin coords
+  display->pop_local_coordinates();
+}
+
+
+}  // namespace graphical_layout
+}  // namespace esphome
diff --git a/esphome/components/graphical_layout/layout_item.h b/esphome/components/graphical_layout/layout_item.h
index aeeb3035d7..3cdd49c3fc 100644
--- a/esphome/components/graphical_layout/layout_item.h
+++ b/esphome/components/graphical_layout/layout_item.h
@@ -1,5 +1,7 @@
 #pragma once
 
+#include "esphome/core/color.h"
+
 namespace esphome {
 namespace display {
 class Display;
@@ -11,25 +13,56 @@ namespace graphical_layout {
 /** LayoutItem is the base from which all items derive from*/
 class LayoutItem {
  public:
-  /** Measures the item as it would be drawn on the display and returns the bounds for it
+  /** Measures the item as it would be drawn on the display and returns the bounds for it. This should
+   * include any margin and padding. It is rare you will need to override this unless you are doing
+   * something non-standard with margins and padding
    *
    * param[in] display: Display that will be used for rendering. May be used to help with calculations
    */
-  virtual display::Rect measure_item(display::Display *display) = 0;
+  virtual display::Rect measure_item(display::Display *display);
 
-  /** Perform the rendering of the item to the display
+  /** Measures the internal size of the item this should only be the portion drawn exclusive
+   * of any padding or margins
+   * 
+   * param[in] display: Display that will be used for rendering. May be used to help with calculations
+  */
+  virtual display::Rect measure_item_internal(display::Display *display) = 0;
+
+  /** Perform the rendering of the item to the display accounting for the margin and padding of the
+   * item. It is rare you will need to override this unless you are doing something non-standard with
+   * margins and padding
    *
    * param[in] display: Display to render to
    * param[in] bounds: Size of the area drawing should be constrained to
    */
-  virtual void render(display::Display *display, display::Rect bounds) = 0;
+  virtual void render(display::Display *display, display::Rect bounds);
 
-  /**
+  /** Performs the rendering of the item internals of the item exclusive of any padding or margins
+   * (or rather, after they've already been handled by render)
+   * 
+   * param[in] display: Display to render to
+   * param[in] bounds: Size of the area drawing should be constrained to
+  */
+  virtual void render_internal(display::Display *display, display::Rect bounds) = 0;
+
+  /** Dump the items config to aid the user
+   * 
    * param[in] indent_depth: Depth to indent the config
    * param[in] additional_level_depth: If children require their config to be dumped you increment
    *  their indent_depth before calling it
    */
   virtual void dump_config(int indent_depth, int additional_level_depth) = 0;
+
+  void set_margin(int margin) { this->margin_ = margin; };
+  void set_padding(int padding) { this->padding_ = padding; };
+  void set_border(int border) { this->border_ = border; };
+  void set_border_color(Color color) { this->border_color_ = color; };
+
+ protected:
+  int margin_{0};
+  int padding_{0};
+  int border_{0};
+  Color border_color_{Color(0, 0, 0, 0)};
 };
 
 }  // namespace graphical_layout
diff --git a/esphome/components/graphical_layout/text_panel.cpp b/esphome/components/graphical_layout/text_panel.cpp
index 228c8432ef..71c5caec20 100644
--- a/esphome/components/graphical_layout/text_panel.cpp
+++ b/esphome/components/graphical_layout/text_panel.cpp
@@ -13,7 +13,7 @@ void TextPanel::dump_config(int indent_depth, int additional_level_depth) {
   ESP_LOGCONFIG(TAG, "%*sText: %s", indent_depth, "", this->text_.c_str());
 }
 
-display::Rect TextPanel::measure_item(display::Display *display) {
+display::Rect TextPanel::measure_item_internal(display::Display *display) {
   int x1;
   int y1;
   int width;
@@ -25,7 +25,7 @@ display::Rect TextPanel::measure_item(display::Display *display) {
   return display::Rect(0, 0, width, height);
 }
 
-void TextPanel::render(display::Display *display, display::Rect bounds) {
+void TextPanel::render_internal(display::Display *display, display::Rect bounds) {
   display->print(0, 0, this->font_, this->foreground_color_, display::TextAlign::TOP_LEFT, this->text_.c_str());
 }
 
diff --git a/esphome/components/graphical_layout/text_panel.h b/esphome/components/graphical_layout/text_panel.h
index 5c0d7832ec..8a5c1e7315 100644
--- a/esphome/components/graphical_layout/text_panel.h
+++ b/esphome/components/graphical_layout/text_panel.h
@@ -14,8 +14,8 @@ const Color COLOR_OFF(0, 0, 0, 0);
 /** The TextPanel is a UI item that renders a single line of text to a display */
 class TextPanel : public LayoutItem {
  public:
-  display::Rect measure_item(display::Display *display) override;
-  void render(display::Display *display, display::Rect bounds) override;
+  display::Rect measure_item_internal(display::Display *display) override;
+  void render_internal(display::Display *display, display::Rect bounds) override;
   void dump_config(int indent_depth, int additional_level_depth) override;
 
   void set_item_padding(int item_padding) { this->item_padding_ = item_padding; };
diff --git a/esphome/components/graphical_layout/text_panel.py b/esphome/components/graphical_layout/text_panel.py
index 88709424e2..9d6e272523 100644
--- a/esphome/components/graphical_layout/text_panel.py
+++ b/esphome/components/graphical_layout/text_panel.py
@@ -27,8 +27,8 @@ def get_config_schema(base_item_schema, item_type_schema):
     )
 
 
-async def config_to_layout_item(item_config, child_item_builder):
-    var = cg.new_Pvariable(item_config[CONF_ID])
+async def config_to_layout_item(pvariable_builder, item_config, child_item_builder):
+    var = await pvariable_builder(item_config)
 
     if item_padding_config := item_config[CONF_ITEM_PADDING]:
         cg.add(var.set_item_padding(item_padding_config))
diff --git a/esphome/components/graphical_layout/vertical_stack.cpp b/esphome/components/graphical_layout/vertical_stack.cpp
index 09ef685ab2..bb357c68cf 100644
--- a/esphome/components/graphical_layout/vertical_stack.cpp
+++ b/esphome/components/graphical_layout/vertical_stack.cpp
@@ -7,7 +7,7 @@
 namespace esphome {
 namespace graphical_layout {
 
-static const char *TAG = "verticalstack";
+static const char *const TAG = "verticalstack";
 
 void VerticalStack::dump_config(int indent_depth, int additional_level_depth) {
   ESP_LOGCONFIG(TAG, "%*sItem Padding: %i", indent_depth, "", this->item_padding_);
@@ -18,7 +18,7 @@ void VerticalStack::dump_config(int indent_depth, int additional_level_depth) {
   }
 }
 
-display::Rect VerticalStack::measure_item(display::Display *display) {
+display::Rect VerticalStack::measure_item_internal(display::Display *display) {
   display::Rect rect(0, this->item_padding_, 0, 0);
 
   for (LayoutItem *child : this->children_) {
@@ -33,7 +33,7 @@ display::Rect VerticalStack::measure_item(display::Display *display) {
   return rect;
 }
 
-void VerticalStack::render(display::Display *display, display::Rect bounds) {
+void VerticalStack::render_internal(display::Display *display, display::Rect bounds) {
   int height_offset = this->item_padding_;
 
   for (LayoutItem *item : this->children_) {
diff --git a/esphome/components/graphical_layout/vertical_stack.h b/esphome/components/graphical_layout/vertical_stack.h
index df89b63f2b..2c21f539a9 100644
--- a/esphome/components/graphical_layout/vertical_stack.h
+++ b/esphome/components/graphical_layout/vertical_stack.h
@@ -10,8 +10,8 @@ namespace graphical_layout {
  */
 class VerticalStack : public ContainerLayoutItem {
  public:
-  display::Rect measure_item(display::Display *display) override;
-  void render(display::Display *display, display::Rect bounds) override;
+  display::Rect measure_item_internal(display::Display *display) override;
+  void render_internal(display::Display *display, display::Rect bounds) override;
   void dump_config(int indent_depth, int additional_level_depth) override;
 
   void set_item_padding(int item_padding) { this->item_padding_ = item_padding; };
diff --git a/esphome/components/graphical_layout/vertical_stack.py b/esphome/components/graphical_layout/vertical_stack.py
index 1ea566f16b..9497819aba 100644
--- a/esphome/components/graphical_layout/vertical_stack.py
+++ b/esphome/components/graphical_layout/vertical_stack.py
@@ -22,8 +22,8 @@ def get_config_schema(base_item_schema, item_type_schema):
     )
 
 
-async def config_to_layout_item(item_config, child_item_builder):
-    var = cg.new_Pvariable(item_config[CONF_ID])
+async def config_to_layout_item(pvariable_builder, item_config, child_item_builder):
+    var = await pvariable_builder(item_config)
 
     if item_padding_config := item_config[CONF_ITEM_PADDING]:
         cg.add(var.set_item_padding(item_padding_config))
@@ -32,7 +32,7 @@ async def config_to_layout_item(item_config, child_item_builder):
         child_item_type = child_item_config[CONF_TYPE]
         if child_item_type in child_item_builder:
             child_item_var = await child_item_builder[child_item_type](
-                child_item_config, child_item_builder
+                pvariable_builder, child_item_config, child_item_builder
             )
             cg.add(var.add_item(child_item_var))
         else: