diff --git a/examples/ROIExamples.py b/examples/ROIExamples.py
index 17e55e98..5391475a 100644
--- a/examples/ROIExamples.py
+++ b/examples/ROIExamples.py
@@ -126,7 +126,9 @@ r3b.addRotateHandle([0, 1], [1, 0])
 
 ## handles rotating/scaling around center
 r3b.addScaleRotateHandle([0, 0.5], [0.5, 0.5])
-r3b.addScaleRotateHandle([1, 0.5], [0.5, 0.5])
+
+# handles rotating/scaling around arbitrary point
+r3b.addScaleRotateHandle([0.3, 0], [0.9, 0.7])
 
 v3.disableAutoRange('xy')
 v3.autoRange()
diff --git a/pyqtgraph/graphicsItems/ROI.py b/pyqtgraph/graphicsItems/ROI.py
index 6e357adc..8362347e 100644
--- a/pyqtgraph/graphicsItems/ROI.py
+++ b/pyqtgraph/graphicsItems/ROI.py
@@ -575,8 +575,8 @@ class ROI(GraphicsObject):
         """
         pos = Point(pos)
         center = Point(center)
-        if pos[0] != center[0] and pos[1] != center[1]:
-            raise Exception("Scale/rotate handles must have either the same x or y coordinate as their center point.")
+        if pos[0] == center[0] and pos[1] == center[1]:
+            raise Exception("Scale/rotate handles cannot be at their center point.")
         return self.addHandle({'name': name, 'type': 'sr', 'center': center, 'pos': pos, 'item': item}, index=index)
     
     def addRotateFreeHandle(self, pos, center, axes=None, item=None, name=None, index=None):
@@ -955,13 +955,6 @@ class ROI(GraphicsObject):
                 h['pos'] = self.mapFromParent(p1)
                 
         elif h['type'] == 'sr':
-            if h['center'][0] == h['pos'][0]:
-                scaleAxis = 1
-                nonScaleAxis=0
-            else:
-                scaleAxis = 0
-                nonScaleAxis=1
-            
             try:
                 if lp1.length() == 0 or lp0.length() == 0:
                     return
@@ -973,17 +966,22 @@ class ROI(GraphicsObject):
                 return
             if self.rotateSnap or (modifiers & QtCore.Qt.ControlModifier):
                 ang = round(ang / self.rotateSnapAngle) * self.rotateSnapAngle
-            
-            hs = abs(h['pos'][scaleAxis] - c[scaleAxis])
-            newState['size'][scaleAxis] = lp1.length() / hs
-            #if self.scaleSnap or (modifiers & QtCore.Qt.ControlModifier):
-            if self.scaleSnap:  ## use CTRL only for angular snap here.
-                newState['size'][scaleAxis] = round(newState['size'][scaleAxis] / self.snapSize) * self.snapSize
-            if newState['size'][scaleAxis] == 0:
-                newState['size'][scaleAxis] = 1
-            if self.aspectLocked:
-                newState['size'][nonScaleAxis] = newState['size'][scaleAxis]
-                
+
+            if self.aspectLocked or h['center'][0] != h['pos'][0]:
+                newState['size'][0] = self.state['size'][0] * lp1.length() / lp0.length()
+                if self.scaleSnap:  # use CTRL only for angular snap here.
+                    newState['size'][0] = round(newState['size'][0] / self.snapSize) * self.snapSize
+
+            if self.aspectLocked or h['center'][1] != h['pos'][1]:
+                newState['size'][1] = self.state['size'][1] * lp1.length() / lp0.length()
+                if self.scaleSnap:  # use CTRL only for angular snap here.
+                    newState['size'][1] = round(newState['size'][1] / self.snapSize) * self.snapSize
+
+            if newState['size'][0] == 0:
+                newState['size'][0] = 1
+            if newState['size'][1] == 0:
+                newState['size'][1] = 1
+
             c1 = c * newState['size']
             tr = QtGui.QTransform()
             tr.rotate(ang)