diff --git a/src/hugr/rewrite/outline_cfg.rs b/src/hugr/rewrite/outline_cfg.rs
index dd84b1a44..0c1e02aea 100644
--- a/src/hugr/rewrite/outline_cfg.rs
+++ b/src/hugr/rewrite/outline_cfg.rs
@@ -36,10 +36,11 @@ impl OutlineCfg {
         if !matches!(o, OpType::CFG(_)) {
             return Err(OutlineCfgError::ParentNotCfg(cfg_n, o.clone()));
         };
+        let cfg_entry = h.children(cfg_n).next().unwrap();
         let mut entry = None;
         let mut exit_succ = None;
         for &n in self.0.iter() {
-            if h.input_neighbours(n).any(|pred| !self.0.contains(&pred)) {
+            if n == cfg_entry || h.input_neighbours(n).any(|pred| !self.0.contains(&pred)) {
                 match entry {
                     None => {
                         entry = Some(n);
@@ -89,6 +90,7 @@ impl Rewrite for OutlineCfg {
             OpType::BasicBlock(b) => b.dataflow_input().clone(),
             _ => panic!("External successor not a basic block"),
         };
+        let is_outer_entry = h.children(h.get_parent(entry).unwrap()).next().unwrap() == entry;
 
         // 2. New CFG node will be contained in new single-successor BB
         let mut existing_cfg = {
@@ -111,7 +113,8 @@ impl Rewrite for OutlineCfg {
         let pred_wire = new_block.load_const(&predicate).unwrap();
         let new_block = new_block
             .finish_with_outputs(pred_wire, cfg_outputs)
-            .unwrap();
+            .unwrap()
+            .node();
 
         // 4. Entry edges. Change any edges into entry_block from outside, to target new_block
         let h = existing_cfg.hugr_mut();
@@ -122,9 +125,17 @@ impl Rewrite for OutlineCfg {
         for (pred, br) in preds {
             if !self.0.contains(&pred) {
                 h.disconnect(pred, br).unwrap();
-                h.connect(pred, br.index(), new_block.node(), 0).unwrap();
+                h.connect(pred, br.index(), new_block, 0).unwrap();
             }
         }
+        if is_outer_entry {
+            // new_block must be the entry node, i.e. first child, of the enclosing CFG
+            // (the current entry node will be reparented inside new_block below)
+            let parent = h.hierarchy.detach(new_block.index).unwrap();
+            h.hierarchy
+                .push_front_child(new_block.index, parent)
+                .unwrap();
+        }
 
         // 5. Children of new CFG.
         // Entry node must be first
@@ -155,7 +166,7 @@ impl Rewrite for OutlineCfg {
         h.disconnect(exit, exit_port).unwrap();
         h.connect(exit, exit_port.index(), inner_exit, 0).unwrap();
         // And connect new_block to outside instead
-        h.connect(new_block.node(), 0, outside, 0).unwrap();
+        h.connect(new_block, 0, outside, 0).unwrap();
 
         Ok(())
     }