diff --git a/demo/nested.html b/demo/nested.html
index ef4efc3c4..abee10760 100644
--- a/demo/nested.html
+++ b/demo/nested.html
@@ -60,7 +60,7 @@ <h1>Nested grids demo</h1>
       disableOneColumnMode: true, // nested are small, but still want N columns
       margin: 1
     };
-    GridStack.init(null, '.grid-stack.top');
+    GridStack.init({cellHeight: 70}, '.grid-stack.top');
     let grid1 = GridStack.init(nestOptions, '.grid-stack.nested1');
     nestOptions.dragOut = false;
     let grid2 = GridStack.init(nestOptions, '.grid-stack.nested2');
diff --git a/doc/CHANGES.md b/doc/CHANGES.md
index c9b94d169..e31f17923 100644
--- a/doc/CHANGES.md
+++ b/doc/CHANGES.md
@@ -42,6 +42,7 @@ Change log
 - fix `minWidth()`, `minHeight()`, `maxHeight()` to set node value as well [1359](https://github.com/gridstack/gridstack.js/issues/1359)
 - fix `GridStackOptions` spelling [1359](https://github.com/gridstack/gridstack.js/issues/1359)
 - fix remove window resize event when `grid.destroy()` [1369](https://github.com/gridstack/gridstack.js/issues/1369)
+- fix nested grid resize [1361](https://github.com/gridstack/gridstack.js/issues/1361)
 
 ## 2.0.0 (2020-09-07)
 
diff --git a/src/gridstack.ts b/src/gridstack.ts
index 32f3666b8..45280842d 100644
--- a/src/gridstack.ts
+++ b/src/gridstack.ts
@@ -1197,9 +1197,11 @@ export class GridStack {
 
     /** called when item starts moving/resizing */
     let onStartMoving = (event, ui) => {
+      let target: HTMLElement = event.target;
+
       // trigger any 'dragstart' / 'resizestart' manually
       if (this._gsEventHandler[event.type]) {
-        this._gsEventHandler[event.type](event, event.target);
+        this._gsEventHandler[event.type](event, target);
       }
 
       this.engine.cleanNodes();
@@ -1207,8 +1209,6 @@ export class GridStack {
       cellWidth = this.cellWidth();
       cellHeight = this.getCellHeight();
 
-      let { target } = event;
-
       this.placeholder.setAttribute('data-gs-x', target.getAttribute('data-gs-x'));
       this.placeholder.setAttribute('data-gs-y', target.getAttribute('data-gs-y'));
       this.placeholder.setAttribute('data-gs-width', target.getAttribute('data-gs-width'));
@@ -1219,20 +1219,10 @@ export class GridStack {
       node._beforeDragX = node.x;
       node._beforeDragY = node.y;
       node._prevYPix = ui.position.top;
-      let minHeight = (node.minHeight || 1);
 
       // mineHeight - Each row is cellHeight + margin
       this.dd.resizable(el, 'option', 'minWidth', cellWidth * (node.minWidth || 1));
-      this.dd.resizable(el, 'option', 'minHeight', cellHeight * minHeight);
-
-      if (event.type === 'resizestart') {
-        let itemElement = target.querySelector('.grid-stack-item') as HTMLElement;
-        if (itemElement) {
-          let ev = document.createEvent('HTMLEvents');
-          ev.initEvent('resizestart', true, false);
-          itemElement.dispatchEvent(event);
-        }
-      }
+      this.dd.resizable(el, 'option', 'minHeight', cellHeight * (node.minHeight || 1));
     }
 
     /** called when item is being dragged/resized */