diff --git a/skimage/transform/_warps.py b/skimage/transform/_warps.py
index 6689430b..0ace0937 100644
--- a/skimage/transform/_warps.py
+++ b/skimage/transform/_warps.py
@@ -163,7 +163,7 @@ def rotate(image, angle, resize=False, order=1, mode='constant', cval=0.):
     tform = tform1 + tform2 + tform3
 
     output_shape = None
-    if not resize:
+    if resize:
         # determine shape of output image
         corners = np.array([[1, 1], [1, rows], [cols, rows], [cols, 1]])
         corners = tform(corners - 1)
diff --git a/skimage/transform/tests/test_warps.py b/skimage/transform/tests/test_warps.py
index 1993f932..2cdda001 100644
--- a/skimage/transform/tests/test_warps.py
+++ b/skimage/transform/tests/test_warps.py
@@ -85,6 +85,17 @@ def test_rotate():
     assert_array_almost_equal(x90, np.rot90(x))
 
 
+def test_rotate_resize():
+    x = np.zeros((10, 10), dtype=np.double)
+    
+    x45 = rotate(x, 45, resize=False)
+    assert x45.shape == (10, 10)
+    
+    x45 = rotate(x, 45, resize=True)
+    # new dimension should be d = sqrt(2 * (10/2)^2)
+    assert x45.shape == (14, 14)
+
+
 def test_rescale():
     # same scale factor
     x = np.zeros((5, 5), dtype=np.double)