diff --git a/NEWS.md b/NEWS.md
index e6eeda24..4932e252 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -25,6 +25,8 @@
 
 * `print.dtplyr_step()` gains `n`, `max_extra_cols`, and `max_footer_lines` args (#464)
 
+* `transmute()` preserves row count and avoids unnecessary copies (#470)
+
 # dtplyr 1.3.1
 
 * Fix for failing R CMD check.
diff --git a/R/step-subset-transmute.R b/R/step-subset-transmute.R
index b2c6e20c..20b137dc 100644
--- a/R/step-subset-transmute.R
+++ b/R/step-subset-transmute.R
@@ -13,41 +13,10 @@
 #' dt <- lazy_dt(dplyr::starwars)
 #' dt %>% transmute(name, sh = paste0(species, "/", homeworld))
 transmute.dtplyr_step <- function(.data, ...) {
-  dots <- capture_new_vars(.data, ...)
-  dots_list <- process_new_vars(.data, dots)
-  dots <- dots_list$dots
-
-  groups <- group_vars(.data)
-  if (!is_empty(groups)) {
-    # TODO could check if there is actually anything mutated, e.g. to avoid
-    # DT[, .(x = x)]
-    is_group_var <- names(dots) %in% groups
-    group_dots <- dots[is_group_var]
-
-    .data <- mutate(ungroup(.data), !!!group_dots)
-    .data <- group_by(.data, !!!syms(groups))
-
-    dots <- dots[!is_group_var]
-  }
-
-  if (is_empty(dots)) {
-    # grouping variables have been removed from `dots` so `select()` would
-    # produce a message "Adding grouping vars".
-    # As `dplyr::transmute()` doesn't generate a message when adding group vars
-    # we can also leave it away here
-    return(select(.data, !!!group_vars(.data)))
-  }
-
-  if (!dots_list$use_braces) {
-    j <- call2(".", !!!dots)
-  } else {
-    j <- mutate_with_braces(dots)$expr
-  }
-  vars <- union(group_vars(.data), names(dots))
-  out <- step_subset_j(.data, vars = vars, j = j)
-  if (dots_list$need_removal_step) {
-    out <- select(out, -tidyselect::all_of(dots_list$vars_removed))
-  }
-
-  out
+  out <- mutate(.data, ..., .keep = "none")
+  cols_expr <- names(capture_new_vars(.data, ...))
+  cols_group <- group_vars(.data)
+  cols_group <- setdiff(cols_group, cols_expr)
+  cols_retain <- c(cols_group, cols_expr)
+  select(out, any_of(cols_retain))
 }
diff --git a/tests/testthat/_snaps/step-call.md b/tests/testthat/_snaps/step-call.md
index fc85d2d0..b1ff0514 100644
--- a/tests/testthat/_snaps/step-call.md
+++ b/tests/testthat/_snaps/step-call.md
@@ -17,6 +17,13 @@
     Output
       setnames(copy(DT), c("a", "b", "c"), toupper)
 
+# can compute distinct computed variables
+
+    Code
+      dt %>% distinct(z = x + y) %>% show_query()
+    Output
+      unique(copy(dt)[, `:=`(z = x + y)][, `:=`(c("x", "y"), NULL)])
+
 # errors are raised
 
     Code
diff --git a/tests/testthat/test-step-call.R b/tests/testthat/test-step-call.R
index 2ff4e8d6..0b17dfad 100644
--- a/tests/testthat/test-step-call.R
+++ b/tests/testthat/test-step-call.R
@@ -136,9 +136,8 @@ test_that("keeps all variables if requested", {
 test_that("can compute distinct computed variables", {
   dt <- lazy_dt(data.table(x = c(1, 1), y = c(1, 2)), "dt")
 
-  expect_equal(
-    dt %>% distinct(z = x + y) %>% show_query(),
-    expr(unique(dt[, .(z = x + y)]))
+  expect_snapshot(
+    dt %>% distinct(z = x + y) %>% show_query()
   )
 
   expect_equal(
diff --git a/tests/testthat/test-step-mutate.R b/tests/testthat/test-step-mutate.R
index 172c8e52..14756c41 100644
--- a/tests/testthat/test-step-mutate.R
+++ b/tests/testthat/test-step-mutate.R
@@ -59,11 +59,6 @@ test_that("generates single calls as expect", {
     dt %>% group_by(x) %>% mutate(x2 = x * 2) %>% show_query(),
     expr(copy(DT)[, `:=`(x2 = x * 2), by = .(x)])
   )
-
-  expect_equal(
-    dt %>% transmute(x2 = x * 2) %>% show_query(),
-    expr(DT[, .(x2 = x * 2)])
-  )
 })
 
 test_that("mutate generates compound expression if needed", {
diff --git a/tests/testthat/test-step-subset-summarise.R b/tests/testthat/test-step-subset-summarise.R
index fae4eba3..6e7921da 100644
--- a/tests/testthat/test-step-subset-summarise.R
+++ b/tests/testthat/test-step-subset-summarise.R
@@ -5,11 +5,6 @@ test_that("simple calls generate expected translations", {
     dt %>% summarise(x = mean(x)) %>% show_query(),
     expr(DT[, .(x = mean(x))])
   )
-
-  expect_equal(
-    dt %>% transmute(x) %>% show_query(),
-    expr(DT[, .(x = x)])
-  )
 })
 
 test_that("can use with across", {
diff --git a/tests/testthat/test-step-subset-transmute.R b/tests/testthat/test-step-subset-transmute.R
index e892fb51..1059ccfb 100644
--- a/tests/testthat/test-step-subset-transmute.R
+++ b/tests/testthat/test-step-subset-transmute.R
@@ -1,249 +1,34 @@
-test_that("simple calls generate expected translations", {
+test_that("works", {
   dt <- lazy_dt(data.table(x = 1, y = 1, z = 1), "DT")
 
   expect_equal(
-    dt %>% transmute(x) %>% show_query(),
-    expr(DT[, .(x = x)])
+    dt %>% transmute(x) %>% collect(),
+    dt %>% mutate(x, .keep = "none") %>% collect()
   )
 })
 
-test_that("transmute generates compound expression if needed", {
-  dt <- lazy_dt(data.table(x = 1, y = 2), "DT")
-
-  expect_equal(
-    dt %>% transmute(x2 = x * 2, x4 = x2 * 2) %>% show_query(),
-    expr(DT[, {
-      x2 <- x * 2
-      x4 <- x2 * 2
-      .(x2, x4)
-    }])
-  )
-})
-
-test_that("allows multiple assignment to the same variable", {
-  dt <- lazy_dt(data.table(x = 1, y = 2), "DT")
-
-  # when nested
-  expect_equal(
-    dt %>% transmute(x = x * 2, x = x * 2) %>% show_query(),
-    expr(DT[, {
-      x <- x * 2
-      x <- x * 2
-      .(x)
-    }])
-  )
-
-  # when not nested
-  expect_equal(
-    dt %>% transmute(z = 2, y = 3) %>% show_query(),
-    expr(DT[, .(z = 2, y = 3)])
-  )
-})
-
-
-test_that("groups are respected", {
-  dt <- lazy_dt(data.table(x = 1), "DT") %>% group_by(x) %>% transmute(y = 2)
-
-  expect_equal(dt$vars, c("x", "y"))
-  expect_equal(
-    dt %>% show_query(),
-    expr(DT[, .(y = 2), keyby = .(x)])
-  )
-})
-
-test_that("grouping vars can be transmuted", {
-  dt <- lazy_dt(data.table(x = 1), "DT") %>% group_by(x) %>% transmute(x = x + 1, y = 2)
+test_that("empty dots preserves groups", {
+  dt <- lazy_dt(data.table(x = 1, y = 1, z = 1), "DT") %>%
+    group_by(y)
 
-  expect_equal(dt$vars, c("x", "y"))
-  expect_equal(dt$groups, "x")
-  expect_equal(
-    dt %>% show_query(),
-    expr(copy(DT)[, `:=`(x = x + 1)][, .(y = 2), keyby = .(x)])
-  )
-
-  skip("transmuting grouping vars with nesting is not supported")
-  dt <- lazy_dt(data.table(x = 1), "DT") %>%
-    group_by(x) %>%
-    transmute(x = x + 1, y = x + 1, x = y + 1)
+  res <- dt %>% transmute() %>% collect()
 
-  expect_equal(dt$vars, c("x", "y"))
-  expect_equal(
-    dt %>% collect(),
-    tibble(x = 4, y = 3) %>% group_by(x)
-  )
+  expect_equal(names(res), "y")
 })
 
-test_that("empty transmute works", {
-  dt <- lazy_dt(data.frame(x = 1), "DT")
-  expect_equal(transmute(dt) %>% show_query(), expr(DT[, 0L]))
-  expect_equal(transmute(dt)$vars, character())
-  expect_equal(transmute(dt, !!!list()) %>% show_query(), expr(DT[, 0L]))
+test_that("preserves column order", {
+  dt <- lazy_dt(data.table(x = 1, y = 1), "DT")
 
-  dt_grouped <- lazy_dt(data.frame(x = 1), "DT") %>% group_by(x)
-  expect_equal(transmute(dt_grouped)$vars, "x")
-})
+  res <- dt %>% transmute(y, x) %>% collect()
 
-test_that("only transmuting groups works", {
-  dt <- lazy_dt(data.frame(x = 1)) %>% group_by(x)
-  expect_equal(transmute(dt, x) %>% collect(), dt %>% collect())
-  expect_equal(transmute(dt, x)$vars, "x")
+  expect_equal(names(res), c("y", "x"))
 })
 
-test_that("across() can access previously created variables", {
-  dt <- lazy_dt(data.frame(x = 1), "DT")
-  step <- transmute(dt, y = 2, across(y, sqrt))
-  expect_equal(
-    collect(step),
-    tibble(y = sqrt(2))
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-      y <- 2
-      y <- sqrt(y)
-      .(y)
-    }])
-  )
-})
-
-test_that("new columns take precedence over global variables", {
-  dt <- lazy_dt(data.frame(x = 1), "DT")
-  y <- 'global var'
-  step <- transmute(dt, y = 2, z = y + 1)
-  expect_equal(
-    collect(step),
-    tibble(y = 2, z = 3)
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-      y <- 2
-      z <- y + 1
-      .(y, z)
-    }])
-  )
-})
-
-# var = NULL -------------------------------------------------------------
-
-test_that("var = NULL when var is in original data", {
-  dt <- lazy_dt(data.frame(x = 1), "DT")
-  step <- dt %>% transmute(x = 2, z = x*2, x = NULL)
-  expect_equal(
-    collect(step),
-    tibble(z = 4)
-  )
-  expect_equal(
-    step$vars,
-    "z"
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-      x <- 2
-      z <- x * 2
-      .(x, z)
-    }][, `:=`("x", NULL)])
-  )
-})
-
-test_that("var = NULL when var is in final output", {
-  dt <- lazy_dt(data.frame(x = 1), "DT")
-  step <- transmute(dt, y = NULL, y = 3)
-  expect_equal(
-    collect(step),
-    tibble(y = 3)
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-      y <- NULL
-      y <- 3
-      .(y)
-    }])
-  )
-})
-
-test_that("temp var with nested arguments", {
-  dt <- lazy_dt(data.frame(x = 1), "DT")
-  step <- transmute(dt, y = 2, z = y*2, y = NULL)
-  expect_equal(
-    collect(step),
-    tibble(z = 4)
-  )
-  expect_equal(
-    step$vars,
-    "z"
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-        y <- 2
-        z <- y * 2
-        .(y, z)
-    }][, `:=`("y", NULL)])
-  )
-})
-
-test_that("temp var with no new vars added", {
-  dt <- lazy_dt(data.frame(x = 1), "DT")
-  step <- transmute(dt, y = 2, y = NULL)
-  expect_equal(
-    collect(step),
-    tibble()
-  )
-  expect_equal(
-    step$vars,
-    character()
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-      y <- 2
-      .(y)
-    }][, `:=`("y", NULL)])
-  )
-})
-
-test_that("var = NULL works when data is grouped", {
-  dt <- lazy_dt(data.frame(x = 1, g = 1), "DT") %>% group_by(g)
+test_that("works correctly when column is both added and removed in the same call", {
+  dt <- lazy_dt(data.table(x = 1, y = 2), "DT")
 
-  # when var is in original data
-  step <- dt %>% transmute(x = 2, z = x*2, x = NULL)
-  expect_equal(
-    collect(step),
-    tibble(g = 1, z = 4) %>% group_by(g)
-  )
-  expect_equal(
-    step$vars,
-    c("g", "z")
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-      x <- 2
-      z <- x * 2
-      .(x, z)
-    }, keyby = .(g)][, `:=`("x", NULL)])
-  )
+  res <- dt %>% transmute(y, z = 3, z = NULL) %>% collect()
 
-  # when var is not in original data
-  step <- transmute(dt, y = 2, z = y*2, y = NULL)
-  expect_equal(
-    collect(step),
-    tibble(g = 1, z = 4) %>% group_by(g)
-  )
-  expect_equal(
-    step$vars,
-    c("g", "z")
-  )
-  expect_equal(
-    show_query(step),
-    expr(DT[, {
-      y <- 2
-      z <- y * 2
-      .(y, z)
-    }, keyby = .(g)][, `:=`("y", NULL)])
-  )
+  expect_equal(names(res), "y")
 })