diff --git a/pygmt/src/legend.py b/pygmt/src/legend.py
index 47901676aac..5b6fb0fcd4a 100644
--- a/pygmt/src/legend.py
+++ b/pygmt/src/legend.py
@@ -3,12 +3,13 @@
 """
 
 import io
+from collections.abc import Sequence
 from typing import Literal
 
-from pygmt._typing import PathLike
-from pygmt.alias import AliasSystem
+from pygmt._typing import AnchorCode, PathLike
+from pygmt.alias import Alias, AliasSystem
 from pygmt.clib import Session
-from pygmt.exceptions import GMTTypeError
+from pygmt.exceptions import GMTInvalidInput, GMTTypeError
 from pygmt.helpers import (
     build_arg_list,
     data_kind,
@@ -20,18 +21,21 @@
 
 
 @fmt_docstring
-@use_alias(
-    R="region",
-    D="position",
-    F="box",
-    p="perspective",
-)
+@use_alias(R="region", D="position", F="box", p="perspective")
 @kwargs_to_strings(R="sequence", p="sequence")
-def legend(
+def legend(  # noqa: PLR0913
     self,
     spec: PathLike | io.StringIO | None = None,
     projection=None,
-    position="JTR+jTR+o0.2c",
+    position: Sequence[float | str] | AnchorCode | None = None,
+    position_type: Literal[
+        "mapcoords", "boxcoords", "plotcoords", "inside", "outside"
+    ] = "plotcoords",
+    anchor: AnchorCode | None = None,
+    anchor_offset: Sequence[float | str] | None = None,
+    width=None,
+    height=None,
+    spacing=None,
     box="+gwhite+p1p",
     verbose: Literal["quiet", "error", "warning", "timing", "info", "compat", "debug"]
     | bool = False,
@@ -69,14 +73,51 @@ def legend(
         See :gmt-docs:`legend.html` for the definition of the legend specification.
     {projection}
     {region}
-    position : str
-        [**g**\|\ **j**\|\ **J**\|\ **n**\|\ **x**]\ *refpoint*\
-        **+w**\ *width*\ [/*height*]\ [**+j**\ *justify*]\ [**+l**\ *spacing*]\
-        [**+o**\ *dx*\ [/*dy*]].
-        Define the reference point on the map for the
-        legend. By default, uses **JTR**\ **+jTR**\ **+o**\ 0.2c which
-        places the legend at the top-right corner inside the map frame, with a
-        0.2 cm offset.
+    position/position_type
+        Specify the reference point on the map for the directional rose. The reference
+        point can be specified in five different ways, which is selected by the
+        **position_type** parameter. The actual reference point is then given by the
+        coordinates or code specified by the **position** parameter.
+
+        The **position_type** parameter can be one of the following:
+
+        - ``"mapcoords"``: **position** is given as (*longitude*, *latitude*) in map
+          coordinates.
+        - ``"boxcoords"``: **position** is given as (*nx*, *ny*) in normalized
+          coordinates, i.e., fractional coordinates between 0 and 1 in both the x and y
+          directions. For example, (0, 0) is the lower-left corner and (1, 1) is the
+          upper-right corner of the plot bounding box.
+        - ``"plotcoords"``: **position** is given as (x, y) in plot coordinates, i.e.,
+          the distances in inches, centimeters, or points from the lower left plot
+          origin.
+        - ``"inside"`` or ``"outside"``: **position** is one of the nine
+          :doc:`2-character justification codes </techref/justification_codes>`, meaning
+          placing the reference point at specific locations, either inside or outside
+          the plot bounding box.
+    anchor
+        Anchor point of the directional rose, specified by one of the
+        :doc:`2-character justification codes </techref/justification_codes>`.
+        The default value depends on the **position_type** parameter.
+
+        - ``position_type="inside"``: **anchor** defaults to the same as **position**.
+        - ``position_type="outside"``: **anchor** defaults to the mirror opposite of
+          **position**.
+        - Otherwise, **anchor** defaults to ``"MC"`` (middle center).
+    anchor_offset
+        *offset* or (*offset_x*, *offset_y*).
+        Offset the anchor point by *offset_x* and *offset_y*. If a single value *offset*
+        is given, *offset_y* = *offset_x* = *offset*.
+    width/height
+        Width and height of the legend box in plot coordinates (inches, cm, etc.). If
+        unit is % (percentage) then width as computed as that fraction of the map width.
+        If height is given as percentage then then height is recomputed as that fraction
+        of the legend width (not map height). Note: If **width** is not given then the
+        width is computed within the Postscript code. Currently, this is only possible
+        if just legend codes D, H, L, S, or V are used and that the number of symbol
+        columns (N) is 1. If **height** is zero or not given then we estimate height
+        based the expected vertical extent of the items to be placed.
+    spacing
+        Line spacing factor in units of the current font size [Default is 1.1].
     box : bool or str
         [**+c**\ *clearances*][**+g**\ *fill*][**+i**\ [[*gap*/]\ *pen*]]\
         [**+p**\ [*pen*]][**+r**\ [*radius*]][**+s**\ [[*dx*/*dy*/][*shade*]]].
@@ -104,7 +145,31 @@ def legend(
             type(spec), reason="Only one legend specification file is allowed."
         )
 
-    aliasdict = AliasSystem().add_common(
+    if height is not None and width is None:
+        msg = "Parameter 'width' must be given if 'height' is specified."
+        raise GMTInvalidInput(msg)
+
+    _dimension = (width, height) if height is not None else width
+    aliasdict = AliasSystem(
+        D=[
+            Alias(
+                position_type,
+                name="position_type",
+                mapping={
+                    "mapcoords": "g",
+                    "boxcoords": "n",
+                    "plotcoords": "x",
+                    "inside": "j",
+                    "outside": "J",
+                },
+            ),
+            Alias(position, name="position", sep="/", size=2),
+            Alias(anchor, name="anchor", prefix="+j"),
+            Alias(anchor_offset, name="anchor_offset", prefix="+o", sep="/", size=2),
+            Alias(_dimension, name="width/height", prefix="+w"),
+            Alias(spacing, name="spacing", prefix="+l"),
+        ],
+    ).add_common(
         J=projection,
         V=verbose,
         c=panel,