hi N., i had the same problem, still do sometimes, but overall the swaddle is great. first of all, PLEASE do not lie your baby on her stomach, im sure you know, i just had to say it. secondly, its most likely that she is waking often because thats what they do. i have a 4.5 year old son, a 2 year old daughter, and a 4 month old son. i havent slept in 5 years :) ... but, you can try leaving an arm out like the other moms said. what works well for me is to use a sleep positioner (or just a rolled up receiving blanket or small towel) to have the baby sleep on kind of a tilt, position it just slightly under one side, under her shoulder and less so under her butt so she cant roll over as she gets bigger. then leave out the arm that is on the "down" side. that way it is free, but she is leaning on it a tiny bit so it wont flail around. (switch sides so she doesnt get a flat head on one side, it happens quickly.) that is what worked best for me. also, you can try folding her arms inward a bit when you swaddle her, so they are across her tummy instead of at her sides. . be sure she isnt too hot. one layer under a swaddle is probably enough. and by the way, old navy has these swaddling blankets that are the best ive tried, if you look, they are on sale, a thin flannel with wintery things on them, and they are really big and nice and light and the flannel helps them kind of stick. the swaddlers are awesome, but be careful as the baby gets bigger. the 2 flaps that come across the body and get velcro-ed are partially open on the bottom, and when my daughter got a little stronger, she got her little hands out through that opening on the bottom and managed to work the flaps up, but the velcro across the middle stayed put, so i woke up to find her with the thing around her neck. it freaked me out so bad that i only use blankets now. good luck to you and congrats :)