Yes, the diaper is the same size as the whole baby, but it will fit.

After getting used to diapering your baby, you will be able to fold the diaper and lay
it in the wrap then slip the unit under your baby. To demonstrate the folding, however, the folding steps are shown with the baby already on the diaper without the wrap.

Fold the back of the PooPockets™ Diaper down as shown. The back edge of the diaper is now about even with the center of the gussets.

The new back edge, which is the folded edge, should be lined up with the baby's waist (even with the belly button).

Bring the diaper up between the baby's legs, pleating the center a little if necessary.

Fold the front edge down to fit. If the baby still has the umbilical cord, it can be covered by the diaper since cloth diapers are soft and clean fabric.

On one side, bring the back of the diaper around to overlap the diaper front.

On the same side, bring the back of the wrap around to overlap the front of the wrap and fasten it.

Repeat steps D and E on the other side.

Check to be sure that the entire cloth diaper is inside the diaper wrap. If there is any cloth sticking out, tuck it in, otherwise, when the baby wets, the wetness can wick onto the clothing.

Done!