diff --git a/d2layouts/d2dagrelayout/layout.go b/d2layouts/d2dagrelayout/layout.go
index 39cd1f9fe..e033c61e7 100644
--- a/d2layouts/d2dagrelayout/layout.go
+++ b/d2layouts/d2dagrelayout/layout.go
@@ -238,7 +238,7 @@ func Layout(ctx context.Context, g *d2graph.Graph, opts *ConfigurableOpts) (err
 		obj.Width = math.Ceil(dn.Width)
 		obj.Height = math.Ceil(dn.Height)
 
-		if obj.HasLabel() {
+		if obj.HasLabel() && obj.LabelPosition == nil {
 			if len(obj.ChildrenArray) > 0 {
 				obj.LabelPosition = go2.Pointer(string(label.OutsideTopCenter))
 			} else if obj.HasOutsideBottomLabel() {
@@ -251,7 +251,7 @@ func Layout(ctx context.Context, g *d2graph.Graph, opts *ConfigurableOpts) (err
 				obj.LabelPosition = go2.Pointer(string(label.InsideMiddleCenter))
 			}
 		}
-		if obj.Icon != nil {
+		if obj.Icon != nil && obj.IconPosition == nil {
 			if len(obj.ChildrenArray) > 0 {
 				obj.IconPosition = go2.Pointer(string(label.OutsideTopLeft))
 				obj.LabelPosition = go2.Pointer(string(label.OutsideTopRight))
diff --git a/d2layouts/d2elklayout/layout.go b/d2layouts/d2elklayout/layout.go
index be6687f7e..2fb5e160d 100644
--- a/d2layouts/d2elklayout/layout.go
+++ b/d2layouts/d2elklayout/layout.go
@@ -407,7 +407,7 @@ func Layout(ctx context.Context, g *d2graph.Graph, opts *ConfigurableOpts) (err
 		obj.Width = math.Ceil(n.Width)
 		obj.Height = math.Ceil(n.Height)
 
-		if obj.HasLabel() {
+		if obj.HasLabel() && obj.LabelPosition == nil {
 			if len(obj.ChildrenArray) > 0 {
 				obj.LabelPosition = go2.Pointer(string(label.InsideTopCenter))
 			} else if obj.HasOutsideBottomLabel() {
@@ -419,7 +419,7 @@ func Layout(ctx context.Context, g *d2graph.Graph, opts *ConfigurableOpts) (err
 				obj.LabelPosition = go2.Pointer(string(label.InsideMiddleCenter))
 			}
 		}
-		if obj.Icon != nil {
+		if obj.Icon != nil && obj.IconPosition == nil {
 			if len(obj.ChildrenArray) > 0 {
 				obj.IconPosition = go2.Pointer(string(label.InsideTopLeft))
 				obj.LabelPosition = go2.Pointer(string(label.InsideTopRight))
diff --git a/d2layouts/d2grid/layout.go b/d2layouts/d2grid/layout.go
index a84209808..390470583 100644
--- a/d2layouts/d2grid/layout.go
+++ b/d2layouts/d2grid/layout.go
@@ -8,6 +8,7 @@ import (
 	"sort"
 
 	"oss.terrastruct.com/d2/d2graph"
+	"oss.terrastruct.com/d2/d2target"
 	"oss.terrastruct.com/d2/lib/geo"
 	"oss.terrastruct.com/d2/lib/label"
 	"oss.terrastruct.com/util-go/go2"
@@ -112,62 +113,88 @@ func withoutGridDiagrams(ctx context.Context, g *d2graph.Graph, layout d2graph.L
 				gd.shift(innerBox.TopLeft.X, innerBox.TopLeft.Y)
 			}
 
+			// compute how much space the label and icon occupy
+			var occupiedWidth, occupiedHeight float64
+			if obj.Icon != nil {
+				iconSpace := float64(d2target.MAX_ICON_SIZE + 2*label.PADDING)
+				occupiedWidth = iconSpace
+				occupiedHeight = iconSpace
+			}
+
 			var dx, dy float64
-			if obj.LabelDimensions.Width != 0 {
-				labelWidth := float64(obj.LabelDimensions.Width) + 2*label.PADDING
-				if labelWidth > obj.Width {
-					dx = (labelWidth - obj.Width) / 2
-					obj.Width = labelWidth
-				}
-			}
 			if obj.LabelDimensions.Height != 0 {
-				labelHeight := float64(obj.LabelDimensions.Height) + 2*label.PADDING
-
-				// also check for grid cells with outside top labels
-				// the first grid object is at the top (and always exists)
-				topY := gd.objects[0].TopLeft.Y
-				highestLabel := topY
-				for _, o := range gd.objects {
-					// we only want to compute label positions for objects at the top of the grid
-					if o.TopLeft.Y > topY {
-						if gd.rowDirected {
-							// if the grid is rowDirected (row1, row2, etc) we can stop after finishing the first row
-							break
-						} else {
-							// otherwise we continue until the next column
-							continue
-						}
-					}
-					if o.LabelPosition != nil {
-						labelPosition := label.Position(*o.LabelPosition)
-						if labelPosition.IsOutside() {
-							labelTL := o.GetLabelTopLeft()
-							if labelTL.Y < highestLabel {
-								highestLabel = labelTL.Y
-							}
-						}
-					}
-				}
-				if highestLabel < topY {
-					labelHeight += topY - highestLabel + 2*label.PADDING
-				}
-
-				if labelHeight > float64(verticalPadding) {
-					// if the label doesn't fit within the padding, we need to add more
-					grow := labelHeight - float64(verticalPadding)
-					dy = grow
-					obj.Height += grow
+				occupiedHeight = math.Max(
+					occupiedHeight,
+					float64(obj.LabelDimensions.Height)+2*label.PADDING,
+				)
+			}
+			if obj.LabelDimensions.Width != 0 {
+				// . ├────┤───────├────┤
+				// .  icon  label  icon
+				// with an icon in top left we need 2x the space to fit the label in the center
+				occupiedWidth *= 2
+				occupiedWidth += float64(obj.LabelDimensions.Width) + 2*label.PADDING
+				if occupiedWidth > obj.Width {
+					dx = (occupiedWidth - obj.Width) / 2
+					obj.Width = occupiedWidth
 				}
 			}
+
+			// also check for grid cells with outside top labels or icons
+			// the first grid object is at the top (and always exists)
+			topY := gd.objects[0].TopLeft.Y
+			highestOutside := topY
+			for _, o := range gd.objects {
+				// we only want to compute label positions for objects at the top of the grid
+				if o.TopLeft.Y > topY {
+					if gd.rowDirected {
+						// if the grid is rowDirected (row1, row2, etc) we can stop after finishing the first row
+						break
+					} else {
+						// otherwise we continue until the next column
+						continue
+					}
+				}
+				if o.LabelPosition != nil {
+					labelPosition := label.Position(*o.LabelPosition)
+					if labelPosition.IsOutside() {
+						labelTL := o.GetLabelTopLeft()
+						if labelTL.Y < highestOutside {
+							highestOutside = labelTL.Y
+						}
+					}
+				}
+				if o.IconPosition != nil {
+					switch label.Position(*o.IconPosition) {
+					case label.OutsideTopLeft, label.OutsideTopCenter, label.OutsideTopRight:
+						iconSpace := float64(d2target.MAX_ICON_SIZE + label.PADDING)
+						if topY-iconSpace < highestOutside {
+							highestOutside = topY - iconSpace
+						}
+					}
+				}
+			}
+			if highestOutside < topY {
+				occupiedHeight += topY - highestOutside + 2*label.PADDING
+			}
+			if occupiedHeight > float64(verticalPadding) {
+				// if the label doesn't fit within the padding, we need to add more
+				dy = occupiedHeight - float64(verticalPadding)
+				obj.Height += dy
+			}
+
 			// we need to center children if we have to expand to fit the container label
 			if dx != 0 || dy != 0 {
 				gd.shift(dx, dy)
 			}
 		}
 
-		if obj.LabelPosition == nil {
+		if obj.HasLabel() {
 			obj.LabelPosition = go2.Pointer(string(label.InsideTopCenter))
 		}
+		if obj.Icon != nil {
+			obj.IconPosition = go2.Pointer(string(label.InsideTopLeft))
+		}
 		gridDiagrams[obj.AbsID()] = gd
 
 		for _, o := range gd.objects {