diff --git a/d2graph/layout.go b/d2graph/layout.go
index 7567dfbdc..cdf08e29f 100644
--- a/d2graph/layout.go
+++ b/d2graph/layout.go
@@ -417,7 +417,7 @@ func (edge *Edge) TraceToShape(points []*geo.Point, startIndex, endIndex int) (n
 
 	startingSegment := geo.Segment{Start: points[startIndex+1], End: points[startIndex]}
 	// if an edge runs into an outside label, stop the edge at the label instead
-	overlapsOutsideLabel := false
+	var overlapsOutsideLabel, overlapsOutsideIcon bool
 	if edge.Src.HasLabel() {
 		// assumes LabelPosition, LabelWidth, LabelHeight are all set if there is a label
 		labelPosition := label.FromString(*edge.Src.LabelPosition)
@@ -452,8 +452,43 @@ func (edge *Edge) TraceToShape(points []*geo.Point, startIndex, endIndex int) (n
 				}
 			}
 		}
+	} else if edge.Src.Icon != nil && !srcShape.Is(shape.IMAGE_TYPE) {
+		// assumes IconPosition is set if there is an Icon
+		iconPosition := label.FromString(*edge.Src.IconPosition)
+		if iconPosition.IsOutside() {
+			iconWidth := float64(d2target.MAX_ICON_SIZE)
+			iconHeight := float64(d2target.MAX_ICON_SIZE)
+			iconTL := iconPosition.GetPointOnBox(edge.Src.Box, label.PADDING, iconWidth, iconHeight)
+
+			iconBox := geo.NewBox(iconTL, iconWidth, iconHeight)
+			// TODO not for icons
+			// add left/right padding to box
+			iconBox.TopLeft.X -= label.PADDING
+			iconBox.Width += 2 * label.PADDING
+
+			for iconBox.Contains(startingSegment.End) && startIndex+1 > endIndex {
+				startingSegment.Start = startingSegment.End
+				startingSegment.End = points[startIndex+2]
+				startIndex++
+			}
+			if intersections := iconBox.Intersections(startingSegment); len(intersections) > 0 {
+				overlapsOutsideIcon = true
+				p := intersections[0]
+				if len(intersections) > 1 {
+					p = findOuterIntersection(iconPosition, intersections)
+				}
+				// move starting segment to icon intersection point
+				points[startIndex] = p
+				startingSegment.End = p
+				// if the segment becomes too short, just merge it with the next segment
+				if startIndex+1 < endIndex && startingSegment.Length() < MIN_SEGMENT_LEN {
+					points[startIndex+1] = points[startIndex]
+					startIndex++
+				}
+			}
+		}
 	}
-	if !overlapsOutsideLabel {
+	if !overlapsOutsideLabel && !overlapsOutsideIcon {
 		if intersections := edge.Src.Intersections(startingSegment); len(intersections) > 0 {
 			// move starting segment to intersection point
 			points[startIndex] = intersections[0]
@@ -469,6 +504,7 @@ func (edge *Edge) TraceToShape(points []*geo.Point, startIndex, endIndex int) (n
 	}
 	endingSegment := geo.Segment{Start: points[endIndex-1], End: points[endIndex]}
 	overlapsOutsideLabel = false
+	overlapsOutsideIcon = false
 	if edge.Dst.HasLabel() {
 		// assumes LabelPosition, LabelWidth, LabelHeight are all set if there is a label
 		labelPosition := label.FromString(*edge.Dst.LabelPosition)
@@ -502,8 +538,42 @@ func (edge *Edge) TraceToShape(points []*geo.Point, startIndex, endIndex int) (n
 				}
 			}
 		}
+	} else if edge.Dst.Icon != nil && !dstShape.Is(shape.IMAGE_TYPE) {
+		// assumes IconPosition is set if there is an Icon
+		iconPosition := label.FromString(*edge.Dst.IconPosition)
+		if iconPosition.IsOutside() {
+			iconWidth := float64(d2target.MAX_ICON_SIZE)
+			iconHeight := float64(d2target.MAX_ICON_SIZE)
+			labelTL := iconPosition.GetPointOnBox(edge.Dst.Box, label.PADDING, iconWidth, iconHeight)
+
+			iconBox := geo.NewBox(labelTL, iconWidth, iconHeight)
+			// TODO not for icons
+			// add left/right padding to box
+			iconBox.TopLeft.X -= label.PADDING
+			iconBox.Width += 2 * label.PADDING
+			for iconBox.Contains(endingSegment.Start) && endIndex-1 > startIndex {
+				endingSegment.End = endingSegment.Start
+				endingSegment.Start = points[endIndex-2]
+				endIndex--
+			}
+			if intersections := iconBox.Intersections(endingSegment); len(intersections) > 0 {
+				overlapsOutsideIcon = true
+				p := intersections[0]
+				if len(intersections) > 1 {
+					p = findOuterIntersection(iconPosition, intersections)
+				}
+				// move ending segment to icon intersection point
+				points[endIndex] = p
+				endingSegment.End = p
+				// if the segment becomes too short, just merge it with the previous segment
+				if endIndex-1 > startIndex && endingSegment.Length() < MIN_SEGMENT_LEN {
+					points[endIndex-1] = points[endIndex]
+					endIndex--
+				}
+			}
+		}
 	}
-	if !overlapsOutsideLabel {
+	if !overlapsOutsideLabel && !overlapsOutsideIcon {
 		if intersections := edge.Dst.Intersections(endingSegment); len(intersections) > 0 {
 			// move ending segment to intersection point
 			points[endIndex] = intersections[0]