diff --git a/src/render.js b/src/render.js
index 486585f..12c1de5 100644
--- a/src/render.js
+++ b/src/render.js
@@ -191,7 +191,39 @@ function distance(a, b) {
   return Math.hypot(a.x - b.x, a.y - b.y);
 }
 
-function pickLabelPoints(points, maxCount, used, minSpacing, avoidPoints = []) {
+function rectFromLabelPoint(point, width = 78, height = 14) {
+  return {
+    x: point.x - 2,
+    y: point.y - height + 2,
+    width,
+    height
+  };
+}
+
+function rectsOverlap(a, b) {
+  return a.x < b.x + b.width && a.x + a.width > b.x && a.y < b.y + b.height && a.y + a.height > b.y;
+}
+
+function pointInRect(point, rect) {
+  return point.x >= rect.x && point.x <= rect.x + rect.width && point.y >= rect.y && point.y <= rect.y + rect.height;
+}
+
+function withCandidateOffsets(point) {
+  const offsets = [
+    [0, 0],
+    [0, -10],
+    [0, 10],
+    [10, 0],
+    [-10, 0],
+    [14, -10],
+    [-14, -10],
+    [14, 10],
+    [-14, 10]
+  ];
+  return offsets.map(([dx, dy]) => ({ x: point.x + dx, y: point.y + dy }));
+}
+
+function pickLabelPoints(points, maxCount, used, usedRects, minSpacing, avoidPoints = [], blockedRects = []) {
   const accepted = [];
 
   for (const p of points) {
@@ -199,29 +231,55 @@ function pickLabelPoints(points, maxCount, used, minSpacing, avoidPoints = []) {
       break;
     }
 
-    let blocked = false;
-    for (const prev of used) {
-      if (distance(p, prev) < minSpacing) {
-        blocked = true;
-        break;
+    const candidates = withCandidateOffsets(p);
+    for (const candidate of candidates) {
+      let blocked = false;
+      for (const prev of used) {
+        if (distance(candidate, prev) < minSpacing) {
+          blocked = true;
+          break;
+        }
       }
-    }
-    if (blocked) {
-      continue;
-    }
-
-    for (const pin of avoidPoints) {
-      if (distance(p, pin) < minSpacing * 0.9) {
-        blocked = true;
-        break;
+      if (blocked) {
+        continue;
       }
-    }
-    if (blocked) {
-      continue;
-    }
 
-    accepted.push(p);
-    used.push(p);
+      for (const pin of avoidPoints) {
+        if (distance(candidate, pin) < minSpacing * 0.9) {
+          blocked = true;
+          break;
+        }
+      }
+      if (blocked) {
+        continue;
+      }
+
+      const labelRect = rectFromLabelPoint(candidate);
+      for (const usedRect of usedRects) {
+        if (rectsOverlap(labelRect, usedRect)) {
+          blocked = true;
+          break;
+        }
+      }
+      if (blocked) {
+        continue;
+      }
+
+      for (const blockedRect of blockedRects) {
+        if (rectsOverlap(labelRect, blockedRect) || pointInRect(candidate, blockedRect)) {
+          blocked = true;
+          break;
+        }
+      }
+      if (blocked) {
+        continue;
+      }
+
+      accepted.push(candidate);
+      used.push(candidate);
+      usedRects.push(labelRect);
+      break;
+    }
   }
 
   return accepted;
@@ -309,6 +367,7 @@ export function renderSvgFromLayout(model, layout, options = {}) {
   const pinNets = pinNetMap(model);
   const netClassByName = new Map((model.nets ?? []).map((n) => [n.name, n.class]));
   const allPinPoints = [];
+  const componentRects = [];
 
   const components = layout.placed
     .map((inst) => {
@@ -318,6 +377,12 @@ export function renderSvgFromLayout(model, layout, options = {}) {
       const rotation = normalizeRotation(inst.placement.rotation ?? 0);
       const cx = x + sym.body.width / 2;
       const cy = y + sym.body.height / 2;
+      componentRects.push({
+        x: x - 6,
+        y: y - 6,
+        width: sym.body.width + 12,
+        height: sym.body.height + 12
+      });
       const templateKind = symbolTemplateKind(sym);
       const compactLabel = templateKind || sym.body.width <= 140 || sym.body.height <= 90;
       const legacyShowInstanceNetLabels = Boolean(inst.properties?.show_net_labels);
@@ -471,8 +536,20 @@ export function renderSvgFromLayout(model, layout, options = {}) {
 
   const routedByName = new Map(layout.routed.map((r) => [r.net.name, r]));
   const usedLabelPoints = [];
+  const usedLabelRects = [];
   const labels = [];
   const tieLabels = [];
+  const blockedLabelRects = [{ x: 6, y: 6, width: 126, height: 86 }, ...componentRects];
+  const annotationEntries = (model.annotations ?? []).map((a, idx) => {
+    const x = a.x ?? 16;
+    const y = a.y ?? 24 + idx * 16;
+    const yAdjusted = x < 170 && y < 110 ? 110 + idx * 16 : y;
+    const text = String(a.text ?? "");
+    return { x, y: yAdjusted, text, width: Math.max(90, Math.min(640, text.length * 6.2)), height: 14 };
+  });
+  for (const ann of annotationEntries) {
+    blockedLabelRects.push({ x: ann.x - 4, y: ann.y - 12, width: ann.width + 8, height: ann.height + 2 });
+  }
 
   for (const net of model.nets) {
     if (isGroundLikeNet(net)) {
@@ -489,7 +566,15 @@ export function renderSvgFromLayout(model, layout, options = {}) {
 
     if (routeInfo?.mode === "label_tie") {
       candidates.push(...(routeInfo?.labelPoints ?? []));
-      const selected = pickLabelPoints(candidates, 1, usedLabelPoints, GRID * 2.4, allPinPoints);
+      const selected = pickLabelPoints(
+        candidates,
+        1,
+        usedLabelPoints,
+        usedLabelRects,
+        GRID * 2.4,
+        allPinPoints,
+        blockedLabelRects
+      );
       for (const p of selected) {
         labels.push(renderNetLabel(p.x, p.y, net.name, net.class, true));
       }
@@ -503,7 +588,15 @@ export function renderSvgFromLayout(model, layout, options = {}) {
       candidates.push({ x: netAnchor.x + 8, y: netAnchor.y - 8 });
     }
 
-    const selected = pickLabelPoints(candidates, 1, usedLabelPoints, GRID * 2.4, allPinPoints);
+    const selected = pickLabelPoints(
+      candidates,
+      1,
+      usedLabelPoints,
+      usedLabelRects,
+      GRID * 2.4,
+      allPinPoints,
+      blockedLabelRects
+    );
     for (const p of selected) {
       labels.push(renderNetLabel(p.x, p.y, net.name, net.class));
     }
@@ -511,6 +604,7 @@ export function renderSvgFromLayout(model, layout, options = {}) {
 
   if (showLabels) {
     const usedTieLabels = [];
+    const usedTieRects = [];
     for (const rn of layout.routed) {
       if (rn.mode !== "label_tie" || isGroundLikeNet(rn.net)) {
         continue;
@@ -522,7 +616,15 @@ export function renderSvgFromLayout(model, layout, options = {}) {
       }
 
       const maxPerNet = rn.net.class === "power" ? Math.min(6, candidates.length) : Math.min(2, candidates.length);
-      const selected = pickLabelPoints(candidates, maxPerNet, usedTieLabels, GRID * 1.5, allPinPoints);
+      const selected = pickLabelPoints(
+        candidates,
+        maxPerNet,
+        usedTieLabels,
+        usedTieRects,
+        GRID * 1.5,
+        allPinPoints,
+        blockedLabelRects
+      );
       for (const p of selected) {
         tieLabels.push(renderNetLabel(p.x, p.y, rn.net.name, rn.net.class, true));
       }
@@ -553,11 +655,9 @@ export function renderSvgFromLayout(model, layout, options = {}) {
     })
     .join("\n");
 
-  const annotations = (model.annotations ?? [])
-    .map((a, idx) => {
-      const x = a.x ?? 16;
-      const y = a.y ?? 24 + idx * 16;
-      return `<text x="${x}" y="${y}" font-size="11" fill="#6b7280">${esc(a.text)}</text>`;
+  const annotations = annotationEntries
+    .map((a) => {
+      return `<text x="${a.x}" y="${a.y}" font-size="11" fill="#6b7280">${esc(a.text)}</text>`;
     })
     .join("\n");
 
diff --git a/tests/baselines/ui/dense-analog.png b/tests/baselines/ui/dense-analog.png
index ba8574c..09245a8 100644
Binary files a/tests/baselines/ui/dense-analog.png and b/tests/baselines/ui/dense-analog.png differ
diff --git a/tests/baselines/ui/explicit-mode-auto-tidy.png b/tests/baselines/ui/explicit-mode-auto-tidy.png
index 5d22d32..a476e08 100644
Binary files a/tests/baselines/ui/explicit-mode-auto-tidy.png and b/tests/baselines/ui/explicit-mode-auto-tidy.png differ
diff --git a/tests/baselines/ui/initial.png b/tests/baselines/ui/initial.png
index 70a6c5d..2ba955b 100644
Binary files a/tests/baselines/ui/initial.png and b/tests/baselines/ui/initial.png differ
diff --git a/tests/baselines/ui/laptop-viewport.png b/tests/baselines/ui/laptop-viewport.png
index 41e4c43..ae2aea7 100644
Binary files a/tests/baselines/ui/laptop-viewport.png and b/tests/baselines/ui/laptop-viewport.png differ
diff --git a/tests/baselines/ui/post-migration-apply.png b/tests/baselines/ui/post-migration-apply.png
index a0ce2e0..97b09b7 100644
Binary files a/tests/baselines/ui/post-migration-apply.png and b/tests/baselines/ui/post-migration-apply.png differ
diff --git a/tests/baselines/ui/selected-u2.png b/tests/baselines/ui/selected-u2.png
index c214e1f..bf961cf 100644
Binary files a/tests/baselines/ui/selected-u2.png and b/tests/baselines/ui/selected-u2.png differ
diff --git a/tests/render-regression.test.js b/tests/render-regression.test.js
index f4e0127..6fc053c 100644
--- a/tests/render-regression.test.js
+++ b/tests/render-regression.test.js
@@ -15,5 +15,5 @@ test("render output for reference fixture remains deterministic", () => {
   assert.equal(outA.ok, true);
   assert.equal(outB.ok, true);
   assert.equal(outA.svg, outB.svg);
-  assert.equal(svgHash(outA.svg), "8cdeb27f324decbd375fc9b127c7361f204c4e167551076178d6ad52dee66f94");
+  assert.equal(svgHash(outA.svg), "8dc4f0722829a68136cb237373a8d3e26669c693ec7f4287c92d22772488b99f");
 });