diff --git a/README.md b/README.md
index 56e4097..d9c3360 100644
--- a/README.md
+++ b/README.md
@@ -33,6 +33,7 @@ A modern Blender addon that generates image textures from text with extensive cu
   - Per-overlay scaling, rotation, and z-index control
   - Image spacing and sequencing for complex layouts
   - Enable/disable individual overlays
+  - SVG overlays automatically rasterized to preserve sharpness across texture sizes
 
 - **Color & Transparency**:
 
@@ -161,6 +162,9 @@ A modern Blender addon that generates image textures from text with extensive cu
 - **Transform Controls**: Scale (0.1-5.0x), rotation (360°), z-index layering
 - **Spacing Controls**: Configurable spacing between images and text
 - **Sequence Control**: Order overlays in prepend/append modes
+- **SVG Support**: Vector overlays (.svg) are rasterized on demand and cached for reuse
+
+Cached raster images are stored under Blender's user config directory in `text_texture_generator/overlay_cache`.
 
 ### Normal Maps
 
@@ -225,6 +229,10 @@ The addon automatically installs required dependencies:
 
 - **Pillow** (>=10.0.0): For image generation and text rendering
 
+Optional dependency for vector overlays:
+
+- **CairoSVG** (>=2.7.0): Required to rasterize SVG overlays. Install it inside Blender's Python environment with `pip install cairosvg`.
+
 ## Troubleshooting
 
 ### Common Issues
diff --git a/dist/text_texture_generator_v1.0.0.zip b/dist/text_texture_generator_v1.0.0.zip
index c84f6eb..719868f 100644
Binary files a/dist/text_texture_generator_v1.0.0.zip and b/dist/text_texture_generator_v1.0.0.zip differ
diff --git a/dist/text_texture_generator_v1.0.0_free.zip b/dist/text_texture_generator_v1.0.0_free.zip
index 9dad90b..1d5e0ea 100644
Binary files a/dist/text_texture_generator_v1.0.0_free.zip and b/dist/text_texture_generator_v1.0.0_free.zip differ
diff --git a/marketing/demo.blend b/marketing/demo.blend
index 242bf8f..82551c8 100644
Binary files a/marketing/demo.blend and b/marketing/demo.blend differ
diff --git a/marketing/demo.blend1 b/marketing/demo.blend1
index 5aa7082..242bf8f 100644
Binary files a/marketing/demo.blend1 and b/marketing/demo.blend1 differ
diff --git a/src/__pycache__/__init__.cpython-311.pyc b/src/__pycache__/__init__.cpython-311.pyc
index 6cfc2a6..38042fb 100644
Binary files a/src/__pycache__/__init__.cpython-311.pyc and b/src/__pycache__/__init__.cpython-311.pyc differ
diff --git a/src/core/__pycache__/generation_engine.cpython-311.pyc b/src/core/__pycache__/generation_engine.cpython-311.pyc
index 8ff9ced..c0340fe 100644
Binary files a/src/core/__pycache__/generation_engine.cpython-311.pyc and b/src/core/__pycache__/generation_engine.cpython-311.pyc differ
diff --git a/src/core/generation_engine.py b/src/core/generation_engine.py
index 4a1bf4e..01bf031 100644
--- a/src/core/generation_engine.py
+++ b/src/core/generation_engine.py
@@ -3,8 +3,15 @@ Text Texture Generation Engine
 Core functionality for generating texture images with text overlays.
 """
 
+import math
+
 import bpy
 from ..utils.constants import has_text_fitting
+from ..utils.overlay_assets import (
+    SVGConversionError,
+    ensure_svg_raster,
+    is_svg_path,
+)
 from ..utils.system import find_default_truetype_font
 
 def generate_texture_image(props, width, height):
@@ -96,20 +103,38 @@ def generate_texture_image(props, width, height):
                 )
 
                 for overlay, image_path in overlays_to_apply:
+                    resolved_path = image_path
+                    scale = getattr(overlay, 'scale', 1.0)
                     try:
-                        with Image.open(image_path) as raw_overlay:
-                            overlay_img = raw_overlay.convert('RGBA')
-                    except Exception as overlay_error:
-                        print(f"WARNING: Failed to load overlay image '{image_path}': {overlay_error}")
+                        scale = float(scale if scale is not None else 1.0)
+                    except (TypeError, ValueError):
+                        scale = 1.0
+
+                    if not math.isfinite(scale) or scale <= 0:
                         continue
 
-                    scale = float(getattr(overlay, 'scale', 1.0) or 1.0)
-                    if scale <= 0:
+                    scale_to_apply = scale
+
+                    if is_svg_path(resolved_path):
+                        try:
+                            raster_info = ensure_svg_raster(resolved_path, scale)
+                            resolved_path = raster_info.path
+                            scale_to_apply = raster_info.applied_scale
+                        except SVGConversionError as svg_error:
+                            print(f"WARNING: Failed to rasterize SVG overlay '{image_path}': {svg_error}")
+                            continue
+
+                    try:
+                        with Image.open(resolved_path) as raw_overlay:
+                            overlay_img = raw_overlay.convert('RGBA')
+                    except Exception as overlay_error:
+                        print(f"WARNING: Failed to load overlay image '{resolved_path}': {overlay_error}")
                         continue
-                    if scale != 1.0:
+
+                    if scale_to_apply != 1.0:
                         new_size = (
-                            max(1, int(round(overlay_img.width * scale))),
-                            max(1, int(round(overlay_img.height * scale)))
+                            max(1, int(round(overlay_img.width * scale_to_apply))),
+                            max(1, int(round(overlay_img.height * scale_to_apply)))
                         )
                         if new_size != overlay_img.size:
                             overlay_img = overlay_img.resize(new_size, lanczos_filter)
diff --git a/src/properties/__pycache__/property_groups.cpython-311.pyc b/src/properties/__pycache__/property_groups.cpython-311.pyc
index fcbddcd..77630c1 100644
Binary files a/src/properties/__pycache__/property_groups.cpython-311.pyc and b/src/properties/__pycache__/property_groups.cpython-311.pyc differ
diff --git a/src/properties/property_groups.py b/src/properties/property_groups.py
index f95335f..7f78e81 100644
--- a/src/properties/property_groups.py
+++ b/src/properties/property_groups.py
@@ -183,9 +183,9 @@ class TEXT_TEXTURE_Properties(PropertyGroup):
     )
     
     # Collapsible section expand/collapse states
-    expand_image_overlays: BoolProperty(
-        name="Image Overlays",
-        description="Show/hide Image Overlays section",
+    expand_composition: BoolProperty(
+        name="Composition",
+        description="Show/hide Composition section",
         default=False
     )
     
@@ -281,6 +281,16 @@ class TEXT_TEXTURE_Properties(PropertyGroup):
         update=update_live_preview
     )
     
+    composition_active_tab: EnumProperty(
+        name="Composition Mode",
+        description="Select which composition controls to display",
+        items=[
+            ('TEXT', "Text", "Configure text layering options"),
+            ('IMAGE', "Image", "Configure image overlay options"),
+        ],
+        default='TEXT'
+    )
+    
     texture_width: IntProperty(
         name="Width",
         description="Texture width in pixels",
diff --git a/src/ui/__pycache__/panels.cpython-311.pyc b/src/ui/__pycache__/panels.cpython-311.pyc
index d2534c7..2907a24 100644
Binary files a/src/ui/__pycache__/panels.cpython-311.pyc and b/src/ui/__pycache__/panels.cpython-311.pyc differ
diff --git a/src/ui/panels.py b/src/ui/panels.py
index 46a2dc2..2e10f9e 100644
--- a/src/ui/panels.py
+++ b/src/ui/panels.py
@@ -199,8 +199,21 @@ def draw_version_info_section(layout, props):
 
 def draw_text_input_section(layout, props):
     pass
-    """Draw the main text input field"""
-    layout.prop(props, "text", text="")
+    """Draw the main text input field with dimensions."""
+    content = layout.column(align=True)
+    content.use_property_split = False
+    content.use_property_decorate = False
+    
+    row = content.row(align=True)
+    text_col = row.column(align=True)
+    text_col.prop(props, "text", text="")
+    
+    dimensions_col = row.column(align=True)
+    dimensions_col.use_property_split = False
+    dimensions_col.use_property_decorate = False
+    dim_row = dimensions_col.row(align=True)
+    dim_row.prop(props, "texture_width", text="")
+    dim_row.prop(props, "texture_height", text="")
     
 def draw_font_dropdown_section(layout, props):
     pass
@@ -216,17 +229,22 @@ def draw_generate_button(layout):
     row.scale_y = 1.5
     row.operator("text_texture.generate", text="Generate Text Texture", icon='IMAGE_DATA')
 
-def draw_image_overlays_section(layout, props):
+def draw_composition_image_section(layout, props):
     pass
-    """Draw image overlays controls with collapsible individual overlays"""
+    """Draw image overlay controls for the composition panel."""
+    section = layout.box()
+    section.use_property_split = False
+    section.use_property_decorate = False
+    section.label(text="Image Elements", icon='IMAGE_DATA')
+    
     # Check if image overlays are available
     if not has_image_overlays():
         pass
-        draw_feature_lock_indicator(layout, 'image_overlays')
+        draw_feature_lock_indicator(section, 'image_overlays')
         return
     
     # Add overlay button - use safe operator call
-    row = layout.row()
+    row = section.row()
     safe_operator_call(row, "text_texture.add_overlay",
                       lambda layout: draw_feature_lock_indicator(layout, 'image_overlays'),
                       text="Add Image Overlay", icon='ADD')
@@ -234,12 +252,12 @@ def draw_image_overlays_section(layout, props):
     # Individual overlay controls
     if props.image_overlays:
         pass
-        layout.separator()
+        section.separator()
         
         for i, overlay in enumerate(props.image_overlays):
             pass
             # Create collapsible box for each overlay
-            box = layout.box()
+            box = section.box()
             
             # Header row with controls
             header_row = box.row(align=True)
@@ -315,92 +333,146 @@ def draw_image_overlays_section(layout, props):
             trans_row.prop(overlay, "rotation", text="Rotation")
             trans_row.prop(overlay, "z_index", text="Z-Level")
 
+def draw_text_composition_section(layout, props):
+    pass
+    """Draw additional text controls consolidated in the composition panel."""
+    section = layout.box()
+    section.use_property_split = False
+    section.use_property_decorate = False
+    section.label(text="Text Elements", icon='OUTLINER_OB_FONT')
+    
+    layout_row = section.row(align=True)
+    layout_row.prop(props, "prepend_append_layout", text="Layout")
+    
+    section.separator(factor=0.6)
+    
+    def draw_text_block(label_text, icon, text_prop, margin_prop):
+        block = section.box()
+        block.use_property_split = False
+        block.use_property_decorate = False
+        header = block.row(align=True)
+        header.label(text=label_text, icon=icon)
+        
+        text_row = block.row(align=True)
+        text_row.prop(props, text_prop, text="")
+        
+        spacing_row = block.row(align=True)
+        spacing_row.enabled = bool(getattr(props, text_prop).strip())
+        spacing_row.prop(props, margin_prop, text="Spacing", slider=True)
+    
+    draw_text_block("Prepend Text", 'TRIA_RIGHT', "prepend_text", "prepend_margin")
+    section.separator(factor=0.4)
+    draw_text_block("Append Text", 'TRIA_LEFT', "append_text", "append_margin")
+
+def draw_composition_section(layout, props):
+    pass
+    """Draw combined composition controls for text and images."""
+    content = layout.column(align=True)
+    content.use_property_split = False
+    content.use_property_decorate = False
+    
+    tabs_row = content.row(align=True)
+    tabs_row.prop(props, "composition_active_tab", expand=True)
+    
+    content.separator(factor=0.6)
+    
+    if props.composition_active_tab == 'IMAGE':
+        pass
+        if not has_image_overlays():
+            pass
+            draw_feature_lock_indicator(content, 'image_overlays')
+            return
+        draw_composition_image_section(content, props)
+    else:
+        pass
+        draw_text_composition_section(content, props)
+
 def draw_positioning_section(layout, props):
     pass
-    """Draw positioning and alignment controls"""
+    """Draw positioning and alignment controls with streamlined spacing."""
     from ..utils.system import get_anchor_point_matrix
     
-    # Dimensions moved here from top level
-    layout.label(text="Dimensions:", icon='SETTINGS')
-    row = layout.row(align=True)
-    row.prop(props, "texture_width", text="Width")
-    row.prop(props, "texture_height", text="Height")
+    content = layout.column(align=True)
+    content.use_property_split = True
+    content.use_property_decorate = False
     
-    layout.separator()
-    
-    # Prepend/Append Text Section
-    layout.label(text="Additional Text:", icon='TEXT')
-    
-    # Compact layout selector
-    layout.prop(props, "prepend_append_layout", text="Layout")
-    
-    # Minimal prepend/append controls
-    row = layout.row(align=True)
-    row.prop(props, "prepend_text", text="Prepend")
-    if props.prepend_text.strip():
-        pass
-        row.prop(props, "prepend_margin", text="", slider=True)
-    
-    row = layout.row(align=True)
-    row.prop(props, "append_text", text="Append")
-    if props.append_text.strip():
-        pass
-        row.prop(props, "append_margin", text="", slider=True)
-    
-    layout.separator()
-    layout.prop(props, "position_mode", text="Mode")
+    content.label(text="Placement Mode", icon='ANCHOR_CENTER')
+    content.prop(props, "position_mode", text="")
+    content.separator(factor=0.6)
     
     if props.position_mode == 'PRESET':
         pass
-        layout.separator()
-        layout.label(text="Anchor Point:", icon='ANCHOR_TOP')
+        # Anchor selection grid
+        anchor_box = content.box()
+        anchor_box.use_property_split = False
+        anchor_box.use_property_decorate = False
+        anchor_box.label(text="Anchor Point", icon='ANCHOR_TOP')
         
         anchor_matrix = get_anchor_point_matrix()
-        for row_idx, row in enumerate(anchor_matrix):
+        for row in anchor_matrix:
             pass
-            grid_row = layout.row(align=True)
-            grid_row.scale_y = 1.2
-            for col_idx, anchor in enumerate(row):
+            grid_row = anchor_box.row(align=True)
+            grid_row.scale_y = 1.15
+            for anchor in row:
                 pass
-                if anchor == props.anchor_point:
-                    premium_lock = create_premium_lock_function()
-                    op = safe_operator_call(grid_row, "text_texture.set_anchor_point", premium_lock,
-                                          text="●", depress=True)
-                else:
-                    premium_lock = create_premium_lock_function()
-                    op = safe_operator_call(grid_row, "text_texture.set_anchor_point", premium_lock,
-                                          text="○")
+                premium_lock = create_premium_lock_function()
+                is_active = anchor == props.anchor_point
+                op = safe_operator_call(
+                    grid_row,
+                    "text_texture.set_anchor_point",
+                    premium_lock,
+                    text="●" if is_active else "○",
+                    depress=is_active
+                )
                 if op:
                     op.anchor_point = anchor
         
-        # Margins
-        layout.separator()
-        margin_row = layout.row(align=True)
-        margin_row.label(text="Margins:")
-        margin_row.prop(props, "margins_linked", text="", icon='LINKED' if props.margins_linked else 'UNLINKED', toggle=True)
+        anchor_box.separator(factor=0.6)
         
-        margins_row = layout.row(align=True)
+        # Margin controls
+        margin_box = content.box()
+        margin_box.use_property_split = True
+        margin_box.use_property_decorate = False
+        header_row = margin_box.row(align=True)
+        header_row.label(text="Margins", icon='ARROW_LEFTRIGHT')
+        header_row.prop(
+            props,
+            "margins_linked",
+            text="",
+            icon='LINKED' if props.margins_linked else 'UNLINKED',
+            toggle=True
+        )
+        
+        margins_row = margin_box.row(align=True)
         margins_row.prop(props, "margin_x", text="X")
-        if not props.margins_linked:
-            pass
-            margins_row.prop(props, "margin_y", text="Y")
+        y_col = margins_row.row(align=True)
+        y_col.enabled = not props.margins_linked
+        y_col.prop(props, "margin_y", text="Y")
         
-        # Offsets
-        layout.separator()
-        layout.label(text="Fine-tune (pixels):")
-        offset_row = layout.row(align=True)
+        margin_box.separator(factor=0.6)
+        
+        # Pixel offsets
+        offset_box = content.box()
+        offset_box.use_property_split = True
+        offset_box.use_property_decorate = False
+        offset_box.label(text="Fine-tune (pixels)", icon='DRIVER_DISTANCE')
+        offset_row = offset_box.row(align=True)
         offset_row.prop(props, "offset_x", text="X")
         offset_row.prop(props, "offset_y", text="Y")
         
-    else:  # MANUAL mode
-        layout.separator()
-        layout.prop(props, "manual_position_unit", text="Unit")
-        manual_row = layout.row(align=True)
+    else:
+        pass
+        manual_box = content.box()
+        manual_box.use_property_split = True
+        manual_box.use_property_decorate = False
+        manual_box.label(text="Manual Placement", icon='DRIVER_TRANSFORM')
+        manual_box.prop(props, "manual_position_unit", text="Unit")
+        manual_row = manual_box.row(align=True)
         manual_row.prop(props, "manual_position_x", text="X")
         manual_row.prop(props, "manual_position_y", text="Y")
     
-    layout.separator()
-    layout.prop(props, "constrain_to_canvas")
+    content.separator(factor=0.6)
+    content.prop(props, "constrain_to_canvas")
 
 def draw_font_settings_section(layout, props):
     pass
@@ -537,7 +609,7 @@ def draw_presets_section(layout, props):
         persistent_count = total_presets - blend_count
         
         summary_row = col.row(align=True)
-        summary_row.label(text=f"{total_presets} presets", icon='PRESET_HLT')
+        summary_row.label(text=f"{total_presets} presets", icon='PRESET')
         summary_row.label(text=f"{blend_count} project", icon='FILE_BLEND')
         summary_row.label(text=f"{persistent_count} global", icon='FILE_CACHE')
         
@@ -957,25 +1029,10 @@ class TEXT_TEXTURE_PT_panel(Panel):
         if shader_expanded:
             draw_shader_options_only(shader_expanded, props)
         
-        # Image Overlays Section (collapsed by default) - Show with premium indicator
-        overlay_header_row = layout.row(align=True)
-        
-        # Gray out header if locked and prevent expansion
-        from ..utils.constants import has_image_overlays
-        if not has_image_overlays():
-            overlay_header_row.enabled = False
-            # Don't allow expansion for locked features
-            overlay_expanded = None
-            # Show lock indicator instead of expandable header
-            lock_header = overlay_header_row.row()
-            lock_header.label(text="Image Overlays", icon='IMAGE_DATA')
-            lock_header.label(text="🔒 PRO", icon='LOCKED')
-        else:
-            overlay_expanded = draw_collapsible_header(overlay_header_row, "expand_image_overlays", "Image Overlays", 'IMAGE_DATA')
-        
-        # Only show content if available and expanded
-        if overlay_expanded:
-            draw_image_overlays_section(overlay_expanded, props)
+        # Composition Section (collapsed by default)
+        composition_section = draw_collapsible_header(layout, "expand_composition", "Composition", 'SEQ_PREVIEW')
+        if composition_section:
+            draw_composition_section(composition_section, props)
         
         
         # Stroke Section (collapsed by default) - Show with premium indicator
@@ -1169,25 +1226,10 @@ class TEXT_TEXTURE_PT_panel_3d(Panel):
         if shader_expanded:
             draw_shader_options_only(shader_expanded, props)
         
-        # Image Overlays Section (collapsed by default) - Show with premium indicator
-        overlay_header_row = layout.row(align=True)
-        
-        # Gray out header if locked and prevent expansion
-        from ..utils.constants import has_image_overlays
-        if not has_image_overlays():
-            overlay_header_row.enabled = False
-            # Don't allow expansion for locked features
-            overlay_expanded = None
-            # Show lock indicator instead of expandable header
-            lock_header = overlay_header_row.row()
-            lock_header.label(text="Image Overlays", icon='IMAGE_DATA')
-            lock_header.label(text="🔒 PRO", icon='LOCKED')
-        else:
-            overlay_expanded = draw_collapsible_header(overlay_header_row, "expand_image_overlays", "Image Overlays", 'IMAGE_DATA')
-        
-        # Only show content if available and expanded
-        if overlay_expanded:
-            draw_image_overlays_section(overlay_expanded, props)
+        # Composition Section (collapsed by default)
+        composition_section = draw_collapsible_header(layout, "expand_composition", "Composition", 'SEQ_PREVIEW')
+        if composition_section:
+            draw_composition_section(composition_section, props)
         
         
         # Stroke Section (collapsed by default) - Show with premium indicator
@@ -1361,25 +1403,10 @@ class TEXT_TEXTURE_PT_panel_properties(Panel):
         
         # === PREMIUM FEATURES ===
         
-        # Image Overlays Section (collapsed by default) - Show with premium indicator
-        overlay_header_row = layout.row(align=True)
-        
-        # Gray out header if locked and prevent expansion
-        from ..utils.constants import has_image_overlays
-        if not has_image_overlays():
-            overlay_header_row.enabled = False
-            # Don't allow expansion for locked features
-            overlay_expanded = None
-            # Show lock indicator instead of expandable header
-            lock_header = overlay_header_row.row()
-            lock_header.label(text="Image Overlays", icon='IMAGE_DATA')
-            lock_header.label(text="🔒 PRO", icon='LOCKED')
-        else:
-            overlay_expanded = draw_collapsible_header(overlay_header_row, "expand_image_overlays", "Image Overlays", 'IMAGE_DATA')
-        
-        # Only show content if available and expanded
-        if overlay_expanded:
-            draw_image_overlays_section(overlay_expanded, props)
+        # Composition Section (collapsed by default)
+        composition_section = draw_collapsible_header(layout, "expand_composition", "Composition", 'SEQ_PREVIEW')
+        if composition_section:
+            draw_composition_section(composition_section, props)
         
         
         # Stroke Section (collapsed by default) - Show with premium indicator
diff --git a/src/utils/__pycache__/constants.cpython-311.pyc b/src/utils/__pycache__/constants.cpython-311.pyc
index a684cf0..165163f 100644
Binary files a/src/utils/__pycache__/constants.cpython-311.pyc and b/src/utils/__pycache__/constants.cpython-311.pyc differ
diff --git a/src/utils/overlay_assets.py b/src/utils/overlay_assets.py
new file mode 100644
index 0000000..e5c4692
--- /dev/null
+++ b/src/utils/overlay_assets.py
@@ -0,0 +1,116 @@
+"""
+Utilities for managing image overlay assets, including SVG rasterization.
+"""
+
+from __future__ import annotations
+
+import hashlib
+import math
+import os
+import sys
+import tempfile
+from dataclasses import dataclass
+
+
+class SVGConversionError(RuntimeError):
+    """Raised when an SVG overlay cannot be rasterized."""
+    pass
+
+
+@dataclass(frozen=True)
+class RasterizationResult:
+    """Metadata about a rasterized overlay image."""
+
+    path: str
+    applied_scale: float
+
+
+def _get_bpy_module():
+    """Return bpy module if available, otherwise None."""
+    return sys.modules.get("bpy")
+
+
+def is_svg_path(path: str) -> bool:
+    """Return True if the provided path looks like an SVG file."""
+    if not path:
+        return False
+    return str(path).lower().endswith(".svg")
+
+
+def get_overlay_cache_dir() -> str:
+    """
+    Return a writable directory for cached overlay images.
+
+    Prefers Blender's CONFIG directory when available, otherwise falls back
+    to the system temporary directory.
+    """
+    base_dir = None
+    bpy_module = _get_bpy_module()
+
+    if bpy_module is not None:
+        bpy_utils = getattr(bpy_module, "utils", None)
+        user_resource = getattr(bpy_utils, "user_resource", None)
+        if callable(user_resource):
+            try:
+                base_dir = user_resource('CONFIG')
+            except Exception:
+                base_dir = None
+
+        if not base_dir:
+            bpy_app = getattr(bpy_module, "app", None)
+            base_dir = getattr(bpy_app, "tempdir", None)
+
+    if not base_dir:
+        base_dir = tempfile.gettempdir()
+
+    cache_dir = os.path.join(os.path.abspath(base_dir), "text_texture_generator", "overlay_cache")
+    try:
+        os.makedirs(cache_dir, exist_ok=True)
+    except OSError:
+        # Fall back to a temporary directory specific to this process.
+        fallback_dir = os.path.join(tempfile.gettempdir(), "text_texture_generator", "overlay_cache")
+        os.makedirs(fallback_dir, exist_ok=True)
+        cache_dir = fallback_dir
+
+    return cache_dir
+
+
+def ensure_svg_raster(image_path: str, scale: float) -> RasterizationResult:
+    """
+    Ensure a rasterized PNG exists for the given SVG and return its path with applied scale.
+
+    The rasterization scale is applied during conversion so the caller should not
+    reapply the same scale.
+    """
+    if not image_path or not os.path.exists(image_path):
+        raise SVGConversionError(f"SVG overlay path does not exist: {image_path}")
+
+    try:
+        import cairosvg  # type: ignore
+    except ImportError as import_error:
+        raise SVGConversionError(
+            "SVG overlay support requires the 'cairosvg' package. "
+            "Install it via pip (pip install cairosvg) inside Blender's Python environment."
+        ) from import_error
+
+    # Guard against invalid scales (NaN, infinity, zero, negative)
+    if not isinstance(scale, (int, float)) or not math.isfinite(scale):
+        raise SVGConversionError(f"Invalid overlay scale for SVG: {scale!r}")
+
+    if scale <= 0:
+        raise SVGConversionError("Overlay scale must be greater than zero for SVG rasterization.")
+
+    normalized_scale = max(float(scale), 0.01)
+    source_mtime = os.path.getmtime(image_path)
+    cache_dir = get_overlay_cache_dir()
+
+    cache_key = f"{os.path.abspath(image_path)}|{source_mtime:.6f}|{normalized_scale:.6f}"
+    cache_name = hashlib.sha256(cache_key.encode("utf-8")).hexdigest()[:32] + ".png"
+    cache_path = os.path.join(cache_dir, cache_name)
+
+    if not os.path.exists(cache_path):
+        # Perform rasterization and write to cache path
+        with open(cache_path, "wb") as cache_file:
+            cairosvg.svg2png(url=image_path, scale=normalized_scale, write_to=cache_file)  # type: ignore[arg-type]
+
+    return RasterizationResult(path=cache_path, applied_scale=1.0)
diff --git a/tests/unit/core/__pycache__/test_generation_engine.cpython-311-pytest-8.3.5.pyc b/tests/unit/core/__pycache__/test_generation_engine.cpython-311-pytest-8.3.5.pyc
index b726b6d..f12241b 100644
Binary files a/tests/unit/core/__pycache__/test_generation_engine.cpython-311-pytest-8.3.5.pyc and b/tests/unit/core/__pycache__/test_generation_engine.cpython-311-pytest-8.3.5.pyc differ
diff --git a/tests/unit/core/test_generation_engine.py b/tests/unit/core/test_generation_engine.py
index e50e021..bf7e22a 100644
--- a/tests/unit/core/test_generation_engine.py
+++ b/tests/unit/core/test_generation_engine.py
@@ -4,6 +4,7 @@ import pytest
 from unittest.mock import Mock, MagicMock, patch
 
 from src.core.generation_engine import generate_texture_image, generate_preview
+from src.utils.overlay_assets import RasterizationResult
 # Test configuration constants
 DEFAULT_WIDTH = 512
 DEFAULT_HEIGHT = 512
@@ -507,6 +508,58 @@ class TestGenerateTextureImage:
             assert center_pixel[2] == pytest.approx(0.0, abs=1e-3)
             assert center_pixel[3] == pytest.approx(1.0, rel=1e-3)
 
+    def test_svg_overlay_is_rasterized_and_applied(self, tmp_path):
+        """SVG overlays should be rasterized before being composited."""
+        Image = pytest.importorskip("PIL.Image")
+        with patch('src.core.generation_engine.bpy') as mock_bpy, \
+             patch('src.core.generation_engine.ensure_svg_raster') as mock_rasterize:
+            width = height = 64
+            svg_path = tmp_path / "overlay.svg"
+            svg_path.write_text('<svg xmlns="http://www.w3.org/2000/svg" width="10" height="10"></svg>')
+
+            raster_path = tmp_path / "overlay_raster.png"
+            overlay_source = Image.new("RGBA", (16, 16), (0, 255, 0, 255))
+            overlay_source.save(raster_path)
+
+            mock_rasterize.return_value = RasterizationResult(path=str(raster_path), applied_scale=1.0)
+
+            mock_blender_image = MagicMock()
+            mock_blender_image.pixels = [0.0] * (width * height * 4)
+            mock_bpy.data.images.new.return_value = mock_blender_image
+            mock_bpy.data.images.__contains__.return_value = False
+
+            props = create_mock_props(
+                text="",
+                background_transparent=False,
+                background_color=(1.0, 1.0, 1.0, 1.0)
+            )
+
+            overlay = MagicMock()
+            overlay.enabled = True
+            overlay.image_path = str(svg_path)
+            overlay.positioning_mode = 'ABSOLUTE'
+            overlay.x_position = 0.5
+            overlay.y_position = 0.5
+            overlay.scale = 1.0
+            overlay.rotation = 0.0
+            overlay.z_index = 0
+            overlay.text_spacing = 0.0
+            overlay.image_spacing = 0.0
+            props.image_overlays = [overlay]
+
+            result, normal_map = generate_texture_image(props, width, height)
+
+            assert result is mock_blender_image
+            assert normal_map is None
+            mock_rasterize.assert_called_once_with(str(svg_path), overlay.scale)
+
+            center_index = ((height // 2) * width + (width // 2)) * 4
+            center_pixel = mock_blender_image.pixels[center_index:center_index + 4]
+            assert center_pixel[0] == pytest.approx(0.0, abs=1e-3)
+            assert center_pixel[1] == pytest.approx(1.0, rel=1e-3)
+            assert center_pixel[2] == pytest.approx(0.0, abs=1e-3)
+            assert center_pixel[3] == pytest.approx(1.0, rel=1e-3)
+
     def test_skips_overlays_without_valid_path(self, tmp_path):
         """Overlays without a valid image path should be ignored."""
         pytest.importorskip("PIL.Image")
diff --git a/tests/unit/ui/test_panel_layout_overhaul.py b/tests/unit/ui/test_panel_layout_overhaul.py
new file mode 100644
index 0000000..51723e8
--- /dev/null
+++ b/tests/unit/ui/test_panel_layout_overhaul.py
@@ -0,0 +1,193 @@
+"""Tests for the overhauled Positioning & Layout UI."""
+
+from types import SimpleNamespace
+import importlib
+
+import pytest
+
+
+panels = importlib.import_module("src.ui.panels")
+
+
+class FakeLayout:
+    """Minimal substitute for Blender layout that records UI calls."""
+
+    def __init__(self, kind="layout"):
+        self.kind = kind
+        self.calls = []
+        self.children = []
+        self.enabled = True
+        self.alignment = None
+        self.scale_x = 1.0
+        self.scale_y = 1.0
+        self.use_property_split = False
+        self.use_property_decorate = True
+
+    def _child(self, kind, kwargs):
+        child = FakeLayout(kind)
+        self.calls.append((kind, kwargs, child))
+        self.children.append(child)
+        return child
+
+    def label(self, text="", **kwargs):
+        self.calls.append(("label", {"text": text, **kwargs}))
+        return None
+
+    def prop(self, props, prop_name, **kwargs):
+        # Access attribute to mirror Blender's behaviour of raising AttributeError
+        getattr(props, prop_name)
+        data = {"name": prop_name}
+        data.update(kwargs)
+        self.calls.append(("prop", data))
+        return None
+
+    def separator(self, **kwargs):
+        self.calls.append(("separator", kwargs))
+        return None
+
+    def row(self, **kwargs):
+        return self._child("row", kwargs)
+
+    def column(self, **kwargs):
+        return self._child("column", kwargs)
+
+    def box(self):
+        return self._child("box", {})
+
+    def operator(self, operator_id, **kwargs):
+        self.calls.append(("operator", {"id": operator_id, **kwargs}))
+        return SimpleNamespace()
+
+
+def collect_calls(layout):
+    """Flatten recorded calls from layout tree."""
+    flattened = []
+    for entry in layout.calls:
+        if len(entry) == 3:
+            kind, kwargs, child = entry
+            flattened.append((kind, kwargs))
+            flattened.extend(collect_calls(child))
+        else:
+            flattened.append(entry)
+    return flattened
+
+
+def make_default_props(**overrides):
+    """Helper to build a props namespace with defaults for positioning tests."""
+    defaults = dict(
+        text="Main",
+        texture_width=1024,
+        texture_height=1024,
+        prepend_text="",
+        append_text="",
+        prepend_margin=10.0,
+        append_margin=10.0,
+        prepend_append_layout="HORIZONTAL",
+        position_mode="PRESET",
+        anchor_point="MIDDLE_CENTER",
+        margins_linked=False,
+        margin_x=0.0,
+        margin_y=0.0,
+        offset_x=0,
+        offset_y=0,
+        manual_position_unit="PERCENTAGE",
+        manual_position_x=50.0,
+        manual_position_y=50.0,
+        constrain_to_canvas=True,
+        composition_active_tab="TEXT",
+        image_overlays=[],
+        active_overlay_index=0,
+    )
+    defaults.update(overrides)
+    return SimpleNamespace(**defaults)
+
+
+def test_text_input_section_exposes_dimensions():
+    """Dimensions should appear alongside the main text control."""
+    layout = FakeLayout()
+    props = make_default_props()
+
+    panels.draw_text_input_section(layout, props)
+
+    calls = collect_calls(layout)
+    prop_names = [data["name"] for kind, data in calls if kind == "prop"]
+    assert "texture_width" in prop_names
+    assert "texture_height" in prop_names
+
+
+def test_positioning_section_drops_additional_text(monkeypatch):
+    """Positioning panel should no longer render prepend/append controls."""
+    layout = FakeLayout()
+    props = make_default_props()
+
+    monkeypatch.setattr("src.utils.system.get_anchor_point_matrix", lambda: [["CENTER"]])
+    monkeypatch.setattr(panels, "safe_operator_call", lambda *args, **kwargs: SimpleNamespace())
+
+    panels.draw_positioning_section(layout, props)
+
+    calls = collect_calls(layout)
+    labels = [data["text"] for kind, data in calls if kind == "label"]
+    prop_names = [data["name"] for kind, data in calls if kind == "prop"]
+
+    assert "Additional Text:" not in labels
+    assert "prepend_text" not in prop_names
+    assert "append_text" not in prop_names
+
+
+def test_composition_section_shows_text_controls(monkeypatch):
+    """Composition panel should surface text controls when text tab is active."""
+    layout = FakeLayout()
+    props = make_default_props(
+        composition_active_tab="TEXT",
+        prepend_text="Intro",
+        append_text="Outro",
+    )
+
+    monkeypatch.setattr(panels, "safe_operator_call", lambda *args, **kwargs: SimpleNamespace())
+    monkeypatch.setattr(panels, "has_image_overlays", lambda: True)
+
+    panels.draw_composition_section(layout, props)
+
+    calls = collect_calls(layout)
+    prop_names = [data["name"] for kind, data in calls if kind == "prop"]
+    labels = [data["text"] for kind, data in calls if kind == "label"]
+
+    assert "composition_active_tab" in prop_names
+    assert "prepend_text" in prop_names
+    assert "append_text" in prop_names
+    assert any("Text" in text for text in labels)
+
+
+def test_composition_section_shows_overlay_controls(monkeypatch):
+    """Composition panel should surface overlay controls when image tab is active."""
+    layout = FakeLayout()
+    overlay = SimpleNamespace(
+        enabled=True,
+        name="Logo",
+        image_path="/tmp/logo.png",
+        positioning_mode="ABSOLUTE",
+        x_position=0.5,
+        y_position=0.5,
+        text_spacing=10.0,
+        image_spacing=5.0,
+        scale=1.0,
+        rotation=0.0,
+        z_index=1,
+    )
+    props = make_default_props(
+        composition_active_tab="IMAGE",
+        image_overlays=[overlay],
+    )
+
+    monkeypatch.setattr(panels, "safe_operator_call", lambda *args, **kwargs: SimpleNamespace())
+    monkeypatch.setattr(panels, "has_image_overlays", lambda: True)
+
+    panels.draw_composition_section(layout, props)
+
+    calls = collect_calls(layout)
+    prop_names = [data["name"] for kind, data in calls if kind == "prop"]
+    labels = [data["text"] for kind, data in calls if kind == "label"]
+
+    assert "composition_active_tab" in prop_names
+    assert "positioning_mode" in prop_names
+    assert any("Image" in text for text in labels)