diff --git a/crates/engine/src/export.rs b/crates/engine/src/export.rs
index 261064ccf..895664064 100644
--- a/crates/engine/src/export.rs
+++ b/crates/engine/src/export.rs
@@ -515,11 +515,16 @@ fn logo_coverage(width: usize, height: usize, wm: &Watermark, mut blend_px: impl
         return;
     }
     let turns = wm.quarter_turns();
-    // Fit the turned box with one scale: clamping height alone distorts tall graphics.
-    let (max_w, max_h) = if turns % 2 == 1 { (height, width) } else { (width, height) };
-    let scale = (wm.image_width.clamp(0.01, 1.0) as f64 * width as f64 / logo.width as f64)
-        .min(max_w as f64 / logo.width as f64)
-        .min(max_h as f64 / logo.height as f64);
+    // Reserve the inset on anchored axes before fitting the turned box. Centered axes
+    // ignore insets, just as placement below does. One scale preserves the graphic's shape.
+    let short = width.min(height) as f32;
+    let (ix, iy) = (wm.inset_x.clamp(0.0, 0.4) * short, wm.inset_y.clamp(0.0, 0.4) * short);
+    use Anchor::*;
+    let available_w = width as f64 - if matches!(wm.anchor, Top | Center | Bottom) { 0.0 } else { ix as f64 };
+    let available_h = height as f64 - if matches!(wm.anchor, Left | Center | Right) { 0.0 } else { iy as f64 };
+    let (max_w, max_h) = if turns % 2 == 1 { (available_h, available_w) } else { (available_w, available_h) };
+    let scale =
+        (wm.image_width.clamp(0.01, 1.0) as f64 * width as f64 / logo.width as f64).min(max_w / logo.width as f64).min(max_h / logo.height as f64);
     let lw = (logo.width as f64 * scale).round().max(1.0) as usize;
     let lh = (logo.height as f64 * scale).round().max(1.0) as usize;
     let pre: lightcraft_raster::Image<[f32; 4]> = lightcraft_raster::Image::from_fn(logo.width, logo.height, |x, y| {
@@ -528,11 +533,8 @@ fn logo_coverage(width: usize, height: usize, wm: &Watermark, mut blend_px: impl
         [p[0] as f32 * a, p[1] as f32 * a, p[2] as f32 * a, a]
     });
     let scaled = lightcraft_raster::resample::resize(&pre, lw, lh, lightcraft_raster::resample::Filter::Mitchell);
-    let short = width.min(height) as f32;
-    let (ix, iy) = (wm.inset_x.clamp(0.0, 0.4) * short, wm.inset_y.clamp(0.0, 0.4) * short);
     let (bw, bh) = if turns % 2 == 1 { (lh, lw) } else { (lw, lh) };
     let (w, h, lwf, lhf) = (width as f32, height as f32, bw as f32, bh as f32);
-    use Anchor::*;
     let ox = match wm.anchor {
         TopLeft | Left | BottomLeft => ix,
         Top | Center | Bottom => (w - lwf) / 2.0,
@@ -2441,6 +2443,49 @@ mod tests {
         std::fs::remove_dir_all(dir).unwrap();
     }
 
+    #[test]
+    fn graphic_watermark_fit_preserves_anchor_insets() {
+        let dir = std::env::temp_dir().join(format!("lc-wm-insets-{}", std::process::id()));
+        std::fs::create_dir_all(&dir).unwrap();
+        let path = dir.join("tall.png");
+        let logo = Rgba8::from_fn(40, 160, |_, _| [255, 0, 0, 255]);
+        std::fs::write(&path, lightcraft_codecs::encode_png(&EncodeImage::rgba8(&logo), &EncodeMeta::default()).unwrap()).unwrap();
+        use Anchor::*;
+        for (anchor, rotation, expected) in [
+            (BottomRight, 90, (0, 44, 111, 71)),
+            (TopLeft, 270, (8, 8, 119, 35)),
+            (Right, 90, (0, 26, 111, 53)),
+            (BottomRight, 0, (94, 0, 111, 71)),
+            (TopLeft, 180, (8, 8, 25, 79)),
+            (Bottom, 0, (51, 0, 68, 71)),
+            // Centered axes ignore their inset rather than shrinking the image unnecessarily.
+            (Center, 90, (0, 25, 119, 54)),
+            (Top, 90, (0, 8, 119, 37)),
+        ] {
+            let wm = Watermark {
+                image: path.to_string_lossy().into(),
+                image_width: 0.5,
+                opacity: 1.0,
+                inset_x: 0.1,
+                inset_y: 0.1,
+                rotation,
+                anchor,
+                ..Default::default()
+            };
+            let mut img = Rgba8::from_fn(120, 80, |_, _| [0, 0, 0, 255]);
+            draw_watermark(&mut img, &wm);
+            let lit: Vec<_> = img.data.iter().enumerate().filter(|(_, p)| p[0] > 200).map(|(i, _)| (i % 120, i / 120)).collect();
+            let bounds = (
+                lit.iter().map(|p| p.0).min().unwrap(),
+                lit.iter().map(|p| p.1).min().unwrap(),
+                lit.iter().map(|p| p.0).max().unwrap(),
+                lit.iter().map(|p| p.1).max().unwrap(),
+            );
+            assert_eq!(bounds, expected, "{anchor:?}, {rotation} degrees");
+        }
+        std::fs::remove_dir_all(dir).unwrap();
+    }
+
     #[test]
     fn sharpen_increases_edge_contrast() {
         let mut img = Rgba8::new(8, 8);
diff --git a/crates/ui-egui/locales/pt-br.json b/crates/ui-egui/locales/pt-br.json
index 85a0ae039..2c9e9da05 100644
--- a/crates/ui-egui/locales/pt-br.json
+++ b/crates/ui-egui/locales/pt-br.json
@@ -2180,5 +2180,11 @@
   "Checking the GPU…": "Verificando a GPU…",
   "CPU": "CPU",
   "A face model uses the GPU only when a check shows it gives the same results faster.": "Um modelo de rostos só usa a GPU quando uma verificação mostra que ela dá os mesmos resultados mais rápido.",
-  "Checking the GPU for faces": "Verificando a GPU para rostos"
+  "Checking the GPU for faces": "Verificando a GPU para rostos",
+  "Include selected photos": "Incluir fotos selecionadas",
+  "Color Overlay": "Sobreposição de cor",
+  "Color Overlay on B&W": "Sobreposição de cor em P&B",
+  "Image on Black": "Imagem sobre preto",
+  "Image on White": "Imagem sobre branco",
+  "White on Black": "Branco sobre preto"
 }
diff --git a/docs/parity-checklist.md b/docs/parity-checklist.md
index c09583828..1a8a69590 100644
--- a/docs/parity-checklist.md
+++ b/docs/parity-checklist.md
@@ -1,6 +1,6 @@
 # Lightroom parity checklist
 
-> **Last reviewed:** 2026-10-10 · **Last updated:** 2026-10-18 · **Change:** maintenance (refresh export watermark and HDR size-limit fixes onto current main, retaining Print Page Options and opaque RGB export) · **Target:** Adobe Lightroom Classic 15.5 / Lightroom 9.6
+> **Last reviewed:** 2026-10-10 · **Last updated:** 2026-10-20 · **Change:** minor (graphic watermark fitting retains anchored insets) · **Target:** Adobe Lightroom Classic 15.5 / Lightroom 9.6
 
 The measured, row-by-row checklist: one row per Lightroom feature, menu item and shortcut, what we
 have and what is missing. It answers *does the feature exist?* (feature breadth). Whether it is good
@@ -895,3 +895,7 @@ Latin stays upright. Advanced Japanese composition remains open. Regression cove
 ### 2026-10-18 — export regression integration (maintenance)
 
 Graphic watermarks honour EXIF rotation/mirroring through the shared `read_graphic` path and keep their aspect ratio when fitted to the output. HDR JPEG `limitKb` includes the gain map and metadata. Refreshed onto main fb7ac08b, retaining upstream export bounds, colour metadata, JPEG encoding and opaque RGB/real-alpha handling (#1691); no feature-count or readiness estimate changes.
+
+### 2026-10-20 — graphic watermark inset regression
+
+Oversized graphics fit the space remaining after the applicable anchor insets, with one aspect-preserving scale before quarter-turn rotation. Centered axes continue to ignore insets. Pixel-bound regressions cover edge/corner anchors, centered placement and all four rotations. Main d999e382 is integrated; HDR size-limit and EXIF-orientation fixes are unchanged.