diff --git a/apps/server/src/project/Layers/ProjectFaviconResolver.test.ts b/apps/server/src/project/Layers/ProjectFaviconResolver.test.ts
index 29b30739b9cd..21b93e321a9d 100644
--- a/apps/server/src/project/Layers/ProjectFaviconResolver.test.ts
+++ b/apps/server/src/project/Layers/ProjectFaviconResolver.test.ts
@@ -60,6 +60,24 @@ it.layer(TestLayer)("ProjectFaviconResolverLive", (it) => {
       }),
     );
 
+    it.effect("resolves SvelteKit app icons from src/app.html into static assets", () =>
+      Effect.gen(function* () {
+        const resolver = yield* ProjectFaviconResolver;
+        const cwd = yield* makeTempDir;
+        yield* writeTextFile(
+          cwd,
+          "src/app.html",
+          '<link rel="icon" href="%sveltekit.assets%/brand/logo.svg">',
+        );
+        yield* writeTextFile(cwd, "static/brand/logo.svg", "<svg>brand</svg>");
+
+        const resolved = yield* resolver.resolvePath(cwd);
+
+        expect(resolved).not.toBeNull();
+        expect(resolved).toContain("static/brand/logo.svg");
+      }),
+    );
+
     it.effect("returns null when no icon is present", () =>
       Effect.gen(function* () {
         const resolver = yield* ProjectFaviconResolver;
diff --git a/apps/server/src/project/Layers/ProjectFaviconResolver.ts b/apps/server/src/project/Layers/ProjectFaviconResolver.ts
index 3004a7a45cfd..299566673775 100644
--- a/apps/server/src/project/Layers/ProjectFaviconResolver.ts
+++ b/apps/server/src/project/Layers/ProjectFaviconResolver.ts
@@ -27,6 +27,13 @@ const FAVICON_CANDIDATES = [
   "assets/icon.png",
   "assets/logo.svg",
   "assets/logo.png",
+  "static/favicon.svg",
+  "static/favicon.ico",
+  "static/favicon.png",
+  "static/icon.svg",
+  "static/icon.png",
+  "static/logo.svg",
+  "static/logo.png",
 ] as const;
 
 // Files that may contain a <link rel="icon"> or icon metadata declaration.
@@ -38,6 +45,8 @@ const ICON_SOURCE_FILES = [
   "app/root.tsx",
   "src/root.tsx",
   "src/index.html",
+  "src/app.html",
+  "app.html",
 ] as const;
 
 // Matches <link ...> tags or object-like icon metadata where rel/href can appear in any order.
@@ -58,9 +67,24 @@ export const makeProjectFaviconResolver = Effect.gen(function* () {
   const fileSystem = yield* FileSystem.FileSystem;
   const path = yield* Path.Path;
 
-  const resolveIconHref = (projectCwd: string, href: string): string[] => {
-    const clean = href.replace(/^\//, "");
-    return [path.join(projectCwd, "public", clean), path.join(projectCwd, clean)];
+  const resolveIconHref = (projectCwd: string, sourcePath: string, href: string): string[] => {
+    if (/^(?:[a-z]+:)?\/\//i.test(href) || href.startsWith("data:")) {
+      return [];
+    }
+
+    const normalizedHref = href.replace(/^%sveltekit\.assets%/, "");
+    const clean = normalizedHref.replace(/^\/+/, "").replace(/^\.\//, "");
+    const projectCandidates = [
+      path.join(projectCwd, "public", clean),
+      path.join(projectCwd, "static", clean),
+      path.join(projectCwd, clean),
+    ];
+
+    if (href.startsWith("/") || href.startsWith("%sveltekit.assets%")) {
+      return projectCandidates;
+    }
+
+    return [path.join(path.dirname(sourcePath), clean), ...projectCandidates];
   };
 
   const isPathWithinProject = (projectCwd: string, candidatePath: string): boolean => {
@@ -109,7 +133,7 @@ export const makeProjectFaviconResolver = Effect.gen(function* () {
       if (!href) {
         continue;
       }
-      const existing = yield* findExistingFile(cwd, resolveIconHref(cwd, href));
+      const existing = yield* findExistingFile(cwd, resolveIconHref(cwd, sourcePath, href));
       if (existing) {
         return existing;
       }
diff --git a/apps/server/src/projectFaviconRoute.test.ts b/apps/server/src/projectFaviconRoute.test.ts
index 99b61aedc923..27d8240449d4 100644
--- a/apps/server/src/projectFaviconRoute.test.ts
+++ b/apps/server/src/projectFaviconRoute.test.ts
@@ -175,6 +175,27 @@ describe("tryHandleProjectFaviconRequest", () => {
     });
   });
 
+  it("resolves SvelteKit src/app.html icon hrefs from static assets", async () => {
+    const projectDir = makeTempDir("t3code-favicon-route-sveltekit-static-");
+    const iconPath = path.join(projectDir, "static", "brand", "app.svg");
+    fs.mkdirSync(path.dirname(iconPath), { recursive: true });
+    fs.mkdirSync(path.join(projectDir, "src"), { recursive: true });
+    fs.writeFileSync(
+      path.join(projectDir, "src", "app.html"),
+      '<link rel="icon" href="%sveltekit.assets%/brand/app.svg">',
+      "utf8",
+    );
+    fs.writeFileSync(iconPath, "<svg>sveltekit-static</svg>", "utf8");
+
+    await withRouteServer(async (baseUrl) => {
+      const pathname = `/api/project-favicon?cwd=${encodeURIComponent(projectDir)}`;
+      const response = await request(baseUrl, pathname);
+      expect(response.statusCode).toBe(200);
+      expect(response.contentType).toContain("image/svg+xml");
+      expect(response.body).toBe("<svg>sveltekit-static</svg>");
+    });
+  });
+
   it("serves a fallback favicon when no icon exists", async () => {
     const projectDir = makeTempDir("t3code-favicon-route-fallback-");