diff --git a/lib/solvers/TraceCleanupSolver/TraceCleanupSolver.ts b/lib/solvers/TraceCleanupSolver/TraceCleanupSolver.ts
index e9bac7ca3..001534698 100644
--- a/lib/solvers/TraceCleanupSolver/TraceCleanupSolver.ts
+++ b/lib/solvers/TraceCleanupSolver/TraceCleanupSolver.ts
@@ -20,6 +20,7 @@ interface TraceCleanupSolverInput {
 
 import { UntangleTraceSubsolver } from "./sub-solver/UntangleTraceSubsolver"
 import { is4PointRectangle } from "./is4PointRectangle"
+import { combineCloseSameNetSegments } from "./combineCloseSameNetSegments"
 
 /**
  * Represents the different stages or steps within the trace cleanup pipeline.
@@ -27,6 +28,7 @@ import { is4PointRectangle } from "./is4PointRectangle"
 type PipelineStep =
   | "minimizing_turns"
   | "balancing_l_shapes"
+  | "combining_close_same_net_segments"
   | "untangling_traces"
 
 /**
@@ -84,6 +86,9 @@ export class TraceCleanupSolver extends BaseSolver {
       case "balancing_l_shapes":
         this._runBalanceLShapesStep()
         break
+      case "combining_close_same_net_segments":
+        this._runCombineCloseSameNetSegmentsStep()
+        break
     }
   }
 
@@ -108,13 +113,19 @@ export class TraceCleanupSolver extends BaseSolver {
 
   private _runBalanceLShapesStep() {
     if (this.traceIdQueue.length === 0) {
-      this.solved = true
+      this.pipelineStep = "combining_close_same_net_segments"
       return
     }
 
     this._processTrace("balancing_l_shapes")
   }
 
+  private _runCombineCloseSameNetSegmentsStep() {
+    this.outputTraces = combineCloseSameNetSegments(this.outputTraces)
+    this.tracesMap = new Map(this.outputTraces.map((t) => [t.mspPairId, t]))
+    this.solved = true
+  }
+
   private _processTrace(step: "minimizing_turns" | "balancing_l_shapes") {
     const targetMspConnectionPairId = this.traceIdQueue.shift()!
     this.activeTraceId = targetMspConnectionPairId
diff --git a/lib/solvers/TraceCleanupSolver/combineCloseSameNetSegments.ts b/lib/solvers/TraceCleanupSolver/combineCloseSameNetSegments.ts
new file mode 100644
index 000000000..25aa198b7
--- /dev/null
+++ b/lib/solvers/TraceCleanupSolver/combineCloseSameNetSegments.ts
@@ -0,0 +1,260 @@
+import type { Point } from "@tscircuit/math-utils"
+import type { SolvedTracePath } from "lib/solvers/SchematicTraceLinesSolver/SchematicTraceLinesSolver"
+import { simplifyPath } from "./simplifyPath"
+
+const EPS = 1e-9
+const DEFAULT_MAX_DISTANCE = 0.16
+
+type SegmentOrientation = "horizontal" | "vertical"
+
+type SegmentInfo = {
+  traceIndex: number
+  segmentIndex: number
+  orientation: SegmentOrientation
+  fixedCoord: number
+  min: number
+  max: number
+  canMove: boolean
+}
+
+const pointsEqual = (a: Point, b: Point) =>
+  Math.abs(a.x - b.x) < EPS && Math.abs(a.y - b.y) < EPS
+
+const dedupeConsecutivePoints = (path: Point[]): Point[] => {
+  const result: Point[] = []
+  for (const point of path) {
+    const prev = result[result.length - 1]
+    if (!prev || !pointsEqual(prev, point)) {
+      result.push(point)
+    }
+  }
+  return result
+}
+
+const getOrientation = (a: Point, b: Point): SegmentOrientation | null => {
+  if (Math.abs(a.y - b.y) < EPS) return "horizontal"
+  if (Math.abs(a.x - b.x) < EPS) return "vertical"
+  return null
+}
+
+const getSegmentsForTrace = (
+  trace: SolvedTracePath,
+  traceIndex: number,
+): SegmentInfo[] => {
+  const segments: SegmentInfo[] = []
+  for (let i = 0; i < trace.tracePath.length - 1; i++) {
+    const a = trace.tracePath[i]!
+    const b = trace.tracePath[i + 1]!
+    const orientation = getOrientation(a, b)
+    if (!orientation) continue
+
+    const isEndpointSegment = i === 0 || i === trace.tracePath.length - 2
+    segments.push({
+      traceIndex,
+      segmentIndex: i,
+      orientation,
+      fixedCoord: orientation === "horizontal" ? a.y : a.x,
+      min:
+        orientation === "horizontal" ? Math.min(a.x, b.x) : Math.min(a.y, b.y),
+      max:
+        orientation === "horizontal" ? Math.max(a.x, b.x) : Math.max(a.y, b.y),
+      canMove: !isEndpointSegment,
+    })
+  }
+  return segments
+}
+
+const getOverlapLength = (a: SegmentInfo, b: SegmentInfo) =>
+  Math.min(a.max, b.max) - Math.max(a.min, b.min)
+
+const rangesOverlap = (a1: number, a2: number, b1: number, b2: number) =>
+  Math.min(a2, b2) - Math.max(a1, b1) >= -EPS
+
+const segmentsIntersect = (
+  a1: Point,
+  a2: Point,
+  b1: Point,
+  b2: Point,
+): boolean => {
+  const aOrientation = getOrientation(a1, a2)
+  const bOrientation = getOrientation(b1, b2)
+  if (!aOrientation || !bOrientation) return false
+
+  if (aOrientation === "horizontal" && bOrientation === "horizontal") {
+    return (
+      Math.abs(a1.y - b1.y) < EPS &&
+      rangesOverlap(
+        Math.min(a1.x, a2.x),
+        Math.max(a1.x, a2.x),
+        Math.min(b1.x, b2.x),
+        Math.max(b1.x, b2.x),
+      )
+    )
+  }
+
+  if (aOrientation === "vertical" && bOrientation === "vertical") {
+    return (
+      Math.abs(a1.x - b1.x) < EPS &&
+      rangesOverlap(
+        Math.min(a1.y, a2.y),
+        Math.max(a1.y, a2.y),
+        Math.min(b1.y, b2.y),
+        Math.max(b1.y, b2.y),
+      )
+    )
+  }
+
+  const horizontal =
+    aOrientation === "horizontal"
+      ? { start: a1, end: a2 }
+      : { start: b1, end: b2 }
+  const vertical =
+    aOrientation === "vertical"
+      ? { start: a1, end: a2 }
+      : { start: b1, end: b2 }
+
+  return (
+    vertical.start.x >= Math.min(horizontal.start.x, horizontal.end.x) - EPS &&
+    vertical.start.x <= Math.max(horizontal.start.x, horizontal.end.x) + EPS &&
+    horizontal.start.y >= Math.min(vertical.start.y, vertical.end.y) - EPS &&
+    horizontal.start.y <= Math.max(vertical.start.y, vertical.end.y) + EPS
+  )
+}
+
+const pathsIntersect = (pathA: Point[], pathB: Point[]): boolean => {
+  for (let i = 0; i < pathA.length - 1; i++) {
+    for (let j = 0; j < pathB.length - 1; j++) {
+      if (
+        segmentsIntersect(pathA[i]!, pathA[i + 1]!, pathB[j]!, pathB[j + 1]!)
+      ) {
+        return true
+      }
+    }
+  }
+  return false
+}
+
+const introducesDifferentNetIntersection = ({
+  trace,
+  updatedPath,
+  allTraces,
+}: {
+  trace: SolvedTracePath
+  updatedPath: Point[]
+  allTraces: SolvedTracePath[]
+}) => {
+  for (const otherTrace of allTraces) {
+    if (otherTrace.mspPairId === trace.mspPairId) continue
+    if (otherTrace.globalConnNetId === trace.globalConnNetId) continue
+
+    const alreadyIntersected = pathsIntersect(
+      trace.tracePath,
+      otherTrace.tracePath,
+    )
+    const nowIntersects = pathsIntersect(updatedPath, otherTrace.tracePath)
+    if (!alreadyIntersected && nowIntersects) return true
+  }
+  return false
+}
+
+const moveSegmentToCoord = (
+  trace: SolvedTracePath,
+  segment: SegmentInfo,
+  fixedCoord: number,
+): Point[] => {
+  const updatedPath = trace.tracePath.map((point) => ({ ...point }))
+  const p1 = updatedPath[segment.segmentIndex]!
+  const p2 = updatedPath[segment.segmentIndex + 1]!
+
+  if (segment.orientation === "horizontal") {
+    p1.y = fixedCoord
+    p2.y = fixedCoord
+  } else {
+    p1.x = fixedCoord
+    p2.x = fixedCoord
+  }
+
+  return simplifyPath(dedupeConsecutivePoints(updatedPath))
+}
+
+export const combineCloseSameNetSegments = (
+  traces: SolvedTracePath[],
+  opts: { maxDistance?: number } = {},
+): SolvedTracePath[] => {
+  const maxDistance = opts.maxDistance ?? DEFAULT_MAX_DISTANCE
+  let outputTraces = traces.map((trace) => ({
+    ...trace,
+    tracePath: trace.tracePath.map((point) => ({ ...point })),
+  }))
+
+  let changed = true
+  let passCount = 0
+  const maxPasses = Math.max(1, traces.length * 4)
+
+  while (changed && passCount < maxPasses) {
+    changed = false
+    passCount++
+
+    const tracesByNet = new Map<string, number[]>()
+    outputTraces.forEach((trace, traceIndex) => {
+      if (!trace.globalConnNetId) return
+      const traceIndexes = tracesByNet.get(trace.globalConnNetId) ?? []
+      traceIndexes.push(traceIndex)
+      tracesByNet.set(trace.globalConnNetId, traceIndexes)
+    })
+
+    for (const traceIndexes of tracesByNet.values()) {
+      if (traceIndexes.length < 2) continue
+
+      const segments = traceIndexes.flatMap((traceIndex) =>
+        getSegmentsForTrace(outputTraces[traceIndex]!, traceIndex),
+      )
+
+      for (let i = 0; i < segments.length; i++) {
+        const a = segments[i]!
+        for (let j = i + 1; j < segments.length; j++) {
+          const b = segments[j]!
+          if (a.traceIndex === b.traceIndex) continue
+          if (a.orientation !== b.orientation) continue
+          if (getOverlapLength(a, b) <= EPS) continue
+
+          const distance = Math.abs(a.fixedCoord - b.fixedCoord)
+          if (distance <= EPS || distance > maxDistance) continue
+
+          const movingSegment = b.canMove ? b : a.canMove ? a : null
+          const anchorSegment = movingSegment === b ? a : b
+          if (!movingSegment) continue
+
+          const movingTrace = outputTraces[movingSegment.traceIndex]!
+          const updatedPath = moveSegmentToCoord(
+            movingTrace,
+            movingSegment,
+            anchorSegment.fixedCoord,
+          )
+
+          if (
+            introducesDifferentNetIntersection({
+              trace: movingTrace,
+              updatedPath,
+              allTraces: outputTraces,
+            })
+          ) {
+            continue
+          }
+
+          outputTraces = outputTraces.map((trace, traceIndex) =>
+            traceIndex === movingSegment.traceIndex
+              ? { ...trace, tracePath: updatedPath }
+              : trace,
+          )
+          changed = true
+          break
+        }
+        if (changed) break
+      }
+      if (changed) break
+    }
+  }
+
+  return outputTraces
+}
diff --git a/tests/solvers/TraceCleanupSolver/combine-close-same-net-segments.test.ts b/tests/solvers/TraceCleanupSolver/combine-close-same-net-segments.test.ts
new file mode 100644
index 000000000..4c1e5ddd8
--- /dev/null
+++ b/tests/solvers/TraceCleanupSolver/combine-close-same-net-segments.test.ts
@@ -0,0 +1,141 @@
+import { expect, test } from "bun:test"
+import type { SolvedTracePath } from "lib/solvers/SchematicTraceLinesSolver/SchematicTraceLinesSolver"
+import { combineCloseSameNetSegments } from "lib/solvers/TraceCleanupSolver/combineCloseSameNetSegments"
+import { TraceCleanupSolver } from "lib/solvers/TraceCleanupSolver/TraceCleanupSolver"
+
+const trace = (
+  id: string,
+  net: string,
+  tracePath: Array<{ x: number; y: number }>,
+): SolvedTracePath =>
+  ({
+    mspPairId: id,
+    globalConnNetId: net,
+    tracePath,
+    mspConnectionPairIds: [id],
+    pinIds: [`${id}.a`, `${id}.b`],
+    pins: [],
+  }) as any
+
+test("aligns close overlapping same-net internal horizontal segments", () => {
+  const traces = combineCloseSameNetSegments([
+    trace("a", "net1", [
+      { x: 0, y: 0 },
+      { x: 0, y: 1 },
+      { x: 4, y: 1 },
+      { x: 4, y: 0 },
+    ]),
+    trace("b", "net1", [
+      { x: 0, y: 3 },
+      { x: 0, y: 1.1 },
+      { x: 4, y: 1.1 },
+      { x: 4, y: 3 },
+    ]),
+  ])
+
+  expect(traces[1]!.tracePath).toEqual([
+    { x: 0, y: 3 },
+    { x: 0, y: 1 },
+    { x: 4, y: 1 },
+    { x: 4, y: 3 },
+  ])
+})
+
+test("TraceCleanupSolver runs close same-net segment combining as a cleanup phase", () => {
+  const solver = new TraceCleanupSolver({
+    inputProblem: {
+      chips: [],
+      directConnections: [],
+      netConnections: [],
+      availableNetLabelOrientations: {},
+    },
+    allTraces: [
+      trace("a", "net1", [
+        { x: 0, y: 0 },
+        { x: 0, y: 1 },
+        { x: 4, y: 1 },
+        { x: 4, y: 0 },
+      ]),
+      trace("b", "net1", [
+        { x: 0, y: 3 },
+        { x: 0, y: 1.1 },
+        { x: 4, y: 1.1 },
+        { x: 4, y: 3 },
+      ]),
+    ],
+    allLabelPlacements: [],
+    mergedLabelNetIdMap: {},
+    paddingBuffer: 0.1,
+  })
+
+  solver.solve()
+
+  expect(solver.getOutput().traces[1]!.tracePath).toEqual([
+    { x: 0, y: 3 },
+    { x: 0, y: 1 },
+    { x: 4, y: 1 },
+    { x: 4, y: 3 },
+  ])
+})
+
+test("does not align close segments from different nets", () => {
+  const traces = combineCloseSameNetSegments([
+    trace("a", "net1", [
+      { x: 0, y: 0 },
+      { x: 0, y: 1 },
+      { x: 4, y: 1 },
+      { x: 4, y: 0 },
+    ]),
+    trace("b", "net2", [
+      { x: 0, y: 3 },
+      { x: 0, y: 1.1 },
+      { x: 4, y: 1.1 },
+      { x: 4, y: 3 },
+    ]),
+  ])
+
+  expect(traces[1]!.tracePath[1]!.y).toBe(1.1)
+  expect(traces[1]!.tracePath[2]!.y).toBe(1.1)
+})
+
+test("keeps endpoint segments fixed", () => {
+  const traces = combineCloseSameNetSegments([
+    trace("a", "net1", [
+      { x: 0, y: 0 },
+      { x: 4, y: 0 },
+    ]),
+    trace("b", "net1", [
+      { x: 0, y: 0.1 },
+      { x: 4, y: 0.1 },
+    ]),
+  ])
+
+  expect(traces[1]!.tracePath).toEqual([
+    { x: 0, y: 0.1 },
+    { x: 4, y: 0.1 },
+  ])
+})
+
+test("rejects moves that introduce a different-net intersection", () => {
+  const traces = combineCloseSameNetSegments([
+    trace("a", "net1", [
+      { x: 0, y: 0 },
+      { x: 0, y: 1 },
+      { x: 4, y: 1 },
+      { x: 4, y: 0 },
+    ]),
+    trace("b", "net1", [
+      { x: 0, y: 3 },
+      { x: 0, y: 1.1 },
+      { x: 4, y: 1.1 },
+      { x: 4, y: 3 },
+    ]),
+    trace("blocker", "net2", [
+      { x: 2, y: 0.5 },
+      { x: 2, y: 1.05 },
+    ]),
+  ])
+
+  expect(traces[1]!.tracePath[1]!.y).toBe(1.1)
+  expect(traces[1]!.tracePath[2]!.y).toBe(1.1)
+})