diff --git a/public/main.js b/public/main.js
index c0ac9d110..2f055942e 100644
--- a/public/main.js
+++ b/public/main.js
@@ -650,6 +650,8 @@ async function generate(options) {
     Provinces.generate();
     Provinces.getPoles();
 
+    Labels.generate();
+
     Rivers.specify();
     Lakes.defineNames();
 
diff --git a/public/modules/dynamic/auto-update.js b/public/modules/dynamic/auto-update.js
index 0b1cd227c..aaf635396 100644
--- a/public/modules/dynamic/auto-update.js
+++ b/public/modules/dynamic/auto-update.js
@@ -1106,4 +1106,161 @@ export function resolveVersionConflicts(mapVersion) {
     }
 
   }
+
+  if (isOlderThan("1.114.0")) {
+    // v1.114.0 moved labels data from SVG to data model
+    // Migrate old SVG labels to pack.labels structure
+    if (!pack.labels || !pack.labels.length) {
+      pack.labels = [];
+      let labelId = 0;
+
+      // Migrate state labels
+      const stateLabelsGroup = document.querySelector("#labels > #states");
+      if (stateLabelsGroup) {
+        stateLabelsGroup.querySelectorAll("text").forEach(textElement => {
+          const id = textElement.getAttribute("id");
+          if (!id || !id.startsWith("stateLabel")) return;
+          
+          const stateIdMatch = id.match(/stateLabel(\d+)/);
+          if (!stateIdMatch) return;
+          
+          const stateId = +stateIdMatch[1];
+          const state = pack.states[stateId];
+          if (!state || state.removed) return;
+          
+          const textPath = textElement.querySelector("textPath");
+          if (!textPath) return;
+          
+          const text = textPath.textContent.trim();
+          const fontSizeAttr = textPath.getAttribute("font-size");
+          const fontSize = fontSizeAttr ? parseFloat(fontSizeAttr) : 100;
+          
+          pack.labels.push({
+            i: labelId++,
+            type: "state",
+            stateId: stateId,
+            text: text,
+            fontSize: fontSize
+          });
+        });
+      }
+
+      // Migrate burg labels
+      const burgLabelsGroup = document.querySelector("#burgLabels");
+      if (burgLabelsGroup) {
+        burgLabelsGroup.querySelectorAll("g").forEach(groupElement => {
+          const group = groupElement.getAttribute("id");
+          if (!group) return;
+          
+          const dxAttr = groupElement.getAttribute("data-dx");
+          const dyAttr = groupElement.getAttribute("data-dy");
+          const dx = dxAttr ? parseFloat(dxAttr) : 0;
+          const dy = dyAttr ? parseFloat(dyAttr) : 0;
+          
+          groupElement.querySelectorAll("text").forEach(textElement => {
+            const burgId = +textElement.getAttribute("data-id");
+            if (!burgId) return;
+            
+            const burg = pack.burgs[burgId];
+            if (!burg || burg.removed) return;
+            
+            const text = textElement.textContent.trim();
+            // Use burg coordinates, not SVG text coordinates
+            // SVG coordinates may be affected by viewbox transforms
+            const x = burg.x;
+            const y = burg.y;
+            
+            pack.labels.push({
+              i: labelId++,
+              type: "burg",
+              burgId: burgId,
+              group: group,
+              text: text,
+              x: x,
+              y: y,
+              dx: dx,
+              dy: dy
+            });
+          });
+        });
+      }
+
+      // Migrate custom labels
+      const customLabelsGroup = document.querySelector("#labels > #addedLabels");
+      if (customLabelsGroup) {
+        customLabelsGroup.querySelectorAll("text").forEach(textElement => {
+          const id = textElement.getAttribute("id");
+          if (!id) return;
+          
+          const group = "custom";
+          const textPath = textElement.querySelector("textPath");
+          if (!textPath) return;
+          
+          const text = textPath.textContent.trim();
+          const fontSizeAttr = textPath.getAttribute("font-size");
+          const fontSize = fontSizeAttr ? parseFloat(fontSizeAttr) : 100;
+          const letterSpacingAttr = textPath.getAttribute("letter-spacing");
+          const letterSpacing = letterSpacingAttr ? parseFloat(letterSpacingAttr) : 0;
+          const startOffsetAttr = textPath.getAttribute("startOffset");
+          const startOffset = startOffsetAttr ? parseFloat(startOffsetAttr) : 50;
+          const transform = textPath.getAttribute("transform");
+          
+          // Get path points from the referenced path
+          const href = textPath.getAttribute("xlink:href") || textPath.getAttribute("href");
+          if (!href) return;
+          
+          const pathId = href.replace("#", "");
+          const pathElement = document.getElementById(pathId);
+          if (!pathElement) return;
+          
+          const d = pathElement.getAttribute("d");
+          if (!d) return;
+          
+          // Parse path data to extract points(M, L and C commands)
+          const pathPoints = [];
+          const commands = d.match(/[MLC][^MLC]*/g);
+          if (commands) {
+            commands.forEach(cmd => {
+              const type = cmd[0];
+              if (type === "M" || type === "L") {
+                const coords = cmd.slice(1).trim().split(/[\s,]+/).map(Number);
+                if (coords.length >= 2) {
+                  pathPoints.push([coords[0], coords[1]]);
+                }
+              } else if (type === "C") {
+                const coords = cmd.slice(1).trim().split(/[\s,]+/).map(Number);
+                if (coords.length >= 6) {
+                  pathPoints.push([coords[4], coords[5]]);
+                }
+              }
+            });
+          }
+          
+          if (pathPoints.length > 0) {
+            pack.labels.push({
+              i: labelId++,
+              type: "custom",
+              group: group,
+              text: text,
+              pathPoints: pathPoints,
+              startOffset: startOffset,
+              fontSize: fontSize,
+              letterSpacing: letterSpacing,
+              transform: transform || undefined
+            });
+          }
+        });
+      }
+
+      // Clear old SVG labels and redraw from data
+      if (stateLabelsGroup) stateLabelsGroup.querySelectorAll("*").forEach(el => el.remove());
+      if (burgLabelsGroup) burgLabelsGroup.querySelectorAll("text").forEach(el => el.remove());
+      
+      // Regenerate labels from data
+      if (layerIsOn("toggleLabels")) {
+        drawStateLabels();
+        drawBurgLabels();
+      }
+    }
+  }
 }
diff --git a/public/modules/io/load.js b/public/modules/io/load.js
index 9b401733e..441e25fe0 100644
--- a/public/modules/io/load.js
+++ b/public/modules/io/load.js
@@ -407,6 +407,7 @@ async function parseLoadedData(data, mapVersion) {
       // data[28] had deprecated cells.crossroad
       pack.cells.routes = data[36] ? JSON.parse(data[36]) : {};
       pack.ice = data[39] ? JSON.parse(data[39]) : [];
+      pack.labels = data[40] ? JSON.parse(data[40]) : [];
 
       if (data[31]) {
         const namesDL = data[31].split("/");
@@ -473,7 +474,7 @@ async function parseLoadedData(data, mapVersion) {
 
     {
       // dynamically import and run auto-update script
-      const {resolveVersionConflicts} = await import("../dynamic/auto-update.js?v=1.109.4");
+      const {resolveVersionConflicts} = await import("../dynamic/auto-update.js?v=1.113.0");
       resolveVersionConflicts(mapVersion);
     }
 
diff --git a/public/modules/io/save.js b/public/modules/io/save.js
index 25cd7493c..4d6c40ea1 100644
--- a/public/modules/io/save.js
+++ b/public/modules/io/save.js
@@ -104,6 +104,7 @@ function prepareMapData() {
   const routes = JSON.stringify(pack.routes);
   const zones = JSON.stringify(pack.zones);
   const ice = JSON.stringify(pack.ice);
+  const labels = JSON.stringify(pack.labels || []);
 
   // store name array only if not the same as default
   const defaultNB = Names.getNameBases();
@@ -158,7 +159,8 @@ function prepareMapData() {
     cellRoutes,
     routes,
     zones,
-    ice
+    ice,
+    labels
   ].join("\r\n");
   return mapData;
 }
diff --git a/public/modules/ui/burg-editor.js b/public/modules/ui/burg-editor.js
index 4232d2391..3cdfa3fd1 100644
--- a/public/modules/ui/burg-editor.js
+++ b/public/modules/ui/burg-editor.js
@@ -118,6 +118,9 @@ function editBurg(id) {
     const id = +elSelected.attr("data-id");
     pack.burgs[id].name = burgName.value;
     elSelected.text(burgName.value);
+    // Sync to Labels data model
+    const labelData = Labels.getBurgLabel(id);
+    if (labelData) Labels.updateLabel(labelData.i, {text: burgName.value});
   }
 
   function generateNameRandom() {
@@ -382,6 +385,10 @@ function editBurg(id) {
     burg.y = y;
     if (burg.capital) pack.states[newState].center = burg.cell;
 
+    // Sync position to Labels data model
+    const labelData = Labels.getBurgLabel(id);
+    if (labelData) Labels.updateLabel(labelData.i, {x, y});
+
     if (d3.event.shiftKey === false) toggleRelocateBurg();
   }
 
diff --git a/public/modules/ui/labels-editor.js b/public/modules/ui/labels-editor.js
index 8c47ec99e..647eb7bff 100644
--- a/public/modules/ui/labels-editor.js
+++ b/public/modules/ui/labels-editor.js
@@ -1,4 +1,54 @@
 "use strict";
+
+// Helper: extract control points from an SVG path element
+function extractPathPoints(pathElement) {
+  if (!pathElement) return [];
+  const l = pathElement.getTotalLength();
+  if (!l) return [];
+  const points = [];
+  const increment = l / Math.max(Math.ceil(l / 200), 2);
+  for (let i = 0; i <= l; i += increment) {
+    const point = pathElement.getPointAtLength(i);
+    points.push([point.x, point.y]);
+  }
+  return points;
+}
+
+// Helper: find label data from the Labels data model for an SVG text element
+function getLabelData(textElement) {
+  const id = textElement.id || "";
+  if (id.startsWith("stateLabel")) {
+    return Labels.getStateLabel(+id.slice(10));
+  }
+  // Custom labels: check for existing data-label-id attribute
+  const dataLabelId = textElement.getAttribute("data-label-id");
+  if (dataLabelId != null) {
+    const existing = Labels.get(+dataLabelId);
+    if (existing) return existing;
+    // Data was cleared (e.g., map regenerated) — recreate
+    textElement.removeAttribute("data-label-id");
+  }
+  // No data entry found — create one from SVG state (migration path)
+  return createCustomLabelDataFromSvg(textElement);
+}
+
+// Helper: create a CustomLabelData entry from existing SVG elements
+function createCustomLabelDataFromSvg(textElement) {
+  const textPathEl = textElement.querySelector("textPath");
+  if (!textPathEl) return null;
+  const group = textElement.parentNode.id;
+  const text = [...textPathEl.querySelectorAll("tspan")].map(t => t.textContent).join("|");
+  const pathEl = byId("textPath_" + textElement.id);
+  const pathPoints = extractPathPoints(pathEl);
+  const startOffset = parseFloat(textPathEl.getAttribute("startOffset")) || 50;
+  const fontSize = parseFloat(textPathEl.getAttribute("font-size")) || 100;
+  const letterSpacing = parseFloat(textPathEl.getAttribute("letter-spacing") || "0");
+  const transform = textElement.getAttribute("transform") || undefined;
+  const label = Labels.addCustomLabel({ group, text, pathPoints, startOffset, fontSize, letterSpacing, transform });
+  textElement.setAttribute("data-label-id", String(label.i));
+  return label;
+}
+
 function editLabel() {
   if (customization) return;
   closeDialogs();
@@ -14,7 +64,7 @@ function editLabel() {
     title: "Edit Label",
     resizable: false,
     width: fitContent(),
-    position: {my: "center top+10", at: "bottom", of: text, collision: "fit"},
+    position: { my: "center top+10", at: "bottom", of: text, collision: "fit" },
     close: closeLabelEditor
   });
 
@@ -82,11 +132,21 @@ function editLabel() {
   }
 
   function updateValues(textPath) {
-    byId("labelText").value = [...textPath.querySelectorAll("tspan")].map(tspan => tspan.textContent).join("|");
-    byId("labelStartOffset").value = parseFloat(textPath.getAttribute("startOffset"));
-    byId("labelRelativeSize").value = parseFloat(textPath.getAttribute("font-size"));
-    let letterSpacingSize = textPath.getAttribute("letter-spacing") ? textPath.getAttribute("letter-spacing") : 0;
-    byId("labelLetterSpacingSize").value = parseFloat(letterSpacingSize);
+    const labelData = getLabelData(elSelected.node());
+    if (labelData && labelData.type === "custom") {
+      // Custom labels: read all values from data model
+      byId("labelText").value = labelData.text || "";
+      byId("labelStartOffset").value = labelData.startOffset || 50;
+      byId("labelRelativeSize").value = labelData.fontSize || 100;
+      byId("labelLetterSpacingSize").value = labelData.letterSpacing || 0;
+    } else {
+      // State labels and fallback: read from SVG, use data model fontSize if available
+      byId("labelText").value = [...textPath.querySelectorAll("tspan")].map(tspan => tspan.textContent).join("|");
+      byId("labelStartOffset").value = parseFloat(textPath.getAttribute("startOffset")) || 50;
+      byId("labelRelativeSize").value = (labelData && labelData.fontSize) || parseFloat(textPath.getAttribute("font-size")) || 100;
+      let letterSpacingSize = textPath.getAttribute("letter-spacing") ? textPath.getAttribute("letter-spacing") : 0;
+      byId("labelLetterSpacingSize").value = parseFloat(letterSpacingSize);
+    }
   }
 
   function drawControlPointsAndLine() {
@@ -128,11 +188,14 @@ function editLabel() {
       .select("#controlPoints")
       .selectAll("circle")
       .each(function () {
-        points.push([this.getAttribute("cx"), this.getAttribute("cy")]);
+        points.push([+this.getAttribute("cx"), +this.getAttribute("cy")]);
       });
     const d = round(lineGen(points));
     path.setAttribute("d", d);
     debug.select("#controlPoints > path").attr("d", d);
+    // Sync path control points back to data model
+    const labelData = getLabelData(elSelected.node());
+    if (labelData) Labels.updateLabel(labelData.i, { pathPoints: points });
   }
 
   function clickControlPoint() {
@@ -187,6 +250,8 @@ function editLabel() {
       const transform = `translate(${dx + x},${dy + y})`;
       elSelected.attr("transform", transform);
       debug.select("#controlPoints").attr("transform", transform);
+      const labelData = getLabelData(elSelected.node());
+      if (labelData) Labels.updateLabel(labelData.i, { transform });
     });
   }
 
@@ -205,6 +270,10 @@ function editLabel() {
 
   function changeGroup() {
     byId(this.value).appendChild(elSelected.node());
+    const labelData = getLabelData(elSelected.node());
+    if (labelData && labelData.type === "custom") {
+      Labels.updateLabel(labelData.i, { group: this.value });
+    }
   }
 
   function toggleNewGroupInput() {
@@ -243,6 +312,9 @@ function editLabel() {
     if (oldGroup !== "states" && oldGroup !== "addedLabels" && oldGroup.childElementCount === 1) {
       byId("labelGroupSelect").selectedOptions[0].remove();
       byId("labelGroupSelect").options.add(new Option(group, group, false, true));
+      // Update data model for labels in the old group
+      const oldGroupName = oldGroup.id;
+      Labels.getByGroup(oldGroupName).forEach(l => Labels.updateLabel(l.i, { group }));
       oldGroup.id = group;
       toggleNewGroupInput();
       byId("labelGroupInput").value = "";
@@ -254,6 +326,11 @@ function editLabel() {
     newGroup.id = group;
     byId("labelGroupSelect").options.add(new Option(group, group, false, true));
     byId(group).appendChild(elSelected.node());
+    // Update data model group for the moved label
+    const labelData = getLabelData(elSelected.node());
+    if (labelData && labelData.type === "custom") {
+      Labels.updateLabel(labelData.i, { group });
+    }
 
     toggleNewGroupInput();
     byId("labelGroupInput").value = "";
@@ -263,9 +340,8 @@ function editLabel() {
     const group = elSelected.node().parentNode.id;
     const basic = group === "states" || group === "addedLabels";
     const count = elSelected.node().parentNode.childElementCount;
-    alertMessage.innerHTML = /* html */ `Are you sure you want to remove ${
-      basic ? "all elements in the group" : "the entire label group"
-    }? <br /><br />Labels to be
+    alertMessage.innerHTML = /* html */ `Are you sure you want to remove ${basic ? "all elements in the group" : "the entire label group"
+      }? <br /><br />Labels to be
       removed: ${count}`;
     $("#alert").dialog({
       resizable: false,
@@ -275,6 +351,12 @@ function editLabel() {
           $(this).dialog("close");
           $("#labelEditor").dialog("close");
           hideGroupSection();
+          // Remove from data model
+          if (basic && group === "states") {
+            Labels.removeByType("state");
+          } else {
+            Labels.removeByGroup(group);
+          }
           labels
             .select("#" + group)
             .selectAll("text")
@@ -311,15 +393,19 @@ function editLabel() {
       el.innerHTML = lines.map((line, index) => `<tspan x="0" dy="${index ? 1 : top}em">${line}</tspan>`).join("");
     } else el.innerHTML = `<tspan x="0">${lines}</tspan>`;
 
+    // Update data model
+    const labelData = getLabelData(elSelected.node());
+    if (labelData) Labels.updateLabel(labelData.i, { text: input });
+
     if (elSelected.attr("id").slice(0, 10) === "stateLabel")
       tip("Use States Editor to change an actual state name, not just a label", false, "warning");
   }
 
   function generateRandomName() {
     let name = "";
-    if (elSelected.attr("id").slice(0, 10) === "stateLabel") {
-      const id = +elSelected.attr("id").slice(10);
-      const culture = pack.states[id].culture;
+    const labelData = getLabelData(elSelected.node());
+    if (labelData && labelData.type === "state") {
+      const culture = pack.states[labelData.stateId].culture;
       name = Names.getState(Names.getCulture(culture, 4, 7, ""), culture);
     } else {
       const box = elSelected.node().getBBox();
@@ -358,17 +444,23 @@ function editLabel() {
 
   function changeStartOffset() {
     elSelected.select("textPath").attr("startOffset", this.value + "%");
+    const labelData = getLabelData(elSelected.node());
+    if (labelData) Labels.updateLabel(labelData.i, { startOffset: +this.value });
     tip("Label offset: " + this.value + "%");
   }
 
   function changeRelativeSize() {
     elSelected.select("textPath").attr("font-size", this.value + "%");
+    const labelData = getLabelData(elSelected.node());
+    if (labelData) Labels.updateLabel(labelData.i, { fontSize: +this.value });
     tip("Label relative size: " + this.value + "%");
     changeText();
   }
 
   function changeLetterSpacingSize() {
     elSelected.select("textPath").attr("letter-spacing", this.value + "px");
+    const labelData = getLabelData(elSelected.node());
+    if (labelData) Labels.updateLabel(labelData.i, { letterSpacing: +this.value });
     tip("Label letter-spacing size: " + this.value + "px");
     changeText();
   }
@@ -379,6 +471,12 @@ function editLabel() {
     const path = defs.select("#textPath_" + elSelected.attr("id"));
     path.attr("d", `M${c[0] - bbox.width},${c[1]}h${bbox.width * 2}`);
     drawControlPointsAndLine();
+    // Sync aligned path to data model
+    const labelData = getLabelData(elSelected.node());
+    if (labelData) {
+      const pathEl = byId("textPath_" + elSelected.attr("id"));
+      Labels.updateLabel(labelData.i, { pathPoints: extractPathPoints(pathEl) });
+    }
   }
 
   function editLabelLegend() {
@@ -395,6 +493,8 @@ function editLabel() {
       buttons: {
         Remove: function () {
           $(this).dialog("close");
+          const labelData = getLabelData(elSelected.node());
+          if (labelData) Labels.removeLabel(labelData.i);
           defs.select("#textPath_" + elSelected.attr("id")).remove();
           elSelected.remove();
           $("#labelEditor").dialog("close");
diff --git a/public/modules/ui/tools.js b/public/modules/ui/tools.js
index eade993f4..b4734c4bf 100644
--- a/public/modules/ui/tools.js
+++ b/public/modules/ui/tools.js
@@ -77,6 +77,7 @@ toolsContent.addEventListener("click", function (event) {
 function processFeatureRegeneration(event, button) {
   if (button === "regenerateStateLabels") {
     $("#labels").fadeIn();
+    Labels.generateStateLabels();
     drawStateLabels();
   } else if (button === "regenerateReliefIcons") {
     drawReliefIcons();
diff --git a/public/versioning.js b/public/versioning.js
index 7861158df..ba2b4e45c 100644
--- a/public/versioning.js
+++ b/public/versioning.js
@@ -13,7 +13,7 @@
  * Example: 1.102.2 -> Major version 1, Minor version 102, Patch version 2
  */
 
-const VERSION = "1.112.4";
+const VERSION = "1.114.0";
 if (parseMapVersion(VERSION) !== VERSION) alert("versioning.js: Invalid format or parsing function");
 
 {
diff --git a/src/index.html b/src/index.html
index 9414a182d..878f3947b 100644
--- a/src/index.html
+++ b/src/index.html
@@ -8506,7 +8506,7 @@
     <script defer src="modules/ui/style-presets.js?v=1.100.00"></script>
     <script defer src="modules/ui/general.js?v=1.100.00"></script>
     <script defer src="modules/ui/options.js?v=1.106.2"></script>
-    <script defer src="main.js?v=1.111.0"></script>
+    <script defer src="main.js?v=1.114.0"></script>
 
     <script defer src="modules/ui/style.js?v=1.108.4"></script>
     <script defer src="modules/ui/editors.js?v=1.112.1"></script>
@@ -8524,12 +8524,12 @@
     <script defer src="modules/ui/ice-editor.js?v=1.111.0"></script>
     <script defer src="modules/ui/lakes-editor.js?v=1.106.0"></script>
     <script defer src="modules/ui/coastline-editor.js?v=1.99.00"></script>
-    <script defer src="modules/ui/labels-editor.js?v=1.106.0"></script>
+    <script defer src="modules/ui/labels-editor.js?v=1.114.0"></script>
     <script defer src="modules/ui/rivers-editor.js?v=1.106.0"></script>
     <script defer src="modules/ui/rivers-creator.js?v=1.106.0"></script>
     <script defer src="modules/ui/relief-editor.js?v=1.99.00"></script>
     <script defer src="modules/ui/burg-group-editor.js?v=1.109.5"></script>
-    <script defer src="modules/ui/burg-editor.js?v=1.106.6"></script>
+    <script defer src="modules/ui/burg-editor.js?v=1.114.0"></script>
     <script defer src="modules/ui/units-editor.js?v=1.108.12"></script>
     <script defer src="modules/ui/notes-editor.js?v=1.107.3"></script>
     <script defer src="modules/ui/ai-generator.js?v=1.108.8"></script>
@@ -8551,8 +8551,8 @@
     <script defer src="modules/ui/hotkeys.js?v=1.104.0"></script>
     <script defer src="libs/rgbquant.min.js"></script>
     <script defer src="libs/jquery.ui.touch-punch.min.js"></script>
-    <script defer src="modules/io/save.js?v=1.111.0"></script>
-    <script defer src="modules/io/load.js?v=1.111.0"></script>
+    <script defer src="modules/io/save.js?v=1.114.0"></script>
+    <script defer src="modules/io/load.js?v=1.114.0"></script>
     <script defer src="modules/io/cloud.js?v=1.106.0"></script>
     <script defer src="modules/io/export.js?v=1.112.2"></script>
   </body>
diff --git a/src/modules/burgs-generator.ts b/src/modules/burgs-generator.ts
index 6fccd517f..29794222b 100644
--- a/src/modules/burgs-generator.ts
+++ b/src/modules/burgs-generator.ts
@@ -1,5 +1,6 @@
 import { quadtree } from "d3-quadtree";
 import { byId, each, gauss, minmax, normalize, P, rn } from "../utils";
+import { drawBurgLabel } from "../renderers/draw-burg-labels";
 
 declare global {
   var Burgs: BurgModule;
@@ -728,7 +729,7 @@ class BurgModule {
     }
 
     removeBurgIcon(burg.i!);
-    removeBurgLabel(burg.i!);
+    Labels.removeBurgLabel(burg.i!);
   }
 }
 window.Burgs = new BurgModule();
diff --git a/src/modules/index.ts b/src/modules/index.ts
index ad5c2de30..253b047bb 100644
--- a/src/modules/index.ts
+++ b/src/modules/index.ts
@@ -12,6 +12,7 @@ import "./routes-generator";
 import "./states-generator";
 import "./zones-generator";
 import "./religions-generator";
+import "./labels";
 import "./provinces-generator";
 import "./emblem";
 import "./ice";
diff --git a/src/modules/labels.ts b/src/modules/labels.ts
new file mode 100644
index 000000000..94ef689f9
--- /dev/null
+++ b/src/modules/labels.ts
@@ -0,0 +1,212 @@
+
+declare global {
+  var Labels: LabelsModule;
+}
+
+export interface StateLabelData {
+  i: number;
+  type: "state";
+  stateId: number;
+  text: string;
+  fontSize?: number;
+}
+
+export interface BurgLabelData {
+  i: number;
+  type: "burg";
+  burgId: number;
+  group: string;
+  text: string;
+  x: number;
+  y: number;
+}
+
+export interface CustomLabelData {
+  i: number;
+  type: "custom";
+  group: string;
+  text: string;
+  pathPoints: [number, number][];
+  startOffset?: number;
+  fontSize?: number;
+  letterSpacing?: number;
+  transform?: string;
+}
+
+export type LabelData = StateLabelData | BurgLabelData | CustomLabelData;
+
+class LabelsModule {
+  private getNextId(): number {
+    const labels = pack.labels;
+    if (labels.length === 0) return 0;
+
+    const existingIds = labels.map((l) => l.i).sort((a, b) => a - b);
+    for (let id = 0; id < existingIds[existingIds.length - 1]; id++) {
+      if (!existingIds.includes(id)) return id;
+    }
+    return existingIds[existingIds.length - 1] + 1;
+  }
+
+  generate(): void {
+    this.clear();
+    this.generateStateLabels();
+    this.generateBurgLabels();
+  }
+
+  getAll(): LabelData[] {
+    return pack.labels;
+  }
+
+  get(id: number): LabelData | undefined {
+    return pack.labels.find((l) => l.i === id);
+  }
+
+  getByType(type: LabelData["type"]): LabelData[] {
+    return pack.labels.filter((l) => l.type === type);
+  }
+
+  getByGroup(group: string): LabelData[] {
+    return pack.labels.filter(
+      (l) => (l.type === "burg" || l.type === "custom") && l.group === group,
+    );
+  }
+
+  getStateLabel(stateId: number): StateLabelData | undefined {
+    return pack.labels.find(
+      (l) => l.type === "state" && l.stateId === stateId,
+    ) as StateLabelData | undefined;
+  }
+
+  getBurgLabel(burgId: number): BurgLabelData | undefined {
+    return pack.labels.find((l) => l.type === "burg" && l.burgId === burgId) as
+      | BurgLabelData
+      | undefined;
+  }
+
+  addStateLabel(data: Omit<StateLabelData, "i" | "type">): StateLabelData {
+    const label: StateLabelData = {
+      i: this.getNextId(),
+      type: "state",
+      ...data,
+    };
+    pack.labels.push(label);
+    return label;
+  }
+
+  addBurgLabel(data: Omit<BurgLabelData, "i" | "type">): BurgLabelData {
+    const label: BurgLabelData = { i: this.getNextId(), type: "burg", ...data };
+    pack.labels.push(label);
+    return label;
+  }
+
+  addCustomLabel(data: Omit<CustomLabelData, "i" | "type">): CustomLabelData {
+    const label: CustomLabelData = {
+      i: this.getNextId(),
+      type: "custom",
+      ...data,
+    };
+    pack.labels.push(label);
+    return label;
+  }
+
+  updateLabel(id: number, updates: Partial<LabelData>): void {
+    const label = pack.labels.find((l) => l.i === id);
+    if (!label) return;
+    Object.assign(label, updates, { i: label.i, type: label.type });
+  }
+
+  removeLabel(id: number): void {
+    const index = pack.labels.findIndex((l) => l.i === id);
+    if (index !== -1) pack.labels.splice(index, 1);
+  }
+
+  removeByType(type: LabelData["type"]): void {
+    pack.labels = pack.labels.filter((l) => l.type !== type);
+  }
+
+  removeByGroup(group: string): void {
+    pack.labels = pack.labels.filter(
+      (l) => !((l.type === "burg" || l.type === "custom") && l.group === group),
+    );
+  }
+
+  removeStateLabel(stateId: number): void {
+    const index = pack.labels.findIndex(
+      (l) => l.type === "state" && l.stateId === stateId,
+    );
+    if (index !== -1) pack.labels.splice(index, 1);
+  }
+
+  removeBurgLabel(burgId: number): void {
+    const index = pack.labels.findIndex(
+      (l) => l.type === "burg" && l.burgId === burgId,
+    );
+    if (index !== -1) pack.labels.splice(index, 1);
+  }
+
+  clear(): void {
+    pack.labels = [];
+  }
+
+  /**
+   * Generate state labels data entries for each state.
+   * Only stores essential label data; raycast path calculation happens during rendering.
+   * @param list - Optional array of stateIds to regenerate only those
+   */
+  generateStateLabels(list?: number[]): void {
+    if (TIME) console.time("generateStateLabels");
+
+    const { states } = pack;
+
+    // Remove existing state labels that need regeneration
+    if (list) {
+      list.forEach((stateId) => this.removeStateLabel(stateId));
+    } else {
+      this.removeByType("state");
+    }
+
+    // Generate new label entries
+    for (const state of states) {
+      if (!state.i || state.removed || state.lock) continue;
+      if (list && !list.includes(state.i)) continue;
+
+      this.addStateLabel({
+        stateId: state.i,
+        text: state.name!,
+        fontSize: 100,
+      });
+    }
+
+    if (TIME) console.timeEnd("generateStateLabels");
+  }
+
+  /**
+   * Generate burg labels data from burgs.
+   * Populates pack.labels with BurgLabelData for each burg.
+   */
+  generateBurgLabels(): void {
+    if (TIME) console.time("generateBurgLabels");
+
+    // Remove existing burg labels
+    this.removeByType("burg");
+
+    // Generate new labels for all active burgs
+    for (const burg of pack.burgs) {
+      if (!burg.i || burg.removed) continue;
+
+      const group = burg.group || "unmarked";
+
+      this.addBurgLabel({
+        burgId: burg.i,
+        group,
+        text: burg.name!,
+        x: burg.x,
+        y: burg.y
+      });
+    }
+
+    if (TIME) console.timeEnd("generateBurgLabels");
+  }
+}
+
+window.Labels = new LabelsModule();
diff --git a/src/renderers/draw-burg-labels.ts b/src/renderers/draw-burg-labels.ts
index 5dc6cc713..6fcd0e4bf 100644
--- a/src/renderers/draw-burg-labels.ts
+++ b/src/renderers/draw-burg-labels.ts
@@ -1,61 +1,76 @@
 import type { Burg } from "../modules/burgs-generator";
-
-declare global {
-  var drawBurgLabels: () => void;
-  var drawBurgLabel: (burg: Burg) => void;
-  var removeBurgLabel: (burgId: number) => void;
-}
+import type { BurgLabelData } from "../modules/labels";
 
 interface BurgGroup {
   name: string;
   order: number;
 }
 
-const burgLabelsRenderer = (): void => {
+// remove this section once layer.js is refactored--------------------------------
+declare global {
+  var drawBurgLabels: () => void;
+}
+
+window.drawBurgLabels = drawBurgLabels;
+// section end -------------------------------------------------------------------
+
+export function drawBurgLabels(): void {
   TIME && console.time("drawBurgLabels");
   createLabelGroups();
 
-  for (const { name } of options.burgs.groups as BurgGroup[]) {
-    const burgsInGroup = pack.burgs.filter(
-      (b) => b.group === name && !b.removed,
-    );
-    if (!burgsInGroup.length) continue;
+  // Get all burg labels grouped by group name
+  const burgLabelsByGroup = new Map<string, BurgLabelData[]>();
+  for (const label of Labels.getByType("burg").map((l) => l as BurgLabelData)) {
+    if (!burgLabelsByGroup.has(label.group)) {
+      burgLabelsByGroup.set(label.group, []);
+    }
+    burgLabelsByGroup.get(label.group)!.push(label);
+  }
 
-    const labelGroup = burgLabels.select<SVGGElement>(`#${name}`);
+  // Render each group and update label offsets from SVG attributes
+  for (const [groupName, labels] of burgLabelsByGroup) {
+    const labelGroup = burgLabels.select<SVGGElement>(`#${groupName}`);
     if (labelGroup.empty()) continue;
 
-    const dx = labelGroup.attr("data-dx") || 0;
-    const dy = labelGroup.attr("data-dy") || 0;
-
-    labelGroup
-      .selectAll("text")
-      .data(burgsInGroup)
-      .enter()
-      .append("text")
-      .attr("text-rendering", "optimizeSpeed")
-      .attr("id", (d) => `burgLabel${d.i}`)
-      .attr("data-id", (d) => d.i!)
-      .attr("x", (d) => d.x)
-      .attr("y", (d) => d.y)
-      .attr("dx", `${dx}em`)
-      .attr("dy", `${dy}em`)
-      .text((d) => d.name!);
+    const dxAttr = style.burgLabels?.[groupName]?.["data-dx"];
+    const dyAttr = style.burgLabels?.[groupName]?.["data-dy"];
+    const dx = dxAttr ? parseFloat(dxAttr) : 0;
+    const dy = dyAttr ? parseFloat(dyAttr) : 0;
+
+    const labelsHTML: string[] = [];
+    for (const labelData of labels) {
+      labelsHTML.push(
+        `<text text-rendering="optimizeSpeed" id="burgLabel${labelData.burgId}" data-id="${labelData.burgId}" x="${labelData.x}" y="${labelData.y}" dx="${dx}em" dy="${dy}em">${labelData.text}</text>`,
+      );
+    }
+
+    // Set all labels at once
+    const groupNode = labelGroup.node();
+    if (groupNode) {
+      groupNode.innerHTML = labelsHTML.join("");
+    }
   }
 
   TIME && console.timeEnd("drawBurgLabels");
 };
 
-const drawBurgLabelRenderer = (burg: Burg): void => {
+export function drawBurgLabel(burg: Burg): void {
+  // TODO: remove label group dependency - for now, if group is missing, redraw all labels to recreate the group
   const labelGroup = burgLabels.select<SVGGElement>(`#${burg.group}`);
   if (labelGroup.empty()) {
     drawBurgLabels();
     return; // redraw all labels if group is missing
   }
 
-  const dx = labelGroup.attr("data-dx") || 0;
-  const dy = labelGroup.attr("data-dy") || 0;
+  const dxAttr = labelGroup.attr("data-dx");
+  const dyAttr = labelGroup.attr("data-dy");
+  const dx = dxAttr ? parseFloat(dxAttr) : 0;
+  const dy = dyAttr ? parseFloat(dyAttr) : 0;
 
-  removeBurgLabelRenderer(burg.i!);
+  const existingLabel = document.getElementById(`burgLabel${burg.i}`);
+  if (existingLabel) existingLabel.remove();
+
+  // Render to SVG
   labelGroup
     .append("text")
     .attr("text-rendering", "optimizeSpeed")
@@ -68,7 +83,7 @@ const drawBurgLabelRenderer = (burg: Burg): void => {
     .text(burg.name!);
 };
 
-const removeBurgLabelRenderer = (burgId: number): void => {
+export function removeBurgLabel(burgId: number): void {
   const existingLabel = document.getElementById(`burgLabel${burgId}`);
   if (existingLabel) existingLabel.remove();
 };
@@ -100,8 +115,4 @@ function createLabelGroups(): void {
     });
     group.attr("id", name);
   }
-}
-
-window.drawBurgLabels = burgLabelsRenderer;
-window.drawBurgLabel = drawBurgLabelRenderer;
-window.removeBurgLabel = removeBurgLabelRenderer;
+}
\ No newline at end of file
diff --git a/src/renderers/draw-state-labels.ts b/src/renderers/draw-state-labels.ts
index 24528d450..7015abaeb 100644
--- a/src/renderers/draw-state-labels.ts
+++ b/src/renderers/draw-state-labels.ts
@@ -1,34 +1,40 @@
 import { curveNatural, line, max, select } from "d3";
-import {
-  drawPath,
-  drawPoint,
-  findClosestCell,
-  minmax,
-  rn,
-  round,
-  splitInTwo,
-} from "../utils";
+import type { StateLabelData } from "../modules/labels";
+import { findClosestCell, minmax, rn, round, splitInTwo } from "../utils";
+import { ANGLES, findBestRayPair, raycast } from "./label-raycast";
 
 declare global {
   var drawStateLabels: (list?: number[]) => void;
 }
 
-interface Ray {
-  angle: number;
-  length: number;
-  x: number;
-  y: number;
+/**
+ * Helper function to calculate offset width for raycast based on state size
+ */
+function getOffsetWidth(cellsNumber: number): number {
+  if (cellsNumber < 40) return 0;
+  if (cellsNumber < 200) return 5;
+  return 10;
 }
 
-interface AngleData {
-  angle: number;
-  dx: number;
-  dy: number;
+function checkExampleLetterLength(): number {
+  const textGroup = select<SVGGElement, unknown>("g#labels > g#states");
+  const testLabel = textGroup
+    .append("text")
+    .attr("x", 0)
+    .attr("y", 0)
+    .text("Example");
+  const letterLength =
+    (testLabel.node() as SVGTextElement).getComputedTextLength() / 7; // approximate length of 1 letter
+  testLabel.remove();
+
+  return letterLength;
 }
 
-type PathPoints = [number, number][];
-
-// list - an optional array of stateIds to regenerate
+/**
+ * Render state labels from pack.labels data to SVG.
+ * Adjusts and fits labels based on layout constraints.
+ * list - optional array of stateIds to re-render
+ */
 const stateLabelsRenderer = (list?: number[]): void => {
   TIME && console.time("drawStateLabels");
 
@@ -36,37 +42,46 @@ const stateLabelsRenderer = (list?: number[]): void => {
   const layerDisplay = labels.style("display");
   labels.style("display", null);
 
-  const { cells, states, features } = pack;
-  const stateIds = cells.state;
-
-  // increase step to 15 or 30 to make it faster and more horyzontal
-  // decrease step to 5 to improve accuracy
-  const ANGLE_STEP = 9;
-  const angles = precalculateAngles(ANGLE_STEP);
+  const { states } = pack;
 
-  const LENGTH_START = 5;
-  const LENGTH_STEP = 5;
-  const LENGTH_MAX = 300;
+  // Get labels to render
+  const labelsToRender = list
+    ? Labels.getAll()
+        .filter(
+          (l) =>
+            l.type === "state" && list.includes((l as StateLabelData).stateId),
+        )
+        .map((l) => l as StateLabelData)
+    : Labels.getByType("state").map((l) => l as StateLabelData);
 
-  const labelPaths = getLabelPaths();
   const letterLength = checkExampleLetterLength();
-  drawLabelPath(letterLength);
+  drawLabelPath(letterLength, labelsToRender);
 
   // restore labels visibility
   labels.style("display", layerDisplay);
 
-  function getLabelPaths(): [number, PathPoints][] {
-    const labelPaths: [number, PathPoints][] = [];
+  function drawLabelPath(
+    letterLength: number,
+    labelDataList: StateLabelData[],
+  ): void {
+    const mode = options.stateLabelsMode || "auto";
+    const lineGen = line<[number, number]>().curve(curveNatural);
+
+    const textGroup = select<SVGGElement, unknown>("g#labels > g#states");
+    const pathGroup = select<SVGGElement, unknown>(
+      "defs > g#deftemp > g#textPaths",
+    );
 
-    for (const state of states) {
-      if (!state.i || state.removed || state.lock) continue;
-      if (list && !list.includes(state.i)) continue;
+    for (const labelData of labelDataList) {
+      const state = states[labelData.stateId];
+      if (!state.i || state.removed) continue;
 
+      // Calculate pathPoints using raycast algorithm (recalculated on each draw)
       const offset = getOffsetWidth(state.cells!);
       const maxLakeSize = state.cells! / 20;
       const [x0, y0] = state.pole!;
 
-      const rays: Ray[] = angles.map(({ angle, dx, dy }) => {
+      const rays = ANGLES.map(({ angle, dx, dy }) => {
         const { length, x, y } = raycast({
           stateId: state.i,
           x0,
@@ -80,61 +95,20 @@ const stateLabelsRenderer = (list?: number[]): void => {
       });
       const [ray1, ray2] = findBestRayPair(rays);
 
-      const pathPoints: PathPoints = [
+      const pathPoints: [number, number][] = [
         [ray1.x, ray1.y],
         state.pole!,
         [ray2.x, ray2.y],
       ];
       if (ray1.x > ray2.x) pathPoints.reverse();
 
-      if (DEBUG.stateLabels) {
-        drawPoint(state.pole!, { color: "black", radius: 1 });
-        drawPath(pathPoints, { color: "black", width: 0.2 });
-      }
-
-      labelPaths.push([state.i, pathPoints]);
-    }
-
-    return labelPaths;
-  }
-
-  function checkExampleLetterLength(): number {
-    const textGroup = select<SVGGElement, unknown>("g#labels > g#states");
-    const testLabel = textGroup
-      .append("text")
-      .attr("x", 0)
-      .attr("y", 0)
-      .text("Example");
-    const letterLength =
-      (testLabel.node() as SVGTextElement).getComputedTextLength() / 7; // approximate length of 1 letter
-    testLabel.remove();
-
-    return letterLength;
-  }
-
-  function drawLabelPath(letterLength: number): void {
-    const mode = options.stateLabelsMode || "auto";
-    const lineGen = line<[number, number]>().curve(curveNatural);
-
-    const textGroup = select<SVGGElement, unknown>("g#labels > g#states");
-    const pathGroup = select<SVGGElement, unknown>(
-      "defs > g#deftemp > g#textPaths",
-    );
-
-    for (const [stateId, pathPoints] of labelPaths) {
-      const state = states[stateId];
-      if (!state.i || state.removed)
-        throw new Error("State must not be neutral or removed");
-      if (pathPoints.length < 2)
-        throw new Error("Label path must have at least 2 points");
-
-      textGroup.select(`#stateLabel${stateId}`).remove();
-      pathGroup.select(`#textPath_stateLabel${stateId}`).remove();
+      textGroup.select(`#stateLabel${labelData.stateId}`).remove();
+      pathGroup.select(`#textPath_stateLabel${labelData.stateId}`).remove();
 
       const textPath = pathGroup
         .append("path")
         .attr("d", round(lineGen(pathPoints) || ""))
-        .attr("id", `textPath_stateLabel${stateId}`);
+        .attr("id", `textPath_stateLabel${labelData.stateId}`);
 
       const pathLength =
         (textPath.node() as SVGPathElement).getTotalLength() / letterLength; // path length in letters
@@ -145,6 +119,9 @@ const stateLabelsRenderer = (list?: number[]): void => {
         pathLength,
       );
 
+      // Update label data with font size
+      Labels.updateLabel(labelData.i, { fontSize: ratio });
+
       // prolongate path if it's too short
       const longestLineLength = max(lines.map((line) => line.length)) || 0;
       if (pathLength && pathLength < longestLineLength) {
@@ -165,7 +142,7 @@ const stateLabelsRenderer = (list?: number[]): void => {
       const textElement = textGroup
         .append("text")
         .attr("text-rendering", "optimizeSpeed")
-        .attr("id", `stateLabel${stateId}`)
+        .attr("id", `stateLabel${labelData.stateId}`)
         .append("textPath")
         .attr("startOffset", "50%")
         .attr("font-size", `${ratio}%`)
@@ -179,8 +156,12 @@ const stateLabelsRenderer = (list?: number[]): void => {
       textElement.insertAdjacentHTML("afterbegin", spans.join(""));
 
       const { width, height } = textElement.getBBox();
-      textElement.setAttribute("href", `#textPath_stateLabel${stateId}`);
+      textElement.setAttribute(
+        "href",
+        `#textPath_stateLabel${labelData.stateId}`,
+      );
 
+      const stateIds = pack.cells.state;
       if (mode === "full" || lines.length === 1) continue;
 
       // check if label fits state boundaries. If no, replace it with short name
@@ -193,7 +174,7 @@ const stateLabelsRenderer = (list?: number[]): void => {
         width / 2,
         height / 2,
         stateIds,
-        stateId,
+        labelData.stateId,
       );
       if (isInsideState) continue;
 
@@ -203,6 +184,7 @@ const stateLabelsRenderer = (list?: number[]): void => {
           ? state.fullName!
           : state.name!;
       textElement.innerHTML = `<tspan x="0">${text}</tspan>`;
+      Labels.updateLabel(labelData.i, { text });
 
       const correctedRatio = minmax(
         rn((pathLength / text.length) * 50),
@@ -210,162 +192,10 @@ const stateLabelsRenderer = (list?: number[]): void => {
         130,
       );
       textElement.setAttribute("font-size", `${correctedRatio}%`);
+      Labels.updateLabel(labelData.i, { fontSize: correctedRatio });
     }
   }
 
-  function getOffsetWidth(cellsNumber: number): number {
-    if (cellsNumber < 40) return 0;
-    if (cellsNumber < 200) return 5;
-    return 10;
-  }
-
-  function precalculateAngles(step: number): AngleData[] {
-    const angles: AngleData[] = [];
-    const RAD = Math.PI / 180;
-
-    for (let angle = 0; angle < 360; angle += step) {
-      const dx = Math.cos(angle * RAD);
-      const dy = Math.sin(angle * RAD);
-      angles.push({ angle, dx, dy });
-    }
-
-    return angles;
-  }
-
-  function raycast({
-    stateId,
-    x0,
-    y0,
-    dx,
-    dy,
-    maxLakeSize,
-    offset,
-  }: {
-    stateId: number;
-    x0: number;
-    y0: number;
-    dx: number;
-    dy: number;
-    maxLakeSize: number;
-    offset: number;
-  }): { length: number; x: number; y: number } {
-    let ray = { length: 0, x: x0, y: y0 };
-
-    for (
-      let length = LENGTH_START;
-      length < LENGTH_MAX;
-      length += LENGTH_STEP
-    ) {
-      const [x, y] = [x0 + length * dx, y0 + length * dy];
-      // offset points are perpendicular to the ray
-      const offset1: [number, number] = [x + -dy * offset, y + dx * offset];
-      const offset2: [number, number] = [x + dy * offset, y + -dx * offset];
-
-      if (DEBUG.stateLabels) {
-        drawPoint([x, y], {
-          color: isInsideState(x, y) ? "blue" : "red",
-          radius: 0.8,
-        });
-        drawPoint(offset1, {
-          color: isInsideState(...offset1) ? "blue" : "red",
-          radius: 0.4,
-        });
-        drawPoint(offset2, {
-          color: isInsideState(...offset2) ? "blue" : "red",
-          radius: 0.4,
-        });
-      }
-
-      const inState =
-        isInsideState(x, y) &&
-        isInsideState(...offset1) &&
-        isInsideState(...offset2);
-      if (!inState) break;
-      ray = { length, x, y };
-    }
-
-    return ray;
-
-    function isInsideState(x: number, y: number): boolean {
-      if (x < 0 || x > graphWidth || y < 0 || y > graphHeight) return false;
-      const cellId = findClosestCell(x, y, undefined, pack) as number;
-
-      const feature = features[cells.f[cellId]];
-      if (feature.type === "lake")
-        return isInnerLake(feature) || isSmallLake(feature);
-
-      return stateIds[cellId] === stateId;
-    }
-
-    function isInnerLake(feature: { shoreline: number[] }): boolean {
-      return feature.shoreline.every((cellId) => stateIds[cellId] === stateId);
-    }
-
-    function isSmallLake(feature: { cells: number }): boolean {
-      return feature.cells <= maxLakeSize;
-    }
-  }
-
-  function findBestRayPair(rays: Ray[]): [Ray, Ray] {
-    let bestPair: [Ray, Ray] | null = null;
-    let bestScore = -Infinity;
-
-    for (let i = 0; i < rays.length; i++) {
-      const score1 = rays[i].length * scoreRayAngle(rays[i].angle);
-
-      for (let j = i + 1; j < rays.length; j++) {
-        const score2 = rays[j].length * scoreRayAngle(rays[j].angle);
-        const pairScore =
-          (score1 + score2) * scoreCurvature(rays[i].angle, rays[j].angle);
-
-        if (pairScore > bestScore) {
-          bestScore = pairScore;
-          bestPair = [rays[i], rays[j]];
-        }
-      }
-    }
-
-    return bestPair!;
-  }
-
-  function scoreRayAngle(angle: number): number {
-    const normalizedAngle = Math.abs(angle % 180); // [0, 180]
-    const horizontality = Math.abs(normalizedAngle - 90) / 90; // [0, 1]
-
-    if (horizontality === 1) return 1; // Best: horizontal
-    if (horizontality >= 0.75) return 0.9; // Very good: slightly slanted
-    if (horizontality >= 0.5) return 0.6; // Good: moderate slant
-    if (horizontality >= 0.25) return 0.5; // Acceptable: more slanted
-    if (horizontality >= 0.15) return 0.2; // Poor: almost vertical
-    return 0.1; // Very poor: almost vertical
-  }
-
-  function scoreCurvature(angle1: number, angle2: number): number {
-    const delta = getAngleDelta(angle1, angle2);
-    const similarity = evaluateArc(angle1, angle2);
-
-    if (delta === 180) return 1; // straight line: best
-    if (delta < 90) return 0; // acute: not allowed
-    if (delta < 120) return 0.6 * similarity;
-    if (delta < 140) return 0.7 * similarity;
-    if (delta < 160) return 0.8 * similarity;
-
-    return similarity;
-  }
-
-  function getAngleDelta(angle1: number, angle2: number): number {
-    let delta = Math.abs(angle1 - angle2) % 360;
-    if (delta > 180) delta = 360 - delta; // [0, 180]
-    return delta;
-  }
-
-  // compute arc similarity towards x-axis
-  function evaluateArc(angle1: number, angle2: number): number {
-    const proximity1 = Math.abs((angle1 % 180) - 90);
-    const proximity2 = Math.abs((angle2 % 180) - 90);
-    return 1 - Math.abs(proximity1 - proximity2) / 90;
-  }
-
   function getLinesAndRatio(
     mode: string,
     name: string,
diff --git a/src/renderers/label-raycast.ts b/src/renderers/label-raycast.ts
new file mode 100644
index 000000000..41b394142
--- /dev/null
+++ b/src/renderers/label-raycast.ts
@@ -0,0 +1,181 @@
+import { findClosestCell } from "../utils/graphUtils";
+
+export interface Ray {
+  angle: number;
+  length: number;
+  x: number;
+  y: number;
+}
+
+interface AngleData {
+  angle: number;
+  dx: number;
+  dy: number;
+}
+
+interface RaycastParams {
+  stateId: number;
+  x0: number;
+  y0: number;
+  dx: number;
+  dy: number;
+  maxLakeSize: number;
+  offset: number;
+}
+
+// increase step to 15 or 30 to make it faster and more horizontal
+// decrease step to 5 to improve accuracy
+const ANGLE_STEP = 9;
+export const ANGLES = precalculateAngles(ANGLE_STEP);
+
+const LENGTH_START = 5;
+const LENGTH_STEP = 5;
+const LENGTH_MAX = 300;
+
+/**
+ * Cast a ray from a point in a given direction until it exits a state.
+ * Checks both the ray point and offset points perpendicular to it.
+ */
+export function raycast({
+  stateId,
+  x0,
+  y0,
+  dx,
+  dy,
+  maxLakeSize,
+  offset,
+}: RaycastParams): { length: number; x: number; y: number } {
+  const { cells, features } = pack;
+  const stateIds = cells.state;
+  let ray = { length: 0, x: x0, y: y0 };
+
+  for (let length = LENGTH_START; length < LENGTH_MAX; length += LENGTH_STEP) {
+    const [x, y] = [x0 + length * dx, y0 + length * dy];
+    // offset points are perpendicular to the ray
+    const offset1: [number, number] = [x + -dy * offset, y + dx * offset];
+    const offset2: [number, number] = [x + dy * offset, y + -dx * offset];
+
+    const inState =
+      isInsideState(x, y, stateId) &&
+      isInsideState(...offset1, stateId) &&
+      isInsideState(...offset2, stateId);
+    if (!inState) break;
+    ray = { length, x, y };
+  }
+
+  return ray;
+
+  function isInsideState(x: number, y: number, stateId: number): boolean {
+    if (x < 0 || x > graphWidth || y < 0 || y > graphHeight) return false;
+    const cellId = findClosestCell(x, y, undefined, pack) as number;
+
+    const feature = features[cells.f[cellId]];
+    if (feature.type === "lake")
+      return isInnerLake(feature) || isSmallLake(feature);
+
+    return stateIds[cellId] === stateId;
+  }
+
+  function isInnerLake(feature: { shoreline: number[] }): boolean {
+    return feature.shoreline.every((cellId) => stateIds[cellId] === stateId);
+  }
+
+  function isSmallLake(feature: { cells: number }): boolean {
+    return feature.cells <= maxLakeSize;
+  }
+}
+
+/**
+ * Score a ray angle based on how horizontal it is.
+ * Horizontal rays (0° or 180°) are preferred for label placement.
+ */
+function scoreRayAngle(angle: number): number {
+  const normalizedAngle = Math.abs(angle % 180); // [0, 180]
+  const horizontality = Math.abs(normalizedAngle - 90) / 90; // [0, 1]
+
+  if (horizontality === 1) return 1; // Best: horizontal
+  if (horizontality >= 0.75) return 0.9; // Very good: slightly slanted
+  if (horizontality >= 0.5) return 0.6; // Good: moderate slant
+  if (horizontality >= 0.25) return 0.5; // Acceptable: more slanted
+  if (horizontality >= 0.15) return 0.2; // Poor: almost vertical
+  return 0.1; // Very poor: almost vertical
+}
+
+/**
+ * Calculate the angle delta between two angles (0-180 degrees).
+ */
+function getAngleDelta(angle1: number, angle2: number): number {
+  let delta = Math.abs(angle1 - angle2) % 360;
+  if (delta > 180) delta = 360 - delta; // [0, 180]
+  return delta;
+}
+
+/**
+ * Evaluate how similar the arc between two angles is.
+ * Computes proximity of both angles towards the x-axis.
+ */
+function evaluateArc(angle1: number, angle2: number): number {
+  const proximity1 = Math.abs((angle1 % 180) - 90);
+  const proximity2 = Math.abs((angle2 % 180) - 90);
+  return 1 - Math.abs(proximity1 - proximity2) / 90;
+}
+
+/**
+ * Score a ray pair based on the delta angle between them and their arc similarity.
+ * Penalizes acute angles (<90°), favors straight lines (180°).
+ */
+function scoreCurvature(angle1: number, angle2: number): number {
+  const delta = getAngleDelta(angle1, angle2);
+  const similarity = evaluateArc(angle1, angle2);
+
+  if (delta === 180) return 1; // straight line: best
+  if (delta < 90) return 0; // acute: not allowed
+  if (delta < 120) return 0.6 * similarity;
+  if (delta < 140) return 0.7 * similarity;
+  if (delta < 160) return 0.8 * similarity;
+
+  return similarity;
+}
+
+/**
+ * Precompute angles and their vector components for raycast directions.
+ * Used to sample rays around a point at regular angular intervals.
+ */
+function precalculateAngles(step: number): AngleData[] {
+  const angles: AngleData[] = [];
+  const RAD = Math.PI / 180;
+
+  for (let angle = 0; angle < 360; angle += step) {
+    const dx = Math.cos(angle * RAD);
+    const dy = Math.sin(angle * RAD);
+    angles.push({ angle, dx, dy });
+  }
+
+  return angles;
+}
+
+/**
+ * Find the best pair of rays for label placement along a curved path.
+ * Prefers horizontal rays and well-separated angles.
+ */
+export function findBestRayPair(rays: Ray[]): [Ray, Ray] {
+  let bestPair: [Ray, Ray] | null = null;
+  let bestScore = -Infinity;
+
+  for (let i = 0; i < rays.length; i++) {
+    const score1 = rays[i].length * scoreRayAngle(rays[i].angle);
+
+    for (let j = i + 1; j < rays.length; j++) {
+      const score2 = rays[j].length * scoreRayAngle(rays[j].angle);
+      const pairScore =
+        (score1 + score2) * scoreCurvature(rays[i].angle, rays[j].angle);
+
+      if (pairScore > bestScore) {
+        bestScore = pairScore;
+        bestPair = [rays[i], rays[j]];
+      }
+    }
+  }
+
+  return bestPair!;
+}
diff --git a/src/types/PackedGraph.ts b/src/types/PackedGraph.ts
index b8749f0a5..8c1fed100 100644
--- a/src/types/PackedGraph.ts
+++ b/src/types/PackedGraph.ts
@@ -1,6 +1,7 @@
 import type { Burg } from "../modules/burgs-generator";
 import type { Culture } from "../modules/cultures-generator";
 import type { PackedGraphFeature } from "../modules/features";
+import type { LabelData } from "../modules/labels";
 import type { Province } from "../modules/provinces-generator";
 import type { River } from "../modules/river-generator";
 import type { Route } from "../modules/routes-generator";
@@ -62,5 +63,6 @@ export interface PackedGraph {
   zones: Zone[];
   markers: any[];
   ice: any[];
+  labels: LabelData[];
   provinces: Province[];
 }