diff --git a/shell/view/home/FriendsGroup.py b/shell/view/home/FriendsGroup.py
index 1c2ea3a8..acf4f938 100644
--- a/shell/view/home/FriendsGroup.py
+++ b/shell/view/home/FriendsGroup.py
@@ -12,7 +12,7 @@ class FriendsGroup(goocanvas.Group):
 
 		self._shell = shell
 		self._menu_shell = menu_shell
-		self._icon_layout = IconLayout(1200, 900)
+		self._icon_layout = IconLayout(shell.get_grid())
 		self._friends = {}
 
 		me = MyIcon(112)
diff --git a/shell/view/home/IconLayout.py b/shell/view/home/IconLayout.py
index 1ec1816c..6df17080 100644
--- a/shell/view/home/IconLayout.py
+++ b/shell/view/home/IconLayout.py
@@ -1,10 +1,15 @@
 import random
+import math
 
 class IconLayout:
-	def __init__(self, width, height):
+	DISTANCE_THRESHOLD = 120.0
+
+	def __init__(self, grid):
 		self._icons = []
-		self._width = width
-		self._height = height
+		self._grid = grid
+
+		[self._x1, self._y1] = self._grid.convert_to_canvas(1, 1)
+		[self._x2, self._y2] = self._grid.convert_to_canvas(78, 59)
 
 	def add_icon(self, icon):
 		self._icons.append(icon)
@@ -13,22 +18,47 @@ class IconLayout:
 	def remove_icon(self, icon):
 		self._icons.remove(icon)
 
-	def _is_valid_position(self, icon, x, y):
-		icon_size = icon.get_property('size')
-		border = 20
+	def _distance(self, icon1, icon2):
+		a = icon2.props.x - icon1.props.x
+		b = icon2.props.y - icon1.props.y
+		return math.sqrt(a * a  + b * b)
 
-		if not (border < x < self._width - icon_size - border and \
-		        border < y < self._height - icon_size - border):
-			return False
-		
-		return True
+	def _spread_icons(self):
+		self._stable = True
+
+		for icon1 in self._icons:
+			vx = 0
+			vy = 0
+
+			for icon2 in self._icons:
+				if icon1 != icon2:
+					distance = self._distance(icon1, icon2)
+					if distance <= IconLayout.DISTANCE_THRESHOLD:
+						self._stable = False
+						vx += icon1.props.x - icon2.props.x
+						vy += icon1.props.y - icon2.props.y
+
+			new_x = icon1.props.x + vx
+			new_y = icon1.props.y + vy
+
+			new_x = max(self._x1, new_x)
+			new_y = max(self._y1, new_y)
+
+			new_x = min(self._x2 - icon1.props.size, new_x)
+			new_y = min(self._y2 - icon1.props.size, new_y)
+
+			icon1.props.x = new_x
+			icon1.props.y = new_y
 
 	def _layout_icon(self, icon):
-		while True:
-			x = random.random() * self._width
-			y = random.random() * self._height
-			if self._is_valid_position(icon, x, y):
-				break
+		x = random.random() * (self._x2 - self._x1 - icon.props.size) 
+		y = random.random() * (self._y2 - self._y1 - icon.props.size)
 
-		icon.set_property('x', x)
-		icon.set_property('y', y)
+		icon.props.x = x + self._x1
+		icon.props.y = y + self._y1
+
+		tries = 10
+		self._spread_icons()
+		while not self._stable and tries > 0:
+			self._spread_icons()
+			tries -= 1
diff --git a/shell/view/home/MeshGroup.py b/shell/view/home/MeshGroup.py
index fee9079b..4f523de1 100644
--- a/shell/view/home/MeshGroup.py
+++ b/shell/view/home/MeshGroup.py
@@ -37,7 +37,7 @@ class MeshGroup(goocanvas.Group):
 
 		self._shell = shell
 
-		self._icon_layout = IconLayout(1200, 900)
+		self._icon_layout = IconLayout(shell.get_grid())
 		self._activities = {}
 
 		self._pservice = PresenceService.get_instance()
diff --git a/sugar/canvas/Grid.py b/sugar/canvas/Grid.py
index 3d586dd8..70bafa38 100644
--- a/sugar/canvas/Grid.py
+++ b/sugar/canvas/Grid.py
@@ -31,6 +31,10 @@ class Grid:
 
 		return [grid_x, grid_y]
 
+	def convert_to_canvas(self, grid_x, grid_y):
+		scale = 1200 / Grid.COLS
+		return [grid_x * scale, grid_y * scale]
+
 	def set_constraints(self, component, x, y, width=-1, height=-1):
 		if isinstance(component, gtk.Window):
 			self._layout_window(component, x, y, width, height)
diff --git a/tests/test-icon-layout.py b/tests/test-icon-layout.py
index 30d7cad7..1e3a20b7 100755
--- a/tests/test-icon-layout.py
+++ b/tests/test-icon-layout.py
@@ -1,6 +1,7 @@
 #!/usr/bin/python
 import pygtk
 pygtk.require('2.0')
+import gobject
 
 from sugar.session.UITestSession import UITestSession
 
@@ -17,6 +18,18 @@ from view.home.IconLayout import IconLayout
 from sugar.canvas import IconColor
 from sugar.canvas.IconItem import IconItem
 from sugar.canvas.CanvasView import CanvasView
+from sugar.canvas.Grid import Grid
+
+def _create_icon():
+	color = IconColor.IconColor()
+
+	icon = IconItem(size=125, color=color,
+					icon_name='stock-buddy')
+	root.add_child(icon)
+
+	icon_layout.add_icon(icon)
+
+	return (root.get_n_children() < 20)
 
 window = gtk.Window()
 window.connect("destroy", lambda w: gtk.main_quit())
@@ -33,16 +46,9 @@ item = goocanvas.Rect(x=0, y=0, width=1200, height=900,
                       line_width=0.0, fill_color='#e2e2e2')
 root.add_child(item)
 
-icon_layout = IconLayout(1200, 900)
+icon_layout = IconLayout(Grid())
 
-for i in range(0, 20):
-	color = IconColor.IconColor()
-
-	icon = IconItem(size=75, color=color,
-					icon_name='stock-buddy')
-	root.add_child(icon)
-
-	icon_layout.add_icon(icon)
+gobject.timeout_add(500, _create_icon)
 
 canvas.set_model(canvas_model)