diff --git a/crates/analyzer/src/namespace/items.rs b/crates/analyzer/src/namespace/items.rs
index 8126314902..779c719664 100644
--- a/crates/analyzer/src/namespace/items.rs
+++ b/crates/analyzer/src/namespace/items.rs
@@ -1789,12 +1789,14 @@ impl ImplId {
         &self,
         db: &dyn AnalyzerDb,
         sink: &mut impl DiagnosticSink,
-        type_module: Option<ModuleId>,
+        type_ingot: Option<IngotId>,
     ) {
-        let impl_module = self.data(db).module;
-        let is_allowed = match type_module {
-            None => impl_module == self.data(db).trait_id.module(db),
-            Some(val) => val == impl_module || self.data(db).trait_id.module(db) == impl_module,
+        let impl_ingot = self.data(db).module.ingot(db);
+        let is_allowed = match type_ingot {
+            None => impl_ingot == self.data(db).trait_id.module(db).ingot(db),
+            Some(val) => {
+                val == impl_ingot || self.data(db).trait_id.module(db).ingot(db) == impl_ingot
+            }
         };
 
         if !is_allowed {
@@ -1831,10 +1833,10 @@ impl ImplId {
                 vec![],
             )),
             Type::Struct(id) => {
-                self.validate_type_or_trait_is_in_ingot(db, sink, Some(id.module(db)))
+                self.validate_type_or_trait_is_in_ingot(db, sink, Some(id.module(db).ingot(db)))
             }
             Type::Enum(id) => {
-                self.validate_type_or_trait_is_in_ingot(db, sink, Some(id.module(db)))
+                self.validate_type_or_trait_is_in_ingot(db, sink, Some(id.module(db).ingot(db)))
             }
             Type::Base(_) | Type::Array(_) | Type::Tuple(_) | Type::String(_) => {
                 self.validate_type_or_trait_is_in_ingot(db, sink, None)
diff --git a/crates/test-files/fixtures/ingots/trait_ingot_check/src/foo.fe b/crates/test-files/fixtures/ingots/trait_ingot_check/src/foo.fe
new file mode 100644
index 0000000000..60294b19f3
--- /dev/null
+++ b/crates/test-files/fixtures/ingots/trait_ingot_check/src/foo.fe
@@ -0,0 +1,9 @@
+pub struct MyS {
+    fn x() -> u256 {
+        return 10
+    }
+}
+
+pub trait Trait {
+    fn x() -> u256;
+}
\ No newline at end of file
diff --git a/crates/test-files/fixtures/ingots/trait_ingot_check/src/main.fe b/crates/test-files/fixtures/ingots/trait_ingot_check/src/main.fe
new file mode 100644
index 0000000000..965a80c9f1
--- /dev/null
+++ b/crates/test-files/fixtures/ingots/trait_ingot_check/src/main.fe
@@ -0,0 +1,13 @@
+use foo::{MyS, Trait}
+
+impl Trait for MyS {
+    fn x() -> u256 {
+        return 10
+    }
+}
+
+contract Foo {
+    pub fn main() -> u256 {
+        return MyS::x()
+    }
+}
diff --git a/crates/tests-legacy/src/ingots.rs b/crates/tests-legacy/src/ingots.rs
index aa628fcc45..99dfe80d58 100644
--- a/crates/tests-legacy/src/ingots.rs
+++ b/crates/tests-legacy/src/ingots.rs
@@ -30,6 +30,13 @@ fn test_trait_no_ambiguity() {
     })
 }
 
+#[test]
+fn test_trait_ingot_check() {
+    with_executor(&|mut executor| {
+        let _harness = deploy_ingot(&mut executor, "trait_ingot_check", "Foo", &[]);
+    })
+}
+
 #[test]
 fn test_ingot_pub_contract() {
     with_executor(&|mut executor| {
diff --git a/newsfragments/863.feature.md b/newsfragments/863.feature.md
new file mode 100644
index 0000000000..3d02725a7f
--- /dev/null
+++ b/newsfragments/863.feature.md
@@ -0,0 +1,8 @@
+Fixed broken trait orphan rule
+
+Fe has an orphan rule for Traits similar to Rust's that requires
+that either the trait or the type that we are implementing the trait for
+are located in the same ingot as the `impl`. This rule was implemented
+incorrectly so that instead of requiring them to be in the same ingot,
+they were required to be in the same module. This change fixes this
+so that the orphan rule is enforced correctly.