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/analyzer/src/traversal/expressions.rs b/crates/analyzer/src/traversal/expressions.rs
index d1e9e49f03..d5edbae6cc 100644
--- a/crates/analyzer/src/traversal/expressions.rs
+++ b/crates/analyzer/src/traversal/expressions.rs
@@ -1381,7 +1381,7 @@ fn expr_call_pure(
 
     if function.is_test(context.db()) {
         context.fancy_error(
-            &format!("`{}` is a test function", fn_name),
+            &format!("`{fn_name}` is a test function"),
             vec![Label::primary(call_span, "test functions are not callable")],
             vec![],
         );
diff --git a/crates/fe/src/task/test.rs b/crates/fe/src/task/test.rs
index 0342321133..d35ac88d38 100644
--- a/crates/fe/src/task/test.rs
+++ b/crates/fe/src/task/test.rs
@@ -26,7 +26,7 @@ pub fn test(args: TestArgs) {
         test_ingot(&args)
     };
 
-    println!("{}", test_sink);
+    println!("{test_sink}");
     if test_sink.failure_count() != 0 {
         std::process::exit(1)
     }
@@ -38,7 +38,7 @@ fn test_single_file(args: &TestArgs) -> TestSink {
     let mut db = fe_driver::Db::default();
     let content = match std::fs::read_to_string(input_path) {
         Err(err) => {
-            eprintln!("Failed to load file: `{}`. Error: {}", input_path, err);
+            eprintln!("Failed to load file: `{input_path}`. Error: {err}");
             std::process::exit(1)
         }
         Ok(content) => content,
@@ -51,7 +51,7 @@ fn test_single_file(args: &TestArgs) -> TestSink {
             sink
         }
         Err(error) => {
-            eprintln!("Unable to compile {}.", input_path);
+            eprintln!("Unable to compile {input_path}.");
             print_diagnostics(&db, &error.0);
             std::process::exit(1)
         }
@@ -60,7 +60,7 @@ fn test_single_file(args: &TestArgs) -> TestSink {
 
 pub fn execute_tests(module_name: &str, tests: &[CompiledTest], sink: &mut TestSink) {
     if tests.len() == 1 {
-        println!("executing 1 test in {}:", module_name);
+        println!("executing 1 test in {module_name}:");
     } else {
         println!("executing {} tests in {}:", tests.len(), module_name);
     }
@@ -83,18 +83,18 @@ fn test_ingot(args: &TestArgs) -> TestSink {
     let optimize = args.optimize.unwrap_or(true);
 
     if !Path::new(input_path).exists() {
-        eprintln!("Input directory does not exist: `{}`.", input_path);
+        eprintln!("Input directory does not exist: `{input_path}`.");
         std::process::exit(1)
     }
 
     let content = match load_files_from_dir(input_path) {
         Ok(files) if files.is_empty() => {
-            eprintln!("Input directory is not an ingot: `{}`", input_path);
+            eprintln!("Input directory is not an ingot: `{input_path}`");
             std::process::exit(1)
         }
         Ok(files) => files,
         Err(err) => {
-            eprintln!("Failed to load project files. Error: {}", err);
+            eprintln!("Failed to load project files. Error: {err}");
             std::process::exit(1)
         }
     };
@@ -110,7 +110,7 @@ fn test_ingot(args: &TestArgs) -> TestSink {
             sink
         }
         Err(error) => {
-            eprintln!("Unable to compile {}.", input_path);
+            eprintln!("Unable to compile {input_path}.");
             print_diagnostics(&db, &error.0);
             std::process::exit(1)
         }
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/test-runner/src/lib.rs b/crates/test-runner/src/lib.rs
index ed6a8661f5..c7d423d048 100644
--- a/crates/test-runner/src/lib.rs
+++ b/crates/test-runner/src/lib.rs
@@ -48,9 +48,9 @@ impl Display for TestSink {
 
         let test_description = |n: usize, status: &dyn Display| -> String {
             if n == 1 {
-                format!("1 test {}", status)
+                format!("1 test {status}")
             } else {
-                format!("{} tests {}", n, status)
+                format!("{n} tests {status}")
             }
         };
 
@@ -85,7 +85,7 @@ pub fn execute(name: &str, bytecode: &str, sink: &mut TestSink) -> bool {
     if reverted {
         sink.inc_success_count();
     } else {
-        sink.insert_failure(name, &format!("{:?}", result));
+        sink.insert_failure(name, &format!("{result:?}"));
     };
 
     reverted
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.