diff --git a/backend/app/api/suggestions.py b/backend/app/api/suggestions.py
index cf27125..28df98e 100644
--- a/backend/app/api/suggestions.py
+++ b/backend/app/api/suggestions.py
@@ -46,6 +46,10 @@ async def get_suggestions(image_id: int):
                         # (not dropped) so the rail can show it rejected + offer
                         # one-click un-reject.
                         "rejected": s.rejected,
+                        # the crop region that produced this tag (#1206) —
+                        # {bbox,kind,detector} or null (whole-image won). Drives
+                        # the hover→overlay highlight.
+                        "grounding": s.grounding,
                     }
                     for s in items
                 ]
diff --git a/backend/app/api/tags.py b/backend/app/api/tags.py
index ed156c8..50539cd 100644
--- a/backend/app/api/tags.py
+++ b/backend/app/api/tags.py
@@ -11,6 +11,7 @@ from ..models.tag import image_tag
 from ..models.tag_suggestion_rejection import TagSuggestionRejection
 from ..services.bulk_tag_service import BulkTagService
 from ..services.ml.aliases import AliasService
+from ..services.ml.heads import ground_applied_tag
 from ..services.series_match_service import SeriesMatchService
 from ..services.series_service import SeriesError, SeriesService
 from ..services.tag_directory_service import TagDirectoryService
@@ -310,6 +311,21 @@ async def confirm_tag_on_image(image_id: int, tag_id: int):
     return "", 204
 
 
+@tags_bp.route(
+    "/images/<int:image_id>/tags/<int:tag_id>/grounding", methods=["GET"]
+)
+async def tag_grounding(image_id: int, tag_id: int):
+    """Which crop region best explains an ALREADY-APPLIED tag on this image
+    (#1206 Step 4). Powers the hover→overlay highlight on applied tag chips,
+    mirroring the suggestion rail's live grounding. Computed on demand (applied
+    tags aren't scored live). → {grounding: {bbox,kind,detector}|null,
+    has_head: bool}; has_head False means the tag has no head to localize with,
+    so the chip shows no overlay."""
+    async with get_session() as session:
+        grounding, has_head = await ground_applied_tag(session, image_id, tag_id)
+    return jsonify({"grounding": grounding, "has_head": has_head})
+
+
 @tags_bp.route("/tags/<int:tag_id>", methods=["GET"])
 async def get_tag(tag_id: int):
     """Resolve a single tag (used by the gallery to label its active
diff --git a/backend/app/services/ml/ccip.py b/backend/app/services/ml/ccip.py
index 8c98edd..0a30def 100644
--- a/backend/app/services/ml/ccip.py
+++ b/backend/app/services/ml/ccip.py
@@ -161,16 +161,22 @@ async def match_image(
     if threshold is None:
         threshold = await _settings_threshold(session)
 
-    qvecs = (
+    # Keep each figure region's bbox alongside its vector so a match can point at
+    # the figure that matched (#1206 grounding), not just the score.
+    fig_rows = (
         await session.execute(
-            select(ImageRegion.ccip_embedding).where(
+            select(
+                ImageRegion.ccip_embedding,
+                ImageRegion.rx, ImageRegion.ry, ImageRegion.rw, ImageRegion.rh,
+                ImageRegion.kind, ImageRegion.detector_version,
+            ).where(
                 ImageRegion.image_record_id == image_id,
                 ImageRegion.kind.in_(_FIGURE_KINDS),
                 ImageRegion.ccip_embedding.is_not(None),
             )
         )
-    ).scalars().all()
-    if not qvecs:
+    ).all()
+    if not fig_rows:
         return []
     refs = await character_references(session)
     if not refs:
@@ -186,13 +192,21 @@ async def match_image(
     )
     names = await _tag_names(session, [t for t in refs if t not in applied])
 
+    qvecs = [r[0] for r in fig_rows]
+    fig_meta = [
+        {"bbox": [rx, ry, rw, rh], "kind": kind, "detector": detector}
+        for _v, rx, ry, rw, rh, kind, detector in fig_rows
+    ]
     Q = _l2norm(np.vstack([np.asarray(v, dtype=np.float32) for v in qvecs]), np)
     out = []
     for tag_id, vecs in refs.items():
         if tag_id in applied:
             continue
         R = _l2norm(np.vstack([np.asarray(v, dtype=np.float32) for v in vecs]), np)
-        best = float((Q @ R.T).max())   # best (query figure, reference) cosine
+        sims = Q @ R.T                       # (n_query_figures, n_references)
+        per_figure = sims.max(axis=1)        # best reference cosine per figure
+        best_figure = int(per_figure.argmax())
+        best = float(per_figure[best_figure])
         if best >= threshold:
             out.append({
                 "tag_id": tag_id,
@@ -200,6 +214,8 @@ async def match_image(
                 "category": "character",
                 "score": round(best, 4),
                 "source": "ccip",
+                # the figure region that matched → grounds the character tag.
+                "grounding": fig_meta[best_figure],
             })
     out.sort(key=lambda d: d["score"], reverse=True)
     return out
diff --git a/backend/app/services/ml/heads.py b/backend/app/services/ml/heads.py
index 1f4d01a..bb18c25 100644
--- a/backend/app/services/ml/heads.py
+++ b/backend/app/services/ml/heads.py
@@ -341,6 +341,53 @@ async def _current_heads(session: AsyncSession, embedding_version: str):
     return loaded
 
 
+async def _image_bag(
+    session: AsyncSession, image_id: int, cur_version: str,
+) -> tuple[list, list[dict | None]]:
+    """The max-over-bag inputs for one image: the whole-image SigLIP vector (when
+    it's in the current model's space) PLUS every concept-region crop embedded in
+    that space. Returns (bag, bag_meta) as PARALLEL lists — bag_meta[i] is None for
+    the whole-image row, else the region's {bbox, kind, detector} so a surfaced tag
+    can point back at the crop that produced it (#1206 grounding).
+
+    Only current-version embeddings enter the bag: mid model-swap (#1190) an image
+    still carrying an OLD-version whole-image vector is skipped rather than scored
+    by heads trained in a different space; a legacy NULL version is treated as
+    current (those predate per-row stamping). Shared by live scoring (score_image)
+    and on-demand applied-tag grounding (ground_applied_tag, #1206 Step 4)."""
+    import numpy as np
+
+    img = await session.get(ImageRecord, image_id)
+    bag: list = []
+    bag_meta: list[dict | None] = []
+    if img is None:
+        return bag, bag_meta
+    if img.siglip_embedding is not None and img.siglip_model_version in (
+        cur_version, None,
+    ):
+        bag.append(np.asarray(img.siglip_embedding, dtype=np.float32))
+        bag_meta.append(None)
+    region_rows = (
+        await session.execute(
+            select(
+                ImageRegion.siglip_embedding,
+                ImageRegion.rx, ImageRegion.ry, ImageRegion.rw, ImageRegion.rh,
+                ImageRegion.kind, ImageRegion.detector_version,
+            )
+            .where(ImageRegion.image_record_id == image_id)
+            .where(ImageRegion.siglip_embedding.is_not(None))
+            .where(ImageRegion.embedding_version == cur_version)
+        )
+    ).all()
+    for vec, rx, ry, rw, rh, kind, detector in region_rows:
+        if vec is not None:
+            bag.append(np.asarray(vec, dtype=np.float32))
+            bag_meta.append(
+                {"bbox": [rx, ry, rw, rh], "kind": kind, "detector": detector}
+            )
+    return bag, bag_meta
+
+
 async def score_image(
     session: AsyncSession, image_id: int, threshold_override: float | None = None,
 ) -> list[dict]:
@@ -361,35 +408,12 @@ async def score_image(
     always in the bag, so this can never score lower than whole-image alone."""
     import numpy as np
 
-    img = await session.get(ImageRecord, image_id)
-    if img is None:
-        return []
     settings = await _settings_async(session)
     cur_version = settings.embedder_model_version
     heads = await _current_heads(session, cur_version)
     if heads["W"] is None:
         return []
-
-    # Only embeddings in the CURRENT model's space enter the bag. Mid model-swap
-    # (#1190), an image still carrying the OLD-version whole-image vector is
-    # skipped rather than scored by heads trained in a different space; a legacy
-    # NULL version is treated as current (those predate per-row stamping).
-    bag = []
-    if img.siglip_embedding is not None and img.siglip_model_version in (
-        cur_version, None,
-    ):
-        bag.append(np.asarray(img.siglip_embedding, dtype=np.float32))
-    region_vecs = (
-        await session.execute(
-            select(ImageRegion.siglip_embedding)
-            .where(ImageRegion.image_record_id == image_id)
-            .where(ImageRegion.siglip_embedding.is_not(None))
-            .where(ImageRegion.embedding_version == cur_version)
-        )
-    ).all()
-    for (vec,) in region_vecs:
-        if vec is not None:
-            bag.append(np.asarray(vec, dtype=np.float32))
+    bag, bag_meta = await _image_bag(session, image_id, cur_version)
     if not bag:
         return []
 
@@ -398,7 +422,11 @@ async def score_image(
     norms[norms == 0] = 1.0
     Xn = X / norms
     Z = Xn @ heads["W"].T + heads["b"]                  # (B, H)
-    probs = (1.0 / (1.0 + np.exp(-Z))).max(axis=0)      # (H,) best over the bag
+    probs_bag = 1.0 / (1.0 + np.exp(-Z))                # (B, H)
+    probs = probs_bag.max(axis=0)                       # (H,) best over the bag
+    # ARGMAX beside the max: WHICH bag row won each head → the region that grounds
+    # the tag (bag_meta[win]); None when the whole-image vector won (#1206).
+    winners = probs_bag.argmax(axis=0)                  # (H,)
     out = []
     for i, p in enumerate(probs):
         if threshold_override is not None:
@@ -416,11 +444,57 @@ async def score_image(
                 "name": m["name"],
                 "category": m["category"],
                 "score": float(p),
+                "grounding": bag_meta[int(winners[i])],
             })
     out.sort(key=lambda d: d["score"], reverse=True)
     return out
 
 
+async def ground_applied_tag(
+    session: AsyncSession, image_id: int, tag_id: int,
+) -> tuple[dict | None, bool]:
+    """On-demand grounding for an ALREADY-APPLIED tag (#1206 Step 4). Applied tags
+    aren't scored live, so recompute the max-over-bag argmax for just this tag's
+    head — which crop region best explains the tag on this image — mirroring what
+    score_image records for live suggestions. Returns (grounding, has_head):
+
+    - has_head False → the tag has no head in the current embedding space (manual/
+      artist/meta tags, or a concept below the head floor). Nothing to localize
+      with, so the UI shows no overlay (distinct from "the whole image won").
+    - grounding None (has_head True) → the whole-image vector best explains it,
+      not any crop; the UI shows the subtle whole-image frame.
+    - grounding {bbox, kind, detector} → the winning region.
+
+    Character heads are covered too (character is a head kind); this deliberately
+    reuses the SigLIP head bag rather than the CCIP figure path so every applied
+    concept grounds through one consistent mechanism."""
+    import numpy as np
+
+    cur_version = (await _settings_async(session)).embedder_model_version
+    row = (
+        await session.execute(
+            select(TagHead.weights, TagHead.bias).where(
+                TagHead.tag_id == tag_id,
+                TagHead.embedding_version == cur_version,
+            )
+        )
+    ).one_or_none()
+    if row is None:
+        return None, False
+    bag, bag_meta = await _image_bag(session, image_id, cur_version)
+    if not bag:
+        return None, True
+
+    X = np.vstack(bag)
+    norms = np.linalg.norm(X, axis=1, keepdims=True)
+    norms[norms == 0] = 1.0
+    Xn = X / norms
+    # The sigmoid is monotonic in the logit, so the highest-probability bag row is
+    # just argmax of the raw score — no need to exponentiate to pick the winner.
+    z = Xn @ np.asarray(row.weights, dtype=np.float32) + float(row.bias)   # (B,)
+    return bag_meta[int(z.argmax())], True
+
+
 async def _settings_async(session: AsyncSession) -> MLSettings:
     return (
         await session.execute(select(MLSettings).where(MLSettings.id == 1))
diff --git a/backend/app/services/ml/suggestions.py b/backend/app/services/ml/suggestions.py
index 71fbd24..eba40ad 100644
--- a/backend/app/services/ml/suggestions.py
+++ b/backend/app/services/ml/suggestions.py
@@ -43,6 +43,11 @@ class Suggestion:
     # the rejection is VISIBLE and REVERSIBLE in the rail (misclick recovery,
     # operator-asked 2026-06-27) instead of silently vanishing or re-suggesting.
     rejected: bool = False
+    # grounding = the crop region that produced this suggestion (#1206):
+    # {bbox:[x,y,w,h] normalized, kind, detector}. None when the whole-image
+    # vector won (not localized) or for a CCIP-only hit (figure grounding TBD).
+    # Lets the rail highlight the exact region on hover.
+    grounding: dict | None = None
 
 
 @dataclass
@@ -103,6 +108,7 @@ class SuggestionService:
         for h in hits:
             merged[(h["category"], h["tag_id"])] = {
                 "name": h["name"], "score": h["score"], "source": "head",
+                "grounding": h.get("grounding"),
             }
         for c in ccip_hits:
             key = ("character", c["tag_id"])
@@ -110,9 +116,13 @@ class SuggestionService:
             if ex is not None:
                 ex["source"] = "both"
                 ex["score"] = max(ex["score"], c["score"])
+                # Keep the head's localized crop if it had one; else fall back to
+                # the CCIP figure so a corroborated character still grounds (#1206).
+                ex["grounding"] = ex.get("grounding") or c.get("grounding")
             else:
                 merged[key] = {
                     "name": c["name"], "score": c["score"], "source": "ccip",
+                    "grounding": c.get("grounding"),
                 }
 
         result = SuggestionList()
@@ -128,6 +138,7 @@ class SuggestionService:
                     source=m["source"],
                     creates_new_tag=False,
                     rejected=tag_id in rejected,
+                    grounding=m.get("grounding"),
                 )
             )
         for cat in result.by_category:
diff --git a/frontend/src/components/modal/ImageCanvas.vue b/frontend/src/components/modal/ImageCanvas.vue
index a4a4163..efe2e52 100644
--- a/frontend/src/components/modal/ImageCanvas.vue
+++ b/frontend/src/components/modal/ImageCanvas.vue
@@ -16,20 +16,91 @@
         transform: `translate(${panZoom.state.x}px, ${panZoom.state.y}px) scale(${panZoom.state.scale})`
       }"
       draggable="false"
+      @load="onImgLoad"
     >
+    <!-- #1206 grounding overlay: tracks the <img>'s live rendered rect (so it's
+         correct under object-fit letterboxing + pan/zoom) and draws the crop
+         region a hovered suggestion came from. Null grounding → a subtle
+         whole-image frame ("the global vector won, not a crop"). -->
+    <div
+      v-if="hover && overlayBox"
+      class="fc-canvas__overlay"
+      :style="{
+        left: overlayBox.left + 'px', top: overlayBox.top + 'px',
+        width: overlayBox.width + 'px', height: overlayBox.height + 'px',
+      }"
+    >
+      <div
+        class="fc-canvas__region"
+        :class="{ 'fc-canvas__region--whole': !regionStyle }"
+        :style="regionStyle || {}"
+      >
+        <span class="fc-canvas__region-label">{{ regionLabel }}</span>
+      </div>
+    </div>
   </div>
 </template>
 
 <script setup>
-import { ref, watch } from 'vue'
+import { computed, nextTick, onMounted, onUnmounted, ref, watch } from 'vue'
 import { usePanZoom } from '../../composables/usePanZoom.js'
 
-const props = defineProps({ src: String, alt: String })
+const props = defineProps({
+  src: String,
+  alt: String,
+  // Hovered-suggestion grounding, or null when nothing is hovered:
+  //   null                        → no overlay
+  //   { g: {bbox,kind,detector} } → highlight that crop region
+  //   { g: null }                 → whole-image frame (not localized)
+  hover: { type: Object, default: null },
+})
 const emit = defineEmits(['close-request'])
 const panZoom = usePanZoom()
 
 const canvasEl = ref(null)
 const imgEl = ref(null)
+const overlayBox = ref(null)   // the <img>'s rect relative to the canvas
+
+// The <img> renders aspect-fit + transformed, so its getBoundingClientRect is
+// the ground truth for where the picture actually is. Position the overlay to
+// match it, then place the region as a % within.
+function measure () {
+  const img = imgEl.value
+  const canvas = canvasEl.value
+  if (!img || !canvas) { overlayBox.value = null; return }
+  const ir = img.getBoundingClientRect()
+  const cr = canvas.getBoundingClientRect()
+  if (!ir.width || !ir.height) { overlayBox.value = null; return }
+  overlayBox.value = {
+    left: ir.left - cr.left, top: ir.top - cr.top,
+    width: ir.width, height: ir.height,
+  }
+}
+
+const regionStyle = computed(() => {
+  const g = props.hover?.g
+  if (!g || !Array.isArray(g.bbox)) return null   // null grounding → whole frame
+  const [rx, ry, rw, rh] = g.bbox
+  return {
+    left: `${rx * 100}%`, top: `${ry * 100}%`,
+    width: `${rw * 100}%`, height: `${rh * 100}%`,
+  }
+})
+const regionLabel = computed(() => {
+  const g = props.hover?.g
+  return g ? (g.detector || g.kind || 'region') : 'whole image'
+})
+
+// Re-measure whenever hovering starts or the image could have moved.
+watch(() => props.hover, (h) => { if (h) nextTick(measure) })
+watch(
+  () => [panZoom.state.scale, panZoom.state.x, panZoom.state.y],
+  () => { if (props.hover) measure() },
+)
+function onResize () { if (props.hover) measure() }
+function onImgLoad () { if (props.hover) measure() }
+onMounted(() => window.addEventListener('resize', onResize))
+onUnmounted(() => window.removeEventListener('resize', onResize))
 
 // Reset zoom when the src changes (prev/next nav).
 watch(() => props.src, () => panZoom.reset())
@@ -79,4 +150,42 @@ function onCanvasClick(ev) {
   transition: transform 100ms ease-out;
   pointer-events: none;
 }
+
+/* Grounding overlay — never intercepts pan/zoom/click. */
+.fc-canvas__overlay {
+  position: absolute;
+  pointer-events: none;
+  z-index: 2;
+}
+.fc-canvas__region {
+  position: absolute;
+  border: 2px solid rgb(var(--v-theme-accent));
+  border-radius: 3px;
+  box-shadow: 0 0 0 9999px rgba(0, 0, 0, 0.28);   /* dim everything outside it */
+  transition: all 90ms ease-out;
+}
+/* Null grounding: a subtle full-image frame, no dimming — it says "this tag
+   came from the whole image, not a crop." */
+.fc-canvas__region--whole {
+  inset: 0;
+  border-style: dashed;
+  border-color: rgb(var(--v-theme-on-surface-variant));
+  box-shadow: none;
+}
+.fc-canvas__region-label {
+  position: absolute;
+  top: 0; left: 0;
+  transform: translateY(-100%);
+  font-size: 11px;
+  font-family: 'JetBrains Mono', monospace;
+  line-height: 1.4;
+  padding: 1px 6px;
+  white-space: nowrap;
+  background: rgb(var(--v-theme-accent));
+  color: rgb(var(--v-theme-on-surface));
+  border-radius: 3px 3px 0 0;
+}
+.fc-canvas__region--whole .fc-canvas__region-label {
+  background: rgb(var(--v-theme-on-surface-variant));
+}
 </style>
diff --git a/frontend/src/components/modal/ImageViewer.vue b/frontend/src/components/modal/ImageViewer.vue
index f8dd82d..1ff8d69 100644
--- a/frontend/src/components/modal/ImageViewer.vue
+++ b/frontend/src/components/modal/ImageViewer.vue
@@ -60,6 +60,7 @@
           <template v-if="modal.current">
             <ImageCanvas
               v-if="!isVideo" :src="modal.current.image_url" :alt="`Image ${modal.current.id}`"
+              :hover="hoverGrounding"
               @close-request="$emit('close')"
             />
             <VideoCanvas
@@ -94,7 +95,7 @@
 </template>
 
 <script setup>
-import { computed, onMounted, onUnmounted, ref, watch } from 'vue'
+import { computed, onMounted, onUnmounted, provide, ref, watch } from 'vue'
 import { useModalStore } from '../../stores/modal.js'
 import { arrowNavAllowed, isTextEntry } from '../../utils/textEntry.js'
 import ImageCanvas from './ImageCanvas.vue'
@@ -110,6 +111,13 @@ const modal = useModalStore()
 const rootEl = ref(null)
 const showHelp = ref(false)
 
+// #1206: a deep descendant (SuggestionItem) sets this on hover to the crop that
+// produced a suggestion; ImageCanvas draws it over the image. provide/inject
+// avoids relaying a hover event through TagPanel → SuggestionsPanel → group.
+// null = nothing hovered; { g: grounding|null } = hovering (g null → whole-image).
+const hoverGrounding = ref(null)
+provide('fcSuggestionHover', hoverGrounding)
+
 const isVideo = computed(() =>
   modal.current?.mime && modal.current.mime.startsWith('video/')
 )
diff --git a/frontend/src/components/modal/SuggestionItem.vue b/frontend/src/components/modal/SuggestionItem.vue
index e0e196d..4d00b70 100644
--- a/frontend/src/components/modal/SuggestionItem.vue
+++ b/frontend/src/components/modal/SuggestionItem.vue
@@ -3,7 +3,10 @@
        name, score, and action buttons as one "object" (operator-asked
        2026-06-01). The row itself is informational; the green ✓ / red ✗
        verdict pair + 3-dot alias menu are the action affordances. -->
-  <div class="fc-suggestion" :class="{ 'fc-suggestion--rejected': suggestion.rejected }">
+  <div
+    class="fc-suggestion" :class="{ 'fc-suggestion--rejected': suggestion.rejected }"
+    @mouseenter="onEnter" @mouseleave="onLeave"
+  >
     <span class="fc-suggestion__name">
       {{ suggestion.display_name }}
       <span v-if="suggestion.rejected" class="fc-suggestion__rejected-tag"
@@ -72,12 +75,22 @@
 </template>
 
 <script setup>
-import { computed } from 'vue'
+import { computed, inject } from 'vue'
 import KebabMenu from '../common/KebabMenu.vue'
 
 const props = defineProps({ suggestion: { type: Object, required: true } })
 defineEmits(['accept', 'alias', 'remove-alias', 'dismiss', 'undismiss'])
 
+// #1206: on hover, tell the image viewer which crop produced this suggestion so
+// it highlights that region. Provided by ImageViewer/Explore; a no-op elsewhere.
+const hover = inject('fcSuggestionHover', null)
+function onEnter () {
+  if (hover) hover.value = { g: props.suggestion.grounding ?? null }
+}
+function onLeave () {
+  if (hover) hover.value = null
+}
+
 const scorePct = computed(() => `${Math.round(props.suggestion.score * 100)}%`)
 // Kebab now only carries alias actions: show it when this suggestion can be
 // aliased (raw model key, not yet aliased) or is already aliased (so it can be
diff --git a/frontend/src/components/modal/TagChip.vue b/frontend/src/components/modal/TagChip.vue
index dfe0ee6..bcb1cdf 100644
--- a/frontend/src/components/modal/TagChip.vue
+++ b/frontend/src/components/modal/TagChip.vue
@@ -1,5 +1,5 @@
 <template>
-  <span class="fc-tag-chip">
+  <span class="fc-tag-chip" @mouseenter="onEnter" @mouseleave="onLeave">
     <v-chip
       size="small" closable
       :color="store.colorFor(tag.kind)" variant="tonal"
@@ -38,14 +38,57 @@
 </template>
 
 <script setup>
-import { computed } from 'vue'
+import { computed, inject } from 'vue'
 import { useTagStore } from '../../stores/tags.js'
+import { useApi } from '../../composables/useApi.js'
 import KebabMenu from '../common/KebabMenu.vue'
 
-const props = defineProps({ tag: { type: Object, required: true } })
+const props = defineProps({
+  tag: { type: Object, required: true },
+  // When set (the tagging panels), hovering the chip asks the backend which crop
+  // region best explains this applied tag and lights it up on the image — the
+  // same overlay the suggestion rail uses (#1206 Step 4). Omitted elsewhere →
+  // the hover is inert (no injected target, or no image to ground against).
+  imageId: { type: Number, default: null },
+})
 defineEmits(['remove', 'rename', 'set-fandom', 'navigate'])
 
 const store = useTagStore()
+const api = useApi()
+
+// #1206 Step 4: applied-tag grounding. `fcSuggestionHover` is provided by the
+// image viewer / Explore host (a no-op elsewhere). Applied tags aren't scored
+// live, so we fetch the winning region on demand and cache it per (image, tag).
+const hover = inject('fcSuggestionHover', null)
+const _groundingCache = new Map()
+// Bumped on every enter/leave so a slow fetch that resolves after the pointer
+// has moved on can't draw a stale overlay.
+let hoverSeq = 0
+
+async function onEnter () {
+  if (!hover || props.imageId == null) return
+  const seq = ++hoverSeq
+  const key = `${props.imageId}:${props.tag.id}`
+  let res = _groundingCache.get(key)
+  if (res === undefined) {
+    try {
+      res = await api.get(
+        `/api/images/${props.imageId}/tags/${props.tag.id}/grounding`
+      )
+      _groundingCache.set(key, res)
+    } catch {
+      return   // best-effort — leave the overlay untouched on error
+    }
+  }
+  if (seq !== hoverSeq) return   // pointer already left / moved to another chip
+  // No head → nothing to localize; don't draw an overlay at all. With a head,
+  // null grounding still draws the whole-image frame ("the global vector won").
+  if (res.has_head) hover.value = { g: res.grounding ?? null }
+}
+function onLeave () {
+  hoverSeq++
+  if (hover) hover.value = null
+}
 
 // Show a character's fandom inline (truncated). Falls back to a bare arrow when
 // only fandom_id is known but the name wasn't resolved (older payloads).
diff --git a/frontend/src/components/modal/TagPanel.vue b/frontend/src/components/modal/TagPanel.vue
index 39487c5..e4e7a35 100644
--- a/frontend/src/components/modal/TagPanel.vue
+++ b/frontend/src/components/modal/TagPanel.vue
@@ -4,7 +4,7 @@
     <div class="fc-tag-panel__chips">
       <TagChip
         v-for="tag in host.current?.tags || []"
-        :key="tag.id" :tag="tag"
+        :key="tag.id" :tag="tag" :image-id="host.currentImageId"
         @remove="onRemove" @rename="openRename" @set-fandom="openSetFandom"
         @navigate="onNavigate"
       />
diff --git a/frontend/src/views/ExploreView.vue b/frontend/src/views/ExploreView.vue
index a196dd1..17ea79b 100644
--- a/frontend/src/views/ExploreView.vue
+++ b/frontend/src/views/ExploreView.vue
@@ -98,6 +98,7 @@
                 :key="store.anchor.id"
                 :src="store.anchor.image_url"
                 :alt="`Image ${store.anchor.id}`"
+                :hover="hoverGrounding"
               />
               <VideoCanvas
                 v-else
@@ -131,7 +132,7 @@
 </template>
 
 <script setup>
-import { computed, nextTick, onMounted, onUnmounted, ref, watch } from 'vue'
+import { computed, nextTick, onMounted, onUnmounted, provide, ref, watch } from 'vue'
 import { useRoute, useRouter } from 'vue-router'
 import { useApi } from '../composables/useApi.js'
 import { useExploreStore } from '../stores/explore.js'
@@ -152,6 +153,11 @@ const modal = useModalStore()
 
 const anchorId = computed(() => route.params.imageId || null)
 const isVideo = computed(() => !!store.anchor?.mime?.startsWith('video/'))
+
+// #1206: hovering a suggestion in the rail highlights the crop it came from on
+// the anchor image (same provide/inject as the modal viewer).
+const hoverGrounding = ref(null)
+provide('fcSuggestionHover', hoverGrounding)
 const seeding = ref(false)
 const seedError = ref(null)
 const tagPanelRef = ref(null)
diff --git a/tests/test_api_tags.py b/tests/test_api_tags.py
index 617587e..00f3b83 100644
--- a/tests/test_api_tags.py
+++ b/tests/test_api_tags.py
@@ -1,4 +1,8 @@
 import pytest
+from sqlalchemy import select
+
+from backend.app.models import ImageRecord, ImageRegion, MLSettings, TagHead, TagKind
+from backend.app.services.tag_service import TagService
 
 pytestmark = pytest.mark.integration
 
@@ -94,3 +98,63 @@ async def test_unknown_prefix_kept_literal(client):
     body = await resp.get_json()
     assert body["name"] == "Http://example.com"
     assert body["kind"] == "general"
+
+
+# --- #1206 Step 4: applied-tag grounding endpoint (hover on applied chips) ----
+
+
+@pytest.mark.asyncio
+async def test_applied_tag_grounding_returns_winning_region(client, db):
+    # Hovering an applied chip fetches the crop that best explains the tag. Here
+    # the whole-image vector is orthogonal to the head but a concept crop aligns,
+    # so the crop wins the max-over-bag → grounding is that region's box.
+    ver = (await db.execute(
+        select(MLSettings).where(MLSettings.id == 1)
+    )).scalar_one().embedder_model_version
+    img = ImageRecord(
+        path="/images/grchip.jpg", sha256="gc" * 32, size_bytes=1,
+        mime="image/jpeg", width=1, height=1, origin="imported_filesystem",
+        integrity_status="unknown",
+        siglip_embedding=[0.0] * 5 + [3.0] + [0.0] * 1146,   # whole-image ⟂ head
+    )
+    db.add(img)
+    await db.flush()
+    tag = await TagService(db).find_or_create("glasses", TagKind.general)
+    db.add(TagHead(
+        tag_id=tag.id, embedding_version=ver,
+        weights=[1.0] + [0.0] * 1151, bias=0.0, suggest_threshold=0.5,
+        auto_apply_threshold=None, n_pos=10, n_neg=30,
+        ap=0.8, precision_cv=0.9, recall=0.6,
+    ))
+    db.add(ImageRegion(
+        image_record_id=img.id, kind="concept",
+        rx=0.4, ry=0.4, rw=0.3, rh=0.3,
+        siglip_embedding=[3.0] + [0.0] * 1151, embedding_version=ver,
+    ))
+    await db.commit()
+
+    resp = await client.get(f"/api/images/{img.id}/tags/{tag.id}/grounding")
+    assert resp.status_code == 200
+    body = await resp.get_json()
+    assert body["has_head"] is True
+    assert body["grounding"]["bbox"] == pytest.approx([0.4, 0.4, 0.3, 0.3])
+    assert body["grounding"]["kind"] == "concept"
+
+
+@pytest.mark.asyncio
+async def test_applied_tag_grounding_no_head(client, db):
+    # A tag with no head can't be localized → has_head False, grounding null; the
+    # chip shows no overlay. Validates the response contract the frontend reads.
+    img = ImageRecord(
+        path="/images/grchip2.jpg", sha256="gd" * 32, size_bytes=1,
+        mime="image/jpeg", width=1, height=1, origin="imported_filesystem",
+        integrity_status="unknown",
+    )
+    db.add(img)
+    await db.flush()
+    tag = await TagService(db).find_or_create("NoHeadHere", TagKind.general)
+    await db.commit()
+
+    resp = await client.get(f"/api/images/{img.id}/tags/{tag.id}/grounding")
+    assert resp.status_code == 200
+    assert await resp.get_json() == {"grounding": None, "has_head": False}
diff --git a/tests/test_ccip.py b/tests/test_ccip.py
index ad1dacf..8231c4b 100644
--- a/tests/test_ccip.py
+++ b/tests/test_ccip.py
@@ -55,6 +55,10 @@ async def test_matches_same_character_across_images(db):
     m = next(x for x in matches if x["tag_id"] == raven.id)
     assert m["source"] == "ccip" and m["category"] == "character"
     assert m["score"] > 0.9
+    # #1206: the match grounds to the figure region that matched (hover → the
+    # figure box lights up), so a character suggestion is localized too.
+    assert m["grounding"]["bbox"] == pytest.approx([0.0, 0.0, 1.0, 1.0])
+    assert m["grounding"]["kind"] == "figure"
 
 
 @pytest.mark.asyncio
diff --git a/tests/test_ml_suggestions.py b/tests/test_ml_suggestions.py
index f8f4d00..babf36d 100644
--- a/tests/test_ml_suggestions.py
+++ b/tests/test_ml_suggestions.py
@@ -7,6 +7,7 @@ from sqlalchemy import select
 from backend.app.models import ImageRecord, ImageRegion, MLSettings, TagHead, TagKind
 from backend.app.models.tag import image_tag
 from backend.app.services.ml.allowlist import AllowlistService
+from backend.app.services.ml.heads import ground_applied_tag
 from backend.app.services.ml.suggestions import SuggestionService
 from backend.app.services.tag_service import TagService
 
@@ -187,7 +188,31 @@ async def test_concept_region_surfaces_via_max_over_bag(db):
     ))
     await db.commit()
     general = (await SuggestionService(db).for_image(img.id)).by_category["general"]
-    assert any(s.canonical_tag_id == tag.id and s.score > 0.7 for s in general)
+    s = next(x for x in general if x.canonical_tag_id == tag.id)
+    assert s.score > 0.7
+    # #1206: the winning crop grounds the tag — hover highlights THIS region
+    # (the matching-version crop at 0.4,0.4,0.3,0.3), not the whole image.
+    assert s.grounding is not None
+    assert s.grounding["bbox"] == pytest.approx([0.4, 0.4, 0.3, 0.3])
+    assert s.grounding["kind"] == "concept"
+
+
+@pytest.mark.asyncio
+async def test_grounding_none_when_whole_image_wins(db):
+    # #1206: when the whole-image vector (not a crop) produces the winning score,
+    # grounding is None — the tag came from the global vector, not a region.
+    tag = await TagService(db).find_or_create("sky", TagKind.general)
+    img = await _img(db, "d1" * 32, _emb(0))          # whole-image ALIGNED w/ head
+    await _head(db, tag.id, slot=0, suggest_threshold=0.5)
+    db.add(ImageRegion(                                # an orthogonal crop (0.5)
+        image_record_id=img.id, kind="concept",
+        rx=0.1, ry=0.1, rw=0.2, rh=0.2,
+        siglip_embedding=_emb(5), embedding_version=await _embver(db),
+    ))
+    await db.commit()
+    general = (await SuggestionService(db).for_image(img.id)).by_category["general"]
+    s = next(x for x in general if x.canonical_tag_id == tag.id)
+    assert s.grounding is None
 
 
 @pytest.mark.asyncio
@@ -256,3 +281,63 @@ async def test_ccip_character_surfaces_in_rail(db):
         if c.canonical_tag_id == raven.id
     )
     assert m.source == "ccip"
+
+
+# --- #1206 Step 4: on-demand grounding for ALREADY-APPLIED tag chips ---------
+# Applied tags aren't scored live, so ground_applied_tag recomputes the winning
+# bag row for one tag's head on demand — the data behind hovering an applied chip.
+
+
+@pytest.mark.asyncio
+async def test_ground_applied_tag_returns_winning_region(db):
+    # Whole-image vector is orthogonal to the head; a concept crop aligns with it,
+    # so the crop is the max-over-bag winner → grounding is THAT region's box.
+    tag = await TagService(db).find_or_create("glasses", TagKind.general)
+    img = await _img(db, "g1" * 32, _emb(5))            # whole-image ⟂ head
+    await _head(db, tag.id, slot=0)
+    db.add(ImageRegion(
+        image_record_id=img.id, kind="concept",
+        rx=0.4, ry=0.4, rw=0.3, rh=0.3,
+        siglip_embedding=_emb(0), embedding_version=await _embver(db),
+    ))
+    await db.commit()
+
+    grounding, has_head = await ground_applied_tag(db, img.id, tag.id)
+    assert has_head is True
+    assert grounding is not None
+    assert grounding["bbox"] == pytest.approx([0.4, 0.4, 0.3, 0.3])
+    assert grounding["kind"] == "concept"
+
+
+@pytest.mark.asyncio
+async def test_ground_applied_tag_none_when_whole_image_wins(db):
+    # Whole-image vector aligns with the head and out-scores an orthogonal crop →
+    # grounding None (has_head True): the tag is best explained by the global
+    # vector, so the chip hover shows the subtle whole-image frame, not a box.
+    tag = await TagService(db).find_or_create("sky", TagKind.general)
+    img = await _img(db, "g2" * 32, _emb(0))            # whole-image ALIGNED
+    await _head(db, tag.id, slot=0)
+    db.add(ImageRegion(
+        image_record_id=img.id, kind="concept",
+        rx=0.1, ry=0.1, rw=0.2, rh=0.2,
+        siglip_embedding=_emb(5), embedding_version=await _embver(db),
+    ))
+    await db.commit()
+
+    grounding, has_head = await ground_applied_tag(db, img.id, tag.id)
+    assert has_head is True
+    assert grounding is None
+
+
+@pytest.mark.asyncio
+async def test_ground_applied_tag_no_head(db):
+    # A tag with no head in the current space (manual/artist/meta, or below the
+    # head floor) can't be localized → (None, has_head False); the UI draws no
+    # overlay at all, distinct from "the whole image won".
+    tag = await TagService(db).find_or_create("artist:someone", TagKind.general)
+    img = await _img(db, "g3" * 32, _emb(0))
+    await db.commit()
+
+    grounding, has_head = await ground_applied_tag(db, img.id, tag.id)
+    assert has_head is False
+    assert grounding is None