diff --git a/internal/pkg/apps/install.go b/internal/pkg/apps/install.go
index 9dcd68ee..b89ce904 100644
--- a/internal/pkg/apps/install.go
+++ b/internal/pkg/apps/install.go
@@ -17,7 +17,7 @@ package apps
 import (
 	"context"
 	"fmt"
-	"os"
+	"path/filepath"
 	"strings"
 	"time"
 
@@ -30,6 +30,7 @@ import (
 	"github.com/slackapi/slack-cli/internal/shared/types"
 	"github.com/slackapi/slack-cli/internal/slackerror"
 	"github.com/slackapi/slack-cli/internal/style"
+	"github.com/spf13/afero"
 )
 
 // Constants for onlyCreateUpdateAppManifest parameter
@@ -40,6 +41,23 @@ const (
 
 const additionalManifestInfoNotice = "App manifest contains some components that may require additional information"
 
+var supportedIconExtensions = []string{".png", ".jpg", ".jpeg", ".gif"}
+
+func resolveIconPath(fs afero.Fs, manifestIcon string) string {
+	if manifestIcon != "" {
+		return manifestIcon
+	}
+	for _, dir := range []string{"assets", "."} {
+		for _, ext := range supportedIconExtensions {
+			candidate := filepath.Join(dir, "icon"+ext)
+			if _, err := fs.Stat(candidate); err == nil {
+				return candidate
+			}
+		}
+	}
+	return ""
+}
+
 // Install installs the app to a team
 func Install(ctx context.Context, clients *shared.ClientFactory, auth types.SlackAuth, onlyCreateUpdateAppManifest bool, app types.App, orgGrantWorkspaceID string) (types.App, types.InstallState, error) {
 	span, ctx := opentracing.StartSpanFromContext(ctx, "pkg.apps.install")
@@ -218,13 +236,8 @@ func Install(ctx context.Context, clients *shared.ClientFactory, auth types.Slac
 		}
 	}
 
-	// upload icon, default to icon.png
-	var iconPath = slackManifest.Icon
-	if iconPath == "" {
-		if _, err := os.Stat("icon.png"); !os.IsNotExist(err) {
-			iconPath = "icon.png"
-		}
-	}
+	// upload icon, default to assets/icon.{png,jpg,jpeg,gif} or icon.{png,jpg,jpeg,gif}
+	iconPath := resolveIconPath(clients.Fs, slackManifest.Icon)
 	if iconPath != "" {
 		err = updateIcon(ctx, clients, iconPath, app.AppID, token)
 		if err != nil {
@@ -524,12 +537,7 @@ func InstallLocalApp(ctx context.Context, clients *shared.ClientFactory, orgGran
 
 	// upload icon for non-hosted apps (gated behind set-icon experiment)
 	if clients.Config.WithExperimentOn(experiment.SetIcon) {
-		var iconPath = slackManifest.Icon
-		if iconPath == "" {
-			if _, err := os.Stat("icon.png"); !os.IsNotExist(err) {
-				iconPath = "icon.png"
-			}
-		}
+		iconPath := resolveIconPath(clients.Fs, slackManifest.Icon)
 		if iconPath != "" {
 			_, iconErr := clients.API().IconSet(ctx, clients.Fs, token, app.AppID, iconPath)
 			if iconErr != nil {
diff --git a/internal/pkg/apps/install_test.go b/internal/pkg/apps/install_test.go
index 2c44dc94..2be011a4 100644
--- a/internal/pkg/apps/install_test.go
+++ b/internal/pkg/apps/install_test.go
@@ -26,6 +26,7 @@ import (
 	"github.com/slackapi/slack-cli/internal/shared/types"
 	"github.com/slackapi/slack-cli/internal/slackcontext"
 	"github.com/slackapi/slack-cli/internal/slackerror"
+	"github.com/spf13/afero"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/mock"
 	"github.com/stretchr/testify/require"
@@ -1724,3 +1725,66 @@ func TestContinueDespiteWarning(t *testing.T) {
 		})
 	}
 }
+
+func Test_resolveIconPath(t *testing.T) {
+	tests := map[string]struct {
+		manifestIcon string
+		files        []string
+		expected     string
+	}{
+		"manifest icon set returns it directly": {
+			manifestIcon: "custom/my-icon.png",
+			expected:     "custom/my-icon.png",
+		},
+		"assets/icon.png found": {
+			files:    []string{"assets/icon.png"},
+			expected: "assets/icon.png",
+		},
+		"assets/icon.jpg found": {
+			files:    []string{"assets/icon.jpg"},
+			expected: "assets/icon.jpg",
+		},
+		"assets/icon.jpeg found": {
+			files:    []string{"assets/icon.jpeg"},
+			expected: "assets/icon.jpeg",
+		},
+		"assets/icon.gif found": {
+			files:    []string{"assets/icon.gif"},
+			expected: "assets/icon.gif",
+		},
+		"png wins over gif in assets": {
+			files:    []string{"assets/icon.png", "assets/icon.gif"},
+			expected: "assets/icon.png",
+		},
+		"jpg wins over gif in assets": {
+			files:    []string{"assets/icon.jpg", "assets/icon.gif"},
+			expected: "assets/icon.jpg",
+		},
+		"root icon.png found when no assets": {
+			files:    []string{"icon.png"},
+			expected: "icon.png",
+		},
+		"root icon.jpg found when no assets": {
+			files:    []string{"icon.jpg"},
+			expected: "icon.jpg",
+		},
+		"assets takes priority over root": {
+			files:    []string{"assets/icon.gif", "icon.png"},
+			expected: "assets/icon.gif",
+		},
+		"no icon files returns empty": {
+			files:    []string{},
+			expected: "",
+		},
+	}
+	for name, tc := range tests {
+		t.Run(name, func(t *testing.T) {
+			fs := afero.NewMemMapFs()
+			for _, f := range tc.files {
+				require.NoError(t, afero.WriteFile(fs, f, []byte("img"), 0o644))
+			}
+			result := resolveIconPath(fs, tc.manifestIcon)
+			assert.Equal(t, tc.expected, result)
+		})
+	}
+}
diff --git a/internal/shared/types/slack_yaml.go b/internal/shared/types/slack_yaml.go
index 106135b2..1f8fea08 100644
--- a/internal/shared/types/slack_yaml.go
+++ b/internal/shared/types/slack_yaml.go
@@ -27,15 +27,19 @@ type SlackYaml struct {
 	Hash        string
 }
 
+var supportedIconExtensions = []string{".png", ".jpg", ".jpeg", ".gif"}
+
 // hasValidIconPath returns false if icon path is provided but is not valid and true otherwise
 func (sy *SlackYaml) hasValidIconPath() bool {
-	// verify icon path is valid if exists
 	var wd, err = os.Getwd()
 	if err == nil {
-		if sy.Icon == "" { // icon was not provided.  Let's check if the default one exists
-			var defaultIconPath = "assets/icon.png"
-			if _, err := os.Stat(filepath.Join(wd, defaultIconPath)); !os.IsNotExist(err) {
-				sy.Icon = defaultIconPath
+		if sy.Icon == "" {
+			for _, ext := range supportedIconExtensions {
+				candidate := filepath.Join(wd, "assets", "icon"+ext)
+				if _, err := os.Stat(candidate); !os.IsNotExist(err) {
+					sy.Icon = filepath.Join("assets", "icon"+ext)
+					break
+				}
 			}
 		} else {
 			if _, err := os.Stat(filepath.Join(wd, sy.Icon)); os.IsNotExist(err) {
diff --git a/internal/shared/types/slack_yaml_test.go b/internal/shared/types/slack_yaml_test.go
index f9264288..7276a284 100644
--- a/internal/shared/types/slack_yaml_test.go
+++ b/internal/shared/types/slack_yaml_test.go
@@ -50,6 +50,31 @@ func Test_SlackYaml_hasValidIconPath(t *testing.T) {
 			},
 			expected: true,
 		},
+		"no icon with default assets/icon.jpg present returns true": {
+			icon: "",
+			setup: func(t *testing.T, dir string) {
+				require.NoError(t, os.MkdirAll(filepath.Join(dir, "assets"), 0o755))
+				require.NoError(t, os.WriteFile(filepath.Join(dir, "assets", "icon.jpg"), []byte("img"), 0o644))
+			},
+			expected: true,
+		},
+		"no icon with default assets/icon.gif present returns true": {
+			icon: "",
+			setup: func(t *testing.T, dir string) {
+				require.NoError(t, os.MkdirAll(filepath.Join(dir, "assets"), 0o755))
+				require.NoError(t, os.WriteFile(filepath.Join(dir, "assets", "icon.gif"), []byte("img"), 0o644))
+			},
+			expected: true,
+		},
+		"png takes priority over jpg in assets": {
+			icon: "",
+			setup: func(t *testing.T, dir string) {
+				require.NoError(t, os.MkdirAll(filepath.Join(dir, "assets"), 0o755))
+				require.NoError(t, os.WriteFile(filepath.Join(dir, "assets", "icon.png"), []byte("img"), 0o644))
+				require.NoError(t, os.WriteFile(filepath.Join(dir, "assets", "icon.jpg"), []byte("img"), 0o644))
+			},
+			expected: true,
+		},
 		"no icon and no default returns true": {
 			icon:     "",
 			setup:    func(t *testing.T, dir string) {},