diff --git a/windows/src/engine/keyman/UfrmKeyman7Main.pas b/windows/src/engine/keyman/UfrmKeyman7Main.pas
index 8fdb620318..5154dc90db 100644
--- a/windows/src/engine/keyman/UfrmKeyman7Main.pas
+++ b/windows/src/engine/keyman/UfrmKeyman7Main.pas
@@ -1227,16 +1227,35 @@ end;
 procedure TfrmKeyman7Main.SetTrayIcon(rp: TRunningProduct; kbd: IKeymanKeyboardInstalled);
 var
   cust: IKeymanCustomisation;
-  bb: IPicture;
-  h: OLE_HANDLE;
+  lskbd: TLangSwitchKeyboard;
+  icon: TIcon;
 begin
   if Assigned(rp) then
   begin
-    bb := kbd.Bitmap;
-    if Assigned(bb) then
+    lskbd := LangSwitchManager.FindKeyboardByKeymanID(kbd.KeymanID);
+    if Assigned(lskbd) and (lskbd is TLangSwitchKeyboard_TIP) then
+    try
+      icon := TIcon.Create;
+      try
+        icon.Handle := (lskbd as TLangSwitchKeyboard_TIP).IconHandle;
+        rp.FTrayIcon.Icon.Assign(icon);
+        icon.ReleaseHandle;
+      finally
+        icon.Free;
+      end;
+    except
+      on E:Exception do
+      begin
+        // #12905: icon is otherwise invalid
+        TKeymanSentryClient.ReportHandledException(E, 'SetTrayIcon: Invalid icon for keyboard "'+kbd.ID+'"; icon filename "'+kbd.IconFilename+'"');
+        // Use the default app icon
+        rp.FTrayIcon.Icon.Assign(FTrayIcon);
+      end;
+    end
+    else
     begin
-      bb.get_Handle(h);
-      rp.FTrayIcon.Icon.Handle := CopyIcon(h);
+      // Use the default app icon
+      rp.FTrayIcon.Icon.Assign(FTrayIcon);
     end;
 
     if VisualKeyboardVisible then
diff --git a/windows/src/engine/keyman/langswitch/LangSwitchManager.pas b/windows/src/engine/keyman/langswitch/LangSwitchManager.pas
index e6a800fb1e..a3bcc723b9 100644
--- a/windows/src/engine/keyman/langswitch/LangSwitchManager.pas
+++ b/windows/src/engine/keyman/langswitch/LangSwitchManager.pas
@@ -186,6 +186,7 @@ type
     procedure Refresh;
     function FindKeyboard(FHKL: HKL; FProfileGuid: TGUID): TLangSwitchKeyboard; overload;
     function FindKeyboard(id: string): TLangSwitchKeyboard; overload;
+    function FindKeyboardByKeymanID(id: Integer): TLangSwitchKeyboard; overload;
     property Languages[Index: Integer]: TLangSwitchLanguage read GetLanguage;
     property LanguageCount: Integer read GetLanguageCount;
     property TotalKeyboardCount: Integer read GetTotalKeyboardCount;   // I4606
@@ -594,6 +595,20 @@ begin
   Result := nil;
 end;
 
+function TLangSwitchManager.FindKeyboardByKeymanID(
+  id: Integer): TLangSwitchKeyboard;
+var
+  lang: TLangSwitchLanguage;
+  kbd: TLangSwitchKeyboard;
+begin
+  for lang in FLanguages do
+    for kbd in lang.FKeyboards do
+      if kbd.KeymanID = id then
+        Exit(kbd);
+
+  Result := nil;
+end;
+
 function TLangSwitchManager.FindKeyboard(FHKL: HKL;
   FProfileGuid: TGUID): TLangSwitchKeyboard;
 var
diff --git a/windows/src/test/manual-tests/png-icon/README.md b/windows/src/test/manual-tests/png-icon/README.md
new file mode 100644
index 0000000000..ab5e87c707
--- /dev/null
+++ b/windows/src/test/manual-tests/png-icon/README.md
@@ -0,0 +1,6 @@
+# pngicon keyboard
+
+A keyboard with a PNG format icon - for testing #12905
+
+https://github.com/keymanapp/keyman/issues/12905
+
diff --git a/windows/src/test/manual-tests/png-icon/pngicon.kpj b/windows/src/test/manual-tests/png-icon/pngicon.kpj
new file mode 100644
index 0000000000..d3a678044b
--- /dev/null
+++ b/windows/src/test/manual-tests/png-icon/pngicon.kpj
@@ -0,0 +1,8 @@
+<?xml version="1.0" encoding="utf-8"?>
+<KeymanDeveloperProject>
+  <Options>
+    <Version>2.0</Version>
+    <CompilerWarningsAsErrors>True</CompilerWarningsAsErrors>
+    <CheckFilenameConventions>True</CheckFilenameConventions>
+  </Options>
+</KeymanDeveloperProject>
diff --git a/windows/src/test/manual-tests/png-icon/source/pngicon.ico b/windows/src/test/manual-tests/png-icon/source/pngicon.ico
new file mode 100644
index 0000000000..e65712af28
Binary files /dev/null and b/windows/src/test/manual-tests/png-icon/source/pngicon.ico differ
diff --git a/windows/src/test/manual-tests/png-icon/source/pngicon.kmn b/windows/src/test/manual-tests/png-icon/source/pngicon.kmn
new file mode 100644
index 0000000000..de695b9a0f
--- /dev/null
+++ b/windows/src/test/manual-tests/png-icon/source/pngicon.kmn
@@ -0,0 +1,12 @@
+c pngicon generated from template at 2026-08-13 11:08:13
+c with name "pngicon"
+store(&VERSION) '10.0'
+store(&NAME) 'pngicon'
+store(&COPYRIGHT) 'Copyright ©'
+store(&KEYBOARDVERSION) '1.0'
+store(&TARGETS) 'windows'
+store(&BITMAP) 'pngicon.ico'
+
+begin Unicode > use(main)
+
+group(main) using keys
diff --git a/windows/src/test/manual-tests/png-icon/source/pngicon.kps b/windows/src/test/manual-tests/png-icon/source/pngicon.kps
new file mode 100644
index 0000000000..373e8276f3
--- /dev/null
+++ b/windows/src/test/manual-tests/png-icon/source/pngicon.kps
@@ -0,0 +1,41 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Package>
+  <System>
+    <KeymanDeveloperVersion>18.0.249.0</KeymanDeveloperVersion>
+    <FileVersion>7.0</FileVersion>
+  </System>
+  <Options>
+    <ExecuteProgram></ExecuteProgram>
+    <MSIFileName></MSIFileName>
+    <MSIOptions></MSIOptions>
+    <FollowKeyboardVersion/>
+  </Options>
+  <StartMenu>
+    <Folder></Folder>
+    <Items/>
+  </StartMenu>
+  <Info>
+    <Name URL="">pngicon</Name>
+    <Copyright URL="">Copyright ©</Copyright>
+    <Author URL=""></Author>
+    <Description URL="">A keyboard with a PNG icon</Description>
+    <Version URL=""></Version>
+  </Info>
+  <Files>
+    <File>
+      <Name>..\build\pngicon.kmx</Name>
+      <Description></Description>
+      <CopyLocation>0</CopyLocation>
+      <FileType>.kmx</FileType>
+    </File>
+  </Files>
+  <Keyboards>
+    <Keyboard>
+      <ID>pngicon</ID>
+      <Languages>
+        <Language ID="de">German</Language>
+      </Languages>
+    </Keyboard>
+  </Keyboards>
+  <Strings/>
+</Package>