diff --git a/graphify/extractors/verilog.py b/graphify/extractors/verilog.py
index 2f5fea49b5..563f45fe72 100644
--- a/graphify/extractors/verilog.py
+++ b/graphify/extractors/verilog.py
@@ -243,6 +243,21 @@ def add_edge(src: str, tgt: str, relation: str, line: int,
     file_nid = _make_id(str(path))
     add_node(file_nid, path.name, 1)
 
+    # Pre-scan module names so an instantiation resolves to a module defined
+    # later in the same file — Verilog allows instantiating a module declared
+    # further down the source (or in any order across the compilation unit).
+    local_modules: set[str] = set()
+
+    def _scan_modules(node) -> None:
+        if node.type == "module_declaration":
+            mn = _sv_first_identifier(_sv_child(node, "module_header"), source)
+            if mn:
+                local_modules.add(mn)
+        for child in node.children:
+            _scan_modules(child)
+
+    _scan_modules(root)
+
     def walk(node, module_nid: str | None = None) -> None:
         t = node.type
 
@@ -309,8 +324,28 @@ def walk(node, module_nid: str | None = None) -> None:
                              else _sv_first_identifier(node, source))
                 if inst_type:
                     line = node.start_point[0] + 1
-                    tgt_nid = _make_id(inst_type)
-                    add_node(tgt_nid, inst_type, line)
+                    if inst_type in local_modules:
+                        # The instantiated module is defined in this file: point
+                        # at its definition id (`_make_id(stem, name)`) instead of
+                        # minting a second, bare-id node for the same module. A
+                        # bare `_make_id(name)` never matches the scoped definition
+                        # id, so the module was split into a real definition node
+                        # and a phantom instantiation-target duplicate.
+                        tgt_nid = _make_id(stem, inst_type)
+                    else:
+                        # Defined in another file: emit a SOURCELESS stub so the
+                        # corpus-level rewire collapses it onto the real
+                        # definition. A sourced stub bakes this file's path into
+                        # the id and blocks the rewire — the #1402 phantom
+                        # duplicate the other extractors avoid the same way.
+                        tgt_nid = _make_id(inst_type)
+                        if tgt_nid not in seen_ids:
+                            seen_ids.add(tgt_nid)
+                            nodes.append({
+                                "id": tgt_nid, "label": inst_type,
+                                "file_type": "code", "source_file": "",
+                                "source_location": "", "confidence_score": 1.0,
+                            })
                     add_edge(module_nid, tgt_nid, "instantiates", line)
 
         for child in node.children:
diff --git a/tests/test_languages.py b/tests/test_languages.py
index bfdc836f80..4508bbfdd4 100644
--- a/tests/test_languages.py
+++ b/tests/test_languages.py
@@ -3600,6 +3600,40 @@ def test_systemverilog_preserves_existing_module_extraction():
     assert "instantiates" in _relations(r)
 
 
+def test_systemverilog_instantiation_resolves_to_local_module():
+    """`top` instantiating same-file `leaf` links to leaf's definition, not a
+    bare-id phantom duplicate. The instantiation target used an unscoped id
+    (`_make_id(name)`) while the definition used `_make_id(stem, name)`, so
+    they never matched: the module was split into a real definition node and a
+    sourced phantom that also blocked the corpus-level rewire (#1402 shape)."""
+    r = extract_verilog(FIXTURES / "sample.sv")
+    leaf_nodes = [n for n in r["nodes"] if n["label"] == "leaf"]
+    assert len(leaf_nodes) == 1, f"leaf split into duplicates: {leaf_nodes}"
+    leaf_id = leaf_nodes[0]["id"]
+    # The surviving node is the real, sourced definition.
+    assert leaf_nodes[0].get("source_file")
+    inst_targets = {e["target"] for e in r["edges"] if e["relation"] == "instantiates"}
+    assert leaf_id in inst_targets, (
+        f"instantiation did not link to the leaf definition {leaf_id}: {inst_targets}"
+    )
+
+
+def test_systemverilog_cross_file_instantiation_is_sourceless_stub(tmp_path):
+    """A module defined in another file is a SOURCELESS stub so the corpus-level
+    rewire can collapse it onto the real definition, rather than a sourced node
+    whose id bakes in this file's path and blocks the rewire."""
+    f = tmp_path / "wrapper.sv"
+    f.write_text("module wrapper;\n  external_ip u_ip();\nendmodule\n")
+    r = extract_verilog(f)
+    stubs = [n for n in r["nodes"] if n["label"] == "external_ip"]
+    assert len(stubs) == 1, stubs
+    assert stubs[0].get("source_file") == "", (
+        f"cross-file instantiation target must be sourceless: {stubs[0]}"
+    )
+    inst_targets = {e["target"] for e in r["edges"] if e["relation"] == "instantiates"}
+    assert stubs[0]["id"] in inst_targets
+
+
 def test_systemverilog_missing_file_returns_empty():
     r = extract_verilog(Path("nonexistent.sv"))
     assert r["nodes"] == []