diff --git a/pygmt/src/pygmtlogo.py b/pygmt/src/pygmtlogo.py
index ec1bb7d9250..e8cfc7fa643 100644
--- a/pygmt/src/pygmtlogo.py
+++ b/pygmt/src/pygmtlogo.py
@@ -34,7 +34,7 @@ def _create_logo(  # noqa: PLR0915
     size = 4
     proj = "x1c"
     region = {
-        "horizontal": [-size, size * 8.0, -size, size],
+        "horizontal": [-size, size * 7.0, -size, size],
         "vertical": [-size, size, -size * 1.75, size],
         "none": [-size, size, -size, size],
     }[wordmark]
@@ -79,12 +79,27 @@ def _create_logo(  # noqa: PLR0915
             hex_factor = 1.1
 
     # Define wordmark
+    # See https://github.com/GenericMappingTools/pygmt/pull/4627#issuecomment-4437317011
+    # for the rationale behind the magic values.
     font = "AvantGarde-Book"
+    pheight = 0.739  # Height of letter "P"
+    plsb = 0.076  # Left side bearing of letter "P"
+    pstroke = 0.0735  # Stroke thickness of letter "P"
+
     match wordmark:
         case "vertical":
-            args_text_wm = {"x": 0, "y": -4.5, "justify": "CT", "font": f"2.4c,{font}"}
+            args_wordmark = {"x": 0, "y": -4.5, "justify": "CT", "font": f"2.4c,{font}"}
         case "horizontal":
-            args_text_wm = {"x": 4.5, "y": 0.8, "justify": "LM", "font": f"8c,{font}"}
+            # The stroke width matches the outline thickness.
+            # The left edge of "P" is aligned at y=size * 1.25.
+            # Letters "PGMT" are placed vertically centered at y=0.
+            fontsize = thick_shape / pstroke
+            args_wordmark = {
+                "x": size * 1.25 - plsb * fontsize,
+                "y": -pheight / 2.0 * fontsize,
+                "justify": "BL",
+                "font": f"{fontsize}c,{font}",
+            }
 
     def _letter_g_coords():
         """Coordinates for letter G."""
@@ -229,7 +244,7 @@ def _compass_lines():
 
     # Add wordmark "PyGMT"
     if wordmark != "none":
-        fig.text(text=f"@;{color_py};Py@;;@;{color_gmt};GMT@;;", **args_text_wm)
+        fig.text(text=f"@;{color_py};Py@;;@;{color_gmt};GMT@;", **args_wordmark)
 
     # Helpful for implementing the logo; not included in the logo
     if debug:
@@ -248,6 +263,11 @@ def _compass_lines():
         fig.hlines(y=[r4, r5], xmin=-size_s, xmax=size_s, pen=pen, perspective=True)
         m_mid = (thick_gap + r4) / 2
         fig.vlines(x=[r4, m_mid], ymin=-size_s, ymax=size_s, pen=pen, perspective=True)
+        # Lines for wordmark
+        if wordmark == "horizontal":
+            halfheight = pheight / 2.0 * fontsize
+            fig.hlines(y=[-halfheight, halfheight], xmin=size, pen=pen)
+            fig.vlines(x=[size * 1.25, size * 1.25 + pstroke * fontsize], pen=pen)
 
     if figname:
         fig.savefig(fname=figname)
diff --git a/pygmt/tests/baseline/test_pygmtlogo_circle_design_horizontal.png.dvc b/pygmt/tests/baseline/test_pygmtlogo_circle_design_horizontal.png.dvc
index 3648ff8045d..9095a7fbc48 100644
--- a/pygmt/tests/baseline/test_pygmtlogo_circle_design_horizontal.png.dvc
+++ b/pygmt/tests/baseline/test_pygmtlogo_circle_design_horizontal.png.dvc
@@ -1,5 +1,5 @@
 outs:
-- md5: de3f281a09815faff7fed339c1635bc5
-  size: 336254
+- md5: 44a9a200fbac4c868b69cb1c13e6dfc5
+  size: 320394
   hash: md5
   path: test_pygmtlogo_circle_design_horizontal.png
diff --git a/pygmt/tests/baseline/test_pygmtlogo_circle_horizontal_wordmark.png.dvc b/pygmt/tests/baseline/test_pygmtlogo_circle_horizontal_wordmark.png.dvc
new file mode 100644
index 00000000000..bf1e1bb0b02
--- /dev/null
+++ b/pygmt/tests/baseline/test_pygmtlogo_circle_horizontal_wordmark.png.dvc
@@ -0,0 +1,5 @@
+outs:
+- md5: 6510d43c7860d79f4c4dc43e6b784325
+  size: 64867
+  hash: md5
+  path: test_pygmtlogo_circle_horizontal_wordmark.png
diff --git a/pygmt/tests/test_pygmtlogo.py b/pygmt/tests/test_pygmtlogo.py
index 71078f95548..0b61d88eea3 100644
--- a/pygmt/tests/test_pygmtlogo.py
+++ b/pygmt/tests/test_pygmtlogo.py
@@ -4,7 +4,7 @@
 
 import pytest
 from pygmt import Figure
-from pygmt.params import Axis, Position
+from pygmt.params import Axis, Frame, Position
 from pygmt.src.pygmtlogo import _create_logo
 
 
@@ -49,3 +49,40 @@ def test_pygmtlogo_circle_no_wordmark():
         color=False,
     )
     return fig
+
+
+@pytest.mark.mpl_image_compare
+def test_pygmtlogo_circle_horizontal_wordmark():
+    """
+    Test the PyGMT circular logo with a horizontal wordmark, including both light/dark
+    themes, and colored/black-and-white versions.
+    """
+    fig = Figure()
+    fig.basemap(
+        region=[-0.5, 8.0, -0.5, 10.0],
+        projection="x1c",
+        frame=Frame(fill="gray", axis=Axis(grid=0.5)),
+    )
+    fig.pygmtlogo(
+        position=Position((0, 8.5), anchor="ML", cstype="mapcoords"),
+        theme="light",
+        wordmark="horizontal",
+    )
+    fig.pygmtlogo(
+        position=Position((0, 6), anchor="ML", cstype="mapcoords"),
+        theme="dark",
+        wordmark="horizontal",
+    )
+    fig.pygmtlogo(
+        position=Position((0, 3.5), anchor="ML", cstype="mapcoords"),
+        theme="light",
+        color=False,
+        wordmark="horizontal",
+    )
+    fig.pygmtlogo(
+        position=Position((0, 1), anchor="ML", cstype="mapcoords"),
+        theme="dark",
+        color=False,
+        wordmark="horizontal",
+    )
+    return fig