Abstract: A method for managing an application icon, a terminal device, and a storage medium. In a scenario of installing an application on the terminal device, whether a target closed circle exists in closed circles in a direction from inside to outside in an icon grid is determined, where the icon grid is formed by arranging all current application icons of the terminal device in a grid manner, the closed circles are rectangular circles centered on a center of the icon grid, and a free position for an application icon exists on the target closed circle. If the target closed circle exists, a target application icon is added at the free position on the target closed circle to ensure that the application icons remain in an aggregated and compact visual form.