Illustrator’s New Gradient Image Trace Tool (2025 Update)

How to Use Illustrator’s New Gradient Image Trace Tool (2025 Update)

If you’ve ever tried to image trace a photo in Adobe Illustrator, you’ll know the results can be… well, not ideal. Banding, muddy colors, and limited control were pretty standard. But with the 2025 update, Adobe has introduced a brand-new feature that changes the game: the Image Trace Gradient Tool.

Here’s a quick look at how it works—and why it’s such a big deal for illustrators and designers.

What’s New in Illustrator 2025?

In previous versions, the best option available was Image Trace using the High Fidelity Photo preset. It gave decent results but often produced visible banding and harsh transitions, especially in areas with soft gradients or shadows.

With the 2025 Illustrator update, the Live Trace panel now includes a new Gradients option—and it’s a major improvement.

You can check out this video (and lots more!) over on my Instagram Page @hannah.bacon.design


Step-by-Step: Using the New Gradient Image Trace

1. Old vs New

I started by reinstalling the older version of Illustrator to compare the two methods side by side. In 2024, image tracing even with high settings still resulted in color banding and limited control.

2. Test the New Tool

In Illustrator 2025:

  • Open your photo

  • Go to the Live Trace panel

  • Choose High Fidelity Photo as your preset

  • Then enable the Gradients option

Once Illustrator processes the image, you’ll see a much smoother result.

3. Expand the Gradient

After applying the gradient trace, click Expand to turn the trace into editable vector shapes with live gradient fills—which is incredibly useful for creating high-quality, scalable artwork from photos.


Want More Time-Saving Tools and Freebies?

This process is just one of the techniques I share across my design templates and digital assets, made especially for designers who want professional results—without starting from scratch every time.

Browse templates →


Hannah Bacon

Hannah Bacon is a designer, educator, and founder of the freelance studio Not by Chance.

With over a decade of experience in branding, illustration, and publication design, she helps creative professionals and businesses build thoughtful, strategic visuals that actually work. Through her blog, she shares design tips, tools, and behind-the-scenes insights to help others grow with confidence and clarity.

Explore templates →

https://www.hannahbacondesign.com
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