Electron‐beam proximity printing (EBP) is a promising candidate for submicron lithography because it meets the stringent requirements for resolution, throughput, and image fidelity (here defined as registration and overlay). Registration and level‐to‐level overlay capabilities of EBP are reported in this paper. Two levels of a chip were exposed and processed subsequently, these levels represented by two different patterns in the same mask. Distortions of both patterns relative to each other, amounting up to several hundred nanometers, were detected. These distortions could be automatically compensated for during exposure to yield an average overlay better than 50 nm. Together with the low data scatter of 3σ<170 nm, this indicates high performance of the EBP registration and distortion compensation procedure.