Automatic positioning of textual content within digital images is leveraged in a digital medium environment. Initially, user input is received to add textual content to a digital image. The digital image can then be processed to identify at least one object in the digital image using an image segmentation model. A placement region for the textual content that does not overlap the at least one object can be automatically determined. After the placement region is automatically determined, the digital image can be modified by positioning the textual content within the automatically determined placement region of the digital image. Positioning the textual content may include automatically adjusting the textual content to fit within the placement region, such as by automatically scaling or aligning the textual content.