diff --git a/Modules/Segmentation/LevelSets/include/itkLevelSetNeighborhoodExtractor.hxx b/Modules/Segmentation/LevelSets/include/itkLevelSetNeighborhoodExtractor.hxx
index 956823f8d4a..889eb0db214 100644
--- a/Modules/Segmentation/LevelSets/include/itkLevelSetNeighborhoodExtractor.hxx
+++ b/Modules/Segmentation/LevelSets/include/itkLevelSetNeighborhoodExtractor.hxx
@@ -229,7 +229,7 @@ LevelSetNeighborhoodExtractor<TLevelSet>::CalculateDistance(IndexType & index)
       typename LevelSetImageType::PixelType neighValue = inputPixel;
       neighValue -= m_LevelSetValue;
 
-      if ((neighValue > 0 && inside) || (neighValue < 0 && !inside))
+      if ((neighValue >= 0 && inside) || (neighValue <= 0 && !inside))
       {
         SpacePrecisionType distance = centerValue / (centerValue - neighValue) * spacing;
 
diff --git a/Modules/Segmentation/LevelSets/test/CMakeLists.txt b/Modules/Segmentation/LevelSets/test/CMakeLists.txt
index d402a9bc926..a843b329550 100644
--- a/Modules/Segmentation/LevelSets/test/CMakeLists.txt
+++ b/Modules/Segmentation/LevelSets/test/CMakeLists.txt
@@ -35,6 +35,7 @@ createtestdriver(ITKLevelSets "${ITKLevelSets-Test_LIBRARIES}" "${ITKLevelSetsTe
 
 set(
   ITKLevelSetsGTests
+  itkLevelSetNeighborhoodExtractorGTest.cxx
   itkParallelSparseFieldLevelSetImageFilterRobustnessGTest.cxx
 )
 creategoogletestdriver(ITKLevelSets "${ITKLevelSets-Test_LIBRARIES}" "${ITKLevelSetsGTests}")
diff --git a/Modules/Segmentation/LevelSets/test/itkLevelSetNeighborhoodExtractorGTest.cxx b/Modules/Segmentation/LevelSets/test/itkLevelSetNeighborhoodExtractorGTest.cxx
new file mode 100644
index 00000000000..4fd49253532
--- /dev/null
+++ b/Modules/Segmentation/LevelSets/test/itkLevelSetNeighborhoodExtractorGTest.cxx
@@ -0,0 +1,144 @@
+/*=========================================================================
+ *
+ *  Copyright NumFOCUS
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *         https://www.apache.org/licenses/LICENSE-2.0.txt
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ *
+ *=========================================================================*/
+
+#include "gtest/gtest.h"
+
+#include "itkLevelSetNeighborhoodExtractor.h"
+#include "itkImageRegionIteratorWithIndex.h"
+
+namespace
+{
+using ImageType = itk::Image<float, 2>;
+
+ImageType::Pointer
+MakeGridAlignedZeroLayerImage()
+{
+  auto                        image = ImageType::New();
+  const ImageType::SizeType   size{ { 5, 3 } };
+  const ImageType::RegionType region{ size };
+  image->SetRegions(region);
+  image->Allocate();
+
+  itk::ImageRegionIteratorWithIndex<ImageType> it(image, region);
+  for (it.GoToBegin(); !it.IsAtEnd(); ++it)
+  {
+    const auto x = it.GetIndex()[0];
+    it.Set(x < 2 ? -1.0f : (x == 2 ? 0.0f : 1.0f));
+  }
+  return image;
+}
+} // namespace
+
+TEST(LevelSetNeighborhoodExtractor, SeedsOutsidePointsAcrossGridAlignedZeroContour)
+{
+  using ExtractorType = itk::LevelSetNeighborhoodExtractor<ImageType>;
+  auto extractor = ExtractorType::New();
+
+  extractor->SetInputLevelSet(MakeGridAlignedZeroLayerImage());
+  extractor->SetLevelSetValue(0.0);
+  extractor->NarrowBandingOff();
+  extractor->Locate();
+
+  const auto outsidePoints = extractor->GetOutsidePoints();
+  ASSERT_EQ(outsidePoints->Size(), 3u);
+  for (auto it = outsidePoints->Begin(); it != outsidePoints->End(); ++it)
+  {
+    EXPECT_EQ(it.Value().GetIndex()[0], 3);
+    EXPECT_FLOAT_EQ(it.Value().GetValue(), 1.0f);
+  }
+
+  const auto insidePoints = extractor->GetInsidePoints();
+  ASSERT_EQ(insidePoints->Size(), 6u);
+  for (auto it = insidePoints->Begin(); it != insidePoints->End(); ++it)
+  {
+    const auto x = it.Value().GetIndex()[0];
+    ASSERT_TRUE(x == 1 || x == 2);
+    EXPECT_FLOAT_EQ(it.Value().GetValue(), x == 2 ? 0.0f : 1.0f);
+  }
+}
+
+TEST(LevelSetNeighborhoodExtractor, SeedsInsidePointsAcrossGridAlignedZeroContour)
+{
+  using ExtractorType = itk::LevelSetNeighborhoodExtractor<ImageType>;
+  auto extractor = ExtractorType::New();
+
+  extractor->SetInputLevelSet(MakeGridAlignedZeroLayerImage());
+  extractor->SetLevelSetValue(0.0);
+  extractor->NarrowBandingOff();
+  extractor->Locate();
+
+  const auto   insidePoints = extractor->GetInsidePoints();
+  unsigned int strictlyInsideSeeds = 0;
+  for (auto it = insidePoints->Begin(); it != insidePoints->End(); ++it)
+  {
+    if (it.Value().GetIndex()[0] == 1)
+    {
+      ++strictlyInsideSeeds;
+      EXPECT_FLOAT_EQ(it.Value().GetValue(), 1.0f);
+    }
+  }
+  EXPECT_EQ(strictlyInsideSeeds, 3u);
+}
+
+TEST(LevelSetNeighborhoodExtractor, SeedsBothMarchesFromNarrowBandExcludingZeroPixels)
+{
+  using ExtractorType = itk::LevelSetNeighborhoodExtractor<ImageType>;
+  using NodeContainerType = ExtractorType::NodeContainer;
+  using NodeType = ExtractorType::NodeType;
+
+  const auto image = MakeGridAlignedZeroLayerImage();
+
+  // Band holds only the strictly-negative and strictly-positive pixels
+  // bordering the zero layer; the exact-zero pixels are never visited.
+  auto         band = NodeContainerType::New();
+  unsigned int numberOfNodes = 0;
+  for (ImageType::IndexValueType y = 0; y < 3; ++y)
+  {
+    for (const ImageType::IndexValueType x : { 1, 3 })
+    {
+      const ImageType::IndexType index{ { x, y } };
+      NodeType                   node;
+      node.SetIndex(index);
+      node.SetValue(image->GetPixel(index));
+      band->InsertElement(numberOfNodes++, node);
+    }
+  }
+
+  auto extractor = ExtractorType::New();
+  extractor->SetInputLevelSet(image);
+  extractor->SetLevelSetValue(0.0);
+  extractor->NarrowBandingOn();
+  extractor->SetInputNarrowBand(band);
+  extractor->Locate();
+
+  const auto insidePoints = extractor->GetInsidePoints();
+  ASSERT_EQ(insidePoints->Size(), 3u);
+  for (auto it = insidePoints->Begin(); it != insidePoints->End(); ++it)
+  {
+    EXPECT_EQ(it.Value().GetIndex()[0], 1);
+    EXPECT_FLOAT_EQ(it.Value().GetValue(), 1.0f);
+  }
+
+  const auto outsidePoints = extractor->GetOutsidePoints();
+  ASSERT_EQ(outsidePoints->Size(), 3u);
+  for (auto it = outsidePoints->Begin(); it != outsidePoints->End(); ++it)
+  {
+    EXPECT_EQ(it.Value().GetIndex()[0], 3);
+    EXPECT_FLOAT_EQ(it.Value().GetValue(), 1.0f);
+  }
+}