2 files changed, 18 insertions, 19 deletions

diff --git a/editor/plugins/node_3d_editor_plugin.cpp b/editor/plugins/node_3d_editor_plugin.cpp
index 0a4dfd2e0d..ca5768b18f 100644
--- a/editor/plugins/node_3d_editor_plugin.cpp
+++ b/editor/plugins/node_3d_editor_plugin.cpp
@@ -2790,8 +2790,7 @@ void Node3DEditorViewport::_notification(int p_what) {
 				}
 
 				Transform3D t = sp->get_global_gizmo_transform();
-				VisualInstance3D *vi = Object::cast_to<VisualInstance3D>(sp);
-				AABB new_aabb = vi ? vi->get_aabb() : _calculate_spatial_bounds(sp);
+				AABB new_aabb = _calculate_spatial_bounds(sp);
 
 				exist = true;
 				if (se->last_xform == t && se->aabb == new_aabb && !se->last_xform_dirty) {
@@ -4087,35 +4086,35 @@ Vector3 Node3DEditorViewport::_get_instance_position(const Point2 &p_pos) const
 	return world_pos + world_ray * FALLBACK_DISTANCE;
 }
 
-AABB Node3DEditorViewport::_calculate_spatial_bounds(const Node3D *p_parent, bool p_exclude_top_level_transform) {
+AABB Node3DEditorViewport::_calculate_spatial_bounds(const Node3D *p_parent, const Node3D *p_top_level_parent) {
 	AABB bounds;
 
+	if (!p_top_level_parent) {
+		p_top_level_parent = p_parent;
+	}
+
+	if (!p_parent) {
+		return AABB(Vector3(-0.2, -0.2, -0.2), Vector3(0.4, 0.4, 0.4));
+	}
+
+	Transform3D xform_to_top_level_parent_space = p_top_level_parent->get_global_transform().affine_inverse() * p_parent->get_global_transform();
+
 	const VisualInstance3D *visual_instance = Object::cast_to<VisualInstance3D>(p_parent);
 	if (visual_instance) {
 		bounds = visual_instance->get_aabb();
+	} else {
+		bounds = AABB();
 	}
+	bounds = xform_to_top_level_parent_space.xform(bounds);
 
 	for (int i = 0; i < p_parent->get_child_count(); i++) {
 		Node3D *child = Object::cast_to<Node3D>(p_parent->get_child(i));
 		if (child) {
-			AABB child_bounds = _calculate_spatial_bounds(child, false);
-
-			if (bounds.size == Vector3() && p_parent) {
-				bounds = child_bounds;
-			} else {
-				bounds.merge_with(child_bounds);
-			}
+			AABB child_bounds = _calculate_spatial_bounds(child, p_top_level_parent);
+			bounds.merge_with(child_bounds);
 		}
 	}
 
-	if (bounds.size == Vector3() && !p_parent) {
-		bounds = AABB(Vector3(-0.2, -0.2, -0.2), Vector3(0.4, 0.4, 0.4));
-	}
-
-	if (!p_exclude_top_level_transform) {
-		bounds = p_parent->get_transform().xform(bounds);
-	}
-
 	return bounds;
 }
 
diff --git a/editor/plugins/node_3d_editor_plugin.h b/editor/plugins/node_3d_editor_plugin.h
index 455376b659..ed42e8e5ab 100644
--- a/editor/plugins/node_3d_editor_plugin.h
+++ b/editor/plugins/node_3d_editor_plugin.h
@@ -434,7 +434,7 @@ private:
 	Point2i _get_warped_mouse_motion(const Ref<InputEventMouseMotion> &p_ev_mouse_motion) const;
 
 	Vector3 _get_instance_position(const Point2 &p_pos) const;
-	static AABB _calculate_spatial_bounds(const Node3D *p_parent, bool p_exclude_top_level_transform = true);
+	static AABB _calculate_spatial_bounds(const Node3D *p_parent, const Node3D *p_top_level_parent = nullptr);
 
 	Node *_sanitize_preview_node(Node *p_node) const;