diff --git a/MOULOpenSourceClientPlugin/Plasma20/Sources/Plasma/PubUtilLib/plAvatar/plPhysicalControllerCore.cpp b/MOULOpenSourceClientPlugin/Plasma20/Sources/Plasma/PubUtilLib/plAvatar/plPhysicalControllerCore.cpp
index 60ac3f14..516b1cca 100644
--- a/MOULOpenSourceClientPlugin/Plasma20/Sources/Plasma/PubUtilLib/plAvatar/plPhysicalControllerCore.cpp
+++ b/MOULOpenSourceClientPlugin/Plasma20/Sources/Plasma/PubUtilLib/plAvatar/plPhysicalControllerCore.cpp
@@ -195,20 +195,37 @@ void plPhysicalControllerCore::IUpdateNonPhysical(hsScalar alpha)
 	const hsMatrix44& l2w = so->GetCoordinateInterface()->GetLocalToWorld();
 	if (CompareMatrices(fLastGlobalLoc, l2w, 0.0001f))
 	{
-		hsVector3 displacement = (hsVector3)(fLocalPosition - fLastLocalPosition);
-		hsPoint3 interpLocalPos = fLastLocalPosition + (displacement * alpha);
-
-		fLocalRotation.MakeMatrix(&fLastGlobalLoc);
-		fLastGlobalLoc.SetTranslate(&interpLocalPos);
-		const plCoordinateInterface* subworldCI = GetSubworldCI();
-		if (subworldCI)
+		if (fEnabled)
 		{
-			const hsMatrix44& subL2W = subworldCI->GetLocalToWorld();
-			fLastGlobalLoc = subL2W * fLastGlobalLoc;
-			fPrevSubworldW2L = subworldCI->GetWorldToLocal();
+			hsVector3 displacement = (hsVector3)(fLocalPosition - fLastLocalPosition);
+			hsPoint3 interpLocalPos = fLastLocalPosition + (displacement * alpha);
+
+			fLocalRotation.MakeMatrix(&fLastGlobalLoc);
+			fLastGlobalLoc.SetTranslate(&interpLocalPos);
+			const plCoordinateInterface* subworldCI = GetSubworldCI();
+			if (subworldCI)
+			{
+				const hsMatrix44& subL2W = subworldCI->GetLocalToWorld();
+				fLastGlobalLoc = subL2W * fLastGlobalLoc;
+				fPrevSubworldW2L = subworldCI->GetWorldToLocal();
+			}
+
+			ISendCorrectionMessages();
 		}
+		else
+		{
+			// Update global location if in a subworld
+			const plCoordinateInterface* subworldCI = GetSubworldCI();
+			if (subworldCI)
+			{
+				hsMatrix44 l2s = fPrevSubworldW2L * fLastGlobalLoc;
+				const hsMatrix44& subL2W = subworldCI->GetLocalToWorld();
+				fLastGlobalLoc = subL2W * l2s;
+				fPrevSubworldW2L = subworldCI->GetWorldToLocal();
 
-		ISendCorrectionMessages();
+				ISendCorrectionMessages();
+			}
+		}
 	}
 }