diff --git a/plugins/hifiLeapMotion/src/LeapMotionPlugin.cpp b/plugins/hifiLeapMotion/src/LeapMotionPlugin.cpp
index 4d2cc474bd..34913cb415 100644
--- a/plugins/hifiLeapMotion/src/LeapMotionPlugin.cpp
+++ b/plugins/hifiLeapMotion/src/LeapMotionPlugin.cpp
@@ -68,7 +68,7 @@ void LeapMotionPlugin::init() {
         auto setter = [this](QString value) {
             _sensorLocation = value;
             saveSettings();
-            // TODO: Apply setting value.
+            applySensorLocation();
         };
         auto preference = new ComboBoxPreference(LEAPMOTION_PLUGIN, "Sensor location", getter, setter);
         QStringList list = { SENSOR_ON_DESKTOP, SENSOR_ON_HMD };
@@ -113,6 +113,7 @@ void LeapMotionPlugin::loadSettings() {
     {
         _enabled = settings.value(SETTINGS_ENABLED_KEY, QVariant(DEFAULT_ENABLED)).toBool();
         _sensorLocation = settings.value(SETTINGS_SENSOR_LOCATION_KEY, QVariant(DEFAULT_SENSOR_LOCATION)).toString();
+        applySensorLocation();
     }
     settings.endGroup();
 }
@@ -120,3 +121,11 @@ void LeapMotionPlugin::loadSettings() {
 void LeapMotionPlugin::InputDevice::clearState() {
     // TODO
 }
+
+void LeapMotionPlugin::applySensorLocation() {
+    if (_sensorLocation == SENSOR_ON_HMD) {
+        _controller.setPolicyFlags(Leap::Controller::POLICY_OPTIMIZE_HMD);
+    } else {
+        _controller.setPolicyFlags(Leap::Controller::POLICY_DEFAULT);
+    }
+}
diff --git a/plugins/hifiLeapMotion/src/LeapMotionPlugin.h b/plugins/hifiLeapMotion/src/LeapMotionPlugin.h
index 60b476a443..7db4f4d8d7 100644
--- a/plugins/hifiLeapMotion/src/LeapMotionPlugin.h
+++ b/plugins/hifiLeapMotion/src/LeapMotionPlugin.h
@@ -59,6 +59,8 @@ protected:
     std::shared_ptr<InputDevice> _inputDevice{ std::make_shared<InputDevice>() };
 
 private:
+    void applySensorLocation();
+
     Leap::Controller _controller;
 
 };