diff --git a/interface/src/ui/overlays/ContextOverlayInterface.cpp b/interface/src/ui/overlays/ContextOverlayInterface.cpp
index 80c5665127..7f20ced1c3 100644
--- a/interface/src/ui/overlays/ContextOverlayInterface.cpp
+++ b/interface/src/ui/overlays/ContextOverlayInterface.cpp
@@ -41,7 +41,12 @@ bool ContextOverlayInterface::createOrDestroyContextOverlay(const EntityItemID&
     if (_enabled && event.getButton() == PointerEvent::SecondaryButton) {
 
         EntityItemProperties entityProperties = _entityScriptingInterface->getEntityProperties(entityItemID, _entityPropertyFlags);
-        glm::vec3 position = entityProperties.getPosition();
+        glm::vec3 bbPosition = entityProperties.getPosition();
+        glm::vec3 dimensions = entityProperties.getDimensions();
+        if (entityProperties.getRegistrationPoint() != glm::vec3(0.5f)) {
+            glm::vec3 adjustPos = entityProperties.getRegistrationPoint() - glm::vec3(0.5f);
+            bbPosition = bbPosition - (entityProperties.getRotation() * glm::vec3(adjustPos.x*dimensions.x, adjustPos.y*dimensions.y, adjustPos.z*dimensions.z));
+        }
         if (entityProperties.getMarketplaceID().length() != 0) {
             qCDebug(context_overlay) << "Creating Context Overlay on top of entity with ID: " << entityItemID;
             _entityMarketplaceID = entityProperties.getMarketplaceID();
@@ -58,7 +63,7 @@ bool ContextOverlayInterface::createOrDestroyContextOverlay(const EntityItemID&
             }
             _bbOverlay->setDimensions(entityProperties.getDimensions());
             _bbOverlay->setRotation(entityProperties.getRotation());
-            _bbOverlay->setPosition(position);
+            _bbOverlay->setPosition(bbPosition);
             _bbOverlay->setVisible(true);
 
             if (_contextOverlayID == UNKNOWN_OVERLAY_ID || !qApp->getOverlays().isAddedOverlay(_contextOverlayID)) {
@@ -71,7 +76,6 @@ bool ContextOverlayInterface::createOrDestroyContextOverlay(const EntityItemID&
                 _contextOverlay->setDrawInFront(true);
                 _contextOverlay->setURL("http://i.imgur.com/gksZygp.png");
                 _contextOverlay->setIsFacingAvatar(true);
-                _contextOverlay->setParentID(entityItemID);
                 _contextOverlayID = qApp->getOverlays().addOverlay(_contextOverlay);
             }
             glm::vec3 cameraPosition = qApp->getCamera().getPosition();