diff --git a/libraries/entities/src/EntityItem.cpp b/libraries/entities/src/EntityItem.cpp
index fc3bc38e14..dc017f81e6 100644
--- a/libraries/entities/src/EntityItem.cpp
+++ b/libraries/entities/src/EntityItem.cpp
@@ -658,6 +658,9 @@ int EntityItem::readEntityDataFromBuffer(const unsigned char* data, int bytesLef
         if (_simulationOwner.set(newSimOwner)) {
             _dirtyFlags |= Simulation::DIRTY_SIMULATOR_ID;
             somethingChanged = true;
+            // recompute weOwnSimulation so that if this is the packet that tells use we are the owner,
+            // we ignore the physics changes from this packet.
+            weOwnSimulation = _simulationOwner.matchesValidID(myNodeID);
         }
     }
     {   // When we own the simulation we don't accept updates to the entity's transform/velocities