diff --git a/scripts/system/controllers/handControllerGrab.js b/scripts/system/controllers/handControllerGrab.js
index 39d85f1224..31f8ebd73f 100644
--- a/scripts/system/controllers/handControllerGrab.js
+++ b/scripts/system/controllers/handControllerGrab.js
@@ -10,9 +10,10 @@
 //
 //  Distributed under the Apache License, Version 2.0.
 //  See the accompanying file LICENSE or http://www.apache.org/licenses/LICENSE-2.0.html
-/*global print, MyAvatar, Entities, AnimationCache, SoundCache, Scene, Camera, Overlays, Audio, HMD, AvatarList, AvatarManager, Controller, UndoStack, Window, Account, GlobalServices, Script, ScriptDiscoveryService, LODManager, Menu, Vec3, Quat, AudioDevice, Paths, Clipboard, Settings, XMLHttpRequest, Reticle, Messages, setEntityCustomData, getEntityCustomData, vec3toStr */
+/*global print, MyAvatar, Entities, AnimationCache, SoundCache, Scene, Camera, Overlays, Audio, HMD, AvatarList, AvatarManager, Controller, UndoStack, Window, Account, GlobalServices, Script, ScriptDiscoveryService, LODManager, Menu, Vec3, Quat, AudioDevice, Paths, Clipboard, Settings, XMLHttpRequest, Reticle, Messages, setEntityCustomData, getEntityCustomData, vec3toStr, Xform */
 
 Script.include("/~/system/libraries/utils.js");
+Script.include("../libraries/Xform.js");
 
 //
 // add lines where the hand ray picking is happening
@@ -879,21 +880,29 @@ function MyController(hand) {
         var entities = Entities.findEntities(MyAvatar.position, HOTSPOT_DRAW_DISTANCE);
         var i, l = entities.length;
         for (i = 0; i < l; i++) {
-            var grabProps = Entities.getEntityProperties(entities[i], GRABBABLE_PROPERTIES);
+            var props = Entities.getEntityProperties(entities[i], GRABBABLE_PROPERTIES);
             // does this entity have an attach point?
             var wearableData = getEntityCustomData("wearable", entities[i], undefined);
             if (wearableData && wearableData.joints) {
                 var handJointName = this.hand === RIGHT_HAND ? "RightHand" : "LeftHand";
                 if (wearableData.joints[handJointName]) {
+                    var handOffsetPos = wearableData.joints[handJointName][0];
+                    var handOffsetRot = wearableData.joints[handJointName][1];
+
+                    var handOffsetXform = new Xform(handOffsetRot, handOffsetPos);
+                    var objectXform = new Xform(props.rotation, props.position);
+                    var overlayXform = Xform.mul(objectXform, handOffsetXform.inv());
+
                     // draw the hotspot
                     this.equipHotspotOverlays.push(Overlays.addOverlay("sphere", {
-                        position: grabProps.position,
+                        rotation: overlayXform.rot,
+                        position: overlayXform.pos,
                         size: 0.2,
                         color: { red: 90, green: 255, blue: 90 },
                         alpha: 0.7,
                         solid: true,
                         visible: true,
-                        ignoreRayIntersection: false,
+                        ignoreRayIntersection: true,
                         drawInFront: false
                     }));
                 }
diff --git a/scripts/system/libraries/Xform.js b/scripts/system/libraries/Xform.js
new file mode 100644
index 0000000000..75051c4983
--- /dev/null
+++ b/scripts/system/libraries/Xform.js
@@ -0,0 +1,40 @@
+//
+//  Created by Anthony J. Thibault on 2016/06/21
+//  Copyright 2016 High Fidelity, Inc.
+//
+//  Distributed under the Apache License, Version 2.0.
+//  See the accompanying file LICENSE or http://www.apache.org/licenses/LICENSE-2.0.html
+//
+
+// ctor
+Xform = function(rot, pos) {
+    this.rot = rot;
+    this.pos = pos;
+}
+
+Xform.ident = function() {
+    return new Xform({x: 0, y: 0, z: 0, w: 1}, {x: 0, y: 0, z: 0});
+};
+
+Xform.mul = function(lhs, rhs) {
+    var rot = Quat.multiply(lhs.rot, rhs.rot);
+    var pos = Vec3.sum(lhs.pos, Vec3.multiplyQbyV(lhs.rot, rhs.pos));
+    return new Xform(rot, pos);
+};
+
+Xform.prototype.inv = function() {
+    var invRot = Quat.inverse(this.rot);
+    var invPos = Vec3.multiply(-1, this.pos);
+    return new Xform(invRot, Vec3.multiplyQbyV(invRot, invPos));
+};
+
+Xform.prototype.mirrorX = function() {
+    return new Xform({x: this.rot.x, y: -this.rot.y, z: -this.rot.z, w: this.rot.w},
+                     {x: -this.pos.x, y: this.pos.y, z: this.pos.z});
+};
+
+Xform.prototype.toString = function() {
+    var rot = this.rot;
+    var pos = this.pos;
+    return "Xform rot = (" + rot.x + ", " + rot.y + ", " + rot.z + ", " + rot.w + "), pos = (" + pos.x + ", " + pos.y + ", " + pos.z + ")";
+};