diff --git a/interface/src/Application.cpp b/interface/src/Application.cpp
index 7e88ea28dc..47d008aa69 100644
--- a/interface/src/Application.cpp
+++ b/interface/src/Application.cpp
@@ -3228,7 +3228,9 @@ void Application::update(float deltaTime) {
     controller::Pose leftHandPose = userInputMapper->getPoseState(controller::Action::LEFT_HAND);
     controller::Pose rightHandPose = userInputMapper->getPoseState(controller::Action::RIGHT_HAND);
     auto myAvatarMatrix = createMatFromQuatAndPos(myAvatar->getOrientation(), myAvatar->getPosition());
-    myAvatar->setHandControllerPosesInWorldFrame(leftHandPose.transform(myAvatarMatrix), rightHandPose.transform(myAvatarMatrix));
+    auto worldToSensorMatrix = glm::inverse(myAvatar->getSensorToWorldMatrix());
+    auto avatarToSensorMatrix = worldToSensorMatrix * myAvatarMatrix;
+    myAvatar->setHandControllerPosesInSensorFrame(leftHandPose.transform(avatarToSensorMatrix), rightHandPose.transform(avatarToSensorMatrix));
 
     updateThreads(deltaTime); // If running non-threaded, then give the threads some time to process...
     updateDialogs(deltaTime); // update various stats dialogs if present
@@ -3315,6 +3317,9 @@ void Application::update(float deltaTime) {
 
         qApp->updateMyAvatarLookAtPosition();
 
+        // update sensorToWorldMatrix for camera and hand controllers
+        myAvatar->updateSensorToWorldMatrix();
+
         avatarManager->updateMyAvatar(deltaTime);
     }
 
@@ -3374,9 +3379,6 @@ void Application::update(float deltaTime) {
             QMetaObject::invokeMethod(DependencyManager::get<AudioClient>().data(), "sendDownstreamAudioStatsPacket", Qt::QueuedConnection);
         }
     }
-
-    // update sensorToWorldMatrix for rendering camera.
-    myAvatar->updateSensorToWorldMatrix();
 }
 
 
diff --git a/interface/src/avatar/MyAvatar.cpp b/interface/src/avatar/MyAvatar.cpp
index 4405204b47..8f11c635e9 100644
--- a/interface/src/avatar/MyAvatar.cpp
+++ b/interface/src/avatar/MyAvatar.cpp
@@ -418,7 +418,7 @@ void MyAvatar::updateFromHMDSensorMatrix(const glm::mat4& hmdSensorMatrix) {
     _hmdSensorFacing = getFacingDir2D(_hmdSensorOrientation);
 }
 
-// best called at end of main loop, just before rendering.
+// best called at end of main loop, after physics.
 // update sensor to world matrix from current body position and hmd sensor.
 // This is so the correct camera can be used for rendering.
 void MyAvatar::updateSensorToWorldMatrix() {
@@ -1087,24 +1087,32 @@ static controller::Pose applyLowVelocityFilter(const controller::Pose& oldPose,
     return finalPose;
 }
 
-void MyAvatar::setHandControllerPosesInWorldFrame(const controller::Pose& left, const controller::Pose& right) {
+void MyAvatar::setHandControllerPosesInSensorFrame(const controller::Pose& left, const controller::Pose& right) {
     if (controller::InputDevice::getLowVelocityFilter()) {
-        auto oldLeftPose = getLeftHandControllerPoseInWorldFrame();
-        auto oldRightPose = getRightHandControllerPoseInWorldFrame();
-        _leftHandControllerPoseInWorldFrameCache.set(applyLowVelocityFilter(oldLeftPose, left));
-        _rightHandControllerPoseInWorldFrameCache.set(applyLowVelocityFilter(oldRightPose, right));
+        auto oldLeftPose = getLeftHandControllerPoseInSensorFrame();
+        auto oldRightPose = getRightHandControllerPoseInSensorFrame();
+        _leftHandControllerPoseInSensorFrameCache.set(applyLowVelocityFilter(oldLeftPose, left));
+        _rightHandControllerPoseInSensorFrameCache.set(applyLowVelocityFilter(oldRightPose, right));
     } else {
-        _leftHandControllerPoseInWorldFrameCache.set(left);
-        _rightHandControllerPoseInWorldFrameCache.set(right);
+        _leftHandControllerPoseInSensorFrameCache.set(left);
+        _rightHandControllerPoseInSensorFrameCache.set(right);
     }
 }
 
+controller::Pose MyAvatar::getLeftHandControllerPoseInSensorFrame() const {
+    return _leftHandControllerPoseInSensorFrameCache.get();
+}
+
+controller::Pose MyAvatar::getRightHandControllerPoseInSensorFrame() const {
+    return _rightHandControllerPoseInSensorFrameCache.get();
+}
+
 controller::Pose MyAvatar::getLeftHandControllerPoseInWorldFrame() const {
-    return _leftHandControllerPoseInWorldFrameCache.get();
+    return _leftHandControllerPoseInSensorFrameCache.get().transform(getSensorToWorldMatrix());
 }
 
 controller::Pose MyAvatar::getRightHandControllerPoseInWorldFrame() const {
-    return _rightHandControllerPoseInWorldFrameCache.get();
+    return _rightHandControllerPoseInSensorFrameCache.get().transform(getSensorToWorldMatrix());
 }
 
 controller::Pose MyAvatar::getLeftHandControllerPoseInAvatarFrame() const {
diff --git a/interface/src/avatar/MyAvatar.h b/interface/src/avatar/MyAvatar.h
index 3554d9b8bc..92bf9e7614 100644
--- a/interface/src/avatar/MyAvatar.h
+++ b/interface/src/avatar/MyAvatar.h
@@ -247,7 +247,9 @@ public:
 
     virtual void rebuildCollisionShape() override;
 
-    void setHandControllerPosesInWorldFrame(const controller::Pose& left, const controller::Pose& right);
+    void setHandControllerPosesInSensorFrame(const controller::Pose& left, const controller::Pose& right);
+    controller::Pose getLeftHandControllerPoseInSensorFrame() const;
+    controller::Pose getRightHandControllerPoseInSensorFrame() const;
     controller::Pose getLeftHandControllerPoseInWorldFrame() const;
     controller::Pose getRightHandControllerPoseInWorldFrame() const;
     controller::Pose getLeftHandControllerPoseInAvatarFrame() const;
@@ -451,9 +453,9 @@ private:
     bool _hoverReferenceCameraFacingIsCaptured { false };
     glm::vec3 _hoverReferenceCameraFacing { 0.0f, 0.0f, -1.0f }; // hmd sensor space
 
-    // These are stored in WORLD frame
-    ThreadSafeValueCache<controller::Pose> _leftHandControllerPoseInWorldFrameCache { controller::Pose() };
-    ThreadSafeValueCache<controller::Pose> _rightHandControllerPoseInWorldFrameCache { controller::Pose() };
+    // These are stored in SENSOR frame
+    ThreadSafeValueCache<controller::Pose> _leftHandControllerPoseInSensorFrameCache { controller::Pose() };
+    ThreadSafeValueCache<controller::Pose> _rightHandControllerPoseInSensorFrameCache { controller::Pose() };
 
     float AVATAR_MOVEMENT_ENERGY_CONSTANT { 0.001f };
     float AUDIO_ENERGY_CONSTANT { 0.000001f };