diff --git a/interface/src/Application.cpp b/interface/src/Application.cpp
index a1cd79e9c1..d2a7014164 100644
--- a/interface/src/Application.cpp
+++ b/interface/src/Application.cpp
@@ -6669,7 +6669,9 @@ void Application::addAssetToWorldAddEntity(QString filePath, QString mapping) {
     properties.setShapeType(SHAPE_TYPE_SIMPLE_COMPOUND);
     properties.setCollisionless(true);  // Temporarily set so that doesn't collide with avatar.
     properties.setVisible(false);  // Temporarily set so that don't see at large unresized dimensions.
-    properties.setPosition(getMyAvatar()->getPosition() + getMyAvatar()->getOrientation() * glm::vec3(0.0f, 0.0f, -2.0f));
+    glm::vec3 positionOffset = getMyAvatar()->getOrientation() * (getMyAvatar()->getSensorToWorldScale() * glm::vec3(0.0f, 0.0f, -2.0f));
+    properties.setPosition(getMyAvatar()->getPosition() + positionOffset);
+    properties.setRotation(getMyAvatar()->getOrientation());
     properties.setGravity(glm::vec3(0.0f, 0.0f, 0.0f));
     auto entityID = DependencyManager::get<EntityScriptingInterface>()->addEntity(properties);
 
@@ -6716,7 +6718,7 @@ void Application::addAssetToWorldCheckModelSize() {
         if (dimensions != DEFAULT_DIMENSIONS) {
 
             // Scale model so that its maximum is exactly specific size.
-            const float MAXIMUM_DIMENSION = 1.0f;
+            const float MAXIMUM_DIMENSION = 1.0f * getMyAvatar()->getSensorToWorldScale();
             auto previousDimensions = dimensions;
             auto scale = std::min(MAXIMUM_DIMENSION / dimensions.x, std::min(MAXIMUM_DIMENSION / dimensions.y,
                 MAXIMUM_DIMENSION / dimensions.z));
diff --git a/interface/src/ui/PreferencesDialog.cpp b/interface/src/ui/PreferencesDialog.cpp
index fb451f6b0e..b8d4a38905 100644
--- a/interface/src/ui/PreferencesDialog.cpp
+++ b/interface/src/ui/PreferencesDialog.cpp
@@ -193,8 +193,8 @@ void setupPreferences() {
         preferences->addPreference(new PrimaryHandPreference(AVATAR_TUNING, "Dominant Hand", getter, setter));
     }
     {
-        auto getter = [=]()->float { return myAvatar->getModelScale(); };
-        auto setter = [=](float value) { myAvatar->setModelScale(value); };
+        auto getter = [=]()->float { return myAvatar->getTargetScale(); };
+        auto setter = [=](float value) { myAvatar->setTargetScale(value); };
         auto preference = new SpinnerSliderPreference(AVATAR_TUNING, "Avatar Scale", getter, setter);
         preference->setStep(0.05f);
         preference->setDecimals(2);
diff --git a/interface/src/ui/overlays/Overlays.cpp b/interface/src/ui/overlays/Overlays.cpp
index d6e0b61e7d..c93d225718 100644
--- a/interface/src/ui/overlays/Overlays.cpp
+++ b/interface/src/ui/overlays/Overlays.cpp
@@ -1045,6 +1045,7 @@ QVector<QUuid> Overlays::findOverlays(const glm::vec3& center, float radius) {
             AABox overlayFrameBox(low, dimensions);
 
             Transform overlayToWorldMatrix = overlay->getTransform();
+            overlayToWorldMatrix.setScale(1.0f);  // ignore inherited scale factor from parents
             glm::mat4 worldToOverlayMatrix = glm::inverse(overlayToWorldMatrix.getMatrix());
             glm::vec3 overlayFrameSearchPosition = glm::vec3(worldToOverlayMatrix * glm::vec4(center, 1.0f));
             glm::vec3 penetration;
diff --git a/libraries/avatars-renderer/src/avatars-renderer/Avatar.h b/libraries/avatars-renderer/src/avatars-renderer/Avatar.h
index 0f9a03d3de..c969de980f 100644
--- a/libraries/avatars-renderer/src/avatars-renderer/Avatar.h
+++ b/libraries/avatars-renderer/src/avatars-renderer/Avatar.h
@@ -232,6 +232,7 @@ public:
 
     void animateScaleChanges(float deltaTime);
     void setTargetScale(float targetScale) override;
+    float getTargetScale() const { return _targetScale; }
 
     Q_INVOKABLE float getSimulationRate(const QString& rateName = QString("")) const;
 
diff --git a/scripts/system/controllers/handControllerGrab.js b/scripts/system/controllers/handControllerGrab.js
index f66a8f976d..3bd503b5e7 100644
--- a/scripts/system/controllers/handControllerGrab.js
+++ b/scripts/system/controllers/handControllerGrab.js
@@ -2246,7 +2246,7 @@ function MyController(hand) {
             }
         }
 
-        var sensorScaleFactor = MyAvatar.sensorToWorldMatrix
+        var sensorScaleFactor = MyAvatar.sensorToWorldScale;
         var candidateEntities = Entities.findEntities(handPosition, NEAR_GRAB_RADIUS * sensorScaleFactor);
         var grabbableEntities = candidateEntities.filter(function(entity) {
             return _this.entityIsNearGrabbable(entity, handPosition, NEAR_GRAB_MAX_DISTANCE * sensorScaleFactor);