diff --git a/Content/Editor/MaterialTemplates/Terrain.shader b/Content/Editor/MaterialTemplates/Terrain.shader
index abc444316..63313e304 100644
--- a/Content/Editor/MaterialTemplates/Terrain.shader
+++ b/Content/Editor/MaterialTemplates/Terrain.shader
@@ -15,6 +15,7 @@
 #include "./Flax/Common.hlsl"
 #include "./Flax/MaterialCommon.hlsl"
 #include "./Flax/GBufferCommon.hlsl"
+#include "./Flax/TerrainCommon.hlsl"
 @7
 // Primary constant buffer (with additional material parameters)
 META_CB_BEGIN(0, Data)
@@ -334,7 +335,7 @@ VertexOutput VS(TerrainVertexInput input)
 	float lodValue = CurrentLOD;
 	float morphAlpha = lodCalculated - CurrentLOD;
 
-	// Sample heightmap
+	// Sample heightmap and splatmaps
 	float2 heightmapUVs = input.TexCoord * HeightmapUVScaleBias.xy + HeightmapUVScaleBias.zw;
 #if USE_SMOOTH_LOD_TRANSITION
 	float4 heightmapValueThisLOD = Heightmap.SampleLevel(SamplerPointClamp, heightmapUVs, lodValue);
@@ -342,7 +343,6 @@ VertexOutput VS(TerrainVertexInput input)
 	float2 heightmapUVsNextLOD = nextLODPos * HeightmapUVScaleBias.xy + HeightmapUVScaleBias.zw;
 	float4 heightmapValueNextLOD = Heightmap.SampleLevel(SamplerPointClamp, heightmapUVsNextLOD, lodValue + 1);
 	float4 heightmapValue = lerp(heightmapValueThisLOD, heightmapValueNextLOD, morphAlpha);
-	bool isHole = max(heightmapValueThisLOD.b + heightmapValueThisLOD.a, heightmapValueNextLOD.b + heightmapValueNextLOD.a) >= 1.9f;
 #if USE_TERRAIN_LAYERS
 	float4 splatmapValueThisLOD = Splatmap0.SampleLevel(SamplerPointClamp, heightmapUVs, lodValue);
 	float4 splatmapValueNextLOD = Splatmap0.SampleLevel(SamplerPointClamp, heightmapUVsNextLOD, lodValue + 1);
@@ -355,7 +355,6 @@ VertexOutput VS(TerrainVertexInput input)
 #endif
 #else
 	float4 heightmapValue = Heightmap.SampleLevel(SamplerPointClamp, heightmapUVs, lodValue);
-	bool isHole = (heightmapValue.b + heightmapValue.a) >= 1.9f;
 #if USE_TERRAIN_LAYERS
 	float4 splatmap0Value = Splatmap0.SampleLevel(SamplerPointClamp, heightmapUVs, lodValue);
 #if TERRAIN_LAYERS_DATA_SIZE > 1
@@ -363,12 +362,11 @@ VertexOutput VS(TerrainVertexInput input)
 #endif
 #endif
 #endif
-	float height = (float)((int)(heightmapValue.x * 255.0) + ((int)(heightmapValue.y * 255) << 8)) / 65535.0;
+	float height = DecodeHeightmapHeight(heightmapValue);
 
 	// Extract normal and the holes mask
-	float2 normalTemp = float2(heightmapValue.b, heightmapValue.a) * 2.0f - 1.0f;
-	float3 normal = float3(normalTemp.x, sqrt(1.0 - saturate(dot(normalTemp, normalTemp))), normalTemp.y);
-	normal = normalize(normal);
+	bool isHole;
+	float3 normal = DecodeHeightmapNormal(heightmapValue, isHole);
 	output.Geometry.HolesMask = isHole ? 0 : 1;
 	if (isHole)
 	{
diff --git a/Source/Engine/Visject/ShaderGraph.cpp b/Source/Engine/Visject/ShaderGraph.cpp
index ef4f53cf9..b6616d159 100644
--- a/Source/Engine/Visject/ShaderGraph.cpp
+++ b/Source/Engine/Visject/ShaderGraph.cpp
@@ -286,7 +286,7 @@ void ShaderGenerator::ProcessGroupMath(Box* box, Node* node, Value& value)
     case 29:
     {
         Value inXY = tryGetValue(node->GetBox(0), Value::Zero).AsFloat2();
-        value = writeLocal(ValueType::Float3, String::Format(TEXT("float3({0}, sqrt(saturate(1.0 - dot({0}.xy, {0}.xy))))"), inXY.Value), node);
+        value = writeLocal(ValueType::Float3, String::Format(TEXT("float3({0}, sqrt(saturate(1.0 - dot({0}, {0}))))"), inXY.Value), node);
         break;
     }
     // Mad
diff --git a/Source/Shaders/TerrainCommon.hlsl b/Source/Shaders/TerrainCommon.hlsl
index a4db9bd4f..0c2f57168 100644
--- a/Source/Shaders/TerrainCommon.hlsl
+++ b/Source/Shaders/TerrainCommon.hlsl
@@ -5,28 +5,30 @@
 
 #include "./Flax/Common.hlsl"
 
+float DecodeHeightmapHeight(float4 value)
+{
+    return (float)((int)(value.x * 255.0) + ((int)(value.y * 255) << 8)) / 65535.0;
+}
+
+float3 DecodeHeightmapNormal(float4 value, out bool isHole)
+{
+	isHole = (value.b + value.a) >= 1.9f;
+    float2 normalTemp = float2(value.b, value.a) * 2.0f - 1.0f;
+    float3 normal = float3(normalTemp.x, sqrt(1.0 - saturate(dot(normalTemp, normalTemp))), normalTemp.y);
+    return normalize(normal);
+}
+
 float SampleHeightmap(Texture2D<float4> heightmap, float2 uv, float mipOffset = 0.0f)
 {
-    // Sample heightmap
 	float4 value = heightmap.SampleLevel(SamplerPointClamp, uv, mipOffset);
-
-    // Decode heightmap
-	float height = (float)((int)(value.x * 255.0) + ((int)(value.y * 255) << 8)) / 65535.0;
-    return height;
+    return DecodeHeightmapHeight(value);
 }
 
 float SampleHeightmap(Texture2D<float4> heightmap, float2 uv, out float3 normal, out bool isHole, float mipOffset = 0.0f)
 {
-    // Sample heightmap
 	float4 value = heightmap.SampleLevel(SamplerPointClamp, uv, mipOffset);
-
-    // Decode heightmap
-	float height = (float)((int)(value.x * 255.0) + ((int)(value.y * 255) << 8)) / 65535.0;
-    float2 normalTemp = float2(value.b, value.a) * 2.0f - 1.0f;
-    normal = float3(normalTemp.x, sqrt(1.0 - saturate(dot(normalTemp, normalTemp))), normalTemp.y);
-	isHole = (value.b + value.a) >= 1.9f;
-    normal = normalize(normal);
-    return height;
+    normal = DecodeHeightmapNormal(value, isHole);
+    return DecodeHeightmapHeight(value);
 }
 
 float3 SampleHeightmap(Texture2D<float4> heightmap, float3 localPosition, float4 localToUV, out float3 normal, out bool isHole, float mipOffset = 0.0f)
@@ -36,12 +38,9 @@ float3 SampleHeightmap(Texture2D<float4> heightmap, float3 localPosition, float4
 	float4 value = heightmap.SampleLevel(SamplerPointClamp, uv, mipOffset);
 
     // Decode heightmap
-	isHole = (value.b + value.a) >= 1.9f;
-	float height = (float)((int)(value.x * 255.0) + ((int)(value.y * 255) << 8)) / 65535.0;
+    normal = DecodeHeightmapNormal(value, isHole);
+	float height = DecodeHeightmapHeight(value);;
 	float3 position = float3(localPosition.x, height, localPosition.z);
-    float2 normalTemp = float2(value.b, value.a) * 2.0f - 1.0f;
-    normal = float3(normalTemp.x, sqrt(1.0 - saturate(dot(normalTemp, normalTemp))), normalTemp.y);
-    normal = normalize(normal);
 
     // UVs outside the heightmap are empty
     isHole = isHole || any(uv < 0.0f) || any(uv > 1.0f);