diff --git a/Source/Engine/Level/Actors/AnimatedModel.cpp b/Source/Engine/Level/Actors/AnimatedModel.cpp
index f9440dac9..66931cc7d 100644
--- a/Source/Engine/Level/Actors/AnimatedModel.cpp
+++ b/Source/Engine/Level/Actors/AnimatedModel.cpp
@@ -537,6 +537,12 @@ void AnimatedModel::UpdateBounds()
             // No animation asset applied
             _box = SkinnedModel->GetBox(_transform.GetWorld());
         }
+
+        // Apply margin based on model dimensions
+        const Vector3 modelBoxSize = SkinnedModel->GetBox(_transform.GetWorld()).GetSize();
+        const Vector3 center = _box.GetCenter();
+        const Vector3 sizeHalf = Vector3::Max(_box.GetSize() + modelBoxSize * 0.2f, modelBoxSize) * 0.5f;
+        _box = BoundingBox(center - sizeHalf, center + sizeHalf);
     }
     else
     {