diff --git a/Source/Editor/Gizmo/TransformGizmo.cs b/Source/Editor/Gizmo/TransformGizmo.cs
index 4918743ce..64f969990 100644
--- a/Source/Editor/Gizmo/TransformGizmo.cs
+++ b/Source/Editor/Gizmo/TransformGizmo.cs
@@ -263,6 +263,8 @@ namespace FlaxEditor.Gizmo
             // Note: because selection may contain objects and their children we have to split them and get only parents.
             // Later during transformation we apply translation/scale/rotation only on them (children inherit transformations)
             SceneGraphTools.BuildNodesParents(_selection, _selectionParents);
+
+            base.OnSelectionChanged(newSelection);
         }
 
         /// <inheritdoc />
diff --git a/Source/Editor/Gizmo/TransformGizmoBase.cs b/Source/Editor/Gizmo/TransformGizmoBase.cs
index 99b1c8122..81f76d392 100644
--- a/Source/Editor/Gizmo/TransformGizmoBase.cs
+++ b/Source/Editor/Gizmo/TransformGizmoBase.cs
@@ -437,8 +437,6 @@ namespace FlaxEditor.Gizmo
                     {
                     case Mode.Translate:
                         UpdateTranslateScale();
-                        if (Owner.SnapToVertex)
-                            UpdateVertexSnapping();
                         break;
                     case Mode.Scale:
                         UpdateTranslateScale();
@@ -447,6 +445,8 @@ namespace FlaxEditor.Gizmo
                         UpdateRotate(dt);
                         break;
                     }
+                    if (Owner.SnapToVertex)
+                        UpdateVertexSnapping();
                 }
                 else
                 {
@@ -553,41 +553,21 @@ namespace FlaxEditor.Gizmo
             for (int i = 0; i < SelectionCount; i++)
             {
                 var obj = GetSelectedObject(i);
-                if (obj.CanVertexSnap && obj.RayCastSelf(ref ray, out var distance, out _) && distance < closestDistance)
+                if (obj.RayCastSelf(ref ray, out var distance, out _) && distance < closestDistance)
                 {
                     closestDistance = distance;
                     closestObject = obj;
                 }
             }
             if (closestObject == null)
-            {
-                // Find the closest object in selection (in case ray didn't hit anything)
-                for (int i = 0; i < SelectionCount; i++)
-                {
-                    var obj = GetSelectedObject(i);
-                    if (obj.CanVertexSnap)
-                    {
-                        GetSelectedObjectsBounds(out var bounds, out _);
-                        CollisionsHelper.ClosestPointBoxPoint(ref bounds, ref ray.Ray.Position, out var point);
-                        var distance = Vector3.Distance(ref point, ref ray.Ray.Position);
-                        if (distance < closestDistance)
-                        {
-                            closestDistance = distance;
-                            closestObject = obj;
-                        }
-                    }
-                }
-            }
-            _vertexSnapObject = closestObject;
-            if (closestObject == null)
-                return;
+                return; // ignore it if there is nothing under the mouse closestObject is only null if ray caster missed everything or Selection Count == 0
 
-            // Find the closest vertex to bounding box point (collision detection approximation)
-            var closestPoint = ray.Ray.GetPoint(closestDistance);
-            if (!closestObject.OnVertexSnap(ref closestPoint, out _vertexSnapPoint))
+            _vertexSnapObject = closestObject;
+            if (!closestObject.OnVertexSnap(ref ray.Ray, closestDistance, out _vertexSnapPoint))
             {
-                // Failed to get the closest point
-                _vertexSnapPoint = closestPoint;
+                // The OnVertexSnap is unimplemented or failed to get point return because there is nothing to do
+                _vertexSnapPoint = Vector3.Zero;
+                return;
             }
 
             // Transform back to the local space of the object to work when moving it
@@ -619,12 +599,11 @@ namespace FlaxEditor.Gizmo
             for (int i = 0; i < SelectionCount; i++)
                 rayCast.ExcludeObjects.Add(GetSelectedObject(i));
             var hit = Owner.SceneGraphRoot.RayCast(ref rayCast, out var distance, out var _);
-            if (hit != null && hit.CanVertexSnap)
+            if (hit != null)
             {
-                var point = rayCast.Ray.GetPoint(distance);
-                if (hit.OnVertexSnap(ref point, out var pointSnapped) 
+                if (hit.OnVertexSnap(ref rayCast.Ray, distance, out var pointSnapped)
                     //&& Vector3.Distance(point, pointSnapped) <= 25.0f
-                    )
+                   )
                 {
                     _vertexSnapObjectTo = hit;
                     _vertexSnapPointTo = hit.Transform.WorldToLocal(pointSnapped);
@@ -712,5 +691,12 @@ namespace FlaxEditor.Gizmo
         protected virtual void OnDuplicate()
         {
         }
+
+        /// <inheritdoc />
+        public override void OnSelectionChanged(List<SceneGraphNode> newSelection)
+        {
+            EndVertexSnapping();
+            UpdateGizmoPosition();
+        }
     }
 }
diff --git a/Source/Editor/SceneGraph/Actors/StaticModelNode.cs b/Source/Editor/SceneGraph/Actors/StaticModelNode.cs
index f1ab36041..1c09691e5 100644
--- a/Source/Editor/SceneGraph/Actors/StaticModelNode.cs
+++ b/Source/Editor/SceneGraph/Actors/StaticModelNode.cs
@@ -24,19 +24,22 @@ namespace FlaxEditor.SceneGraph.Actors
         {
         }
 
+
         /// <inheritdoc />
-        public override bool OnVertexSnap(ref Vector3 point, out Vector3 result)
+        public override bool OnVertexSnap(ref Ray ray, float hitDistance, out Vector3 result)
         {
-            result = point;
+            // Find the closest vertex to bounding box point (collision detection approximation)
+            result = ray.GetPoint(hitDistance);
             var model = ((StaticModel)Actor).Model;
             if (model && !model.WaitForLoaded())
             {
                 // TODO: move to C++ and use cached vertex buffer internally inside the Mesh
                 if (_vertices == null)
                     _vertices = new();
-                var pointLocal = (Float3)Actor.Transform.WorldToLocal(point);
+                var pointLocal = (Float3)Actor.Transform.WorldToLocal(result);
                 var minDistance = float.MaxValue;
-                foreach (var lod in model.LODs)
+                var lodIndex = 0; // TODO: use LOD index based on the game view
+                var lod = model.LODs[lodIndex];
                 {
                     var hit = false;
                     foreach (var mesh in lod.Meshes)
diff --git a/Source/Editor/SceneGraph/SceneGraphNode.cs b/Source/Editor/SceneGraph/SceneGraphNode.cs
index 5cf28af37..dd6a4f9fe 100644
--- a/Source/Editor/SceneGraph/SceneGraphNode.cs
+++ b/Source/Editor/SceneGraph/SceneGraphNode.cs
@@ -94,18 +94,6 @@ namespace FlaxEditor.SceneGraph
         /// </summary>
         public virtual bool CanTransform => true;
 
-        /// <summary>
-        /// Gets a value indicating whether this node can be used for the vertex snapping feature.
-        /// </summary>
-        public bool CanVertexSnap
-        {
-            get
-            {
-                var v = Vector3.Zero;
-                return OnVertexSnap(ref v, out _);
-            }
-        }
-
         /// <summary>
         /// Gets a value indicating whether this <see cref="SceneGraphNode"/> is active.
         /// </summary>
@@ -365,14 +353,15 @@ namespace FlaxEditor.SceneGraph
         }
 
         /// <summary>
-        /// Performs the vertex snapping of a given point on the object surface that is closest to a given location.
+        /// Performs the vertex snapping for a given ray and hitDistance.
         /// </summary>
-        /// <param name="point">The position to snap.</param>
+        /// <param name="ray">The ray to raycast.</param>
+        /// <param name="hitDistance">Hit distance from ray to object bounding box.</param>
         /// <param name="result">The result point on the object mesh that is closest to the specified location.</param>
         /// <returns>True if got a valid result value, otherwise false (eg. if missing data or not initialized).</returns>
-        public virtual bool OnVertexSnap(ref Vector3 point, out Vector3 result)
+        public virtual bool OnVertexSnap(ref Ray ray, float hitDistance, out Vector3 result)
         {
-            result = point;
+            result = Vector3.Zero;
             return false;
         }