diff --git a/Content/Editor/MaterialTemplates/Terrain.shader b/Content/Editor/MaterialTemplates/Terrain.shader
index b1c3a2910..a7172e381 100644
--- a/Content/Editor/MaterialTemplates/Terrain.shader
+++ b/Content/Editor/MaterialTemplates/Terrain.shader
@@ -112,7 +112,7 @@ MaterialInput GetGeometryMaterialInput(GeometryData geometry)
 #if USE_LIGHTMAP
 	output.LightmapUV = geometry.LightmapUV;
 #endif
-	output.TBN = CalcTangentBasisFromWorldNormal(geometry.WorldNormal);
+	output.TBN = CalcTangentBasis(geometry.WorldNormal, geometry.WorldPosition, geometry.TexCoord);
 	output.HolesMask = geometry.HolesMask;
 #if USE_TERRAIN_LAYERS
 	output.Layers = geometry.Layers;
@@ -415,7 +415,7 @@ VertexOutput VS(TerrainVertexInput input)
 #if USE_LIGHTMAP
 	materialInput.LightmapUV = output.Geometry.LightmapUV;
 #endif
-	materialInput.TBN = CalcTangentBasisFromWorldNormal(output.Geometry.WorldNormal);
+	materialInput.TBN = tangentToWorld;
 	materialInput.TwoSidedSign = WorldDeterminantSign;
 	materialInput.SvPosition = output.Position;
 	materialInput.PreSkinnedPosition = position;
diff --git a/Source/Engine/Graphics/Materials/MaterialShader.h b/Source/Engine/Graphics/Materials/MaterialShader.h
index 3eb6a45f8..270c60548 100644
--- a/Source/Engine/Graphics/Materials/MaterialShader.h
+++ b/Source/Engine/Graphics/Materials/MaterialShader.h
@@ -10,7 +10,7 @@
 /// <summary>
 /// Current materials shader version.
 /// </summary>
-#define MATERIAL_GRAPH_VERSION 148
+#define MATERIAL_GRAPH_VERSION 149
 
 class Material;
 class GPUShader;
diff --git a/Source/Shaders/MaterialCommon.hlsl b/Source/Shaders/MaterialCommon.hlsl
index 8fc981cd7..bc8aa66ac 100644
--- a/Source/Shaders/MaterialCommon.hlsl
+++ b/Source/Shaders/MaterialCommon.hlsl
@@ -154,6 +154,22 @@ struct GBufferOutput
 	float4 RT3   : SV_Target4;
 };
 
+float3x3 CalcTangentBasis(float3 normal, float3 pos, float2 uv)
+{
+	// References:
+	// http://www.thetenthplanet.de/archives/1180
+	// https://zhangdoa.com/posts/normal-and-normal-mapping
+	float3 dp1 = ddx(pos);
+	float3 dp2 = ddy(pos);
+	float2 duv1 = ddx(uv);
+	float2 duv2 = ddy(uv);
+	float3 dp2perp = cross(dp2, normal);
+	float3 dp1perp = cross(normal, dp1);
+	float3 tangent = normalize(dp2perp * duv1.x + dp1perp * duv2.x);
+	float3 bitangent = normalize(dp2perp * duv1.y + dp1perp * duv2.y);
+	return float3x3(tangent, bitangent, normal);
+}
+
 float3x3 CalcTangentBasisFromWorldNormal(float3 normal)
 {
 	float3 tangent = cross(normal, float3(1, 0, 0));