diff --git a/apps/openmw/mwphysics/physicssystem.cpp b/apps/openmw/mwphysics/physicssystem.cpp
index dd5a7e826..7c8342707 100644
--- a/apps/openmw/mwphysics/physicssystem.cpp
+++ b/apps/openmw/mwphysics/physicssystem.cpp
@@ -237,9 +237,10 @@ namespace MWPhysics
 
 
     public:
-        static osg::Vec3f traceDown(const MWWorld::Ptr &ptr, Actor* actor, btCollisionWorld* collisionWorld, float maxHeight)
+        static osg::Vec3f traceDown(const MWWorld::Ptr &ptr, osg::Vec3f position, Actor* actor, btCollisionWorld* collisionWorld, float maxHeight)
         {
-            osg::Vec3f position(actor->getCollisionObjectPosition());
+            osg::Vec3f offset = actor->getCollisionObjectPosition() - ptr.getRefData().getPosition().asVec3();
+            position += offset;
 
             ActorTracer tracer;
             tracer.findGround(actor, position, position-osg::Vec3f(0,0,maxHeight), collisionWorld);
@@ -1085,13 +1086,13 @@ namespace MWPhysics
         return resultCallback.mResult;
     }
 
-    osg::Vec3f PhysicsSystem::traceDown(const MWWorld::Ptr &ptr, float maxHeight)
+    osg::Vec3f PhysicsSystem::traceDown(const MWWorld::Ptr &ptr, const osg::Vec3f& position, float maxHeight)
     {
         ActorMap::iterator found = mActors.find(ptr);
         if (found ==  mActors.end())
             return ptr.getRefData().getPosition().asVec3();
         else
-            return MovementSolver::traceDown(ptr, found->second, mCollisionWorld, maxHeight);
+            return MovementSolver::traceDown(ptr, position, found->second, mCollisionWorld, maxHeight);
     }
 
     void PhysicsSystem::addHeightField (const float* heights, int x, int y, float triSize, float sqrtVerts)
diff --git a/apps/openmw/mwphysics/physicssystem.hpp b/apps/openmw/mwphysics/physicssystem.hpp
index d74631845..ec12f7681 100644
--- a/apps/openmw/mwphysics/physicssystem.hpp
+++ b/apps/openmw/mwphysics/physicssystem.hpp
@@ -90,7 +90,7 @@ namespace MWPhysics
             void debugDraw();
 
             std::vector<MWWorld::Ptr> getCollisions(const MWWorld::ConstPtr &ptr, int collisionGroup, int collisionMask) const; ///< get handles this object collides with
-            osg::Vec3f traceDown(const MWWorld::Ptr &ptr, float maxHeight);
+            osg::Vec3f traceDown(const MWWorld::Ptr &ptr, const osg::Vec3f& position, float maxHeight);
 
             std::pair<MWWorld::Ptr, osg::Vec3f> getHitContact(const MWWorld::ConstPtr& actor,
                                                                const osg::Vec3f &origin,
diff --git a/apps/openmw/mwworld/worldimp.cpp b/apps/openmw/mwworld/worldimp.cpp
index 0229f1f93..dcec8ea85 100644
--- a/apps/openmw/mwworld/worldimp.cpp
+++ b/apps/openmw/mwworld/worldimp.cpp
@@ -1296,7 +1296,7 @@ namespace MWWorld
 
     void World::adjustPosition(const Ptr &ptr, bool force)
     {
-        ESM::Position pos (ptr.getRefData().getPosition());
+        osg::Vec3f pos (ptr.getRefData().getPosition().asVec3());
 
         if(!ptr.getRefData().getBaseNode())
         {
@@ -1306,34 +1306,31 @@ namespace MWWorld
 
         float terrainHeight = -std::numeric_limits<float>::max();
         if (ptr.getCell()->isExterior())
-            terrainHeight = getTerrainHeightAt(pos.asVec3());
+            terrainHeight = getTerrainHeightAt(pos);
 
-        if (pos.pos[2] < terrainHeight)
-            pos.pos[2] = terrainHeight;
+        if (pos.z() < terrainHeight)
+            pos.z() = terrainHeight;
 
-        pos.pos[2] += 20; // place slightly above. will snap down to ground with code below
-
-        ptr.getRefData().setPosition(pos);
+        pos.z() += 20; // place slightly above. will snap down to ground with code below
 
         if (force || !isFlying(ptr))
         {
-            osg::Vec3f traced = mPhysics->traceDown(ptr, 500);
-            if (traced.z() < pos.pos[2])
-                pos.pos[2] = traced.z();
+            osg::Vec3f traced = mPhysics->traceDown(ptr, pos, 500);
+            if (traced.z() < pos.z())
+                pos.z() = traced.z();
         }
 
-        moveObject(ptr, ptr.getCell(), pos.pos[0], pos.pos[1], pos.pos[2]);
+        moveObject(ptr, ptr.getCell(), pos.x(), pos.y(), pos.z());
     }
 
     void World::fixPosition(const Ptr &actor)
     {
         const float dist = 8000;
-        ESM::Position pos (actor.getRefData().getPosition());
-        pos.pos[2] += dist;
-        actor.getRefData().setPosition(pos);
+        osg::Vec3f pos (actor.getRefData().getPosition().asVec3());
+        pos.z() += dist;
 
-        osg::Vec3f traced = mPhysics->traceDown(actor, dist*1.1f);
-        if (traced != pos.asVec3())
+        osg::Vec3f traced = mPhysics->traceDown(actor, pos, dist*1.1f);
+        if (traced != pos)
             moveObject(actor, actor.getCell(), traced.x(), traced.y(), traced.z());
     }