diff --git a/include/game/game_handler.hpp b/include/game/game_handler.hpp
index 5dc9ff9..ffc0801 100644
--- a/include/game/game_handler.hpp
+++ b/include/game/game_handler.hpp
@@ -16,6 +16,7 @@
 #include <unordered_map>
 #include <unordered_set>
 #include <map>
+#include <optional>
 
 namespace wowee::game {
     class TransportManager;
@@ -468,6 +469,11 @@ public:
     using GameObjectSpawnCallback = std::function<void(uint64_t guid, uint32_t entry, uint32_t displayId, float x, float y, float z, float orientation)>;
     void setGameObjectSpawnCallback(GameObjectSpawnCallback cb) { gameObjectSpawnCallback_ = std::move(cb); }
 
+    // GameObject move callback (online mode - triggered when gameobject position updates)
+    // Parameters: guid, x, y, z (canonical), orientation
+    using GameObjectMoveCallback = std::function<void(uint64_t guid, float x, float y, float z, float orientation)>;
+    void setGameObjectMoveCallback(GameObjectMoveCallback cb) { gameObjectMoveCallback_ = std::move(cb); }
+
     // GameObject despawn callback (online mode - triggered when gameobject leaves view)
     using GameObjectDespawnCallback = std::function<void(uint64_t guid)>;
     void setGameObjectDespawnCallback(GameObjectDespawnCallback cb) { gameObjectDespawnCallback_ = std::move(cb); }
@@ -504,6 +510,7 @@ public:
 
     // Check if a GUID is a known transport
     bool isTransportGuid(uint64_t guid) const { return transportGuids_.count(guid) > 0; }
+    bool hasServerTransportUpdate(uint64_t guid) const { return serverUpdatedTransportGuids_.count(guid) > 0; }
     glm::vec3 getComposedWorldPosition();  // Compose transport transform * local offset
     TransportManager* getTransportManager() { return transportManager_.get(); }
     void setPlayerOnTransport(uint64_t transportGuid, const glm::vec3& localOffset) {
@@ -886,6 +893,11 @@ private:
      * Fail connection with reason
      */
     void fail(const std::string& reason);
+    void updateAttachedTransportChildren(float deltaTime);
+    void setTransportAttachment(uint64_t childGuid, ObjectType type, uint64_t transportGuid,
+                                const glm::vec3& localOffset, bool hasLocalOrientation,
+                                float localOrientation);
+    void clearTransportAttachment(uint64_t childGuid);
 
     // Network
     std::unique_ptr<network::WorldSocket> socket;
@@ -1004,10 +1016,20 @@ private:
     TransportMoveCallback transportMoveCallback_;
     TransportSpawnCallback transportSpawnCallback_;
     GameObjectSpawnCallback gameObjectSpawnCallback_;
+    GameObjectMoveCallback gameObjectMoveCallback_;
     GameObjectDespawnCallback gameObjectDespawnCallback_;
 
     // Transport tracking
+    struct TransportAttachment {
+        ObjectType type = ObjectType::OBJECT;
+        uint64_t transportGuid = 0;
+        glm::vec3 localOffset{0.0f};
+        float localOrientation = 0.0f;
+        bool hasLocalOrientation = false;
+    };
+    std::unordered_map<uint64_t, TransportAttachment> transportAttachments_;
     std::unordered_set<uint64_t> transportGuids_;  // GUIDs of known transport GameObjects
+    std::unordered_set<uint64_t> serverUpdatedTransportGuids_;
     uint64_t playerTransportGuid_ = 0;             // Transport the player is riding (0 = none)
     glm::vec3 playerTransportOffset_ = glm::vec3(0.0f); // Player offset on transport
     std::unique_ptr<TransportManager> transportManager_;  // Transport movement manager
diff --git a/include/rendering/camera_controller.hpp b/include/rendering/camera_controller.hpp
index a9293da..3c671b4 100644
--- a/include/rendering/camera_controller.hpp
+++ b/include/rendering/camera_controller.hpp
@@ -165,6 +165,7 @@ private:
 
     // Cached isInsideWMO result (throttled to avoid per-frame cost)
     bool cachedInsideWMO = false;
+    bool cachedInsideInteriorWMO = false;
     int insideWMOCheckCounter = 0;
     glm::vec3 lastInsideWMOCheckPos = glm::vec3(0.0f);
 
diff --git a/include/rendering/m2_renderer.hpp b/include/rendering/m2_renderer.hpp
index 46c87c5..bece252 100644
--- a/include/rendering/m2_renderer.hpp
+++ b/include/rendering/m2_renderer.hpp
@@ -430,6 +430,7 @@ private:
     // Animation update buffers (avoid per-frame allocation)
     std::vector<size_t> boneWorkIndices_;        // Reused each frame
     std::vector<std::future<void>> animFutures_; // Reused each frame
+    bool spatialIndexDirty_ = false;
 
     // Smoke particle system
     std::vector<SmokeParticle> smokeParticles;
diff --git a/src/core/application.cpp b/src/core/application.cpp
index 4f11f35..6fd912f 100644
--- a/src/core/application.cpp
+++ b/src/core/application.cpp
@@ -498,13 +498,15 @@ void Application::update(float deltaTime) {
                           (gameHandler->isOnTaxiFlight() ||
                            gameHandler->isTaxiMountActive() ||
                            gameHandler->isTaxiActivationPending());
+            bool onTransportNow = gameHandler && gameHandler->isOnTransport();
             if (worldEntryMovementGraceTimer_ > 0.0f) {
                 worldEntryMovementGraceTimer_ -= deltaTime;
             }
             if (renderer && renderer->getCameraController()) {
-                renderer->getCameraController()->setExternalFollow(onTaxi);
-                renderer->getCameraController()->setExternalMoving(onTaxi);
-                if (onTaxi) {
+                const bool externallyDrivenMotion = onTaxi || onTransportNow;
+                renderer->getCameraController()->setExternalFollow(externallyDrivenMotion);
+                renderer->getCameraController()->setExternalMoving(externallyDrivenMotion);
+                if (externallyDrivenMotion) {
                     // Drop any stale local movement toggles while server drives taxi motion.
                     renderer->getCameraController()->clearMovementInputs();
                     taxiLandingClampTimer_ = 0.0f;
@@ -618,6 +620,8 @@ void Application::update(float deltaTime) {
                     glm::vec3 canonical = gameHandler->getComposedWorldPosition();
                     glm::vec3 renderPos = core::coords::canonicalToRender(canonical);
                     renderer->getCharacterPosition() = renderPos;
+                    // Keep movementInfo in lockstep with composed transport world position.
+                    gameHandler->setPosition(canonical.x, canonical.y, canonical.z);
                     // Update camera follow target
                     if (renderer->getCameraController()) {
                         glm::vec3* followTarget = renderer->getCameraController()->getFollowTargetMutable();
@@ -1117,6 +1121,30 @@ void Application::setupUICallbacks() {
         }
     });
 
+    gameHandler->setGameObjectMoveCallback([this](uint64_t guid, float x, float y, float z, float orientation) {
+        auto it = gameObjectInstances_.find(guid);
+        if (it == gameObjectInstances_.end() || !renderer) {
+            return;
+        }
+        glm::vec3 renderPos = core::coords::canonicalToRender(glm::vec3(x, y, z));
+        auto& info = it->second;
+        if (info.isWmo) {
+            if (auto* wr = renderer->getWMORenderer()) {
+                glm::mat4 transform(1.0f);
+                transform = glm::translate(transform, renderPos);
+                transform = glm::rotate(transform, orientation, glm::vec3(0, 0, 1));
+                wr->setInstanceTransform(info.instanceId, transform);
+            }
+        } else {
+            if (auto* mr = renderer->getM2Renderer()) {
+                glm::mat4 transform(1.0f);
+                transform = glm::translate(transform, renderPos);
+                transform = glm::rotate(transform, orientation, glm::vec3(0, 0, 1));
+                mr->setInstanceTransform(info.instanceId, transform);
+            }
+        }
+    });
+
     // Transport spawn callback (online mode) - register transports with TransportManager
     gameHandler->setTransportSpawnCallback([this](uint64_t guid, uint32_t entry, uint32_t displayId, float x, float y, float z, float orientation) {
         auto* transportManager = gameHandler->getTransportManager();
@@ -1136,10 +1164,12 @@ void Application::setupUICallbacks() {
 
         // TransportAnimation.dbc is indexed by GameObject entry
         uint32_t pathId = entry;
+        const bool preferServerData = gameHandler && gameHandler->hasServerTransportUpdate(guid);
 
         bool clientAnim = transportManager->isClientSideAnimation();
         LOG_INFO("Transport spawn callback: clientAnimation=", clientAnim,
-                 " guid=0x", std::hex, guid, std::dec, " entry=", entry, " pathId=", pathId);
+                 " guid=0x", std::hex, guid, std::dec, " entry=", entry, " pathId=", pathId,
+                 " preferServer=", preferServerData);
 
         // Coordinates are already canonical (converted in game_handler.cpp when entity was created)
         glm::vec3 canonicalSpawnPos(x, y, z);
@@ -1156,7 +1186,25 @@ void Application::setupUICallbacks() {
             hasUsablePath = transportManager->hasUsableMovingPathForEntry(entry, 25.0f);
         }
 
-        if (!hasUsablePath) {
+        if (preferServerData) {
+            // Server-first mode: keep authoritative server snapshots, but still choose a
+            // deterministic DBC path (entry/remap) as fallback if updates go stale.
+            if (!hasUsablePath) {
+                uint32_t remappedPath = transportManager->pickFallbackMovingPath(entry, displayId);
+                if (remappedPath != 0) {
+                    pathId = remappedPath;
+                    LOG_INFO("Server-first transport registration: fallback path ", pathId,
+                             " for entry ", entry, " displayId=", displayId);
+                } else {
+                    std::vector<glm::vec3> path = { canonicalSpawnPos };
+                    transportManager->loadPathFromNodes(pathId, path, false, 0.0f);
+                    LOG_INFO("Server-first transport registration: stationary fallback for GUID 0x",
+                             std::hex, guid, std::dec, " entry=", entry);
+                }
+            } else {
+                LOG_INFO("Server-first transport registration: using entry DBC path for entry ", entry);
+            }
+        } else if (!hasUsablePath) {
             uint32_t inferredPath = transportManager->inferMovingPathForSpawn(canonicalSpawnPos);
             if (inferredPath != 0) {
                 pathId = inferredPath;
@@ -1220,6 +1268,7 @@ void Application::setupUICallbacks() {
 
                     // TransportAnimation.dbc is indexed by GameObject entry
                     uint32_t pathId = entry;
+                    const bool preferServerData = gameHandler && gameHandler->hasServerTransportUpdate(guid);
 
                     // Coordinates are already canonical (converted in game_handler.cpp)
                     glm::vec3 canonicalSpawnPos(x, y, z);
@@ -1234,7 +1283,25 @@ void Application::setupUICallbacks() {
                         hasUsablePath = transportManager->hasUsableMovingPathForEntry(entry, 25.0f);
                     }
 
-                    if (!hasUsablePath) {
+                    if (preferServerData) {
+                        if (!hasUsablePath) {
+                            uint32_t remappedPath = transportManager->pickFallbackMovingPath(entry, displayId);
+                            if (remappedPath != 0) {
+                                pathId = remappedPath;
+                                LOG_INFO("Auto-spawned transport in server-first mode with fallback path: entry=", entry,
+                                         " remappedPath=", pathId, " displayId=", displayId,
+                                         " wmoInstance=", wmoInstanceId);
+                            } else {
+                                std::vector<glm::vec3> path = { canonicalSpawnPos };
+                                transportManager->loadPathFromNodes(pathId, path, false, 0.0f);
+                                LOG_INFO("Auto-spawned transport in server-first mode (stationary fallback): entry=", entry,
+                                         " displayId=", displayId, " wmoInstance=", wmoInstanceId);
+                            }
+                        } else {
+                            LOG_INFO("Auto-spawned transport in server-first mode with entry DBC path: entry=", entry,
+                                     " displayId=", displayId, " wmoInstance=", wmoInstanceId);
+                        }
+                    } else if (!hasUsablePath) {
                         uint32_t inferredPath = transportManager->inferMovingPathForSpawn(canonicalSpawnPos);
                         if (inferredPath != 0) {
                             pathId = inferredPath;
@@ -3150,11 +3217,19 @@ void Application::spawnOnlineGameObject(uint64_t guid, uint32_t entry, uint32_t
                  " pos=(", x, ", ", y, ", ", z, ")");
         if (renderer) {
             if (info.isWmo) {
-                if (auto* wr = renderer->getWMORenderer())
-                    wr->setInstancePosition(info.instanceId, renderPos);
+                if (auto* wr = renderer->getWMORenderer()) {
+                    glm::mat4 transform(1.0f);
+                    transform = glm::translate(transform, renderPos);
+                    transform = glm::rotate(transform, orientation, glm::vec3(0, 0, 1));
+                    wr->setInstanceTransform(info.instanceId, transform);
+                }
             } else {
-                if (auto* mr = renderer->getM2Renderer())
-                    mr->setInstancePosition(info.instanceId, renderPos);
+                if (auto* mr = renderer->getM2Renderer()) {
+                    glm::mat4 transform(1.0f);
+                    transform = glm::translate(transform, renderPos);
+                    transform = glm::rotate(transform, orientation, glm::vec3(0, 0, 1));
+                    mr->setInstanceTransform(info.instanceId, transform);
+                }
             }
         }
         return;
@@ -3170,9 +3245,9 @@ void Application::spawnOnlineGameObject(uint64_t guid, uint32_t entry, uint32_t
         // DisplayIds 455, 462 = Elevators/Ships → try standard ship
         // DisplayIds 807, 808 = Zeppelins
         // DisplayIds 2454, 1587 = Special ships/icebreakers
-        if (displayId == 455 || displayId == 462 || displayId == 20808 || displayId == 176231 || displayId == 176310) {
+        if (displayId == 455 || displayId == 462 || entry == 20808 || entry == 176231 || entry == 176310) {
             modelPath = "World\\wmo\\transports\\transport_ship\\transportship.wmo";
-            LOG_INFO("Overriding transport displayId ", displayId, " → transportship.wmo");
+            LOG_INFO("Overriding transport entry/display ", entry, "/", displayId, " → transportship.wmo");
         } else if (displayId == 807 || displayId == 808 || displayId == 175080 || displayId == 176495 || displayId == 164871) {
             modelPath = "World\\wmo\\transports\\transport_zeppelin\\transport_zeppelin.wmo";
             LOG_INFO("Overriding transport displayId ", displayId, " → transport_zeppelin.wmo");
@@ -3286,9 +3361,7 @@ void Application::spawnOnlineGameObject(uint64_t guid, uint32_t entry, uint32_t
             LOG_DEBUG("Spawned gameobject WMO: guid=0x", std::hex, guid, std::dec,
                      " displayId=", displayId, " at (", x, ", ", y, ", ", z, ")");
 
-            // Spawn WMO doodads (chairs, furniture, etc.) as child M2 instances
-            // TODO: Re-enable after implementing deferred/background loading
-            // Currently disabled - spawning 134 doodads synchronously causes massive slowdown
+            // Spawn transport WMO doodads (chairs, furniture, etc.) as child M2 instances
             bool isTransport = false;
             if (gameHandler) {
                 std::string lowerModelPath = modelPath;
@@ -3298,13 +3371,17 @@ void Application::spawnOnlineGameObject(uint64_t guid, uint32_t entry, uint32_t
             }
 
             auto* m2Renderer = renderer->getM2Renderer();
-            if (false && m2Renderer && isTransport) {  // DISABLED - too slow
+            if (m2Renderer && isTransport) {
                 const auto* doodadTemplates = wmoRenderer->getDoodadTemplates(modelId);
                 if (doodadTemplates && !doodadTemplates->empty()) {
-                    LOG_INFO("Spawning ", doodadTemplates->size(), " doodads for transport WMO instance ", instanceId);
+                    constexpr size_t kMaxTransportDoodads = 192;
+                    const size_t doodadBudget = std::min(doodadTemplates->size(), kMaxTransportDoodads);
+                    LOG_INFO("Spawning ", doodadBudget, "/", doodadTemplates->size(),
+                             " doodads for transport WMO instance ", instanceId);
                     int spawnedDoodads = 0;
 
-                    for (const auto& doodadTemplate : *doodadTemplates) {
+                    for (size_t i = 0; i < doodadBudget; ++i) {
+                        const auto& doodadTemplate = (*doodadTemplates)[i];
                         // Load M2 model (may be cached)
                         uint32_t doodadModelId = static_cast<uint32_t>(std::hash<std::string>{}(doodadTemplate.m2Path));
                         auto m2Data = assetManager->readFile(doodadTemplate.m2Path);
diff --git a/src/game/game_handler.cpp b/src/game/game_handler.cpp
index f42740a..6278035 100644
--- a/src/game/game_handler.cpp
+++ b/src/game/game_handler.cpp
@@ -8,6 +8,7 @@
 #include "pipeline/asset_manager.hpp"
 #include "pipeline/dbc_loader.hpp"
 #include "core/logger.hpp"
+#include <glm/gtx/quaternion.hpp>
 #include <algorithm>
 #include <cmath>
 #include <cctype>
@@ -114,6 +115,8 @@ void GameHandler::disconnect() {
     activeCharacterGuid_ = 0;
     playerNameCache.clear();
     pendingNameQueries.clear();
+    transportAttachments_.clear();
+    serverUpdatedTransportGuids_.clear();
     setState(WorldState::DISCONNECTED);
     LOG_INFO("Disconnected from world server");
 }
@@ -341,6 +344,7 @@ void GameHandler::update(float deltaTime) {
         // Update transport manager
         if (transportManager_) {
             transportManager_->update(deltaTime);
+            updateAttachedTransportChildren(deltaTime);
         }
 
         // Distance check timing
@@ -1829,6 +1833,14 @@ void GameHandler::sendMovement(Opcode opcode) {
 
     // Add transport data if player is on a transport
     if (isOnTransport()) {
+        // Keep authoritative world position synchronized to parent transport transform
+        // so heartbeats/corrections don't drag the passenger through geometry.
+        if (transportManager_) {
+            glm::vec3 composed = transportManager_->getPlayerWorldPosition(playerTransportGuid_, playerTransportOffset_);
+            movementInfo.x = composed.x;
+            movementInfo.y = composed.y;
+            movementInfo.z = composed.z;
+        }
         movementInfo.flags |= static_cast<uint32_t>(MovementFlags::ONTRANSPORT);
         movementInfo.transportGuid = playerTransportGuid_;
         movementInfo.transportX = playerTransportOffset_.x;
@@ -1841,8 +1853,12 @@ void GameHandler::sendMovement(Opcode opcode) {
         // ONTRANSPORT expects local orientation (player yaw relative to transport yaw).
         float transportYaw = 0.0f;
         if (transportManager_) {
-            if (auto* tr = transportManager_->getTransport(playerTransportGuid_); tr && tr->hasServerYaw) {
-                transportYaw = tr->serverYaw;
+            if (auto* tr = transportManager_->getTransport(playerTransportGuid_); tr) {
+                if (tr->hasServerYaw) {
+                    transportYaw = tr->serverYaw;
+                } else {
+                    transportYaw = glm::eulerAngles(tr->rotation).z;
+                }
             }
         }
 
@@ -1969,8 +1985,11 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
         if (entityManager.hasEntity(guid)) {
             const bool isKnownTransport = transportGuids_.count(guid) > 0;
             if (isKnownTransport) {
-                LOG_INFO("Ignoring out-of-range removal for transport: 0x", std::hex, guid, std::dec);
-                continue;
+                if (playerTransportGuid_ == guid) {
+                    LOG_INFO("Keeping transport in-range while player is aboard: 0x", std::hex, guid, std::dec);
+                    continue;
+                }
+                LOG_INFO("Processing out-of-range removal for transport: 0x", std::hex, guid, std::dec);
             }
 
             LOG_DEBUG("Entity went out of range: 0x", std::hex, guid, std::dec);
@@ -1984,6 +2003,8 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                 }
             }
             transportGuids_.erase(guid);
+            serverUpdatedTransportGuids_.erase(guid);
+            clearTransportAttachment(guid);
             if (playerTransportGuid_ == guid) {
                 playerTransportGuid_ = 0;
                 playerTransportOffset_ = glm::vec3(0.0f);
@@ -2034,6 +2055,13 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                             // Convert transport offset from server → canonical coordinates
                             glm::vec3 serverOffset(block.transportX, block.transportY, block.transportZ);
                             playerTransportOffset_ = core::coords::serverToCanonical(serverOffset);
+                            if (transportManager_ && transportManager_->getTransport(playerTransportGuid_)) {
+                                glm::vec3 composed = transportManager_->getPlayerWorldPosition(playerTransportGuid_, playerTransportOffset_);
+                                entity->setPosition(composed.x, composed.y, composed.z, block.orientation);
+                                movementInfo.x = composed.x;
+                                movementInfo.y = composed.y;
+                                movementInfo.z = composed.z;
+                            }
                             LOG_INFO("Player on transport: 0x", std::hex, playerTransportGuid_, std::dec,
                                      " offset=(", playerTransportOffset_.x, ", ", playerTransportOffset_.y, ", ", playerTransportOffset_.z, ")");
                         } else {
@@ -2045,18 +2073,21 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                         }
                     }
 
-                    // GameObjects with UPDATEFLAG_POSITION carry a parent transport GUID and local offset.
-                    // Use that to drive parent transport motion and compose correct child world position.
-                    if (block.objectType == ObjectType::GAMEOBJECT &&
-                        (block.updateFlags & 0x0100) &&
-                        block.onTransport &&
-                        block.transportGuid != 0) {
-                        glm::vec3 localOffset = core::coords::serverToCanonical(
-                            glm::vec3(block.transportX, block.transportY, block.transportZ));
-
-                        if (transportManager_ && transportManager_->getTransport(block.transportGuid)) {
-                            glm::vec3 composed = transportManager_->getPlayerWorldPosition(block.transportGuid, localOffset);
-                            entity->setPosition(composed.x, composed.y, composed.z, entity->getOrientation());
+                    // Track transport-relative children so they follow parent transport motion.
+                    if (block.guid != playerGuid &&
+                        (block.objectType == ObjectType::UNIT || block.objectType == ObjectType::GAMEOBJECT)) {
+                        if (block.onTransport && block.transportGuid != 0) {
+                            glm::vec3 localOffset = core::coords::serverToCanonical(
+                                glm::vec3(block.transportX, block.transportY, block.transportZ));
+                            const bool hasLocalOrientation = (block.updateFlags & 0x0020) != 0; // UPDATEFLAG_LIVING
+                            setTransportAttachment(block.guid, block.objectType, block.transportGuid,
+                                                   localOffset, hasLocalOrientation, block.transportO);
+                            if (transportManager_ && transportManager_->getTransport(block.transportGuid)) {
+                                glm::vec3 composed = transportManager_->getPlayerWorldPosition(block.transportGuid, localOffset);
+                                entity->setPosition(composed.x, composed.y, composed.z, entity->getOrientation());
+                            }
+                        } else {
+                            clearTransportAttachment(block.guid);
                         }
                     }
                 }
@@ -2200,6 +2231,7 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                     }
                     // Fire transport move callback for transports (position update on re-creation)
                     if (transportGuids_.count(block.guid) && transportMoveCallback_) {
+                        serverUpdatedTransportGuids_.insert(block.guid);
                         transportMoveCallback_(block.guid,
                             go->getX(), go->getY(), go->getZ(), go->getOrientation());
                     }
@@ -2360,6 +2392,28 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                 // Update existing entity fields
                 auto entity = entityManager.getEntity(block.guid);
                 if (entity) {
+                    if (block.hasMovement) {
+                        glm::vec3 pos = core::coords::serverToCanonical(glm::vec3(block.x, block.y, block.z));
+                        entity->setPosition(pos.x, pos.y, pos.z, block.orientation);
+
+                        if (block.guid != playerGuid &&
+                            (entity->getType() == ObjectType::UNIT || entity->getType() == ObjectType::GAMEOBJECT)) {
+                            if (block.onTransport && block.transportGuid != 0) {
+                                glm::vec3 localOffset = core::coords::serverToCanonical(
+                                    glm::vec3(block.transportX, block.transportY, block.transportZ));
+                                const bool hasLocalOrientation = (block.updateFlags & 0x0020) != 0; // UPDATEFLAG_LIVING
+                                setTransportAttachment(block.guid, entity->getType(), block.transportGuid,
+                                                       localOffset, hasLocalOrientation, block.transportO);
+                                if (transportManager_ && transportManager_->getTransport(block.transportGuid)) {
+                                    glm::vec3 composed = transportManager_->getPlayerWorldPosition(block.transportGuid, localOffset);
+                                    entity->setPosition(composed.x, composed.y, composed.z, entity->getOrientation());
+                                }
+                            } else {
+                                clearTransportAttachment(block.guid);
+                            }
+                        }
+                    }
+
                     for (const auto& field : block.fields) {
                         entity->setField(field.first, field.second);
                     }
@@ -2550,6 +2604,16 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                         }
                         rebuildOnlineInventory();
                     }
+                    if (block.hasMovement && entity->getType() == ObjectType::GAMEOBJECT) {
+                        if (transportGuids_.count(block.guid) && transportMoveCallback_) {
+                            serverUpdatedTransportGuids_.insert(block.guid);
+                            transportMoveCallback_(block.guid, entity->getX(), entity->getY(),
+                                                   entity->getZ(), entity->getOrientation());
+                        } else if (gameObjectMoveCallback_) {
+                            gameObjectMoveCallback_(block.guid, entity->getX(), entity->getY(),
+                                                    entity->getZ(), entity->getOrientation());
+                        }
+                    }
 
                     LOG_DEBUG("Updated entity fields: 0x", std::hex, block.guid, std::dec);
                 } else {
@@ -2571,25 +2635,24 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                     entity->setPosition(pos.x, pos.y, pos.z, block.orientation);
                     LOG_DEBUG("Updated entity position: 0x", std::hex, block.guid, std::dec);
 
-                    // Some GameObject movement blocks are transport-relative: the packet carries
-                    // parent transport GUID + local child offset in UPDATEFLAG_POSITION.
-                    if (entity->getType() == ObjectType::GAMEOBJECT &&
-                        (block.updateFlags & 0x0100) &&
-                        block.onTransport &&
-                        block.transportGuid != 0) {
-                        glm::vec3 localOffset = core::coords::serverToCanonical(
-                            glm::vec3(block.transportX, block.transportY, block.transportZ));
-
-                        if (transportManager_ && transportManager_->getTransport(block.transportGuid)) {
-                            glm::vec3 composed = transportManager_->getPlayerWorldPosition(block.transportGuid, localOffset);
-                            entity->setPosition(composed.x, composed.y, composed.z, entity->getOrientation());
+                    if (block.guid != playerGuid &&
+                        (entity->getType() == ObjectType::UNIT || entity->getType() == ObjectType::GAMEOBJECT)) {
+                        if (block.onTransport && block.transportGuid != 0) {
+                            glm::vec3 localOffset = core::coords::serverToCanonical(
+                                glm::vec3(block.transportX, block.transportY, block.transportZ));
+                            const bool hasLocalOrientation = (block.updateFlags & 0x0020) != 0; // UPDATEFLAG_LIVING
+                            setTransportAttachment(block.guid, entity->getType(), block.transportGuid,
+                                                   localOffset, hasLocalOrientation, block.transportO);
+                            if (transportManager_ && transportManager_->getTransport(block.transportGuid)) {
+                                glm::vec3 composed = transportManager_->getPlayerWorldPosition(block.transportGuid, localOffset);
+                                entity->setPosition(composed.x, composed.y, composed.z, entity->getOrientation());
+                            }
+                        } else {
+                            clearTransportAttachment(block.guid);
                         }
                     }
 
                     if (block.guid == playerGuid) {
-                        movementInfo.x = pos.x;
-                        movementInfo.y = pos.y;
-                        movementInfo.z = pos.z;
                         movementInfo.orientation = block.orientation;
 
                         // Track player-on-transport state from MOVEMENT updates
@@ -2598,8 +2661,22 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
                             // Convert transport offset from server → canonical coordinates
                             glm::vec3 serverOffset(block.transportX, block.transportY, block.transportZ);
                             playerTransportOffset_ = core::coords::serverToCanonical(serverOffset);
+                            if (transportManager_ && transportManager_->getTransport(playerTransportGuid_)) {
+                                glm::vec3 composed = transportManager_->getPlayerWorldPosition(playerTransportGuid_, playerTransportOffset_);
+                                entity->setPosition(composed.x, composed.y, composed.z, block.orientation);
+                                movementInfo.x = composed.x;
+                                movementInfo.y = composed.y;
+                                movementInfo.z = composed.z;
+                            } else {
+                                movementInfo.x = pos.x;
+                                movementInfo.y = pos.y;
+                                movementInfo.z = pos.z;
+                            }
                             LOG_INFO("Player on transport (MOVEMENT): 0x", std::hex, playerTransportGuid_, std::dec);
                         } else {
+                            movementInfo.x = pos.x;
+                            movementInfo.y = pos.y;
+                            movementInfo.z = pos.z;
                             if (playerTransportGuid_ != 0) {
                                 LOG_INFO("Player left transport (MOVEMENT)");
                                 playerTransportGuid_ = 0;
@@ -2610,8 +2687,16 @@ void GameHandler::handleUpdateObject(network::Packet& packet) {
 
                     // Fire transport move callback if this is a known transport
                     if (transportGuids_.count(block.guid) && transportMoveCallback_) {
+                        serverUpdatedTransportGuids_.insert(block.guid);
                         transportMoveCallback_(block.guid, pos.x, pos.y, pos.z, block.orientation);
                     }
+                    // Fire move callback for non-transport gameobjects.
+                    if (entity->getType() == ObjectType::GAMEOBJECT &&
+                        transportGuids_.count(block.guid) == 0 &&
+                        gameObjectMoveCallback_) {
+                        gameObjectMoveCallback_(block.guid, entity->getX(), entity->getY(),
+                                                entity->getZ(), entity->getOrientation());
+                    }
                 } else {
                     LOG_WARNING("MOVEMENT update for unknown entity: 0x", std::hex, block.guid, std::dec);
                 }
@@ -2687,6 +2772,7 @@ void GameHandler::handleDestroyObject(network::Packet& packet) {
     // Remove entity
     if (entityManager.hasEntity(data.guid)) {
         if (transportGuids_.count(data.guid) > 0) {
+            serverUpdatedTransportGuids_.erase(data.guid);
             LOG_INFO("Ignoring destroy for transport entity: 0x", std::hex, data.guid, std::dec);
             return;
         }
@@ -2699,6 +2785,7 @@ void GameHandler::handleDestroyObject(network::Packet& packet) {
                 gameObjectDespawnCallback_(data.guid);
             }
         }
+        clearTransportAttachment(data.guid);
         entityManager.removeEntity(data.guid);
         LOG_INFO("Destroyed entity: 0x", std::hex, data.guid, std::dec,
                  " (", (data.isDeath ? "death" : "despawn"), ")");
@@ -4576,11 +4663,16 @@ void GameHandler::handleMonsterMoveTransport(network::Packet& packet) {
     if (transportManager_) {
         // Use TransportManager to compose world position from local offset
         glm::vec3 localPos(localX, localY, localZ);
+        setTransportAttachment(moverGuid, entity->getType(), transportGuid, localPos, false, 0.0f);
         glm::vec3 worldPos = transportManager_->getPlayerWorldPosition(transportGuid, localPos);
 
         entity->setPosition(worldPos.x, worldPos.y, worldPos.z, entity->getOrientation());
 
         LOG_INFO("  Composed NPC world position: (", worldPos.x, ", ", worldPos.y, ", ", worldPos.z, ")");
+
+        if (entity->getType() == ObjectType::UNIT && creatureMoveCallback_) {
+            creatureMoveCallback_(moverGuid, worldPos.x, worldPos.y, worldPos.z, 0);
+        }
     } else {
         LOG_WARNING("  TransportManager not available for NPC position composition");
     }
@@ -7270,6 +7362,86 @@ void GameHandler::loadCharacterConfig() {
     }
 }
 
+void GameHandler::setTransportAttachment(uint64_t childGuid, ObjectType type, uint64_t transportGuid,
+                                         const glm::vec3& localOffset, bool hasLocalOrientation,
+                                         float localOrientation) {
+    if (childGuid == 0 || transportGuid == 0) {
+        return;
+    }
+
+    TransportAttachment& attachment = transportAttachments_[childGuid];
+    attachment.type = type;
+    attachment.transportGuid = transportGuid;
+    attachment.localOffset = localOffset;
+    attachment.hasLocalOrientation = hasLocalOrientation;
+    attachment.localOrientation = localOrientation;
+}
+
+void GameHandler::clearTransportAttachment(uint64_t childGuid) {
+    if (childGuid == 0) {
+        return;
+    }
+    transportAttachments_.erase(childGuid);
+}
+
+void GameHandler::updateAttachedTransportChildren(float /*deltaTime*/) {
+    if (!transportManager_ || transportAttachments_.empty()) {
+        return;
+    }
+
+    constexpr float kPosEpsilonSq = 0.0001f;
+    constexpr float kOriEpsilon = 0.001f;
+    std::vector<uint64_t> stale;
+    stale.reserve(8);
+
+    for (const auto& [childGuid, attachment] : transportAttachments_) {
+        auto entity = entityManager.getEntity(childGuid);
+        if (!entity) {
+            stale.push_back(childGuid);
+            continue;
+        }
+
+        ActiveTransport* transport = transportManager_->getTransport(attachment.transportGuid);
+        if (!transport) {
+            continue;
+        }
+
+        glm::vec3 composed = transportManager_->getPlayerWorldPosition(
+            attachment.transportGuid, attachment.localOffset);
+
+        float composedOrientation = entity->getOrientation();
+        if (attachment.hasLocalOrientation) {
+            float baseYaw = transport->hasServerYaw ? transport->serverYaw : 0.0f;
+            composedOrientation = baseYaw + attachment.localOrientation;
+        }
+
+        glm::vec3 oldPos(entity->getX(), entity->getY(), entity->getZ());
+        float oldOrientation = entity->getOrientation();
+        glm::vec3 delta = composed - oldPos;
+        const bool positionChanged = glm::dot(delta, delta) > kPosEpsilonSq;
+        const bool orientationChanged = std::abs(composedOrientation - oldOrientation) > kOriEpsilon;
+        if (!positionChanged && !orientationChanged) {
+            continue;
+        }
+
+        entity->setPosition(composed.x, composed.y, composed.z, composedOrientation);
+
+        if (attachment.type == ObjectType::UNIT) {
+            if (creatureMoveCallback_) {
+                creatureMoveCallback_(childGuid, composed.x, composed.y, composed.z, 0);
+            }
+        } else if (attachment.type == ObjectType::GAMEOBJECT) {
+            if (gameObjectMoveCallback_) {
+                gameObjectMoveCallback_(childGuid, composed.x, composed.y, composed.z, composedOrientation);
+            }
+        }
+    }
+
+    for (uint64_t guid : stale) {
+        transportAttachments_.erase(guid);
+    }
+}
+
 glm::vec3 GameHandler::getComposedWorldPosition() {
     if (playerTransportGuid_ != 0 && transportManager_) {
         return transportManager_->getPlayerWorldPosition(playerTransportGuid_, playerTransportOffset_);
diff --git a/src/game/transport_manager.cpp b/src/game/transport_manager.cpp
index d2bb03b..118d691 100644
--- a/src/game/transport_manager.cpp
+++ b/src/game/transport_manager.cpp
@@ -255,11 +255,10 @@ void TransportManager::updateTransportMovement(ActiveTransport& transport, float
         pathTimeMs = transport.localClockMs % path.durationMs;
     } else {
         // Server-driven transport without clock sync:
-        // stay server-authoritative and never switch to DBC/client animation fallback.
-        // For short server update gaps, apply lightweight dead-reckoning only when we
-        // have measured velocity from at least one authoritative delta.
-        constexpr float kMaxExtrapolationSec = 8.0f;
+        // keep server-authoritative and dead-reckon from last known velocity.
         const float ageSec = elapsedTime_ - transport.lastServerUpdate;
+        constexpr float kMaxExtrapolationSec = 30.0f;
+
         if (transport.hasServerVelocity && ageSec > 0.0f && ageSec <= kMaxExtrapolationSec) {
             const float blend = glm::clamp(1.0f - (ageSec / kMaxExtrapolationSec), 0.0f, 1.0f);
             transport.position += transport.serverLinearVelocity * (deltaTime * blend);
@@ -577,6 +576,74 @@ void TransportManager::updateServerTransport(uint64_t guid, const glm::vec3& pos
             transport->serverAngularVelocity = 0.0f;
             transport->hasServerVelocity = true;
         }
+    } else {
+        // Bootstrap velocity from mapped DBC path on first authoritative sample.
+        // This avoids "stalled at dock" when server sends sparse transport snapshots.
+        auto pathIt2 = paths_.find(transport->pathId);
+        if (pathIt2 != paths_.end()) {
+            const auto& path = pathIt2->second;
+            if (path.points.size() >= 2 && path.durationMs > 0) {
+                glm::vec3 local = position - transport->basePosition;
+                size_t bestIdx = 0;
+                float bestDistSq = std::numeric_limits<float>::max();
+                for (size_t i = 0; i < path.points.size(); ++i) {
+                    glm::vec3 d = path.points[i].pos - local;
+                    float distSq = glm::dot(d, d);
+                    if (distSq < bestDistSq) {
+                        bestDistSq = distSq;
+                        bestIdx = i;
+                    }
+                }
+
+                size_t n = path.points.size();
+                size_t nextIdx = (bestIdx + 1) % n;
+                uint32_t t0 = path.points[bestIdx].tMs;
+                uint32_t t1 = path.points[nextIdx].tMs;
+                if (nextIdx == 0 && t1 <= t0 && path.durationMs > 0) {
+                    t1 = path.durationMs;
+                }
+                if (t1 <= t0 && n > 2) {
+                    size_t prevIdx = (bestIdx + n - 1) % n;
+                    t0 = path.points[prevIdx].tMs;
+                    t1 = path.points[bestIdx].tMs;
+                    glm::vec3 seg = path.points[bestIdx].pos - path.points[prevIdx].pos;
+                    float dtSeg = static_cast<float>(t1 - t0) / 1000.0f;
+                    if (dtSeg > 0.001f) {
+                        glm::vec3 v = seg / dtSeg;
+                        float speed = glm::length(v);
+                        constexpr float kMaxSpeed = 60.0f;
+                        if (speed > kMaxSpeed) {
+                            v *= (kMaxSpeed / speed);
+                        }
+                        transport->serverLinearVelocity = v;
+                        transport->serverAngularVelocity = 0.0f;
+                        transport->hasServerVelocity = true;
+                    }
+                } else {
+                    glm::vec3 seg = path.points[nextIdx].pos - path.points[bestIdx].pos;
+                    float dtSeg = static_cast<float>(t1 - t0) / 1000.0f;
+                    if (dtSeg > 0.001f) {
+                        glm::vec3 v = seg / dtSeg;
+                        float speed = glm::length(v);
+                        constexpr float kMaxSpeed = 60.0f;
+                        if (speed > kMaxSpeed) {
+                            v *= (kMaxSpeed / speed);
+                        }
+                        transport->serverLinearVelocity = v;
+                        transport->serverAngularVelocity = 0.0f;
+                        transport->hasServerVelocity = true;
+                    }
+                }
+
+                if (transport->hasServerVelocity) {
+                    LOG_INFO("Transport 0x", std::hex, guid, std::dec,
+                             " bootstrapped velocity from DBC path ", transport->pathId,
+                             " v=(", transport->serverLinearVelocity.x, ", ",
+                             transport->serverLinearVelocity.y, ", ",
+                             transport->serverLinearVelocity.z, ")");
+                }
+            }
+        }
     }
 
     updateTransformMatrices(*transport);
diff --git a/src/rendering/camera_controller.cpp b/src/rendering/camera_controller.cpp
index 5ce6ef0..203b9e8 100644
--- a/src/rendering/camera_controller.cpp
+++ b/src/rendering/camera_controller.cpp
@@ -50,6 +50,19 @@ std::optional<float> selectHighestFloor(const std::optional<float>& a,
     return best;
 }
 
+std::optional<float> selectClosestFloor(const std::optional<float>& a,
+                                        const std::optional<float>& b,
+                                        float refZ) {
+    if (a && b) {
+        float da = std::abs(*a - refZ);
+        float db = std::abs(*b - refZ);
+        return (da <= db) ? a : b;
+    }
+    if (a) return a;
+    if (b) return b;
+    return std::nullopt;
+}
+
 } // namespace
 
 CameraController::CameraController(Camera* cam) : camera(cam) {
@@ -537,6 +550,20 @@ void CameraController::update(float deltaTime) {
             verticalVelocity = 0.0f;
         }
 
+        // Refresh inside-WMO state before collision/grounding so we don't use stale
+        // terrain-first caches while entering enclosed tunnel/building spaces.
+        if (wmoRenderer && !externalFollow_) {
+            bool prevInside = cachedInsideWMO;
+            bool prevInsideInterior = cachedInsideInteriorWMO;
+            cachedInsideWMO = wmoRenderer->isInsideWMO(targetPos.x, targetPos.y, targetPos.z + 1.0f, nullptr);
+            cachedInsideInteriorWMO = wmoRenderer->isInsideInteriorWMO(targetPos.x, targetPos.y, targetPos.z + 1.0f);
+            if (cachedInsideWMO != prevInside || cachedInsideInteriorWMO != prevInsideInterior) {
+                hasCachedFloor_ = false;
+                hasCachedCamFloor = false;
+                cachedPivotLift_ = 0.0f;
+            }
+        }
+
         // Sweep collisions in small steps to reduce tunneling through thin walls/floors.
         // Skip entirely when stationary to avoid wasting collision calls.
         // Use tighter steps when inside WMO for more precise collision.
@@ -587,15 +614,27 @@ void CameraController::update(float deltaTime) {
             // 1. Center-only sample for terrain/WMO floor selection.
             //    Using only the center prevents tunnel entrances from snapping
             //    to terrain when offset samples miss the WMO floor geometry.
-            // Slope limit: reject surfaces too steep to walk (prevent clipping)
-            constexpr float MIN_WALKABLE_NORMAL = 0.7f;  // ~45° max slope
+            // Slope limit: reject surfaces too steep to walk (prevent clipping).
+            // WMO tunnel/bridge ramps are often steeper than outdoor terrain ramps.
+            constexpr float MIN_WALKABLE_NORMAL_TERRAIN = 0.7f; // ~45°
+            constexpr float MIN_WALKABLE_NORMAL_WMO = 0.45f;    // allow tunnel ramps
 
             std::optional<float> groundH;
+            std::optional<float> centerTerrainH;
+            std::optional<float> centerWmoH;
             {
                 // Collision cache: skip expensive checks if barely moved (15cm threshold)
                 float distMoved = glm::length(glm::vec2(targetPos.x, targetPos.y) -
                                              glm::vec2(lastCollisionCheckPos_.x, lastCollisionCheckPos_.y));
                 bool useCached = hasCachedFloor_ && distMoved < COLLISION_CACHE_DISTANCE;
+                if (useCached) {
+                    // Never trust cached ground while actively descending or when
+                    // vertical drift from cached floor is meaningful.
+                    float dzCached = std::abs(targetPos.z - cachedFloorHeight_);
+                    if (verticalVelocity < -0.4f || dzCached > 0.35f) {
+                        useCached = false;
+                    }
+                }
 
                 if (useCached) {
                     groundH = cachedFloorHeight_;
@@ -613,11 +652,52 @@ void CameraController::update(float deltaTime) {
                     }
 
                     // Reject steep WMO slopes
-                    if (wmoH && wmoNormalZ < MIN_WALKABLE_NORMAL) {
+                    float minWalkableWmo = cachedInsideWMO ? MIN_WALKABLE_NORMAL_WMO : MIN_WALKABLE_NORMAL_TERRAIN;
+                    if (wmoH && wmoNormalZ < minWalkableWmo) {
                         wmoH = std::nullopt;  // Treat as unwalkable
                     }
+                    centerTerrainH = terrainH;
+                    centerWmoH = wmoH;
 
-                    groundH = selectReachableFloor(terrainH, wmoH, targetPos.z, stepUpBudget);
+                    // Guard against extremely bad WMO void ramps, but keep normal tunnel
+                    // transitions valid. Only reject when the WMO sample is implausibly far
+                    // below terrain and player is not already descending.
+                    if (terrainH && wmoH) {
+                        float terrainMinusWmo = *terrainH - *wmoH;
+                        if (terrainMinusWmo > 12.0f && verticalVelocity > -8.0f) {
+                            wmoH = std::nullopt;
+                            centerWmoH = std::nullopt;
+                        }
+                    }
+
+                    if (cachedInsideWMO && wmoH) {
+                        // Transition seam (e.g. tunnel mouths): if terrain is much higher than
+                        // nearby WMO walkable floor, prefer the WMO floor so we can enter.
+                        bool preferWmoAtSeam = false;
+                        if (terrainH) {
+                            float terrainAboveWmo = *terrainH - *wmoH;
+                            float wmoDropFromPlayer = targetPos.z - *wmoH;
+                            float playerVsTerrain = targetPos.z - *terrainH;
+                            bool descendingIntoTunnel = (verticalVelocity < -1.0f) || (playerVsTerrain < -0.35f);
+                            if (terrainAboveWmo > 1.2f && terrainAboveWmo < 8.0f &&
+                                wmoDropFromPlayer >= -0.4f && wmoDropFromPlayer < 1.8f &&
+                                *wmoH <= targetPos.z + stepUpBudget &&
+                                descendingIntoTunnel) {
+                                preferWmoAtSeam = true;
+                            }
+                        }
+                        if (preferWmoAtSeam) {
+                            groundH = wmoH;
+                        } else if (terrainH) {
+                            // At tunnel seams where both exist, pick the one closest to current feet Z
+                            // to avoid oscillating between top terrain and deep WMO floors.
+                            groundH = selectClosestFloor(terrainH, wmoH, targetPos.z);
+                        } else {
+                            groundH = selectReachableFloor(terrainH, wmoH, targetPos.z, stepUpBudget);
+                        }
+                    } else {
+                        groundH = selectReachableFloor(terrainH, wmoH, targetPos.z, stepUpBudget);
+                    }
 
                     // Update cache
                     lastCollisionCheckPos_ = targetPos;
@@ -630,6 +710,81 @@ void CameraController::update(float deltaTime) {
                 }
             }
 
+            // Transition safety: if no reachable floor was selected, choose the higher
+            // of terrain/WMO center surfaces when it is still near the player.
+            // This avoids dropping into void gaps at terrain<->WMO seams.
+            if (!groundH) {
+                auto highestCenter = selectHighestFloor(centerTerrainH, centerWmoH, std::nullopt);
+                if (highestCenter) {
+                    float dz = targetPos.z - *highestCenter;
+                    // Keep this fallback narrow: only for WMO seam cases, or very short
+                    // transient misses while still almost touching the last floor.
+                    bool allowFallback = cachedInsideWMO || (noGroundTimer_ < 0.10f && dz < 0.6f);
+                    if (allowFallback && dz >= -0.5f && dz < 2.0f) {
+                        groundH = highestCenter;
+                    }
+                }
+            }
+
+            // Continuity guard only for WMO seam overlap: avoid instantly switching to a
+            // much lower floor sample at tunnel mouths (bad WMO ramp chains into void).
+            if (groundH && hasRealGround_ && cachedInsideWMO && !cachedInsideInteriorWMO) {
+                float dropFromLast = lastGroundZ - *groundH;
+                if (dropFromLast > 1.5f) {
+                    if (centerTerrainH && *centerTerrainH > *groundH + 1.5f) {
+                        groundH = centerTerrainH;
+                    }
+                }
+            }
+
+            // Seam stability: while overlapping WMO shells, cap how fast floor height can
+            // step downward in a single frame to avoid following bad ramp samples into void.
+            if (groundH && cachedInsideWMO && !cachedInsideInteriorWMO && lastGroundZ > 1.0f) {
+                float maxDropPerFrame = (verticalVelocity < -8.0f) ? 2.0f : 0.60f;
+                float minAllowed = lastGroundZ - maxDropPerFrame;
+                // Extra seam guard: outside interior groups, avoid accepting floors that
+                // are far below nearby terrain. Keeps shark-mouth transitions from
+                // following erroneous WMO ramps into void.
+                if (centerTerrainH) {
+                    // Never let terrain-based seam guard push floor above current feet;
+                    // it should only prevent excessive downward drops.
+                    float terrainGuard = std::min(*centerTerrainH - 1.0f, targetPos.z - 0.15f);
+                    minAllowed = std::max(minAllowed, terrainGuard);
+                }
+                if (*groundH < minAllowed) {
+                    *groundH = minAllowed;
+                }
+            }
+
+            // 1b. Multi-sample WMO floors when in/near WMO space to avoid
+            // falling through narrow board/plank gaps where center ray misses.
+            if (wmoRenderer && cachedInsideWMO) {
+                constexpr float WMO_FOOTPRINT = 0.35f;
+                const glm::vec2 wmoOffsets[] = {
+                    {0.0f, 0.0f},
+                    { WMO_FOOTPRINT, 0.0f}, {-WMO_FOOTPRINT, 0.0f},
+                    {0.0f,  WMO_FOOTPRINT}, {0.0f, -WMO_FOOTPRINT}
+                };
+
+                float wmoProbeZ = std::max(targetPos.z, lastGroundZ) + stepUpBudget + 0.6f;
+                float minWalkableWmo = cachedInsideWMO ? MIN_WALKABLE_NORMAL_WMO : MIN_WALKABLE_NORMAL_TERRAIN;
+
+                for (const auto& o : wmoOffsets) {
+                    float nz = 1.0f;
+                    auto wh = wmoRenderer->getFloorHeight(targetPos.x + o.x, targetPos.y + o.y, wmoProbeZ, &nz);
+                    if (!wh) continue;
+                    if (nz < minWalkableWmo) continue;
+
+                    // Keep to nearby, walkable steps only.
+                    if (*wh > targetPos.z + stepUpBudget) continue;
+                    if (*wh < targetPos.z - 2.5f) continue;
+
+                    if (!groundH || *wh > *groundH) {
+                        groundH = wh;
+                    }
+                }
+            }
+
             // 2. Multi-sample for M2 objects (rugs, planks, bridges, ships) —
             //    these are narrow and need offset probes to detect reliably.
             if (m2Renderer && !externalFollow_) {
@@ -646,7 +801,7 @@ void CameraController::update(float deltaTime) {
                         targetPos.x + o.x, targetPos.y + o.y, m2ProbeZ, &m2NormalZ);
 
                     // Reject steep M2 slopes
-                    if (m2H && m2NormalZ < MIN_WALKABLE_NORMAL) {
+                    if (m2H && m2NormalZ < MIN_WALKABLE_NORMAL_TERRAIN) {
                         continue;  // Skip unwalkable M2 surface
                     }
 
@@ -676,7 +831,8 @@ void CameraController::update(float deltaTime) {
                 // 3. Was grounded + ground is close (grace for slopes)
                 bool nearGround = (dz >= 0.0f && dz <= stepUp);
                 bool airFalling = (!grounded && verticalVelocity < -5.0f);
-                bool slopeGrace = (grounded && dz >= -1.0f && dz <= stepUp * 2.0f);
+                bool slopeGrace = (grounded && verticalVelocity > -1.0f &&
+                                   dz >= -0.25f && dz <= stepUp * 1.5f);
 
                 if (dz >= -fallCatch && (nearGround || airFalling || slopeGrace)) {
                     targetPos.z = *groundH;
@@ -691,18 +847,13 @@ void CameraController::update(float deltaTime) {
                     hasRealGround_ = false;
                     noGroundTimer_ += deltaTime;
 
-                    if (noGroundTimer_ < NO_GROUND_GRACE) {
-                        // Grace should prevent instant falling at seams,
-                        // but should NEVER pull you down or cancel a jump.
-                        targetPos.z = std::max(targetPos.z, lastGroundZ);
-
-                        // Only zero velocity if we're not moving upward.
-                        if (verticalVelocity <= 0.0f) {
-                            verticalVelocity = 0.0f;
-                            grounded = true;
-                        } else {
-                            grounded = false; // jumping upward: don't "stick" to ghost ground
-                        }
+                    float dropFromLastGround = lastGroundZ - targetPos.z;
+                    bool seamSizedGap = dropFromLastGround <= 0.35f;
+                    if (noGroundTimer_ < NO_GROUND_GRACE && seamSizedGap) {
+                        // Micro-gap grace only: keep continuity for tiny seam misses,
+                        // but never convert air into persistent ground.
+                        targetPos.z = std::max(targetPos.z, lastGroundZ - 0.10f);
+                        grounded = false;
                     } else {
                         grounded = false;
                     }
@@ -738,7 +889,7 @@ void CameraController::update(float deltaTime) {
         // Pivot point at upper chest/neck.
         float mountedOffset = mounted_ ? mountHeightOffset_ : 0.0f;
         float pivotLift = 0.0f;
-        if (terrainManager && !externalFollow_) {
+        if (terrainManager && !externalFollow_ && !cachedInsideInteriorWMO) {
             float moved = glm::length(glm::vec2(targetPos.x - lastPivotLiftQueryPos_.x,
                                                 targetPos.y - lastPivotLiftQueryPos_.y));
             float distDelta = std::abs(currentDistance - lastPivotLiftDistance_);
@@ -772,6 +923,10 @@ void CameraController::update(float deltaTime) {
                 cachedPivotLift_ = desiredLift;
             }
             pivotLift = cachedPivotLift_;
+        } else if (cachedInsideInteriorWMO) {
+            // Inside WMO volumes (including tunnel/cave shells): terrain-above samples
+            // are not relevant for camera pivoting.
+            cachedPivotLift_ = 0.0f;
         }
         glm::vec3 pivot = targetPos + glm::vec3(0.0f, 0.0f, PIVOT_HEIGHT + mountedOffset + pivotLift);
 
@@ -787,26 +942,13 @@ void CameraController::update(float deltaTime) {
         if (wmoRenderer) {
             float distFromLastCheck = glm::length(targetPos - lastInsideWMOCheckPos);
             if (++insideWMOCheckCounter >= 10 || distFromLastCheck > 2.0f) {
-                cachedInsideWMO = wmoRenderer->isInsideWMO(targetPos.x, targetPos.y, targetPos.z + 1.0f, nullptr);
                 wmoRenderer->updateActiveGroup(targetPos.x, targetPos.y, targetPos.z + 1.0f);
                 insideWMOCheckCounter = 0;
                 lastInsideWMOCheckPos = targetPos;
             }
 
-            // Constrain zoom if there's a ceiling/upper floor above player
-            // Raycast upward from player to find ceiling, limit camera distance
-            glm::vec3 upRayOrigin = targetPos;
-            glm::vec3 upRayDir(0.0f, 0.0f, 1.0f);
-            float ceilingDist = wmoRenderer->raycastBoundingBoxes(upRayOrigin, upRayDir, 20.0f);
-            if (ceilingDist < 20.0f) {
-                // Found ceiling above — limit zoom to prevent camera from going through it
-                // Camera is behind player by currentDistance, at an angle
-                // Approximate: if ceiling is N units above, limit zoom to ~N units
-                float maxZoomForCeiling = std::max(1.5f, ceilingDist * 0.7f);
-                if (currentDistance > maxZoomForCeiling) {
-                    currentDistance = maxZoomForCeiling;
-                }
-            }
+            // Do not clamp zoom target by ceiling checks. First-person should always
+            // be reachable; occlusion handling below will resolve camera placement safely.
         }
 
         // ===== Camera collision (sphere sweep approximation) =====
@@ -866,8 +1008,11 @@ void CameraController::update(float deltaTime) {
         // ===== Final floor clearance check =====
         // Use WMO-aware floor so the camera doesn't pop above tunnels/caves.
         constexpr float MIN_FLOOR_CLEARANCE = 0.35f;
-        {
-            auto camTerrainH = getTerrainFloorAt(smoothedCamPos.x, smoothedCamPos.y);
+        if (!cachedInsideWMO) {
+            std::optional<float> camTerrainH;
+            if (!cachedInsideInteriorWMO) {
+                camTerrainH = getTerrainFloorAt(smoothedCamPos.x, smoothedCamPos.y);
+            }
             std::optional<float> camWmoH;
             if (wmoRenderer) {
                 // Skip expensive WMO floor query if camera barely moved
@@ -876,15 +1021,45 @@ void CameraController::update(float deltaTime) {
                 if (camDelta < 0.3f && hasCachedCamFloor) {
                     camWmoH = cachedCamWmoFloor;
                 } else {
+                    float camFloorProbeZ = smoothedCamPos.z;
+                    if (cachedInsideInteriorWMO) {
+                        // Inside tunnels/buildings, probe near player height so roof
+                        // triangles above the camera don't get treated as floor.
+                        camFloorProbeZ = std::min(smoothedCamPos.z, targetPos.z + 1.0f);
+                    }
                     camWmoH = wmoRenderer->getFloorHeight(
-                        smoothedCamPos.x, smoothedCamPos.y, smoothedCamPos.z);
+                        smoothedCamPos.x, smoothedCamPos.y, camFloorProbeZ);
+
+                    if (cachedInsideInteriorWMO && camWmoH) {
+                        // Never let camera floor clamp latch to tunnel ceilings / upper decks.
+                        float maxValidIndoorFloor = targetPos.z + 0.9f;
+                        if (*camWmoH > maxValidIndoorFloor) {
+                            camWmoH = std::nullopt;
+                        }
+                    }
                     cachedCamWmoFloor = camWmoH;
                     hasCachedCamFloor = true;
                     lastCamFloorQueryPos = smoothedCamPos;
                 }
             }
-            auto camFloorH = selectReachableFloor(
-                camTerrainH, camWmoH, smoothedCamPos.z, 0.5f);
+            // When camera/character are inside a WMO, force WMO floor usage for camera
+            // clearance to avoid snapping toward terrain above enclosed tunnels/caves.
+            std::optional<float> camFloorH;
+            if (cachedInsideWMO && camWmoH && camTerrainH) {
+                // Transition seam: avoid terrain-above clamp near tunnel entrances.
+                float camDropFromPlayer = targetPos.z - *camWmoH;
+                if ((*camTerrainH - *camWmoH) > 1.2f &&
+                    (*camTerrainH - *camWmoH) < 8.0f &&
+                    camDropFromPlayer >= -0.4f &&
+                    camDropFromPlayer < 1.8f) {
+                    camFloorH = camWmoH;
+                } else {
+                    camFloorH = selectClosestFloor(camTerrainH, camWmoH, smoothedCamPos.z);
+                }
+            } else {
+                camFloorH = selectReachableFloor(
+                    camTerrainH, camWmoH, smoothedCamPos.z, 0.5f);
+            }
             if (camFloorH && smoothedCamPos.z < *camFloorH + MIN_FLOOR_CLEARANCE) {
                 smoothedCamPos.z = *camFloorH + MIN_FLOOR_CLEARANCE;
             }
diff --git a/src/rendering/m2_renderer.cpp b/src/rendering/m2_renderer.cpp
index cf68b3b..8ec2514 100644
--- a/src/rendering/m2_renderer.cpp
+++ b/src/rendering/m2_renderer.cpp
@@ -1405,6 +1405,10 @@ static void computeBoneMatrices(const M2ModelGPU& model, M2Instance& instance) {
 }
 
 void M2Renderer::update(float deltaTime, const glm::vec3& cameraPos, const glm::mat4& viewProjection) {
+    if (spatialIndexDirty_) {
+        rebuildSpatialIndex();
+    }
+
     float dtMs = deltaTime * 1000.0f;
 
     // Cache camera state for frustum-culling bone computation
@@ -2485,7 +2489,7 @@ void M2Renderer::setInstancePosition(uint32_t instanceId, const glm::vec3& posit
         getTightCollisionBounds(modelIt->second, localMin, localMax);
         transformAABB(inst.modelMatrix, localMin, localMax, inst.worldBoundsMin, inst.worldBoundsMax);
     }
-    rebuildSpatialIndex();
+    spatialIndexDirty_ = true;
 }
 
 void M2Renderer::setInstanceTransform(uint32_t instanceId, const glm::mat4& transform) {
@@ -2507,7 +2511,7 @@ void M2Renderer::setInstanceTransform(uint32_t instanceId, const glm::mat4& tran
         getTightCollisionBounds(modelIt->second, localMin, localMax);
         transformAABB(inst.modelMatrix, localMin, localMax, inst.worldBoundsMin, inst.worldBoundsMax);
     }
-    rebuildSpatialIndex();
+    spatialIndexDirty_ = true;
 }
 
 void M2Renderer::removeInstance(uint32_t instanceId) {
@@ -2595,6 +2599,7 @@ void M2Renderer::rebuildSpatialIndex() {
             }
         }
     }
+    spatialIndexDirty_ = false;
 }
 
 void M2Renderer::gatherCandidates(const glm::vec3& queryMin, const glm::vec3& queryMax,
diff --git a/src/rendering/wmo_renderer.cpp b/src/rendering/wmo_renderer.cpp
index 60e08df..2a371a3 100644
--- a/src/rendering/wmo_renderer.cpp
+++ b/src/rendering/wmo_renderer.cpp
@@ -675,6 +675,11 @@ void WMORenderer::removeInstance(uint32_t instanceId) {
     auto it = std::find_if(instances.begin(), instances.end(),
                           [instanceId](const WMOInstance& inst) { return inst.id == instanceId; });
     if (it != instances.end()) {
+        if (m2Renderer_) {
+            for (const auto& doodad : it->doodads) {
+                m2Renderer_->removeInstance(doodad.m2InstanceId);
+            }
+        }
         instances.erase(it);
         rebuildSpatialIndex();
         core::Logger::getInstance().debug("Removed WMO instance ", instanceId);
@@ -687,6 +692,17 @@ void WMORenderer::removeInstances(const std::vector<uint32_t>& instanceIds) {
     }
 
     std::unordered_set<uint32_t> toRemove(instanceIds.begin(), instanceIds.end());
+    if (m2Renderer_) {
+        for (const auto& inst : instances) {
+            if (toRemove.find(inst.id) == toRemove.end()) {
+                continue;
+            }
+            for (const auto& doodad : inst.doodads) {
+                m2Renderer_->removeInstance(doodad.m2InstanceId);
+            }
+        }
+    }
+
     const size_t oldSize = instances.size();
     instances.erase(std::remove_if(instances.begin(), instances.end(),
                    [&toRemove](const WMOInstance& inst) {
@@ -702,6 +718,13 @@ void WMORenderer::removeInstances(const std::vector<uint32_t>& instanceIds) {
 }
 
 void WMORenderer::clearInstances() {
+    if (m2Renderer_) {
+        for (const auto& inst : instances) {
+            for (const auto& doodad : inst.doodads) {
+                m2Renderer_->removeInstance(doodad.m2InstanceId);
+            }
+        }
+    }
     instances.clear();
     spatialGrid.clear();
     instanceIndexById.clear();