From 43c03e224a4e1175309d1a3df94092269eedde3c Mon Sep 17 00:00:00 2001
From: Kaleb Reid <78945904+Kaleb-Reid@users.noreply.github.com>
Date: Wed, 8 Oct 2025 14:48:15 -0700
Subject: [PATCH] Use correct ndc for proximity fade in Compatibility

---
 scene/resources/material.cpp | 3 ++-
 1 file changed, 2 insertions(+), 1 deletion(-)

diff --git a/scene/resources/material.cpp b/scene/resources/material.cpp
index 64d4fd8e176..c130d98a2ec 100644
--- a/scene/resources/material.cpp
+++ b/scene/resources/material.cpp
@@ -1842,7 +1842,8 @@ void fragment() {)";
 		code += R"(
 	// Proximity Fade: Enabled
 	float proximity_depth_tex = textureLod(depth_texture, SCREEN_UV, 0.0).r;
-	vec4 proximity_view_pos = INV_PROJECTION_MATRIX * vec4(SCREEN_UV * 2.0 - 1.0, proximity_depth_tex, 1.0);
+	vec4 ndc = OUTPUT_IS_SRGB ? vec4(vec3(SCREEN_UV, proximity_depth_tex) * 2.0 - 1.0, 1.0) : vec4(SCREEN_UV * 2.0 - 1.0, proximity_depth_tex, 1.0);
+	vec4 proximity_view_pos = INV_PROJECTION_MATRIX * ndc;
 	proximity_view_pos.xyz /= proximity_view_pos.w;
 	ALPHA *= clamp(1.0 - smoothstep(proximity_view_pos.z + proximity_fade_distance, proximity_view_pos.z, VERTEX.z), 0.0, 1.0);
 )";