diff --git a/editor/plugins/mesh_library_editor_plugin.cpp b/editor/plugins/mesh_library_editor_plugin.cpp
index aedac7b45d49..89eb253afe6f 100644
--- a/editor/plugins/mesh_library_editor_plugin.cpp
+++ b/editor/plugins/mesh_library_editor_plugin.cpp
@@ -127,7 +127,7 @@ void MeshLibraryEditor::_import_scene(Node *p_scene, Ref<MeshLibrary> p_library,
 						continue;
 					MeshLibrary::ShapeData shape_data;
 					shape_data.shape = collision;
-					shape_data.local_transform = sb->shape_owner_get_transform(E->get());
+					shape_data.local_transform = sb->get_transform() * sb->shape_owner_get_transform(E->get());
 					collisions.push_back(shape_data);
 				}
 			}
@@ -136,17 +136,20 @@ void MeshLibraryEditor::_import_scene(Node *p_scene, Ref<MeshLibrary> p_library,
 		p_library->set_item_shapes(id, collisions);
 
 		Ref<NavigationMesh> navmesh;
+		Transform navmesh_transform;
 		for (int j = 0; j < mi->get_child_count(); j++) {
 			Node *child2 = mi->get_child(j);
 			if (!Object::cast_to<NavigationMeshInstance>(child2))
 				continue;
 			NavigationMeshInstance *sb = Object::cast_to<NavigationMeshInstance>(child2);
 			navmesh = sb->get_navigation_mesh();
+			navmesh_transform = sb->get_transform();
 			if (!navmesh.is_null())
 				break;
 		}
 		if (!navmesh.is_null()) {
 			p_library->set_item_navmesh(id, navmesh);
+			p_library->set_item_navmesh_transform(id, navmesh_transform);
 		}
 	}
 
diff --git a/modules/gridmap/grid_map.cpp b/modules/gridmap/grid_map.cpp
index fe1eac6dc985..32a014e76db0 100644
--- a/modules/gridmap/grid_map.cpp
+++ b/modules/gridmap/grid_map.cpp
@@ -517,7 +517,7 @@ bool GridMap::_octant_update(const OctantKey &p_key) {
 		Ref<NavigationMesh> navmesh = mesh_library->get_item_navmesh(c.item);
 		if (navmesh.is_valid()) {
 			Octant::NavMesh nm;
-			nm.xform = xform;
+			nm.xform = xform * mesh_library->get_item_navmesh_transform(c.item);
 
 			if (navigation) {
 				nm.id = navigation->navmesh_add(navmesh, xform, this);
diff --git a/scene/resources/mesh_library.cpp b/scene/resources/mesh_library.cpp
index c5125d576dfe..d40a5dee2e71 100644
--- a/scene/resources/mesh_library.cpp
+++ b/scene/resources/mesh_library.cpp
@@ -56,6 +56,8 @@ bool MeshLibrary::_set(const StringName &p_name, const Variant &p_value) {
 			set_item_preview(idx, p_value);
 		else if (what == "navmesh")
 			set_item_navmesh(idx, p_value);
+		else if (what == "navmesh_transform")
+			set_item_navmesh_transform(idx, p_value);
 		else
 			return false;
 
@@ -80,6 +82,8 @@ bool MeshLibrary::_get(const StringName &p_name, Variant &r_ret) const {
 		r_ret = _get_item_shapes(idx);
 	else if (what == "navmesh")
 		r_ret = get_item_navmesh(idx);
+	else if (what == "navmesh_transform")
+		r_ret = get_item_navmesh_transform(idx);
 	else if (what == "preview")
 		r_ret = get_item_preview(idx);
 	else
@@ -95,8 +99,10 @@ void MeshLibrary::_get_property_list(List<PropertyInfo> *p_list) const {
 		String name = "item/" + itos(E->key()) + "/";
 		p_list->push_back(PropertyInfo(Variant::STRING, name + "name"));
 		p_list->push_back(PropertyInfo(Variant::OBJECT, name + "mesh", PROPERTY_HINT_RESOURCE_TYPE, "Mesh"));
+		p_list->push_back(PropertyInfo(Variant::TRANSFORM, name + "mesh_transform"));
 		p_list->push_back(PropertyInfo(Variant::ARRAY, name + "shapes"));
 		p_list->push_back(PropertyInfo(Variant::OBJECT, name + "navmesh", PROPERTY_HINT_RESOURCE_TYPE, "NavigationMesh"));
+		p_list->push_back(PropertyInfo(Variant::TRANSFORM, name + "navmesh_transform"));
 		p_list->push_back(PropertyInfo(Variant::OBJECT, name + "preview", PROPERTY_HINT_RESOURCE_TYPE, "Texture", PROPERTY_USAGE_DEFAULT | PROPERTY_USAGE_EDITOR_HELPER));
 	}
 }
@@ -116,6 +122,7 @@ void MeshLibrary::set_item_name(int p_item, const String &p_name) {
 	emit_changed();
 	_change_notify();
 }
+
 void MeshLibrary::set_item_mesh(int p_item, const Ref<Mesh> &p_mesh) {
 
 	ERR_FAIL_COND(!item_map.has(p_item));
@@ -145,6 +152,15 @@ void MeshLibrary::set_item_navmesh(int p_item, const Ref<NavigationMesh> &p_navm
 	_change_notify();
 }
 
+void MeshLibrary::set_item_navmesh_transform(int p_item, const Transform &p_transform) {
+
+	ERR_FAIL_COND(!item_map.has(p_item));
+	item_map[p_item].navmesh_transform = p_transform;
+	notify_change_to_owners();
+	emit_changed();
+	_change_notify();
+}
+
 void MeshLibrary::set_item_preview(int p_item, const Ref<Texture> &p_preview) {
 
 	ERR_FAIL_COND(!item_map.has(p_item));
@@ -152,11 +168,13 @@ void MeshLibrary::set_item_preview(int p_item, const Ref<Texture> &p_preview) {
 	emit_changed();
 	_change_notify();
 }
+
 String MeshLibrary::get_item_name(int p_item) const {
 
 	ERR_FAIL_COND_V(!item_map.has(p_item), "");
 	return item_map[p_item].name;
 }
+
 Ref<Mesh> MeshLibrary::get_item_mesh(int p_item) const {
 
 	ERR_FAIL_COND_V(!item_map.has(p_item), Ref<Mesh>());
@@ -175,6 +193,12 @@ Ref<NavigationMesh> MeshLibrary::get_item_navmesh(int p_item) const {
 	return item_map[p_item].navmesh;
 }
 
+Transform MeshLibrary::get_item_navmesh_transform(int p_item) const {
+
+	ERR_FAIL_COND_V(!item_map.has(p_item), Transform());
+	return item_map[p_item].navmesh_transform;
+}
+
 Ref<Texture> MeshLibrary::get_item_preview(int p_item) const {
 
 	ERR_FAIL_COND_V(!item_map.has(p_item), Ref<Texture>());
@@ -268,11 +292,13 @@ void MeshLibrary::_bind_methods() {
 	ClassDB::bind_method(D_METHOD("set_item_name", "id", "name"), &MeshLibrary::set_item_name);
 	ClassDB::bind_method(D_METHOD("set_item_mesh", "id", "mesh"), &MeshLibrary::set_item_mesh);
 	ClassDB::bind_method(D_METHOD("set_item_navmesh", "id", "navmesh"), &MeshLibrary::set_item_navmesh);
+	ClassDB::bind_method(D_METHOD("set_item_navmesh_transform", "id", "navmesh"), &MeshLibrary::set_item_navmesh_transform);
 	ClassDB::bind_method(D_METHOD("set_item_shapes", "id", "shapes"), &MeshLibrary::_set_item_shapes);
 	ClassDB::bind_method(D_METHOD("set_item_preview", "id", "texture"), &MeshLibrary::set_item_preview);
 	ClassDB::bind_method(D_METHOD("get_item_name", "id"), &MeshLibrary::get_item_name);
 	ClassDB::bind_method(D_METHOD("get_item_mesh", "id"), &MeshLibrary::get_item_mesh);
 	ClassDB::bind_method(D_METHOD("get_item_navmesh", "id"), &MeshLibrary::get_item_navmesh);
+	ClassDB::bind_method(D_METHOD("get_item_navmesh_transform", "id"), &MeshLibrary::get_item_navmesh_transform);
 	ClassDB::bind_method(D_METHOD("get_item_shapes", "id"), &MeshLibrary::_get_item_shapes);
 	ClassDB::bind_method(D_METHOD("get_item_preview", "id"), &MeshLibrary::get_item_preview);
 	ClassDB::bind_method(D_METHOD("remove_item", "id"), &MeshLibrary::remove_item);
diff --git a/scene/resources/mesh_library.h b/scene/resources/mesh_library.h
index 849a0577ebfb..4ae4fc6483dc 100644
--- a/scene/resources/mesh_library.h
+++ b/scene/resources/mesh_library.h
@@ -52,6 +52,7 @@ public:
 		Ref<Mesh> mesh;
 		Vector<ShapeData> shapes;
 		Ref<Texture> preview;
+		Transform navmesh_transform;
 		Ref<NavigationMesh> navmesh;
 	};
 
@@ -72,11 +73,13 @@ public:
 	void set_item_name(int p_item, const String &p_name);
 	void set_item_mesh(int p_item, const Ref<Mesh> &p_mesh);
 	void set_item_navmesh(int p_item, const Ref<NavigationMesh> &p_navmesh);
+	void set_item_navmesh_transform(int p_item, const Transform &p_transform);
 	void set_item_shapes(int p_item, const Vector<ShapeData> &p_shapes);
 	void set_item_preview(int p_item, const Ref<Texture> &p_preview);
 	String get_item_name(int p_item) const;
 	Ref<Mesh> get_item_mesh(int p_item) const;
 	Ref<NavigationMesh> get_item_navmesh(int p_item) const;
+	Transform get_item_navmesh_transform(int p_item) const;
 	Vector<ShapeData> get_item_shapes(int p_item) const;
 	Ref<Texture> get_item_preview(int p_item) const;