diff --git a/editor/plugins/spatial_editor_plugin.cpp b/editor/plugins/spatial_editor_plugin.cpp
index 076e4077957..93628b9ab3c 100644
--- a/editor/plugins/spatial_editor_plugin.cpp
+++ b/editor/plugins/spatial_editor_plugin.cpp
@@ -3448,58 +3448,16 @@ Vector3 SpatialEditorViewport::_get_instance_position(const Point2 &p_pos) const
 	Vector3 world_ray = _get_ray(p_pos);
 	Vector3 world_pos = _get_ray_pos(p_pos);
 
-	Vector<ObjectID> instances = VisualServer::get_singleton()->instances_cull_ray(world_pos, world_ray, get_tree()->get_root()->get_world()->get_scenario());
-	Set<Ref<EditorSpatialGizmo>> found_gizmos;
-
-	float closest_dist = MAX_DISTANCE;
-
 	Vector3 point = world_pos + world_ray * MAX_DISTANCE;
-	Vector3 normal = Vector3(0.0, 0.0, 0.0);
 
-	for (int i = 0; i < instances.size(); i++) {
-		MeshInstance *mesh_instance = Object::cast_to<MeshInstance>(ObjectDB::get_instance(instances[i]));
+	PhysicsDirectSpaceState *ss = get_tree()->get_root()->get_world()->get_direct_space_state();
+	PhysicsDirectSpaceState::RayResult result;
 
-		if (!mesh_instance) {
-			continue;
-		}
-
-		Ref<EditorSpatialGizmo> seg = mesh_instance->get_gizmo();
-
-		if ((!seg.is_valid()) || found_gizmos.has(seg)) {
-			continue;
-		}
-
-		found_gizmos.insert(seg);
-
-		Vector3 hit_point;
-		Vector3 hit_normal;
-		bool inters = seg->intersect_ray(camera, p_pos, hit_point, hit_normal, nullptr, false);
-
-		if (!inters) {
-			continue;
-		}
-
-		float dist = world_pos.distance_to(hit_point);
-
-		if (dist < 0) {
-			continue;
-		}
-
-		if (dist < closest_dist) {
-			closest_dist = dist;
-			point = hit_point;
-			normal = hit_normal;
-		}
+	if (ss->intersect_ray(world_pos, world_pos + world_ray * MAX_DISTANCE, result)) {
+		point = result.position;
 	}
-	Vector3 offset = Vector3();
-	for (int i = 0; i < 3; i++) {
-		if (normal[i] > 0.0) {
-			offset[i] = (preview_bounds->get_size()[i] - (preview_bounds->get_size()[i] + preview_bounds->get_position()[i]));
-		} else if (normal[i] < 0.0) {
-			offset[i] = -(preview_bounds->get_size()[i] + preview_bounds->get_position()[i]);
-		}
-	}
-	return point + offset;
+
+	return point;
 }
 
 AABB SpatialEditorViewport::_calculate_spatial_bounds(const Spatial *p_parent, bool p_exclude_toplevel_transform) {