diff --git a/com.unity.render-pipelines.high-definition/CHANGELOG.md b/com.unity.render-pipelines.high-definition/CHANGELOG.md
index 8e8464efffe..8aabb90d688 100644
--- a/com.unity.render-pipelines.high-definition/CHANGELOG.md
+++ b/com.unity.render-pipelines.high-definition/CHANGELOG.md
@@ -42,6 +42,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - Fixed shader graph not supporting indirectdxr multibounce (case 1294694).
 - Fixed the planar depth texture not being properly created and rendered to (case 1299617).
 - Fixed C# 8 compilation issue with turning on nullable checks (case 1300167)
+- Fixed affects AO for deacl materials.
 
 ### Changed
 - Removed the material pass probe volumes evaluation mode.
diff --git a/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalUI.cs b/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalUI.cs
index e8d4d10e9fe..b3ad35c5241 100644
--- a/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalUI.cs
+++ b/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalUI.cs
@@ -47,11 +47,14 @@ protected override void OnMaterialGUI(MaterialEditor materialEditor, MaterialPro
         // All Setup Keyword functions must be static. It allow to create script to automatically update the shaders with a script if code change
         static public void SetupCommonDecalMaterialKeywordsAndPass(Material material)
         {
+            bool affectsMaskmap = false;
+            affectsMaskmap |= material.HasProperty(kAffectMetal) && material.GetFloat(kAffectMetal) == 1.0f;
+            affectsMaskmap |= material.HasProperty(kAffectAO) && material.GetFloat(kAffectAO) == 1.0f;
+            affectsMaskmap |= material.HasProperty(kAffectSmoothness) && material.GetFloat(kAffectSmoothness) == 1.0f;
+
             CoreUtils.SetKeyword(material, "_MATERIAL_AFFECTS_ALBEDO", material.HasProperty(kAffectAlbedo) && material.GetFloat(kAffectAlbedo) == 1.0f);
             CoreUtils.SetKeyword(material, "_MATERIAL_AFFECTS_NORMAL", material.HasProperty(kAffectNormal) && material.GetFloat(kAffectNormal) == 1.0f);
-            CoreUtils.SetKeyword(material, "_MATERIAL_AFFECTS_MASKMAP", material.HasProperty(kAffectMetal) && material.GetFloat(kAffectMetal) == 1.0f);
-            CoreUtils.SetKeyword(material, "_MATERIAL_AFFECTS_MASKMAP", material.HasProperty(kAffectAO) && material.GetFloat(kAffectAO) == 1.0f);
-            CoreUtils.SetKeyword(material, "_MATERIAL_AFFECTS_MASKMAP", material.HasProperty(kAffectSmoothness) && material.GetFloat(kAffectSmoothness) == 1.0f);
+            CoreUtils.SetKeyword(material, "_MATERIAL_AFFECTS_MASKMAP", affectsMaskmap);
 
             // Albedo : RT0 RGB, A - sRGB
             // Normal : RT1 RGB, A