diff --git a/com.unity.render-pipelines.high-definition/CHANGELOG.md b/com.unity.render-pipelines.high-definition/CHANGELOG.md
index 9c3469d1869..531f7ba660f 100644
--- a/com.unity.render-pipelines.high-definition/CHANGELOG.md
+++ b/com.unity.render-pipelines.high-definition/CHANGELOG.md
@@ -34,6 +34,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - Fixed Clearcoat on Stacklit or Lit breaks when URP is imported into the project (case 1297806)
 - Fixed timing issues with accumulation motion blur
 - Fixed an issue with the frame count management for the volumetric fog (case 1299251).
+- Fixed an issue with material using distortion from ShaderGraph init after Material creation (case 1294026)
 
 ### Changed
 - Removed the material pass probe volumes evaluation mode.
diff --git a/com.unity.render-pipelines.high-definition/Editor/Material/Unlit/BaseUnlitGUI.cs b/com.unity.render-pipelines.high-definition/Editor/Material/Unlit/BaseUnlitGUI.cs
index 61e90c4d055..49b7e012881 100644
--- a/com.unity.render-pipelines.high-definition/Editor/Material/Unlit/BaseUnlitGUI.cs
+++ b/com.unity.render-pipelines.high-definition/Editor/Material/Unlit/BaseUnlitGUI.cs
@@ -299,6 +299,12 @@ static public void SetupBaseUnlitPass(this Material material)
                 material.SetShaderPassEnabled(HDShaderPassNames.s_MetaStr, enablePass);
                 material.SetShaderPassEnabled(HDShaderPassNames.s_ShadowCasterStr, enablePass);
             }
+            else if (material.shader.IsShaderGraph())
+            {
+                // Shader graph generate distortion pass only if required. So we can safely enable it
+                // all the time here.
+                material.SetShaderPassEnabled(HDShaderPassNames.s_DistortionVectorsStr, true);
+            }
 
             if (material.HasProperty(kTransparentDepthPrepassEnable))
             {