diff --git a/com.unity.render-pipelines.high-definition/CHANGELOG.md b/com.unity.render-pipelines.high-definition/CHANGELOG.md
index 780473f4aea..11de7c0bdb5 100644
--- a/com.unity.render-pipelines.high-definition/CHANGELOG.md
+++ b/com.unity.render-pipelines.high-definition/CHANGELOG.md
@@ -585,6 +585,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - Fix error when removing DecalProjector from component contextual menu (case 1243960)
 - Fixed issue with post process when running in RGBA16 and an object with additive blending is in the scene.
 - Fixed corrupted values on LayeredLit when using Vertex Color multiply mode to multiply and MSAA is activated. 
+- Fix conflicts with Handles manipulation when performing a Reset in DecalComponent (case 1238833)
 
 ### Changed
 - Improve MIP selection for decals on Transparents
diff --git a/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalProjectorEditor.cs b/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalProjectorEditor.cs
index aa2ce0acb8a..8f7e0a840f0 100644
--- a/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalProjectorEditor.cs
+++ b/com.unity.render-pipelines.high-definition/Editor/Material/Decal/DecalProjectorEditor.cs
@@ -109,7 +109,7 @@ private void OnEnable()
             UpdateMaterialEditor();
             foreach (var decalProjector in targets)
             {
-                (decalProjector as DecalProjector).OnMaterialChange += UpdateMaterialEditor;
+                (decalProjector as DecalProjector).OnMaterialChange += RequireUpdateMaterialEditor;
             }
 
             // Fetch serialized properties
@@ -128,7 +128,7 @@ private void OnDisable()
             foreach (DecalProjector decalProjector in targets)
             {
                 if (decalProjector != null)
-                    decalProjector.OnMaterialChange -= UpdateMaterialEditor;
+                    decalProjector.OnMaterialChange -= RequireUpdateMaterialEditor;
             }
             s_Owner = null;
         }
@@ -148,6 +148,10 @@ public Bounds OnGetFrameBounds()
             return new Bounds(decalProjector.transform.position, handle.size);
         }
 
+        private bool m_RequireUpdateMaterialEditor = false;
+
+        private void RequireUpdateMaterialEditor() => m_RequireUpdateMaterialEditor = true;
+
         public void UpdateMaterialEditor()
         {
             int validMaterialsCount = 0;
@@ -318,41 +322,49 @@ Bounds GetBoundsGetter()
 
         public override void OnInspectorGUI()
         {
-            EditorGUI.BeginChangeCheck();
+            serializedObject.Update();
 
-            EditorGUILayout.BeginHorizontal();
-            GUILayout.FlexibleSpace();
-            DoInspectorToolbar(k_EditVolumeModes, editVolumeLabels, GetBoundsGetter, this);
+            if (m_RequireUpdateMaterialEditor)
+            {
+                UpdateMaterialEditor();
+                m_RequireUpdateMaterialEditor = false;
+            }
 
-            //[TODO: add editable pivot. Uncomment this when ready]
-            //DoInspectorToolbar(k_EditPivotModes, editPivotLabels, GetBoundsGetter, this);
-            GUILayout.FlexibleSpace();
-            EditorGUILayout.EndHorizontal();
+            EditorGUI.BeginChangeCheck();
+            {
+                EditorGUILayout.BeginHorizontal();
+                GUILayout.FlexibleSpace();
+                DoInspectorToolbar(k_EditVolumeModes, editVolumeLabels, GetBoundsGetter, this);
 
-            EditorGUILayout.Space();
+                //[TODO: add editable pivot. Uncomment this when ready]
+                //DoInspectorToolbar(k_EditPivotModes, editPivotLabels, GetBoundsGetter, this);
+                GUILayout.FlexibleSpace();
+                EditorGUILayout.EndHorizontal();
 
-            EditorGUILayout.PropertyField(m_Size, k_SizeContent);
-            EditorGUILayout.PropertyField(m_MaterialProperty, k_MaterialContent);
+                EditorGUILayout.Space();
 
-            EditorGUI.BeginChangeCheck();
-            EditorGUILayout.PropertyField(m_DrawDistanceProperty, k_DistanceContent);
-            if (EditorGUI.EndChangeCheck() && m_DrawDistanceProperty.floatValue < 0f)
-                m_DrawDistanceProperty.floatValue = 0f;
+                EditorGUILayout.PropertyField(m_Size, k_SizeContent);
+                EditorGUILayout.PropertyField(m_MaterialProperty, k_MaterialContent);
 
-            EditorGUILayout.PropertyField(m_FadeScaleProperty, k_FadeScaleContent);
-            EditorGUILayout.PropertyField(m_UVScaleProperty, k_UVScaleContent);
-            EditorGUILayout.PropertyField(m_UVBiasProperty, k_UVBiasContent);
-            EditorGUILayout.PropertyField(m_FadeFactor, k_FadeFactorContent);
+                EditorGUI.BeginChangeCheck();
+                EditorGUILayout.PropertyField(m_DrawDistanceProperty, k_DistanceContent);
+                if (EditorGUI.EndChangeCheck() && m_DrawDistanceProperty.floatValue < 0f)
+                    m_DrawDistanceProperty.floatValue = 0f;
 
-            // only display the affects transparent property if material is HDRP/decal
-            if (showAffectTransparencyHaveMultipleDifferentValue)
-            {
-                using (new EditorGUI.DisabledScope(true))
-                    EditorGUILayout.LabelField(EditorGUIUtility.TrTextContent("Multiple material type in selection"));
-            }
-            else if (showAffectTransparency)
-                EditorGUILayout.PropertyField(m_AffectsTransparencyProperty, k_AffectTransparentContent);
+                EditorGUILayout.PropertyField(m_FadeScaleProperty, k_FadeScaleContent);
+                EditorGUILayout.PropertyField(m_UVScaleProperty, k_UVScaleContent);
+                EditorGUILayout.PropertyField(m_UVBiasProperty, k_UVBiasContent);
+                EditorGUILayout.PropertyField(m_FadeFactor, k_FadeFactorContent);
 
+                // only display the affects transparent property if material is HDRP/decal
+                if (showAffectTransparencyHaveMultipleDifferentValue)
+                {
+                    using (new EditorGUI.DisabledScope(true))
+                        EditorGUILayout.LabelField(EditorGUIUtility.TrTextContent("Multiple material type in selection"));
+                }
+                else if (showAffectTransparency)
+                    EditorGUILayout.PropertyField(m_AffectsTransparencyProperty, k_AffectTransparentContent);
+            }
             if (EditorGUI.EndChangeCheck())
                 serializedObject.ApplyModifiedProperties();
 
diff --git a/com.unity.render-pipelines.high-definition/Runtime/Material/Decal/DecalProjector.cs b/com.unity.render-pipelines.high-definition/Runtime/Material/Decal/DecalProjector.cs
index 4f2504252ed..aa381dd10c3 100644
--- a/com.unity.render-pipelines.high-definition/Runtime/Material/Decal/DecalProjector.cs
+++ b/com.unity.render-pipelines.high-definition/Runtime/Material/Decal/DecalProjector.cs
@@ -212,7 +212,7 @@ internal DecalSystem.DecalHandle Handle
             }
         }
 
-        void OnEnable()
+        void InitMaterial()
         {
             if (m_Material == null)
             {
@@ -223,6 +223,13 @@ void OnEnable()
                 m_Material = null;
 #endif
             }
+        }
+
+        void Reset() => InitMaterial();
+
+        void OnEnable()
+        {
+            InitMaterial();
 
             if (m_Handle != null)
             {