diff --git a/com.unity.render-pipelines.universal/CHANGELOG.md b/com.unity.render-pipelines.universal/CHANGELOG.md
index 5c9b26fc39e..43f7d04e88f 100644
--- a/com.unity.render-pipelines.universal/CHANGELOG.md
+++ b/com.unity.render-pipelines.universal/CHANGELOG.md
@@ -59,6 +59,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - 2D shaders now use half-precision floats whenever precise results are not necessary.
 
 ### Fixed
+- Fixed a performance problem with ShaderPreprocessor with large amount of active shader variants in the project 
 - Fixed an issue where linear to sRGB conversion occurred twice on certain Android devices.
 - Fixed an issue where there were 2 widgets showing the outer angle of a spot light.
 - Fixed an issue where Unity rendered fullscreen quads with the pink error shader when you enabled the Stop NaN post-processing pass.
diff --git a/com.unity.render-pipelines.universal/Editor/ShaderPreprocessor.cs b/com.unity.render-pipelines.universal/Editor/ShaderPreprocessor.cs
index 7080d6472a3..554b7da9477 100644
--- a/com.unity.render-pipelines.universal/Editor/ShaderPreprocessor.cs
+++ b/com.unity.render-pipelines.universal/Editor/ShaderPreprocessor.cs
@@ -212,14 +212,23 @@ public void OnProcessShader(Shader shader, ShaderSnippetData snippetData, IList<
                 return;
 
             int prevVariantCount = compilerDataList.Count;
-
-            for (int i = 0; i < compilerDataList.Count; ++i)
+            
+            var inputShaderVariantCount = compilerDataList.Count;
+            for (int i = 0; i < inputShaderVariantCount;)
             {
-                if (StripUnused(ShaderBuildPreprocessor.supportedFeatures, shader, snippetData, compilerDataList[i]))
-                {
+                bool removeInput = StripUnused(ShaderBuildPreprocessor.supportedFeatures, shader, snippetData, compilerDataList[i]);
+                if (removeInput)
+                    compilerDataList[i] = compilerDataList[--inputShaderVariantCount];
+                else
+                    ++i;
+            }
+            
+            if(compilerDataList is List<ShaderCompilerData> inputDataList)
+                inputDataList.RemoveRange(inputShaderVariantCount, inputDataList.Count - inputShaderVariantCount);
+            else
+            {
+                for(int i = compilerDataList.Count -1; i >= inputShaderVariantCount; --i)
                     compilerDataList.RemoveAt(i);
-                    --i;
-                }
             }
 
             if (urpAsset.shaderVariantLogLevel != ShaderVariantLogLevel.Disabled)