diff --git a/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditor.cs b/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditor.cs
index 8c40551adc9..9e6660fbde7 100644
--- a/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditor.cs
+++ b/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditor.cs
@@ -30,6 +30,10 @@ public class LightAnchorEditor : Editor
         VisualElement m_GameViewRootElement;
         VisualElement m_ClickCatcher;
 
+        SerializedProperty m_DistanceProperty;
+        SerializedProperty m_FrameSpaceProperty;
+        SerializedProperty m_AnchorPositionOverrideProperty;
+
         LightAnchor manipulator
         {
             get { return target as LightAnchor; }
@@ -62,6 +66,7 @@ public override void OnInspectorGUI()
             bool pitchChanged = false;
             bool rollChanged = false;
             bool distanceChanged = false;
+            bool positionOverrideChanged = false;
             bool upChanged = false;
 
             using (var change = new EditorGUI.ChangeCheckScope())
@@ -126,14 +131,17 @@ public override void OnInspectorGUI()
                 EditorGUILayout.Space();
 
                 EditorGUI.BeginChangeCheck();
-                m_Distance = EditorGUILayout.FloatField(LightAnchorStyles.distanceProperty, manipulator.distance);
+                EditorGUILayout.PropertyField(m_DistanceProperty, LightAnchorStyles.distanceProperty);
                 distanceChanged = EditorGUI.EndChangeCheck();
 
                 EditorGUI.BeginChangeCheck();
-                var dropRect = EditorGUILayout.GetControlRect(false, EditorGUIUtility.singleLineHeight);
-                m_FrameSpace = (LightAnchor.UpDirection)EditorGUI.EnumPopup(dropRect, LightAnchorStyles.upDirectionProperty, manipulator.frameSpace);
+                EditorGUILayout.PropertyField(m_FrameSpaceProperty, LightAnchorStyles.upDirectionProperty);
                 upChanged = EditorGUI.EndChangeCheck();
 
+                EditorGUI.BeginChangeCheck();
+                EditorGUILayout.PropertyField(m_AnchorPositionOverrideProperty, LightAnchorStyles.anchorPositionOverrideProperty);
+                positionOverrideChanged = EditorGUI.EndChangeCheck();
+
                 if (m_FoldoutPreset = EditorGUILayout.Foldout(m_FoldoutPreset, "Common"))
                 {
                     Color cachedColor = GUI.backgroundColor;
@@ -266,11 +274,11 @@ public override void OnInspectorGUI()
                 {
                     Undo.RecordObjects(new UnityEngine.Object[] { target, manipulator.transform }, "Light Anchor Change");
 
-                    manipulator.frameSpace = m_FrameSpace;
+                    manipulator.frameSpace = (LightAnchor.UpDirection)m_FrameSpaceProperty.intValue;
                     manipulator.SynchronizeOnTransform(camera);
                     UpdateCache();
                 }
-                if (yawChanged || pitchChanged || rollChanged || distanceChanged)
+                if (yawChanged || pitchChanged || rollChanged || distanceChanged || positionOverrideChanged)
                 {
                     Undo.RecordObjects(new UnityEngine.Object[] { target, manipulator.transform }, "Light Anchor Change");
 
@@ -281,7 +289,32 @@ public override void OnInspectorGUI()
                     if (rollChanged)
                         manipulator.roll = m_Roll;
                     if (distanceChanged)
-                        manipulator.distance = m_Distance;
+                        manipulator.distance = m_DistanceProperty.floatValue;
+                    if (positionOverrideChanged)
+                    {
+                        var newTransform = m_AnchorPositionOverrideProperty.objectReferenceValue as Transform;
+
+                        if (newTransform != null)
+                        {
+                            // Check that the assigned transform is not child of the light anchor, otherwise it would cause problems when moving the light position
+                            if (newTransform.IsChildOf(manipulator.transform))
+                                Debug.LogError($"Can't assign '{newTransform.name}' because it's a child of the Light Anchor component");
+                            else
+                            {
+                                float newDistance = Vector3.Distance(manipulator.transform.position, newTransform.position);
+                                manipulator.anchorPositionOverride = newTransform;
+                                // Orient the object to face the new override position
+                                manipulator.SynchronizeOnTransform(camera);
+                                // And adjust it's distance to avoid modifying it's position.
+                                manipulator.distance = newDistance;
+                            }
+                        }
+                        else
+                            manipulator.anchorPositionOverride = newTransform;
+                    }
+
+                    if (manipulator.anchorPositionOverride != null)
+                        anchor = manipulator.anchorPosition;
 
                     manipulator.UpdateTransform(camera, anchor);
                     IsCacheInvalid(manipulator);
@@ -321,6 +354,10 @@ void OnEnable()
                     EnableClickCatcher(m_EnableClickCatcher);
                 }
             }
+
+            m_DistanceProperty = serializedObject.FindProperty("m_Distance");
+            m_FrameSpaceProperty = serializedObject.FindProperty("m_FrameSpace");
+            m_AnchorPositionOverrideProperty = serializedObject.FindProperty("m_AnchorPositionOverride");
         }
 
         void EditorToolsOnactiveToolChanged()
@@ -561,6 +598,7 @@ static class LightAnchorStyles
         static public GUIContent presetTextureRimRight = EditorGUIUtility.TrTextContent("", "Rim Right", UnityEditor.Rendering.CoreEditorUtils.LoadIcon(LightAnchorStyles.k_IconFolder, "PresetRim_Right", ".png", false));
         static public GUIContent distanceProperty = EditorGUIUtility.TrTextContent("Distance", "Controls how far 'back', the light is placed from its anchor");
         static public GUIContent upDirectionProperty = EditorGUIUtility.TrTextContent("Up direction", "Specifies the space in which the up direction of the anchor is defined. Local is relative to the camera.");
+        static public GUIContent anchorPositionOverrideProperty = EditorGUIUtility.TrTextContent("Anchor Position Override", "Specifies the anchor position manually instead of relying on the angles, distance and transform position to compute the anchor position.");
         static public GUIContent[] angleSubContent = new[]
         {
             EditorGUIUtility.TrTextContent("Orbit"),
diff --git a/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditorTool.cs b/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditorTool.cs
index 4fc2c47dc20..206956d9e3c 100644
--- a/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditorTool.cs
+++ b/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorEditorTool.cs
@@ -30,7 +30,10 @@ public override GUIContent toolbarIcon
         /// <returns>Always return true</returns>
         public override bool IsAvailable()
         {
-            return true;
+            var lightAnchor = target as LightAnchor;
+
+            // Hide the transform if a position override object is assigned
+            return (lightAnchor?.anchorPositionOverride == null);
         }
 
         /// <summary>
@@ -39,7 +42,7 @@ public override bool IsAvailable()
         /// <param name="window">The window that is displaying the custom editor tool.</param>
         public override void OnToolGUI(EditorWindow window)
         {
-            if (target == null)
+            if (target is LightAnchor l && l?.anchorPositionOverride == null)
                 return;
 
             DoTargetGUI(target);
@@ -112,7 +115,7 @@ LightAnchorHandles GetHandles(UnityObject obj)
             LightAnchorHandles handles;
             if (!m_LightAnchorHandles.TryGetValue(obj, out handles))
             {
-                handles = new LightAnchorHandles();
+                handles = new LightAnchorHandles(obj as LightAnchor);
                 m_LightAnchorHandles.Add(obj, handles);
             }
 
diff --git a/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorHandles.cs b/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorHandles.cs
index 99bc7dd85e6..f01bc2d0394 100644
--- a/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorHandles.cs
+++ b/com.unity.render-pipelines.core/Editor/Lighting/LightAnchorHandles.cs
@@ -16,11 +16,15 @@ public class LightAnchorHandles
         /// </summary>
         public Vector3 anchorPosition { get; set; }
 
+        LightAnchor target;
+
         /// <summary>
         /// Initializes and returns an instance of LightAnchorHandles
         /// </summary>
-        public LightAnchorHandles()
+        /// <param name="target">Target object</param>
+        public LightAnchorHandles(LightAnchor target)
         {
+            this.target = target;
         }
 
         /// <summary>
@@ -31,7 +35,12 @@ public void OnGUI()
             Handles.color = Color.yellow;
             Handles.DrawDottedLine(lightPosition, anchorPosition, 2f);
 
-            anchorPosition = Handles.PositionHandle(anchorPosition, Quaternion.identity);
+            // Orient the handle rotation depending on the editor pivot rotation mode
+            var handleRotation = Quaternion.identity;
+            if (Tools.pivotRotation == PivotRotation.Local && target != null)
+                handleRotation = target.transform.rotation;
+
+            anchorPosition = Handles.PositionHandle(anchorPosition, handleRotation);
         }
     }
 }
diff --git a/com.unity.render-pipelines.core/Runtime/Lights/LightAnchor.cs b/com.unity.render-pipelines.core/Runtime/Lights/LightAnchor.cs
index df00a3ab726..e8a88932005 100644
--- a/com.unity.render-pipelines.core/Runtime/Lights/LightAnchor.cs
+++ b/com.unity.render-pipelines.core/Runtime/Lights/LightAnchor.cs
@@ -10,7 +10,6 @@ namespace UnityEngine
     /// Represents camera-space light controls around a virtual pivot point.
     /// </summary>
     [AddComponentMenu("Rendering/Light Anchor")]
-    [RequireComponent(typeof(Light))]
     [ExecuteInEditMode]
     [DisallowMultipleComponent]
     [CoreRPHelpURLAttribute("View-Lighting-Tool")]
@@ -19,13 +18,18 @@ public class LightAnchor : MonoBehaviour
         const float k_ArcRadius = 5;
         const float k_AxisLength = 10;
 
-        [SerializeField]
+        [SerializeField, Min(0)]
         float m_Distance = 0f;
         [SerializeField]
         UpDirection m_FrameSpace = UpDirection.World;
+        [SerializeField]
+        Transform m_AnchorPositionOverride;
 
+        [SerializeField]
         float m_Yaw;
+        [SerializeField]
         float m_Pitch;
+        [SerializeField]
         float m_Roll;
 
         /// <summary>
@@ -69,8 +73,8 @@ public float roll
         /// </summary>
         public float distance
         {
-            get { return m_Distance; }
-            set { m_Distance = Mathf.Max(value, .01f); }
+            get => m_Distance;
+            set => m_Distance = Mathf.Max(0, value);
         }
 
         /// <summary>
@@ -102,7 +106,13 @@ public UpDirection frameSpace
         /// </summary>
         public Vector3 anchorPosition
         {
-            get { return transform.position + transform.forward * m_Distance; }
+            get
+            {
+                if (anchorPositionOverride != null)
+                    return anchorPositionOverride.position;
+                else
+                    return transform.position + transform.forward * distance;
+            }
         }
 
         struct Axes
@@ -112,6 +122,16 @@ struct Axes
             public Vector3 forward;
         }
 
+        /// <summary>
+        /// Overrides the pivot of used to compute the light position. This is useful to track an existing object in the scene.
+        /// The transform of the light will be automatically updated by the Update() method of the LightAnchor.
+        /// </summary>
+        public Transform anchorPositionOverride
+        {
+            get => m_AnchorPositionOverride;
+            set => m_AnchorPositionOverride = value;
+        }
+
         /// <summary>
         /// Normalizes the input angle to be in the range of -180 and 180.
         /// </summary>
@@ -136,6 +156,10 @@ public void SynchronizeOnTransform(Camera camera)
 
             Vector3 worldAnchorToLight = transform.position - anchorPosition;
 
+            // In case the distance is 0 or the anchor override is at the same position than the light anchor
+            if (worldAnchorToLight.magnitude == 0)
+                worldAnchorToLight = -transform.forward;
+
             Vector3 projectOnGround = Vector3.ProjectOnPlane(worldAnchorToLight, axes.up);
             projectOnGround.Normalize();
 
@@ -162,7 +186,28 @@ public void UpdateTransform(Camera camera, Vector3 anchor)
 
         Axes GetWorldSpaceAxes(Camera camera)
         {
+            // Fallback when the light anchor object is child of the camera (bad setup)
+            if (transform.IsChildOf(camera.transform))
+            {
+                return new Axes
+                {
+                    up = Vector3.up,
+                    right = Vector3.right,
+                    forward = Vector3.forward,
+                };
+            }
+
             Matrix4x4 viewToWorld = camera.cameraToWorldMatrix;
+
+            // Correct view to world for perspective
+            if (!camera.orthographic && camera.transform.position != anchorPosition)
+            {
+                var d = (anchorPosition - camera.transform.position).normalized;
+                var f = Quaternion.LookRotation(d);
+                viewToWorld = Matrix4x4.Scale(new Vector3(1, 1, -1)) * Matrix4x4.TRS(camera.transform.position, f, Vector3.one).inverse;
+                viewToWorld = viewToWorld.inverse;
+            }
+
             if (m_FrameSpace == UpDirection.World)
             {
                 Vector3 viewUp = (Vector3)(Camera.main.worldToCameraMatrix * Vector3.up);
@@ -182,6 +227,15 @@ Axes GetWorldSpaceAxes(Camera camera)
             };
         }
 
+        void Update()
+        {
+            if (anchorPositionOverride == null || Camera.main == null)
+                return;
+
+            if (anchorPositionOverride.hasChanged || Camera.main.transform.hasChanged)
+                UpdateTransform(Camera.main, anchorPosition);
+        }
+
         void OnDrawGizmosSelected()
         {
             var camera = Camera.main;
@@ -191,6 +245,8 @@ void OnDrawGizmosSelected()
                 return;
             }
 
+            // TODO: fix light rotated when camera rotates
+
             Axes axes = GetWorldSpaceAxes(camera);
             Vector3 anchor = anchorPosition;
             Vector3 d = transform.position - anchor;
@@ -229,10 +285,10 @@ void UpdateTransform(Vector3 up, Vector3 right, Vector3 forward, Vector3 anchor)
         {
             Quaternion worldYawRot = Quaternion.AngleAxis(m_Yaw, up);
             Quaternion worldPitchRot = Quaternion.AngleAxis(m_Pitch, right);
-            Vector3 worldPosition = anchor + (worldYawRot * worldPitchRot) * forward * m_Distance;
+            Vector3 worldPosition = anchor + (worldYawRot * worldPitchRot) * forward * distance;
             transform.position = worldPosition;
 
-            Vector3 lookAt = (anchor - worldPosition).normalized;
+            Vector3 lookAt = -((worldYawRot * worldPitchRot) * forward).normalized;
             Vector3 angles = Quaternion.LookRotation(lookAt, up).eulerAngles;
             angles.z = m_Roll;
             transform.eulerAngles = angles;
diff --git a/com.unity.render-pipelines.high-definition/CHANGELOG.md b/com.unity.render-pipelines.high-definition/CHANGELOG.md
index 8111f5205bd..bf646ec3074 100644
--- a/com.unity.render-pipelines.high-definition/CHANGELOG.md
+++ b/com.unity.render-pipelines.high-definition/CHANGELOG.md
@@ -11,6 +11,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - Fixed assert failure when enabling the probe volume system for the first time.
 - Significantly improved performance of APV probe debug.
 - Removed DLSS keyword in settings search when NVIDIA package is not installed. (case 1358409)
+- Fixed light anchor min distance value + properties not working with prefabs (case 1345509).
 
 ### changed
 - Visual Environment ambient mode is now Dynamic by default.