diff --git a/com.unity.shadergraph/CHANGELOG.md b/com.unity.shadergraph/CHANGELOG.md
index 464c34adf10..5ceccf916f8 100644
--- a/com.unity.shadergraph/CHANGELOG.md
+++ b/com.unity.shadergraph/CHANGELOG.md
@@ -12,6 +12,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - Fixed an issue where SamplerState properties could not be renamed after creation [1336126]
 - Fixed the incorrect value written to the VT feedback buffer when VT is not used.
 - Fixed compilation problems on preview shader when using hybrid renderer v2 and property desc override Hybrid Per Instance
+- Fixed a serialization bug wrt PVT property flags when using subgraphs. This fixes SRP batcher compatibility.
 
 ## [10.6.0] - 2021-04-29
 
diff --git a/com.unity.shadergraph/Editor/Data/Graphs/VirtualTextureShaderProperty.cs b/com.unity.shadergraph/Editor/Data/Graphs/VirtualTextureShaderProperty.cs
index 2787f047a48..f827117f96b 100644
--- a/com.unity.shadergraph/Editor/Data/Graphs/VirtualTextureShaderProperty.cs
+++ b/com.unity.shadergraph/Editor/Data/Graphs/VirtualTextureShaderProperty.cs
@@ -74,9 +74,8 @@ internal override void ForeachHLSLProperty(Action<HLSLProperty> action)
             int numLayers = value.layers.Count;
             if (numLayers > 0)
             {
-                HLSLDeclaration decl = HLSLDeclaration.UnityPerMaterial;
-                if (value.procedural)
-                    decl = GetDefaultHLSLDeclaration();
+                // PVT should always be Global to be compatible with SRP batcher
+                HLSLDeclaration decl = (value.procedural) ? HLSLDeclaration.Global : HLSLDeclaration.UnityPerMaterial;
 
                 action(new HLSLProperty(HLSLType._CUSTOM, referenceName + "_CBDecl", decl, concretePrecision)
                 {
@@ -206,8 +205,11 @@ internal void AddTextureInfo(List<PropertyCollector.TextureInfo> infos)
 
         public override void OnAfterDeserialize(string json)
         {
-            // VT shader properties must always be exposed
-            generatePropertyBlock = true;
+            if (!value.procedural)
+            {
+                // non procedural VT shader properties must always be exposed
+                generatePropertyBlock = true;
+            }
         }
     }
 }