diff --git a/com.unity.shadergraph/CHANGELOG.md b/com.unity.shadergraph/CHANGELOG.md
index 8b3761b7efb..6d4c83ec309 100644
--- a/com.unity.shadergraph/CHANGELOG.md
+++ b/com.unity.shadergraph/CHANGELOG.md
@@ -4,6 +4,13 @@ All notable changes to this package are documented in this file.
 The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/)
 and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.html).
 
+## [Unreleased] - 2021-09-13
+
+### Added
+
+### Fixed
+- Fixed an incorrect direction transform from view to world space [1365187]
+
 ## [10.7.0] - 2021-07-02
 
 ### Added
diff --git a/com.unity.shadergraph/Editor/Data/Nodes/Math/Vector/TransformNode.cs b/com.unity.shadergraph/Editor/Data/Nodes/Math/Vector/TransformNode.cs
index 96f3a28e501..9f6ef237446 100644
--- a/com.unity.shadergraph/Editor/Data/Nodes/Math/Vector/TransformNode.cs
+++ b/com.unity.shadergraph/Editor/Data/Nodes/Math/Vector/TransformNode.cs
@@ -187,7 +187,9 @@ public void GenerateNodeCode(ShaderStringBuilder sb, GenerationMode generationMo
             {
                 if (conversion.to == CoordinateSpace.World)
                 {
-                    transformString = string.Format("mul(UNITY_MATRIX_I_V, $precision4({0}, 1)).xyz", inputValue);
+                    transformString = string.Format(conversionType == ConversionType.Direction ?
+                        "mul(UNITY_MATRIX_I_V, $precision4({0}, 0)).xyz" :
+                        "mul(UNITY_MATRIX_I_V, $precision4({0}, 1)).xyz", inputValue);
                 }
                 else if (conversion.to == CoordinateSpace.Object)
                 {