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 f038fc041b2..930b798fb9e 100644
--- a/com.unity.shadergraph/Editor/Data/Nodes/Math/Vector/TransformNode.cs
+++ b/com.unity.shadergraph/Editor/Data/Nodes/Math/Vector/TransformNode.cs
@@ -1,4 +1,6 @@
 using System;
+using System.Linq;
+using System.Collections.Generic;
 using UnityEditor.Graphing;
 using UnityEditor.ShaderGraph.Drawing.Controls;
 using UnityEditor.ShaderGraph.Internal;
@@ -294,12 +296,62 @@ public NeededCoordinateSpace RequiresNormal(ShaderStageCapability stageCapabilit
             return conversion.from.ToNeededCoordinateSpace();
         }
 
-        public NeededTransform[] RequiresTransform(ShaderStageCapability stageCapability)
+        static readonly bool[,] k_ViaWorldFunction = new bool[5, 5]   // [from, to]
+        {
+            {   // from CoordinateSpace.Object
+                false, // to CoordinateSpace.Object
+                true,  // to CoordinateSpace.View
+                false, // to CoordinateSpace.World
+                true,  // to CoordinateSpace.Tangent
+                true,  // to CoordinateSpace.AbsoluteWorld
+            },
+            {   // from CoordinateSpace.View
+                true,  // to CoordinateSpace.Object
+                false, // to CoordinateSpace.View
+                false, // to CoordinateSpace.World
+                true,  // to CoordinateSpace.Tangent
+                true,  // to CoordinateSpace.AbsoluteWorld
+            },
+            {   // from CoordinateSpace.World
+                false, // to CoordinateSpace.Object
+                false, // to CoordinateSpace.View
+                false, // to CoordinateSpace.World
+                false, // to CoordinateSpace.Tangent
+                false, // to CoordinateSpace.AbsoluteWorld
+            },
+            {   // from CoordinateSpace.Tangent
+                true,  // to CoordinateSpace.Object
+                true,  // to CoordinateSpace.View
+                false, // to CoordinateSpace.World
+                false, // to CoordinateSpace.Tangent
+                true,  // to CoordinateSpace.AbsoluteWorld
+            },
+            {   // from CoordinateSpace.AbsoluteWorld
+                true,  // to CoordinateSpace.Object
+                true,  // to CoordinateSpace.View
+                false, // to CoordinateSpace.World
+                true,  // to CoordinateSpace.Tangent
+                false, // to CoordinateSpace.AbsoluteWorld
+            }
+        };
+
+        internal static IEnumerable<NeededTransform> ComputeTransformRequirement(CoordinateSpaceConversion xform)
         {
-            return new[]
+            var viaWorld = k_ViaWorldFunction[(int)xform.from, (int)xform.to];
+            if (viaWorld)
+            {
+                yield return new NeededTransform(xform.from.ToNeededCoordinateSpace(), NeededCoordinateSpace.World);
+                yield return new NeededTransform(NeededCoordinateSpace.World, xform.to.ToNeededCoordinateSpace());
+            }
+            else
             {
-                new NeededTransform(conversion.from.ToNeededCoordinateSpace(), conversion.to.ToNeededCoordinateSpace())
-            };
+                yield return new NeededTransform(xform.from.ToNeededCoordinateSpace(), xform.to.ToNeededCoordinateSpace());
+            }
+        }
+
+        public NeededTransform[] RequiresTransform(ShaderStageCapability stageCapability)
+        {
+            return ComputeTransformRequirement(conversion).ToArray();
         }
     }
 }
diff --git a/com.unity.visualeffectgraph/CHANGELOG.md b/com.unity.visualeffectgraph/CHANGELOG.md
index b37e157ec05..a8364f6fec2 100644
--- a/com.unity.visualeffectgraph/CHANGELOG.md
+++ b/com.unity.visualeffectgraph/CHANGELOG.md
@@ -8,6 +8,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 ### Fixed
 - Automatically offset contexts when a new node is inserted to avoid overlapping
 - Fixed null reference exception when opening another VFX and a debug mode is enabled [Case 1347420](https://issuetracker.unity3d.com/product/unity/issues/guid/1347420/)
+- Incorrect behavior of Tangent Space in ShaderGraph [Case 1363279](https://issuetracker.unity3d.com/product/unity/issues/guid/1363279/)
 
 ## [12.1.2] - 2021-10-22
 ### Fixed