diff --git a/scene/3d/xr_nodes.cpp b/scene/3d/xr_nodes.cpp
index 4ab6e4cab925..43def378bd5d 100644
--- a/scene/3d/xr_nodes.cpp
+++ b/scene/3d/xr_nodes.cpp
@@ -714,6 +714,12 @@ void XROrigin3D::_set_current(bool p_enabled, bool p_update_others) {
 		ERR_FAIL_NULL(xr_server);
 
 		xr_server->set_world_origin(get_global_transform());
+
+		if (is_physics_interpolated()) {
+			set_process_internal(true);
+		}
+	} else if (is_physics_interpolated()) {
+		set_process_internal(false);
 	}
 
 	// Check if we need to update our other origin nodes accordingly
@@ -784,10 +790,16 @@ void XROrigin3D::_notification(int p_what) {
 
 		case NOTIFICATION_LOCAL_TRANSFORM_CHANGED:
 		case NOTIFICATION_TRANSFORM_CHANGED: {
-			if (current && !Engine::get_singleton()->is_editor_hint()) {
+			if (current && !Engine::get_singleton()->is_editor_hint() && !is_physics_interpolated_and_enabled()) {
 				xr_server->set_world_origin(get_global_transform());
 			}
 		} break;
+
+		case NOTIFICATION_INTERNAL_PROCESS: {
+			if (current && !Engine::get_singleton()->is_editor_hint() && is_physics_interpolated_and_enabled()) {
+				xr_server->set_world_origin(get_global_transform_interpolated());
+			}
+		} break;
 	}
 
 	if (current) {
@@ -800,3 +812,9 @@ void XROrigin3D::_notification(int p_what) {
 		}
 	}
 }
+
+void XROrigin3D::_physics_interpolated_changed() {
+	if (current && !Engine::get_singleton()->is_editor_hint()) {
+		set_process_internal(is_physics_interpolated());
+	}
+}
diff --git a/scene/3d/xr_nodes.h b/scene/3d/xr_nodes.h
index 805456012f3c..cbf8ad5dc0d7 100644
--- a/scene/3d/xr_nodes.h
+++ b/scene/3d/xr_nodes.h
@@ -198,6 +198,7 @@ class XROrigin3D : public Node3D {
 protected:
 	void _notification(int p_what);
 	static void _bind_methods();
+	virtual void _physics_interpolated_changed() override;
 
 public:
 	PackedStringArray get_configuration_warnings() const override;