diff --git a/crest/Assets/Crest/Crest/Shaders/OceanInputs/AnimWavesAddFromTex.shader b/crest/Assets/Crest/Crest/Shaders/OceanInputs/AnimWavesAddFromTex.shader
index 493690bea..8197f42a3 100644
--- a/crest/Assets/Crest/Crest/Shaders/OceanInputs/AnimWavesAddFromTex.shader
+++ b/crest/Assets/Crest/Crest/Shaders/OceanInputs/AnimWavesAddFromTex.shader
@@ -9,15 +9,14 @@ Shader "Crest/Inputs/Animated Waves/Add From Texture"
 		_MainTex("Texture", 2D) = "white" {}
 		_Strength( "Strength", float ) = 1
 		[Toggle] _HeightsOnly("Heights Only", Float) = 1
+		[Toggle] _GenerateDisplacementsFromHeights("Generate Displacements From Heights", Float) = 0
+		_GenerateDisplacementStrength("Generate Displacement Strength", Range(0, 10)) = 1
 		[Toggle] _SSSFromAlpha("Sub Surface Scattering (SSS) from Alpha", Float) = 0
 		_SSSStrength("SSS Strength", Float) = 0.5
 	}
 
 	SubShader
 	{
-		// base simulation runs on the Geometry queue, before this shader.
-		// this shader adds interaction forces on top of the simulation result.
-		Tags { "Queue" = "Transparent" }
 		Blend One One
 
 		Pass
@@ -28,15 +27,16 @@ Shader "Crest/Inputs/Animated Waves/Add From Texture"
 
 			#pragma shader_feature _HEIGHTSONLY_ON
 			#pragma shader_feature _SSSFROMALPHA_ON
+			#pragma shader_feature _GENERATEDISPLACEMENTSFROMHEIGHTS_ON
 
 			#include "UnityCG.cginc"
 
 			sampler2D _MainTex;
 			float4 _MainTex_ST;
-
+			float4 _MainTex_TexelSize;
 			float _Strength;
 			float _SSSStrength;
-
+			float _GenerateDisplacementStrength;
 			float _Weight;
 
 			struct Attributes
@@ -48,13 +48,15 @@ Shader "Crest/Inputs/Animated Waves/Add From Texture"
 			struct Varyings
 			{
 				float4 positionCS : SV_POSITION;
-				float2 uv : TEXCOORD0;
+				float3 positionWS : TEXCOORD0;
+				float2 uv : TEXCOORD1;
 			};
 
 			Varyings Vert(Attributes input)
 			{
 				Varyings o;
 				o.positionCS = UnityObjectToClipPos(input.positionOS);
+				o.positionWS = mul(unity_ObjectToWorld, float4(input.positionOS, 1.0)).xyz;
 				o.uv = TRANSFORM_TEX(input.uv, _MainTex);
 				return o;
 			}
@@ -67,16 +69,30 @@ Shader "Crest/Inputs/Animated Waves/Add From Texture"
 				half4 texSample = tex2D(_MainTex, input.uv);
 
 #if _HEIGHTSONLY_ON
-				displacement.y = texSample.x * _Strength;
+				// Texture represents heights, not 3D displacements
+				displacement.y = texSample.x;
+
+#if _GENERATEDISPLACEMENTSFROMHEIGHTS_ON
+				// Generate horizontal displacement from derivatives of height
+
+				// These derivatives aren't strictly correct - they assume there is a roughly 1:1 correspondance between
+				// texture sampling density (via _MainTex_TexelSize.x) and output sampling density (via ddx(input.positionWS.x)).
+				// I couldn't find a nice/cheap way to compute texel density (i.e. maintex texel size in world), so i'll leave
+				// it to a scale factor.
+				float height_x = tex2D(_MainTex, input.uv + float2(_MainTex_TexelSize.x, 0.0));
+				float height_z = tex2D(_MainTex, input.uv + float2(0.0, _MainTex_TexelSize.y));
+				displacement.x = _GenerateDisplacementStrength * (height_x - displacement.y) / ddx(input.positionWS.x);
+				displacement.z = _GenerateDisplacementStrength * (height_z - displacement.y) / ddy(input.positionWS.z);
+#endif
 #else
-				displacement.xyz = texSample.xyz * _Strength;
+				displacement.xyz = texSample.xyz;
 #endif
 
 #if _SSSFROMALPHA_ON
 				sss = texSample.x * _SSSStrength;
 #endif
 
-				return _Weight * half4(displacement, sss);
+				return _Weight * half4(_Strength * displacement, sss);
 			}
 
 			ENDCG