diff --git a/CHANGES.md b/CHANGES.md
index f86a07c1b44..7fd8b976dad 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -1,5 +1,13 @@
 # Change Log
 
+## 1.136 - 2025-12-01
+
+### @cesium/engine
+
+#### Fixes :wrench:
+
+- Fixed depth testing bug with billboards and labels clipping through models [#13012](https://github.com/CesiumGS/cesium/issues/13012)
+
 ## 1.135 - 2025-11-03
 
 ### @cesium/engine
diff --git a/packages/engine/Source/Scene/BillboardCollection.js b/packages/engine/Source/Scene/BillboardCollection.js
index 23d28da8bf9..38b13c8ebeb 100644
--- a/packages/engine/Source/Scene/BillboardCollection.js
+++ b/packages/engine/Source/Scene/BillboardCollection.js
@@ -34,6 +34,7 @@ import SDFSettings from "./SDFSettings.js";
 import TextureAtlas from "../Renderer/TextureAtlas.js";
 import VerticalOrigin from "./VerticalOrigin.js";
 import Ellipsoid from "../Core/Ellipsoid.js";
+import WebGLConstants from "../Core/WebGLConstants.js";
 
 const SHOW_INDEX = Billboard.SHOW_INDEX;
 const POSITION_INDEX = Billboard.POSITION_INDEX;
@@ -2039,7 +2040,8 @@ BillboardCollection.prototype.update = function (frameState) {
     ) {
       this._rsOpaque = RenderState.fromCache({
         depthTest: {
-          enabled: false,
+          enabled: true,
+          func: WebGLConstants.LESS,
         },
         depthMask: true,
       });
@@ -2059,7 +2061,10 @@ BillboardCollection.prototype.update = function (frameState) {
     ) {
       this._rsTranslucent = RenderState.fromCache({
         depthTest: {
-          enabled: false,
+          enabled: true,
+          func: useTranslucentDepthMask
+            ? WebGLConstants.LEQUAL
+            : WebGLConstants.LESS,
         },
         depthMask: useTranslucentDepthMask,
         blending: BlendingState.ALPHA_BLEND,
diff --git a/packages/engine/Source/Shaders/BillboardCollectionFS.glsl b/packages/engine/Source/Shaders/BillboardCollectionFS.glsl
index 74d21300a95..c78e99bf4b7 100644
--- a/packages/engine/Source/Shaders/BillboardCollectionFS.glsl
+++ b/packages/engine/Source/Shaders/BillboardCollectionFS.glsl
@@ -131,7 +131,9 @@ void doThreePointDepthTest(float eyeDepth, bool applyTranslate) {
 }
 #endif
 
-void doDepthTest() {
+// Extra manual depth testing is done to allow more control over how a billboard is occluded 
+// by the globe when near and far from the camera.
+void doDepthTest(float globeDepth) {
     float temp = v_compressed.y;
     temp = temp * SHIFT_RIGHT1;
     float temp2 = (temp - floor(temp)) * SHIFT_LEFT1;
@@ -156,14 +158,10 @@ void doDepthTest() {
     }
 #endif
 
-    // Automatic depth testing of billboards is disabled (@see BillboardCollection#update).
-    // Instead, we do one of two types of manual depth tests (potentially in addition to the test above), depending on the camera's distance to the billboard fragment.
     // If we're far away, we just compare against a flat, camera-facing depth-plane at the ellipsoid's center.
     // If we're close, we compare against the globe depth texture (which includes depth from the 3D tile pass).
-    vec2 fragSt = gl_FragCoord.xy / czm_viewport.zw;
-    float globeDepth = getGlobeDepthAtCoords(fragSt);
-    if (globeDepth == 0.0) return; // Not on globe
-    
+
+    if (globeDepth == 0.0) return; // Not on globe    
     float distanceToEllipsoidCenter = -length(czm_viewerPositionWC); // depth is negative by convention
     float testDistance = (eyeDepth > -u_coarseDepthTestDistance) ? globeDepth : distanceToEllipsoidCenter;
     if (eyeDepth < testDistance) {
@@ -175,7 +173,10 @@ void main()
 {
     if (v_splitDirection < 0.0 && gl_FragCoord.x > czm_splitPosition) discard;
     if (v_splitDirection > 0.0 && gl_FragCoord.x < czm_splitPosition) discard;
-    doDepthTest();
+    
+    vec2 fragSt = gl_FragCoord.xy / czm_viewport.zw;
+    float globeDepth = getGlobeDepthAtCoords(fragSt);
+    doDepthTest(globeDepth);
     
     vec4 color = texture(u_atlas, v_textureCoordinates);
 
@@ -243,6 +244,18 @@ void main()
     out_FragColor = color;
 
 #ifdef LOG_DEPTH
-    czm_writeLogDepth();
+    // If we've made it here, we passed our manual depth test, above. But the automatic depth test will
+    // still run, and some fragments of the billboard may clip against the globe. To prevent that,
+    // ensure the depth value we write out is in front of the globe depth.
+    float depthArg = v_depthFromNearPlusOne;
+
+    if (globeDepth != 0.0) { // On the globe
+        float globeDepthFromNearPlusOne = (-globeDepth - czm_currentFrustum.x) + 1.0;
+        float nudge = max(globeDepthFromNearPlusOne * 5e-6, czm_epsilon7);
+        float globeOnTop = max(1.0, globeDepthFromNearPlusOne - nudge);
+        depthArg = min(depthArg, globeOnTop);
+    }
+
+    czm_writeLogDepth(depthArg);
 #endif
 }
\ No newline at end of file