diff --git a/servers/rendering/renderer_rd/forward_clustered/render_forward_clustered.cpp b/servers/rendering/renderer_rd/forward_clustered/render_forward_clustered.cpp
index 1b8d65872c5d..1c6eac169601 100644
--- a/servers/rendering/renderer_rd/forward_clustered/render_forward_clustered.cpp
+++ b/servers/rendering/renderer_rd/forward_clustered/render_forward_clustered.cpp
@@ -967,7 +967,7 @@ void RenderForwardClustered::_fill_render_list(RenderListType p_render_list, con
 		float fade_alpha = 1.0;
 
 		if (inst->fade_near || inst->fade_far) {
-			float fade_dist = inst->transform.origin.distance_to(p_render_data->scene_data->cam_transform.origin);
+			float fade_dist = inst->transformed_aabb.get_center().distance_to(p_render_data->scene_data->cam_transform.origin);
 			// Use `smoothstep()` to make opacity changes more gradual and less noticeable to the player.
 			if (inst->fade_far && fade_dist > inst->fade_far_begin) {
 				fade_alpha = Math::smoothstep(0.0f, 1.0f, 1.0f - (fade_dist - inst->fade_far_begin) / (inst->fade_far_end - inst->fade_far_begin));