diff --git a/OpenSim/Framework/AvatarAppearance.cs b/OpenSim/Framework/AvatarAppearance.cs
index f2ceb20572..f549461721 100644
--- a/OpenSim/Framework/AvatarAppearance.cs
+++ b/OpenSim/Framework/AvatarAppearance.cs
@@ -227,6 +227,7 @@ namespace OpenSim.Framework
         }
 
         protected float m_avatarHeight = 0;
+        protected float m_hipOffset = 0;
 
         public virtual float AvatarHeight
         {
@@ -234,6 +235,11 @@ namespace OpenSim.Framework
             set { m_avatarHeight = value; }
         }
 
+        public virtual float HipOffset
+        {
+            get { return m_hipOffset; }
+        }
+
         public AvatarAppearance()
         {
             m_wearables = new AvatarWearable[MAX_WEARABLES];
@@ -275,7 +281,12 @@ namespace OpenSim.Framework
                            + 0.08f * (float)m_visualparams[77] / 255.0f    // Shoe heel height
                            + 0.07f * (float)m_visualparams[78] / 255.0f    // Shoe platform height
                            + 0.076f * (float)m_visualparams[148] / 255.0f;    // Neck length
-
+            m_hipOffset    = (0.615385f // Half of avatar
+                           + 0.08f * (float)m_visualparams[77] / 255.0f    // Shoe heel height
+                           + 0.07f * (float)m_visualparams[78] / 255.0f    // Shoe platform height
+                           + 0.3836f * (float)m_visualparams[125] / 255.0f    // Leg length
+                           - m_avatarHeight / 2) * 0.3f - 0.04f;
+            System.Console.WriteLine("Height {0} Hip offset {1}", m_avatarHeight, m_hipOffset);
         }
 
         public virtual void SetWearable(int wearableId, AvatarWearable wearable)
diff --git a/OpenSim/Region/Environment/Scenes/ScenePresence.cs b/OpenSim/Region/Environment/Scenes/ScenePresence.cs
index af17fac17e..c91027ce6e 100644
--- a/OpenSim/Region/Environment/Scenes/ScenePresence.cs
+++ b/OpenSim/Region/Environment/Scenes/ScenePresence.cs
@@ -759,7 +759,7 @@ namespace OpenSim.Region.Environment.Scenes
             }
 
             float posZLimit = (float)m_scene.GetLandHeight((int)pos.X, (int)pos.Y);
-            float newPosZ = posZLimit + localAVHeight;
+            float newPosZ = posZLimit + localAVHeight / 2;
             if (posZLimit >= (pos.Z - (localAVHeight / 2)) && !(Single.IsInfinity(newPosZ) || Single.IsNaN(newPosZ)))
             {
                 pos.Z = newPosZ;
@@ -1752,6 +1752,7 @@ namespace OpenSim.Region.Environment.Scenes
             Vector3 pos = m_pos;
             Vector3 vel = Velocity;
             Quaternion rot = m_bodyRot;
+            pos.Z -= m_appearance.HipOffset;
             remoteClient.SendAvatarTerseUpdate(m_regionHandle, (ushort)(m_scene.TimeDilation * (float)ushort.MaxValue), LocalId, new Vector3(pos.X, pos.Y, pos.Z),
                                                new Vector3(vel.X, vel.Y, vel.Z), rot);
 
@@ -1835,6 +1836,9 @@ namespace OpenSim.Region.Environment.Scenes
             // Note: because Quaternion is a struct, it can't be null
             Quaternion rot = m_bodyRot;
 
+            Vector3 pos = m_pos;
+            pos.Z -= m_appearance.HipOffset;
+
             remoteAvatar.m_controllingClient.SendAvatarData(m_regionInfo.RegionHandle, m_firstname, m_lastname, m_grouptitle, m_uuid,
                                                             LocalId, m_pos, m_appearance.Texture.ToBytes(),
                                                             m_parentID, rot);
@@ -1900,6 +1904,9 @@ namespace OpenSim.Region.Environment.Scenes
             // Note: because Quaternion is a struct, it can't be null
             Quaternion rot = m_bodyRot;
 
+            Vector3 pos = m_pos;
+            pos.Z -= m_appearance.HipOffset;
+
             m_controllingClient.SendAvatarData(m_regionInfo.RegionHandle, m_firstname, m_lastname, m_grouptitle, m_uuid, LocalId,
                                                m_pos, m_appearance.Texture.ToBytes(), m_parentID, rot);