diff --git a/libraries/AP_NavEKF3/AP_NavEKF3_Measurements.cpp b/libraries/AP_NavEKF3/AP_NavEKF3_Measurements.cpp
index 258bd6bcf5..1440a18a49 100644
--- a/libraries/AP_NavEKF3/AP_NavEKF3_Measurements.cpp
+++ b/libraries/AP_NavEKF3/AP_NavEKF3_Measurements.cpp
@@ -685,8 +685,10 @@ void NavEKF3_core::readGpsData()
         gpsDataNew.lat = gpsloc.lat;
         gpsDataNew.lng = gpsloc.lng;
         if ((frontend->_originHgtMode & (1<<2)) == 0) {
+            // the height adjustment to match GPS is being achieved by adjusting the origin height
             gpsDataNew.hgt = (ftype)((double)0.01 * (double)gpsloc.alt - ekfGpsRefHgt);
         } else {
+            // the height adjustment to match GPS is being achieved by adjusting the measurements
             gpsDataNew.hgt = 0.01 * (gpsloc.alt - EKF_origin.alt);
         }
         storedGPS.push(gpsDataNew);
diff --git a/libraries/AP_NavEKF3/AP_NavEKF3_PosVelFusion.cpp b/libraries/AP_NavEKF3/AP_NavEKF3_PosVelFusion.cpp
index ee735a27d4..5fcd94c309 100644
--- a/libraries/AP_NavEKF3/AP_NavEKF3_PosVelFusion.cpp
+++ b/libraries/AP_NavEKF3/AP_NavEKF3_PosVelFusion.cpp
@@ -1273,6 +1273,11 @@ void NavEKF3_core::selectHeightForFusion()
             hgtMea  = MAX(rangeDataDelayed.rng * prevTnb.c.z, rngOnGnd);
             // correct for terrain position relative to datum
             hgtMea -= terrainState;
+            // correct sensor so that local position height adjusts to match GPS
+            if (frontend->_originHgtMode & (1 << 1) && frontend->_originHgtMode & (1 << 2)) {
+                // offset has to be applied to the measurement, not the NED origin
+                hgtMea += (float)(ekfGpsRefHgt - 0.01 * (double)EKF_origin.alt);
+            }
             velPosObs[5] = -hgtMea;
             // enable fusion
             fuseHgtData = true;
@@ -1299,6 +1304,10 @@ void NavEKF3_core::selectHeightForFusion()
     } else if (baroDataToFuse && (activeHgtSource == AP_NavEKF_Source::SourceZ::BARO)) {
         // using Baro data
         hgtMea = baroDataDelayed.hgt - baroHgtOffset;
+        // correct sensor so that local position height adjusts to match GPS
+        if (frontend->_originHgtMode & (1 << 0) && frontend->_originHgtMode & (1 << 2)) {
+            hgtMea += (float)(ekfGpsRefHgt - 0.01 * (double)EKF_origin.alt);
+        }
         // enable fusion
         fuseHgtData = true;
         // set the observation noise