diff --git a/source/blender/editors/interface/interface_handlers.c b/source/blender/editors/interface/interface_handlers.c
index 734cd02a056..6e3c3c3674a 100644
--- a/source/blender/editors/interface/interface_handlers.c
+++ b/source/blender/editors/interface/interface_handlers.c
@@ -7741,7 +7741,8 @@ static void button_activate_state(bContext *C, uiBut *but, uiHandleButtonState s
 		if (ui_but_is_cursor_warp(but)) {
 
 #ifdef USE_CONT_MOUSE_CORRECT
-			if (data->ungrab_mval[0] != FLT_MAX) {
+			/* stereo3d has issues with changing cursor location so rather avoid */
+			if (data->ungrab_mval[0] != FLT_MAX && !WM_stereo3d_enabled(data->window, false)) {
 				int mouse_ungrab_xy[2];
 				ui_block_to_window_fl(data->region, but->block, &data->ungrab_mval[0], &data->ungrab_mval[1]);
 				mouse_ungrab_xy[0] = data->ungrab_mval[0];
diff --git a/source/blender/windowmanager/intern/wm_event_system.c b/source/blender/windowmanager/intern/wm_event_system.c
index d2b0acd836b..eba132062c9 100644
--- a/source/blender/windowmanager/intern/wm_event_system.c
+++ b/source/blender/windowmanager/intern/wm_event_system.c
@@ -3179,6 +3179,8 @@ void wm_event_add_ghostevent(wmWindowManager *wm, wmWindow *win, int type, int U
 			GHOST_TEventCursorData *cd = customdata;
 
 			copy_v2_v2_int(&event.x, &cd->x);
+			wm_stereo3d_mouse_offset_apply(win, &event.x);
+
 			event.type = MOUSEMOVE;
 			wm_event_add_mousemove(win, &event);
 			copy_v2_v2_int(&evt->x, &event.x);
diff --git a/source/blender/windowmanager/intern/wm_stereo.c b/source/blender/windowmanager/intern/wm_stereo.c
index 46cee907991..66ebf18c9e1 100644
--- a/source/blender/windowmanager/intern/wm_stereo.c
+++ b/source/blender/windowmanager/intern/wm_stereo.c
@@ -345,6 +345,32 @@ bool WM_stereo3d_enabled(wmWindow *win, bool skip_stereo3d_check)
 	return true;
 }
 
+/**
+ * If needed, this adjusts \a r_mouse_xy so that drawn cursor and handled mouse position are matching visually.
+*/
+void wm_stereo3d_mouse_offset_apply(wmWindow *win, int *r_mouse_xy)
+{
+	if (!WM_stereo3d_enabled(win, false))
+		return;
+
+	if (win->stereo3d_format->display_mode == S3D_DISPLAY_SIDEBYSIDE) {
+		const int half_x = win->sizex / 2;
+		/* right half of the screen */
+		if (r_mouse_xy[0] > half_x) {
+			r_mouse_xy[0] -= half_x;
+		}
+		r_mouse_xy[0] *= 2;
+	}
+	else if (win->stereo3d_format->display_mode == S3D_DISPLAY_TOPBOTTOM) {
+		const int half_y = win->sizey / 2;
+		/* upper half of the screen */
+		if (r_mouse_xy[1] > half_y) {
+			r_mouse_xy[1] -= half_y;
+		}
+		r_mouse_xy[1] *= 2;
+	}
+}
+
 /************************** Stereo 3D operator **********************************/
 typedef struct Stereo3dData {
 	Stereo3dFormat stereo3d_format;
diff --git a/source/blender/windowmanager/wm.h b/source/blender/windowmanager/wm.h
index 2f06ddab1e8..e8485359490 100644
--- a/source/blender/windowmanager/wm.h
+++ b/source/blender/windowmanager/wm.h
@@ -78,6 +78,7 @@ void wm_autosave_location(char *filepath);
 
 /* wm_stereo.c */
 void wm_method_draw_stereo3d(const bContext *C, wmWindow *win);
+void wm_stereo3d_mouse_offset_apply(wmWindow *win, int *r_mouse_xy);
 int wm_stereo3d_set_exec(bContext *C, wmOperator *op);
 int wm_stereo3d_set_invoke(bContext *C, wmOperator *op, const wmEvent *event);
 void wm_stereo3d_set_draw(bContext *C, wmOperator *op);