diff --git a/package-lock.json b/package-lock.json
index 505364a0f9..793c7c7c67 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -76,7 +76,7 @@
         "screenfull": "^4.0.1",
         "sdp-transform": "^2.14.1",
         "semver": "^7.3.2",
-        "three": "github:mozillareality/three.js#d96f3cf69c7303db807cabaa2acba09d648e5e96",
+        "three": "github:mozillareality/three.js#c40ae76f114346b33616f72edf43b4eef26d338d",
         "three-ammo": "github:mozillareality/three-ammo",
         "three-mesh-bvh": "^0.3.7",
         "three-pathfinding": "^1.1.0",
@@ -29077,8 +29077,8 @@
     },
     "node_modules/three": {
       "version": "0.141.0",
-      "resolved": "git+ssh://git@github.com/mozillareality/three.js.git#d96f3cf69c7303db807cabaa2acba09d648e5e96",
-      "integrity": "sha512-KMsPzugY1tL/72GghnRGQLm0zMIRRa+JV9JZreYL79NZvFlU2B312JFNAAPlVeuRUKMDBrxKeK3BzlWlzKwxRw==",
+      "resolved": "git+ssh://git@github.com/mozillareality/three.js.git#c40ae76f114346b33616f72edf43b4eef26d338d",
+      "integrity": "sha512-huCehTcjC7TDhvUFSDRr+N5UINGOP7wldKd5NcRGVsK0YcXdrJZyJYmUnaGrAdu//UsXosjLVYYv/O3ACXoxRg==",
       "license": "MIT"
     },
     "node_modules/three-ammo": {
@@ -54229,9 +54229,9 @@
       "dev": true
     },
     "three": {
-      "version": "git+ssh://git@github.com/mozillareality/three.js.git#d96f3cf69c7303db807cabaa2acba09d648e5e96",
-      "integrity": "sha512-KMsPzugY1tL/72GghnRGQLm0zMIRRa+JV9JZreYL79NZvFlU2B312JFNAAPlVeuRUKMDBrxKeK3BzlWlzKwxRw==",
-      "from": "three@github:mozillareality/three.js#d96f3cf69c7303db807cabaa2acba09d648e5e96"
+      "version": "git+ssh://git@github.com/mozillareality/three.js.git#c40ae76f114346b33616f72edf43b4eef26d338d",
+      "integrity": "sha512-huCehTcjC7TDhvUFSDRr+N5UINGOP7wldKd5NcRGVsK0YcXdrJZyJYmUnaGrAdu//UsXosjLVYYv/O3ACXoxRg==",
+      "from": "three@github:mozillareality/three.js#c40ae76f114346b33616f72edf43b4eef26d338d"
     },
     "three-ammo": {
       "version": "git+ssh://git@github.com/mozillareality/three-ammo.git#26d445f13a63690271cdf385157ac91e269a744e",
diff --git a/package.json b/package.json
index 2822f84852..bef21b9d9c 100644
--- a/package.json
+++ b/package.json
@@ -131,7 +131,7 @@
     "screenfull": "^4.0.1",
     "sdp-transform": "^2.14.1",
     "semver": "^7.3.2",
-    "three": "github:mozillareality/three.js#d96f3cf69c7303db807cabaa2acba09d648e5e96",
+    "three": "github:mozillareality/three.js#c40ae76f114346b33616f72edf43b4eef26d338d",
     "three-ammo": "github:mozillareality/three-ammo",
     "three-mesh-bvh": "^0.3.7",
     "three-pathfinding": "^1.1.0",
diff --git a/src/bit-systems/camera-tool.js b/src/bit-systems/camera-tool.js
index afd2c973e1..791ab2b57b 100644
--- a/src/bit-systems/camera-tool.js
+++ b/src/bit-systems/camera-tool.js
@@ -246,11 +246,6 @@ function updateUI(world, camera) {
     sndToggleLblObj.text = captureAudio ? "Sound ON" : "Sound OFF";
     sndToggleLblObj.sync();
   }
-
-  // TODO HACK hidden objects are still not having their matricies updated correctly
-  // Seems like a regression of #5421
-  // updateMatrices should be checking forceWorldUpdate instead of parent.childrenNeedMatrixWorldUpdate
-  snapMenuObj.childrenNeedMatrixWorldUpdate = true;
 }
 
 let snapPixels;
diff --git a/src/bit-systems/media-loading.js b/src/bit-systems/media-loading.js
index 13505b225d..d98d959daa 100644
--- a/src/bit-systems/media-loading.js
+++ b/src/bit-systems/media-loading.js
@@ -103,9 +103,6 @@ function add(world, child, parent) {
   const parentObj = world.eid2obj.get(parent);
   const childObj = world.eid2obj.get(child);
   parentObj.add(childObj);
-
-  // TODO: Fix this in THREE.Object3D.add
-  childObj.matrixWorldNeedsUpdate = true;
 }
 
 function* loadMedia(world, eid) {
diff --git a/src/bit-systems/video-menu-system.ts b/src/bit-systems/video-menu-system.ts
index 32cfefc139..48e2a13c06 100644
--- a/src/bit-systems/video-menu-system.ts
+++ b/src/bit-systems/video-menu-system.ts
@@ -73,10 +73,6 @@ export function videoMenuSystem(world: HubsWorld, userinput: any) {
     const menuObj = world.eid2obj.get(menu)!;
     const videoObj = world.eid2obj.get(eid)!;
     videoObj.add(menuObj);
-    // TODO: Fix add in threejs
-    // TODO remove should also reset matrixWorld to cachedMatrixWorld
-    menuObj.matrixWorldNeedsUpdate = true;
-    menuObj.childrenNeedMatrixWorldUpdate = true;
     setCursorRaycastable(world, menu, true);
   });
 
diff --git a/src/bit-systems/video-system.ts b/src/bit-systems/video-system.ts
index 07f67bc1e2..019edb1565 100644
--- a/src/bit-systems/video-system.ts
+++ b/src/bit-systems/video-system.ts
@@ -74,7 +74,6 @@ function swapAudioType<T extends AudioObject3D>(
   APP.audios.set(eid, newAudio);
 
   audio.parent!.add(newAudio);
-  newAudio.matrixWorldNeedsUpdate = true; // TODO: Fix in threejs
   audio.removeFromParent();
 
   swapObject3DComponent(world, eid, newAudio);
@@ -116,7 +115,6 @@ export function videoSystem(world: HubsWorld, audioSystem: AudioSystem) {
     }
     const audio = world.eid2obj.get(makeAudioSourceEntity(world, video, audioSystem))!;
     videoObj.add(audio);
-    audio.matrixWorldNeedsUpdate = true; // TODO: Fix in threejs
     // Note in media-video we call updateMatrixWorld here to force PositionalAudio's updateMatrixWorld to run even
     // if it has an invisible parent. We don't want to have invisible parents now.
   });