diff --git a/project/demo/NavigationDemo.tscn b/project/demo/NavigationDemo.tscn
index a96dd62c3..694a1dc5e 100644
--- a/project/demo/NavigationDemo.tscn
+++ b/project/demo/NavigationDemo.tscn
@@ -38,22 +38,29 @@ _shader_parameters = {
 "auto_height_reduction": 0.1,
 "auto_overlay_texture": 1,
 "auto_slope": 1.0,
+"bias_distance": 512.0,
 "blend_sharpness": 0.87,
+"depth_blur": 0.0,
 "dual_scale_far": 170.0,
 "dual_scale_near": 100.0,
 "dual_scale_reduction": 0.3,
 "dual_scale_texture": 0,
+"enable_macro_variation": true,
+"enable_projection": true,
 "height_blending": true,
 "macro_variation1": Color(0.878431, 0.862745, 0.901961, 1),
 "macro_variation2": Color(0.898039, 0.898039, 0.803922, 1),
+"macro_variation_slope": 0.333,
+"mipmap_bias": 1.0,
 "noise1_angle": 0.1,
 "noise1_offset": Vector2(0.5, 0.5),
 "noise1_scale": 0.04,
 "noise2_scale": 0.076,
 "noise3_scale": 0.225,
 "noise_texture": SubResource("NoiseTexture2D_bov7h"),
-"tri_scale_reduction": 0.3,
-"vertex_normals_distance": 128.0
+"projection_angular_division": 1.436,
+"projection_threshold": 0.8,
+"tri_scale_reduction": 0.3
 }
 world_background = 0
 auto_shader = true
diff --git a/project/demo/components/DemoBase.tscn b/project/demo/components/DemoBase.tscn
index 3d86de0a2..4fa521b2b 100644
--- a/project/demo/components/DemoBase.tscn
+++ b/project/demo/components/DemoBase.tscn
@@ -7,11 +7,11 @@
 [ext_resource type="PackedScene" uid="uid://d2jihfohphuue" path="res://demo/components/UI.tscn" id="4_gk532"]
 [ext_resource type="Terrain3DAssets" uid="uid://dal3jhw6241qg" path="res://demo/data/assets.tres" id="7_mnexy"]
 
-[sub_resource type="Gradient" id="Gradient_vs32v"]
-offsets = PackedFloat32Array(0.3, 1)
+[sub_resource type="Gradient" id="Gradient_f1plm"]
+offsets = PackedFloat32Array(0.2, 1)
 colors = PackedColorArray(1, 1, 1, 1, 0, 0, 0, 1)
 
-[sub_resource type="FastNoiseLite" id="FastNoiseLite_7glc1"]
+[sub_resource type="FastNoiseLite" id="FastNoiseLite_bfcw0"]
 noise_type = 2
 frequency = 0.03
 cellular_jitter = 3.0
@@ -23,26 +23,43 @@ domain_warp_fractal_type = 2
 domain_warp_fractal_lacunarity = 1.5
 domain_warp_fractal_gain = 1.0
 
-[sub_resource type="NoiseTexture2D" id="NoiseTexture2D_pvx8q"]
+[sub_resource type="NoiseTexture2D" id="NoiseTexture2D_quxx0"]
 seamless = true
-color_ramp = SubResource("Gradient_vs32v")
-noise = SubResource("FastNoiseLite_7glc1")
+color_ramp = SubResource("Gradient_f1plm")
+noise = SubResource("FastNoiseLite_bfcw0")
 
-[sub_resource type="Terrain3DMaterial" id="Terrain3DMaterial_q2wt2"]
+[sub_resource type="Terrain3DMaterial" id="Terrain3DMaterial_klrp5"]
 _shader_parameters = {
-"_mouse_layer": 2147483648,
+"auto_base_texture": 0,
+"auto_height_reduction": 0.1,
+"auto_overlay_texture": 1,
+"auto_slope": 1.0,
+"bias_distance": 512.0,
 "blend_sharpness": 0.87,
+"depth_blur": 0.0,
+"dual_scale_far": 170.0,
+"dual_scale_near": 100.0,
+"dual_scale_reduction": 0.3,
+"dual_scale_texture": 0,
+"enable_macro_variation": true,
+"enable_projection": true,
 "height_blending": true,
 "macro_variation1": Color(1, 1, 1, 1),
 "macro_variation2": Color(1, 1, 1, 1),
+"macro_variation_slope": 0.333,
+"mipmap_bias": 1.0,
 "noise1_angle": 0.0,
 "noise1_offset": Vector2(0.5, 0.5),
-"noise1_scale": 0.05,
-"noise2_scale": 0.03,
-"noise3_scale": 0.01,
-"noise_texture": SubResource("NoiseTexture2D_pvx8q"),
-"vertex_normals_distance": 128.0
+"noise1_scale": 0.04,
+"noise2_scale": 0.076,
+"noise3_scale": 0.225,
+"noise_texture": SubResource("NoiseTexture2D_quxx0"),
+"projection_angular_division": 1.436,
+"projection_threshold": 0.8,
+"tri_scale_reduction": 0.3
 }
+auto_shader = true
+dual_scaling = true
 
 [node name="Demo" type="Node"]
 script = ExtResource("1_k7qca")
@@ -59,7 +76,7 @@ transform = Transform3D(0.134125, 0, -0.990965, 0, 1, 0, 0.990965, 0, 0.134125,
 
 [node name="Terrain3D" type="Terrain3D" parent="."]
 data_directory = "res://demo/data"
-material = SubResource("Terrain3DMaterial_q2wt2")
+material = SubResource("Terrain3DMaterial_klrp5")
 assets = ExtResource("7_mnexy")
 collision_mask = 3
 top_level = true
diff --git a/project/demo/src/DemoScene.gd b/project/demo/src/DemoScene.gd
index e9f887c11..2b2038046 100644
--- a/project/demo/src/DemoScene.gd
+++ b/project/demo/src/DemoScene.gd
@@ -5,3 +5,17 @@ extends Node
 func _ready():
 	if not Engine.is_editor_hint() and has_node("UI"):
 		$UI.player = $Player
+
+	# Load Sky3D into the demo environment if enabled
+	if Engine.is_editor_hint() and has_node("Environment") and \
+		Engine.get_singleton(&"EditorInterface").is_plugin_enabled("sky_3d"):
+			$Environment.queue_free()
+			var sky3d = load("res://addons/sky_3d/src/Sky3D.gd").new()
+			sky3d.name = "Sky3D"
+			add_child(sky3d, true)
+			move_child(sky3d, 1)
+			sky3d.owner = self
+			sky3d.current_time = 10
+			sky3d.enable_editor_time = false
+			
+		
diff --git a/project/demo/src/Player.gd b/project/demo/src/Player.gd
index e7f365a92..8ae1b8422 100644
--- a/project/demo/src/Player.gd
+++ b/project/demo/src/Player.gd
@@ -28,7 +28,7 @@ extends CharacterBody3D
 
 func _physics_process(p_delta) -> void:
 	var direction: Vector3 = get_camera_relative_input()
-	var h_veloc: Vector2 = Vector2(direction.x, direction.z) * MOVE_SPEED
+	var h_veloc: Vector2 = Vector2(direction.x, direction.z).normalized() * MOVE_SPEED
 	if Input.is_key_pressed(KEY_SHIFT):
 		h_veloc *= 2
 	velocity.x = h_veloc.x
@@ -57,7 +57,7 @@ func get_camera_relative_input() -> Vector3:
 		MOVE_SPEED = clamp(MOVE_SPEED + .5, 5, 9999)
 	if Input.is_key_pressed(KEY_KP_SUBTRACT) or Input.is_key_pressed(KEY_MINUS):
 		MOVE_SPEED = clamp(MOVE_SPEED - .5, 5, 9999)
-	return input_dir		
+	return input_dir
 
 
 func _input(p_event: InputEvent) -> void: