diff --git a/Engine/source/shaderGen/GLSL/bumpGLSL.cpp b/Engine/source/shaderGen/GLSL/bumpGLSL.cpp
index 07f874f8b..56c8907e5 100644
--- a/Engine/source/shaderGen/GLSL/bumpGLSL.cpp
+++ b/Engine/source/shaderGen/GLSL/bumpGLSL.cpp
@@ -347,8 +347,16 @@ void ParallaxFeatGLSL::processPix(  Vector<ShaderComponent*> &componentList,
    Var *normalMap = getNormalMapTex();
 	
    // Call the library function to do the rest.
-   meta->addStatement( new GenOp( "   @.xy += parallaxOffset( @, @.xy, @, @ );\r\n", 
-      texCoord, normalMap, texCoord, negViewTS, parallaxInfo ) );
+   if (fd.features.hasFeature(MFT_IsDXTnm, getProcessIndex()))
+   {
+      meta->addStatement(new GenOp("   @.xy += parallaxOffsetDxtnm( @, @.xy, @, @ );\r\n",
+      texCoord, normalMap, texCoord, negViewTS, parallaxInfo));
+   }
+   else
+   {
+      meta->addStatement(new GenOp("   @.xy += parallaxOffset( @, @.xy, @, @ );\r\n",
+      texCoord, normalMap, texCoord, negViewTS, parallaxInfo));
+   }
    
    // TODO: Fix second UV maybe?
 	
diff --git a/Engine/source/terrain/glsl/terrFeatureGLSL.cpp b/Engine/source/terrain/glsl/terrFeatureGLSL.cpp
index eba99371a..6922cf577 100644
--- a/Engine/source/terrain/glsl/terrFeatureGLSL.cpp
+++ b/Engine/source/terrain/glsl/terrFeatureGLSL.cpp
@@ -468,8 +468,16 @@ void TerrainDetailMapFeatGLSL::processPix(   Vector<ShaderComponent*> &component
       Var *normalMap = _getNormalMapTex();
 
       // Call the library function to do the rest.
-      meta->addStatement( new GenOp( "   @.xy += parallaxOffset( @, @.xy, @, @.z * @ );\r\n", 
-         inDet, normalMap, inDet, negViewTS, detailInfo, detailBlend ) );
+      if (fd.features.hasFeature(MFT_IsDXTnm, detailIndex))
+      {
+         meta->addStatement(new GenOp("   @.xy += parallaxOffsetDxtnm( @, @.xy, @, @.z * @ );\r\n",
+         inDet, normalMap, inDet, negViewTS, detailInfo, detailBlend));
+      }
+      else
+      {
+         meta->addStatement(new GenOp("   @.xy += parallaxOffset( @, @.xy, @, @.z * @ );\r\n",
+         inDet, normalMap, inDet, negViewTS, detailInfo, detailBlend));
+      }
    }
 
    // If this is a prepass then we skip color.
diff --git a/Templates/Empty/game/shaders/common/gl/torque.glsl b/Templates/Empty/game/shaders/common/gl/torque.glsl
index 42965b7c3..9032a57f7 100644
--- a/Templates/Empty/game/shaders/common/gl/torque.glsl
+++ b/Templates/Empty/game/shaders/common/gl/torque.glsl
@@ -139,12 +139,27 @@ mat3x3 quatToMat( vec4 quat )
 vec2 parallaxOffset( sampler2D texMap, vec2 texCoord, vec3 negViewTS, float depthScale )
 {
    float depth = texture( texMap, texCoord ).a;
-   vec2 offset = negViewTS.xy * ( depth * depthScale );
+   vec2 offset = negViewTS.xy * vec2( depth * depthScale );
 
    for ( int i=0; i < PARALLAX_REFINE_STEPS; i++ )
    {
       depth = ( depth + texture( texMap, texCoord + offset ).a ) * 0.5;
-      offset = negViewTS.xy * ( depth * depthScale );
+      offset = negViewTS.xy * vec2( depth * depthScale );
+   }
+
+   return offset;
+}
+
+/// Same as parallaxOffset but for dxtnm where depth is stored in the red channel instead of the alpha
+vec2 parallaxOffsetDxtnm(sampler2D texMap, vec2 texCoord, vec3 negViewTS, float depthScale)
+{
+   float depth = texture(texMap, texCoord).r;
+   vec2 offset = negViewTS.xy * vec2(depth * depthScale);
+
+   for (int i = 0; i < PARALLAX_REFINE_STEPS; i++)
+   {
+      depth = (depth + texture(texMap, texCoord + offset).r) * 0.5;
+      offset = negViewTS.xy * vec2(depth * depthScale);
    }
 
    return offset;
diff --git a/Templates/Full/game/shaders/common/gl/torque.glsl b/Templates/Full/game/shaders/common/gl/torque.glsl
index 42965b7c3..9032a57f7 100644
--- a/Templates/Full/game/shaders/common/gl/torque.glsl
+++ b/Templates/Full/game/shaders/common/gl/torque.glsl
@@ -139,12 +139,27 @@ mat3x3 quatToMat( vec4 quat )
 vec2 parallaxOffset( sampler2D texMap, vec2 texCoord, vec3 negViewTS, float depthScale )
 {
    float depth = texture( texMap, texCoord ).a;
-   vec2 offset = negViewTS.xy * ( depth * depthScale );
+   vec2 offset = negViewTS.xy * vec2( depth * depthScale );
 
    for ( int i=0; i < PARALLAX_REFINE_STEPS; i++ )
    {
       depth = ( depth + texture( texMap, texCoord + offset ).a ) * 0.5;
-      offset = negViewTS.xy * ( depth * depthScale );
+      offset = negViewTS.xy * vec2( depth * depthScale );
+   }
+
+   return offset;
+}
+
+/// Same as parallaxOffset but for dxtnm where depth is stored in the red channel instead of the alpha
+vec2 parallaxOffsetDxtnm(sampler2D texMap, vec2 texCoord, vec3 negViewTS, float depthScale)
+{
+   float depth = texture(texMap, texCoord).r;
+   vec2 offset = negViewTS.xy * vec2(depth * depthScale);
+
+   for (int i = 0; i < PARALLAX_REFINE_STEPS; i++)
+   {
+      depth = (depth + texture(texMap, texCoord + offset).r) * 0.5;
+      offset = negViewTS.xy * vec2(depth * depthScale);
    }
 
    return offset;