diff --git a/package/Shaders/Lighting.hlsl b/package/Shaders/Lighting.hlsl
index 14c27cf475..141859991a 100644
--- a/package/Shaders/Lighting.hlsl
+++ b/package/Shaders/Lighting.hlsl
@@ -1979,16 +1979,6 @@ PS_OUTPUT main(PS_INPUT input, bool frontFace
 	if (dirShadow != 0.0 && (inWorld || inReflection))
 		dirShadow *= ShadowSampling::GetWorldShadow(input.WorldPosition, FrameBuffer::CameraPosAdjust[eyeIndex], eyeIndex);
 
-#	if defined(SKYLIGHTING)
-	float skylightingFadeOutFactor = 1.0;
-	if (!SharedData::InInterior) {
-		skylightingFadeOutFactor = Skylighting::getFadeOutFactor(input.WorldPosition.xyz);
-		// Shadow bias fix
-		float skylightingDirShadow = saturate(SphericalHarmonics::Unproject(skylightingSH, SharedData::DirLightDirection.xyz));
-		dirShadow *= lerp(1.0, skylightingDirShadow * skylightingDirShadow, skylightingFadeOutFactor);
-	}
-#	endif
-
 	dirLightColorMultiplier *= dirShadow;
 
 	float3 diffuseColor = 0.0.xxx;
diff --git a/src/Features/Skylighting.cpp b/src/Features/Skylighting.cpp
index 8b9545338b..a8aa648361 100644
--- a/src/Features/Skylighting.cpp
+++ b/src/Features/Skylighting.cpp
@@ -417,7 +417,15 @@ RE::BSLightingShaderProperty::Data* Skylighting::BSLightingShaderProperty_GetPre
 		}
 	}
 
-	if (property->flags.any(kZBufferWrite) && property->flags.none(kRefraction, kTempRefraction, kMultiTextureLandscape, kNoLODLandBlend, kLODLandscape, kEyeReflect, kDecal, kDynamicDecal)) {
+	bool valid = false;
+
+	if (skylighting->inOcclusion) {
+		valid = property->flags.any(kZBufferWrite) && property->flags.none(kRefraction, kTempRefraction, kLODLandscape, kEyeReflect, kDecal, kDynamicDecal);
+	} else {
+		valid = property->flags.any(kZBufferWrite) && property->flags.none(kRefraction, kTempRefraction, kMultiTextureLandscape, kNoLODLandBlend, kLODLandscape, kEyeReflect, kDecal, kDynamicDecal);
+	}
+
+	if (valid) {
 		if (geometry->worldBound.radius > 32) {
 			stl::enumeration<RE::BSUtilityShader::Flags> technique;
 			technique.set(RenderDepth);