diff --git a/src/plugins/three/fade/FadeManager.js b/src/plugins/three/fade/FadeManager.js
index bd8e4b239..9e94bc9ec 100644
--- a/src/plugins/three/fade/FadeManager.js
+++ b/src/plugins/three/fade/FadeManager.js
@@ -96,9 +96,9 @@ export class FadeManager {
 
 	forEachObject( cb ) {
 
-		this._fadeState.forEach( ( info, scene ) => {
+		this._fadeState.forEach( ( info, object ) => {
 
-			cb( scene );
+			cb( object, info );
 
 		} );
 
diff --git a/src/plugins/three/fade/FadeMaterialManager.js b/src/plugins/three/fade/FadeMaterialManager.js
new file mode 100644
index 000000000..5eea03d4f
--- /dev/null
+++ b/src/plugins/three/fade/FadeMaterialManager.js
@@ -0,0 +1,169 @@
+export class FadeMaterialManager {
+
+	constructor() {
+
+		this._fadeParams = new WeakMap();
+		this.fading = 0;
+
+	}
+
+	// Set the fade parameters for the given scene
+	setFade( scene, fadeIn, fadeOut ) {
+
+		if ( ! scene ) {
+
+			return;
+
+		}
+
+		const fadeParams = this._fadeParams;
+		scene.traverse( child => {
+
+			const material = child.material;
+			if ( material ) {
+
+				const params = fadeParams.get( material );
+				params.fadeIn.value = fadeIn;
+				params.fadeOut.value = fadeOut;
+
+				const fadeInComplete = fadeIn === 0 || fadeIn === 1;
+				const fadeOutComplete = fadeOut === 0 || fadeOut === 1;
+				const value = Number( ! fadeInComplete || ! fadeOutComplete );
+				if ( material.defines.FEATURE_FADE !== value ) {
+
+					this.fading += value === 1 ? 1 : - 1;
+					material.defines.FEATURE_FADE = value;
+					material.needsUpdate = true;
+
+				}
+
+			}
+
+		} );
+
+	}
+
+	// initialize materials in the object
+	prepareScene( scene ) {
+
+		scene.traverse( child => {
+
+			if ( child.material ) {
+
+				this.prepareMaterial( child.material );
+
+			}
+
+		} );
+
+	}
+
+	// delete the object from the fade, reset the material data
+	deleteScene( scene ) {
+
+		if ( ! scene ) {
+
+			return;
+
+		}
+
+		const fadeParams = this._fadeParams;
+		scene.traverse( child => {
+
+			const material = child.material;
+			if ( material ) {
+
+				fadeParams.delete( material );
+				material.onBeforeCompile = () => {};
+				material.needsUpdate = true;
+
+			}
+
+		} );
+
+	}
+
+	// initialize the material
+	prepareMaterial( material ) {
+
+		const fadeParams = this._fadeParams;
+		if ( fadeParams.has( material ) ) {
+
+			return;
+
+		}
+
+		const params = {
+			fadeIn: { value: 0 },
+			fadeOut: { value: 0 },
+		};
+
+		material.defines = {
+			FEATURE_FADE: 0,
+		};
+
+		material.onBeforeCompile = shader => {
+
+			shader.uniforms = {
+				...shader.uniforms,
+				...params,
+			};
+
+			shader.fragmentShader = shader.fragmentShader
+				.replace( /void main\(/, value => /* glsl */`
+					#if FEATURE_FADE
+
+					// adapted from https://www.shadertoy.com/view/Mlt3z8
+					float bayerDither2x2( vec2 v ) {
+
+						return mod( 3.0 * v.y + 2.0 * v.x, 4.0 );
+
+					}
+
+					float bayerDither4x4( vec2 v ) {
+
+						vec2 P1 = mod( v, 2.0 );
+						vec2 P2 = floor( 0.5 * mod( v, 4.0 ) );
+						return 4.0 * bayerDither2x2( P1 ) + bayerDither2x2( P2 );
+
+					}
+
+					uniform float fadeIn;
+					uniform float fadeOut;
+					#endif
+
+					${ value }
+				` )
+				.replace( /#include <dithering_fragment>/, value => /* glsl */`
+
+					${ value }
+
+					#if FEATURE_FADE
+
+					float bayerValue = bayerDither4x4( floor( mod( gl_FragCoord.xy, 4.0 ) ) );
+					float bayerBins = 16.0;
+					float dither = ( 0.5 + bayerValue ) / bayerBins;
+					if ( dither >= fadeIn ) {
+
+						discard;
+
+					}
+
+					if ( dither < fadeOut ) {
+
+						discard;
+
+					}
+
+					#endif
+
+				` );
+
+
+		};
+
+		fadeParams.set( material, params );
+
+	}
+
+}
diff --git a/src/plugins/three/fade/TilesFadePlugin.js b/src/plugins/three/fade/TilesFadePlugin.js
index 058c010b9..d236a040e 100644
--- a/src/plugins/three/fade/TilesFadePlugin.js
+++ b/src/plugins/three/fade/TilesFadePlugin.js
@@ -1,5 +1,6 @@
 import { Matrix4, Vector3, Quaternion } from 'three';
 import { FadeManager } from './FadeManager.js';
+import { FadeMaterialManager } from './FadeMaterialManager.js';
 
 const HAS_POPPED_IN = Symbol( 'HAS_POPPED_IN' );
 const _fromPos = new Vector3();
@@ -59,16 +60,22 @@ function onTileVisibilityChange( tile, visible ) {
 
 function onLoadModel( scene, tile ) {
 
+	this._fadeMaterialManager.prepareScene( scene );
+
 }
 
 function onDisposeModel( scene, tile ) {
 
 	this._fadeManager.deleteObject( tile );
+	this._fadeMaterialManager.deleteScene( scene );
 
 }
 
 function onFadeComplete( tile, visible ) {
 
+	// mark the fade as finished
+	this._fadeMaterialManager.setFade( tile.cached.scene, 0, 0 );
+
 	if ( ! visible ) {
 
 		// now that the tile is hidden we can run the built-in setTileVisible function for the tile
@@ -111,6 +118,7 @@ function onUpdateBefore() {
 function onUpdateAfter() {
 
 	const fadeManager = this._fadeManager;
+	const fadeMaterialManager = this._fadeMaterialManager;
 	const displayActiveTiles = this._displayActiveTiles;
 	const fadingBefore = this._fadingBefore;
 	const tiles = this.tiles;
@@ -210,10 +218,11 @@ function onUpdateAfter() {
 
 	} );
 
-	// prevent faded tiles from being unloaded
-	fadeManager.forEachObject( tile => {
+	fadeManager.forEachObject( ( tile, { fadeIn, fadeOut } ) => {
 
+		// prevent faded tiles from being unloaded
 		lruCache.markUsed( tile );
+		fadeMaterialManager.setFade( tile.cached.scene, fadeIn, fadeOut );
 
 	} );
 
@@ -255,6 +264,7 @@ export class TilesFadePlugin {
 
 		this.tiles = null;
 		this._fadeManager = new FadeManager();
+		this._fadeMaterialManager = new FadeMaterialManager();
 		this._prevCameraTransforms = null;
 		this._tileMap = null; // TODO
 		this._fadingOutCount = 0;