diff --git a/source/simulation2/components/CCmpPathfinder.cpp b/source/simulation2/components/CCmpPathfinder.cpp
index 536dff6e1c..54804f46a4 100644
--- a/source/simulation2/components/CCmpPathfinder.cpp
+++ b/source/simulation2/components/CCmpPathfinder.cpp
@@ -794,16 +794,13 @@ bool CCmpPathfinder::CheckMovement(const IObstructionTestFilter& filter,
 	entity_pos_t x0, entity_pos_t z0, entity_pos_t x1, entity_pos_t z1, entity_pos_t r,
 	pass_class_t passClass)
 {
-	// Test against obstructions first
+	// Test against obstructions first. Pathfinding-blocking obstructions are not handled here.
 	CmpPtr<ICmpObstructionManager> cmpObstructionManager(GetSystemEntity());
-	if (!cmpObstructionManager)
+	if (!cmpObstructionManager || cmpObstructionManager->TestLine(filter, x0, z0, x1, z1, r))
 		return false;
 
-	if (cmpObstructionManager->TestLine(filter, x0, z0, x1, z1, r))
-		return false;
-
-	// Then test against the terrain
-	return Pathfinding::CheckLineMovement(x0, z0, x1, z1, passClass, *m_TerrainOnlyGrid);
+	// Then test against the passability grid.
+	return Pathfinding::CheckLineMovement(x0, z0, x1, z1, passClass, *m_Grid);
 }
 
 ICmpObstruction::EFoundationCheck CCmpPathfinder::CheckUnitPlacement(const IObstructionTestFilter& filter,
diff --git a/source/simulation2/components/ICmpObstructionManager.h b/source/simulation2/components/ICmpObstructionManager.h
index 7723d643ca..d01c72eeea 100644
--- a/source/simulation2/components/ICmpObstructionManager.h
+++ b/source/simulation2/components/ICmpObstructionManager.h
@@ -346,6 +346,12 @@ public:
 		if (group == m_Group || (group2 != INVALID_ENTITY && group2 == m_Group))
 			return false;
 
+		// If an obstruction already blocks tile-based pathfinding, 
+		// it will be handled as part of the terrain passability handling 
+		// and doesn't need to be matched by this filter 
+		if (flags & ICmpObstructionManager::FLAG_BLOCK_PATHFINDING)
+			return false;
+
 		if (!(flags & ICmpObstructionManager::FLAG_BLOCK_MOVEMENT))
 			return false;