diff --git a/core/config/project_settings.cpp b/core/config/project_settings.cpp
index 52677e80c32..9bae46e9049 100644
--- a/core/config/project_settings.cpp
+++ b/core/config/project_settings.cpp
@@ -1504,8 +1504,8 @@ ProjectSettings::ProjectSettings() {
 	// Keep the enum values in sync with the `DisplayServer::VSyncMode` enum.
 	custom_prop_info["display/window/vsync/vsync_mode"] = PropertyInfo(Variant::INT, "display/window/vsync/vsync_mode", PROPERTY_HINT_ENUM, "Disabled,Enabled,Adaptive,Mailbox");
 	custom_prop_info["rendering/driver/threads/thread_model"] = PropertyInfo(Variant::INT, "rendering/driver/threads/thread_model", PROPERTY_HINT_ENUM, "Single-Unsafe,Single-Safe,Multi-Threaded");
-	GLOBAL_DEF("physics/2d/run_on_separate_thread", false);
-	GLOBAL_DEF("physics/3d/run_on_separate_thread", false);
+	GLOBAL_DEF_RST(PropertyInfo(Variant::INT, "physics/2d/run_on_separate_thread", PROPERTY_HINT_ENUM, "Disabled,Game,Game and Editor"), 0);
+	GLOBAL_DEF_RST(PropertyInfo(Variant::INT, "physics/3d/run_on_separate_thread", PROPERTY_HINT_ENUM, "Disabled,Game,Game and Editor"), 0);
 
 	GLOBAL_DEF_BASIC(PropertyInfo(Variant::STRING, "display/window/stretch/mode", PROPERTY_HINT_ENUM, "disabled,canvas_items,viewport"), "disabled");
 	GLOBAL_DEF_BASIC(PropertyInfo(Variant::STRING, "display/window/stretch/aspect", PROPERTY_HINT_ENUM, "ignore,keep,keep_width,keep_height,expand"), "keep");
diff --git a/editor/plugins/node_3d_editor_plugin.cpp b/editor/plugins/node_3d_editor_plugin.cpp
index 0df0274495f..f8f20ae60b2 100644
--- a/editor/plugins/node_3d_editor_plugin.cpp
+++ b/editor/plugins/node_3d_editor_plugin.cpp
@@ -917,6 +917,38 @@ void Node3DEditorViewport::_find_items_at_pos(const Point2 &p_pos, Vector<_RayRe
 	r_results.sort();
 }
 
+void Node3DEditorViewport::_reposition_selected_nodes() {
+	if (collision_reposition) {
+		List<Node *> &selection = editor_selection->get_selected_node_list();
+
+		if (selection.size() == 1) {
+			Node3D *first_selected_node = Object::cast_to<Node3D>(selection.front()->get());
+			double snap = EDITOR_GET("interface/inspector/default_float_step");
+			int snap_step_decimals = Math::range_step_decimals(snap);
+			set_message(TTR("Translating:") + " (" + String::num(first_selected_node->get_global_position().x, snap_step_decimals) + ", " +
+					String::num(first_selected_node->get_global_position().y, snap_step_decimals) + ", " + String::num(first_selected_node->get_global_position().z, snap_step_decimals) + ")");
+			first_selected_node->set_global_position(spatial_editor->snap_point(_get_instance_position(_edit.mouse_pos, first_selected_node)));
+		}
+	}
+
+	if (!update_preview_node) {
+		return;
+	}
+	if (preview_node->is_inside_tree()) {
+		preview_node_pos = spatial_editor->snap_point(_get_instance_position(preview_node_viewport_pos, preview_node));
+		double snap = EDITOR_GET("interface/inspector/default_float_step");
+		int snap_step_decimals = Math::range_step_decimals(snap);
+		set_message(TTR("Instantiating:") + " (" + String::num(preview_node_pos.x, snap_step_decimals) + ", " +
+				String::num(preview_node_pos.y, snap_step_decimals) + ", " + String::num(preview_node_pos.z, snap_step_decimals) + ")");
+		Transform3D preview_gl_transform = Transform3D(Basis(), preview_node_pos);
+		preview_node->set_global_transform(preview_gl_transform);
+		if (!preview_node->is_visible()) {
+			preview_node->show();
+		}
+	}
+	update_preview_node = false;
+}
+
 Vector3 Node3DEditorViewport::_get_screen_to_space(const Vector3 &p_vector3) {
 	Projection cm;
 	if (orthogonal) {
@@ -2850,6 +2882,8 @@ void Node3DEditorViewport::_project_settings_changed() {
 
 	const float texture_mipmap_bias = GLOBAL_GET("rendering/textures/default_filters/texture_mipmap_bias");
 	viewport->set_texture_mipmap_bias(texture_mipmap_bias);
+
+	is_3d_editor_using_separate_physics_thread = GLOBAL_GET("physics/3d/run_on_separate_thread").operator int() != 0 && GLOBAL_GET("physics/3d/run_on_separate_thread").operator int() != 1;
 }
 
 void Node3DEditorViewport::_notification(int p_what) {
@@ -3082,38 +3116,16 @@ void Node3DEditorViewport::_notification(int p_what) {
 				float locked_half_width = locked_label->get_size().width / 2.0f;
 				locked_label->set_anchor_and_offset(SIDE_LEFT, 0.5f, -locked_half_width);
 			}
+
+			if (!is_3d_editor_using_separate_physics_thread) {
+				_reposition_selected_nodes();
+			}
 		} break;
 
 		case NOTIFICATION_PHYSICS_PROCESS: {
-			if (collision_reposition) {
-				List<Node *> &selection = editor_selection->get_selected_node_list();
-
-				if (selection.size() == 1) {
-					Node3D *first_selected_node = Object::cast_to<Node3D>(selection.front()->get());
-					double snap = EDITOR_GET("interface/inspector/default_float_step");
-					int snap_step_decimals = Math::range_step_decimals(snap);
-					set_message(TTR("Translating:") + " (" + String::num(first_selected_node->get_global_position().x, snap_step_decimals) + ", " +
-							String::num(first_selected_node->get_global_position().y, snap_step_decimals) + ", " + String::num(first_selected_node->get_global_position().z, snap_step_decimals) + ")");
-					first_selected_node->set_global_position(spatial_editor->snap_point(_get_instance_position(_edit.mouse_pos, first_selected_node)));
-				}
+			if (is_3d_editor_using_separate_physics_thread) {
+				_reposition_selected_nodes();
 			}
-
-			if (!update_preview_node) {
-				return;
-			}
-			if (preview_node->is_inside_tree()) {
-				preview_node_pos = spatial_editor->snap_point(_get_instance_position(preview_node_viewport_pos, preview_node));
-				double snap = EDITOR_GET("interface/inspector/default_float_step");
-				int snap_step_decimals = Math::range_step_decimals(snap);
-				set_message(TTR("Instantiating:") + " (" + String::num(preview_node_pos.x, snap_step_decimals) + ", " +
-						String::num(preview_node_pos.y, snap_step_decimals) + ", " + String::num(preview_node_pos.z, snap_step_decimals) + ")");
-				Transform3D preview_gl_transform = Transform3D(Basis(), preview_node_pos);
-				preview_node->set_global_transform(preview_gl_transform);
-				if (!preview_node->is_visible()) {
-					preview_node->show();
-				}
-			}
-			update_preview_node = false;
 		} break;
 
 		case NOTIFICATION_APPLICATION_FOCUS_OUT:
@@ -5707,6 +5719,8 @@ Node3DEditorViewport::Node3DEditorViewport(Node3DEditor *p_spatial_editor, int p
 	freelook_active = false;
 	freelook_speed = EDITOR_GET("editors/3d/freelook/freelook_base_speed");
 
+	is_3d_editor_using_separate_physics_thread = GLOBAL_GET("physics/3d/run_on_separate_thread").operator int() != 0 && GLOBAL_GET("physics/3d/run_on_separate_thread").operator int() != 1;
+
 	selection_menu = memnew(PopupMenu);
 	add_child(selection_menu);
 	selection_menu->set_min_size(Size2(100, 0) * EDSCALE);
diff --git a/editor/plugins/node_3d_editor_plugin.h b/editor/plugins/node_3d_editor_plugin.h
index 1b03362606a..51e0a5d53a4 100644
--- a/editor/plugins/node_3d_editor_plugin.h
+++ b/editor/plugins/node_3d_editor_plugin.h
@@ -246,6 +246,7 @@ private:
 	bool lock_rotation;
 	bool transform_gizmo_visible = true;
 	bool collision_reposition = false;
+	bool is_3d_editor_using_separate_physics_thread = false;
 	real_t gizmo_scale;
 
 	bool freelook_active;
@@ -285,6 +286,7 @@ private:
 	void _select_clicked(bool p_allow_locked);
 	ObjectID _select_ray(const Point2 &p_pos) const;
 	void _find_items_at_pos(const Point2 &p_pos, Vector<_RayResult> &r_results, bool p_include_locked);
+	void _reposition_selected_nodes();
 
 	Transform3D _get_camera_transform() const;
 	int get_selected_count() const;
diff --git a/modules/godot_physics_2d/register_types.cpp b/modules/godot_physics_2d/register_types.cpp
index 57422b18140..dcc6deb313a 100644
--- a/modules/godot_physics_2d/register_types.cpp
+++ b/modules/godot_physics_2d/register_types.cpp
@@ -36,7 +36,16 @@
 
 static PhysicsServer2D *_createGodotPhysics2DCallback() {
 #ifdef THREADS_ENABLED
-	bool using_threads = GLOBAL_GET("physics/2d/run_on_separate_thread");
+	bool using_threads = false;
+	const int thread_type = GLOBAL_GET("physics/2d/run_on_separate_thread").operator int();
+
+	if (thread_type == 0) { // Threads disabled
+		using_threads = false;
+	} else if (thread_type == 1) { // Just runtime game threads
+		using_threads = !Engine::get_singleton()->is_editor_hint();
+	} else if (thread_type == 2) { // Both runtime game and editor threads
+		using_threads = true;
+	}
 #else
 	bool using_threads = false;
 #endif
diff --git a/modules/godot_physics_3d/register_types.cpp b/modules/godot_physics_3d/register_types.cpp
index 1b1690cf59f..7e918dfb322 100644
--- a/modules/godot_physics_3d/register_types.cpp
+++ b/modules/godot_physics_3d/register_types.cpp
@@ -36,7 +36,16 @@
 
 static PhysicsServer3D *_createGodotPhysics3DCallback() {
 #ifdef THREADS_ENABLED
-	bool using_threads = GLOBAL_GET("physics/3d/run_on_separate_thread");
+	bool using_threads = false;
+	const int thread_type = GLOBAL_GET("physics/3d/run_on_separate_thread").operator int();
+
+	if (thread_type == 0) { // Threads disabled
+		using_threads = false;
+	} else if (thread_type == 1) { // Just runtime game threads
+		using_threads = !Engine::get_singleton()->is_editor_hint();
+	} else if (thread_type == 2) { // Both runtime game and editor threads
+		using_threads = true;
+	}
 #else
 	bool using_threads = false;
 #endif