diff --git a/Content.Server/Conveyor/ActiveConveyorComponent.cs b/Content.Server/Conveyor/ActiveConveyorComponent.cs
new file mode 100644
index 0000000000..da18c7ef87
--- /dev/null
+++ b/Content.Server/Conveyor/ActiveConveyorComponent.cs
@@ -0,0 +1,10 @@
+namespace Content.Server.Conveyor;
+
+/// <summary>
+/// Used to track which conveyors are relevant in case there's a lot of them.
+/// </summary>
+[RegisterComponent]
+public sealed class ActiveConveyorComponent : Component
+{
+
+}
diff --git a/Content.Server/Conveyor/ConveyorComponent.cs b/Content.Server/Conveyor/ConveyorComponent.cs
index 1437c0e5a6..12cca3e261 100644
--- a/Content.Server/Conveyor/ConveyorComponent.cs
+++ b/Content.Server/Conveyor/ConveyorComponent.cs
@@ -1,11 +1,13 @@
+using Content.Server.Physics.Controllers;
 using Content.Shared.Conveyor;
 using Content.Shared.MachineLinking;
+using Robust.Shared.Physics.Collision.Shapes;
 using Robust.Shared.Serialization.TypeSerializers.Implementations.Custom.Prototype;
 
 namespace Content.Server.Conveyor
 {
     [RegisterComponent]
-    [Access(typeof(ConveyorSystem))]
+    [Access(typeof(ConveyorController))]
     public sealed class ConveyorComponent : Component
     {
         /// <summary>
@@ -36,5 +38,8 @@ namespace Content.Server.Conveyor
 
         [DataField("offPort", customTypeSerializer: typeof(PrototypeIdSerializer<TransmitterPortPrototype>))]
         public string OffPort = "Off";
+
+        [ViewVariables]
+        public readonly HashSet<EntityUid> Intersecting = new();
     }
 }
diff --git a/Content.Server/Conveyor/ConveyorSystem.cs b/Content.Server/Conveyor/ConveyorSystem.cs
deleted file mode 100644
index 32afa82395..0000000000
--- a/Content.Server/Conveyor/ConveyorSystem.cs
+++ /dev/null
@@ -1,75 +0,0 @@
-using Content.Server.MachineLinking.Events;
-using Content.Server.MachineLinking.System;
-using Content.Server.Power.Components;
-using Content.Server.Power.EntitySystems;
-using Content.Server.Recycling;
-using Content.Server.Recycling.Components;
-using Content.Shared.Conveyor;
-using Content.Shared.Item;
-
-namespace Content.Server.Conveyor
-{
-    public sealed class ConveyorSystem : EntitySystem
-    {
-        [Dependency] private RecyclerSystem _recycler = default!;
-        [Dependency] private readonly SignalLinkerSystem _signalSystem = default!;
-
-        public override void Initialize()
-        {
-            base.Initialize();
-
-            SubscribeLocalEvent<ConveyorComponent, ComponentInit>(OnInit);
-            SubscribeLocalEvent<ConveyorComponent, SignalReceivedEvent>(OnSignalReceived);
-            SubscribeLocalEvent<ConveyorComponent, PowerChangedEvent>(OnPowerChanged);
-        }
-
-        private void OnInit(EntityUid uid, ConveyorComponent component, ComponentInit args)
-        {
-            _signalSystem.EnsureReceiverPorts(uid, component.ReversePort, component.ForwardPort, component.OffPort);
-        }
-
-        private void OnPowerChanged(EntityUid uid, ConveyorComponent component, PowerChangedEvent args)
-        {
-            UpdateAppearance(component);
-        }
-
-        private void UpdateAppearance(ConveyorComponent component)
-        {
-            if (!EntityManager.TryGetComponent<AppearanceComponent?>(component.Owner, out var appearance)) return;
-            var isPowered = this.IsPowered(component.Owner, EntityManager);
-            appearance.SetData(ConveyorVisuals.State, isPowered ? component.State : ConveyorState.Off);
-        }
-
-        private void OnSignalReceived(EntityUid uid, ConveyorComponent component, SignalReceivedEvent args)
-        {
-            if (args.Port == component.OffPort)
-                SetState(component, ConveyorState.Off);
-            else if (args.Port == component.ForwardPort)
-                SetState(component, ConveyorState.Forward);
-            else if (args.Port == component.ReversePort)
-                SetState(component, ConveyorState.Reverse);
-        }
-
-        private void SetState(ConveyorComponent component, ConveyorState state)
-        {
-            component.State = state;
-
-            if (TryComp<RecyclerComponent>(component.Owner, out var recycler))
-            {
-                if (component.State != ConveyorState.Off)
-                    _recycler.EnableRecycler(recycler);
-                else
-                    _recycler.DisableRecycler(recycler);
-            }
-
-            UpdateAppearance(component);
-        }
-
-        public bool CanRun(ConveyorComponent component)
-        {
-            return component.State != ConveyorState.Off &&
-                   !EntityManager.HasComponent<ItemComponent>(component.Owner) &&
-                   this.IsPowered(component.Owner, EntityManager);
-        }
-    }
-}
diff --git a/Content.Server/Physics/Controllers/ConveyorController.cs b/Content.Server/Physics/Controllers/ConveyorController.cs
index 38d89914ec..d84922bf7b 100644
--- a/Content.Server/Physics/Controllers/ConveyorController.cs
+++ b/Content.Server/Physics/Controllers/ConveyorController.cs
@@ -1,53 +1,170 @@
 using Content.Server.Conveyor;
+using Content.Server.Gravity.EntitySystems;
+using Content.Server.MachineLinking.Events;
+using Content.Server.MachineLinking.System;
+using Content.Server.Power.Components;
+using Content.Server.Power.EntitySystems;
+using Content.Server.Recycling;
+using Content.Server.Recycling.Components;
 using Content.Shared.Conveyor;
+using Content.Shared.Item;
 using Content.Shared.Movement.Components;
+using Content.Shared.Physics;
 using Robust.Shared.Containers;
 using Robust.Shared.Map;
 using Robust.Shared.Physics;
+using Robust.Shared.Physics.Collision.Shapes;
 using Robust.Shared.Physics.Controllers;
+using Robust.Shared.Physics.Dynamics;
 
 namespace Content.Server.Physics.Controllers
 {
     public sealed class ConveyorController : VirtualController
     {
-        [Dependency] private readonly EntityLookupSystem _lookup = default!;
         [Dependency] private readonly IMapManager _mapManager = default!;
-        [Dependency] private readonly ConveyorSystem _conveyor = default!;
-        [Dependency] private readonly SharedContainerSystem _container = default!;
+        [Dependency] private readonly EntityLookupSystem _lookup = default!;
+        [Dependency] private readonly FixtureSystem _fixtures = default!;
+        [Dependency] private readonly GravitySystem _gravity = default!;
+        [Dependency] private readonly RecyclerSystem _recycler = default!;
+        [Dependency] private readonly SignalLinkerSystem _signalSystem = default!;
+
+        public const string ConveyorFixture = "conveyor";
 
         public override void Initialize()
         {
             UpdatesAfter.Add(typeof(MoverController));
+            SubscribeLocalEvent<ConveyorComponent, ComponentInit>(OnInit);
+            SubscribeLocalEvent<ConveyorComponent, ComponentShutdown>(OnConveyorShutdown);
+            SubscribeLocalEvent<ConveyorComponent, SignalReceivedEvent>(OnSignalReceived);
+            SubscribeLocalEvent<ConveyorComponent, PowerChangedEvent>(OnPowerChanged);
+            SubscribeLocalEvent<ConveyorComponent, StartCollideEvent>(OnConveyorStartCollide);
+            SubscribeLocalEvent<ConveyorComponent, EndCollideEvent>(OnConveyorEndCollide);
 
             base.Initialize();
         }
 
+        private void OnConveyorEndCollide(EntityUid uid, ConveyorComponent component, EndCollideEvent args)
+        {
+            component.Intersecting.Remove(args.OtherFixture.Body.Owner);
+
+            if (component.Intersecting.Count == 0)
+            {
+                RemComp<ActiveConveyorComponent>(uid);
+            }
+        }
+
+        private void OnConveyorStartCollide(EntityUid uid, ConveyorComponent component, StartCollideEvent args)
+        {
+            var otherUid = args.OtherFixture.Body.Owner;
+
+            if (args.OtherFixture.Body.BodyType == BodyType.Static) return;
+
+            component.Intersecting.Add(otherUid);
+            EnsureComp<ActiveConveyorComponent>(uid);
+        }
+
+        private void OnInit(EntityUid uid, ConveyorComponent component, ComponentInit args)
+        {
+            _signalSystem.EnsureReceiverPorts(uid, component.ReversePort, component.ForwardPort, component.OffPort);
+
+            if (TryComp<PhysicsComponent>(uid, out var body))
+            {
+                var shape = new PolygonShape();
+                shape.SetAsBox(0.55f, 0.55f);
+
+                _fixtures.TryCreateFixture(body, new Fixture(body, shape)
+                {
+                    ID = ConveyorFixture,
+                    CollisionLayer = (int) (CollisionGroup.LowImpassable | CollisionGroup.MidImpassable | CollisionGroup.Impassable),
+                    Hard = false,
+                });
+            }
+        }
+
+        private void OnPowerChanged(EntityUid uid, ConveyorComponent component, PowerChangedEvent args)
+        {
+            UpdateAppearance(component);
+        }
+
+        private void UpdateAppearance(ConveyorComponent component)
+        {
+            if (!EntityManager.TryGetComponent<AppearanceComponent?>(component.Owner, out var appearance)) return;
+            var isPowered = this.IsPowered(component.Owner, EntityManager);
+            appearance.SetData(ConveyorVisuals.State, isPowered ? component.State : ConveyorState.Off);
+        }
+
+        private void OnSignalReceived(EntityUid uid, ConveyorComponent component, SignalReceivedEvent args)
+        {
+            if (args.Port == component.OffPort)
+                SetState(component, ConveyorState.Off);
+            else if (args.Port == component.ForwardPort)
+                SetState(component, ConveyorState.Forward);
+            else if (args.Port == component.ReversePort)
+                SetState(component, ConveyorState.Reverse);
+        }
+
+        private void SetState(ConveyorComponent component, ConveyorState state)
+        {
+            component.State = state;
+
+            if (TryComp<RecyclerComponent>(component.Owner, out var recycler))
+            {
+                if (component.State != ConveyorState.Off)
+                    _recycler.EnableRecycler(recycler);
+                else
+                    _recycler.DisableRecycler(recycler);
+            }
+
+            UpdateAppearance(component);
+        }
+
+        public bool CanRun(ConveyorComponent component)
+        {
+            return component.State != ConveyorState.Off && this.IsPowered(component.Owner, EntityManager);
+        }
+
+        private void OnConveyorShutdown(EntityUid uid, ConveyorComponent component, ComponentShutdown args)
+        {
+            RemComp<ActiveConveyorComponent>(uid);
+
+            if (!TryComp<PhysicsComponent>(uid, out var body))
+                return;
+
+            _fixtures.DestroyFixture(body, ConveyorFixture);
+        }
+
         public override void UpdateBeforeSolve(bool prediction, float frameTime)
         {
             base.UpdateBeforeSolve(prediction, frameTime);
 
             var conveyed = new HashSet<EntityUid>();
+            // Don't use it directly in EntityQuery because we may be able to save getcomponents.
+            var xformQuery = GetEntityQuery<TransformComponent>();
+            var bodyQuery = GetEntityQuery<PhysicsComponent>();
 
-            // TODO: This won't work if someone wants a massive fuckoff conveyor so look at using StartCollide or something.
-            foreach (var (comp, xform) in EntityManager.EntityQuery<ConveyorComponent, TransformComponent>())
+            foreach (var (_, comp) in EntityQuery<ActiveConveyorComponent, ConveyorComponent>())
             {
-                Convey(comp, xform, conveyed, frameTime);
+                Convey(comp, xformQuery, bodyQuery, conveyed, frameTime);
             }
         }
 
-        private void Convey(ConveyorComponent comp, TransformComponent xform, HashSet<EntityUid> conveyed, float frameTime)
+        private void Convey(ConveyorComponent comp, EntityQuery<TransformComponent> xformQuery, EntityQuery<PhysicsComponent> bodyQuery, HashSet<EntityUid> conveyed, float frameTime)
         {
             // Use an event for conveyors to know what needs to run
-            if (!_conveyor.CanRun(comp))
+            if (!CanRun(comp))
             {
                 return;
             }
 
             var speed = comp.Speed;
 
-            if (speed <= 0f) return;
+            if (speed <= 0f ||
+                !xformQuery.TryGetComponent(comp.Owner, out var xform) ||
+                xform.GridUid == null)
+                return;
 
-            var (conveyorPos, conveyorRot) = xform.GetWorldPositionRotation();
+            var conveyorPos = xform.LocalPosition;
+            var conveyorRot = xform.LocalRotation;
 
             conveyorRot += comp.Angle;
 
@@ -58,18 +175,20 @@ namespace Content.Server.Physics.Controllers
 
             var direction = conveyorRot.ToWorldVec();
 
-            foreach (var (entity, transform) in GetEntitiesToMove(comp, xform))
+            foreach (var (entity, transform, body) in GetEntitiesToMove(comp, xform, xformQuery, bodyQuery))
             {
-                if (!conveyed.Add(entity)) continue;
+                if (!conveyed.Add(entity))
+                    continue;
 
-                var worldPos = transform.WorldPosition;
-                var itemRelative = conveyorPos - worldPos;
+                var localPos = transform.LocalPosition;
+                var itemRelative = conveyorPos - localPos;
 
-                worldPos += Convey(direction, speed, frameTime, itemRelative);
-                transform.WorldPosition = worldPos;
+                localPos += Convey(direction, speed, frameTime, itemRelative);
+                transform.LocalPosition = localPos;
 
-                if (TryComp<PhysicsComponent>(entity, out var body))
-                    body.Awake = true;
+                // Force it awake for collisionwake reasons.
+                body.Awake = true;
+                body.SleepTime = 0f;
             }
         }
 
@@ -102,42 +221,41 @@ namespace Content.Server.Physics.Controllers
             }
         }
 
-        public IEnumerable<(EntityUid, TransformComponent)> GetEntitiesToMove(ConveyorComponent comp, TransformComponent xform)
+        private IEnumerable<(EntityUid, TransformComponent, PhysicsComponent)> GetEntitiesToMove(
+            ConveyorComponent comp,
+            TransformComponent xform,
+            EntityQuery<TransformComponent> xformQuery,
+            EntityQuery<PhysicsComponent> bodyQuery)
         {
-            if (!_mapManager.TryGetGrid(xform.GridUid, out var grid) ||
-                !grid.TryGetTileRef(xform.Coordinates, out var tile)) yield break;
+            // Check if the thing's centre overlaps the grid tile.
+            var grid = _mapManager.GetGrid(xform.GridUid!.Value);
+            var tile = grid.GetTileRef(xform.Coordinates);
+            var conveyorBounds = _lookup.GetLocalBounds(tile, grid.TileSize);
 
-            var tileAABB = _lookup.GetLocalBounds(tile, grid.TileSize).Enlarged(0.01f);
-            var gridMatrix = Transform(grid.GridEntityId).InvWorldMatrix;
-
-            foreach (var entity in _lookup.GetEntitiesIntersecting(tile))
+            foreach (var entity in comp.Intersecting)
             {
-                if (entity == comp.Owner ||
-                    Deleted(entity) ||
-                    HasComp<IMapGridComponent>(entity)) continue;
-
-                if (!TryComp(entity, out PhysicsComponent? physics) ||
-                    physics.BodyType == BodyType.Static ||
-                    physics.BodyStatus == BodyStatus.InAir ||
-                    entity.IsWeightless(physics, entityManager: EntityManager))
+                if (!xformQuery.TryGetComponent(entity, out var entityXform) ||
+                    entityXform.ParentUid != grid.GridEntityId)
                 {
                     continue;
                 }
 
-                if (_container.IsEntityInContainer(entity))
+                if (!bodyQuery.TryGetComponent(entity, out var physics) ||
+                    physics.BodyType == BodyType.Static ||
+                    physics.BodyStatus == BodyStatus.InAir ||
+                    _gravity.IsWeightless(entity, physics, entityXform))
                 {
                     continue;
                 }
 
                 // Yes there's still going to be the occasional rounding issue where it stops getting conveyed
                 // When you fix the corner issue that will fix this anyway.
-                var transform = Transform(entity);
-                var gridPos = gridMatrix.Transform(transform.WorldPosition);
-                var gridAABB = new Box2(gridPos - 0.1f, gridPos + 0.1f);
+                var gridAABB = new Box2(entityXform.LocalPosition - 0.1f, entityXform.LocalPosition + 0.1f);
 
-                if (!tileAABB.Intersects(gridAABB)) continue;
+                if (!conveyorBounds.Intersects(gridAABB))
+                    continue;
 
-                yield return (entity, transform);
+                yield return (entity, entityXform, physics);
             }
         }
     }
diff --git a/Resources/Prototypes/Entities/Structures/conveyor.yml b/Resources/Prototypes/Entities/Structures/conveyor.yml
index b62236ca4f..b8c1ef18df 100644
--- a/Resources/Prototypes/Entities/Structures/conveyor.yml
+++ b/Resources/Prototypes/Entities/Structures/conveyor.yml
@@ -18,6 +18,9 @@
     drawdepth: FloorObjects
   - type: ApcPowerReceiver
   - type: ExtensionCableReceiver
+  - type: Physics
+    bodyType: Static
+  - type: Fixtures
   - type: Conveyor
   - type: Appearance
   - type: GenericVisualizer