diff --git a/Assets/Tests/InputSystem/Plugins/OnScreenTests.cs b/Assets/Tests/InputSystem/Plugins/OnScreenTests.cs
index c25675a958..43a53315f3 100644
--- a/Assets/Tests/InputSystem/Plugins/OnScreenTests.cs
+++ b/Assets/Tests/InputSystem/Plugins/OnScreenTests.cs
@@ -582,6 +582,40 @@ public IEnumerator Devices_OnScreenStickDoesNotReceivePointerUpEventsInIsolatedM
         Assert.That(stick.gameObject.GetComponent<RectTransform>().anchoredPosition, Is.Not.EqualTo(stickOriginPosition));
     }
 
+    [UnityTest]
+    [Category("Devices")]
+    public IEnumerator OnScreenStick_IsolateMode_ShouldCastRayToChild()
+    {
+        InputSystem.AddDevice<Touchscreen>();
+
+        var uiTestScene = new UITestScene(this);
+
+        var stickRect = uiTestScene.AddImage("StickParent");
+        var stick = stickRect.gameObject.AddComponent<OnScreenStick>();
+        stick.controlPath = "<Gamepad>/leftStick";
+        stick.useIsolatedInputActions = true;
+
+        var childGO = new GameObject("StickImage", typeof(RectTransform), typeof(Image));
+        var childRect = childGO.GetComponent<RectTransform>();
+        childRect.SetParent(stickRect, worldPositionStays: false);
+        childRect.anchorMin = Vector2.zero;
+        childRect.anchorMax = Vector2.one;
+        childRect.sizeDelta = Vector2.zero;
+        childGO.GetComponent<Image>().raycastTarget = true;
+
+        var stickOriginPosition = stickRect.anchoredPosition;
+
+        // Ensure that the OnScreenStick component has been started.
+        yield return null;
+
+        yield return uiTestScene.PressAndDrag(childRect, new Vector2(50, 0));
+
+        // Allow one more frame for queued events to be processed.
+        yield return null;
+
+        Assert.That(stickRect.anchoredPosition, Is.Not.EqualTo(stickOriginPosition));
+    }
+
     // https://fogbugz.unity3d.com/f/cases/1305016/
     [Test]
     [Category("Devices")]
diff --git a/Packages/com.unity.inputsystem/CHANGELOG.md b/Packages/com.unity.inputsystem/CHANGELOG.md
index fb7dbba1bb..28fe13d605 100644
--- a/Packages/com.unity.inputsystem/CHANGELOG.md
+++ b/Packages/com.unity.inputsystem/CHANGELOG.md
@@ -21,6 +21,7 @@ however, it has to be formatted properly to pass verification tests.
 - Align title font size with toolbar style in `Input Action` window.
 - Updated Action Properties headers to use colors consistent with GameObject component headers.
 - Fixed misaligned Virtual Cursor when changing resolution [ISXB-1119](https://issuetracker.unity3d.com/product/unity/issues/guid/ISXB-1119)
+- Fixed OnScreenStick ignoring dynamic-origin presses when isolated input actions were enabled. [ISXB-1027](https://issuetracker.unity3d.com/product/unity/issues/guid/ISXB-1027)
 
 ### Added
 
diff --git a/Packages/com.unity.inputsystem/InputSystem/Plugins/OnScreen/OnScreenStick.cs b/Packages/com.unity.inputsystem/InputSystem/Plugins/OnScreen/OnScreenStick.cs
index 25920c27c2..7767c76b5c 100644
--- a/Packages/com.unity.inputsystem/InputSystem/Plugins/OnScreen/OnScreenStick.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/Plugins/OnScreen/OnScreenStick.cs
@@ -252,7 +252,7 @@ private void OnPointerDown(InputAction.CallbackContext ctx)
             var stickSelected = false;
             foreach (var result in m_RaycastResults)
             {
-                if (result.gameObject != gameObject) continue;
+                if (!result.gameObject.transform.IsChildOf(transform)) continue;
 
                 stickSelected = true;
                 break;