diff --git a/com.unity.netcode.gameobjects/Documentation~/ghostobjects.md b/com.unity.netcode.gameobjects/Documentation~/ghostobjects.md
index 5e135b699a..333d3e6f8d 100644
--- a/com.unity.netcode.gameobjects/Documentation~/ghostobjects.md
+++ b/com.unity.netcode.gameobjects/Documentation~/ghostobjects.md
@@ -19,7 +19,7 @@ A hybrid object synchronizes its data through two separate systems:
 
 Because Netcode for GameObjects data isn't part of the snapshot, Unity Netcode doesn't roll back or replay `NetworkVariable`s, RPCs, or spawn data as part of its prediction loop. To use prediction on a hybrid object, write your prediction code in `GhostBehaviour`s. Prediction code in `GhostBehaviour`s on hybrid objects works the same way as on any other GhostObject.
 
-When you convert a NetworkObject into a hybrid object, Netcode for GameObjects sets the GhostObject's supported ghost modes to interpolated only. To use prediction, change the `SupportedGhostModes` and `DefaultGhostMode` settings on the **GhostObject** component to include a predicted mode. For more information about ghost modes, refer to the [Unity Netcode documentation](https://docs.unity3d.com/Packages/com.unity.netcode@latest).
+When you convert a NetworkObject into a hybrid object, Netcode for GameObjects doesn't change the GhostObject's ghost mode settings. By default, a GhostObject spawns interpolated and supports all ghost modes. To use prediction, set `DefaultGhostMode` on the **GhostObject** component to a predicted mode. To reduce bandwidth, limit `SupportedGhostModes` to the modes the object uses. For more information about ghost modes, refer to the [Unity Netcode documentation](https://docs.unity3d.com/Packages/com.unity.netcode@latest).
 
 ### Effect on existing transform and physics components
 
diff --git a/com.unity.netcode.gameobjects/Editor/NetworkObjectEditor.cs b/com.unity.netcode.gameobjects/Editor/NetworkObjectEditor.cs
index 312e875850..256baa72c6 100644
--- a/com.unity.netcode.gameobjects/Editor/NetworkObjectEditor.cs
+++ b/com.unity.netcode.gameobjects/Editor/NetworkObjectEditor.cs
@@ -1,7 +1,4 @@
 using System.Collections.Generic;
-#if UNIFIED_NETCODE
-using Unity.Netcode.Editor;
-#endif
 using UnityEditor;
 using UnityEngine;
 using UnityEngine.Scripting.APIUpdating;
@@ -25,34 +22,6 @@ public class NetworkObjectEditor : UnityEditor.Editor
 
         private static readonly string[] k_HiddenFields = { "m_Script" };
 
-#if UNIFIED_NETCODE
-        /// <summary>
-        /// Register for the GhostObject removal event.
-        /// </summary>
-        [InitializeOnLoadMethod]
-        private static void OnApplicationStart()
-        {
-            GhostObjectEditor.OnGhostObjectPreRemoval = OnGhostObjectPreRemoval;
-        }
-
-        /// <summary>
-        /// Callback to remove the GhostBehaviours prior to removing GhostObject.
-        /// </summary>
-        /// <param name="gameObject">The <see cref="GameObject"/> with the <see cref="GhostObject"/> component being removed.</param>
-        private static void OnGhostObjectPreRemoval(GameObject gameObject)
-        {
-            var ghostBehaviours = gameObject.GetComponentsInChildren<GhostBehaviour>();
-            for (int i = ghostBehaviours.Length - 1; i >= 0; i--)
-            {
-                DestroyImmediate(ghostBehaviours[i], true);
-            }
-            var networkObject = gameObject.GetComponent<NetworkObject>();
-            networkObject.GhostObject = null;
-            networkObject.HasGhost = false;
-            networkObject.HadBridge = true;
-        }
-#endif
-
         private void Initialize()
         {
             if (m_Initialized)
diff --git a/com.unity.netcode.gameobjects/Runtime/Components/Helpers/NetworkObjectBridge.cs b/com.unity.netcode.gameobjects/Runtime/Components/Helpers/NetworkObjectBridge.cs
index 601c0f1b34..e54543af5d 100644
--- a/com.unity.netcode.gameobjects/Runtime/Components/Helpers/NetworkObjectBridge.cs
+++ b/com.unity.netcode.gameobjects/Runtime/Components/Helpers/NetworkObjectBridge.cs
@@ -1,6 +1,9 @@
 #if UNIFIED_NETCODE
 using Unity.Mathematics;
 using Unity.Transforms;
+#if UNITY_EDITOR
+using UnityEditor;
+#endif
 using UnityEngine;
 
 namespace Unity.Netcode
@@ -15,18 +18,6 @@ namespace Unity.Netcode
     internal partial class NetworkObjectBridge : GhostBehaviour
     {
 #if UNITY_EDITOR
-        private void Reset()
-        {
-            // Start users with just interpolation (they can adjust this if they want prediction)
-            // to make the initial transition less problematic for users.
-            // Only set when the bridge is first added, so a user's prediction setting is kept.
-            var ghostAdapter = GetComponent<GhostObject>();
-            if (ghostAdapter != null)
-            {
-                ghostAdapter.SupportedGhostModes = GhostModeMask.Interpolated;
-            }
-        }
-
         private void OnValidate()
         {
             hideFlags = HideFlags.HideInInspector;
@@ -37,29 +28,23 @@ private void OnValidate()
                 return;
             }
 
-            // NGO spawns the ghost when the NetworkObject spawns. This assures the ghost spawns in that NetworkManager's world.
-            ghostAdapter.DelaySpawning = true;
-
-#if COM_UNITY_MODULES_PHYSICS
-            var rigidBody = GetComponent<Rigidbody>();
-            var ghostRigidBody = GetComponent<GhostRigidbody>();
-            if (rigidBody != null)
+            var networkObject = GetComponent<NetworkObject>();
+            if (networkObject == null)
             {
-                // This must be enabled when replicating the rigid body.
-
-                ghostAdapter.SingleWorldHostInterpolationSmoothing = SingleWorldHostInterpolationMode.Interpolate;
-                // TODO: Currently, this is added only if you enable replication of the rigid body.
-                // There is a bug where if you don't add this component it doesn't synchronize the transform.
-                // Remove this once the issue is resolved.
-                if (ghostRigidBody == null)
+                // Check again once the current operation finishes, since a script can add the bridge before the NetworkObject.
+                EditorApplication.delayCall += () =>
                 {
-                    gameObject.AddComponent<GhostRigidbody>();
-                }
+                    if (this != null && GetComponent<NetworkObject>() == null)
+                    {
+                        DestroyImmediate(this, true);
+                    }
+                };
+            }
+            else
+            {
+                // NGO spawns the ghost when the NetworkObject spawns. This assures the ghost spawns in that NetworkManager's world.
+                ghostAdapter.DelaySpawning = true;
             }
-#endif
-#if COM_UNITY_MODULES_PHYSICS2D
-            // TODO: Fill out a similar script as above but for the 2D version
-#endif
         }
 #endif
 
@@ -79,17 +64,12 @@ private void OnValidate()
         /// instance's entity's PostTransformMatrix.</param>
         internal void HybridParentUpdate(Vector3 scale)
         {
-            var current = Ghost.GetPositionAndRotation();
+            //var current = Ghost.GetPositionAndRotation();
             //Debug.Log($"---- Current LT: {current.Position} | {current.Rotation.eulerAngles}");
             //Debug.Log($"---- New LT: {transform.localPosition} | {transform.localRotation}");
             Ghost.ApplyPostTransformMatrixScale(scale);
         }
 
-        internal void ApplyScale(Vector3 scale)
-        {
-            Ghost.ApplyPostTransformMatrixScale(scale);
-        }
-
         /// <summary>
         /// Keeps the ghost's owner in step with the <see cref="NetworkObject"/> owner, so an owner-predicted
         /// ghost is predicted by the NGO owner.
diff --git a/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs b/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs
index f5f90c0a39..96e765f86d 100644
--- a/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs
+++ b/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs
@@ -369,14 +369,57 @@ private void CheckForInScenePlaced()
         [SerializeField]
         internal bool HadBridge;
 #if UNITY_EDITOR
-        private void OnApplicationUpdate()
+        // The update callbacks unsubscribe first so one whose NetworkObject was destroyed doesn't throw every frame.
+        private void OnAddNetworkObjectBridge()
         {
+            EditorApplication.update -= OnAddNetworkObjectBridge;
+            if (this == null)
+            {
+                return;
+            }
             NetworkObjectBridge = gameObject.AddComponent<NetworkObjectBridge>();
             HadBridge = true;
             // Transform synchronization is handled by unified netcode
             SynchronizeTransform = false;
+        }
+
+        private void OnRemoveNetworkObjectBridge()
+        {
+            EditorApplication.update -= OnRemoveNetworkObjectBridge;
+            if (this == null)
+            {
+                return;
+            }
+            var networkObjectBridge = gameObject.GetComponent<NetworkObjectBridge>();
+            if (networkObjectBridge != null)
+            {
+                DestroyImmediate(networkObjectBridge, true);
+            }
+            var ghostRigidbodies = gameObject.GetComponentsInChildren<GhostRigidbody>(true);
+            for (int i = 0; i < ghostRigidbodies.Length; i++)
+            {
+                DestroyImmediate(ghostRigidbodies[i], true);
+            }
 
-            EditorApplication.update -= OnApplicationUpdate;
+            NetworkObjectBridge = null;
+            HadBridge = false;
+            HasGhost = false;
+
+            // NGO synchronizes the transform again once the prefab is no longer hybrid
+            SynchronizeTransform = true;
+        }
+
+        private void OnRemoveGhostObject()
+        {
+            EditorApplication.update -= OnRemoveGhostObject;
+            if (this == null)
+            {
+                return;
+            }
+            OnRemoveNetworkObjectBridge();
+            DestroyImmediate(GhostObject);
+            GhostObject = null;
+            HasGhost = false;
         }
 
         internal void UnifiedValidation()
@@ -390,22 +433,29 @@ internal void UnifiedValidation()
                 //TODO: Needs to be validated once develop-2.0.0 is merged.
                 if (InScenePlaced)
                 {
-                    Debug.LogError($"This experimental version of NGO does not support hybrid in-scene placed objects.");
-                    Destroy(GhostObject);
-                    HasGhost = false;
+                    Debug.LogError($"In-scene placed Hybrid instances are not allowed.");
+                    EditorApplication.update -= OnRemoveGhostObject;
+                    EditorApplication.update += OnRemoveGhostObject;
                     return;
                 }
-
-                if (NetworkObjectBridge == null)
+                else if (NetworkObjectBridge == null)
                 {
-                    EditorApplication.update -= OnApplicationUpdate;
-                    EditorApplication.update += OnApplicationUpdate;
+                    EditorApplication.update -= OnAddNetworkObjectBridge;
+                    EditorApplication.update += OnAddNetworkObjectBridge;
                 }
             }
-            else if (HadBridge && !HasGhost && !NetworkObjectBridge)
+            else if (HadBridge && !HasGhost)
             {
-                HadBridge = false;
-                SynchronizeTransform = true;
+                if (NetworkObjectBridge != null)
+                {
+                    EditorApplication.update -= OnRemoveNetworkObjectBridge;
+                    EditorApplication.update += OnRemoveNetworkObjectBridge;
+                }
+                else
+                {
+                    HadBridge = false;
+                    SynchronizeTransform = true;
+                }
             }
         }
 #endif