diff --git a/pkg/channeld/event.go b/pkg/channeld/event.go
index 4d6ec37..c7a916c 100644
--- a/pkg/channeld/event.go
+++ b/pkg/channeld/event.go
@@ -23,6 +23,13 @@ var Event_AuthComplete = &Event[AuthEventData]{}
 
 var Event_FsmDisallowed = &Event[*Connection]{}
 
+type EntityChannelSpatiallyOwnedEventData struct {
+	EntityChannel *Channel
+	SpatialChanel *Channel
+}
+
+var Event_EntityChannelSpatiallyOwned = &Event[EntityChannelSpatiallyOwnedEventData]{}
+
 type EventData interface {
 }
 
diff --git a/pkg/channeld/message_spatial.go b/pkg/channeld/message_spatial.go
index 9038747..9298a09 100644
--- a/pkg/channeld/message_spatial.go
+++ b/pkg/channeld/message_spatial.go
@@ -225,6 +225,46 @@ func handleCreateEntityChannel(ctx MessageContext) {
 			newChannel.Logger().Error("failed to unmarshal data message for the new channel", zap.Error(err))
 		} else {
 			newChannel.InitData(dataMsg, msg.MergeOptions)
+
+			// If the entity channel is created from GLOBAL channel(master server), but its data contains spatial info,
+			// we should set the owner of the entity channel to the spatial channel's.
+			if ctx.Channel == globalChannel {
+				dataMsgWithSpatialInfo, ok := dataMsg.(EntityChannelDataWithSpatialInfo)
+				if ok {
+					spatialInfo := dataMsgWithSpatialInfo.GetSpatialInfo()
+					if spatialInfo != nil {
+						spatialChId, err := spatialController.GetChannelId(*spatialInfo)
+						if err != nil {
+							ctx.Connection.Logger().Error("failed to set the entity channel owner to the spatial channel's", zap.Error(err))
+						} else {
+							spatialCh := GetChannel(spatialChId)
+							if spatialCh == nil {
+								newChannel.Logger().Error("failed to set the entity channel owner as the spatial channel does not exist",
+									zap.Uint32("spatialChId", uint32(spatialChId)))
+							} else {
+								ownerConn := spatialCh.GetOwner()
+								if ownerConn != nil && !ownerConn.IsClosing() {
+									newChannel.SetOwner(ownerConn)
+									newChannel.Logger().Info("set the entity channel owner to the spatial channel's",
+										zap.Uint32("spatialChId", uint32(spatialChId)))
+
+									Event_EntityChannelSpatiallyOwned.Broadcast(EntityChannelSpatiallyOwnedEventData{newChannel, spatialCh})
+
+									// Sub-and-send happens at the end of this function
+
+									// Set the messge context so that the CreateChannelResultMessage will be sent to the owner
+									// instead of the message sender (the master server).
+									ctx.Connection = ownerConn
+									ctx.ChannelId = uint32(spatialChId)
+								} else {
+									newChannel.Logger().Warn("the entity's owning spatial channel does not have an owner connection",
+										zap.Uint32("spatialChId", uint32(spatialChId)))
+								}
+							}
+						}
+					}
+				}
+			}
 		}
 	} else {
 		// Channel data should always be initialized
diff --git a/pkg/channeld/spatial.go b/pkg/channeld/spatial.go
index 68b9d6e..17fe2ee 100644
--- a/pkg/channeld/spatial.go
+++ b/pkg/channeld/spatial.go
@@ -380,6 +380,10 @@ func (ctl *StaticGrid2DSpatialController) GetAdjacentChannels(spatialChannelId c
 	return channelIds, nil
 }
 
+type EntityChannelDataWithSpatialInfo interface {
+	GetSpatialInfo() *common.SpatialInfo
+}
+
 func (ctl *StaticGrid2DSpatialController) CreateChannels(ctx MessageContext) ([]*Channel, error) {
 	ctl.initServerConnections()
 	serverIndex := ctl.nextServerIndex()
@@ -461,6 +465,14 @@ func (ctl *StaticGrid2DSpatialController) CreateChannels(ctx MessageContext) ([]
 				Msg:     readyMsg,
 			})
 		}
+
+		// ...and the master server too.
+		if globalChannel.ownerConnection != nil {
+			globalChannel.ownerConnection.Send(MessageContext{
+				MsgType: channeldpb.MessageType_SPATIAL_CHANNELS_READY,
+				Msg:     readyMsg,
+			})
+		}
 	}
 
 	return channels, nil
diff --git a/pkg/unreal/message.go b/pkg/unreal/message.go
index b446d06..da4a709 100644
--- a/pkg/unreal/message.go
+++ b/pkg/unreal/message.go
@@ -12,6 +12,8 @@ import (
 func InitMessageHandlers() {
 	channeld.RegisterMessageHandler(uint32(unrealpb.MessageType_SPAWN), &channeldpb.ServerForwardMessage{}, handleUnrealSpawnObject)
 	channeld.RegisterMessageHandler(uint32(unrealpb.MessageType_DESTROY), &channeldpb.ServerForwardMessage{}, handleUnrealDestroyObject)
+
+	channeld.Event_EntityChannelSpatiallyOwned.Listen(handleEntityChannelSpatiallyOwned)
 }
 
 // Executed in the spatial channels or the GLOBAL channel (no-spatial scenario)
@@ -49,12 +51,7 @@ func handleUnrealSpawnObject(ctx channeld.MessageContext) {
 	// Update the message's spatial channelId based on the actor's location
 	oldChId := *spawnMsg.ChannelId
 	if spawnMsg.Location != nil {
-		// Swap the Y and Z as UE uses the Z-Up rule but channeld uses the Y-up rule.
-		spatialChId, err := channeld.GetSpatialController().GetChannelId(common.SpatialInfo{
-			X: float64(*spawnMsg.Location.X),
-			Y: float64(*spawnMsg.Location.Z),
-			Z: float64(*spawnMsg.Location.Y),
-		})
+		spatialChId, err := channeld.GetSpatialController().GetChannelId(*spawnMsg.Location.ToSpatialInfo())
 		if err != nil {
 			ctx.Connection.Logger().Warn("failed to GetChannelId", zap.Error(err),
 				zap.Float32("x", *spawnMsg.Location.X),
@@ -121,6 +118,8 @@ type UnrealObjectEntityData interface {
 	SetObjRef(objRef *unrealpb.UnrealObjectRef)
 }
 
+// Add the SpatialEntityState to the spatial channel data. If an entity doesn't exist in the spatial channel data,
+// handover will not work properly.
 func addSpatialEntity(ch *channeld.Channel, objRef *unrealpb.UnrealObjectRef) {
 	if ch.Type() != channeldpb.ChannelType_SPATIAL {
 		return
@@ -188,3 +187,15 @@ func handleUnrealDestroyObject(ctx channeld.MessageContext) {
 		channeld.RemoveChannel(entityCh)
 	}
 }
+
+func handleEntityChannelSpatiallyOwned(data channeld.EntityChannelSpatiallyOwnedEventData) {
+	dataMsgWithObjRef, ok := data.EntityChannel.GetDataMessage().(unrealpb.EntityChannelDataWithObjRef)
+	if !ok {
+		data.EntityChannel.Logger().Error("spatial-owned entity channel data doesn't implement EntityChannelDataWithObjRef")
+		return
+	}
+
+	data.SpatialChanel.Execute(func(ch *channeld.Channel) {
+		addSpatialEntity(ch, dataMsgWithObjRef.GetObjRef())
+	})
+}
diff --git a/pkg/unrealpb/extension.go b/pkg/unrealpb/extension.go
index 465b3a1..c2272f4 100644
--- a/pkg/unrealpb/extension.go
+++ b/pkg/unrealpb/extension.go
@@ -8,6 +8,21 @@ import (
 	"github.com/metaworking/channeld/pkg/common"
 )
 
+func (vec *FVector) ToSpatialInfo() *common.SpatialInfo {
+	info := &common.SpatialInfo{}
+	if vec.X != nil {
+		info.X = float64(*vec.X)
+	}
+	// Swap the Y and Z as UE uses the Z-Up rule but channeld uses the Y-up rule.
+	if vec.Y != nil {
+		info.Z = float64(*vec.Y)
+	}
+	if vec.Z != nil {
+		info.Y = float64(*vec.Z)
+	}
+	return info
+}
+
 // Implement [channeld.HandoverDataWithPayload]
 func (data *HandoverData) ClearPayload() {
 	data.ChannelData = nil
diff --git a/pkg/unrealpb/unreal_common.proto b/pkg/unrealpb/unreal_common.proto
index e9c1353..2900458 100644
--- a/pkg/unrealpb/unreal_common.proto
+++ b/pkg/unrealpb/unreal_common.proto
@@ -110,7 +110,7 @@ message HandoverContext {
 }
 
 // Wrapped in ChannelDataHandoverMessage.data
-// Implements [channeld.HandoverDataPayload]
+// Implements [channeld.HandoverDataWithPayload]
 message HandoverData {
     repeated HandoverContext context = 1;
     // The channel data message that will be handed over to the destination channel.