diff --git a/src/main/java/net/minestom/server/listener/UseEntityListener.java b/src/main/java/net/minestom/server/listener/UseEntityListener.java
index 246844963..819c32ca2 100644
--- a/src/main/java/net/minestom/server/listener/UseEntityListener.java
+++ b/src/main/java/net/minestom/server/listener/UseEntityListener.java
@@ -1,7 +1,9 @@
 package net.minestom.server.listener;
 
 import net.minestom.server.ServerFlag;
+import net.minestom.server.collision.BoundingBox;
 import net.minestom.server.coordinate.Point;
+import net.minestom.server.coordinate.Pos;
 import net.minestom.server.coordinate.Vec;
 import net.minestom.server.entity.Entity;
 import net.minestom.server.entity.LivingEntity;
@@ -20,8 +22,11 @@ public class UseEntityListener {
             return;
 
         if (ServerFlag.ENFORCE_INTERACTION_LIMIT) {
-            double range = Math.pow(player.getAttributeValue(Attribute.ENTITY_INTERACTION_RANGE) + 1, 2); // Add 1 additional block for people with less than stellar ping
-            if (player.getDistanceSquared(entity) > range) {
+            final double maxDistanceSquared = Math.pow(player.getAttributeValue(Attribute.ENTITY_INTERACTION_RANGE) + 1, 2);
+
+            final double distSquared = getDistSquared(player, entity);
+
+            if (distSquared > maxDistanceSquared) {
                 return;
             }
         }
@@ -36,4 +41,33 @@ public class UseEntityListener {
             EventDispatcher.call(new PlayerEntityInteractEvent(player, entity, interactAt.hand(), interactPosition));
         }
     }
-}
+
+    private static double getDistSquared(Player player, Entity entity) {
+        final Pos playerPos = player.getPosition();
+        final double eyeHeight = player.getEyeHeight();
+        final double px = playerPos.x();
+        final double py = playerPos.y() + eyeHeight;
+        final double pz = playerPos.z();
+
+        final BoundingBox box = entity.getBoundingBox();
+        final double halfWidth = box.width() / 2;
+        final double height = box.height();
+        final Pos entityPos = entity.getPosition();
+
+        final double minX = entityPos.x() - halfWidth;
+        final double maxX = entityPos.x() + halfWidth;
+        final double minY = entityPos.y();
+        final double maxY = entityPos.y() + height;
+        final double minZ = entityPos.z() - halfWidth;
+        final double maxZ = entityPos.z() + halfWidth;
+
+        final double clampX = Math.max(minX, Math.min(px, maxX));
+        final double clampY = Math.max(minY, Math.min(py, maxY));
+        final double clampZ = Math.max(minZ, Math.min(pz, maxZ));
+
+        final double dx = px - clampX;
+        final double dy = py - clampY;
+        final double dz = pz - clampZ;
+        return dx * dx + dy * dy + dz * dz;
+    }
+}
\ No newline at end of file
diff --git a/src/test/java/net/minestom/server/listener/UseEntityListenerTest.java b/src/test/java/net/minestom/server/listener/UseEntityListenerTest.java
new file mode 100644
index 000000000..8ddebdeb3
--- /dev/null
+++ b/src/test/java/net/minestom/server/listener/UseEntityListenerTest.java
@@ -0,0 +1,106 @@
+package net.minestom.server.listener;
+
+import net.minestom.server.coordinate.Pos;
+import net.minestom.server.entity.Entity;
+import net.minestom.server.entity.EntityType;
+import net.minestom.server.entity.Player;
+import net.minestom.server.entity.PlayerHand;
+import net.minestom.server.entity.attribute.Attribute;
+import net.minestom.server.event.player.PlayerEntityInteractEvent;
+import net.minestom.server.instance.Instance;
+import net.minestom.server.network.packet.client.play.ClientInteractEntityPacket;
+import net.minestom.testing.Env;
+import net.minestom.testing.EnvTest;
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+
+import static org.junit.jupiter.api.Assertions.*;
+
+@EnvTest
+public class UseEntityListenerTest {
+
+    private Player player;
+    private Entity targetEntity;
+    private boolean eventWasCalled;
+
+    @BeforeEach
+    public void setup(Env env) {
+        Instance instance = env.createFlatInstance();
+
+        player = env.createPlayer(instance, new Pos(0, 0, 0));
+        player.getAttribute(Attribute.ENTITY_INTERACTION_RANGE).setBaseValue(5.0);
+
+        targetEntity = new Entity(EntityType.SLIME);
+        targetEntity.setInstance(instance, new Pos(2, 0, 2)).join();
+
+        eventWasCalled = false;
+
+        player.eventNode().addListener(PlayerEntityInteractEvent.class, event -> {
+            if (event.getPlayer().equals(player) && event.getTarget().equals(targetEntity)) {
+                eventWasCalled = true;
+            }
+        });
+    }
+
+    @Test
+    public void testInteractionWithinRange() {
+        ClientInteractEntityPacket packet = new ClientInteractEntityPacket(
+                targetEntity.getEntityId(),
+                new ClientInteractEntityPacket.InteractAt(0, 0, 0, PlayerHand.MAIN),
+                false
+        );
+
+        UseEntityListener.useEntityListener(packet, player);
+        assertTrue(eventWasCalled, "Expected PlayerEntityInteractEvent to be called for nearby target");
+    }
+
+    @Test
+    public void testInteractionOutOfRange() {
+        player.getAttribute(Attribute.ENTITY_INTERACTION_RANGE).setBaseValue(1.0);
+
+        targetEntity.teleport(new Pos(10, 0, 10)).join();
+        ClientInteractEntityPacket packet = new ClientInteractEntityPacket(
+                targetEntity.getEntityId(),
+                new ClientInteractEntityPacket.InteractAt(0, 0, 0, PlayerHand.MAIN),
+                false
+        );
+
+        eventWasCalled = false;
+        UseEntityListener.useEntityListener(packet, player);
+        assertFalse(eventWasCalled, "Expected PlayerEntityInteractEvent NOT to be called for out-of-range target");
+    }
+
+    @Test
+    public void testInteractionConsideringHitboxAndEyePosition() {
+        player.getAttribute(Attribute.ENTITY_INTERACTION_RANGE).setBaseValue(1.5);
+
+        targetEntity.teleport(new Pos(1.6, 0, 0)).join();
+
+        ClientInteractEntityPacket packet = new ClientInteractEntityPacket(
+                targetEntity.getEntityId(),
+                new ClientInteractEntityPacket.InteractAt(0, 0, 0, PlayerHand.MAIN),
+                false
+        );
+
+        eventWasCalled = false;
+        UseEntityListener.useEntityListener(packet, player);
+        assertTrue(eventWasCalled, "Expected PlayerEntityInteractEvent to be called considering hitbox size and eye position");
+    }
+
+
+    @Test
+    public void testInteractionConsideringEyeHeight() {
+        player.teleport(new Pos(0, 1.6, 0)).join();
+        targetEntity.teleport(new Pos(0, 1.6, 2)).join();
+
+        ClientInteractEntityPacket packet = new ClientInteractEntityPacket(
+                targetEntity.getEntityId(),
+                new ClientInteractEntityPacket.InteractAt(0, 0, 0, PlayerHand.MAIN),
+                false
+        );
+
+        eventWasCalled = false;
+        UseEntityListener.useEntityListener(packet, player);
+        assertTrue(eventWasCalled, "Expected PlayerEntityInteractEvent to be called considering eye height");
+    }
+}