diff --git a/crates/bevy_debug_draw/src/debuglines.wgsl b/crates/bevy_debug_draw/src/debuglines.wgsl
index 668e5dfad8a0f5..df399957e19a80 100644
--- a/crates/bevy_debug_draw/src/debuglines.wgsl
+++ b/crates/bevy_debug_draw/src/debuglines.wgsl
@@ -33,7 +33,7 @@ fn vertex(in: VertexInput) -> VertexOutput {
 fn fragment(in: VertexOutput) -> FragmentOutput {
     var out: FragmentOutput;
 
-#ifdef DEPTH_TEST_ENABLED
+#ifdef DEPTH_TEST
     out.depth = in.pos.z;
 #else
     out.depth = 1.0;
diff --git a/crates/bevy_debug_draw/src/lib.rs b/crates/bevy_debug_draw/src/lib.rs
index 1cbcb7dc89e09c..23bce0baf689c8 100644
--- a/crates/bevy_debug_draw/src/lib.rs
+++ b/crates/bevy_debug_draw/src/lib.rs
@@ -45,7 +45,7 @@ impl Plugin for DebugDrawPlugin {
 
         app.init_resource::<DebugDraw>()
             .init_resource::<DebugDrawConfig>()
-            .add_system_to_stage(CoreStage::PostUpdate, update)
+            .add_system_to_stage(CoreStage::Last, update)
             .sub_app_mut(RenderApp)
             .add_system_to_stage(RenderStage::Extract, extract);
 
@@ -82,6 +82,8 @@ pub struct DebugDrawConfig {
     /// Defaults to `true`.
     pub enabled: bool,
     /// Whether debug drawing should ignore depth and draw on top of everything else.
+    /// 
+    /// This setting only affects 3D. In 2D, debug drawing is always on top.
     ///
     /// Defaults to `true`.
     pub always_on_top: bool,
diff --git a/crates/bevy_debug_draw/src/pipeline_2d.rs b/crates/bevy_debug_draw/src/pipeline_2d.rs
index 3da36f093e80bc..f3c4ac23337996 100644
--- a/crates/bevy_debug_draw/src/pipeline_2d.rs
+++ b/crates/bevy_debug_draw/src/pipeline_2d.rs
@@ -16,7 +16,7 @@ use bevy_render::{
 use bevy_sprite::*;
 use bevy_utils::FloatOrd;
 
-use crate::{DebugDrawConfig, DebugDrawMesh, SHADER_HANDLE};
+use crate::{DebugDrawMesh, SHADER_HANDLE};
 
 #[derive(Resource)]
 pub(crate) struct DebugLinePipeline {
@@ -93,14 +93,13 @@ pub(crate) type DrawDebugLines = (
 
 #[allow(clippy::too_many_arguments)]
 pub(crate) fn queue(
-    config: Res<DebugDrawConfig>,
     draw2d_functions: Res<DrawFunctions<Transparent2d>>,
     debug_line_pipeline: Res<DebugLinePipeline>,
     mut pipeline_cache: ResMut<PipelineCache>,
     mut specialized_pipelines: ResMut<SpecializedMeshPipelines<DebugLinePipeline>>,
     render_meshes: Res<RenderAssets<Mesh>>,
     msaa: Res<Msaa>,
-    material_meshes: Query<(&Mesh2dUniform, &Mesh2dHandle), With<DebugDrawMesh>>,
+    material_meshes: Query<&Mesh2dHandle, With<DebugDrawMesh>>,
     mut views: Query<(&VisibleEntities, &mut RenderPhase<Transparent2d>)>,
 ) {
     for (view, mut phase) in &mut views {
@@ -108,32 +107,26 @@ pub(crate) fn queue(
         let msaa_key = Mesh2dPipelineKey::from_msaa_samples(msaa.samples);
 
         for visible_entity in &view.entities {
-            if let Ok((uniform, mesh_handle)) = material_meshes.get(*visible_entity) {
-                if let Some(mesh) = render_meshes.get(&mesh_handle.0) {
-                    let mesh_key = msaa_key
-                        | Mesh2dPipelineKey::from_primitive_topology(PrimitiveTopology::LineList);
-                    let mesh_z = if config.always_on_top {
-                        f32::MAX
-                    } else {
-                        uniform.transform.w_axis.z
-                    };
-                    let pipeline = specialized_pipelines
-                        .specialize(
-                            &mut pipeline_cache,
-                            &debug_line_pipeline,
-                            mesh_key,
-                            &mesh.layout,
-                        )
-                        .unwrap();
-                    phase.add(Transparent2d {
-                        entity: *visible_entity,
-                        draw_function: draw_mesh2d,
-                        pipeline,
-                        sort_key: FloatOrd(mesh_z),
-                        batch_range: None,
-                    });
-                }
-            }
+            let Ok(mesh_handle) = material_meshes.get(*visible_entity) else { continue; };
+            let Some(mesh) = render_meshes.get(&mesh_handle.0) else { continue; };
+
+            let mesh_key =
+                msaa_key | Mesh2dPipelineKey::from_primitive_topology(PrimitiveTopology::LineList);
+            let pipeline = specialized_pipelines
+                .specialize(
+                    &mut pipeline_cache,
+                    &debug_line_pipeline,
+                    mesh_key,
+                    &mesh.layout,
+                )
+                .unwrap();
+            phase.add(Transparent2d {
+                entity: *visible_entity,
+                draw_function: draw_mesh2d,
+                pipeline,
+                sort_key: FloatOrd(f32::MAX),
+                batch_range: None,
+            });
         }
     }
 }
diff --git a/crates/bevy_debug_draw/src/pipeline_3d.rs b/crates/bevy_debug_draw/src/pipeline_3d.rs
index 0b4eba26a0baca..25d7bbb21ba3c3 100644
--- a/crates/bevy_debug_draw/src/pipeline_3d.rs
+++ b/crates/bevy_debug_draw/src/pipeline_3d.rs
@@ -45,7 +45,7 @@ impl SpecializedMeshPipeline for DebugLinePipeline {
         let mut shader_defs = Vec::new();
         shader_defs.push("DEBUG_LINES_3D".to_string());
         if depth_test {
-            shader_defs.push("DEPTH_TEST_ENABLED".to_string());
+            shader_defs.push("DEPTH_TEST".to_string());
         }
 
         let vertex_buffer_layout = layout.get_layout(&[