diff --git a/examples/files.json b/examples/files.json
index 1f571ae8bd4688..dbcc3d4b3ad00d 100644
--- a/examples/files.json
+++ b/examples/files.json
@@ -8,6 +8,7 @@
 		"webgl_animation_multiple",
 		"webgl_animation_walk",
 		"webgl_batch_lod_bvh",
+		"webgl_batch_lod_merged",
 		"webgl_camera",
 		"webgl_camera_array",
 		"webgl_camera_logarithmicdepthbuffer",
diff --git a/examples/models/gltf/level-optimized.glb b/examples/models/gltf/level-optimized.glb
new file mode 100644
index 00000000000000..24fd9c30995911
Binary files /dev/null and b/examples/models/gltf/level-optimized.glb differ
diff --git a/examples/screenshots/webgl_batch_lod_merged.jpg b/examples/screenshots/webgl_batch_lod_merged.jpg
new file mode 100644
index 00000000000000..2ec2e3b6740dbc
Binary files /dev/null and b/examples/screenshots/webgl_batch_lod_merged.jpg differ
diff --git a/examples/tags.json b/examples/tags.json
index eeffb34d4c0ffb..8bff793824873f 100644
--- a/examples/tags.json
+++ b/examples/tags.json
@@ -14,6 +14,7 @@
 	"physics_rapier_character_controller": [ "external" ],
 	"physics_rapier_vehicle_controller": [ "external" ],
 	"webgl_batch_lod_bvh": [ "external", "accelerate", "performance", "extension", "plugin", "library", "three.ez" ],
+    "webgl_batch_lod_merged":[ "external", "accelerate", "performance", "extension", "plugin", "library", "three.ez" ],
 	"webgl_clipping": [ "solid" ],
 	"webgl_clipping_advanced": [ "solid" ],
 	"webgl_clipping_intersection": [ "solid" ],
diff --git a/examples/webgl_batch_lod_merged.html b/examples/webgl_batch_lod_merged.html
new file mode 100644
index 00000000000000..a049804590b539
--- /dev/null
+++ b/examples/webgl_batch_lod_merged.html
@@ -0,0 +1,344 @@
+<!DOCTYPE html>
+<html lang="en">
+
+<head>
+	<title>three.js raycaster - batch - lod - from - instance - meshes</title>
+	<meta charset="utf-8">
+	<meta name="viewport" content="width=device-width, user-scalable=no, minimum-scale=1.0, maximum-scale=1.0">
+	<link type="text/css" rel="stylesheet" href="main.css">
+	<style>
+		a {
+			text-decoration: underline;
+		}
+	</style>
+</head>
+
+<body>
+	<div id="info">
+		<a href="https://threejs.org" target="_blank" rel="noopener">three.js</a> batch lod - <a
+			href="https://github.com/agargaro/batched-mesh-extensions" target="_blank"
+			rel="noopener">@three.ez/batched-mesh-extensions</a><br />
+		Combining Instance Meshes that share a Material into a BatchedMesh + LOD<br>
+		Assets:
+		<a href="https://sketchfab.com/3d-models/set-of-rocks-in-a-desert-8754d3a4f1d14f698228723f54c69b6c"
+			target="_blank">Jefferson Frenay</a>
+		<a href="https://sketchfab.com/3d-models/rock-17-free-rock-pack-vol3-112533f65f3d4848ae14d18ed59f0db2"
+			target="_blank">Kless Gyzen</a>
+		<a href="https://sketchfab.com/3d-models/graveyard-angel-stone-sculpture-statue-bf55c6686ae7454181fa33662e7eca29"
+			target="_blank">Christians</a>
+		<a href="https://sketchfab.com/3d-models/medieval-torch-free-065861234a824cb982764f04627331c9"
+			target="_blank">Typhen</a>
+		<a href="https://sketchfab.com/3d-models/basalt-column-a510aaba8ec64e62873b936d1a87a491"
+			target="_blank">irs1182</a>
+		Environment assembly: <a href="https://bandinopla.github.io/" target="_blank">bandinopla</a>
+		. <br>
+	</div>
+
+	<script type="importmap">
+			{
+				"imports": {
+					"three": "../build/three.module.js",
+					"three/addons/": "./jsm/",
+ 
+					"three-mesh-bvh": "https://cdn.jsdelivr.net/npm/three-mesh-bvh@0.9.0/build/index.module.js",
+					"@three.ez/batched-mesh-extensions": "https://cdn.jsdelivr.net/npm/@three.ez/batched-mesh-extensions@0.0.11/build/webgl.js", 
+					"bvh.js": "https://cdn.jsdelivr.net/npm/bvh.js@0.0.13/build/index.js",
+					"@three.ez/simplify-geometry": "https://cdn.jsdelivr.net/npm/@three.ez/simplify-geometry@0.0.1/build/index.js",
+					"meshoptimizer": "https://cdn.jsdelivr.net/npm/meshoptimizer@0.23.0/+esm"
+				}
+			}
+		</script>
+
+	<script type="module">
+
+		import * as THREE from 'three';
+		import Stats from 'three/addons/libs/stats.module.js';
+		import { RoomEnvironment } from 'three/addons/environments/RoomEnvironment.js';
+		import { GUI } from 'three/addons/libs/lil-gui.module.min.js';
+		import { GLTFLoader } from 'three/addons/loaders/GLTFLoader.js';
+		import { DRACOLoader } from 'three/addons/loaders/DRACOLoader.js';
+		import { computeBatchedBoundsTree } from 'three-mesh-bvh';
+		import { createRadixSort, extendBatchedMeshPrototype, getBatchedMeshLODCount } from '@three.ez/batched-mesh-extensions';
+		import { performanceRangeLOD, simplifyGeometriesByErrorLOD } from '@three.ez/simplify-geometry';
+
+		// add and override BatchedMesh methods ( @three.ez/batched-mesh-extensions )
+		extendBatchedMeshPrototype();
+		THREE.BatchedMesh.prototype.computeBoundsTree = computeBatchedBoundsTree;
+
+		let stats;
+		let camera, scene, renderer;
+		let animatedCam, dirlight, onEnterFrame;
+		const clock = new THREE.Clock();
+
+		init();
+
+		async function init() {
+
+			// renderer
+			renderer = new THREE.WebGLRenderer( { antialias: true } );
+			renderer.setPixelRatio( window.devicePixelRatio );
+			renderer.setSize( window.innerWidth, window.innerHeight );
+			renderer.toneMapping = THREE.ACESFilmicToneMapping;
+			renderer.toneMappingExposure = 1;
+			document.body.appendChild( renderer.domElement );
+
+			//
+
+			scene = new THREE.Scene();
+
+			const pmremGenerator = new THREE.PMREMGenerator( renderer );
+			scene.environment = pmremGenerator.fromScene( new RoomEnvironment(), 0.04 ).texture;
+			scene.environmentIntensity = 0.1;
+
+			//
+
+			camera = new THREE.PerspectiveCamera( 50, window.innerWidth / window.innerHeight, 0.1, 1000 );
+			camera.position.set( 0, 20, 55 );
+			//
+
+			stats = new Stats();
+			document.body.appendChild( stats.dom );
+
+			const loader = new GLTFLoader();
+			const dracoLoader = new DRACOLoader();
+			dracoLoader.setDecoderPath( 'jsm/libs/draco/gltf/' );
+
+			loader.setDRACOLoader( dracoLoader );
+
+			const gltf = await loader.loadAsync( 'models/gltf/level-optimized.glb' );
+
+			setupScene( gltf );
+
+			window.addEventListener( 'resize', onWindowResize );
+			onWindowResize();
+
+			renderer.setAnimationLoop( animate );
+
+		}
+
+		function onWindowResize() {
+
+			camera.aspect = window.innerWidth / window.innerHeight;
+			camera.updateProjectionMatrix();
+
+			renderer.setSize( window.innerWidth, window.innerHeight );
+
+		}
+
+		/**
+		 * You can copy/paste this function. It will combine InstanceMesh objects into a single BatchMesh object if they share the same material.
+		 * @param {THREE.InstancedMesh[]} imeshes the array of instance meshes to analyze
+		 * @param {THREE.InstancedMesh[]} remove Here the combined instance meshes will be pushed so you can discard/remove them.
+		 * @return {THREE.BatchedMesh[]} the combined instance meshes that shared the same material
+		 */
+		async function mergeInstanceMeshes( imeshes, remove ) {
+
+			//
+			// group instance meshes by material (assuming 1 material with a name)
+			//
+			const material2batch = {};
+			const out = [];
+
+			imeshes.forEach( imesh => {
+
+				if ( ! imesh.material || ! imesh.material.name ) return;
+
+				if ( ! material2batch[ imesh.material.name ] ) {
+
+					material2batch[ imesh.material.name ] = [ imesh ];
+		
+				} else {
+
+					material2batch[ imesh.material.name ].push( imesh );
+
+				}
+		
+			} );
+
+			//
+			// for each "material" one batch will  be created
+			//
+			for ( const mname in material2batch ) {
+
+				const imeshes = material2batch[ mname ];
+
+				//
+				// if it has just 1, ignore it...
+				//
+				if ( imeshes.length < 2 ) continue;
+
+				let count = 0;
+				const geometries = [];
+
+				//
+				// collect geometries...
+				//
+				for ( let i = 0; i < imeshes.length; i ++ ) {
+
+					const imesh = imeshes[ i ];
+					count += imesh.count;
+					geometries.push( imesh.geometry );
+					remove.push( imesh );
+		
+				}
+
+				const material = imeshes[ 1 ].material;
+				const geometriesLODArray = await simplifyGeometriesByErrorLOD( geometries, 4, performanceRangeLOD );
+				const { vertexCount, indexCount, LODIndexCount } = getBatchedMeshLODCount( geometriesLODArray );
+				const batchedMesh = new THREE.BatchedMesh( count, vertexCount, indexCount, material );
+				batchedMesh.customSort = createRadixSort( batchedMesh );
+				batchedMesh.castShadow = true;
+				batchedMesh.receiveShadow = true;
+
+				//
+				// add geometries to the batch + their LODs
+				//
+				for ( let i = 0; i < geometriesLODArray.length; i ++ ) {
+
+					const geometryLOD = geometriesLODArray[ i ];
+					const geometryId = batchedMesh.addGeometry( geometryLOD[ 0 ], - 1, LODIndexCount[ i ] );
+
+					batchedMesh.addGeometryLOD( geometryId, geometryLOD[ 1 ], .05 );
+					batchedMesh.addGeometryLOD( geometryId, geometryLOD[ 2 ], .01 );
+					batchedMesh.addGeometryLOD( geometryId, geometryLOD[ 3 ], .003 );
+					batchedMesh.addGeometryLOD( geometryId, geometryLOD[ 4 ], .001 );
+
+				}
+
+				const matrix = new THREE.Matrix4();
+
+				//
+				// create the instances in the BatchMesh by copying the matrices of the InstancedMesh instances...
+				//
+				for ( let i = 0; i < imeshes.length; i ++ ) {
+
+					const imesh = imeshes[ i ];
+					for ( let j = 0; j < imesh.count; j ++ ) {
+
+						const id = batchedMesh.addInstance( i );
+
+						imesh.getMatrixAt( j, matrix );
+						matrix.premultiply( imesh.matrixWorld ); //<-- in case the InstancedMesh was transformed...
+
+						batchedMesh.setMatrixAt( id, matrix );
+		
+					}
+
+				}
+
+				out.push( batchedMesh );
+
+				//
+				// these lines are required for the automatic LOD switching to work....
+				//
+				batchedMesh.computeBoundsTree();
+				batchedMesh.computeBVH( THREE.WebGLCoordinateSystem );
+		
+			}
+
+			return out;
+
+		}
+
+
+		async function setupScene( gltf ) {
+
+			const remove = [];
+			const imeshes = [];
+
+
+			gltf.scene.traverse( o => {
+
+				if ( o instanceof THREE.InstancedMesh ) {
+
+					imeshes.push( o );
+		
+		} else if ( o instanceof THREE.DirectionalLight ) {
+
+					o.intensity = o.intensity / 120;
+					o.castShadow = true;
+					o.shadow.mapSize.set( 1024, 1024 );
+
+					const size = 60;
+
+					o.shadow.camera.top = - size;
+					o.shadow.camera.bottom = size;
+					o.shadow.camera.left = - size;
+					o.shadow.camera.right = size;
+					o.shadow.bias = - 0.0003;
+					dirlight = o;
+		
+		} else if ( o instanceof THREE.Mesh ) {
+
+					o.castShadow = true;
+					o.receiveShadow = true;
+		
+		} else if ( o instanceof THREE.PerspectiveCamera ) {
+
+					animatedCam = o;
+					camera.fov = animatedCam.fov;
+					camera.updateProjectionMatrix();
+		
+		}
+
+			} );
+
+			scene.add( gltf.scene );
+
+			//******************************************************************************************
+			const batchMeshes = await mergeInstanceMeshes( imeshes, remove );
+
+			remove.forEach( o => o.removeFromParent() );
+			batchMeshes.forEach( o => scene.add( o ) );
+			//******************************************************************************************
+
+			scene.add( new THREE.AmbientLight( 0xffee99, .6 ) );
+			const skyColor = 0xfefefe;
+			scene.fog = new THREE.Fog( 0xfefefe, 3, 60 );
+			scene.background = new THREE.Color( skyColor );
+
+
+			renderer.shadowMap.enabled = true;
+			renderer.shadowMap.type = THREE.PCFSoftShadowMap;
+
+
+			const offset = new THREE.Vector3();
+			dirlight.getWorldPosition( offset ).sub( animatedCam.position );
+			offset.y = 0;
+
+			const mix = new THREE.AnimationMixer( animatedCam );
+			mix.clipAction( gltf.animations[ 0 ] ).play().timeScale = 2;
+
+			onEnterFrame = delta => {
+
+				mix.update( delta );
+
+				dirlight.position.x = animatedCam.position.x + offset.x;
+				dirlight.position.z = animatedCam.position.z + offset.z;
+
+				camera.position.copy( animatedCam.position );
+				camera.quaternion.copy( animatedCam.quaternion );
+
+			};
+		
+		}
+
+		function animate() {
+
+			stats.begin();
+
+			if ( onEnterFrame )
+				onEnterFrame( clock.getDelta() );
+
+
+			renderer.render( scene, camera );
+
+			stats.end();
+
+		}
+
+	</script>
+
+</body>
+
+</html>
\ No newline at end of file
