diff --git a/libraries/SITL/SIM_Aircraft.cpp b/libraries/SITL/SIM_Aircraft.cpp
index e3a10152af5d09..a88b0731dd7119 100644
--- a/libraries/SITL/SIM_Aircraft.cpp
+++ b/libraries/SITL/SIM_Aircraft.cpp
@@ -33,6 +33,7 @@
 #include <AP_Filesystem/AP_Filesystem.h>
 #include <AP_AHRS/AP_AHRS.h>
 #include <AP_HAL_SITL/HAL_SITL_Class.h>
+#include <AP_Vehicle/AP_Vehicle_Type.h>
 
 using namespace SITL;
 
@@ -500,18 +501,27 @@ void Aircraft::fill_fdm(struct sitl_fdm &fdm)
 #endif
 }
 
-// returns perpendicular height to surface downward-facing rangefinder
-// is bouncing off:
+/*
+  rover and copter have special handling for horizontal rangefinders
+  as distance to obstacles - this takes effect for yaw-only
+  orientations
+ */
+#define SITL_RANGEFINDER_AS_OBJECT_SENSOR (APM_BUILD_TYPE(APM_BUILD_ArduCopter) || APM_BUILD_TYPE(APM_BUILD_Rover))
+#define SITL_RANGEFINDER_IS_YAW_ONLY(orientation) (orientation >= ROTATION_NONE && orientation <= ROTATION_YAW_315)
+
+// returns perpendicular height to surface rangefinder is bouncing off
 float Aircraft::perpendicular_distance_to_rangefinder_surface() const
 {
-    switch ((Rotation)sitl->sonar_rot.get()) {
-    case Rotation::ROTATION_PITCH_270:
-        return sitl->state.height_agl;
-    case ROTATION_NONE ... ROTATION_YAW_315:
+#if SITL_RANGEFINDER_AS_OBJECT_SENSOR
+    const auto orientation = (Rotation)sitl->sonar_rot.get();
+    if (SITL_RANGEFINDER_IS_YAW_ONLY(orientation)) {
+        // assume these are avoidance sensors
         return sitl->measure_distance_at_angle_bf(location, sitl->sonar_rot.get()*45);
-    default:
-        AP_BoardConfig::config_error("Bad simulated sonar rotation");
     }
+#endif
+
+    // default is ground sensing rangefinders
+    return sitl->state.height_agl;
 }
 
 float Aircraft::rangefinder_range() const
@@ -543,11 +553,6 @@ float Aircraft::rangefinder_range() const
         }
     }
 
-    if (fabs(roll) >= 90.0 || fabs(pitch) >= 90.0) {
-        // not going to hit the ground....
-        return INFINITY;
-    }
-
     float altitude = perpendicular_distance_to_rangefinder_surface();
 
     // sensor position offset in body frame
@@ -565,8 +570,33 @@ float Aircraft::rangefinder_range() const
         altitude -= relPosSensorEF.z;
     }
 
-    // adjust for apparent altitude with roll
-    altitude /= cosf(radians(roll)) * cosf(radians(pitch));
+    const auto orientation = (Rotation)sitl->sonar_rot.get();
+#if SITL_RANGEFINDER_AS_OBJECT_SENSOR
+    /*
+      rover and copter using SITL rangefinders as obstacle sensors
+     */
+    if (SITL_RANGEFINDER_IS_YAW_ONLY(orientation)) {
+        if (fabs(roll) >= 90.0 || fabs(pitch) >= 90.0) {
+            // not going to hit the ground....
+            return INFINITY;
+        }
+        altitude /= cosf(radians(roll)) * cosf(radians(pitch));
+    } else
+#else
+    {
+        // adjust for rotation based on orientation of the sensor
+        Matrix3f rotmat;
+        sitl->state.quaternion.rotation_matrix(rotmat);
+        Vector3f v{1, 0, 0};
+        v.rotate(orientation);
+        v = rotmat * v;
+
+        if (!is_positive(v.z)) {
+            return INFINITY;
+        }
+        altitude /= v.z;
+    }
+#endif
 
     // Add some noise on reading
     altitude += sitl->sonar_noise * rand_float();