diff --git a/jme3-core/src/main/java/com/jme3/input/ChaseCamera.java b/jme3-core/src/main/java/com/jme3/input/ChaseCamera.java
index 36206bc663..8538d4c36b 100644
--- a/jme3-core/src/main/java/com/jme3/input/ChaseCamera.java
+++ b/jme3-core/src/main/java/com/jme3/input/ChaseCamera.java
@@ -546,7 +546,9 @@ public boolean isEnabled() {
      */
     public void setEnabled(boolean enabled) {
         this.enabled = enabled;
-        if (!enabled) {
+        if (enabled) {
+            this.canRotate = !dragToRotate; //On enable, set back to correct state
+        } else {
             canRotate = false; // reset this flag in-case it was on before
         }
     }
diff --git a/jme3-examples/src/main/java/jme3test/input/TestIssue1692.java b/jme3-examples/src/main/java/jme3test/input/TestIssue1692.java
new file mode 100644
index 0000000000..cb63e3a70a
--- /dev/null
+++ b/jme3-examples/src/main/java/jme3test/input/TestIssue1692.java
@@ -0,0 +1,134 @@
+/*
+ * Copyright (c) 2009-2021 jMonkeyEngine
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are
+ * met:
+ *
+ * * Redistributions of source code must retain the above copyright
+ *   notice, this list of conditions and the following disclaimer.
+ *
+ * * Redistributions in binary form must reproduce the above copyright
+ *   notice, this list of conditions and the following disclaimer in the
+ *   documentation and/or other materials provided with the distribution.
+ *
+ * * Neither the name of 'jMonkeyEngine' nor the names of its contributors
+ *   may be used to endorse or promote products derived from this software
+ *   without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS
+ * "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED
+ * TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
+ * PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT OWNER OR
+ * CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL,
+ * EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO,
+ * PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR
+ * PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF
+ * LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING
+ * NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
+ * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ */
+package jme3test.input;
+
+import com.jme3.app.SimpleApplication;
+import com.jme3.font.BitmapText;
+import com.jme3.input.ChaseCamera;
+import com.jme3.input.KeyInput;
+import com.jme3.input.controls.ActionListener;
+import com.jme3.input.controls.KeyTrigger;
+import com.jme3.material.Material;
+import com.jme3.math.ColorRGBA;
+import com.jme3.math.FastMath;
+import com.jme3.math.Quaternion;
+import com.jme3.math.Vector3f;
+import com.jme3.scene.Geometry;
+import com.jme3.scene.shape.Quad;
+
+/**
+ * A test for issue https://github.com/jMonkeyEngine/jmonkeyengine/pull/1692.
+ * We are testing to see if disabling then re-enabling the chase camera keeps the correct flags
+ * set so that we can still rotate without dragging
+ */
+public class TestIssue1692 extends SimpleApplication implements ActionListener {
+
+    private ChaseCamera chaseCam;
+    private BitmapText cameraStatus;
+
+    public static void main(String[] args) {
+        TestIssue1692 app = new TestIssue1692();
+        app.start();
+    }
+
+    @Override
+    public void simpleInitApp() {
+        // Load a teapot model, we will chase this with the camera
+        Geometry teaGeom = (Geometry) assetManager.loadModel("Models/Teapot/Teapot.obj");
+        Material teapotMaterial = new Material(assetManager, "Common/MatDefs/Misc/ShowNormals.j3md");
+        teaGeom.setMaterial(teapotMaterial);
+        rootNode.attachChild(teaGeom);
+
+        // Load a floor model
+        Material floorMaterial = new Material(assetManager, "Common/MatDefs/Misc/Unshaded.j3md");
+        floorMaterial.setTexture("ColorMap", assetManager.loadTexture("Interface/Logo/Monkey.jpg"));
+        Geometry ground = new Geometry("ground", new Quad(50, 50));
+        ground.setLocalRotation(new Quaternion().fromAngleAxis(-FastMath.HALF_PI, Vector3f.UNIT_X));
+        ground.setLocalTranslation(-25, -1, 25);
+        ground.setMaterial(floorMaterial);
+        rootNode.attachChild(ground);
+
+        // Disable the default first-person cam!
+        flyCam.setEnabled(false);
+
+        // Enable a chase cam
+        chaseCam = new ChaseCamera(cam, teaGeom, inputManager);
+        /*
+         * Explicitly set drag to rotate to false.
+         * We are testing to see if disabling then re-enabling the camera keeps the correct flags
+         * set so that we can still rotate without dragging.
+         */
+        chaseCam.setDragToRotate(false);
+
+        // Show instructions
+        int yTop = settings.getHeight();
+        int size = guiFont.getCharSet().getRenderedSize();
+        BitmapText hudText = new BitmapText(guiFont);
+        hudText.setSize(size);
+        hudText.setColor(ColorRGBA.Blue);
+        hudText.setText("This test is for issue 1692.\n"
+                + "We are testing to see if drag to rotate stays disabled"
+                + "after disabling and re-enabling the chase camera.\n"
+                + "For this test, use the SPACE key to disable and re-enable the camera.");
+        hudText.setLocalTranslation(0, yTop - (hudText.getLineHeight() * 3), 0);
+        guiNode.attachChild(hudText);
+
+        // Show camera status
+        cameraStatus = new BitmapText(guiFont);
+        cameraStatus.setSize(size);
+        cameraStatus.setColor(ColorRGBA.Blue);
+        cameraStatus.setLocalTranslation(0, yTop - cameraStatus.getLineHeight(), 0); // position
+        guiNode.attachChild(cameraStatus);
+
+        // Register inputs
+        registerInput();
+    }
+
+    @Override
+    public void simpleUpdate(float tpf) {
+        // Update chaseCam status
+        cameraStatus.setText("chaseCam " + (chaseCam.isEnabled() ? "enabled" : "disabled"));
+    }
+
+    private void registerInput() {
+        inputManager.addMapping("toggleCamera", new KeyTrigger(KeyInput.KEY_SPACE));
+        inputManager.addListener(this, "toggleCamera");
+    }
+
+    @Override
+    public void onAction(String name, boolean keyPressed, float tpf) {
+        if (name.equals("toggleCamera") && keyPressed) {
+            // Toggle chase camera
+            chaseCam.setEnabled(!chaseCam.isEnabled());
+        }
+    }
+}