diff --git a/CHANGELOG.md b/CHANGELOG.md
index b9c0ee2c75..df91b41c44 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -145,6 +145,7 @@ These PRs are not directly user-facing, but improve the development experience.
 - **Elements**: All hooks are now free functions (i.e. `use_state(hooks, ..)` instead of `hooks.use_state(..)`)
 - **UI**: Focus is now global across different packages, and we've removed the FocusRoot component
 - **API**: CursorLockGuard removed and `hide_cursor` package introduced.
+- **Hierarchies**: The `children` component is now automatically derived from `parent` components (unless the user opts out of this). The `children` component is also not networked any longer, since it's calculated on the client side.
 
 #### Non-breaking
 
diff --git a/app/src/server/mod.rs b/app/src/server/mod.rs
index a0837eb9f3..d0a585b4c2 100644
--- a/app/src/server/mod.rs
+++ b/app/src/server/mod.rs
@@ -221,6 +221,7 @@ fn systems(_world: &mut World) -> SystemGroup {
             // Can happen *during* the physics step
             Box::new(ambient_core::async_ecs::async_ecs_systems()),
             Box::new(ambient_prefab::systems()),
+            Box::new(ambient_core::hierarchy::systems()),
             // Happens after the physics step
             ambient_physics::fetch_simulation_system(),
             Box::new(ambient_animation::animation_systems()),
diff --git a/campfire/src/package.rs b/campfire/src/package.rs
index 52646b9482..837e88ea2c 100644
--- a/campfire/src/package.rs
+++ b/campfire/src/package.rs
@@ -144,6 +144,7 @@ fn check_all() -> anyhow::Result<()> {
             if !features.is_empty() {
                 command.args(["--features", features]);
             }
+            command.args(["--", "-A", "clippy::collapsible-if"]);
 
             if !command.spawn()?.wait()?.success() {
                 anyhow::bail!(
diff --git a/crates/app/src/lib.rs b/crates/app/src/lib.rs
index 802a3a8d67..c9a2c30486 100644
--- a/crates/app/src/lib.rs
+++ b/crates/app/src/lib.rs
@@ -99,6 +99,7 @@ pub fn world_instance_systems(full: bool) -> SystemGroup {
             Box::new(async_ecs_systems()),
             remove_at_time_system(),
             refcount_system(),
+            Box::new(ambient_core::hierarchy::systems()),
             Box::new(WorldEventsSystem),
             Box::new(ambient_focus::systems()),
             if full {
diff --git a/crates/core/src/hierarchy.rs b/crates/core/src/hierarchy.rs
index fd84b4c6e4..913ef2eb2a 100644
--- a/crates/core/src/hierarchy.rs
+++ b/crates/core/src/hierarchy.rs
@@ -1,6 +1,9 @@
 use std::collections::HashSet;
 
-use ambient_ecs::{query, Component, ComponentValue, ECSError, Entity, EntityId, World};
+use ambient_ecs::{
+    generated::hierarchy::components::unmanaged_children, query, Component, ComponentValue,
+    ECSError, Entity, EntityId, SystemGroup, World,
+};
 use itertools::Itertools;
 use yaml_rust::YamlEmitter;
 
@@ -8,6 +11,41 @@ pub use ambient_ecs::generated::hierarchy::components::{children, parent};
 
 use crate::name;
 
+pub fn systems() -> SystemGroup {
+    SystemGroup::new(
+        "hierarchy",
+        vec![
+            query(parent().changed()).to_system_with_name("update_children", |q, world, qs, _| {
+                for (id, parent) in q.collect_cloned(world, qs) {
+                    if world.has_component(parent, unmanaged_children()) {
+                        continue;
+                    }
+                    if let Ok(children) = world.get_mut(parent, children()) {
+                        if !children.contains(&id) {
+                            children.push(id);
+                        }
+                    } else {
+                        world.add_component(parent, children(), vec![id]).unwrap();
+                    }
+                }
+            }),
+            query(parent()).despawned().to_system_with_name(
+                "remove_children",
+                |q, world, qs, _| {
+                    for (id, parent) in q.collect_cloned(world, qs) {
+                        if world.has_component(parent, unmanaged_children()) {
+                            continue;
+                        }
+                        if let Ok(children) = world.get_mut(parent, children()) {
+                            children.retain(|c| *c != id);
+                        }
+                    }
+                },
+            ),
+        ],
+    )
+}
+
 pub fn despawn_recursive(world: &mut World, entity: EntityId) -> Option<Entity> {
     despawn_children_recursive(world, entity);
     world.despawn(entity)
diff --git a/crates/ecs/src/generated.rs b/crates/ecs/src/generated.rs
index f6dbaeccc1..64d84e9ff3 100644
--- a/crates/ecs/src/generated.rs
+++ b/crates/ecs/src/generated.rs
@@ -240,7 +240,7 @@ mod raw {
                 };
                 use glam::{Mat4, Quat, UVec2, UVec3, UVec4, Vec2, Vec3, Vec4};
                 use std::time::Duration;
-                components ! ("hierarchy" , { # [doc = "**Parent**: The parent of this entity.\n\n*Attributes*: Debuggable, Networked, Store"] @ [Debuggable , Networked , Store , Name ["Parent"] , Description ["The parent of this entity."]] parent : EntityId , # [doc = "**Children**: The children of this entity.\n\n*Attributes*: Debuggable, Networked, Store, MaybeResource"] @ [Debuggable , Networked , Store , MaybeResource , Name ["Children"] , Description ["The children of this entity."]] children : Vec :: < EntityId > , });
+                components ! ("hierarchy" , { # [doc = "**Parent**: The parent of this entity.\n\n*Attributes*: Debuggable, Networked, Store"] @ [Debuggable , Networked , Store , Name ["Parent"] , Description ["The parent of this entity."]] parent : EntityId , # [doc = "**Children**: The children of this entity.\n\n*Attributes*: Debuggable, Store, MaybeResource"] @ [Debuggable , Store , MaybeResource , Name ["Children"] , Description ["The children of this entity."]] children : Vec :: < EntityId > , # [doc = "**Unmanaged children**: This children component is not updated automatically for this entity when this component is attached.\n\n*Attributes*: Debuggable, Networked, Store, MaybeResource"] @ [Debuggable , Networked , Store , MaybeResource , Name ["Unmanaged children"] , Description ["This children component is not updated automatically for this entity when this component is attached."]] unmanaged_children : () , });
             }
         }
         #[allow(unused)]
diff --git a/crates/model/src/model.rs b/crates/model/src/model.rs
index bbadadb943..37ab321e65 100644
--- a/crates/model/src/model.rs
+++ b/crates/model/src/model.rs
@@ -13,7 +13,8 @@ use ambient_core::{
     },
 };
 use ambient_ecs::{
-    generated::animation::components::bind_id, query, ComponentDesc, Entity, EntityId, World,
+    generated::{animation::components::bind_id, hierarchy::components::unmanaged_children},
+    query, ComponentDesc, Entity, EntityId, World,
 };
 use ambient_gpu::gpu::Gpu;
 use ambient_native_std::{
@@ -207,7 +208,8 @@ impl Model {
                         .with(children(), vec![])
                         .with(local_to_parent(), transform)
                         .with(local_to_world(), Default::default())
-                        .with(is_model_node(), ()),
+                        .with(is_model_node(), ())
+                        .with(unmanaged_children(), ()),
                     count,
                 );
                 for (transform, root) in transform_roots.iter().zip(roots.iter()) {
@@ -375,6 +377,9 @@ impl Model {
             }
         }
         if self.0.has_component(id, children()) {
+            for id in &entities {
+                world.add_component(*id, unmanaged_children(), ()).ok();
+            }
             for c in self.0.get_ref(id, children()).unwrap().iter() {
                 self.spawn_subtree(
                     gpu,
diff --git a/docs/src/reference/hierarchies.md b/docs/src/reference/hierarchies.md
index 30e2806337..fb46a3f746 100644
--- a/docs/src/reference/hierarchies.md
+++ b/docs/src/reference/hierarchies.md
@@ -1,10 +1,10 @@
 # Hierarchies and transforms
 
-Ambient supports hierarchies of entities using the `parent` and `children` components. Both need to be present for a hierarchy to be valid - as an example, the following entities in the ECS
+Ambient supports hierarchies of entities using the `parent` and `children` components. The user only specifies the `parent` component, the `children` are automatically derived from the existing parents.
+As an example, the following entities in the ECS
 
 ```yml
 entity a:
-  - children: [b, c]
 entity b:
   - parent: a
 entity c:
@@ -19,8 +19,6 @@ entity a
     entity c
 ```
 
-If you are creating hierachies yourself, you need to make sure that both `parent` and `children` exists and are correct for the hierarchy to work.
-
 The `entity::add_child` and `entity::remove_child` functions can be used to add and remove children from a parent.
 
 When using the `model_from_url` or `prefab_from_url` components, the entire model sub-tree will be spawned in, with the root of the sub-tree being added as a child to the entity with the component. Each entity in the sub-tree will be part of the hierarchy using their own `parent` and `children` components.
@@ -32,7 +30,6 @@ To apply transforms to a hierarchy, `local_to_parent` must be used:
 
 ```yml
 entity a:
-  - children: [b]
   - local_to_world: Mat4(..)
 entity b:
   - parent: a
@@ -46,7 +43,6 @@ In this case, `b.local_to_world` will be calculated as `a.local_to_world * b.loc
 
 ```yml
 entity a:
-  - children: [b]
   - local_to_world: Mat4(..)
   - translation: vec3(5., 2., 9.)
   - rotation: quat(..)
@@ -88,3 +84,9 @@ mesh_to_world = local_to_world * mesh_to_local
 This also means that you can attach a mesh in the middle of a hierarchy, with an offset. For instance, if you have
 a bone hierarchy on a character, you can attach an mesh to the upper arm bone, but without `mesh_to_local/world` it
 would be rendered at the center of the arm (inside the arm), so by using `mesh_to_local/world` you can offset it.
+
+## Opting out of automatically derived children
+
+If you wish to manage the `children` component yourself, you can attach an `unmanaged_children` component to your
+entity. This stops `children` from being automatically created, and it's now up to you to populate the `children`
+component to create a valid hierarchy.
diff --git a/guest/rust/Cargo.lock b/guest/rust/Cargo.lock
index 3655043585..258348a5cf 100644
--- a/guest/rust/Cargo.lock
+++ b/guest/rust/Cargo.lock
@@ -23,13 +23,6 @@ version = "1.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "aae1277d39aeec15cb388266ecc24b11c80469deae6067e17a1a7aa9e5c1f234"
 
-[[package]]
-name = "afps_fpsanim"
-version = "0.0.1"
-dependencies = [
- "ambient_api",
-]
-
 [[package]]
 name = "afps_fpsaudio"
 version = "0.0.1"
@@ -815,6 +808,13 @@ version = "1.0.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "baf1de4339761588bc0619e3cbc0120ee582ebb74b53b4efbf79117bd2da40fd"
 
+[[package]]
+name = "character_animation"
+version = "0.0.1"
+dependencies = [
+ "ambient_api",
+]
+
 [[package]]
 name = "character_movement"
 version = "0.0.1"
diff --git a/guest/rust/api_core/src/client/audio.rs b/guest/rust/api_core/src/client/audio.rs
index a7e34c2580..b75ec002d6 100644
--- a/guest/rust/api_core/src/client/audio.rs
+++ b/guest/rust/api_core/src/client/audio.rs
@@ -2,7 +2,7 @@ use crate::{
     core::{
         app::components::name,
         audio::components::*,
-        hierarchy::components::{children, parent},
+        hierarchy::components::{children, parent, unmanaged_children},
     },
     entity,
     prelude::{Entity, EntityId},
@@ -82,6 +82,7 @@ impl AudioPlayer {
             .with(is_audio_player(), ())
             .with(name(), "Audio player".to_string())
             .with(children(), vec![])
+            .with(unmanaged_children(), ())
             .spawn();
         Self { entity: player }
     }
diff --git a/guest/rust/api_core/src/entity.rs b/guest/rust/api_core/src/entity.rs
index 2f201802c1..00d5a66adc 100644
--- a/guest/rust/api_core/src/entity.rs
+++ b/guest/rust/api_core/src/entity.rs
@@ -4,6 +4,7 @@ use crate::{
     internal::{
         component::{Component, Entity, SupportedValue, UntypedComponent},
         conversion::{FromBindgen, IntoBindgen},
+        generated::ambient_core::hierarchy::components::unmanaged_children,
         wit,
     },
     prelude::block_until,
@@ -224,17 +225,19 @@ pub fn mutate_component_with_default<T: SupportedValue + Clone + PartialEq>(
 
 /// Adds `child` as a child to `entity`.
 pub fn add_child(entity: EntityId, child: EntityId) {
-    if has_component(entity, children()) {
-        mutate_component(entity, children(), |children| children.push(child));
-    } else {
-        add_component(entity, children(), vec![child]);
+    if has_component(entity, unmanaged_children()) {
+        if has_component(entity, children()) {
+            mutate_component(entity, children(), |children| children.push(child));
+        } else {
+            add_component(entity, children(), vec![child]);
+        }
     }
     add_component(child, parent(), entity);
 }
 
 /// Removes `child` as a child to `entity`.
 pub fn remove_child(entity: EntityId, child: EntityId) {
-    if has_component(entity, children()) {
+    if has_component(entity, unmanaged_children()) {
         mutate_component(entity, children(), |children| {
             children.retain(|x| *x != child)
         });
diff --git a/guest/rust/api_core/src/internal/generated.rs b/guest/rust/api_core/src/internal/generated.rs
index 71c2c5ce16..9781b2a97f 100644
--- a/guest/rust/api_core/src/internal/generated.rs
+++ b/guest/rust/api_core/src/internal/generated.rs
@@ -761,10 +761,17 @@ mod raw {
                 }
                 static CHILDREN: Lazy<Component<Vec<EntityId>>> =
                     Lazy::new(|| __internal_get_component("ambient_core::hierarchy::children"));
-                #[doc = "**Children**: The children of this entity.\n\n*Attributes*: Debuggable, Networked, Store, MaybeResource"]
+                #[doc = "**Children**: The children of this entity.\n\n*Attributes*: Debuggable, Store, MaybeResource"]
                 pub fn children() -> Component<Vec<EntityId>> {
                     *CHILDREN
                 }
+                static UNMANAGED_CHILDREN: Lazy<Component<()>> = Lazy::new(|| {
+                    __internal_get_component("ambient_core::hierarchy::unmanaged_children")
+                });
+                #[doc = "**Unmanaged children**: This children component is not updated automatically for this entity when this component is attached.\n\n*Attributes*: Debuggable, Networked, Store, MaybeResource"]
+                pub fn unmanaged_children() -> Component<()> {
+                    *UNMANAGED_CHILDREN
+                }
             }
         }
         #[allow(unused)]
diff --git a/guest/rust/packages/games/minigolf/src/server.rs b/guest/rust/packages/games/minigolf/src/server.rs
index 2b3e5dd86e..a5d77dc37f 100644
--- a/guest/rust/packages/games/minigolf/src/server.rs
+++ b/guest/rust/packages/games/minigolf/src/server.rs
@@ -5,7 +5,7 @@ use ambient_api::{
             components::{active_camera, aspect_ratio_from_window},
             concepts::make_perspective_infinite_reverse_camera,
         },
-        hierarchy::components::children,
+        hierarchy::components::parent,
         messages::Collision,
         model::components::model_from_url,
         physics::components::{
@@ -142,6 +142,7 @@ pub fn main() {
                     .with(color(), next_color)
                     .with(user_id(), player_user_id.clone())
                     .with(text(), player_user_id.clone())
+                    .with(parent(), player)
                     .spawn();
                 entity::add_component(player, player_text(), text);
 
@@ -153,7 +154,6 @@ pub fn main() {
                         .with(local_to_world(), Default::default())
                         .with(spherical_billboard(), ())
                         .with(translation(), vec3(-5., 0., 5.))
-                        .with(children(), vec![text])
                         .spawn(),
                 );
 
diff --git a/guest/rust/packages/games/tangent/core/src/client.rs b/guest/rust/packages/games/tangent/core/src/client.rs
index 81de7961e4..3886a02c6a 100644
--- a/guest/rust/packages/games/tangent/core/src/client.rs
+++ b/guest/rust/packages/games/tangent/core/src/client.rs
@@ -5,7 +5,7 @@ use ambient_api::{
             components::{aspect_ratio_from_window, fog, fovy},
             concepts::make_perspective_infinite_reverse_camera,
         },
-        hierarchy::components::{children, parent},
+        hierarchy::components::parent,
         messages::Frame,
         physics::components::linear_velocity,
         rect::components::{line_from, line_to, line_width, rect},
@@ -72,11 +72,8 @@ pub fn main() {
     despawn_query(vehicle_hud())
         .requires(vehicle())
         .bind(move |vehicles| {
-            for (vehicle_id, hud_id) in vehicles {
+            for (_vehicle_id, hud_id) in vehicles {
                 entity::despawn(hud_id);
-                entity::mutate_component(vehicle_id, children(), |children| {
-                    children.retain(|&c| c != hud_id);
-                });
             }
         });
 
diff --git a/guest/rust/packages/std/character_animation/Cargo.toml b/guest/rust/packages/std/character_animation/Cargo.toml
index 478d6e8848..f73f6d29e6 100644
--- a/guest/rust/packages/std/character_animation/Cargo.toml
+++ b/guest/rust/packages/std/character_animation/Cargo.toml
@@ -1,5 +1,5 @@
 [package]
-name = "afps_fpsanim"
+name = "character_animation"
 
 edition = "2021"
 publish = false
@@ -9,9 +9,9 @@ version = "0.0.1"
 ambient_api = { workspace = true }
 
 [[bin]]
-name = "fpsanim_server"
-path = "src/server.rs"
-required-features = ["server"]
+name = "character_animation_client"
+path = "src/client.rs"
+required-features = ["client"]
 
 [features]
 client = ["ambient_api/client"]
diff --git a/guest/rust/packages/std/character_animation/ambient.toml b/guest/rust/packages/std/character_animation/ambient.toml
index d8875331c1..e51e2f0401 100644
--- a/guest/rust/packages/std/character_animation/ambient.toml
+++ b/guest/rust/packages/std/character_animation/ambient.toml
@@ -1,6 +1,6 @@
 [package]
 id = "character_animation"
-name = "Basic character animation"
+name = "Character animation"
 version = "0.0.1"
 content = { type = "Asset", animations = true, code = true }
 
@@ -8,7 +8,10 @@ content = { type = "Asset", animations = true, code = true }
 unit_schema = { path = "../../schemas/unit", deployment = "7JvheyuVjOG0IP3MDpgLE0" }
 
 [components]
-basic_character_animations = { type = "EntityId", description = "Apply animations to the model this points to. Parameters such as health etc. is read from the entity this component is attached to." }
+basic_character_animations = { type = "EntityId", description = "Apply animations to the model this points to. Parameters such as health etc. is read from the entity this component is attached to.", attributes = [
+    "Debuggable",
+    "Networked",
+] }
 
 # Overrides for the default animations
 walk_forward = { type = "String", description = "Url to animation" }
diff --git a/guest/rust/packages/std/character_animation/src/server.rs b/guest/rust/packages/std/character_animation/src/client.rs
similarity index 100%
rename from guest/rust/packages/std/character_animation/src/server.rs
rename to guest/rust/packages/std/character_animation/src/client.rs
diff --git a/schema/schema/hierarchy.toml b/schema/schema/hierarchy.toml
index 2234ceb1f1..3c7ce2c301 100644
--- a/schema/schema/hierarchy.toml
+++ b/schema/schema/hierarchy.toml
@@ -15,4 +15,10 @@ attributes = ["Debuggable", "Networked", "Store"]
 type = { type = "Vec", element_type = "EntityId" }
 name = "Children"
 description = "The children of this entity."
+attributes = ["Debuggable", "Store", "MaybeResource"]
+
+[components.unmanaged_children]
+type = "Empty"
+name = "Unmanaged children"
+description = "This children component is not updated automatically for this entity when this component is attached."
 attributes = ["Debuggable", "Networked", "Store", "MaybeResource"]
diff --git a/shared_crates/element/src/tree.rs b/shared_crates/element/src/tree.rs
index d663f8744c..e2926de581 100644
--- a/shared_crates/element/src/tree.rs
+++ b/shared_crates/element/src/tree.rs
@@ -20,7 +20,7 @@ use ambient_guest_bridge::core::hierarchy::components::{children, parent};
 #[cfg(feature = "native")]
 use ambient_guest_bridge::ecs::{query, Component, SystemGroup};
 use ambient_guest_bridge::{
-    core::app::components::name,
+    core::{app::components::name, hierarchy::components::unmanaged_children},
     ecs::{Entity, EntityId, World},
 };
 use itertools::Itertools;
@@ -559,13 +559,17 @@ impl ElementTree {
             let mut all_children = Vec::new();
             self.get_full_instance_children(id, &mut all_children);
             world
-                .add_component(
+                .add_components(
                     instance.entity,
-                    children(),
-                    all_children
-                        .iter()
-                        .map(|c| self.instances.get(c).unwrap().entity)
-                        .collect_vec(),
+                    Entity::new()
+                        .with(
+                            children(),
+                            all_children
+                                .iter()
+                                .map(|c| self.instances.get(c).unwrap().entity)
+                                .collect_vec(),
+                        )
+                        .with(unmanaged_children(), ()),
                 )
                 .unwrap();
         }