diff --git a/src/engine/Collision/Detection/DynamicTreeCollisionProcessor.ts b/src/engine/Collision/Detection/DynamicTreeCollisionProcessor.ts
index 30d8b607a..1576c9111 100644
--- a/src/engine/Collision/Detection/DynamicTreeCollisionProcessor.ts
+++ b/src/engine/Collision/Detection/DynamicTreeCollisionProcessor.ts
@@ -97,13 +97,17 @@ export class DynamicTreeCollisionProcessor implements CollisionProcessor {
         if (options?.filter) {
           if (options.filter(hit)) {
             results.push(hit);
+            if (!searchAllColliders) {
+              // returning true exits the search
+              return true;
+            }
           }
         } else {
           results.push(hit);
-        }
-        if (!searchAllColliders) {
-          // returning true exits the search
-          return true;
+          if (!searchAllColliders) {
+            // returning true exits the search
+            return true;
+          }
         }
       }
       return false;
diff --git a/src/spec/PhysicsWorldSpec.ts b/src/spec/PhysicsWorldSpec.ts
index 9d0816a54..7c1ff5a5d 100644
--- a/src/spec/PhysicsWorldSpec.ts
+++ b/src/spec/PhysicsWorldSpec.ts
@@ -164,4 +164,28 @@ describe('A physics world', () => {
     expect(hits[0].distance).toBe(275);
     expect(hits[0].point).toEqual(ex.vec(275, 0));
   });
+
+  it('can rayCast with filter and search all colliders false, returns 1 hit', () => {
+    const sut = TestUtils.engine();
+    const actor1 = new ex.Actor({x: 100, y: 0, width: 50, height: 50});
+    sut.currentScene.add(actor1);
+    const actor2 = new ex.Actor({x: 200, y: 0, width: 50, height: 50});
+    sut.currentScene.add(actor2);
+    const actor3 = new ex.Actor({x: 300, y: 0, width: 50, height: 50, collisionGroup: new ex.CollisionGroup('test', 0b1, ~0b1)});
+    sut.currentScene.add(actor3);
+
+    const ray = new ex.Ray(ex.vec(0, 0), ex.Vector.Right);
+    const hits = sut.currentScene.physics.rayCast(ray, {
+      searchAllColliders: false,
+      filter: (hit) => {
+        return hit.body.group.name === 'test';
+      }
+    });
+
+    expect(hits.length).toBe(1);
+    expect(hits[0].body).toEqual(actor3.body);
+    expect(hits[0].collider).toEqual(actor3.collider.get());
+    expect(hits[0].distance).toBe(275);
+    expect(hits[0].point).toEqual(ex.vec(275, 0));
+  });
 });
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