diff --git a/src/bit-components.js b/src/bit-components.js
index 26cf6c0240..0059457998 100644
--- a/src/bit-components.js
+++ b/src/bit-components.js
@@ -157,6 +157,7 @@ export const MediaLoader = defineComponent({
 MediaLoader.src[$isStringType] = true;
 MediaLoader.fileId[$isStringType] = true;
 export const MediaLoaded = defineComponent();
+export const LoadedByMediaLoader = defineComponent();
 export const MediaContentBounds = defineComponent({
   bounds: [Types.f32, 3]
 });
diff --git a/src/bit-systems/media-loading.ts b/src/bit-systems/media-loading.ts
index 022fa1c8fb..cdb1ef64c4 100644
--- a/src/bit-systems/media-loading.ts
+++ b/src/bit-systems/media-loading.ts
@@ -3,6 +3,7 @@ import { Box3, Euler, Vector3 } from "three";
 import { HubsWorld } from "../app";
 import {
   GLTFModel,
+  LoadedByMediaLoader,
   MediaContentBounds,
   MediaLoaded,
   MediaLoader,
@@ -210,6 +211,7 @@ function* loadMedia(world: HubsWorld, eid: EntityID) {
     console.error(e);
     media = renderAsEntity(world, ErrorObject());
   }
+  addComponent(world, LoadedByMediaLoader, media);
   crClearTimeout(addLoadingObjectTimeout);
   loadingObjEid && removeEntity(world, loadingObjEid);
   return media;
diff --git a/src/systems/hold-system.js b/src/systems/hold-system.js
index 5625de006b..149e6f21de 100644
--- a/src/systems/hold-system.js
+++ b/src/systems/hold-system.js
@@ -11,6 +11,7 @@ import {
   HeldHandRight,
   HoveredHandLeft,
   HeldHandLeft,
+  LoadedByMediaLoader,
   AEntity
 } from "../bit-components";
 import { canMove } from "../utils/permissions-utils";
@@ -38,9 +39,62 @@ function isAEntityPinned(world, eid) {
   return false;
 }
 
+// Special check for Droped/Pasted Media with new loader enabled.
+//
+// ** Problem **
+// When you drop or paste a media file or url, a MediaLoader entity is created.
+// This entity downloads the media file and creates a media (e.g., video)
+// entity. The MediaLoader entity object then adds the media entity object
+// as its child.
+//
+// The MediaLoader entity does not have a visible object after the loading
+// cube disappears, but the media entity does. Both entities are hover targets,
+// but after the loading cube disappears, the MediaLoader entity can no longer
+// be hovered because it does not have a visible object. Only the media entity
+// can be hovered at this point.
+//
+// The media entity is not a networked entity, but the MediaLoader entity is.
+// This means that the MediaLoader entity can be pinned (the creator is "reticulum"),
+// but the media entity cannot. If you check whether the media entity is pinned,
+// it will always return false. Then media entity will always be grabbable even if
+// it is pinned (more precisely its parent is pinned).
+//
+// **Solution**
+// Check its parent is pinned to check media entity is pinned.
+//
+// TODO: This solution is hacky. Fix the root issue.
+//
+// Alternate solution: Simply recognize an entity as pinned if its any
+// ancestor is pinned (in hold-system) unless there is a case that
+// descendant entity under pinned entity wants to be grabbable.
+function isParentPinned(world, eid) {
+  if (!world.eid2obj.has(eid)) {
+    return false;
+  }
+
+  const obj = world.eid2obj.get(eid);
+
+  if (obj.parent === null) {
+    return false;
+  }
+
+  const parent = obj.parent;
+
+  if (parent.eid === undefined) {
+    return false;
+  }
+
+  return isPinned(parent.eid);
+}
+
 function grab(world, userinput, queryHovered, held, grabPath) {
   const hovered = queryHovered(world)[0];
-  const isEntityPinned = isPinned(hovered) || isAEntityPinned(world, hovered);
+  let isEntityPinned = isPinned(hovered) || isAEntityPinned(world, hovered);
+
+  // Special path for Dropped/Pasted Media with new loader enabled
+  if (!isEntityPinned && hasComponent(world, LoadedByMediaLoader, hovered)) {
+    isEntityPinned = isParentPinned(world, hovered);
+  }
 
   if (
     hovered &&