diff --git a/source/isaaclab/isaaclab/sim/prims/xform_prim.py b/source/isaaclab/isaaclab/sim/prims/xform_prim.py
index 607f864453f..3eca854b2b9 100644
--- a/source/isaaclab/isaaclab/sim/prims/xform_prim.py
+++ b/source/isaaclab/isaaclab/sim/prims/xform_prim.py
@@ -228,6 +228,24 @@ def _to_numpy(self, value: torch.Tensor | np.ndarray | Sequence[float] | None) -
         else:
             return np.array(value)
 
+    @staticmethod
+    def _world_to_local_tq(prim: Usd.Prim, world_t: Gf.Vec3d, world_q: Gf.Quatd) -> tuple[Gf.Vec3d, Gf.Quatd]:
+        """Convert desired world (t,q) into local (t,q) wrt prim's parent."""
+        time = Usd.TimeCode.Default()
+        parent = prim.GetParent()
+        if parent and parent.IsValid():
+            parent_w = UsdGeom.Xformable(parent).ComputeLocalToWorldTransform(time)
+        else:
+            parent_w = Gf.Matrix4d(1.0)
+
+        world_m = Gf.Matrix4d(1.0)
+        world_m.SetRotate(world_q)
+        world_m.SetTranslateOnly(world_t)
+
+        local_m = parent_w.GetInverse() * world_m
+        local_tf = Gf.Transform(local_m)
+        return local_tf.GetTranslation(), local_tf.GetRotation().GetQuat()
+
     def set_world_poses(
         self,
         positions: torch.Tensor | np.ndarray | Sequence[float] | None = None,
@@ -282,19 +300,26 @@ def set_world_poses(
                 orient_op = xformable.AddXformOp(UsdGeom.XformOp.TypeOrient, UsdGeom.XformOp.PrecisionDouble)
 
             # Set position
-            if pos_np is not None:
-                # Convert numpy values to Python floats for USD
-                translate_op.Set(Gf.Vec3d(float(pos_np[idx, 0]), float(pos_np[idx, 1]), float(pos_np[idx, 2])))
-
-            # Set orientation
-            if orient_np is not None:
-                # Convert numpy values to Python floats for USD
-                w = float(orient_np[idx, 0])
-                x = float(orient_np[idx, 1])
-                y = float(orient_np[idx, 2])
-                z = float(orient_np[idx, 3])
-                quat = Gf.Quatd(w, Gf.Vec3d(x, y, z))
-                orient_op.Set(quat)
+            if pos_np is not None or orient_np is not None:
+                current_world = xformable.ComputeLocalToWorldTransform(Usd.TimeCode.Default())
+
+                if pos_np is not None:
+                    world_t = Gf.Vec3d(float(pos_np[idx, 0]), float(pos_np[idx, 1]), float(pos_np[idx, 2]))
+                else:
+                    world_t = current_world.ExtractTranslation()
+
+                if orient_np is not None:
+                    w = float(orient_np[idx, 0])
+                    x = float(orient_np[idx, 1])
+                    y = float(orient_np[idx, 2])
+                    z = float(orient_np[idx, 3])
+                    world_q = Gf.Quatd(w, Gf.Vec3d(x, y, z))
+                else:
+                    world_q = current_world.ExtractRotation().GetQuat()
+
+                local_t, local_q = self._world_to_local_tq(prim, world_t, world_q)
+                translate_op.Set(local_t)
+                orient_op.Set(local_q)
 
     def set_local_poses(
         self,
@@ -310,7 +335,59 @@ def set_local_poses(
             indices: Indices of prims to update. If None, all prims are updated.
         """
         # For local poses, we use the same method since USD xform ops are inherently local
-        self.set_world_poses(positions=translations, orientations=orientations, indices=indices)
+        # Convert to numpy
+        trans_np = self._to_numpy(translations)
+        orient_np = self._to_numpy(orientations)
+        indices_np = self._to_numpy(indices)
+
+        # Determine which prims to update
+        if indices_np is None:
+            prim_indices = range(self._count)
+        else:
+            prim_indices = indices_np.astype(int)
+
+        # Broadcast if needed
+        if trans_np is not None:
+            if trans_np.ndim == 1:
+                trans_np = np.tile(trans_np, (len(prim_indices), 1))
+
+        if orient_np is not None:
+            if orient_np.ndim == 1:
+                orient_np = np.tile(orient_np, (len(prim_indices), 1))
+
+        # Update each prim
+        for idx, prim_idx in enumerate(prim_indices):
+            prim = self._prims[prim_idx]
+            xformable = UsdGeom.Xformable(prim)
+
+            # Get or create the translate op
+            translate_attr = prim.GetAttribute("xformOp:translate")
+            if translate_attr:
+                translate_op = UsdGeom.XformOp(translate_attr)
+            else:
+                translate_op = xformable.AddXformOp(UsdGeom.XformOp.TypeTranslate, UsdGeom.XformOp.PrecisionDouble)
+
+            # Get or create the orient op
+            orient_attr = prim.GetAttribute("xformOp:orient")
+            if orient_attr:
+                orient_op = UsdGeom.XformOp(orient_attr)
+            else:
+                orient_op = xformable.AddXformOp(UsdGeom.XformOp.TypeOrient, UsdGeom.XformOp.PrecisionDouble)
+
+            # Set translation
+            if trans_np is not None:
+                # Convert numpy values to Python floats for USD
+                translate_op.Set(Gf.Vec3d(float(trans_np[idx, 0]), float(trans_np[idx, 1]), float(trans_np[idx, 2])))
+
+            # Set orientation
+            if orient_np is not None:
+                # Convert numpy values to Python floats for USD
+                w = float(orient_np[idx, 0])
+                x = float(orient_np[idx, 1])
+                y = float(orient_np[idx, 2])
+                z = float(orient_np[idx, 3])
+                quat = Gf.Quatd(w, Gf.Vec3d(x, y, z))
+                orient_op.Set(quat)
 
     def set_local_scales(
         self,