diff --git a/src/bonsai/bonsai/tool/model.py b/src/bonsai/bonsai/tool/model.py
index c55b2c6b37..4d2bfcd19f 100644
--- a/src/bonsai/bonsai/tool/model.py
+++ b/src/bonsai/bonsai/tool/model.py
@@ -48,7 +48,7 @@ from bonsai.bim import import_ifc
 
 from bonsai.bim.module.model.data import AuthoringData, RailingData, RoofData, WindowData, DoorData
 from bonsai.bim.module.model.opening import FilledOpeningGenerator
-from ifcopenshell.util.shape_builder import ShapeBuilder
+from ifcopenshell.util.shape_builder import ShapeBuilder, np_to_3d
 from typing import Optional, Union, TypeVar, Any, Iterable, Literal, TYPE_CHECKING, Sequence, TypedDict
 
 T = TypeVar("T")
@@ -2126,7 +2126,7 @@ class Model(bonsai.core.tool.Model):
         assert isinstance(obj.data, bpy.types.Mesh)
         points = [m @ np.array(v.co.to_4d()) for v in obj.data.vertices[0:2]]
         ifcopenshell.api.grid.create_axis_curve(
-            tool.Ifc.get(), p1=points[0], p2=points[1], is_si=True, grid_axis=grid_axis
+            tool.Ifc.get(), p1=np_to_3d(points[0]), p2=np_to_3d(points[1]), is_si=True, grid_axis=grid_axis
         )
 
     @classmethod
diff --git a/src/ifcopenshell-python/ifcopenshell/api/grid/create_axis_curve.py b/src/ifcopenshell-python/ifcopenshell/api/grid/create_axis_curve.py
index 8aedf889ef..b87eea94d0 100644
--- a/src/ifcopenshell-python/ifcopenshell/api/grid/create_axis_curve.py
+++ b/src/ifcopenshell-python/ifcopenshell/api/grid/create_axis_curve.py
@@ -22,7 +22,7 @@ import ifcopenshell.util.element
 import ifcopenshell.util.unit
 import ifcopenshell.util.placement
 import numpy as np
-from ifcopenshell.util.shape_builder import VectorType, V, ifc_safe_vector_type
+from ifcopenshell.util.shape_builder import VectorType, V, ifc_safe_vector_type, np_apply_matrix
 
 
 def create_axis_curve(
@@ -38,6 +38,10 @@ def create_axis_curve(
     An IFC grid will have a minimum of two axes (typically perpendicular). Each
     axis will then have a line which represents the extents of the axis.
 
+    Points are provided as 3D coordinates in world space.
+    During axis creation, the coordinates will be localized relative to IfcGrid
+    and saved as 2D.
+
     :param p1: The first point of the grid axis
     :param p2: The second point of the grid axis
     :param grid_axis: The IfcGridAxis element to add geometry to.
@@ -61,19 +65,19 @@ def create_axis_curve(
             model, p1=np.array((0., 0., 0.)), p2=np.array((0., 10., 0.)), grid_axis=axis_1)
     """
     existing_curve = grid_axis.AxisCurve
-    p1, p2 = V(p1), V(p2)
+    points = V([p1, p2])
     if is_si:
         unit_scale = ifcopenshell.util.unit.calculate_unit_scale(file)
-        p1 /= unit_scale
-        p2 /= unit_scale
+        points /= unit_scale
 
-    grid = [i for i in file.get_inverse(grid_axis) if i.is_a("IfcGrid")][0]
+    grid = next(i for i in file.get_inverse(grid_axis) if i.is_a("IfcGrid"))
     grid_matrix_i = np.linalg.inv(ifcopenshell.util.placement.get_local_placement(grid.ObjectPlacement))
+    p1, p2 = ifc_safe_vector_type(np_apply_matrix(points, grid_matrix_i))
     grid_axis.AxisCurve = file.create_entity(
         "IfcPolyline",
         (
-            file.create_entity("IfcCartesianPoint", ifc_safe_vector_type(grid_matrix_i @ p1)),
-            file.create_entity("IfcCartesianPoint", ifc_safe_vector_type(grid_matrix_i @ p2)),
+            file.create_entity("IfcCartesianPoint", p1[:2]),
+            file.create_entity("IfcCartesianPoint", p2[:2]),
         ),
     )
 
diff --git a/src/ifcopenshell-python/ifcopenshell/util/shape_builder.py b/src/ifcopenshell-python/ifcopenshell/util/shape_builder.py
index 47926c7e0a..e352187843 100644
--- a/src/ifcopenshell-python/ifcopenshell/util/shape_builder.py
+++ b/src/ifcopenshell-python/ifcopenshell/util/shape_builder.py
@@ -129,6 +129,16 @@ def np_to_4x4(matrix_3x3: np.ndarray) -> np.ndarray:
     return matrix_4x4
 
 
+def np_apply_matrix(vectors: SequenceOfVectors, matrix: npt.NDArray) -> npt.NDArray:
+    """
+    :param vectors: Nx3 array of vectors.
+    :param matrix: 4x4 transformation matrix.
+    """
+    m3x3 = matrix[:3, :3]
+    translation = matrix[:3, 3]
+    return vectors @ m3x3.T + translation
+
+
 def np_angle(a: VectorType, b: VectorType) -> float:
     """Get angle between vectors in radians.
     Designed to work similar to `Vector.angle`.