diff --git a/source/blender/io/usd/intern/usd_reader_material.cc b/source/blender/io/usd/intern/usd_reader_material.cc
index 4619643ab4e..2bdae4aa87b 100644
--- a/source/blender/io/usd/intern/usd_reader_material.cc
+++ b/source/blender/io/usd/intern/usd_reader_material.cc
@@ -918,6 +918,33 @@ static void configure_displacement(const pxr::UsdShadeShader &usd_shader, bNode
   ((bNodeSocketValueFloat *)sock_scale->default_value)->value = scale_avg;
 }
 
+static pxr::UsdShadeShader node_graph_output_source(const pxr::UsdShadeNodeGraph &node_graph,
+                                                    const pxr::TfToken &output_name)
+{
+  // Check that we have a legit output
+  pxr::UsdShadeOutput output = node_graph.GetOutput(output_name);
+  if (!output) {
+    return pxr::UsdShadeShader();
+  }
+
+  pxr::UsdShadeAttributeVector attrs = pxr::UsdShadeUtils::GetValueProducingAttributes(output);
+  if (attrs.empty()) {
+    return pxr::UsdShadeShader();
+  }
+
+  pxr::UsdAttribute attr = attrs[0];
+
+  std::pair<pxr::TfToken, pxr::UsdShadeAttributeType> name_and_type =
+      pxr::UsdShadeUtils::GetBaseNameAndType(attr.GetName());
+
+  pxr::UsdShadeShader shader(attr.GetPrim());
+  if (name_and_type.second != pxr::UsdShadeAttributeType::Output || !shader) {
+    return pxr::UsdShadeShader();
+  }
+
+  return shader;
+}
+
 bool USDMaterialReader::follow_connection(const pxr::UsdShadeInput &usd_input,
                                           bNode *dest_node,
                                           const StringRefNull dest_socket_name,
@@ -936,11 +963,19 @@ bool USDMaterialReader::follow_connection(const pxr::UsdShadeInput &usd_input,
 
   usd_input.GetConnectedSource(&source, &source_name, &source_type);
 
-  if (!(source && source.GetPrim().IsA<pxr::UsdShadeShader>())) {
+  if (!source) {
     return false;
   }
 
-  pxr::UsdShadeShader source_shader(source.GetPrim());
+  const pxr::UsdPrim source_prim = source.GetPrim();
+  pxr::UsdShadeShader source_shader;
+  if (source_prim.IsA<pxr::UsdShadeShader>()) {
+    source_shader = pxr::UsdShadeShader(source_prim);
+  }
+  else if (source_prim.IsA<pxr::UsdShadeNodeGraph>()) {
+    pxr::UsdShadeNodeGraph node_graph(source_prim);
+    source_shader = node_graph_output_source(node_graph, source_name);
+  }
 
   if (!source_shader) {
     return false;
@@ -948,9 +983,9 @@ bool USDMaterialReader::follow_connection(const pxr::UsdShadeInput &usd_input,
 
   pxr::TfToken shader_id;
   if (!source_shader.GetShaderId(&shader_id)) {
-    CLOG_ERROR(&LOG,
-               "Couldn't get shader id for source shader %s",
-               source_shader.GetPath().GetAsString().c_str());
+    CLOG_WARN(&LOG,
+              "Couldn't get shader id for source shader %s",
+              source_shader.GetPath().GetAsString().c_str());
     return false;
   }
 
diff --git a/tests/files/usd/usd_materials_node_graph.usda b/tests/files/usd/usd_materials_node_graph.usda
new file mode 100644
index 00000000000..ec6794edbb3
--- /dev/null
+++ b/tests/files/usd/usd_materials_node_graph.usda
@@ -0,0 +1,91 @@
+#usda 1.0
+(
+    defaultPrim = "root"
+    doc = "Blender v4.5.0 Beta"
+    metersPerUnit = 1
+    upAxis = "Z"
+)
+
+def Xform "root" (
+    customData = {
+        dictionary Blender = {
+            bool generated = 1
+        }
+    }
+)
+{
+    def Xform "Cube"
+    {
+        def Mesh "Cube" (
+            active = true
+            prepend apiSchemas = ["MaterialBindingAPI"]
+        )
+        {
+            uniform bool doubleSided = 1
+            float3[] extent = [(-1, -1, -1), (1, 1, 1)]
+            int[] faceVertexCounts = [4, 4, 4, 4, 4, 4]
+            int[] faceVertexIndices = [0, 4, 6, 2, 3, 2, 6, 7, 7, 6, 4, 5, 5, 1, 3, 7, 1, 0, 2, 3, 5, 4, 0, 1]
+            rel material:binding = </root/_materials/Material>
+            normal3f[] normals = [(0, 0, 1), (0, 0, 1), (0, 0, 1), (0, 0, 1), (0, -1, 0), (0, -1, 0), (0, -1, 0), (0, -1, 0), (-1, 0, 0), (-1, 0, 0), (-1, 0, 0), (-1, 0, 0), (0, 0, -1), (0, 0, -1), (0, 0, -1), (0, 0, -1), (1, 0, 0), (1, 0, 0), (1, 0, 0), (1, 0, 0), (0, 1, 0), (0, 1, 0), (0, 1, 0), (0, 1, 0)] (
+                interpolation = "faceVarying"
+            )
+            point3f[] points = [(1, 1, 1), (1, 1, -1), (1, -1, 1), (1, -1, -1), (-1, 1, 1), (-1, 1, -1), (-1, -1, 1), (-1, -1, -1)]
+            texCoord2f[] primvars:st = [(0.625, 0.5), (0.875, 0.5), (0.875, 0.75), (0.625, 0.75), (0.375, 0.75), (0.625, 0.75), (0.625, 1), (0.375, 1), (0.375, 0), (0.625, 0), (0.625, 0.25), (0.375, 0.25), (0.125, 0.5), (0.375, 0.5), (0.375, 0.75), (0.125, 0.75), (0.375, 0.5), (0.625, 0.5), (0.625, 0.75), (0.375, 0.75), (0.375, 0.25), (0.625, 0.25), (0.625, 0.5), (0.375, 0.5)] (
+                interpolation = "faceVarying"
+            )
+            uniform token subdivisionScheme = "none"
+        }
+    }
+
+    def Scope "_materials"
+    {
+        def Material "Material"
+        {
+            token outputs:surface.connect = </root/_materials/Material/Principled_BSDF.outputs:surface>
+
+            def Shader "Principled_BSDF"
+            {
+                uniform token info:id = "UsdPreviewSurface"
+                float inputs:clearcoat = 0
+                float inputs:clearcoatRoughness = 0.03
+                color3f inputs:diffuseColor.connect = </root/_materials/Material/node_graph_BaseColor.outputs:rgb>
+                float inputs:ior = 1.45
+                float inputs:metallic = 0
+                float inputs:opacity = 1
+                float inputs:roughness = 0.5
+                float inputs:specular = 0.5
+                token outputs:surface
+            }
+
+            def NodeGraph "node_graph_BaseColor" (
+                prepend references = </root/_materials/node_graph_BaseColor>
+            )
+            {
+            }
+        }
+
+        def NodeGraph "node_graph_BaseColor"
+        {
+            string inputs:frame:st = "st"
+            float3 outputs:rgb.connect = </root/_materials/node_graph_BaseColor/node_graph_BaseColor.outputs:rgb>
+
+            def Shader "node_graph_BaseColor"
+            {
+                uniform token info:id = "UsdUVTexture"
+                asset inputs:file = @./textures/test_single.png@
+                float2 inputs:st.connect = </root/_materials/node_graph_BaseColor/PrimvarReader_st.outputs:result>
+                token inputs:wrapS = "repeat"
+                token inputs:wrapT = "repeat"
+                float3 outputs:rgb
+            }
+
+            def Shader "PrimvarReader_st"
+            {
+                uniform token info:id = "UsdPrimvarReader_float2"
+                string inputs:varname.connect = </root/_materials/node_graph_BaseColor.inputs:frame:st>
+                float2 outputs:result
+            }
+        }
+    }
+}
+
diff --git a/tests/python/bl_usd_import_test.py b/tests/python/bl_usd_import_test.py
index ad35fa69fb2..f6a76081350 100644
--- a/tests/python/bl_usd_import_test.py
+++ b/tests/python/bl_usd_import_test.py
@@ -533,6 +533,17 @@ class USDImportTest(AbstractUSDTest):
         assert_attribute(mat, "f_vec", "Vector", "Normal")
         assert_attribute(mat, "f_float", "Fac", "Roughness")
 
+    def test_import_material_node_graph(self):
+        """Verify we can follow connections through NodeGraph defs."""
+
+        testfile = str(self.testdir / "usd_materials_node_graph.usda")
+        res = bpy.ops.wm.usd_import(filepath=testfile)
+        self.assertEqual({'FINISHED'}, res)
+
+        # If NodeGraph traversal is missing or broken, the Image Texture and UV Map nodes will be missing
+        mat = bpy.data.materials["Material"]
+        self.assert_all_nodes_present(mat, ["Principled BSDF", "Image Texture", "UV Map", "Material Output"])
+
     def test_import_shader_varname_with_connection(self):
         """Test importing USD shader where uv primvar is a connection"""