diff --git a/python/3d/auto_generated/qgsphongmaterialsettings.sip.in b/python/3d/auto_generated/qgsphongmaterialsettings.sip.in
index b1e45aae953..59843cb3439 100644
--- a/python/3d/auto_generated/qgsphongmaterialsettings.sip.in
+++ b/python/3d/auto_generated/qgsphongmaterialsettings.sip.in
@@ -73,6 +73,8 @@ Reads settings from a DOM element
 Writes settings to a DOM element
 %End
 
+    bool operator==( const QgsPhongMaterialSettings &other ) const;
+
 };
 
 
diff --git a/src/3d/qgs3dmapscene.cpp b/src/3d/qgs3dmapscene.cpp
index e852eeb4dc7..6d674e889d7 100644
--- a/src/3d/qgs3dmapscene.cpp
+++ b/src/3d/qgs3dmapscene.cpp
@@ -92,6 +92,7 @@ Qgs3DMapScene::Qgs3DMapScene( const Qgs3DMapSettings &map, QgsAbstract3DEngine *
   connect( &map, &Qgs3DMapSettings::mapTileResolutionChanged, this, &Qgs3DMapScene::createTerrain );
   connect( &map, &Qgs3DMapSettings::maxTerrainScreenErrorChanged, this, &Qgs3DMapScene::createTerrain );
   connect( &map, &Qgs3DMapSettings::maxTerrainGroundErrorChanged, this, &Qgs3DMapScene::createTerrain );
+  connect( &map, &Qgs3DMapSettings::terrainShadingChanged, this, &Qgs3DMapScene::createTerrain );
 
   // create entities of renderers
 
diff --git a/src/3d/qgs3dmapsettings.cpp b/src/3d/qgs3dmapsettings.cpp
index 533bea6f045..765b72b2f4e 100644
--- a/src/3d/qgs3dmapsettings.cpp
+++ b/src/3d/qgs3dmapsettings.cpp
@@ -37,6 +37,8 @@ Qgs3DMapSettings::Qgs3DMapSettings( const Qgs3DMapSettings &other )
   , mMapTileResolution( other.mMapTileResolution )
   , mMaxTerrainScreenError( other.mMaxTerrainScreenError )
   , mMaxTerrainGroundError( other.mMaxTerrainGroundError )
+  , mTerrainShadingEnabled( other.mTerrainShadingEnabled )
+  , mTerrainShadingMaterial( other.mTerrainShadingMaterial )
   , mShowTerrainBoundingBoxes( other.mShowTerrainBoundingBoxes )
   , mShowTerrainTileInfo( other.mShowTerrainTileInfo )
   , mShowCameraViewCenter( other.mShowCameraViewCenter )
@@ -79,6 +81,10 @@ void Qgs3DMapSettings::readXml( const QDomElement &elem, const QgsReadWriteConte
   mMapTileResolution = elemTerrain.attribute( QStringLiteral( "texture-size" ), QStringLiteral( "512" ) ).toInt();
   mMaxTerrainScreenError = elemTerrain.attribute( QStringLiteral( "max-terrain-error" ), QStringLiteral( "3" ) ).toFloat();
   mMaxTerrainGroundError = elemTerrain.attribute( QStringLiteral( "max-ground-error" ), QStringLiteral( "1" ) ).toFloat();
+  mTerrainShadingEnabled = elemTerrain.attribute( QStringLiteral( "shading-enabled" ), QStringLiteral( "0" ) ).toInt();
+  QDomElement elemTerrainShadingMaterial = elemTerrain.firstChildElement( QStringLiteral( "shading-material" ) );
+  if ( !elemTerrainShadingMaterial.isNull() )
+    mTerrainShadingMaterial.readXml( elemTerrainShadingMaterial );
   mShowLabels = elemTerrain.attribute( QStringLiteral( "show-labels" ), QStringLiteral( "0" ) ).toInt();
   QDomElement elemMapLayers = elemTerrain.firstChildElement( QStringLiteral( "layers" ) );
   QDomElement elemMapLayer = elemMapLayers.firstChildElement( QStringLiteral( "layer" ) );
@@ -169,6 +175,10 @@ QDomElement Qgs3DMapSettings::writeXml( QDomDocument &doc, const QgsReadWriteCon
   elemTerrain.setAttribute( QStringLiteral( "texture-size" ), mMapTileResolution );
   elemTerrain.setAttribute( QStringLiteral( "max-terrain-error" ), QString::number( mMaxTerrainScreenError ) );
   elemTerrain.setAttribute( QStringLiteral( "max-ground-error" ), QString::number( mMaxTerrainGroundError ) );
+  elemTerrain.setAttribute( QStringLiteral( "shading-enabled" ), mTerrainShadingEnabled ? 1 : 0 );
+  QDomElement elemTerrainShadingMaterial = doc.createElement( QStringLiteral( "shading-material" ) );
+  mTerrainShadingMaterial.writeXml( elemTerrainShadingMaterial );
+  elemTerrain.appendChild( elemTerrainShadingMaterial );
   elemTerrain.setAttribute( QStringLiteral( "show-labels" ), mShowLabels ? 1 : 0 );
   QDomElement elemMapLayers = doc.createElement( QStringLiteral( "layers" ) );
   Q_FOREACH ( const QgsMapLayerRef &layerRef, mLayers )
@@ -370,6 +380,24 @@ void Qgs3DMapSettings::setTerrainGenerator( QgsTerrainGenerator *gen )
   emit terrainGeneratorChanged();
 }
 
+void Qgs3DMapSettings::setTerrainShadingEnabled( bool enabled )
+{
+  if ( mTerrainShadingEnabled == enabled )
+    return;
+
+  mTerrainShadingEnabled = enabled;
+  emit terrainShadingChanged();
+}
+
+void Qgs3DMapSettings::setTerrainShadingMaterial( const QgsPhongMaterialSettings &material )
+{
+  if ( mTerrainShadingMaterial == material )
+    return;
+
+  mTerrainShadingMaterial = material;
+  emit terrainShadingChanged();
+}
+
 void Qgs3DMapSettings::setRenderers( const QList<QgsAbstract3DRenderer *> &renderers )
 {
   mRenderers = renderers;
diff --git a/src/3d/qgs3dmapsettings.h b/src/3d/qgs3dmapsettings.h
index 24d2dd010b9..b9032672b2b 100644
--- a/src/3d/qgs3dmapsettings.h
+++ b/src/3d/qgs3dmapsettings.h
@@ -24,6 +24,7 @@
 
 #include "qgscoordinatereferencesystem.h"
 #include "qgsmaplayerref.h"
+#include "qgsphongmaterialsettings.h"
 #include "qgsterraingenerator.h"
 #include "qgsvector3d.h"
 
@@ -200,6 +201,35 @@ class _3D_EXPORT Qgs3DMapSettings : public QObject
     //! Returns terrain generator. It takes care of producing terrain tiles from the input data.
     QgsTerrainGenerator *terrainGenerator() const { return mTerrainGenerator.get(); }
 
+    /**
+     * Sets whether terrain shading is enabled.
+     * \sa isTerrainShadingEnabled()
+     * \since QGIS 3.6
+     */
+    void setTerrainShadingEnabled( bool enabled );
+
+    /**
+     * Returns whether terrain shading is enabled. When enabled, in addition to the terrain texture
+     * generated from the map, the terrain rendering will take into account position of the lights,
+     * terrain normals and terrain shading material (ambient and specular colors, shininess).
+     * \since QGIS 3.6
+     */
+    bool isTerrainShadingEnabled() const { return mTerrainShadingEnabled; }
+
+    /**
+     * Sets terrain shading material.
+     * \sa terrainShadingMaterial()
+     * \since QGIS 3.6
+     */
+    void setTerrainShadingMaterial( const QgsPhongMaterialSettings &material );
+
+    /**
+     * Returns terrain shading material. Diffuse color component is ignored since the diffuse component
+     * is provided by 2D rendered map texture. Only used when isTerrainShadingEnabled() is true.
+     * \since QGIS 3.6
+     */
+    QgsPhongMaterialSettings terrainShadingMaterial() const { return mTerrainShadingMaterial; }
+
     //! Sets list of extra 3D renderers to use in the scene. Takes ownership of the objects.
     void setRenderers( const QList<QgsAbstract3DRenderer *> &renderers SIP_TRANSFER );
     //! Returns list of extra 3D renderers
@@ -261,6 +291,12 @@ class _3D_EXPORT Qgs3DMapSettings : public QObject
     void maxTerrainScreenErrorChanged();
     //! Emitted when the maximum terrain ground error has changed
     void maxTerrainGroundErrorChanged();
+
+    /**
+     * Emitted when terrain shading enabled flag or terrain shading material has changed
+     * \since QGIS 3.6
+     */
+    void terrainShadingChanged();
     //! Emitted when the flag whether terrain's bounding boxes are shown has changed
     void showTerrainBoundingBoxesChanged();
     //! Emitted when the flag whether terrain's tile info is shown has changed
@@ -285,6 +321,8 @@ class _3D_EXPORT Qgs3DMapSettings : public QObject
     int mMapTileResolution = 512;   //!< Size of map textures of tiles in pixels (width/height)
     float mMaxTerrainScreenError = 3.f;   //!< Maximum allowed terrain error in pixels (determines when tiles are switched to more detailed ones)
     float mMaxTerrainGroundError = 1.f;  //!< Maximum allowed horizontal map error in map units (determines how many zoom levels will be used)
+    bool mTerrainShadingEnabled = false;   //!< Whether terrain should be shaded taking lights into account
+    QgsPhongMaterialSettings mTerrainShadingMaterial;  //!< Material to use for the terrain (if shading is enabled). Diffuse color is ignored.
     bool mShowTerrainBoundingBoxes = false;  //!< Whether to show bounding boxes of entities - useful for debugging
     bool mShowTerrainTileInfo = false;  //!< Whether to draw extra information about terrain tiles to the textures - useful for debugging
     bool mShowCameraViewCenter = false;  //!< Whether to show camera view center as a sphere - useful for debugging
diff --git a/src/3d/qgsphongmaterialsettings.h b/src/3d/qgsphongmaterialsettings.h
index 851dd75bc55..531a61a9a1b 100644
--- a/src/3d/qgsphongmaterialsettings.h
+++ b/src/3d/qgsphongmaterialsettings.h
@@ -65,6 +65,14 @@ class _3D_EXPORT QgsPhongMaterialSettings
     //! Writes settings to a DOM element
     void writeXml( QDomElement &elem ) const;
 
+    bool operator==( const QgsPhongMaterialSettings &other ) const
+    {
+      return mAmbient == other.mAmbient &&
+             mDiffuse == other.mDiffuse &&
+             mSpecular == other.mSpecular &&
+             mShininess == other.mShininess;
+    }
+
   private:
     QColor mAmbient;
     QColor mDiffuse;
diff --git a/src/3d/terrain/qgsdemterraintileloader_p.cpp b/src/3d/terrain/qgsdemterraintileloader_p.cpp
index e0bfcb2ae38..b3dee198b25 100644
--- a/src/3d/terrain/qgsdemterraintileloader_p.cpp
+++ b/src/3d/terrain/qgsdemterraintileloader_p.cpp
@@ -94,7 +94,7 @@ Qt3DCore::QEntity *QgsDemTerrainTileLoader::createEntity( Qt3DCore::QEntity *par
 
   // create material
 
-  createTextureComponent( entity );
+  createTextureComponent( entity, map.isTerrainShadingEnabled(), map.terrainShadingMaterial() );
 
   // create transform
 
diff --git a/src/3d/terrain/qgsflatterraingenerator.cpp b/src/3d/terrain/qgsflatterraingenerator.cpp
index c404d79393f..7600c69a6de 100644
--- a/src/3d/terrain/qgsflatterraingenerator.cpp
+++ b/src/3d/terrain/qgsflatterraingenerator.cpp
@@ -52,7 +52,8 @@ Qt3DCore::QEntity *FlatTerrainChunkLoader::createEntity( Qt3DCore::QEntity *pare
 
   // create material
 
-  createTextureComponent( entity );
+  const Qgs3DMapSettings &map = terrain()->map3D();
+  createTextureComponent( entity, map.isTerrainShadingEnabled(), map.terrainShadingMaterial() );
 
   // create transform
 
diff --git a/src/3d/terrain/qgsterraintileloader_p.cpp b/src/3d/terrain/qgsterraintileloader_p.cpp
index 0a195de468f..ac0d25d3b8b 100644
--- a/src/3d/terrain/qgsterraintileloader_p.cpp
+++ b/src/3d/terrain/qgsterraintileloader_p.cpp
@@ -25,11 +25,8 @@
 
 #include <Qt3DRender/QTexture>
 
-#if QT_VERSION >= 0x050900
 #include <Qt3DExtras/QTextureMaterial>
-#else
 #include <Qt3DExtras/QDiffuseMapMaterial>
-#endif
 
 #include "quantizedmeshterraingenerator.h"
 
@@ -67,23 +64,32 @@ void QgsTerrainTileLoader::loadTexture()
   mTextureJobId = mTerrain->textureGenerator()->render( mExtentMapCrs, mTileDebugText );
 }
 
-void QgsTerrainTileLoader::createTextureComponent( QgsTerrainTileEntity *entity )
+void QgsTerrainTileLoader::createTextureComponent( QgsTerrainTileEntity *entity, bool isShadingEnabled, const QgsPhongMaterialSettings &shadingMaterial )
 {
   Qt3DRender::QTexture2D *texture = new Qt3DRender::QTexture2D( entity );
   QgsTerrainTextureImage *textureImage = new QgsTerrainTextureImage( mTextureImage, mExtentMapCrs, mTileDebugText );
   texture->addTextureImage( textureImage );
   texture->setMinificationFilter( Qt3DRender::QTexture2D::Linear );
   texture->setMagnificationFilter( Qt3DRender::QTexture2D::Linear );
-  Qt3DExtras::QTextureMaterial *material = nullptr;
-#if QT_VERSION >= 0x050900
-  material = new Qt3DExtras::QTextureMaterial;
-  material->setTexture( texture );
-#else
-  material = new Qt3DExtras::QDiffuseMapMaterial;
-  material->setDiffuse( texture );
-  material->setShininess( 1 );
-  material->setAmbient( Qt::white );
-#endif
+
+  Qt3DRender::QMaterial *material = nullptr;
+  if ( isShadingEnabled )
+  {
+    Qt3DExtras::QDiffuseMapMaterial *diffuseMapMaterial;
+    diffuseMapMaterial = new Qt3DExtras::QDiffuseMapMaterial;
+    diffuseMapMaterial->setDiffuse( texture );
+    diffuseMapMaterial->setAmbient( shadingMaterial.ambient() );
+    diffuseMapMaterial->setSpecular( shadingMaterial.specular() );
+    diffuseMapMaterial->setShininess( shadingMaterial.shininess() );
+    material = diffuseMapMaterial;
+  }
+  else
+  {
+    Qt3DExtras::QTextureMaterial *textureMaterial = new Qt3DExtras::QTextureMaterial;
+    textureMaterial->setTexture( texture );
+    material = textureMaterial;
+  }
+
   entity->setTextureImage( textureImage );
   entity->addComponent( material ); // takes ownership if the component has no parent
 }
diff --git a/src/3d/terrain/qgsterraintileloader_p.h b/src/3d/terrain/qgsterraintileloader_p.h
index ffd3001e90a..8a1d7915b09 100644
--- a/src/3d/terrain/qgsterraintileloader_p.h
+++ b/src/3d/terrain/qgsterraintileloader_p.h
@@ -32,6 +32,7 @@
 #include <QImage>
 #include "qgsrectangle.h"
 
+class QgsPhongMaterialSettings;
 class QgsTerrainEntity;
 class QgsTerrainTileEntity;
 
@@ -54,7 +55,7 @@ class QgsTerrainTileLoader : public QgsChunkLoader
     //! Starts asynchronous rendering of map texture
     void loadTexture();
     //! Creates material component for the entity with the rendered map as a texture
-    void createTextureComponent( QgsTerrainTileEntity *entity );
+    void createTextureComponent( QgsTerrainTileEntity *entity, bool isShadingEnabled, const QgsPhongMaterialSettings &shadingMaterial );
     //! Gives access to the terain entity
     QgsTerrainEntity *terrain() { return mTerrain; }
 
diff --git a/src/app/3d/qgs3dmapconfigwidget.cpp b/src/app/3d/qgs3dmapconfigwidget.cpp
index cdf35ac1504..4986ba1c0cb 100644
--- a/src/app/3d/qgs3dmapconfigwidget.cpp
+++ b/src/app/3d/qgs3dmapconfigwidget.cpp
@@ -69,6 +69,10 @@ Qgs3DMapConfigWidget::Qgs3DMapConfigWidget( Qgs3DMapSettings *map, QgsMapCanvas
   chkShowBoundingBoxes->setChecked( mMap->showTerrainBoundingBoxes() );
   chkShowCameraViewCenter->setChecked( mMap->showCameraViewCenter() );
 
+  groupTerrainShading->setChecked( mMap->isTerrainShadingEnabled() );
+  widgetTerrainMaterial->setDiffuseVisible( false );
+  widgetTerrainMaterial->setMaterial( mMap->terrainShadingMaterial() );
+
   connect( cboTerrainLayer, static_cast<void ( QComboBox::* )( int )>( &QgsMapLayerComboBox::currentIndexChanged ), this, &Qgs3DMapConfigWidget::onTerrainLayerChanged );
   connect( spinMapResolution, static_cast<void ( QSpinBox::* )( int )>( &QSpinBox::valueChanged ), this, &Qgs3DMapConfigWidget::updateMaxZoomLevel );
   connect( spinGroundError, static_cast<void ( QDoubleSpinBox::* )( double )>( &QDoubleSpinBox::valueChanged ), this, &Qgs3DMapConfigWidget::updateMaxZoomLevel );
@@ -134,6 +138,9 @@ void Qgs3DMapConfigWidget::apply()
   mMap->setShowTerrainTilesInfo( chkShowTileInfo->isChecked() );
   mMap->setShowTerrainBoundingBoxes( chkShowBoundingBoxes->isChecked() );
   mMap->setShowCameraViewCenter( chkShowCameraViewCenter->isChecked() );
+
+  mMap->setTerrainShadingEnabled( groupTerrainShading->isChecked() );
+  mMap->setTerrainShadingMaterial( widgetTerrainMaterial->material() );
 }
 
 void Qgs3DMapConfigWidget::onTerrainLayerChanged()
diff --git a/src/app/3d/qgsphongmaterialwidget.cpp b/src/app/3d/qgsphongmaterialwidget.cpp
index 76d02d0cc70..fa30d028ed9 100644
--- a/src/app/3d/qgsphongmaterialwidget.cpp
+++ b/src/app/3d/qgsphongmaterialwidget.cpp
@@ -31,6 +31,17 @@ QgsPhongMaterialWidget::QgsPhongMaterialWidget( QWidget *parent )
   connect( spinShininess, static_cast<void ( QDoubleSpinBox::* )( double )>( &QDoubleSpinBox::valueChanged ), this, &QgsPhongMaterialWidget::changed );
 }
 
+void QgsPhongMaterialWidget::setDiffuseVisible( bool visible )
+{
+  label->setVisible( visible );
+  btnDiffuse->setVisible( visible );
+}
+
+bool QgsPhongMaterialWidget::isDiffuseVisible() const
+{
+  return btnDiffuse->isVisible();
+}
+
 void QgsPhongMaterialWidget::setMaterial( const QgsPhongMaterialSettings &material )
 {
   btnDiffuse->setColor( material.diffuse() );
diff --git a/src/app/3d/qgsphongmaterialwidget.h b/src/app/3d/qgsphongmaterialwidget.h
index 855f63d1283..596e298362b 100644
--- a/src/app/3d/qgsphongmaterialwidget.h
+++ b/src/app/3d/qgsphongmaterialwidget.h
@@ -30,6 +30,9 @@ class QgsPhongMaterialWidget : public QWidget, private Ui::PhongMaterialWidget
   public:
     explicit QgsPhongMaterialWidget( QWidget *parent = nullptr );
 
+    void setDiffuseVisible( bool visible );
+    bool isDiffuseVisible() const;
+
     void setMaterial( const QgsPhongMaterialSettings &material );
     QgsPhongMaterialSettings material() const;
 
diff --git a/src/ui/3d/map3dconfigwidget.ui b/src/ui/3d/map3dconfigwidget.ui
index 2cfa2f18b53..7b66de42051 100644
--- a/src/ui/3d/map3dconfigwidget.ui
+++ b/src/ui/3d/map3dconfigwidget.ui
@@ -7,7 +7,7 @@
     <x>0</x>
     <y>0</y>
     <width>691</width>
-    <height>830</height>
+    <height>1135</height>
    </rect>
   </property>
   <property name="windowTitle">
@@ -87,6 +87,21 @@
      </layout>
     </widget>
    </item>
+   <item>
+    <widget class="QgsCollapsibleGroupBox" name="groupTerrainShading">
+     <property name="title">
+      <string>Terrain shading</string>
+     </property>
+     <property name="checkable">
+      <bool>true</bool>
+     </property>
+     <layout class="QVBoxLayout" name="verticalLayout_2">
+      <item>
+       <widget class="QgsPhongMaterialWidget" name="widgetTerrainMaterial" native="true"/>
+      </item>
+     </layout>
+    </widget>
+   </item>
    <item>
     <layout class="QGridLayout" name="gridLayout_2">
      <item row="2" column="0">
@@ -224,6 +239,18 @@
    <extends>QSpinBox</extends>
    <header>qgsspinbox.h</header>
   </customwidget>
+  <customwidget>
+   <class>QgsPhongMaterialWidget</class>
+   <extends>QWidget</extends>
+   <header>qgsphongmaterialwidget.h</header>
+   <container>1</container>
+  </customwidget>
+  <customwidget>
+   <class>QgsCollapsibleGroupBox</class>
+   <extends>QGroupBox</extends>
+   <header>qgscollapsiblegroupbox.h</header>
+   <container>1</container>
+  </customwidget>
  </customwidgets>
  <tabstops>
   <tabstop>cboTerrainLayer</tabstop>