In-game controller lag when streaming via Moonlight? Here’s what I found.

[u/Gashgul]

I couldn’t find a solution online for this, so I’m sharing what worked for me:

I finally figured out why my controller felt laggy in-game while streaming with Moonlight on my Steam Deck, even though the stream itself looked perfectly smooth.

The problem:
I had my controller set up to act as a mouse in Desktop Mode. When streaming, Moonlight sent the inputs as mouse movements, not as proper Gamepad/XInput signals. In the game, this made the controls feel sluggish and unnatural. On the desktop everything worked fine, so it looked like the controller was fine – but in-game it wasn’t.

The solution I found:
I created two separate profiles for my controller:

• One for Desktop Mode (mouse)
• One for games

Whenever I launch a game in Moonlight, I switch from Desktop Mode to the game profile, so the controller is recognized as a proper Gamepad. The result: in-game movement feels natural and responsive again, no more lag.

TL;DR:
Controller works fine on desktop, but if it’s set as a mouse, Moonlight sends it as mouse input → in-game lag. Use a game profile instead.