diff --git a/Packages/com.unity.inputsystem/CHANGELOG.md b/Packages/com.unity.inputsystem/CHANGELOG.md
index 21cddde19e..446a823257 100644
--- a/Packages/com.unity.inputsystem/CHANGELOG.md
+++ b/Packages/com.unity.inputsystem/CHANGELOG.md
@@ -18,7 +18,9 @@ however, it has to be formatted properly to pass verification tests.
 ### Fixed
 - An issue where a UITK MouseEvent was triggered when changing from Scene View to Game View in the Editor has been fixed. [ISXB-1671](https://issuetracker.unity3d.com/product/unity/issues/guid/ISXB-1671)
 - Fix documentation error in file AndroidGameController.cs mentioning a wrong controller. [DOCATT-9806]
-
+- Deferred auto-registration of processors, interactions and composite binding types referenced by `InputActionAsset`
+  to only happen once when an unresolved type reference is found in an action definition. This avoids reflective
+  type loading from assemblies for all cases where the Input System is not extended. (ISXB-1766).
 
 ## [1.16.0] - 2025-11-10
 
diff --git a/Packages/com.unity.inputsystem/InputSystem/InputManager.cs b/Packages/com.unity.inputsystem/InputSystem/InputManager.cs
index 30649e5269..947bd044a9 100644
--- a/Packages/com.unity.inputsystem/InputSystem/InputManager.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/InputManager.cs
@@ -1913,9 +1913,9 @@ private void InitializeActions()
         internal void InitializeData()
         {
             m_Layouts.Allocate();
-            m_Processors.Initialize();
-            m_Interactions.Initialize();
-            m_Composites.Initialize();
+            m_Processors.Initialize(this);
+            m_Interactions.Initialize(this);
+            m_Composites.Initialize(this);
             m_DevicesById = new Dictionary<int, InputDevice>();
 
             // Determine our default set of enabled update types. By
@@ -2026,11 +2026,11 @@ internal void InitializeData()
             composites.AddTypeRegistration("OneModifier", typeof(OneModifierComposite));
             composites.AddTypeRegistration("TwoModifiers", typeof(TwoModifiersComposite));
 
-            // Register custom types by reflection
-            RegisterCustomTypes();
+            // ISXB-1766: Defer loading custom types by reflection unless we have to since referenced from
+            // .inputaction JSON assets. This is managed via TypeTable.cs.
         }
 
-        void RegisterCustomTypes(Type[] types)
+        static void RegisterCustomTypes(Type[] types)
         {
             foreach (Type type in types)
             {
@@ -2053,8 +2053,18 @@ void RegisterCustomTypes(Type[] types)
             }
         }
 
-        void RegisterCustomTypes()
+        private bool m_CustomTypesRegistered;
+
+        internal bool RegisterCustomTypes()
         {
+            // If we have already attempted to register custom types, there is no need to reattempt since we
+            // would end up with the same result again. Only with a domain reload would the resulting types
+            // be different, and hence it is sufficient to use a static flag that we do not reset.
+            if (m_CustomTypesRegistered)
+                return false; // Already evaluated
+
+            m_CustomTypesRegistered = true;
+
             k_InputRegisterCustomTypesMarker.Begin();
 
             var inputSystemAssembly = typeof(InputProcessor).Assembly;
@@ -2079,11 +2089,13 @@ void RegisterCustomTypes()
                 }
                 catch (ReflectionTypeLoadException)
                 {
-                    continue;
+                    // Ignore exception
                 }
             }
 
             k_InputRegisterCustomTypesMarker.End();
+
+            return true; // Signal that custom types were extracted and registered.
         }
 
         internal void InstallRuntime(IInputRuntime runtime)
@@ -2164,6 +2176,9 @@ internal void UninstallGlobals()
             InputControlLayout.s_CacheInstance = default;
             InputControlLayout.s_CacheInstanceRef = 0;
 
+            // Invalidate type registrations
+            m_CustomTypesRegistered = false;
+
             // Detach from runtime.
             if (m_Runtime != null)
             {
diff --git a/Packages/com.unity.inputsystem/InputSystem/Utilities/TypeTable.cs b/Packages/com.unity.inputsystem/InputSystem/Utilities/TypeTable.cs
index 4120bdce88..009740d344 100644
--- a/Packages/com.unity.inputsystem/InputSystem/Utilities/TypeTable.cs
+++ b/Packages/com.unity.inputsystem/InputSystem/Utilities/TypeTable.cs
@@ -25,12 +25,16 @@ internal struct TypeTable
         public HashSet<InternedString> aliases;
         #endif
 
-        public void Initialize()
+        // Strong coupling to Input Manager which is always the owner
+        private InputManager m_Manager;
+
+        public void Initialize(InputManager manager)
         {
             table = new Dictionary<InternedString, Type>();
             #if UNITY_EDITOR
             aliases = new HashSet<InternedString>();
             #endif
+            m_Manager = manager;
         }
 
         public InternedString FindNameForType(Type type)
@@ -80,10 +84,24 @@ public Type LookupTypeRegistration(string name)
             if (table == null)
                 throw new InvalidOperationException("Input System not yet initialized");
 
-            var internedName = new InternedString(name);
-            if (table.TryGetValue(internedName, out var type))
-                return type;
-            return null;
+            return TryLookupTypeRegistration(new InternedString(name));
+        }
+
+        private Type TryLookupTypeRegistration(InternedString internedName)
+        {
+            if (!table.TryGetValue(internedName, out var type))
+            {
+                // Failed to look-up type, either type do not exist or it is a custom type that has not been registered.
+                // Check whether we have attempted to load custom types and otherwise lazily load  types only when
+                // relevant and reattempt looking up type by name. (ISXB-1766)
+                if (m_Manager != null)
+                {
+                    if (m_Manager.RegisterCustomTypes())
+                        table.TryGetValue(internedName, out type);
+                }
+            }
+
+            return type;
         }
 
         #if UNITY_EDITOR