If you're using the standard CharacterBody3D script, simply add this line of code to make movement work properly when the camera rotates:

direction = direction.rotated(Vector3.UP, $ThirdPersonCamera.rotation.y)

Supports smooth movement, collision detection, zooming, sensitivity options, etc.

Usage:

• Place ThirdPersonCamera in your player scene (or wherever you want the camera to be centered)
• If expecting non-mouse movement, configure input names for rotating and zooming