diff --git a/docs/changelog.rst b/docs/changelog.rst
index db57a3c72..65a332863 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -16,6 +16,7 @@ Changed
 Fixed
 -----
 - Bug in `raster.transform` with lazy coordinates. (#801)
+- Bug in `workflows.mesh.mesh2d_from_rasterdataset` with multi-dimensional coordinates. (#843)
 
 
 v0.9.4 (2024-02-26)
diff --git a/hydromt/workflows/mesh.py b/hydromt/workflows/mesh.py
index dd67c559f..0b52ee210 100644
--- a/hydromt/workflows/mesh.py
+++ b/hydromt/workflows/mesh.py
@@ -1,4 +1,5 @@
 """Implementation for mesh based workflows."""
+
 import logging
 from typing import Dict, List, Optional, Union
 
@@ -261,7 +262,7 @@ def mesh2d_from_rasterdataset(
     # Get one variable name in ds to simplify to da
     var = [v for v in ds.data_vars][0]
     uda = xu.UgridDataArray.from_structured(
-        ds[var].rename({ds.raster.x_dim: "x", ds.raster.y_dim: "y"})
+        ds[var], x=ds.raster.xcoords.name, y=ds.raster.ycoords.name
     )
     uda.ugrid.set_crs(ds.raster.crs)
 
diff --git a/pixi.toml b/pixi.toml
index 572b1eb40..1b8292e62 100644
--- a/pixi.toml
+++ b/pixi.toml
@@ -185,7 +185,7 @@ s3fs = "*"
 [feature.extra.dependencies]
 matplotlib = "*"
 pyet = "*"
-xugrid = ">=0.6.5"
+xugrid = ">=0.9.0"
 
 [feature.dev.dependencies]
 black = "*"
diff --git a/pyproject.toml b/pyproject.toml
index b254d315d..ed03f8a87 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -66,7 +66,7 @@ io = [
 extra = [
   "matplotlib",    # plotting; required for slippy tiles
   "pyet",          # calc evapotraspiration, quite well used, used in all wflow models but domain specific
-  "xugrid>=0.6.5", # xarray wrapper for mesh processing
+  "xugrid>=0.9.0", # xarray wrapper for mesh processing
 ]
 dev = [
   "black",       # linting