CharacterController Collision causing teleportation?

So, essentially here is my problem. I have player character that moves using a script, and a character controller. The script takes in input, and supplies it to the character controller.

However, if anything (such as an NPC) walks into my player, the player teleports on top of them

You are simply “stepping” on top of the NPC. This is normal behavior.

Please note the following facts about what the character controller does and does not do.
A character controller does…

  • …prevent your character from
    walking through walls.
  • …prevent your character from
    falling through the floor.
  • …prevent your character from using
    corners as teleportation devices.
  • …make movement consistent up
  • …allow the character to move up

A character controller does not…

  • …react to gravity / fall.
  • …care what you are stepping on.
  • …give a sensible velocity with

You simply need to adjust the step size on your character controller component so you don’t step on enemies, and add things like gravity.