diff --git a/Generals/Code/GameEngine/Include/GameLogic/AIPathfind.h b/Generals/Code/GameEngine/Include/GameLogic/AIPathfind.h
index a66480e02e8..ccb3a664713 100644
--- a/Generals/Code/GameEngine/Include/GameLogic/AIPathfind.h
+++ b/Generals/Code/GameEngine/Include/GameLogic/AIPathfind.h
@@ -809,7 +809,7 @@ class Pathfinder : PathfindServicesInterface, public Snapshot
 									 const Object *obj, Int attackDistance);
 
 	Path *buildActualPath( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces,
-		const Coord3D *fromPos, PathfindCell *goalCell, Bool center, Bool blocked );	///< Work backwards from goal cell to construct final path
+		const Coord3D *fromPos, PathfindCell *goalCell, Bool center, Bool blocked, Int requireWaterLevel );	///< Work backwards from goal cell to construct final path
 	Path *buildGroundPath( Bool isCrusher,const Coord3D *fromPos, PathfindCell *goalCell,
 		Bool center, Int pathDiameter );	///< Work backwards from goal cell to construct final path
 	Path *buildHierachicalPath( const Coord3D *fromPos, PathfindCell *goalCell);	///< Work backwards from goal cell to construct final path
diff --git a/GeneralsMD/Code/GameEngine/Include/Common/GlobalData.h b/GeneralsMD/Code/GameEngine/Include/Common/GlobalData.h
index cd439448f12..585d4849ed7 100644
--- a/GeneralsMD/Code/GameEngine/Include/Common/GlobalData.h
+++ b/GeneralsMD/Code/GameEngine/Include/Common/GlobalData.h
@@ -335,6 +335,7 @@ class GlobalData : public SubsystemInterface
 	Real m_MinDistFromEdgeOfMapForBuild;
 	Real m_SupplyBuildBorder;
 	Real m_allowedHeightVariationForBuilding;  ///< how "flat" is still flat enough to build on
+	Real m_allowedHeightVariationForBuildingShipyard;  ///< how "flat" is still flat enough to build on
 	Real m_MinLowEnergyProductionSpeed;
 	Real m_MaxLowEnergyProductionSpeed;
 	Real m_LowEnergyPenaltyModifier;
@@ -586,7 +587,7 @@ class GlobalData : public SubsystemInterface
 	//AudioEventRTS m_chronoDisableSoundLoop;
 
 	DeathTypeFlags m_defaultExcludedDeathTypes;
-
+	Bool m_heightAboveTerrainIncludesWater;
 
 	// the trailing '\' is included!
   const AsciiString &getPath_UserData() const { return m_userDataDir; }
diff --git a/GeneralsMD/Code/GameEngine/Include/Common/KindOf.h b/GeneralsMD/Code/GameEngine/Include/Common/KindOf.h
index c816f66faf6..08e5508ad0c 100644
--- a/GeneralsMD/Code/GameEngine/Include/Common/KindOf.h
+++ b/GeneralsMD/Code/GameEngine/Include/Common/KindOf.h
@@ -191,6 +191,7 @@ enum KindOfType CPP_11(: Int)
 	KINDOF_SUPERHEAVY_VEHICLE,
 
 	KINDOF_TELEPORTER,
+	KINDOF_SHIPYARD,
 
 	KINDOF_EXTRA1,
 	KINDOF_EXTRA2,
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/AIPathfind.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/AIPathfind.h
index a76f26cc521..75f26f31903 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/AIPathfind.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/AIPathfind.h
@@ -155,7 +155,7 @@ class Path : public MemoryPoolObject, public Snapshot
 	void appendNode( const Coord3D *pos, PathfindLayerEnum layer );				///< Create a new node at the end of the path
 	void setBlockedByAlly(Bool blocked) {m_blockedByAlly = blocked;}
 	Bool getBlockedByAlly(void) {return m_blockedByAlly;}
-	void optimize( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces, Bool blocked );			///< Optimize the path to discard redundant nodes
+	void optimize( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces, Bool blocked, Int requiredWaterLevel);			///< Optimize the path to discard redundant nodes
 
 	void optimizeGroundPath( Bool crusher, Int diameter );			///< Optimize the ground path to discard redundant nodes
 
@@ -343,6 +343,9 @@ class PathfindCell
 	Bool getPinched(void) const {return m_pinched;}
 	void setPinched(Bool pinch) {m_pinched = pinch;	}
 
+	Short getWaterLevel(void) const { return m_waterLevel; }
+	void setWaterLevel(Short level) { m_waterLevel = level; }
+
 	Bool allocateInfo(const ICoord2D &pos);
 	void releaseInfo(void);
 	Bool hasInfo(void) const {return m_info!=NULL;}
@@ -373,6 +376,8 @@ class PathfindCell
 	UnsignedByte m_flags:4;			///< what type of units are in or moving through this cell.
 	UnsignedByte m_connectsToLayer:4;	///< This cell can pathfind onto this layer, if > LAYER_TOP.
   UnsignedByte m_layer:4;					 ///< Layer of this cell.
+	//This is added for ship pathing
+	Short m_waterLevel:8; ///< how far away is this cell from land (distance transform), capped at 15
 };
 
 typedef PathfindCell *PathfindCellP;
@@ -673,7 +678,7 @@ class Pathfinder : PathfindServicesInterface, public Snapshot
 
 	void setIgnoreObstacleID( ObjectID objID );					///< if non-zero, the pathfinder will ignore the given obstacle
 
-	Bool validMovementPosition( Bool isCrusher, LocomotorSurfaceTypeMask acceptableSurfaces, PathfindCell *toCell, PathfindCell *fromCell = NULL );		///< Return true if given position is a valid movement location
+	Bool validMovementPosition( Bool isCrusher, LocomotorSurfaceTypeMask acceptableSurfaces, Int requiredWaterLevel, PathfindCell *toCell, PathfindCell *fromCell = NULL );		///< Return true if given position is a valid movement location
 	Bool validMovementPosition( Bool isCrusher, PathfindLayerEnum layer, const LocomotorSet& locomotorSet, Int x, Int y );					///< Return true if given position is a valid movement location
 	Bool validMovementPosition( Bool isCrusher, PathfindLayerEnum layer, const LocomotorSet& locomotorSet, const Coord3D *pos );		///< Return true if given position is a valid movement location
 	Bool validMovementTerrain( PathfindLayerEnum layer, const Locomotor* locomotor, const Coord3D *pos );		///< Return true if given position is a valid movement location
@@ -686,7 +691,7 @@ class Pathfinder : PathfindServicesInterface, public Snapshot
 
 	Bool isLinePassable( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces,
 		PathfindLayerEnum layer, const Coord3D& startWorld, const Coord3D& endWorld,
-		Bool blocked, Bool allowPinched );	///< Return true if the straight line between the given points is passable
+		Bool blocked, Bool allowPinched, Int requiredWaterDepth);	///< Return true if the straight line between the given points is passable
 
 	void moveAlliesAwayFromDestination( Object *obj,const Coord3D& destination);
 
@@ -817,7 +822,7 @@ class Pathfinder : PathfindServicesInterface, public Snapshot
 									 const Object *obj, Int attackDistance);
 
 	Path *buildActualPath( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces,
-		const Coord3D *fromPos, PathfindCell *goalCell, Bool center, Bool blocked );	///< Work backwards from goal cell to construct final path
+		const Coord3D *fromPos, PathfindCell *goalCell, Bool center, Bool blocked, Int requiredWaterLevel );	///< Work backwards from goal cell to construct final path
 	Path *buildGroundPath( Bool isCrusher,const Coord3D *fromPos, PathfindCell *goalCell,
 		Bool center, Int pathDiameter );	///< Work backwards from goal cell to construct final path
 	Path *buildHierachicalPath( const Coord3D *fromPos, PathfindCell *goalCell);	///< Work backwards from goal cell to construct final path
@@ -888,7 +893,7 @@ inline void Pathfinder::worldToGrid( const Coord3D *pos, ICoord2D *cellIndex )
 
 inline Bool Pathfinder::validMovementPosition( Bool isCrusher, PathfindLayerEnum layer, const LocomotorSet& locomotorSet, Int x, Int y )
 {
-	return validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), getCell( layer, x, y ) );
+	return validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), getCell(layer, x, y));
 }
 
 inline Bool Pathfinder::validMovementPosition( Bool isCrusher, PathfindLayerEnum layer, const LocomotorSet& locomotorSet, const Coord3D *pos )
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/Locomotor.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/Locomotor.h
index c8bc06ffade..0fb97be20a6 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/Locomotor.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/Locomotor.h
@@ -59,7 +59,7 @@ enum LocomotorAppearance CPP_11(: Int)
 	LOCO_CLIMBER,			// human climber - backs down cliffs.
 	LOCO_OTHER,
 	LOCO_MOTORCYCLE,
-
+	LOCO_SHIP,
 	LOCOMOTOR_APPEARANCE_COUNT
 };
 
@@ -84,7 +84,7 @@ static const char *const TheLocomotorAppearanceNames[] =
 	"CLIMBER",
 	"OTHER",
 	"MOTORCYCLE",
-
+	"SHIP",
 	NULL
 };
 static_assert(ARRAY_SIZE(TheLocomotorAppearanceNames) == LOCOMOTOR_APPEARANCE_COUNT + 1, "Array size");
@@ -218,6 +218,8 @@ class LocomotorTemplate : public Overridable
 	Real											m_rudderCorrectionRate;
 	Real											m_elevatorCorrectionDegree;
 	Real											m_elevatorCorrectionRate;
+
+	Int												m_requiredWaterLevel; ///< for LOCO_SHIP, how deep the water must be
 };
 
 typedef OVERRIDE<LocomotorTemplate> LocomotorTemplateOverride;
@@ -321,6 +323,9 @@ class Locomotor : public MemoryPoolObject, public Snapshot
 
 	void setPreferredHeight( Real height ) { m_preferredHeight = height; }
 
+	//Returns 0 for non SHIP locomotors
+	inline Int getRequireWaterLevel() const { return m_template->m_appearance == LOCO_SHIP ? m_template->m_requiredWaterLevel : 0; };
+
 #ifdef CIRCLE_FOR_LANDING
 	/**
 		if we are climbing/diving more than this, circle as needed rather
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/LocomotorSet.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/LocomotorSet.h
index c4002d35628..80213ebb2d5 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/LocomotorSet.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/LocomotorSet.h
@@ -80,6 +80,7 @@ class LocomotorSet : public Snapshot
 	LocomotorVector						m_locomotors;
 	LocomotorSurfaceTypeMask	m_validLocomotorSurfaces;
 	Bool											m_downhillOnly;
+	Int												m_requiredWaterLevel; // for ships, if there are multiple water locomotors the lowest allowed value is used
 
 	LocomotorSet(const LocomotorSet& that);
 	LocomotorSet& operator=(const LocomotorSet& that);
@@ -105,5 +106,6 @@ class LocomotorSet : public Snapshot
 
 	LocomotorSurfaceTypeMask getValidSurfaces() const { return m_validLocomotorSurfaces; }
 	Bool isDownhillOnly( void ) const { return m_downhillOnly; };
+	Int getRequiredWaterLevel() const { return m_requiredWaterLevel; };
 
 };
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/DumbProjectileBehavior.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/DumbProjectileBehavior.h
index 26204d3b652..baaf1196784 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/DumbProjectileBehavior.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/DumbProjectileBehavior.h
@@ -96,6 +96,7 @@ class DumbProjectileBehavior : public UpdateModule, public ProjectileUpdateInter
 	virtual void projectileNowJammed() {}
 	virtual Object* getTargetObject();
 	virtual const Coord3D* getTargetPosition();
+	virtual Bool projectileShouldCollideWithWater() const override;
 
 protected:
 
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/FreeFallProjectileBehavior.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/FreeFallProjectileBehavior.h
index 82c15a77c73..8c9637c431b 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/FreeFallProjectileBehavior.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/FreeFallProjectileBehavior.h
@@ -102,6 +102,7 @@ class FreeFallProjectileBehavior : public UpdateModule, public ProjectileUpdateI
 	virtual void projectileNowJammed() {}
 	virtual Object* getTargetObject();
 	virtual const Coord3D* getTargetPosition();
+	virtual bool projectileShouldCollideWithWater() const override;
 
 protected:
 
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/MissileAIUpdate.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/MissileAIUpdate.h
index b00d6ca5e02..fa13c1d1587 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/MissileAIUpdate.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/MissileAIUpdate.h
@@ -109,6 +109,7 @@ class MissileAIUpdate : public AIUpdateInterface, public ProjectileUpdateInterfa
 	virtual void projectileNowJammed();///< We lose our Object target and scatter to the ground
 	virtual Object* getTargetObject();
 	virtual const Coord3D* getTargetPosition();
+	virtual bool projectileShouldCollideWithWater() const override;
 
 	virtual Bool processCollision(PhysicsBehavior *physics, Object *other); ///< Returns true if the physics collide should apply the force.  Normally not.  jba.
 
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/UpdateModule.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/UpdateModule.h
index c5d4a9ea7df..a22c407437e 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/UpdateModule.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/Module/UpdateModule.h
@@ -266,6 +266,7 @@ class ProjectileUpdateInterface
 	virtual Bool projectileHandleCollision(Object *other) = 0;
 	virtual void setFramesTillCountermeasureDiversionOccurs( UnsignedInt frames ) = 0; ///< Number of frames till missile diverts to countermeasures.
 	virtual void projectileNowJammed() = 0;
+	virtual Bool projectileShouldCollideWithWater() const { return false; };
 
 	virtual Object* getTargetObject() = 0;
 	virtual const Coord3D* getTargetPosition() = 0;
diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/Weapon.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/Weapon.h
index 7a135f7e54f..62269eb165e 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/Weapon.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/Weapon.h
@@ -146,7 +146,8 @@ enum WeaponCollideMaskType CPP_11(: Int)
 	WEAPON_COLLIDE_WALLS									= 0x0020,
 	WEAPON_COLLIDE_SMALL_MISSILES					= 0x0040, //All missiles are also projectiles!
 	WEAPON_COLLIDE_BALLISTIC_MISSILES			= 0x0080, //All missiles are also projectiles!
-	WEAPON_COLLIDE_CONTROLLED_STRUCTURES	= 0x0100	//this is "ONLY structures belonging to the projectile's controller".
+	WEAPON_COLLIDE_CONTROLLED_STRUCTURES	= 0x0100,	//this is "ONLY structures belonging to the projectile's controller".
+	WEAPON_COLLIDE_WATER                  = 0x0200
 };
 
 #ifdef DEFINE_WEAPONCOLLIDEMASK_NAMES
@@ -161,6 +162,7 @@ static const char *const TheWeaponCollideMaskNames[] =
 	"SMALL_MISSILES",			//All missiles are also projectiles!
 	"BALLISTIC_MISSILES", //All missiles are also projectiles!
 	"CONTROLLED_STRUCTURES",
+	"WATER",
 	NULL
 };
 #endif
@@ -399,21 +401,21 @@ class WeaponTemplate : public MemoryPoolObject
 {
 	friend class WeaponStore;
 
-	MEMORY_POOL_GLUE_WITH_USERLOOKUP_CREATE( WeaponTemplate, "WeaponTemplate" )
+	MEMORY_POOL_GLUE_WITH_USERLOOKUP_CREATE(WeaponTemplate, "WeaponTemplate")
 
 public:
 
 	WeaponTemplate();
 	// virtual destructor declared by memory pool
 
-	void reset( void );
+	void reset(void);
 
-	void friend_setNextTemplate(WeaponTemplate *nextTemplate) { m_nextTemplate = nextTemplate; }
-	WeaponTemplate *friend_clearNextTemplate( void ) {	WeaponTemplate *ret = m_nextTemplate; m_nextTemplate = NULL; return ret; }
-	Bool isOverride( void ) { return m_nextTemplate != NULL; }
+	void friend_setNextTemplate(WeaponTemplate* nextTemplate) { m_nextTemplate = nextTemplate; }
+	WeaponTemplate* friend_clearNextTemplate(void) { WeaponTemplate* ret = m_nextTemplate; m_nextTemplate = NULL; return ret; }
+	Bool isOverride(void) { return m_nextTemplate != NULL; }
 
 	/// field table for loading the values from an INI
-	const FieldParse *getFieldParse() const { return TheWeaponTemplateFieldParseTable; }
+	const FieldParse* getFieldParse() const { return TheWeaponTemplateFieldParseTable; }
 
 	/**
 		fire the weapon. return the logic-frame in which the damage will be dealt.
@@ -425,15 +427,15 @@ class WeaponTemplate : public MemoryPoolObject
 	*/
 	UnsignedInt fireWeaponTemplate
 	(
-		const Object *sourceObj,
+		const Object* sourceObj,
 		WeaponSlotType wslot,
 		Int specificBarrelToUse,
-		Object *victimObj,
+		Object* victimObj,
 		const Coord3D* victimPos,
 		const WeaponBonus& bonus,
 		Bool isProjectileDetonation,
 		Bool ignoreRanges,
-		Weapon *firingWeapon,
+		Weapon* firingWeapon,
 		ObjectID* projectileID,
 		Bool inflictDamage
 	) const;
@@ -445,8 +447,8 @@ class WeaponTemplate : public MemoryPoolObject
 		take weapon range into account -- it ASSUMES that the victim is within range!
 	*/
 	Real estimateWeaponTemplateDamage(
-		const Object *sourceObj,
-		const Object *victimObj,
+		const Object* sourceObj,
+		const Object* victimObj,
 		const Coord3D* victimPos,
 		const WeaponBonus& bonus
 	) const;
@@ -467,7 +469,7 @@ class WeaponTemplate : public MemoryPoolObject
 	Real getShockWaveRadius() const { return m_shockWaveRadius; }
 	Real getShockWaveTaperOff() const { return m_shockWaveTaperOff; }
 
-	Real getRequestAssistRange() const {return m_requestAssistRange;}
+	Real getRequestAssistRange() const { return m_requestAssistRange; }
 	AsciiString getName() const { return m_name; }
 	AsciiString getProjectileStreamName() const { return m_projectileStreamName; }
 	AsciiString getLaserName() const { return m_laserName; }
@@ -499,7 +501,7 @@ class WeaponTemplate : public MemoryPoolObject
 	Int getContinuousFireOneShotsNeeded() const { return m_continuousFireOneShotsNeeded; }
 	Int getContinuousFireTwoShotsNeeded() const { return m_continuousFireTwoShotsNeeded; }
 	UnsignedInt getContinuousFireCoastFrames() const { return m_continuousFireCoastFrames; }
- 	UnsignedInt getAutoReloadWhenIdleFrames() const { return m_autoReloadWhenIdleFrames; }
+	UnsignedInt getAutoReloadWhenIdleFrames() const { return m_autoReloadWhenIdleFrames; }
 	UnsignedInt getSuspendFXDelay() const { return m_suspendFXDelay; }
 
 	const FXList* getFireFX(VeterancyLevel v) const { return m_fireFXs[v]; }
@@ -530,8 +532,9 @@ class WeaponTemplate : public MemoryPoolObject
 	Bool isScatterTargetAligned() const { return m_scatterTargetAligned; }
 	Bool isScatterTargetRandom() const { return m_scatterTargetRandom; }
 	Bool isScatterTargetRandomAngle() const { return m_scatterTargetRandomAngle; }
-	Real getScatterTargetMinScalar () const { return m_scatterTargetMinScalar; }
+	Real getScatterTargetMinScalar() const { return m_scatterTargetMinScalar; }
 	Bool isScatterTargetCenteredAtShooter() const { return m_scatterTargetCenteredAtShooter; }
+	Bool isScatterOnWaterSurface() const { return m_scatterOnWaterSurface; }
 
 	Bool shouldProjectileCollideWith(
 		const Object* projectileLauncher,
@@ -659,6 +662,8 @@ class WeaponTemplate : public MemoryPoolObject
 	UnsignedInt m_scatterTargetResetTime;  ///< if this much time between shots has passed, we reset the scatter targets
 	Bool m_scatterTargetResetRecenter;  ///< when resetting scatter targets, use indices in the "middle" of the list, to keep the target centered for Line based attacks 
 
+	Bool m_scatterOnWaterSurface; ///< Scatter radius and targets include the water surface instead of just the terrain height
+
 	mutable HistoricWeaponDamageList m_historicDamage;
 	mutable UnsignedInt m_historicDamageTriggerId;
 };
diff --git a/GeneralsMD/Code/GameEngine/Source/Common/GlobalData.cpp b/GeneralsMD/Code/GameEngine/Source/Common/GlobalData.cpp
index ba232252e68..c38ed69fd7f 100644
--- a/GeneralsMD/Code/GameEngine/Source/Common/GlobalData.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/Common/GlobalData.cpp
@@ -398,6 +398,7 @@ GlobalData* GlobalData::m_theOriginal = NULL;
 	{ "MinDistFromEdgeOfMapForBuild",	 INI::parseReal,				NULL,			offsetof( GlobalData, m_MinDistFromEdgeOfMapForBuild ) },
 	{ "SupplyBuildBorder",	 INI::parseReal,				NULL,			offsetof( GlobalData, m_SupplyBuildBorder ) },
 	{ "AllowedHeightVariationForBuilding", INI::parseReal,NULL,			offsetof( GlobalData, m_allowedHeightVariationForBuilding ) },
+	{ "AllowedHeightVariationForBuildingShipyard", INI::parseReal,NULL,			offsetof(GlobalData, m_allowedHeightVariationForBuildingShipyard) },
 	{ "MinLowEnergyProductionSpeed",INI::parseReal,				NULL,			offsetof( GlobalData, m_MinLowEnergyProductionSpeed ) },
 	{ "MaxLowEnergyProductionSpeed",INI::parseReal,				NULL,			offsetof( GlobalData, m_MaxLowEnergyProductionSpeed ) },
 	{ "LowEnergyPenaltyModifier",		INI::parseReal,				NULL,			offsetof( GlobalData, m_LowEnergyPenaltyModifier ) },
@@ -572,7 +573,7 @@ GlobalData* GlobalData::m_theOriginal = NULL;
 	{"ChronoDamageParticleSystemSmall", INI::parseAsciiString, NULL, offsetof(GlobalData, m_chronoDisableParticleSystemSmall) },
 
 	{"DefaultExcludedDeathTypes", INI::parseDeathTypeFlagsList, NULL, offsetof(GlobalData, m_defaultExcludedDeathTypes) },
-	
+	{"HeightAboveTerrainIncludesWater", INI::parseBool, NULL, offsetof(GlobalData, m_heightAboveTerrainIncludesWater) },
 	{ NULL,					NULL,						NULL,						0 }  // keep this last
 
 };
@@ -915,6 +916,7 @@ GlobalData::GlobalData()
 	m_MinDistFromEdgeOfMapForBuild = 0.0f;
 	m_SupplyBuildBorder = 0.0f;
 	m_allowedHeightVariationForBuilding = 0.0f;
+	m_allowedHeightVariationForBuildingShipyard = 0.0f;
 	m_MinLowEnergyProductionSpeed = 0.0f;
 	m_MaxLowEnergyProductionSpeed = 0.0f;
 	m_LowEnergyPenaltyModifier = 0.0f;
@@ -1158,6 +1160,8 @@ GlobalData::GlobalData()
 	m_chronoDisableParticleSystemSmall.clear();
 	// m_chronoTintStatusType = TINT_STATUS_INVALID;
 
+	m_heightAboveTerrainIncludesWater = false;
+
 }  // end GlobalData
 
 
diff --git a/GeneralsMD/Code/GameEngine/Source/Common/System/BuildAssistant.cpp b/GeneralsMD/Code/GameEngine/Source/Common/System/BuildAssistant.cpp
index b3e11d5f10e..635c0811fa2 100644
--- a/GeneralsMD/Code/GameEngine/Source/Common/System/BuildAssistant.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/Common/System/BuildAssistant.cpp
@@ -478,6 +478,12 @@ struct SampleBuildData
 	Real loZ;								///< lowest sample point used
 };
 
+struct SampleBuildDataShipyard : public SampleBuildData
+{
+	Short waterSamples;			///< how many samples hit water tiles
+	Short landSamples;			///< how many samples hit land tiles
+};
+
 //-------------------------------------------------------------------------------------------------
 /** This will check the build conditions at the specified sample location point */
 //-------------------------------------------------------------------------------------------------
@@ -534,6 +540,73 @@ static void checkSampleBuildLocation( const Coord3D *samplePoint, void *userData
 
 }
 
+//-------------------------------------------------------------------------------------------------
+/** This will check the build conditions at the specified sample location point */
+//-------------------------------------------------------------------------------------------------
+static void checkSampleBuildLocationShipyard(const Coord3D* samplePoint, void* userData)
+{
+	TerrainType* terrain;
+	SampleBuildDataShipyard* sampleData = (SampleBuildDataShipyard*)userData;
+
+	// get the terrain tile here
+	terrain = TheTerrainVisual->getTerrainTile(samplePoint->x, samplePoint->y);
+	if (terrain)
+	{
+
+		// check for the restricts building flag
+		if (terrain->getRestrictConstruction())
+			sampleData->terrainRestricted = TRUE;
+
+	}  // end if
+
+	Int cellX = REAL_TO_INT_FLOOR(samplePoint->x / PATHFIND_CELL_SIZE);
+	Int cellY = REAL_TO_INT_FLOOR(samplePoint->y / PATHFIND_CELL_SIZE);
+
+	PathfindCell* cell = TheAI->pathfinder()->getCell(LAYER_GROUND, cellX, cellY);
+	if (!cell) {
+		sampleData->terrainRestricted = TRUE;
+	}
+	else {
+		enum PathfindCell::CellType type = cell->getType();
+		if ((type == PathfindCell::CELL_CLIFF) ||
+			(type == PathfindCell::CELL_IMPASSABLE)) {
+			sampleData->terrainRestricted = true;
+		}
+	}
+
+	//
+	// record the highest and lowest Z points from all the samples and do not allow
+	// building when the difference between them is too great
+	//
+	if (samplePoint->z < sampleData->loZ)
+		sampleData->loZ = samplePoint->z;
+	if (samplePoint->z > sampleData->hiZ)
+		sampleData->hiZ = samplePoint->z;
+
+	// too close to edge of map?
+	if (TheGlobalData->m_MinDistFromEdgeOfMapForBuild > 0.0f)
+	{
+		if (samplePoint->x < sampleData->mapRegion.lo.x + TheGlobalData->m_MinDistFromEdgeOfMapForBuild
+			|| samplePoint->x > sampleData->mapRegion.hi.x - TheGlobalData->m_MinDistFromEdgeOfMapForBuild
+			|| samplePoint->y < sampleData->mapRegion.lo.y + TheGlobalData->m_MinDistFromEdgeOfMapForBuild
+			|| samplePoint->y > sampleData->mapRegion.hi.y - TheGlobalData->m_MinDistFromEdgeOfMapForBuild)
+		{
+			sampleData->terrainRestricted = TRUE;
+		}
+	}
+
+	//Sample is valid
+	if (cell != nullptr && !sampleData->terrainRestricted) {
+		if (cell->getType() == PathfindCell::CELL_WATER) {
+			sampleData->waterSamples++;
+		}
+		else {
+			sampleData->landSamples++;
+		}
+	}
+
+}  // end checkSampleBuildLocation
+
 //-------------------------------------------------------------------------------------------------
 /** This function will call the user callback at each "sample point" across the footprint
 	* of where this object would be in the world.  The smaller the sample resolution param is
@@ -1012,8 +1085,15 @@ LegalBuildCode BuildAssistant::isLocationLegalToBuild( const Coord3D *worldPos,
 		if( ai == NULL )
 			return LBC_NO_CLEAR_PATH;
 
-		if( ai->isQuickPathAvailable( worldPos ) == FALSE )
+		if (build->isKindOf(KINDOF_SHIPYARD)) {
+		  // bypass Path check for now
+			// TODO checking bounding box?
+		}
+		else {
+
+			if (ai->isQuickPathAvailable(worldPos) == FALSE)
 				return LBC_NO_CLEAR_PATH;
+		}
 
 	}
 
@@ -1036,33 +1116,91 @@ LegalBuildCode BuildAssistant::isLocationLegalToBuild( const Coord3D *worldPos,
 			return LBC_RESTRICTED_TERRAIN;
 		}
 
-		//
-		// check the footprint of where the structure would go to be clear of any non-buildable
-		// tiles and to make sure there isn't a restricted tile and to make sure it's "flat" enough
-		//
-		SampleBuildData sampleData;
-		TheTerrainLogic->getExtent( &sampleData.mapRegion );
-		sampleData.terrainRestricted = FALSE;
-		sampleData.hiZ = terrainExtent.lo.z;  // note we set hi point to lowest point
-		sampleData.loZ = terrainExtent.hi.z;  // note we set lo point to highest point
-
-		// quick check at triple res.
-		iterateFootprint( build, angle, worldPos, 3*sampleResolution,
-		                  checkSampleBuildLocation, &sampleData );
-		if( sampleData.terrainRestricted == TRUE )
-			return LBC_RESTRICTED_TERRAIN;
-		// check if the height across the whole footprint area is too varied (not flat enough)
-		if( sampleData.hiZ - sampleData.loZ > TheGlobalData->m_allowedHeightVariationForBuilding )
-			return LBC_NOT_FLAT_ENOUGH;
-
-		// careful check at full res.
-		iterateFootprint( build, angle, worldPos, sampleResolution,
-		                  checkSampleBuildLocation, &sampleData );
-		if( sampleData.terrainRestricted == TRUE )
-			return LBC_RESTRICTED_TERRAIN;
-		// check if the height across the whole footprint area is too varied (not flat enough)
-		if( sampleData.hiZ - sampleData.loZ > TheGlobalData->m_allowedHeightVariationForBuilding )
-			return LBC_NOT_FLAT_ENOUGH;
+
+		if (!build->isKindOf(KINDOF_SHIPYARD)) {
+			//
+			// check the footprint of where the structure would go to be clear of any non-buildable
+			// tiles and to make sure there isn't a restricted tile and to make sure it's "flat" enough
+			//
+			SampleBuildData sampleData;
+			TheTerrainLogic->getExtent(&sampleData.mapRegion);
+			sampleData.terrainRestricted = FALSE;
+			sampleData.hiZ = terrainExtent.lo.z;  // note we set hi point to lowest point
+			sampleData.loZ = terrainExtent.hi.z;  // note we set lo point to highest point
+
+			// quick check at triple res.
+			iterateFootprint(build, angle, worldPos, 3 * sampleResolution,
+				checkSampleBuildLocation, &sampleData);
+			if (sampleData.terrainRestricted == TRUE)
+				return LBC_RESTRICTED_TERRAIN;
+			// check if the height across the whole footprint area is too varied (not flat enough)
+						if (sampleData.hiZ - sampleData.loZ > TheGlobalData->m_allowedHeightVariationForBuilding)
+				return LBC_NOT_FLAT_ENOUGH;
+
+			// careful check at full res.
+			iterateFootprint(build, angle, worldPos, sampleResolution,
+				checkSampleBuildLocation, &sampleData);
+			if (sampleData.terrainRestricted == TRUE)
+				return LBC_RESTRICTED_TERRAIN;
+			// check if the height across the whole footprint area is too varied (not flat enough)
+
+			if (sampleData.hiZ - sampleData.loZ > TheGlobalData->m_allowedHeightVariationForBuilding)
+				return LBC_NOT_FLAT_ENOUGH;
+		}
+		else {
+			// IF Shipyard need some special code
+
+			//
+			// check the footprint of where the structure would go to be clear of any non-buildable
+			// tiles and to make sure there isn't a restricted tile and to make sure it's "flat" enough
+			// Also check how many samples are on water or land for shipyards
+			//
+			SampleBuildDataShipyard sampleData;
+			TheTerrainLogic->getExtent(&sampleData.mapRegion);
+			sampleData.terrainRestricted = FALSE;
+			sampleData.hiZ = terrainExtent.lo.z;  // note we set hi point to lowest point
+			sampleData.loZ = terrainExtent.hi.z;  // note we set lo point to highest point
+			sampleData.waterSamples = 0;
+			sampleData.landSamples = 0;
+
+			// quick check at triple res.
+			iterateFootprint(build, angle, worldPos, 3 * sampleResolution,
+				checkSampleBuildLocationShipyard, &sampleData);
+			if (sampleData.terrainRestricted == TRUE)
+				return LBC_RESTRICTED_TERRAIN;
+			// check if the height across the whole footprint area is too varied (not flat enough)
+			if (sampleData.hiZ - sampleData.loZ > TheGlobalData->m_allowedHeightVariationForBuildingShipyard)
+				return LBC_NOT_FLAT_ENOUGH;
+
+			if (sampleData.waterSamples == 0 || sampleData.landSamples == 0) {
+				return LBC_RESTRICTED_TERRAIN;
+			}
+
+			// Reset sample count before detailed check
+			sampleData.waterSamples = 0;
+			sampleData.landSamples = 0;
+
+			// careful check at full res.
+			iterateFootprint(build, angle, worldPos, sampleResolution,
+				checkSampleBuildLocationShipyard, &sampleData);
+			if (sampleData.terrainRestricted == TRUE)
+				return LBC_RESTRICTED_TERRAIN;
+			// check if the height across the whole footprint area is too varied (not flat enough)
+
+			if (sampleData.hiZ - sampleData.loZ > TheGlobalData->m_allowedHeightVariationForBuildingShipyard)
+				return LBC_NOT_FLAT_ENOUGH;
+
+
+			//Check if enough parts in water and land
+			Short totalSamples = sampleData.waterSamples + sampleData.landSamples;
+			Real threshold_water = totalSamples * 0.6f;
+			Real threshold_land = 1.0f;
+
+			if (static_cast<Real>(sampleData.waterSamples) < threshold_water || static_cast<Real>(sampleData.landSamples) < threshold_land) {
+				return LBC_RESTRICTED_TERRAIN;
+			}
+
+		}
 
 	}
 
diff --git a/GeneralsMD/Code/GameEngine/Source/Common/System/KindOf.cpp b/GeneralsMD/Code/GameEngine/Source/Common/System/KindOf.cpp
index d8c85ea97e7..1573fcfc451 100644
--- a/GeneralsMD/Code/GameEngine/Source/Common/System/KindOf.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/Common/System/KindOf.cpp
@@ -180,6 +180,7 @@ const char* const KindOfMaskType::s_bitNameList[] =
 	"SUPERHEAVY_VEHICLE",
 
 	"TELEPORTER",
+	"SHIPYARD",
 
 	"EXTRA1",
 	"EXTRA2",
diff --git a/GeneralsMD/Code/GameEngine/Source/GameClient/Drawable.cpp b/GeneralsMD/Code/GameEngine/Source/GameClient/Drawable.cpp
index 9acfb20ef69..8616791fae8 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameClient/Drawable.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameClient/Drawable.cpp
@@ -1483,6 +1483,7 @@ Bool Drawable::calcPhysicsXform(PhysicsXformInfo& info)
 				calcPhysicsXformTreads(locomotor, info);
 				hasPhysicsXform = true;
 				break;
+			case LOCO_SHIP:
 			case LOCO_HOVER:
 			case LOCO_WINGS:
 				calcPhysicsXformHoverOrWings(locomotor, info);
diff --git a/GeneralsMD/Code/GameEngine/Source/GameClient/InGameUI.cpp b/GeneralsMD/Code/GameEngine/Source/GameClient/InGameUI.cpp
index c72b4cd3b6e..ee6b325d4b9 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameClient/InGameUI.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameClient/InGameUI.cpp
@@ -90,6 +90,7 @@
 #include "GameNetwork/NetworkInterface.h"
 
 #include "Common/UnitTimings.h" //Contains the DO_UNIT_TIMINGS define jba.
+#include "Common/Geometry.h"
 
 
 
@@ -1506,7 +1507,6 @@ void InGameUI::evaluateSoloNexus( Drawable *newlyAddedDrawable )
 
 }
 
-
 void InGameUI::handleBuildPlacements( void )
 {
 
@@ -1524,28 +1524,29 @@ void InGameUI::handleBuildPlacements( void )
 		// location the icon will be at (anchored is the start, otherwise it's the mouse)
 		if( isPlacementAnchored() )
 		{
-			ICoord2D start, end;
+			if (!m_pendingPlaceType->isKindOf(KINDOF_SHIPYARD)) {
+				ICoord2D start, end;
 
-			// get the placement arrow points
-			getPlacementPoints( &start, &end );
+				// get the placement arrow points
+				getPlacementPoints(&start, &end);
 
-			// set icon to anchor point
-			loc = start;
+				// set icon to anchor point
+				loc = start;
 
-			// only adjust angle if we've actually moved the mouse
-			if( start.x != end.x || start.y != end.y )
-			{
-				Coord3D worldStart, worldEnd;
+				// only adjust angle if we've actually moved the mouse
+				if (start.x != end.x || start.y != end.y)
+				{
+					Coord3D worldStart, worldEnd;
 
-				// project the start and the end points of the line anchor into the 3D world
-				TheTacticalView->screenToTerrain( &start, &worldStart );
-				TheTacticalView->screenToTerrain( &end, &worldEnd );
-
-				Coord2D v;
-				v.x = worldEnd.x - worldStart.x;
-				v.y = worldEnd.y - worldStart.y;
-				angle = v.toAngle();
+					// project the start and the end points of the line anchor into the 3D world
+					TheTacticalView->screenToTerrain(&start, &worldStart);
+					TheTacticalView->screenToTerrain(&end, &worldEnd);
 
+					Coord2D v;
+					v.x = worldEnd.x - worldStart.x;
+					v.y = worldEnd.y - worldStart.y;
+					angle = v.toAngle();
+				}
 				// TheSuperHackers @tweak Stubbjax 04/08/2025 Snap angle to nearest 45 degrees
 				// while using force attack mode for convenience.
 				if (isInForceAttackMode())
@@ -1554,8 +1555,18 @@ void InGameUI::handleBuildPlacements( void )
 					angle = WWMath::Round(angle / snapRadians) * snapRadians;
 				}
 			}
+			else {
+				// In case of Shipyard, do not update rotation
+				ICoord2D start, end;
 
-		}
+				// get the placement arrow points
+				getPlacementPoints(&start, &end);
+
+				// set icon to anchor point
+				loc = start;
+			}
+
+		}  // end if
 		else
 		{
 			const MouseIO *mouseIO = TheMouse->getMouseStatus();
@@ -1563,7 +1574,53 @@ void InGameUI::handleBuildPlacements( void )
 			// location is the mouse position
 			loc = mouseIO->pos;
 
-		}
+			if (m_pendingPlaceType->isKindOf(KINDOF_SHIPYARD)) {
+				// For shipyard sample the terrain an rotate according to descending terrain (water is lower)
+				const GeometryInfo& geom = m_pendingPlaceType->getTemplateGeometryInfo();
+
+				Coord3D worldPos;
+				TheTacticalView->screenToTerrain(&loc, &worldPos);
+
+				Real check_radius = 0.0f;
+				if (geom.getGeomType() == GEOMETRY_BOX)
+				{
+					check_radius = std::max(geom.getMinorRadius(), geom.getMajorRadius());
+				}  // end if
+				else if (geom.getGeomType() == GEOMETRY_SPHERE ||
+					geom.getGeomType() == GEOMETRY_CYLINDER)
+				{
+					check_radius = geom.getBoundingCircleRadius();
+				}  // end else if
+				else
+				{
+					DEBUG_ASSERTCRASH(0, ("InGameUI::handleBuildPlacements (Shipyard placement): Undefined geometry '%d' for '%s'", geom.getGeomType(), m_pendingPlaceType->getName().str()));
+					return;
+				}  // end else
+
+				//Check 4 sample points
+				Real hx1 = TheTerrainLogic->getGroundHeight(worldPos.x + check_radius, worldPos.y);
+				Real hx2 = TheTerrainLogic->getGroundHeight(worldPos.x - check_radius, worldPos.y);
+				Real hy1 = TheTerrainLogic->getGroundHeight(worldPos.x, worldPos.y + check_radius);
+				Real hy2 = TheTerrainLogic->getGroundHeight(worldPos.x, worldPos.y - check_radius);
+
+				Real dx = hx1 - hx2;
+				Real dy = hy1 - hy2;
+
+				Coord2D v;
+				v.x = dx;
+				v.y = dy;
+				constexpr Real pi2 = PI * 2.0f;
+				angle = v.toAngle() + m_pendingPlaceType->getPlacementViewAngle();
+				if (angle < 0.0f) {
+					angle += pi2;
+				}
+				else if (angle > pi2) {
+					angle -= pi2;
+				}
+			}
+
+
+		}  // end else
 
 		// set the location and angle of the place icon
 		/**@todo this whole orientation vector thing is LAME! Must replace, all I want to
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIGroup.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIGroup.cpp
index c956f0820be..0ad64da8959 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIGroup.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIGroup.cpp
@@ -669,7 +669,7 @@ Bool AIGroup::friend_computeGroundPath( const Coord3D *pos, CommandSourceType cm
 			{
 				if (!TheAI->pathfinder()->isLinePassable(obj,
 								ai->getLocomotorSet().getValidSurfaces(), obj->getLayer(), *obj->getPosition(),
-								center, false, true)) {
+								center, false, true, ai->getLocomotorSet().getRequiredWaterLevel())) {
 					isPassable = false;
 				}
 			}
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIPathfind.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIPathfind.cpp
index bc2eb2aed11..6040e59d77c 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIPathfind.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/AI/AIPathfind.cpp
@@ -67,7 +67,8 @@
 #include "Common/PerfMetrics.h"
 
 //-------------------------------------------------------------------------------------------------
-
+#include <queue>
+#include <vector>
 
 static inline Bool IS_IMPASSABLE(PathfindCell::CellType type) {
 	// Return true if cell is impassable to ground units. jba. [8/18/2003]
@@ -470,7 +471,7 @@ void Path::updateLastNode( const Coord3D *pos )
 /**
  * Optimize the path by checking line of sight
  */
-void Path::optimize( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces, Bool blocked )
+void Path::optimize( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces, Bool blocked, Int requiredWaterLevel)
 {
 	PathNode *node, *anchor;
 
@@ -522,7 +523,7 @@ void Path::optimize( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfa
 			Bool isPassable = false;
 			//CRCDEBUG_LOG(("Path::optimize() calling isLinePassable()"));
 			if (TheAI->pathfinder()->isLinePassable( obj, acceptableSurfaces, layer, *anchor->getPosition(),
-				*node->getPosition(), blocked, false))
+				*node->getPosition(), blocked, false, requiredWaterLevel))
 			{
 				isPassable = true;
 			}
@@ -930,8 +931,9 @@ void Path::computePointOnPath(
 
 		Bool gotPos = false;
 		CRCDEBUG_LOG(("Path::computePointOnPath() calling isLinePassable() 1"));
+
 		if (TheAI->pathfinder()->isLinePassable( obj, locomotorSet.getValidSurfaces(), out.layer, pos, *nextNodePos,
-			false, true ))
+			false, true, locomotorSet.getRequiredWaterLevel() ))
 		{
 			out.posOnPath = *nextNodePos;
 			gotPos = true;
@@ -964,7 +966,7 @@ void Path::computePointOnPath(
 					tryPos.y = (nextNodePos->y + next->getPosition()->y) * 0.5;
 					tryPos.z = nextNodePos->z;
 					CRCDEBUG_LOG(("Path::computePointOnPath() calling isLinePassable() 2"));
-					if (veryClose || TheAI->pathfinder()->isLinePassable( obj, locomotorSet.getValidSurfaces(), closeNext->getLayer(), pos, tryPos, false, true ))
+					if (veryClose || TheAI->pathfinder()->isLinePassable( obj, locomotorSet.getValidSurfaces(), closeNext->getLayer(), pos, tryPos, false, true, locomotorSet.getRequiredWaterLevel()))
 					{
 						gotPos = true;
 						out.posOnPath = tryPos;
@@ -982,7 +984,7 @@ void Path::computePointOnPath(
 			out.posOnPath.z = closeNodePos->z;
 
 			CRCDEBUG_LOG(("Path::computePointOnPath() calling isLinePassable() 3"));
-			if (TheAI->pathfinder()->isLinePassable( obj, locomotorSet.getValidSurfaces(), out.layer, pos, out.posOnPath, false, true ))
+			if (TheAI->pathfinder()->isLinePassable( obj, locomotorSet.getValidSurfaces(), out.layer, pos, out.posOnPath, false, true, locomotorSet.getRequiredWaterLevel()))
 			{
 				k = 0.5f;
 				gotPos = true;
@@ -1255,7 +1257,7 @@ void PathfindCell::reset( )
 	}
 	m_connectsToLayer = LAYER_INVALID;
 	m_layer = LAYER_GROUND;
-
+	m_waterLevel = 0;
 }
 
 /**
@@ -4251,7 +4253,6 @@ void Pathfinder::classifyMapCell( Int i, Int j , PathfindCell *cell)
 {
 	Coord3D topLeftCorner, bottomRightCorner;
 
-
 	Bool hasObstacle =  (cell->getType() == PathfindCell::CELL_OBSTACLE) ;
 
 	topLeftCorner.y = (Real)j * PATHFIND_CELL_SIZE_F;
@@ -4261,6 +4262,7 @@ void Pathfinder::classifyMapCell( Int i, Int j , PathfindCell *cell)
 	bottomRightCorner.x = topLeftCorner.x + PATHFIND_CELL_SIZE_F;
 
 	cell->setPinched(false);
+	cell->setWaterLevel(0);
 
 	PathfindCell::CellType type = PathfindCell::CELL_CLEAR;
 	if (TheTerrainLogic->isCliffCell(topLeftCorner.x, topLeftCorner.y))
@@ -4283,6 +4285,84 @@ void Pathfinder::classifyMapCell( Int i, Int j , PathfindCell *cell)
 	cell->releaseInfo();
 }
 
+struct Point {
+	int x, y;
+};
+
+static void calculateWaterLevels(IRegion2D bounds, PathfindCell** map)
+{
+	std::queue<Point> q;
+	constexpr int MAX_LEVEL = 15;
+
+	// Directions: Up, Down, Left, Right
+	const int dirs[4][2] = { {0, 1}, {0, -1}, {1, 0}, {-1, 0} };
+
+	// 1. Initialization Pass
+	// Iterate only within the defined region
+	for (int i = bounds.lo.x; i < bounds.hi.x; ++i) {
+		for (int j = bounds.lo.y; j < bounds.hi.y; ++j) {
+			auto& cell = map[i][j];
+
+			if (cell.getType() != PathfindCell::CELL_WATER) {
+				// Found LAND/OBSTACLE inside the region
+				cell.setWaterLevel(0);
+				q.push({ i, j });
+			}
+			else {
+				// Mark as unvisited
+				cell.setWaterLevel(-1);
+			}
+		}
+	}
+
+	// 2. BFS Propagation
+	while (!q.empty()) {
+		Point curr = q.front();
+		q.pop();
+
+		int currentDist = map[curr.x][curr.y].getWaterLevel();
+
+		// Optimization: Stop expanding if we hit the max clamp limit
+		if (currentDist >= MAX_LEVEL) {
+			continue;
+		}
+
+		// Check neighbors
+		for (const auto& dir : dirs) {
+			int nx = curr.x + dir[0];
+			int ny = curr.y + dir[1];
+
+			// Bounds Check: Ensure neighbor is strictly within IRegion2D
+			if (nx >= bounds.lo.x && nx < bounds.hi.x &&
+				ny >= bounds.lo.y && ny < bounds.hi.y) {
+
+				auto& neighbor = map[nx][ny];
+
+				// Only propagate into unvisited (-1) WATER cells
+				if (neighbor.getWaterLevel() == -1 &&
+					neighbor.getType() == PathfindCell::CELL_WATER) {
+
+					int newDist = currentDist + 1;
+					neighbor.setWaterLevel(newDist);
+					q.push({ nx, ny });
+				}
+			}
+		}
+	}
+
+	// 3. Final Cleanup
+	// Handle "Deep Ocean" or isolated water cells that BFS didn't reach 
+	// (either because they are > 15 away, or isolated by bounds/obstacles)
+	for (int i = bounds.lo.x; i < bounds.hi.x; ++i) {
+		for (int j = bounds.lo.y; j < bounds.hi.y; ++j) {
+			if (map[i][j].getWaterLevel() == -1) {
+				map[i][j].setWaterLevel(MAX_LEVEL);
+			}
+			//DEBUG_LOG(("Cell %d, %d has waterlevel: %d", i, j, map[i][j].getWaterLevel()));
+		}
+	}
+}
+
 /**
  * Set up for a new map.
  */
@@ -4407,6 +4487,10 @@ void Pathfinder::classifyMap(void)
 		}
 	}
 #endif
+	DEBUG_LOG(("WATER LEVEL: Checking map"));
+	// set water depth values for ship navigation
+	calculateWaterLevels(m_extent, m_map);
+
 	for (i=0; i<LAYER_LAST; i++) {
 		if (!m_layers[i].isUnused()) {
 			m_layers[i].classifyCells();
@@ -4542,6 +4626,12 @@ Bool Pathfinder::validMovementTerrain( PathfindLayerEnum layer, const Locomotor*
 	LocomotorSurfaceTypeMask acceptableSurfaces = validLocomotorSurfacesForCellType(toCell->getType());
 	if ((locomotor->getLegalSurfaces() & acceptableSurfaces) == 0)
 		return false;
+
+	if ((locomotor->getAppearance() == LOCO_SHIP)) {
+		if (toCell->getWaterLevel() < locomotor->getRequireWaterLevel()) {
+			return false;
+		}
+	}
 	return true;
 }
 
@@ -4586,8 +4676,8 @@ void Pathfinder::cleanOpenAndClosedLists(void) {
 //
 // Return true if we can move onto this position
 //
-Bool Pathfinder::validMovementPosition( Bool isCrusher, LocomotorSurfaceTypeMask acceptableSurfaces,
-																			 PathfindCell *toCell, PathfindCell *fromCell )
+Bool Pathfinder::validMovementPosition( Bool isCrusher, LocomotorSurfaceTypeMask acceptableSurfaces, Int requiredWaterLevel,
+																			 PathfindCell *toCell, PathfindCell *fromCell)
 {
 	if (toCell == NULL)
 		return false;
@@ -4606,6 +4696,14 @@ Bool Pathfinder::validMovementPosition( Bool isCrusher, LocomotorSurfaceTypeMask
 	if ((cellSurfaces & acceptableSurfaces) == 0)
 		return false;
 
+	// Check for water depth validity of ships
+	if (requiredWaterLevel >0 && toCell->getType() == PathfindCell::CELL_WATER) {
+		if (toCell->getWaterLevel() < requiredWaterLevel) {
+			return false;
+		}
+	}
+
+
 	return true;
 }
 
@@ -5718,7 +5816,7 @@ struct ExamineCellsStruct
 	Bool isCrusher = d->obj ? d->obj->getCrusherLevel() > 0 : false;
 	if (d->thePathfinder->m_isTunneling) return 1; // abort.
 	if (from && to) {
-			if (!d->thePathfinder->validMovementPosition( isCrusher, d->theLoco->getValidSurfaces(), to, from )) {
+			if (!d->thePathfinder->validMovementPosition( isCrusher, d->theLoco->getValidSurfaces(), d->theLoco->getRequiredWaterLevel(), to, from )) {
 				return 1;
 			}
 			if ( (to->getLayer() == LAYER_GROUND) && !d->thePathfinder->m_zoneManager.isPassable(to_x, to_y) ) {
@@ -5897,7 +5995,7 @@ Int Pathfinder::examineNeighboringCells(PathfindCell *parentCell, PathfindCell *
 					continue;
 			}
 
-			Bool movementValid = validMovementPosition(isCrusher, locomotorSet.getValidSurfaces(), newCell, parentCell);
+			Bool movementValid = validMovementPosition(isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), newCell, parentCell);
 			Bool dozerHack = false;
 			if (!movementValid && obj->isKindOf(KINDOF_DOZER) && newCell->getType() == PathfindCell::CELL_OBSTACLE) {
 				Object* obstacle = TheGameLogic->findObjectByID(newCell->getObstacleID());
@@ -6008,7 +6106,7 @@ Int Pathfinder::examineNeighboringCells(PathfindCell *parentCell, PathfindCell *
 			}
 
 			if (m_isTunneling) {
-				if (!validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), newCell, parentCell )) {
+				if (!validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), newCell, parentCell )) {
 					newCostSoFar += 10*COST_ORTHOGONAL;
 				}
 			}
@@ -6249,7 +6347,7 @@ Path *Pathfinder::internalFindPath( Object *obj, const LocomotorSet& locomotorSe
 
 			m_isTunneling = false;
 			// construct and return path
-			Path *path =  buildActualPath( obj, locomotorSet.getValidSurfaces(), from, goalCell, centerInCell, false );
+			Path *path =  buildActualPath( obj, locomotorSet.getValidSurfaces(), from, goalCell, centerInCell, false, locomotorSet.getRequiredWaterLevel() );
 #if RETAIL_COMPATIBLE_PATHFINDING
 			if (!s_useFixedPathfinding)
 			{
@@ -7978,7 +8076,7 @@ Bool Pathfinder::pathDestination( 	Object *obj, const LocomotorSet& locomotorSet
 	Real closestDistanceSqr = FLT_MAX;
 	Coord3D closestPos;
 
-	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), parentCell ) == false) {
+	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), parentCell ) == false) {
 		parentCell->releaseInfo();
 		goalCell->releaseInfo();
 		return FALSE;
@@ -8074,7 +8172,7 @@ Bool Pathfinder::pathDestination( 	Object *obj, const LocomotorSet& locomotorSet
 				}
 			}
 
-			if (!validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), newCell, parentCell )) {
+			if (!validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), newCell, parentCell )) {
 				continue;
 			}
 
@@ -8254,7 +8352,7 @@ Int Pathfinder::checkPathCost(Object *obj, const LocomotorSet& locomotorSet, con
 		}
 	}
 
-	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), parentCell ) == false) {
+	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), parentCell ) == false) {
 		parentCell->releaseInfo();
 		goalCell->releaseInfo();
 		return MAX_COST;
@@ -8358,7 +8456,7 @@ Int Pathfinder::checkPathCost(Object *obj, const LocomotorSet& locomotorSet, con
 				}
 			}
 
-			if (!validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), newCell, parentCell )) {
+			if (!validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), newCell, parentCell )) {
 				continue;
 			}
 
@@ -8539,7 +8637,7 @@ Path *Pathfinder::findClosestPath( Object *obj, const LocomotorSet& locomotorSet
 	if (parentCell == NULL)
 		return NULL;
 
-	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), parentCell ) == false) {
+	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), parentCell ) == false) {
 		m_isTunneling = true; // We can't move from our current location.  So relax the constraints.
 	}
 	TCheckMovementInfo info;
@@ -8646,7 +8744,7 @@ Path *Pathfinder::findClosestPath( Object *obj, const LocomotorSet& locomotorSet
 				debugShowSearch(true);
 			m_isTunneling = false;
 			// construct and return path
-			Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), from, goalCell, centerInCell, blocked);
+			Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), from, goalCell, centerInCell, blocked, locomotorSet.getRequiredWaterLevel());
 #if RETAIL_COMPATIBLE_PATHFINDING
 			if (!s_useFixedPathfinding) {
 				parentCell->releaseInfo();
@@ -8666,7 +8764,7 @@ Path *Pathfinder::findClosestPath( Object *obj, const LocomotorSet& locomotorSet
 		// put parent cell onto closed list - its evaluation is finished
 		m_closedList = parentCell->putOnClosedList( m_closedList );
 		if (!m_isTunneling && checkDestination(obj, parentCell->getXIndex(), parentCell->getYIndex(), parentCell->getLayer(), radius, centerInCell)) {
-			if (!startedStuck || validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), parentCell )) {
+			if (!startedStuck || validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), parentCell )) {
 				dx = IABS(goalCell->getXIndex()-parentCell->getXIndex());
 				dy = IABS(goalCell->getYIndex()-parentCell->getYIndex());
 				distSqr = dx*dx+dy*dy;
@@ -8738,7 +8836,7 @@ Path *Pathfinder::findClosestPath( Object *obj, const LocomotorSet& locomotorSet
 		rawTo->x = closesetCell->getXIndex()*PATHFIND_CELL_SIZE_F + PATHFIND_CELL_SIZE_F/2.0f;
 		rawTo->y = closesetCell->getYIndex()*PATHFIND_CELL_SIZE_F + PATHFIND_CELL_SIZE_F/2.0f;
 		// construct and return path
-		Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), from, closesetCell, centerInCell, blocked );
+		Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), from, closesetCell, centerInCell, blocked, locomotorSet.getRequiredWaterLevel());
 #if RETAIL_COMPATIBLE_PATHFINDING
 		if (!s_useFixedPathfinding) {
 			goalCell->releaseInfo();
@@ -8803,7 +8901,7 @@ void Pathfinder::adjustCoordToCell(Int cellX, Int cellY, Bool centerInCell, Coor
  * Work backwards from goal cell to construct final path.
  */
 Path *Pathfinder::buildActualPath( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces, const Coord3D *fromPos,
-																	PathfindCell *goalCell, Bool center, Bool blocked )
+																	PathfindCell *goalCell, Bool center, Bool blocked, Int requiredWaterLevel)
 {
 	DEBUG_ASSERTCRASH( goalCell, ("Pathfinder::buildActualPath: goalCell == NULL") );
 
@@ -8816,7 +8914,7 @@ Path *Pathfinder::buildActualPath( const Object *obj, LocomotorSurfaceTypeMask a
 	prependCells(path, fromPos, goalCell, center);
 
 	// cleanup the path by checking line of sight
-	path->optimize(obj, acceptableSurfaces, blocked);
+	path->optimize(obj, acceptableSurfaces, blocked, requiredWaterLevel);
 
 #if defined(RTS_DEBUG)
 	if (TheGlobalData->m_debugAI==AI_DEBUG_PATHS)
@@ -9425,6 +9523,7 @@ struct LinePassableStruct
 	Bool centerInCell;
 	Bool blocked;
 	Bool allowPinched;
+	Int requiredWaterDepth; //Added for ships to not be able to get too close to coast
 };
 
 /*static*/ Int Pathfinder::linePassableCallback(Pathfinder* pathfinder, PathfindCell* from, PathfindCell* to, Int to_x, Int to_y, void* userData)
@@ -9460,11 +9559,15 @@ struct LinePassableStruct
 		}
 	}
 
-	if (pathfinder->validMovementPosition( isCrusher, d->acceptableSurfaces, to, from ) == false)
+	if (pathfinder->validMovementPosition( isCrusher, d->acceptableSurfaces, d->requiredWaterDepth, to, from ) == false)
 	{
 		return 1;	// bail out
 	}
 
+	if (to->getType() == PathfindCell::CELL_WATER && d->requiredWaterDepth > 0 && to->getWaterLevel() < d->requiredWaterDepth) {
+		return 1; // bail out, ship needs deeper water
+	}
+
 	return 0;	// keep going
 }
 
@@ -9498,7 +9601,7 @@ struct GroundPathPassableStruct
 Bool Pathfinder::isLinePassable( const Object *obj, LocomotorSurfaceTypeMask acceptableSurfaces,
 																PathfindLayerEnum layer, const Coord3D& startWorld,
 																const Coord3D& endWorld, Bool blocked,
-																Bool allowPinched)
+																Bool allowPinched, Int requiredWaterDepth)
 {
 	LinePassableStruct info;
 	//CRCDEBUG_LOG(("Pathfinder::isLinePassable(): %d %d %d ", m_ignoreObstacleID, m_isMapReady, m_isTunneling));
@@ -9508,6 +9611,7 @@ Bool Pathfinder::isLinePassable( const Object *obj, LocomotorSurfaceTypeMask acc
 	getRadiusAndCenter(obj, info.radius, info.centerInCell);
 	info.blocked = blocked;
 	info.allowPinched = allowPinched;
+	info.requiredWaterDepth = requiredWaterDepth;
 
 	Int ret = iterateCellsAlongLine(startWorld, endWorld, layer, linePassableCallback, (void*)&info);
 	return ret == 0;
@@ -10103,7 +10207,7 @@ Path *Pathfinder::getMoveAwayFromPath(Object* obj, Object *otherObj,
 	const LocomotorSet& locomotorSet = obj->getAIUpdateInterface()->getLocomotorSet();
 
 	m_isTunneling = false;
-	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), parentCell ) == false) {
+	if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), parentCell ) == false) {
 		m_isTunneling = true; // We can't move from our current location.  So relax the constraints.
 	}
 
@@ -10194,7 +10298,7 @@ Path *Pathfinder::getMoveAwayFromPath(Object* obj, Object *otherObj,
 				debugShowSearch(true);
 			m_isTunneling = false;
 			// construct and return path
-			Path *newPath = buildActualPath( obj, locomotorSet.getValidSurfaces(), obj->getPosition(), parentCell, centerInCell, false);
+			Path *newPath = buildActualPath( obj, locomotorSet.getValidSurfaces(), obj->getPosition(), parentCell, centerInCell, false, locomotorSet.getRequiredWaterLevel());
 #if RETAIL_COMPATIBLE_PATHFINDING
 			if (!s_useFixedPathfinding) {
 				parentCell->releaseInfo();
@@ -10405,7 +10509,7 @@ Path *Pathfinder::patchPath( const Object *obj, const LocomotorSet& locomotorSet
 			prependCells(path, obj->getPosition(), parentCell, centerInCell);
 
 			// cleanup the path by checking line of sight
-			path->optimize(obj, locomotorSet.getValidSurfaces(), blocked);
+			path->optimize(obj, locomotorSet.getValidSurfaces(), blocked, locomotorSet.getRequiredWaterLevel());
 #if RETAIL_COMPATIBLE_PATHFINDING
 			if (!s_useFixedPathfinding) {
 				parentCell->releaseInfo();
@@ -10491,10 +10595,9 @@ Path *Pathfinder::findAttackPath( const Object *obj, const LocomotorSet& locomot
 			ICoord2D cellNdx;
 			worldToCell(&testPos, &cellNdx);
 			PathfindCell *aCell = getCell(obj->getLayer(), cellNdx.x, cellNdx.y);
-			if (!aCell)
-				break;
+			if (!aCell) break;
 
-			if (!validMovementPosition(isCrusher, locomotorSet.getValidSurfaces(), aCell))
+			if (!validMovementPosition(isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), aCell))
 				break;
 
 			if (!checkDestination(obj, cellNdx.x, cellNdx.y, obj->getLayer(), radius, centerInCell))
@@ -10718,7 +10821,7 @@ Path *Pathfinder::findAttackPath( const Object *obj, const LocomotorSet& locomot
 						}
 					}
 				}
-				Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), obj->getPosition(), parentCell, centerInCell, false);
+				Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), obj->getPosition(), parentCell, centerInCell, false, locomotorSet.getRequiredWaterLevel());
 #if RETAIL_COMPATIBLE_PATHFINDING
 				if (!s_useFixedPathfinding) {
 					if (goalCell->hasInfo() && !goalCell->getClosed() && !goalCell->getOpen()) {
@@ -10737,7 +10840,7 @@ Path *Pathfinder::findAttackPath( const Object *obj, const LocomotorSet& locomot
 			}
 		}
 		if (checkDestination(obj, parentCell->getXIndex(), parentCell->getYIndex(), parentCell->getLayer(), radius, centerInCell)) {
-			if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), parentCell )) {
+			if (validMovementPosition( isCrusher, locomotorSet.getValidSurfaces(), locomotorSet.getRequiredWaterLevel(), parentCell )) {
 				Real dx = IABS(victimCellNdx.x-parentCell->getXIndex());
 				Real dy = IABS(victimCellNdx.y-parentCell->getYIndex());
 				Real distSqr = dx*dx+dy*dy;
@@ -10921,7 +11024,7 @@ Path *Pathfinder::findSafePath( const Object *obj, const LocomotorSet& locomotor
 			//DEBUG_LOG(("Attack path took %d cells, %f sec", cellCount, (::GetTickCount()-startTimeMS)/1000.0f));
 #endif
 			// construct and return path
-			Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), obj->getPosition(), parentCell, centerInCell, false);
+			Path *path = buildActualPath( obj, locomotorSet.getValidSurfaces(), obj->getPosition(), parentCell, centerInCell, false, locomotorSet.getRequiredWaterLevel());
 #if RETAIL_COMPATIBLE_PATHFINDING
 			if (!s_useFixedPathfinding) {
 				parentCell->releaseInfo();
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Map/TerrainLogic.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Map/TerrainLogic.cpp
index 6af3e05b1b3..01fa0431369 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Map/TerrainLogic.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Map/TerrainLogic.cpp
@@ -2637,7 +2637,7 @@ void TerrainLogic::setActiveBoundary(Int newActiveBoundary)
 // ------------------------------------------------------------------------------------------------
 void TerrainLogic::flattenTerrain(Object *obj)
 {
-	if (obj->getGeometryInfo().getIsSmall()) {
+	if (obj->getGeometryInfo().getIsSmall() || obj->isKindOf(KINDOF_SHIPYARD)) {
 		return;
 	}
 
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/DumbProjectileBehavior.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/DumbProjectileBehavior.cpp
index a65e20e7396..be90acd23b0 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/DumbProjectileBehavior.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/DumbProjectileBehavior.cpp
@@ -711,6 +711,14 @@ Object* DumbProjectileBehavior::getTargetObject()
 	return TheGameLogic->findObjectByID(m_victimID);
 }
 
+bool DumbProjectileBehavior::projectileShouldCollideWithWater() const
+{
+	if (m_detonationWeaponTmpl != nullptr) {
+		return m_detonationWeaponTmpl->getProjectileCollideMask() & WeaponCollideMaskType::WEAPON_COLLIDE_WATER;
+	}
+	return false;
+}
+
 // ------------------------------------------------------------------------------------------------
 /** displayFlightPath for debugging */
 // ------------------------------------------------------------------------------------------------
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/FreeFallProjectileBehavior.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/FreeFallProjectileBehavior.cpp
index b55ef3999f0..47401e6bc9a 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/FreeFallProjectileBehavior.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Behavior/FreeFallProjectileBehavior.cpp
@@ -399,6 +399,15 @@ Object* FreeFallProjectileBehavior::getTargetObject()
 	return TheGameLogic->findObjectByID(m_victimID);
 }
 
+bool FreeFallProjectileBehavior::projectileShouldCollideWithWater() const
+{
+	if (m_detonationWeaponTmpl != nullptr) {
+		return m_detonationWeaponTmpl->getProjectileCollideMask() & WeaponCollideMaskType::WEAPON_COLLIDE_WATER;
+	}
+	return false;
+}
+
+
 // ------------------------------------------------------------------------------------------------
 /** CRC */
 // ------------------------------------------------------------------------------------------------
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Locomotor.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Locomotor.cpp
index dac09904f4b..4d9f5cefcaf 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Locomotor.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Locomotor.cpp
@@ -45,8 +45,8 @@
 #include "GameLogic/Module/PhysicsUpdate.h"
 #include "GameLogic/Module/BodyModule.h"
 #include "GameLogic/Module/AIUpdate.h"
-
-
+#include "vector3.h"
+#include <array>
 static const Real DONUT_TIME_DELAY_SECONDS=2.5f;
 static const Real DONUT_DISTANCE=4.0*PATHFIND_CELL_SIZE_F;
 
@@ -350,6 +350,7 @@ LocomotorTemplate::LocomotorTemplate()
 	m_elevatorCorrectionDegree  = 0.0f;
 	m_elevatorCorrectionRate    = 0.0f;
 
+	m_requiredWaterLevel = 0;
 }
 
 //-------------------------------------------------------------------------------------------------
@@ -422,6 +423,13 @@ void LocomotorTemplate::validate()
 			m_minSpeed = 0.01f;
 		}
 	}
+
+	if (m_appearance != LOCO_SHIP) {
+		if (m_requiredWaterLevel > 0) {
+			DEBUG_CRASH(("Non SHIP locomotors should not have a 'RequiredWaterLevel' of greater than 0!"));
+		}
+	}
+
 }
 
 //-------------------------------------------------------------------------------------------------
@@ -500,7 +508,8 @@ const FieldParse* LocomotorTemplate::getFieldParse() const
 		{ "RudderCorrectionRate",			 INI::parseReal, NULL, offsetof(LocomotorTemplate, m_rudderCorrectionRate) },
 		{ "ElevatorCorrectionDegree",	 INI::parseReal, NULL, offsetof(LocomotorTemplate, m_elevatorCorrectionDegree) },
 		{ "ElevatorCorrectionRate",		 INI::parseReal, NULL, offsetof(LocomotorTemplate, m_elevatorCorrectionRate) },
-		{ NULL, NULL, NULL, 0 }
+		{ "RequiredWaterLevel",        INI::parseUnsignedInt, NULL, offsetof(LocomotorTemplate, m_requiredWaterLevel)},
+		{ NULL, NULL, NULL, 0 }  // keep this last
 
 	};
 	return TheFieldParse;
@@ -1097,6 +1106,7 @@ void Locomotor::locoUpdate_moveTowardsPosition(Object* obj, const Coord3D& goalP
 			case LOCO_TREADS:
 					moveTowardsPositionTreads(obj, physics, goalPos, onPathDistToGoal, desiredSpeed);
 					break;
+			case LOCO_SHIP:
 			case LOCO_HOVER:
 					moveTowardsPositionHover(obj, physics, goalPos, onPathDistToGoal, desiredSpeed);
 					break;
@@ -2504,6 +2514,7 @@ Bool Locomotor::locoUpdate_maintainCurrentPosition(Object* obj)
 			maintainCurrentPositionTreads(obj, physics);
 			requiresConstantCalling = FALSE;
 			break;
+		case LOCO_SHIP:
 		case LOCO_HOVER:
 			maintainCurrentPositionHover(obj, physics);
 			requiresConstantCalling = TRUE;
@@ -2648,7 +2659,7 @@ LocomotorSet::LocomotorSet()
 	m_locomotors.clear();
 	m_validLocomotorSurfaces = 0;
 	m_downhillOnly = FALSE;
-
+	m_requiredWaterLevel = 0;
 }
 
 //-------------------------------------------------------------------------------------------------
@@ -2737,7 +2748,7 @@ void LocomotorSet::xfer( Xfer *xfer )
 
 	xfer->xferInt(&m_validLocomotorSurfaces);
 	xfer->xferBool(&m_downhillOnly);
-
+	xfer->xferInt(&m_requiredWaterLevel);
 }
 
 // ------------------------------------------------------------------------------------------------
@@ -2805,6 +2816,11 @@ void LocomotorSet::addLocomotor(const LocomotorTemplate* lt)
 	if (loco)
 	{
 		m_locomotors.push_back(loco);
+
+		if (loco->getAppearance() == LOCO_SHIP) {
+			m_requiredWaterLevel = std::max(m_requiredWaterLevel, loco->getRequireWaterLevel());
+		}
+
 		m_validLocomotorSurfaces |= loco->getLegalSurfaces();
 		if (loco->getIsDownhillOnly())
 		{
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate.cpp
index b70559767f3..70112eb1f26 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate.cpp
@@ -1773,7 +1773,7 @@ Bool AIUpdateInterface::computePath( PathfindServicesInterface *pathServices, Co
 
 	LocomotorSurfaceTypeMask surfaces = m_locomotorSet.getValidSurfaces();
 	if (!m_isFinalGoal && TheAI->pathfinder()->isLinePassable( getObject(), surfaces,
-			getObject()->getLayer(), *getObject()->getPosition(), originalDestination, false, true)) {
+			getObject()->getLayer(), *getObject()->getPosition(), originalDestination, false, true, m_locomotorSet.getRequiredWaterLevel())) {
 		return computeQuickPath(destination);
 	}
 
@@ -2355,8 +2355,10 @@ UpdateSleepTime AIUpdateInterface::doLocomotor( void )
 		}
 
 		// After our movement for the frame, update our AirborneTarget flag.
-		if(getObject()->getHeightAboveTerrain() > m_curLocomotor->getAirborneTargetingHeight() )
+		if(TheGlobalData->m_heightAboveTerrainIncludesWater && getObject()->getHeightAboveTerrainOrWater() > m_curLocomotor->getAirborneTargetingHeight() )
 			getObject()->setStatus( MAKE_OBJECT_STATUS_MASK( OBJECT_STATUS_AIRBORNE_TARGET ) );
+		else if (!TheGlobalData->m_heightAboveTerrainIncludesWater && getObject()->getHeightAboveTerrain() > m_curLocomotor->getAirborneTargetingHeight())
+			getObject()->setStatus(MAKE_OBJECT_STATUS_MASK(OBJECT_STATUS_AIRBORNE_TARGET));
 		else
 			getObject()->clearStatus( MAKE_OBJECT_STATUS_MASK( OBJECT_STATUS_AIRBORNE_TARGET ) );
 
@@ -2486,6 +2488,10 @@ Bool AIUpdateInterface::isAircraftThatAdjustsDestination(void) const
 	{
 		return FALSE; // thrust doesn't adjust.
 	}
+	if (m_curLocomotor->getAppearance() == LOCO_SHIP)
+	{
+		return TRUE;	// behave like hover
+	}
 
 	return FALSE;
 }
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate/MissileAIUpdate.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate/MissileAIUpdate.cpp
index cc654ea0702..59a6207279a 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate/MissileAIUpdate.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/AIUpdate/MissileAIUpdate.cpp
@@ -999,6 +999,14 @@ Object* MissileAIUpdate::getTargetObject()
 	return getGoalObject();
 }
 
+bool MissileAIUpdate::projectileShouldCollideWithWater() const
+{
+	if (m_detonationWeaponTmpl != nullptr) {
+		return m_detonationWeaponTmpl->getProjectileCollideMask() & WeaponCollideMaskType::WEAPON_COLLIDE_WATER;
+	}
+	return false;
+}
+
 // ------------------------------------------------------------------------------------------------
 /** CRC */
 // ------------------------------------------------------------------------------------------------
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/PhysicsUpdate.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/PhysicsUpdate.cpp
index b14864d242c..c5f836a7737 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/PhysicsUpdate.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Update/PhysicsUpdate.cpp
@@ -836,7 +836,19 @@ UpdateSleepTime PhysicsBehavior::update()
 		applyForce(&bounceForce);
 	}
 
-	Bool airborneAtEnd = obj->isAboveTerrain();
+	Bool isWaterCollision{ false };
+	Bool airborneAtEnd{ false };
+	if (m_pui != nullptr && m_pui->projectileShouldCollideWithWater()) {
+		airborneAtEnd = obj->isAboveTerrainOrWater();
+
+		if (!airborneAtEnd) {
+			const Coord3D* pos = obj->getPosition();
+			isWaterCollision = TheTerrainLogic->isUnderwater(pos->x, pos->y);
+		}
+	}
+	else {
+		airborneAtEnd = obj->isAboveTerrain();
+	}
 
 	// it's not good enough to check for airborne being different between
 	// the start and end of this func... we have to compare since last frame,
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Weapon.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Weapon.cpp
index d007264ad28..080d63f18a7 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Weapon.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Weapon.cpp
@@ -252,6 +252,7 @@ const FieldParse WeaponTemplate::TheWeaponTemplateFieldParseTable[] =
 	{ "ContinuousLaserLoopTime",				INI::parseDurationUnsignedInt,					NULL,							offsetof(WeaponTemplate, m_continuousLaserLoopTime) },
 	{ "LaserGroundTargetHeight",				INI::parseReal,					NULL,							offsetof(WeaponTemplate, m_laserGroundTargetHeight) },
 	{ "LaserGroundUnitTargetHeight",				INI::parseReal,					NULL,					offsetof(WeaponTemplate, m_laserGroundUnitTargetHeight) },
+	{ "ScatterOnWaterSurface", INI::parseBool, NULL, offsetof(WeaponTemplate, m_scatterOnWaterSurface) },
 	{ NULL,												NULL,																		NULL,							0 }  // keep this last
 
 };
@@ -345,7 +346,7 @@ WeaponTemplate::WeaponTemplate() : m_nextTemplate(NULL)
 	m_scatterTargetResetTime = 0;
 	m_preAttackFXDelay = 6; // Non-Zero default! 6 frames = 200ms. This should be a good base value to avoid spamming
 	m_laserGroundUnitTargetHeight = 10; // Default Height offset
-
+	m_scatterOnWaterSurface = false;
 	m_historicDamageTriggerId = 0;
 }
 
@@ -1025,7 +1026,16 @@ UnsignedInt WeaponTemplate::fireWeaponTemplate
 		//If we aim for the center point of our target and miss, the shot will go much farther than
 		//we expect!
 		// srj sez: we should actually fire at the layer the victim is on, if possible, in case it is on a bridge...
-		projectileDestination.z = TheTerrainLogic->getLayerHeight( projectileDestination.x, projectileDestination.y, targetLayer );
+
+		if (targetLayer == LAYER_GROUND && firingWeapon->getTemplate()->isScatterOnWaterSurface()) {
+				Real waterZ;
+				Real terrainZ;
+				TheTerrainLogic->isUnderwater(projectileDestination.x, projectileDestination.y, &waterZ, &terrainZ);
+				projectileDestination.z = std::max(waterZ, terrainZ);
+		}
+		else {
+			projectileDestination.z = TheTerrainLogic->getLayerHeight(projectileDestination.x, projectileDestination.y, targetLayer);
+		}
 	}
 
 	if (getProjectileTemplate() == NULL || isProjectileDetonation)
@@ -2979,7 +2989,15 @@ Bool Weapon::privateFireWeapon(
 			targetPos.x += scatterOffset.x;
 			targetPos.y += scatterOffset.y;
 
-			targetPos.z = TheTerrainLogic->getGroundHeight(targetPos.x, targetPos.y);
+			if (m_template->isScatterOnWaterSurface()) {
+				Real waterZ;
+				Real terrainZ;
+				TheTerrainLogic->isUnderwater(targetPos.x, targetPos.y, &waterZ, &terrainZ);
+				targetPos.z = std::max(waterZ, terrainZ);
+			}
+			else {
+				targetPos.z = TheTerrainLogic->getGroundHeight(targetPos.x, targetPos.y);
+			}
 
 			// Note AW: We have to ignore Ranges when using ScatterTargets, or else the weapon can fail in the next stage
 			ignoreRanges = TRUE;
diff --git a/GeneralsMD/Code/Libraries/Include/Lib/BaseType.h b/GeneralsMD/Code/Libraries/Include/Lib/BaseType.h
index 33131c51ef2..293ff830797 100644
--- a/GeneralsMD/Code/Libraries/Include/Lib/BaseType.h
+++ b/GeneralsMD/Code/Libraries/Include/Lib/BaseType.h
@@ -197,6 +197,7 @@ struct Coord2D
 
 	Real toAngle( void ) const;  ///< turn 2D vector into angle (where angle 0 is down the +x axis)
 
+	void rotateByAngle(Real angle); ///< rotate the vector by the given angle (radians)
 };
 
 inline Real Coord2D::toAngle( void ) const
@@ -215,6 +216,18 @@ inline Real Coord2D::toAngle( void ) const
 	return y < 0.0f ? -ACos(c) : ACos(c);
 }
 
+inline void Coord2D::rotateByAngle(Real angle)
+{
+	Real cs = Cos(angle);
+	Real sn = Sin(angle);
+
+	Real px = x * cs - y * sn;
+	Real py = x * sn + y * cs;
+
+	x = px;
+	y = py;
+}
+
 struct ICoord2D
 {
 	Int x, y;