diff --git a/YRpp b/YRpp
index 3e4db25b..aacc52ba 160000
--- a/YRpp
+++ b/YRpp
@@ -1 +1 @@
-Subproject commit 3e4db25bb775d44ec896392bcded614628452c2d
+Subproject commit aacc52ba8a73ea42ca5e0cdb6323f3f920d1384e
diff --git a/src/Misc/Observers.cpp b/src/Misc/Observers.cpp
index c386076a..77f05d11 100644
--- a/src/Misc/Observers.cpp
+++ b/src/Misc/Observers.cpp
@@ -44,24 +44,30 @@ DEFINE_HOOK(0x5C98E5, MultiplayerScore__5C98A0_SkipObserverScore, 0x6)
 }
 
 // Use correct colors in diplomacy menu for all observers
-DEFINE_HOOK(0x65838B, RadarClass__658330_SetObserverColorScheme, 0x5)
+DEFINE_HOOK(0x6583B2, RadarClass__658330_SetObserverColorScheme, 0x5)
 {
 	if (!Spawner::Enabled)
 		return 0;
 
+	enum { SelectLightGrey = 0x658397 };
 	GET(HouseClass*, pHouse, EBX);
-	R->EAX<HouseClass*>(pHouse->IsInitiallyObserver() ? HouseClass::CurrentPlayer : (HouseClass*) nullptr);
-	return 0x65838B + 0x5;
+
+	if (pHouse->IsHumanPlayer && pHouse->IsInitiallyObserver())
+		return SelectLightGrey;
+
+	return 0;
 }
 
 // Use correct flag icon in diplomacy menu for all observers
-DEFINE_HOOK(0x65846D, RadarClass__658330_SetObserverFlag, 0x6)
+DEFINE_HOOK(0x658473, RadarClass__658330_SetObserverFlag, 0x5)
 {
 	if (!Spawner::Enabled)
 		return 0;
 
 	GET(HouseClass*, pHouse, EBX);
-	R->ECX(pHouse->IsInitiallyObserver() ? -3 : pHouse->Type->ArrayIndex);
+	if (pHouse->IsHumanPlayer && pHouse->Defeated && pHouse->IsInitiallyObserver())
+		R->ECX(HouseTypeClass::TempObserverID);
+
 	return 0x658485;
 }
 
diff --git a/src/Spawner/Spawner.Hook.cpp b/src/Spawner/Spawner.Hook.cpp
index 83d3f90b..01d42dbd 100644
--- a/src/Spawner/Spawner.Hook.cpp
+++ b/src/Spawner/Spawner.Hook.cpp
@@ -126,7 +126,7 @@ DEFINE_HOOK(0x4FC262, HouseClass__MPlayerDefeated_SkipObserver, 0x6)
 	if (!MPlayerDefeated::pThis)
 		return 0;
 
-	return MPlayerDefeated::pThis->IsObserver()
+	return MPlayerDefeated::pThis->IsInitiallyObserver()
 		? ProcEpilogue
 		: 0;
 }
@@ -166,8 +166,24 @@ DEFINE_HOOK(0x4FC57C, HouseClass__MPlayerDefeated_CheckAliveAndHumans, 0x7)
 	GET_STACK(int, numHumans, STACK_OFFSET(0xC0, -0xA8));
 	GET_STACK(int, numAlive, STACK_OFFSET(0xC0, -0xAC));
 
-	bool continueWithoutHumans = Spawner::GetConfig()->ContinueWithoutHumans ||
-		(SessionClass::IsSkirmish() && HouseClass::CurrentPlayer->IsInitiallyObserver());
+	bool continueWithoutHumans = Spawner::GetConfig()->ContinueWithoutHumans
+		|| MPlayerDefeated::pThis->IsInitiallyObserver();
+
+	if (!continueWithoutHumans && !MPlayerDefeated::pThis->IsHumanPlayer)
+	{
+		bool isHasAliveHumanPlayers = false;
+		for (const auto pHouse : HouseClass::Array)
+		{
+			if (pHouse->IsHumanPlayer && !pHouse->Defeated)
+			{
+				isHasAliveHumanPlayers = true;
+				break;
+			}
+		}
+
+		if (!isHasAliveHumanPlayers)
+			continueWithoutHumans = true;
+	}
 
 	if (numAlive > 1 && (numHumans != 0 || continueWithoutHumans))
 	{
diff --git a/src/Spawner/Spawner.cpp b/src/Spawner/Spawner.cpp
index a8891eec..11a3a2ab 100644
--- a/src/Spawner/Spawner.cpp
+++ b/src/Spawner/Spawner.cpp
@@ -105,11 +105,7 @@ void Spawner::AssignHouses()
 
 		const auto pHousesConfig = &Spawner::Config->Houses[indexOfHouseArray];
 		const int nSpawnLocations = pHousesConfig->SpawnLocations;
-		const bool isObserver = pHouse->IsHumanPlayer && (
-			pHousesConfig->IsObserver
-			|| nSpawnLocations == -1
-			|| nSpawnLocations == 90
-		);
+		const bool isObserver = pHouse->IsHumanPlayer && pHousesConfig->IsObserver;
 
 		// Set Alliances
 		for (char i = 0; i < (char)std::size(pHousesConfig->Alliances); ++i)
@@ -143,9 +139,9 @@ void Spawner::AssignHouses()
 		// Set SpawnLocations
 		if (!isObserver)
 		{
-			pHouse->StartingPoint = (nSpawnLocations != -2)
-				? std::clamp(nSpawnLocations, 0, 7)
-				: nSpawnLocations;
+			pHouse->StartingPoint = (nSpawnLocations < 0)
+				? -2
+				: std::clamp(nSpawnLocations, 0, 7);
 		}
 		else
 		{
@@ -266,7 +262,7 @@ bool Spawner::StartScenario(const char* pScenarioName)
 			if (pPlayer->IsObserver && !Spawner::Config->IsCampaign)
 			{
 				if (pNode->Country < 0)
-					pNode->Country = -3;
+					pNode->Country = HouseTypeClass::TempObserverID;
 
 				pNode->SpectatorFlag = 0xFFFFFFFF;