diff --git a/CHANGELOG.md b/CHANGELOG.md
index a662753018..17f294785c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -26,6 +26,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - [Server] Kick clients who send messages on the wrong stream
 - Reworked Merchant trade price calculation, Merchants offer more wares
 - Enable new giant trees, changed what entities spawn at them
+- Stealth is now shown as a percentage in Stats Diary UI
+- Stealth effects from sneaking and armor are evaluated independently. Armor now has effects even when not sneaking
 
 ### Removed
 
diff --git a/common/src/combat.rs b/common/src/combat.rs
index dd305c19b9..3d271016ac 100644
--- a/common/src/combat.rs
+++ b/common/src/combat.rs
@@ -1164,13 +1164,26 @@ pub fn compute_max_energy_mod(inventory: Option<&Inventory>) -> f32 {
     })
 }
 
-/// Computes the sneak coefficient from armor. Agent perception distances are
-/// divided by the resulting f32.
+/// Returns a value to be included as a multiplicative factor in perception
+/// distance checks.
 #[cfg(not(target_arch = "wasm32"))]
-pub fn compute_stealth_coefficient(inventory: Option<&Inventory>) -> f32 {
-    // Starts with a value of 2.0 when summing the stats from each armor piece, and
-    // defaults to a value of 2.0 if no inventory is equipped
-    inventory.map_or(2.0, |inv| {
+pub fn perception_dist_multiplier_from_stealth(
+    inventory: Option<&Inventory>,
+    character_state: Option<&CharacterState>,
+) -> f32 {
+    const SNEAK_MULTIPLIER: f32 = 0.7;
+
+    let item_stealth_multiplier = stealth_multiplier_from_items(inventory);
+    let is_sneaking = character_state.map_or(false, |state| state.is_stealthy());
+
+    let multiplier = item_stealth_multiplier * if is_sneaking { SNEAK_MULTIPLIER } else { 1.0 };
+
+    multiplier.clamp(0.0, 1.0)
+}
+
+#[cfg(not(target_arch = "wasm32"))]
+pub fn stealth_multiplier_from_items(inventory: Option<&Inventory>) -> f32 {
+    let stealth_sum = inventory.map_or(0.0, |inv| {
         inv.equipped_items()
             .filter_map(|item| {
                 if let ItemKind::Armor(armor) = &item.kind() {
@@ -1179,8 +1192,10 @@ pub fn compute_stealth_coefficient(inventory: Option<&Inventory>) -> f32 {
                     None
                 }
             })
-            .fold(2.0, |a, b| a + b.max(0.0))
-    })
+            .sum()
+    });
+
+    (1.0 / (1.0 + stealth_sum)).clamp(0.0, 1.0)
 }
 
 /// Computes the total protection provided from armor. Is used to determine the
diff --git a/server/src/sys/agent.rs b/server/src/sys/agent.rs
index 9def9c555c..88f7a687b8 100644
--- a/server/src/sys/agent.rs
+++ b/server/src/sys/agent.rs
@@ -20,7 +20,7 @@ use crate::{
     },
 };
 use common::{
-    combat::compute_stealth_coefficient,
+    combat::perception_dist_multiplier_from_stealth,
     comp::{
         self,
         agent::{
@@ -2429,26 +2429,17 @@ impl<'a> AgentData<'a> {
         other_pos: &Pos,
         read_data: &ReadData,
     ) -> bool {
-        let other_stealth_coefficient = {
-            let is_other_stealthy = read_data
-                .char_states
-                .get(other)
-                .map_or(false, CharacterState::is_stealthy);
+        let other_stealth_multiplier = {
+            let other_inventory = read_data.inventories.get(other);
+            let other_char_state = read_data.char_states.get(other);
 
-            if is_other_stealthy {
-                // TODO: We shouldn't have to check CharacterState. This should be factored in
-                // by the function (such as the one we're calling below) that supposedly
-                // computes a coefficient given stealthy-ness.
-                compute_stealth_coefficient(read_data.inventories.get(other))
-            } else {
-                1.0
-            }
+            perception_dist_multiplier_from_stealth(other_inventory, other_char_state)
         };
 
-        let dist_sqrd = other_pos.0.distance_squared(self.pos.0);
-
         let within_sight_dist = {
-            let sight_dist = agent.psyche.sight_dist / other_stealth_coefficient;
+            let sight_dist = agent.psyche.sight_dist * other_stealth_multiplier;
+            let dist_sqrd = other_pos.0.distance_squared(self.pos.0);
+
             dist_sqrd < sight_dist.powi(2)
         };
 
@@ -2458,7 +2449,7 @@ impl<'a> AgentData<'a> {
 
         let other_body = read_data.bodies.get(other);
 
-        within_sight_dist
+        (within_sight_dist)
             && within_fov
             && entities_have_line_of_sight(self.pos, self.body, other_pos, other_body, read_data)
     }
diff --git a/voxygen/src/hud/diary.rs b/voxygen/src/hud/diary.rs
index 19188b69ae..0e8ddcee78 100644
--- a/voxygen/src/hud/diary.rs
+++ b/voxygen/src/hud/diary.rs
@@ -1112,7 +1112,7 @@ impl<'a> Widget for Diary<'a> {
                     "Stun-Resistance",
                     "Crit-Power",
                     "Energy Reward",
-                    "Stealth",
+                    "Stealth (Items)",
                     "Weapon Power",
                     "Weapon Speed",
                     "Weapon Poise",
@@ -1206,9 +1206,16 @@ impl<'a> Widget for Diary<'a> {
                                 combat::compute_energy_reward_mod(Some(self.inventory));
                             format!("{:+.0}%", (energy_rew - 1.0) * 100.0)
                         },
-                        "Stealth" => {
-                            let stealth = combat::compute_stealth_coefficient(Some(self.inventory));
-                            format!("{:.2}", stealth)
+                        "Stealth (Items)" => {
+                            let stealth_perception_multiplier =
+                                combat::perception_dist_multiplier_from_stealth(
+                                    Some(self.inventory),
+                                    None,
+                                );
+                            let txt =
+                                format!("{:+.1}%", (1.0 - stealth_perception_multiplier) * 100.0);
+
+                            txt
                         },
                         "Weapon Power" => match (main_weap_stats, off_weap_stats) {
                             (Some(m_stats), Some(o_stats)) => {