diff --git a/CHANGELOG.md b/CHANGELOG.md
index a9b480a34b..22b36b3e49 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -61,6 +61,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Location names are displayed in character selection dialog
 - You can no longer write messages to old groups after being kicked and not having updated your chat mode.
 - Location names are now also correct after editing and creating characters
+- NPC's wont pick up recently dropped items (if not hostile towards you)
 
 ## [0.15.0] - 2023-07-01
 
diff --git a/common/src/comp/loot_owner.rs b/common/src/comp/loot_owner.rs
index fdb0646927..6ce9311eac 100644
--- a/common/src/comp/loot_owner.rs
+++ b/common/src/comp/loot_owner.rs
@@ -15,16 +15,18 @@ pub struct LootOwner {
     #[serde(skip, default = "Instant::now")]
     expiry: Instant,
     owner: LootOwnerKind,
+    soft: bool,
 }
 
 // Loot becomes free-for-all after the initial ownership period
 const OWNERSHIP_SECS: u64 = 45;
 
 impl LootOwner {
-    pub fn new(kind: LootOwnerKind) -> Self {
+    pub fn new(kind: LootOwnerKind, soft: bool) -> Self {
         Self {
             expiry: Instant::now().add(Duration::from_secs(OWNERSHIP_SECS)),
             owner: kind,
+            soft,
         }
     }
 
@@ -43,6 +45,11 @@ impl LootOwner {
 
     pub fn default_instant() -> Instant { Instant::now() }
 
+    /// This field stands as a wish for NPC's to not pick the loot up, they will
+    /// however be able to decide whether they want to follow your wishes or not
+    /// (players will be able to pick the item up)
+    pub fn is_soft(&self) -> bool { self.soft }
+
     pub fn can_pickup(
         &self,
         uid: Uid,
@@ -66,7 +73,7 @@ impl LootOwner {
         // Pet's can't pick up owned loot
         // Humanoids must own the loot
         // Non-humanoids ignore loot ownership
-        !is_pet && (owns_loot || !is_humanoid)
+        !is_pet && (self.soft || owns_loot || !is_humanoid)
     }
 }
 
diff --git a/server/agent/src/action_nodes.rs b/server/agent/src/action_nodes.rs
index 02a7ef818a..cc3a340c59 100644
--- a/server/agent/src/action_nodes.rs
+++ b/server/agent/src/action_nodes.rs
@@ -822,10 +822,10 @@ impl<'a> AgentData<'a> {
         };
         let is_valid_target = |entity: EcsEntity| match read_data.bodies.get(entity) {
             Some(Body::ItemDrop(item)) => {
-                //If the agent is humanoid, it will pick up all kinds of item drops. If the
+                let is_humanoid = matches!(self.body, Some(Body::Humanoid(_)));
+                // If the agent is humanoid, it will pick up all kinds of item drops. If the
                 // agent isn't humanoid, it will pick up only consumable item drops.
-                let wants_pickup = matches!(self.body, Some(Body::Humanoid(_)))
-                    || matches!(item, item_drop::Body::Consumable);
+                let wants_pickup = is_humanoid || matches!(item, item_drop::Body::Consumable);
 
                 // The agent will attempt to pickup the item if it wants to pick it up and
                 // is allowed to
@@ -834,13 +834,20 @@ impl<'a> AgentData<'a> {
                         .loot_owners
                         .get(entity)
                         .map_or(true, |loot_owner| {
-                            loot_owner.can_pickup(
-                                *self.uid,
-                                read_data.groups.get(entity),
-                                self.alignment,
-                                self.body,
-                                None,
-                            )
+                            !(is_humanoid
+                                && loot_owner.is_soft()
+                                // If we are hostile towards the owner, ignore their wish to not pick up the loot
+                                && loot_owner
+                                    .uid()
+                                    .and_then(|uid| read_data.id_maps.uid_entity(uid))
+                                    .map_or(true, |entity| !is_enemy(self, entity, read_data)))
+                                && loot_owner.can_pickup(
+                                    *self.uid,
+                                    read_data.groups.get(entity),
+                                    self.alignment,
+                                    self.body,
+                                    None,
+                                )
                         });
 
                 if attempt_pickup {
diff --git a/server/src/events/entity_manipulation.rs b/server/src/events/entity_manipulation.rs
index 17e2b10012..0f1e0ef1fa 100644
--- a/server/src/events/entity_manipulation.rs
+++ b/server/src/events/entity_manipulation.rs
@@ -482,7 +482,7 @@ pub fn handle_destroy(server: &mut Server, entity: EcsEntity, last_change: Healt
                         item,
                         if let Some(loot_owner) = loot_owner {
                             debug!("Assigned UID {loot_owner:?} as the winner for the loot drop");
-                            Some(LootOwner::new(loot_owner))
+                            Some(LootOwner::new(loot_owner, false))
                         } else {
                             None
                         },
diff --git a/server/src/events/interaction.rs b/server/src/events/interaction.rs
index af268697cb..dc0fb5dad1 100755
--- a/server/src/events/interaction.rs
+++ b/server/src/events/interaction.rs
@@ -356,7 +356,9 @@ pub fn handle_mine_block(
                     }
                 }
                 for item in items {
-                    let loot_owner = maybe_uid.map(LootOwnerKind::Player).map(LootOwner::new);
+                    let loot_owner = maybe_uid
+                        .map(LootOwnerKind::Player)
+                        .map(|owner| LootOwner::new(owner, false));
                     state.create_item_drop(
                         Pos(pos.map(|e| e as f32) + Vec3::new(0.5, 0.5, 0.0)),
                         comp::Vel(Vec3::zero()),
diff --git a/server/src/events/inventory_manip.rs b/server/src/events/inventory_manip.rs
index 2fd01aa36b..cb5cc4bcca 100644
--- a/server/src/events/inventory_manip.rs
+++ b/server/src/events/inventory_manip.rs
@@ -9,8 +9,9 @@ use common::{
         self,
         group::members,
         item::{self, flatten_counted_items, tool::AbilityMap, MaterialStatManifest},
+        loot_owner::LootOwnerKind,
         slot::{self, Slot},
-        InventoryUpdate,
+        InventoryUpdate, LootOwner,
     },
     consts::MAX_PICKUP_RANGE,
     mounting::VolumePos,
@@ -387,7 +388,7 @@ pub fn handle_inventory(server: &mut Server, entity: EcsEntity, manip: comp::Inv
                     ),
                     comp::Vel(Vec3::zero()),
                     item,
-                    None,
+                    Some(LootOwner::new(LootOwnerKind::Player(uid), false)),
                 );
             }
         },
@@ -959,7 +960,7 @@ pub fn handle_inventory(server: &mut Server, entity: EcsEntity, manip: comp::Inv
             comp::Pos(pos.0 + *ori.look_dir() + Vec3::unit_z()),
             comp::Vel(Vec3::zero()),
             item,
-            None,
+            Some(LootOwner::new(LootOwnerKind::Player(uid), true)),
         );
     }