diff --git a/common/src/comp/inventory/item/armor.rs b/common/src/comp/inventory/item/armor.rs
index 1c876e63ce..1c8efe8458 100644
--- a/common/src/comp/inventory/item/armor.rs
+++ b/common/src/comp/inventory/item/armor.rs
@@ -25,6 +25,26 @@ pub enum ArmorKind {
     Bag,
 }
 
+impl ArmorKind {
+    pub fn has_durability(self) -> bool {
+        use ArmorKind::*;
+        match self {
+            Shoulder => true,
+            Chest => true,
+            Belt => true,
+            Hand => true,
+            Pants => true,
+            Foot => true,
+            Back => true,
+            Ring => false,
+            Neck => false,
+            Head => false,
+            Tabard => false,
+            Bag => false,
+        }
+    }
+}
+
 impl Armor {
     /// Determines whether two pieces of armour are superficially equivalent to
     /// one another (i.e: one may be substituted for the other in crafting
diff --git a/common/src/comp/inventory/item/mod.rs b/common/src/comp/inventory/item/mod.rs
index c401a08d66..9ab56961c9 100644
--- a/common/src/comp/inventory/item/mod.rs
+++ b/common/src/comp/inventory/item/mod.rs
@@ -5,11 +5,11 @@ pub mod tool;
 
 // Reexports
 pub use modular::{MaterialStatManifest, ModularBase, ModularComponent};
-pub use tool::{AbilitySet, AbilitySpec, Hands, Tool, ToolKind};
+pub use tool::{AbilityMap, AbilitySet, AbilitySpec, Hands, Tool, ToolKind};
 
 use crate::{
     assets::{self, AssetExt, BoxedError, Error},
-    comp::inventory::{item::tool::AbilityMap, InvSlot},
+    comp::inventory::InvSlot,
     effect::Effect,
     recipe::RecipeInput,
     terrain::Block,
@@ -793,6 +793,7 @@ impl Item {
             hash: 0,
             durability: None,
         };
+        item.durability = item.has_durability().then_some(0);
         item.update_item_state(ability_map, msm);
         item
     }
@@ -1199,14 +1200,29 @@ impl Item {
         const MAX_DURABILITY: u32 = 8;
         let durability = self.durability.map_or(0, |x| x.clamp(0, MAX_DURABILITY));
         const DURABILITY_THRESHOLD: u32 = 4;
-        const MIN_FRAC: f32 = 0.25;
-        let mult = durability.saturating_sub(DURABILITY_THRESHOLD) as f32
-            / (MAX_DURABILITY - DURABILITY_THRESHOLD) as f32
+        const MIN_FRAC: f32 = 0.2;
+        let mult = (1.0
+            - durability.saturating_sub(DURABILITY_THRESHOLD) as f32
+                / (MAX_DURABILITY - DURABILITY_THRESHOLD) as f32)
             * (1.0 - MIN_FRAC)
             + MIN_FRAC;
         DurabilityMultiplier(mult)
     }
 
+    pub fn has_durability(&self) -> bool {
+        match &*self.kind() {
+            ItemKind::Tool(_) => true,
+            ItemKind::Armor(armor) => armor.kind.has_durability(),
+            _ => false,
+        }
+    }
+
+    pub fn apply_durability(&mut self) {
+        if let Some(durability) = &mut self.durability {
+            *durability += 1;
+        }
+    }
+
     #[cfg(test)]
     pub fn create_test_item_from_kind(kind: ItemKind) -> Self {
         let ability_map = &AbilityMap::load().read();
diff --git a/common/src/comp/inventory/loadout.rs b/common/src/comp/inventory/loadout.rs
index dd2eee1bc8..f52826668a 100644
--- a/common/src/comp/inventory/loadout.rs
+++ b/common/src/comp/inventory/loadout.rs
@@ -416,6 +416,25 @@ impl Loadout {
             }
         });
     }
+
+    /// Increments durability by 1 of all valid items
+    pub(super) fn apply_durability(
+        &mut self,
+        ability_map: &item::tool::AbilityMap,
+        msm: &item::MaterialStatManifest,
+    ) {
+        self.slots
+            .iter_mut()
+            .filter(|slot| slot.slot.as_ref().map_or(false, |i| i.has_durability()))
+            .for_each(|slot| {
+                if let Some(item) = &mut slot.slot {
+                    item.apply_durability();
+                    // Update item state after applying durability because stats have potential to
+                    // change from different durability
+                    item.update_item_state(ability_map, msm);
+                }
+            })
+    }
 }
 
 #[cfg(test)]
diff --git a/common/src/comp/inventory/mod.rs b/common/src/comp/inventory/mod.rs
index 4eff57e20c..26241b6323 100644
--- a/common/src/comp/inventory/mod.rs
+++ b/common/src/comp/inventory/mod.rs
@@ -878,6 +878,15 @@ impl Inventory {
             }
         });
     }
+
+    /// Increments durability of all valid items equipped in loaodut by 1
+    pub fn apply_durability(
+        &mut self,
+        ability_map: &item::tool::AbilityMap,
+        msm: &item::MaterialStatManifest,
+    ) {
+        self.loadout.apply_durability(ability_map, msm)
+    }
 }
 
 impl Component for Inventory {
diff --git a/server/src/events/entity_manipulation.rs b/server/src/events/entity_manipulation.rs
index 7efa635355..55976ca2f5 100644
--- a/server/src/events/entity_manipulation.rs
+++ b/server/src/events/entity_manipulation.rs
@@ -18,7 +18,7 @@ use common::{
     comp::{
         self, aura, buff,
         chat::{KillSource, KillType},
-        inventory::item::MaterialStatManifest,
+        inventory::item::{AbilityMap, MaterialStatManifest},
         loot_owner::LootOwnerKind,
         Alignment, Auras, Body, CharacterState, Energy, Group, Health, HealthChange, Inventory,
         Player, Poise, Pos, SkillSet, Stats,
@@ -511,6 +511,13 @@ pub fn handle_destroy(server: &mut Server, entity: EcsEntity, last_change: Healt
         true
     };
 
+    // Modify durability on all equipped items
+    if let Some(mut inventory) = state.ecs().write_storage::<Inventory>().get_mut(entity) {
+        let ability_map = state.ecs().read_resource::<AbilityMap>();
+        let msm = state.ecs().read_resource::<MaterialStatManifest>();
+        inventory.apply_durability(&ability_map, &msm);
+    }
+
     if should_delete {
         if let Some(rtsim_entity) = state
             .ecs()