diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6fca9e4e09..0a48e155e3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -30,6 +30,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Bamboo collectibles now spawn near rivers
 - Chest sprites can longer be exploded
 - Smoke varies by temperature, humidity, time of day and house
+- Added loot ownership for drops from mining
 
 ### Changed
 
diff --git a/server/src/events/interaction.rs b/server/src/events/interaction.rs
index c08cbca453..e374f8f8f5 100644
--- a/server/src/events/interaction.rs
+++ b/server/src/events/interaction.rs
@@ -8,8 +8,9 @@ use common::{
         agent::{AgentEvent, Sound, SoundKind},
         dialogue::Subject,
         inventory::slot::EquipSlot,
+        loot_owner::LootOwnerKind,
         tool::ToolKind,
-        Inventory, Pos, SkillGroupKind,
+        Inventory, LootOwner, Pos, SkillGroupKind,
     },
     consts::{MAX_MOUNT_RANGE, SOUND_TRAVEL_DIST_PER_VOLUME},
     event::EventBus,
@@ -169,6 +170,8 @@ pub fn handle_mine_block(
         if let Some(block) = block.filter(|b| b.mine_tool().map_or(false, |t| Some(t) == tool)) {
             // Drop item if one is recoverable from the block
             if let Some(mut item) = comp::Item::try_reclaim_from_block(block) {
+                let maybe_uid = state.ecs().uid_from_entity(entity);
+
                 if let Some(mut skillset) = state
                     .ecs()
                     .write_storage::<comp::SkillSet>()
@@ -176,7 +179,7 @@ pub fn handle_mine_block(
                 {
                     if let (Some(tool), Some(uid), Some(exp_reward)) = (
                         tool,
-                        state.ecs().uid_from_entity(entity),
+                        maybe_uid,
                         item.item_definition_id()
                             .itemdef_id()
                             .and_then(|id| RESOURCE_EXPERIENCE_MANIFEST.read().0.get(id).copied()),
@@ -232,10 +235,15 @@ pub fn handle_mine_block(
                         let _ = item.increase_amount(1);
                     }
                 }
-                state
+                let item_drop = state
                     .create_item_drop(Default::default(), item)
-                    .with(comp::Pos(pos.map(|e| e as f32) + Vec3::new(0.5, 0.5, 0.0)))
-                    .build();
+                    .with(comp::Pos(pos.map(|e| e as f32) + Vec3::new(0.5, 0.5, 0.0)));
+                if let Some(uid) = maybe_uid {
+                    item_drop.with(LootOwner::new(LootOwnerKind::Player(uid)))
+                } else {
+                    item_drop
+                }
+                .build();
             }
 
             state.set_block(pos, block.into_vacant());