diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6fb7ab61d6..af83a54a8b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -77,6 +77,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Bodies of water no longer contain black chunks on the voxel minimap.
 - Agents can flee once again, and more appropriately
 - Items in hotbar no longer change when sorting inventory
+- Lantern color changes when swapping lanterns
 
 ## [0.11.0] - 2021-09-11
 
diff --git a/client/src/lib.rs b/client/src/lib.rs
index 41f364b938..6ded5caf69 100644
--- a/client/src/lib.rs
+++ b/client/src/lib.rs
@@ -1081,6 +1081,12 @@ impl Client {
         self.send_msg(ClientGeneral::ControlEvent(ControlEvent::DisableLantern));
     }
 
+    pub fn update_lantern(&mut self, lantern: comp::item::Lantern) {
+        self.send_msg(ClientGeneral::ControlEvent(ControlEvent::UpdateLantern(
+            lantern,
+        )));
+    }
+
     pub fn remove_buff(&mut self, buff_id: BuffKind) {
         self.send_msg(ClientGeneral::ControlEvent(ControlEvent::RemoveBuff(
             buff_id,
diff --git a/common/src/comp/controller.rs b/common/src/comp/controller.rs
index 7c06b42e1c..c73302c9f4 100644
--- a/common/src/comp/controller.rs
+++ b/common/src/comp/controller.rs
@@ -125,6 +125,7 @@ pub enum ControlEvent {
     //ToggleLantern,
     EnableLantern,
     DisableLantern,
+    UpdateLantern(crate::comp::item::Lantern),
     Interact(Uid),
     InitiateInvite(Uid, InviteKind),
     InviteResponse(InviteResponse),
diff --git a/common/src/event.rs b/common/src/event.rs
index d1e8215a11..ac7f83dd06 100644
--- a/common/src/event.rs
+++ b/common/src/event.rs
@@ -93,6 +93,7 @@ pub enum ServerEvent {
     },
     EnableLantern(EcsEntity),
     DisableLantern(EcsEntity),
+    UpdateLantern(EcsEntity, comp::item::Lantern),
     NpcInteract(EcsEntity, EcsEntity),
     InviteResponse(EcsEntity, InviteResponse),
     InitiateInvite(EcsEntity, Uid, InviteKind),
diff --git a/common/systems/src/controller.rs b/common/systems/src/controller.rs
index dcc403e15f..49a58a9f2d 100644
--- a/common/systems/src/controller.rs
+++ b/common/systems/src/controller.rs
@@ -71,6 +71,9 @@ impl<'a> System<'a> for Sys {
                     ControlEvent::DisableLantern => {
                         server_emitter.emit(ServerEvent::DisableLantern(entity))
                     },
+                    ControlEvent::UpdateLantern(lantern) => {
+                        server_emitter.emit(ServerEvent::UpdateLantern(entity, lantern));
+                    },
                     ControlEvent::Interact(npc_uid) => {
                         if let Some(npc_entity) = read_data
                             .uid_allocator
diff --git a/server/src/events/interaction.rs b/server/src/events/interaction.rs
index d3d92106e9..da4b27141a 100644
--- a/server/src/events/interaction.rs
+++ b/server/src/events/interaction.rs
@@ -35,6 +35,19 @@ use lazy_static::lazy_static;
 use serde::Deserialize;
 use std::iter::FromIterator;
 
+pub fn update_lantern(server: &mut Server, entity: EcsEntity, lantern: comp::item::Lantern){
+    let _ = server
+        .state_mut()
+        .ecs()
+        .write_storage::<comp::LightEmitter>()
+        .insert(entity, comp::LightEmitter{
+            col: lantern.color(),
+            strength: lantern.strength(),
+            flicker: 0.35,
+            animated: true,
+        });
+}
+
 pub fn handle_lantern(server: &mut Server, entity: EcsEntity, enable: bool) {
     let ecs = server.state_mut().ecs();
 
diff --git a/server/src/events/mod.rs b/server/src/events/mod.rs
index 4fee80df93..dbee7de720 100644
--- a/server/src/events/mod.rs
+++ b/server/src/events/mod.rs
@@ -15,7 +15,7 @@ use group_manip::handle_group;
 use information::handle_site_info;
 use interaction::{
     handle_create_sprite, handle_lantern, handle_mine_block, handle_mount, handle_npc_interaction,
-    handle_possess, handle_sound, handle_unmount,
+    handle_possess, handle_sound, handle_unmount, update_lantern,
 };
 use inventory_manip::handle_inventory;
 use invite::{handle_invite, handle_invite_response};
@@ -107,6 +107,9 @@ impl Server {
                 },
                 ServerEvent::EnableLantern(entity) => handle_lantern(self, entity, true),
                 ServerEvent::DisableLantern(entity) => handle_lantern(self, entity, false),
+                ServerEvent::UpdateLantern(entity, lantern) => {
+                    update_lantern(self, entity, lantern)
+                },
                 ServerEvent::NpcInteract(interactor, target) => {
                     handle_npc_interaction(self, interactor, target)
                 },
diff --git a/voxygen/src/session/mod.rs b/voxygen/src/session/mod.rs
index 359a90e01c..c878cea6bc 100644
--- a/voxygen/src/session/mod.rs
+++ b/voxygen/src/session/mod.rs
@@ -1234,9 +1234,9 @@ impl PlayState for SessionState {
                         bypass_dialog,
                     } => {
                         let mut move_allowed = true;
+                        let mut maybe_lantern: Option<comp::item::Lantern> = None;
                         if !bypass_dialog {
-                            if let Some(inventory) = self
-                                .client
+                            if let Some(inventory) = self.client
                                 .borrow()
                                 .state()
                                 .ecs()
@@ -1246,6 +1246,18 @@ impl PlayState for SessionState {
                                 match (slot_a, slot_b) {
                                     (Slot::Inventory(inv_slot), Slot::Equip(equip_slot))
                                     | (Slot::Equip(equip_slot), Slot::Inventory(inv_slot)) => {
+                                        if let EquipSlot::Lantern = equip_slot {
+                                            maybe_lantern =
+                                                inventory.get(inv_slot).and_then(|item| {
+                                                    if let comp::item::ItemKind::Lantern(l) =
+                                                        item.kind()
+                                                    {
+                                                        Some(l.clone())
+                                                    } else {
+                                                        None
+                                                    }
+                                                });
+                                        }
                                         if !inventory.can_swap(inv_slot, equip_slot) {
                                             move_allowed = false;
                                         } else {
@@ -1276,6 +1288,9 @@ impl PlayState for SessionState {
                             }
                         }
                         if move_allowed {
+                            if let Some(new_lantern) = maybe_lantern {
+                                self.client.borrow_mut().update_lantern(new_lantern);
+                            }
                             self.client.borrow_mut().swap_slots(slot_a, slot_b);
                         }
                     },