diff --git a/CCallback.cpp b/CCallback.cpp
index 45d8ff291..b7b9a7bdd 100644
--- a/CCallback.cpp
+++ b/CCallback.cpp
@@ -433,16 +433,6 @@ bool CCallback::swapArtifacts(const CGHeroInstance * hero1, ui16 pos1, const CGH
 	return true;
 }
 
-bool CCallback::setArtifact(const CGHeroInstance * hero, ui16 pos, int artID)
-{
-	if(player != hero->tempOwner)
-		return false;
-
-	SetArtifact sa(hero->id, pos, artID);
-	sendRequest(&sa);
-	return true;
-}
-
 bool CCallback::buildBuilding(const CGTownInstance *town, si32 buildingID)
 {
 	CGTownInstance * t = const_cast<CGTownInstance *>(town);
diff --git a/client/GUIClasses.cpp b/client/GUIClasses.cpp
index d774b2f80..5fc4b0403 100644
--- a/client/GUIClasses.cpp
+++ b/client/GUIClasses.cpp
@@ -3613,7 +3613,7 @@ void CArtPlace::clickLeft(tribool down, bool previousState)
 		}
 		else //perform artifact substitution
 		{
-			if (slotID >= 19) // Backpack slot - Remove active artifact and insert it into the designated position in backpack.
+			if (slotID >= 19) // Backpack destination.
 			{
 				const CArtifact * cur = ourOwner->commonInfo->srcArtifact;
 
@@ -3635,10 +3635,17 @@ void CArtPlace::clickLeft(tribool down, bool previousState)
 					ourOwner->commonInfo->destSlotID = slotID;
 					ourOwner->commonInfo->destArtifact = NULL;
 
-					LOCPLINT->cb->setArtifact(
+					// Correction for backpack position when src lies before dest.
+					ourOwner->commonInfo->destSlotID +=
+						(ourOwner->commonInfo->srcAOH == ourOwner
+						&& ourOwner->commonInfo->srcSlotID >= 19
+						&& ourOwner->commonInfo->srcSlotID <= slotID);
+
+					LOCPLINT->cb->swapArtifacts(
+						ourOwner->commonInfo->srcAOH->curHero,
+						ourOwner->commonInfo->srcSlotID,
 						ourOwner->curHero,
-						slotID,
-						ourOwner->commonInfo->srcArtifact->id);
+						ourOwner->commonInfo->destSlotID);
 
 					break;
 				}
@@ -3650,10 +3657,11 @@ void CArtPlace::clickLeft(tribool down, bool previousState)
 				ourOwner->commonInfo->destSlotID = slotID;
 				ourOwner->commonInfo->destArtifact = ourArt;
 
-				LOCPLINT->cb->setArtifact(
-					ourOwner->curHero,
-					slotID,
-					ourOwner->commonInfo->srcArtifact->id);
+				LOCPLINT->cb->swapArtifacts(
+						ourOwner->commonInfo->srcAOH->curHero,
+						ourOwner->commonInfo->srcSlotID,
+						ourOwner->curHero,
+						slotID);
 			}
 		}
 	}
@@ -3684,13 +3692,41 @@ void CArtPlace::select ()
 	ourOwner->commonInfo->srcSlotID = slotID;
 	ourOwner->commonInfo->srcAOH = ourOwner;
 
+	// Temporarily remove artifact from hero.
+	CGHeroInstance* hero = const_cast<CGHeroInstance*>(ourOwner->curHero);
+	if (slotID < 19)
+		hero->artifWorn.erase(slotID);
+	else
+		hero->artifacts.erase(hero->artifacts.begin() + (slotID - 19));
+	hero->recreateArtBonuses();
+
+	// Update the hero bonuses.
+	CHeroWindow* chw = dynamic_cast<CHeroWindow*>(GH.topInt());
+	if (chw != NULL) {
+		chw->deactivate();
+		chw->setHero(hero);
+		chw->activate();
+	} else {
+		CExchangeWindow* cew = dynamic_cast<CExchangeWindow*>(GH.topInt());
+		assert(cew); // Either an exchange- or hero window should be active if an artifact slot is selected.
+		cew->deactivate();
+		for(int g=0; g<ARRAY_COUNT(cew->heroInst); ++g)
+		{
+			if(cew->heroInst[g] == hero)
+			{
+				cew->artifs[g]->setHero(hero);
+			}
+		}
+		cew->prepareBackground();
+		cew->activate();
+	}
+
 	if (slotID >= 19) {
 		// Correcting position in backpack.
 		ourOwner->scrollBackpack(-(slotID - 19 < ourOwner->backpackPos));
 	} else {
 		ourOwner->eraseSlotData(this, slotID);
 	}
-	LOCPLINT->cb->setArtifact(ourOwner->curHero, slotID, -1);
 }
 
 /**
@@ -3952,32 +3988,42 @@ void CArtifactsOfHero::setHero(const CGHeroInstance * hero)
 			backpackPos++;
 		}
 
-		// A swap was made, make the replaced artifact into current selected.
-		if (commonInfo->destSlotID < 19 && commonInfo->destArtifact) {
-			// Source <- Dest
-			commonInfo->srcAOH = commonInfo->destAOH;
-			commonInfo->srcArtifact = commonInfo->destArtifact;
-			commonInfo->srcSlotID = -1; // The artifact's original place is taken now.
+		if (commonInfo->srcAOH == this) {
+			// A swap was made, make the replaced artifact the current selected.
+			if (commonInfo->destSlotID < 19 && commonInfo->destArtifact) {
+				// Temporarily remove artifact from hero.
+				CGHeroInstance * hero = const_cast<CGHeroInstance *>(curHero);
+				if (commonInfo->srcSlotID < 19)
+					hero->artifWorn.erase(commonInfo->srcSlotID);
+				else
+					hero->artifacts.erase(hero->artifacts.begin() + (commonInfo->srcSlotID - 19));
+				hero->recreateArtBonuses();
 
-			// Reset destination parameters.
-			commonInfo->destAOH = NULL;
-			commonInfo->destArtifact = NULL;
-			commonInfo->destSlotID = -1;
+				// Source <- Dest
+				//commonInfo->srcAOH = commonInfo->destAOH;
+				commonInfo->srcArtifact = commonInfo->destArtifact;
+				//commonInfo->srcSlotID = commonInfo->destSlotID;
 
-			CGI->curh->dragAndDropCursor(
-				graphics->artDefs->ourImages[commonInfo->srcArtifact->id].bitmap);
-			markPossibleSlots(commonInfo->srcArtifact);
-		} else if (commonInfo->destAOH != NULL) {
-			// Reset all parameters.
-			commonInfo->srcAOH = NULL;
-			commonInfo->srcArtifact = NULL;
-			commonInfo->srcSlotID = -1;
-			commonInfo->destAOH = NULL;
-			commonInfo->destArtifact = NULL;
-			commonInfo->destSlotID = -1;
+				// Reset destination parameters.
+				commonInfo->destAOH = NULL;
+				commonInfo->destArtifact = NULL;
+				commonInfo->destSlotID = -1;
 
-			CGI->curh->dragAndDropCursor(NULL);
-			unmarkSlots();
+				CGI->curh->dragAndDropCursor(
+					graphics->artDefs->ourImages[commonInfo->srcArtifact->id].bitmap);
+				markPossibleSlots(commonInfo->srcArtifact);
+			} else if (commonInfo->destAOH != NULL) {
+				// Reset all parameters.
+				commonInfo->srcAOH = NULL;
+				commonInfo->srcArtifact = NULL;
+				commonInfo->srcSlotID = -1;
+				commonInfo->destAOH = NULL;
+				commonInfo->destArtifact = NULL;
+				commonInfo->destSlotID = -1;
+
+				CGI->curh->dragAndDropCursor(NULL);
+				unmarkSlots();
+			}
 		}
 	} else {
 		rollback();
@@ -4007,42 +4053,37 @@ void CArtifactsOfHero::rollback()
 {
 	if (curHero != NULL) {
 		// Restore any held artifact to it's original position.
-		if (commonInfo->destArtifact && commonInfo->destAOH == this) {
-			// For an unlikely race condition scenario, put swapped artifact into backpack.
-			LOCPLINT->cb->setArtifact(
-				curHero,
-				19 + curHero->artifacts.size(),
-				commonInfo->destArtifact->id);
-		}
-		else if (commonInfo->srcArtifact && commonInfo->srcAOH == this) {
-			if (commonInfo->srcSlotID != -1) { // Held artifact, just put it back to it's spot.
-				LOCPLINT->cb->setArtifact(
-					curHero,
-					commonInfo->srcSlotID,
-					commonInfo->srcArtifact->id);
-			} else { // Swapped artifact.
+		if (commonInfo->srcArtifact && commonInfo->srcAOH == this) {
+			CGHeroInstance * hero = const_cast<CGHeroInstance *>(curHero);
+
+			if (commonInfo->srcSlotID != -1) {
+				// Put a held artifact back to it's spot.
+				if (commonInfo->srcSlotID < 19)
+					hero->artifWorn[commonInfo->srcSlotID] = commonInfo->srcArtifact->id;
+				else
+					hero->artifacts.insert(hero->artifacts.begin() + (commonInfo->srcSlotID - 19), commonInfo->srcArtifact->id);
+			} else { // Held swapped artifact.
 				// Wear the artifact in a suitable spot.
 				ui16 i = 0;
 				for (; i < 19; i++) {
 					if (artWorn[i]->fitsHere(commonInfo->srcArtifact)
 						&& curHero->artifWorn.find(i) == curHero->artifWorn.end())
 					{
-						LOCPLINT->cb->setArtifact(
-							curHero, i, commonInfo->srcArtifact->id);
+						hero->artifWorn[i] = commonInfo->srcArtifact->id;
 						break;
 					}
 				}
 
 				// If it can't be worn, put it in the backpack.
 				if (i == 19)
-					LOCPLINT->cb->setArtifact(
-						curHero,
-						19 + curHero->artifacts.size(),
-						commonInfo->srcArtifact->id);
+					hero->artifacts.push_back(commonInfo->srcArtifact->id);
 			}
+
+			hero->recreateArtBonuses();
 		}
 	}
-		unmarkSlots();
+
+	unmarkSlots();
 	backpackPos = 0;
 
 	commonInfo->srcAOH = NULL;
diff --git a/hch/CObjectHandler.cpp b/hch/CObjectHandler.cpp
index 3437ecc72..105b94437 100644
--- a/hch/CObjectHandler.cpp
+++ b/hch/CObjectHandler.cpp
@@ -1225,7 +1225,7 @@ void CGHeroInstance::giveArtifact (ui32 aid)
 void CGHeroInstance::recreateArtBonuses()
 {
 	//clear all bonuses from artifacts (if present) and give them again
-	std::remove_if(bonuses.begin(), bonuses.end(), boost::bind(HeroBonus::IsFrom,_1,HeroBonus::ARTIFACT,0xffffff));
+	bonuses.remove_if(boost::bind(HeroBonus::IsFrom,_1,HeroBonus::ARTIFACT,0xffffff));
 	for (std::map<ui16,ui32>::iterator ari = artifWorn.begin(); ari != artifWorn.end(); ari++)
 	{
 		CArtifact &art = VLC->arth->artifacts[ari->second];
diff --git a/lib/NetPacks.h b/lib/NetPacks.h
index 2e5a73da3..e403f49ef 100644
--- a/lib/NetPacks.h
+++ b/lib/NetPacks.h
@@ -1249,22 +1249,6 @@ struct ExchangeArtifacts : public CPackForServer
 	}
 };
 
-struct SetArtifact : public CPackForServer
-{
-	SetArtifact () {};
-	SetArtifact (si32 hid, ui16 slot, int artID)
-		:hid(hid), slot(slot), artID(artID) {};
-	si32 hid;
-	ui16 slot;
-	int artID;
-
-	bool applyGh(CGameHandler *gh);
-	template <typename Handler> void serialize(Handler &h, const int version)
-	{
-		h & hid & slot & artID;
-	}
-};
-
 struct BuyArtifact : public CPackForServer
 {
 	BuyArtifact(){};
diff --git a/lib/RegisterTypes.cpp b/lib/RegisterTypes.cpp
index 5eabc2499..d2f3b7afd 100644
--- a/lib/RegisterTypes.cpp
+++ b/lib/RegisterTypes.cpp
@@ -139,7 +139,6 @@ void registerTypes3(Serializer &s)
 	s.template registerType<UpgradeCreature>();
 	s.template registerType<GarrisonHeroSwap>();
 	s.template registerType<ExchangeArtifacts>();
-	s.template registerType<SetArtifact>();
 	s.template registerType<BuyArtifact>();
 	s.template registerType<TradeOnMarketplace>();
 	s.template registerType<SetFormation>();
diff --git a/server/CGameHandler.cpp b/server/CGameHandler.cpp
index 1d6ccf4dc..665dace31 100644
--- a/server/CGameHandler.cpp
+++ b/server/CGameHandler.cpp
@@ -2522,45 +2522,6 @@ bool CGameHandler::swapArtifacts(si32 srcHeroID, si32 destHeroID, ui16 srcSlot,
 	return true;
 }
 
-/**
- * Sets a hero artifact slot to contain a specific artifact.
- *
- * @param artID ID of an artifact or -1 for no artifact.
- */
-bool CGameHandler::setArtifact(si32 heroID, ui16 slot, int artID)
-{
-	const CGHeroInstance *hero = gs->getHero(heroID);
-
-	if (artID != -1) {
-		const CArtifact &artifact = VLC->arth->artifacts[artID]; 
-
-		if (slot < 19 && !vstd::contains(artifact.possibleSlots, slot)) {
-			complain("Artifact does not fit!");
-			return false;
-		}
-
-		if (slot >= 19 && artifact.isBig()) {
-			complain("Cannot put big artifacts in backpack!");
-			return false;
-		}
-	}
-
-	if (slot == 16) {
-		complain("Cannot alter catapult slot!");
-		return false;
-	}
-
-	// Perform the exchange.
-	SetHeroArtifacts sha;
-	sha.hid = heroID;
-	sha.artifacts = hero->artifacts;
-	sha.artifWorn = hero->artifWorn;
-	sha.setArtAtPos(slot, artID);
-	sendAndApply(&sha);
-
-	return true;
-}
-
 bool CGameHandler::buyArtifact( ui32 hid, si32 aid )
 {
 	CGHeroInstance *hero = gs->getHero(hid);
diff --git a/server/CGameHandler.h b/server/CGameHandler.h
index f3b4148d2..bfed22c41 100644
--- a/server/CGameHandler.h
+++ b/server/CGameHandler.h
@@ -163,7 +163,6 @@ public:
 	bool tradeResources( ui32 val, ui8 player, ui32 id1, ui32 id2 );
 	bool buyArtifact( ui32 hid, si32 aid );
 	bool swapArtifacts(si32 srcHeroID, si32 destHeroID, ui16 srcSlot, ui16 destSlot);
-	bool setArtifact(si32 heroID, ui16 slot, int artID);
 	bool garrisonSwap(si32 tid);
 	bool upgradeCreature( ui32 objid, ui8 pos, ui32 upgID );
 	bool recruitCreatures(si32 objid, ui32 crid, ui32 cram);
diff --git a/server/NetPacksServer.cpp b/server/NetPacksServer.cpp
index 35f3e3ade..6d39fbc99 100644
--- a/server/NetPacksServer.cpp
+++ b/server/NetPacksServer.cpp
@@ -98,12 +98,6 @@ bool ExchangeArtifacts::applyGh( CGameHandler *gh )
 	return gh->swapArtifacts(hid1,hid2,slot1,slot2);
 }
 
-bool SetArtifact::applyGh( CGameHandler *gh )
-{
-	ERROR_IF_NOT_OWNS(hid);
-	return gh->setArtifact(hid, slot, artID);
-}
-
 bool BuyArtifact::applyGh( CGameHandler *gh )
 {
 	ERROR_IF_NOT_OWNS(hid);