diff --git a/CCallback.cpp b/CCallback.cpp
index 21f0d6773..f92514ddf 100644
--- a/CCallback.cpp
+++ b/CCallback.cpp
@@ -732,6 +732,13 @@ void CCallback::sendMessage(const std::string &mess)
 	*cl->serv << &pm;
 }
 
+void CCallback::buildBoat( const IShipyard *obj )
+{
+	BuildBoat bb;
+	bb.objid = obj->o->id;
+	*cl->serv << &bb;
+}
+
 InfoAboutHero::InfoAboutHero()
 {
 	details = NULL;
diff --git a/CCallback.h b/CCallback.h
index 02d1d15d0..cd2a47a5c 100644
--- a/CCallback.h
+++ b/CCallback.h
@@ -37,6 +37,7 @@ struct lua_State;
 class CClient;
 struct TerrainTile;
 class CHeroClass;
+class IShipyard;
 
 struct InfoAboutHero
 {
@@ -102,6 +103,7 @@ public:
 	virtual void recruitHero(const CGTownInstance *town, const CGHeroInstance *hero)=0;
 	virtual void save(const std::string &fname) = 0;
 	virtual void sendMessage(const std::string &mess) = 0;
+	virtual void buildBoat(const IShipyard *obj) = 0;
 
 //get info
 	virtual bool verifyPath(CPath * path, bool blockSea)const =0;
@@ -196,6 +198,7 @@ public:
 	void recruitHero(const CGTownInstance *town, const CGHeroInstance *hero);
 	void save(const std::string &fname);
 	void sendMessage(const std::string &mess);
+	void buildBoat(const IShipyard *obj);
 
 //get info
 	bool verifyPath(CPath * path, bool blockSea) const;
diff --git a/CGameInterface.h b/CGameInterface.h
index da7385c8b..47f450d5d 100644
--- a/CGameInterface.h
+++ b/CGameInterface.h
@@ -31,6 +31,7 @@ class CGObjectInstance;
 class CGDwelling;
 class CCreatureSet;
 class CArmedInstance;
+class IShipyard;
 struct BattleResult;
 struct BattleAttack;
 struct BattleStackAttacked;
@@ -83,12 +84,14 @@ public:
 	virtual void receivedResource(int type, int val){};
 	virtual void showInfoDialog(const std::string &text, const std::vector<Component*> &components, int soundID){};
 	virtual void showRecruitmentDialog(const CGDwelling *dwelling, int level){}
+	virtual void showShipyardDialog(const IShipyard *obj){} //obj may be town or shipyard; state: 0 - can buid, 1 - lack of resources, 2 - dest tile is blocked, 3 - no water
 	//virtual void showSelDialog(const std::string &text, const std::vector<Component*> &components, ui32 askID){};
 	//virtual void showYesNoDialog(const std::string &text, const std::vector<Component*> &components, ui32 askID){};
 	virtual void showBlockingDialog(const std::string &text, const std::vector<Component> &components, ui32 askID, const int soundID, bool selection, bool cancel) = 0; //Show a dialog, player must take decision. If selection then he has to choose between one of given components, if cancel he is allowed to not choose. After making choice, CCallback::selectionMade should be called with number of selected component (1 - n) or 0 for cancel (if allowed) and askID.
 	virtual void showGarrisonDialog(const CArmedInstance *up, const CGHeroInstance *down, boost::function<void()> &onEnd) = 0; //all stacks operations between these objects become allowed, interface has to call onEnd when done
 	virtual void tileHidden(const std::set<int3> &pos){};
 	virtual void tileRevealed(const std::set<int3> &pos){};
+	virtual void newObject(const CGObjectInstance * obj){}; //eg. ship built in shipyard
 	virtual void yourTurn(){};
 	virtual void availableCreaturesChanged(const CGTownInstance *town){};
 	virtual void heroBonusChanged(const CGHeroInstance *hero, const HeroBonus &bonus, bool gain){};//if gain hero received bonus, else he lost it
diff --git a/client/CCastleInterface.cpp b/client/CCastleInterface.cpp
index 8d385de26..b13c14a1e 100644
--- a/client/CCastleInterface.cpp
+++ b/client/CCastleInterface.cpp
@@ -393,6 +393,7 @@ public:
 CCastleInterface::CCastleInterface(const CGTownInstance * Town, int listPos)
 :hslotup(241,387,0,Town->garrisonHero,this),hslotdown(241,483,1,Town->visitingHero,this)
 {
+	showing = false;
 	bars = CDefHandler::giveDefEss("TPTHBAR.DEF");
 	status = CDefHandler::giveDefEss("TPTHCHK.DEF");
 	LOCPLINT->castleInt = this;
@@ -579,7 +580,11 @@ void CCastleInterface::buildingClicked(int building)
 
 				break;
 			}
-		//TODO: case 6: //shipyard
+		case 6: //shipyard
+			{
+				LOCPLINT->showShipyardDialog(town);
+				break;
+			}
 		case 7: case 8: case 9: //fort/citadel/castle
 			{
 				CFortScreen *fs = new CFortScreen(this);
@@ -622,7 +627,9 @@ void CCastleInterface::buildingClicked(int building)
 		//TODO: case 17: //special 1
 		//TODO: case 18: //basic horde 1
 		//TODO: case 19: //upg horde 1
-		//TODO: case 20: //ship at shipyard
+		case 20: //ship at shipyard
+			//Do nothing.
+			break;
 		//TODO: case 21: //special 2
 		case 22: //special 3
 			{
@@ -886,6 +893,19 @@ void CCastleInterface::recreateBuildings()
 		else
 			break;
 	}
+
+	//ship in shipyard
+	if(vstd::contains(town->builtBuildings,6))
+	{
+		std::vector <const CGObjectInstance *> vobjs = LOCPLINT->cb->getVisitableObjs(town->bestLocation());
+		if(vobjs.size() && vobjs.front()->ID == 8) //there is visitable obj at shipyard output tile and it's a boat
+		{
+			Structure * st = CGI->townh->structures[town->subID][20];
+			buildings.push_back(new CBuildingRect(st));
+			s.insert(std::pair<int,int>(st->group,st->ID));
+		}
+	}
+
 	std::sort(buildings.begin(),buildings.end(),srthlp);
 
 	//code for Mana Vortex (there are two sets of animation frames - one without mage guild and one with
@@ -934,6 +954,10 @@ void CCastleInterface::recreateBuildings()
 			shipyard->max = 1;
 		}
 	}
+
+	if(showing)
+		for(size_t i=0;i<buildings.size();i++)
+			buildings[i]->activate();
 }
 
 CRecruitmentWindow * CCastleInterface::showRecruitmentWindow( int building )
diff --git a/client/CPlayerInterface.cpp b/client/CPlayerInterface.cpp
index 791a1fe99..6162203c6 100644
--- a/client/CPlayerInterface.cpp
+++ b/client/CPlayerInterface.cpp
@@ -1726,6 +1726,7 @@ const CGHeroInstance * CPlayerInterface::getWHero( int pos )
 void CPlayerInterface::showRecruitmentDialog(const CGDwelling *dwelling, int level)
 {
 	waitWhileDialog();
+	boost::unique_lock<boost::recursive_mutex> un(*pim);
 	std::vector<std::pair<int,int> > cres;
 	for(int i = 0; i < dwelling->creatures.size(); i++)
 	{
@@ -1744,6 +1745,30 @@ void CPlayerInterface::waitWhileDialog()
 		showingDialog->cond.wait(un);
 }
 
+void CPlayerInterface::showShipyardDialog(const IShipyard *obj)
+{
+	boost::unique_lock<boost::recursive_mutex> un(*pim);
+	int state = obj->state();
+	std::vector<si32> cost;
+	obj->getBoatCost(cost);
+	CShipyardWindow *csw = new CShipyardWindow(cost, state, boost::bind(&CCallback::buildBoat, cb, obj));
+	pushInt(csw);
+}
+
+void CPlayerInterface::newObject( const CGObjectInstance * obj )
+{
+	boost::unique_lock<boost::recursive_mutex> un(*pim);
+	CGI->mh->printObject(obj);
+	//we might have built a boat in shipyard in opened town screen
+	if(obj->ID == 8 
+		&& LOCPLINT->castleInt  
+		&&  obj->pos-obj->getVisitableOffset() == LOCPLINT->castleInt->town->bestLocation())
+	{
+		CGI->soundh->playSound(soundBase::newBuilding);
+		LOCPLINT->castleInt->recreateBuildings();
+	}
+}
+
 void SystemOptions::setMusicVolume( int newVolume )
 {
 	musicVolume = newVolume;
diff --git a/client/CPlayerInterface.h b/client/CPlayerInterface.h
index 64477a3c4..28171dc13 100644
--- a/client/CPlayerInterface.h
+++ b/client/CPlayerInterface.h
@@ -163,10 +163,12 @@ public:
 	void receivedResource(int type, int val);
 	void showInfoDialog(const std::string &text, const std::vector<Component*> &components, int soundID);
 	void showRecruitmentDialog(const CGDwelling *dwelling, int level);
+	void showShipyardDialog(const IShipyard *obj); //obj may be town or shipyard; 
 	void showBlockingDialog(const std::string &text, const std::vector<Component> &components, ui32 askID, int soundID, bool selection, bool cancel); //Show a dialog, player must take decision. If selection then he has to choose between one of given components, if cancel he is allowed to not choose. After making choice, CCallback::selectionMade should be called with number of selected component (1 - n) or 0 for cancel (if allowed) and askID.
 	void showGarrisonDialog(const CArmedInstance *up, const CGHeroInstance *down, boost::function<void()> &onEnd);
 	void tileHidden(const std::set<int3> &pos); //called when given tiles become hidden under fog of war
 	void tileRevealed(const std::set<int3> &pos); //called when fog of war disappears from given tiles
+	void newObject(const CGObjectInstance * obj);
 	void yourTurn();
 	void availableCreaturesChanged(const CGTownInstance *town);
 	void heroBonusChanged(const CGHeroInstance *hero, const HeroBonus &bonus, bool gain);//if gain hero received bonus, else he lost it
@@ -206,7 +208,7 @@ public:
 	void handleMouseMotion(SDL_Event *sEvent);
 	void init(ICallback * CB);
 	int3 repairScreenPos(int3 pos); //returns position closest to pos we can center screen on
-	void showInfoDialog(const std::string &text, const std::vector<SComponent*> & components, int soundID);
+	void showInfoDialog(const std::string &text, const std::vector<SComponent*> & components = std::vector<SComponent*>(), int soundID = 0);
 	void showYesNoDialog(const std::string &text, const std::vector<SComponent*> & components, CFunctionList<void()> onYes, CFunctionList<void()> onNo, bool DelComps); //deactivateCur - whether current main interface should be deactivated; delComps - if components will be deleted on window close
 	bool moveHero(const CGHeroInstance *h, CPath path);
 
diff --git a/client/GUIClasses.cpp b/client/GUIClasses.cpp
index 98ac00136..52c938b71 100644
--- a/client/GUIClasses.cpp
+++ b/client/GUIClasses.cpp
@@ -3976,4 +3976,67 @@ CExchangeWindow::~CExchangeWindow() //d-tor
 	}
 }
 
+void CShipyardWindow::activate()
+{
+	build->activate();
+	quit->activate();
+}
 
+void CShipyardWindow::deactivate()
+{
+	build->deactivate();
+	quit->deactivate();
+}
+
+void CShipyardWindow::show( SDL_Surface * to )
+{
+	blitAt(bg,pos,to);
+	CSDL_Ext::blit8bppAlphaTo24bpp(graphics->boatAnims[1]->ourImages[21 + frame++/8%8].bitmap, NULL, to, &genRect(64, 96, pos.x+110, pos.y+85));
+	build->show(to);
+	quit->show(to);
+}
+
+CShipyardWindow::~CShipyardWindow()
+{
+	delete build;
+	delete quit;
+}
+
+CShipyardWindow::CShipyardWindow(const std::vector<si32> &cost, int state, const boost::function<void()> &onBuy)
+{
+	frame = 0;
+	SDL_Surface * bgtemp; //loaded as 8bpp surface
+	bgtemp = BitmapHandler::loadBitmap("TPSHIP.bmp");
+	pos.x = screen->w/2 - bgtemp->w/2;
+	pos.y = screen->h/2 - bgtemp->h/2;
+	pos.w = bgtemp->w;
+	pos.h = bgtemp->h;
+	SDL_SetColorKey(bgtemp,SDL_SRCCOLORKEY,SDL_MapRGB(bgtemp->format,0,255,255));
+	graphics->blueToPlayersAdv(bgtemp, LOCPLINT->playerID);
+	bg = SDL_ConvertSurface(bgtemp, screen->format, screen->flags); //to 24 bpp
+	SDL_FreeSurface(bgtemp);
+
+	bgtemp = BitmapHandler::loadBitmap("TPSHIPBK.bmp");
+	blitAt(bgtemp, 100, 69, bg);
+	SDL_FreeSurface(bgtemp);
+
+	bool affordable = true;
+	for(int i = 0; i < cost.size(); i++)
+	{
+		if(cost[i] > LOCPLINT->cb->getResourceAmount(i))
+		{
+			affordable = false;
+			break;
+		}
+	}
+
+	quit = new AdventureMapButton(CGI->generaltexth->allTexts[599], "", boost::bind(&CPlayerInterface::popIntTotally, LOCPLINT, this), pos.x+224, pos.y+312, "ICANCEL.DEF", SDLK_RETURN);
+	build = new AdventureMapButton(CGI->generaltexth->allTexts[598], "", boost::bind(&CPlayerInterface::popIntTotally, LOCPLINT, this), pos.x+42, pos.y+312, "IBY6432.DEF", SDLK_RETURN);
+	build->callback += onBuy;
+
+	if(!affordable)
+		build->block(true);
+
+	printAtMiddle(CGI->generaltexth->jktexts[15], 165, 26, GEOR13, zwykly, bg); //Resource cost:
+	printAtMiddle(CGI->generaltexth->jktexts[14], 165, 218, GEOR16, tytulowy, bg); //Build A New Ship
+}
diff --git a/client/GUIClasses.h b/client/GUIClasses.h
index 061e4548d..2d1d32e01 100644
--- a/client/GUIClasses.h
+++ b/client/GUIClasses.h
@@ -700,5 +700,20 @@ public:
 	~CExchangeWindow(); //d-tor
 };
 
+class CShipyardWindow : public CIntObject, public IShowActivable
+{
+public:
+	CStatusBar *bar;
+	SDL_Surface *bg; //background
+	AdventureMapButton *build, *quit;
+
+	unsigned char frame; //frame of the boat animation
+
+	void activate();
+	void deactivate();
+	void show(SDL_Surface * to);
+	CShipyardWindow(const std::vector<si32> &cost, int state, const boost::function<void()> &onBuy);
+	~CShipyardWindow();
+};
 
 #endif //__GUICLASSES_H__
diff --git a/client/Graphics.cpp b/client/Graphics.cpp
index 31e69f6c5..3960ed571 100644
--- a/client/Graphics.cpp
+++ b/client/Graphics.cpp
@@ -16,6 +16,7 @@
 #include "../lib/VCMI_Lib.h"
 #include "../CCallback.h"
 #include "../hch/CTownHandler.h"
+#include "../hch/CDefObjInfoHandler.h"
 using namespace boost::assign;
 using namespace CSDL_Ext;
 #ifdef min
@@ -360,6 +361,9 @@ void Graphics::loadHeroAnims()
 	loadHeroAnim("AB01_.DEF", rotations, &Graphics::boatAnims);
 	loadHeroAnim("AB02_.DEF", rotations, &Graphics::boatAnims);
 	loadHeroAnim("AB03_.DEF", rotations, &Graphics::boatAnims);
+	VLC->dobjinfo->gobjs[8][0]->handler = boatAnims[0];
+	VLC->dobjinfo->gobjs[8][1]->handler = boatAnims[1];
+	VLC->dobjinfo->gobjs[8][2]->handler = boatAnims[2];
 }
 
 void Graphics::loadHeroAnim( const std::string &name, const std::vector<std::pair<int,int> > &rotations, std::vector<CDefEssential *> Graphics::*dst )
diff --git a/client/NetPacksClient.cpp b/client/NetPacksClient.cpp
index 23b289173..5d6e8e616 100644
--- a/client/NetPacksClient.cpp
+++ b/client/NetPacksClient.cpp
@@ -488,6 +488,28 @@ void OpenWindow::applyCl(CClient *cl)
 			const CGDwelling *dw = dynamic_cast<const CGDwelling*>(cl->getObj(id1));
 			INTERFACE_CALL_IF_PRESENT(dw->tempOwner,showRecruitmentDialog, dw, 0);
 		}
+		break;
+	case SHIPYARD_WINDOW:
+		{
+			const IShipyard *sy = IShipyard::castFrom(cl->getObj(id1));
+			INTERFACE_CALL_IF_PRESENT(sy->o->tempOwner, showShipyardDialog, sy);
+		}
+		break;
 	}
 
 }
+
+void NewObject::applyCl(CClient *cl)
+{
+	const CGObjectInstance *obj = cl->getObj(id);
+	//notify interfaces about move
+	for(std::map<ui8, CGameInterface*>::iterator i=cl->playerint.begin();i!=cl->playerint.end();i++)
+	{
+		//TODO: check if any covered tile is visible
+		if(i->first >= PLAYER_LIMIT) continue;
+		if(GS(cl)->players[i->first].fogOfWarMap[obj->pos.x][obj->pos.y][obj->pos.z])
+		{
+			i->second->newObject(obj);
+		}
+	}
+}
diff --git a/hch/CObjectHandler.cpp b/hch/CObjectHandler.cpp
index dfd29371c..793adef02 100644
--- a/hch/CObjectHandler.cpp
+++ b/hch/CObjectHandler.cpp
@@ -9,6 +9,7 @@
 #include "CSpellHandler.h"
 #include <boost/bind.hpp>
 #include <boost/algorithm/string/replace.hpp>
+#include <boost/assign/std/vector.hpp> 
 #include <boost/lexical_cast.hpp>
 #include <boost/random/linear_congruential.hpp>
 #include "CTownHandler.h"
@@ -20,6 +21,7 @@
 #include "../lib/NetPacks.h"
 #include "../StartInfo.h"
 #include "../lib/map.h"
+using namespace boost::assign;
 
 /*
  * CObjectHandler.cpp, part of VCMI engine
@@ -291,6 +293,10 @@ void CGObjectInstance::giveDummyBonus(int heroID, ui8 duration) const
 	cb->giveHeroBonus(&gbonus);
 }
 
+void CGObjectInstance::onHeroVisit( const CGHeroInstance * h ) const
+{
+}
+
 static int lowestSpeed(const CGHeroInstance * chi)
 {
 	if(!chi->army.slots.size())
@@ -1222,6 +1228,7 @@ bool CGTownInstance::hasCapitol() const
 	return (builtBuildings.find(13))!=builtBuildings.end();
 }
 CGTownInstance::CGTownInstance()
+	:IShipyard(this)
 {
 	builded=-1;
 	destroyed=-1;
@@ -1283,6 +1290,11 @@ int3 CGTownInstance::getSightCenter() const
 	return pos - int3(2,0,0);
 }
 
+void CGTownInstance::getOutOffsets( std::vector<int3> &offsets ) const
+{
+	offsets += int3(-1,3,0), int3(-3,3,0);
+}
+
 void CGVisitableOPH::onHeroVisit( const CGHeroInstance * h ) const
 {
 	if(visitors.find(h->id)==visitors.end())
@@ -2498,6 +2510,7 @@ void CGBonusingObject::onHeroVisit( const CGHeroInstance * h ) const
 	{
 	case 11: //buoy
 		messageID = 21;
+		sound = soundBase::MORALE;
 		gbonus.bonus.type = HeroBonus::MORALE;
 		gbonus.bonus.val = +1;
 		gbonus.bdescr <<  std::pair<ui8,ui32>(6,94);
@@ -3412,4 +3425,122 @@ void CGSirens::onHeroVisit( const CGHeroInstance * h ) const
 		}
 	}
 	cb->showInfoDialog(&iw);
+}
+
+void IShipyard::getBoatCost( std::vector<si32> &cost ) const
+{
+	cost.resize(RESOURCE_QUANTITY);
+	cost[0] = 10;
+	cost[6] = 1000;
+}
+
+//bool IShipyard::validLocation() const
+//{
+//	std::vector<int3> offsets;
+//	getOutOffsets(offsets);
+//
+//	TerrainTile *tile;
+//	for(int i = 0; i < offsets.size(); i++)
+//		if((tile = IObjectInterface::cb->getTile(o->pos + offsets[i]))  &&  tile->tertype == TerrainTile::water) //tile is in the map and is water
+//			return true;
+//	return false;
+//}
+
+int3 IShipyard::bestLocation() const
+{
+	std::vector<int3> offsets;
+	getOutOffsets(offsets);
+
+	TerrainTile *tile;
+	for(int i = 0; i < offsets.size(); i++)
+		if((tile = IObjectInterface::cb->getTile(o->pos + offsets[i]))  &&  tile->tertype == TerrainTile::water) //tile is in the map and is water
+			return o->pos + offsets[i];
+	return int3(-1,-1,-1);
+}
+
+IShipyard::IShipyard(const CGObjectInstance *O) 
+	: o(O)
+{
+}
+
+int IShipyard::state() const
+{
+	int3 tile = bestLocation();
+	TerrainTile *t = IObjectInterface::cb->getTile(tile);
+	if(!t)
+		return 3; //no water
+	else if(!t->blockingObjects.size())
+		return 0; //OK
+	else if(t->blockingObjects.front()->ID == 8)
+		return 1; //blocked with boat
+	else
+		return 2; //blocked
+}
+
+IShipyard * IShipyard::castFrom( CGObjectInstance *obj )
+{
+	if(obj->ID == TOWNI_TYPE)
+	{
+		return static_cast<CGTownInstance*>(obj);
+	}
+	else if(obj->ID == 87)
+	{
+		return static_cast<CGShipyard*>(obj);
+	}
+	else
+	{
+		tlog1 << "Cannot cast to IShipyar object with ID " << obj->ID << std::endl;
+		return NULL;
+	}
+}
+
+const IShipyard * IShipyard::castFrom( const CGObjectInstance *obj )
+{
+	return castFrom(const_cast<CGObjectInstance*>(obj));
+}
+
+CGShipyard::CGShipyard()
+	:IShipyard(this)
+{
+}
+
+void CGShipyard::getOutOffsets( std::vector<int3> &offsets ) const
+{
+	offsets += int3(1,0,0), int3(-3,0,0), int3(1,1,0), int3(-3,1,0), int3(1,-1,0), int3(-3,-1,0), 
+		int3(-2,-1,0), int3(0,-1,0), int3(-1,-1,0), int3(-2,1,0), int3(0,1,0), int3(-1,1,0);
+}
+
+void CGShipyard::onHeroVisit( const CGHeroInstance * h ) const
+{
+	if(tempOwner != h->tempOwner)
+		cb->setOwner(id, h->tempOwner);
+
+	int s = state();
+	if(s)
+	{
+		InfoWindow iw;
+		iw.player = tempOwner;
+		switch(s)
+		{
+		case 1: 
+			iw.text.addTxt(MetaString::GENERAL_TXT, 51);
+			break;
+		case 2:
+			iw.text.addTxt(MetaString::ADVOB_TXT, 189);
+			break;
+		case 3:
+			tlog1 << "Shipyard without water!!! " << pos << "\t" << id << std::endl;
+			return;
+		}
+
+		cb->showInfoDialog(&iw);
+	}
+	else
+	{
+		OpenWindow ow;
+		ow.id1 = id;
+		ow.id2 = h->id;
+		ow.window = OpenWindow::SHIPYARD_WINDOW;
+		cb->sendAndApply(&ow);
+	}
 }
\ No newline at end of file
diff --git a/hch/CObjectHandler.h b/hch/CObjectHandler.h
index fdb505e25..d9e61107f 100644
--- a/hch/CObjectHandler.h
+++ b/hch/CObjectHandler.h
@@ -104,6 +104,22 @@ public:
 	virtual void setProperty(ui8 what, ui32 val);//synchr
 };
 
+class DLL_EXPORT IShipyard
+{
+public:
+	const CGObjectInstance *o;
+
+	IShipyard(const CGObjectInstance *O);
+	void getBoatCost(std::vector<si32> &cost) const;
+	virtual void getOutOffsets(std::vector<int3> &offsets) const =0; //offsets to obj pos when we boat can be placed
+	//virtual bool validLocation() const; //returns true if there is a water tile near where boat can be placed
+	int3 bestLocation() const; //returns location when the boat should be placed
+	int state() const; //0 - can buid, 1 - there is already a boat at dest tile, 2 - dest tile is blocked, 3 - no water
+
+	static const IShipyard *castFrom(const CGObjectInstance *obj);
+	static IShipyard *castFrom(CGObjectInstance *obj);
+};
+
 class DLL_EXPORT CGObjectInstance : protected IObjectInterface
 {
 protected:
@@ -139,6 +155,7 @@ public:
 	virtual const std::string & getHoverText() const;
 	//////////////////////////////////////////////////////////////////////////
 	void initObj();
+	void onHeroVisit(const CGHeroInstance * h) const;
 	void setProperty(ui8 what, ui32 val);//synchr
 	virtual void setPropertyDer(ui8 what, ui32 val);//synchr
 
@@ -309,7 +326,7 @@ public:
 	void wantsFight(const CGHeroInstance *h, ui32 answer) const;
 };
 
-class DLL_EXPORT CGTownInstance : public CGDwelling
+class DLL_EXPORT CGTownInstance : public CGDwelling, public IShipyard
 {
 public:
 	CTown * town;
@@ -357,6 +374,7 @@ public:
 
 	int3 getSightCenter() const; //"center" tile from which the sight distance is calculated
 	int getSightRadious() const; //returns sight distance
+	void getOutOffsets(std::vector<int3> &offsets) const; //offsets to obj pos when we boat can be placed
 
 	//////////////////////////////////////////////////////////////////////////
 
@@ -777,7 +795,13 @@ public:
 	}
 };
 
-
+class CGShipyard : public CGObjectInstance, public IShipyard
+{
+public:
+	void getOutOffsets(std::vector<int3> &offsets) const; //offsets to obj pos when we boat can be placed
+	CGShipyard();
+	void onHeroVisit(const CGHeroInstance * h) const;
+};
 
 class DLL_EXPORT CObjectHandler
 {
diff --git a/lib/IGameCallback.cpp b/lib/IGameCallback.cpp
index bfc0c4742..0893f6c85 100644
--- a/lib/IGameCallback.cpp
+++ b/lib/IGameCallback.cpp
@@ -145,3 +145,10 @@ void IGameCallback::getAllowed(std::vector<CArtifact*> &out, int flags)
 	if(flags & CArtifact::ART_RELIC)
 		getAllowedArts(out,&CArtHandler::relics);
 }
+
+TerrainTile * IGameCallback::getTile( int3 pos )
+{
+	if(!gs->map->isInTheMap(pos))
+		return NULL;
+	return &gs->map->getTile(pos);
+}
\ No newline at end of file
diff --git a/lib/IGameCallback.h b/lib/IGameCallback.h
index 96d1babbe..d9f5aa277 100644
--- a/lib/IGameCallback.h
+++ b/lib/IGameCallback.h
@@ -32,6 +32,7 @@ struct CPackForClient;
 class CArtHandler;
 class CArtifact;
 class CArmedInstance;
+struct TerrainTile;
 
 class DLL_EXPORT IGameCallback
 {
@@ -55,6 +56,7 @@ public:
 	virtual bool isAllowed(int type, int id); //type: 0 - spell; 1- artifact
 	virtual void getAllowedArts(std::vector<CArtifact*> &out, std::vector<CArtifact*> CArtHandler::*arts);
 	virtual void getAllowed(std::vector<CArtifact*> &out, int flags); //flags: bitfield uses EartClass
+	virtual TerrainTile * getTile(int3 pos);
 
 	//do sth
 	virtual void changeSpells(int hid, bool give, const std::set<ui32> &spells)=0;
diff --git a/lib/NetPacks.h b/lib/NetPacks.h
index 2c08242d5..fd310526e 100644
--- a/lib/NetPacks.h
+++ b/lib/NetPacks.h
@@ -518,7 +518,7 @@ struct OpenWindow : public CPackForClient //517
 	OpenWindow(){type = 517;};
 	void applyCl(CClient *cl);
 
-	enum EWindow {EXCHANGE_WINDOW, RECRUITMENT_FIRST, RECRUITMENT_ALL};
+	enum EWindow {EXCHANGE_WINDOW, RECRUITMENT_FIRST, RECRUITMENT_ALL, SHIPYARD_WINDOW};
 	ui8 window;
 	ui32 id1, id2;
 
@@ -528,6 +528,23 @@ struct OpenWindow : public CPackForClient //517
 	}
 };
 
+struct NewObject  : public CPackForClient //518
+{
+	NewObject(){type = 518;};
+	void applyCl(CClient *cl);
+	DLL_EXPORT void applyGs(CGameState *gs);
+
+	ui32 ID, subID;
+	int3 pos;
+
+	int id; //used internally
+
+	template <typename Handler> void serialize(Handler &h, const int version)
+	{
+		h & ID & subID & pos;
+	}
+};
+
 struct NewTurn : public CPackForClient //101
 {
 	DLL_EXPORT void applyGs(CGameState *gs);
@@ -1118,6 +1135,19 @@ struct HireHero : public CPackForServer
 	}
 };
 
+struct BuildBoat : public CPackForServer 
+{
+	BuildBoat(){};
+	si32 objid; //where player wants to buy a boat
+
+	bool applyGh(CGameHandler *gh);
+	template <typename Handler> void serialize(Handler &h, const int version)
+	{
+		h & objid;
+	}
+
+};
+
 struct QueryReply : public CPackForServer
 {
 	QueryReply(){};
diff --git a/lib/NetPacksLib.cpp b/lib/NetPacksLib.cpp
index dc4f59e51..f05d79396 100644
--- a/lib/NetPacksLib.cpp
+++ b/lib/NetPacksLib.cpp
@@ -490,6 +490,32 @@ DLL_EXPORT void GiveHero::applyGs( CGameState *gs )
 	h->inTownGarrison = false;
 }
 
+DLL_EXPORT void NewObject::applyGs( CGameState *gs )
+{
+	
+	CGObjectInstance *o = NULL;
+	switch(ID)
+	{
+	case 8:
+		o = new CGBoat();
+		break;
+	default:
+		o = new CGObjectInstance();
+		break;
+	}
+	o->ID = ID;
+	o->subID = subID;
+	o->pos = pos;
+	o->defInfo = VLC->dobjinfo->gobjs[ID][subID];
+	id = o->id = gs->map->objects.size();
+	o->hoverName = VLC->generaltexth->names[ID];
+
+	gs->map->objects.push_back(o);
+	gs->map->addBlockVisTiles(o);
+	o->initObj();
+	assert(o->defInfo);
+}
+
 DLL_EXPORT void NewTurn::applyGs( CGameState *gs )
 {
 	gs->day = day;
diff --git a/lib/RegisterTypes.cpp b/lib/RegisterTypes.cpp
index 145787615..64b22f6c7 100644
--- a/lib/RegisterTypes.cpp
+++ b/lib/RegisterTypes.cpp
@@ -45,6 +45,7 @@ void registerTypes1(Serializer &s)
 	s.template registerType<CGBoat>();
 	s.template registerType<CGSirens>();
 	s.template registerType<CGOnceVisitable>();
+	s.template registerType<CGShipyard>();
 	s.template registerType<CGObjectInstance>();
 }
 
@@ -96,6 +97,7 @@ void registerTypes2(Serializer &s)
 	s.template registerType<StacksInjured>();
 	s.template registerType<ShowInInfobox>();
 	s.template registerType<OpenWindow>();
+	s.template registerType<NewObject>();
 
 	s.template registerType<SaveGame>();
 	s.template registerType<SetSelection>();
@@ -120,6 +122,7 @@ void registerTypes3(Serializer &s)
 	s.template registerType<TradeOnMarketplace>();
 	s.template registerType<SetFormation>();
 	s.template registerType<HireHero>();
+	s.template registerType<BuildBoat>();
 	s.template registerType<QueryReply>();
 	s.template registerType<MakeAction>();
 	s.template registerType<MakeCustomAction>();
diff --git a/lib/map.cpp b/lib/map.cpp
index 44883f9ed..a8ee626f9 100644
--- a/lib/map.cpp
+++ b/lib/map.cpp
@@ -1688,7 +1688,6 @@ void Mapa::readObjects( unsigned char * bufor, int &i)
 				break;
 			}
 		case 42: //lighthouse
-		case 87: //shipyard
 		case 220://mine (?)
 			{
 				nobj = new CGObjectInstance();
@@ -1881,6 +1880,12 @@ void Mapa::readObjects( unsigned char * bufor, int &i)
 				nobj = new CGSirens();
 				break;
 			}
+		case 87: //Shipyard
+			{
+				nobj = new CGShipyard();
+				nobj->setOwner(readNormalNr(bufor,i)); i+=4;
+				break;
+			}
 		case 214: //hero placeholder
 			{
 				i+=3; //TODO: handle it more properly
@@ -1945,7 +1950,7 @@ void Mapa::readEvents( unsigned char * bufor, int &i )
 	}
 }
 
-bool Mapa::isInTheMap( int3 pos )
+bool Mapa::isInTheMap( int3 pos ) const
 {
 	if(pos.x<0 || pos.y<0 || pos.z<0 || pos.x >= width || pos.y >= height || pos.z > twoLevel)
 		return false;
@@ -2034,6 +2039,17 @@ TerrainTile & Mapa::getTile( int3 tile )
 {
 	return terrain[tile.x][tile.y][tile.z];
 }
+
+const TerrainTile & Mapa::getTile( int3 tile ) const
+{
+	return terrain[tile.x][tile.y][tile.z];
+}
+
+bool Mapa::isWaterTile( int3 pos ) const
+{
+	return isInTheMap(pos) && getTile(pos).tertype == TerrainTile::water;
+}
+
 void CMapInfo::countPlayers()
 {
 	playerAmnt=humenPlayers=0;
diff --git a/lib/map.h b/lib/map.h
index 277e9893c..b4e645281 100644
--- a/lib/map.h
+++ b/lib/map.h
@@ -335,8 +335,10 @@ struct DLL_EXPORT Mapa : public CMapHeader
 	Mapa();
 	~Mapa();
 	TerrainTile &getTile(int3 tile);
+	const TerrainTile &getTile(int3 tile) const;
 	CGHeroInstance * getHero(int ID, int mode=0);
-	bool isInTheMap(int3 pos);
+	bool isInTheMap(int3 pos) const;
+	bool isWaterTile(int3 pos) const; //out-of-pos safe
 	template <typename Handler> void serialize(Handler &h, const int formatVersion)
 	{
 		h & static_cast<CMapHeader&>(*this);
diff --git a/mapHandler.cpp b/mapHandler.cpp
index ef53338d4..c08d41139 100644
--- a/mapHandler.cpp
+++ b/mapHandler.cpp
@@ -720,13 +720,13 @@ void CMapHandler::terrainRect(int3 top_tile, unsigned char anim, std::vector< st
 
 			for(int h=0; h < objects.size(); ++h)
 			{
+				const CGObjectInstance *obj = objects[h].first;
+				ui8 color = obj->tempOwner;
 				//checking if object has non-empty graphic on this tile
-				if(!objects[h].first->coveringAt(objects[h].first->pos.x - (top_tile.x + bx), top_tile.y + by - objects[h].first->pos.y + 5))
+				if(!obj->coveringAt(obj->pos.x - (top_tile.x + bx), top_tile.y + by - obj->pos.y + 5))
 					continue;
 
-				//printing object
 				SDL_Rect sr;
-
 				sr.x = srx;
 				sr.y = sry;
 				sr.w = sr.h = 32;
@@ -735,73 +735,87 @@ void CMapHandler::terrainRect(int3 top_tile, unsigned char anim, std::vector< st
 				pp.h = sr.h;
 				pp.w = sr.w;
 
-				const CGHeroInstance * themp = (objects[h].first->ID != HEROI_TYPE  
+				const CGHeroInstance * themp = (obj->ID != HEROI_TYPE  
 					? NULL  
-					: static_cast<const CGHeroInstance*>(objects[h].first));
+					: static_cast<const CGHeroInstance*>(obj));
 
-				if(themp && themp->moveDir) //it's hero
+				//print hero / boat and flag
+				if(themp && themp->moveDir && themp->type  ||  obj->ID == 8) //it's hero or boat
 				{
-					int imgVal = 8;
-					SDL_Surface * tb;
-					if(themp->type==NULL)
-						continue;
-
-					//pick graphics of hero (or boat if hero is sailing)
-					std::vector<Cimage> & iv = (themp->boat) 
-												? graphics->boatAnims[themp->boat->subID]->ourImages
-												: graphics->heroAnims[themp->type->heroType]->ourImages;
-
-					//pick appropriate flag set
+					const int IMGVAL = 8; //frames per group of movement animation
+					ui8 dir;
+					std::vector<Cimage> * iv = NULL;
 					std::vector<CDefEssential *> Graphics::*flg = NULL;
-					if(themp->boat)
+					SDL_Surface * tb; //surface to blitted
+					
+					if(themp) //hero
 					{
-						switch (themp->boat->subID)
+						dir = themp->moveDir;
+
+						//pick graphics of hero (or boat if hero is sailing)
+						iv = (themp->boat) 
+							? &graphics->boatAnims[themp->boat->subID]->ourImages
+							: &graphics->heroAnims[themp->type->heroType]->ourImages;
+
+						//pick appropriate flag set
+						if(themp->boat)
 						{
-						case 0: flg = &Graphics::flags1; break;
-						case 1: flg = &Graphics::flags2; break;
-						case 2: flg = &Graphics::flags3; break;
-						default: tlog1 << "Not supported boat subtype: " << themp->boat->subID << std::endl;
+							switch (themp->boat->subID)
+							{
+							case 0: flg = &Graphics::flags1; break;
+							case 1: flg = &Graphics::flags2; break;
+							case 2: flg = &Graphics::flags3; break;
+							default: tlog1 << "Not supported boat subtype: " << themp->boat->subID << std::endl;
+							}
+						}
+						else
+						{
+							flg = &Graphics::flags4;
 						}
 					}
-					else
+					else //boat
 					{
-						flg = &Graphics::flags4;
+						const CGBoat *boat = static_cast<const CGBoat*>(obj);
+						dir = boat->direction;
+						iv = &graphics->boatAnims[boat->subID]->ourImages;
 					}
 
-					//print hero / boat and flag
-					if(!themp->isStanding) //hero is moving
+
+					if(themp && !themp->isStanding) //hero is moving
 					{
 						size_t gg;
-						for(gg=0; gg<iv.size(); ++gg)
+						for(gg=0; gg<iv->size(); ++gg)
 						{
-							if(iv[gg].groupNumber==getHeroFrameNum(themp->moveDir, !themp->isStanding))
+							if((*iv)[gg].groupNumber==getHeroFrameNum(dir, true))
 							{
-								tb = iv[gg+heroAnim%imgVal].bitmap;
+								tb = (*iv)[gg+heroAnim%IMGVAL].bitmap;
 								break;
 							}
 						}
 						CSDL_Ext::blit8bppAlphaTo24bpp(tb,&pp,extSurf,&sr);
 
 						//printing flag
-						pp.y+=imgVal*2-32;
+						pp.y+=IMGVAL*2-32;
 						sr.y-=16;
-						SDL_BlitSurface((graphics->*flg)[themp->getOwner()]->ourImages[gg+heroAnim%imgVal+35].bitmap, &pp, extSurf, &sr);
+						SDL_BlitSurface((graphics->*flg)[color]->ourImages[gg+heroAnim%IMGVAL+35].bitmap, &pp, extSurf, &sr);
 					}
-					else //hero stands still
+					else //hero / boat stands still
 					{
 						size_t gg;
-						for(gg=0; gg < iv.size(); ++gg)
+						for(gg=0; gg < iv->size(); ++gg)
 						{
-							if(iv[gg].groupNumber==getHeroFrameNum(themp->moveDir, !themp->isStanding))
+							if((*iv)[gg].groupNumber==getHeroFrameNum(dir, false))
 							{
-								tb = iv[gg].bitmap;
+								tb = (*iv)[gg].bitmap;
 								break;
 							}
 						}
 						CSDL_Ext::blit8bppAlphaTo24bpp(tb,&pp,extSurf,&sr);
 
 						//printing flag
-						if(themp->pos.x==top_tile.x+bx && themp->pos.y==top_tile.y+by)
+						if(flg  
+							&&  obj->pos.x == top_tile.x + bx  
+							&&  obj->pos.y == top_tile.y + by)
 						{
 							SDL_Rect bufr = sr;
 							bufr.x-=2*32;
@@ -809,19 +823,18 @@ void CMapHandler::terrainRect(int3 top_tile, unsigned char anim, std::vector< st
 							bufr.h = 64;
 							bufr.w = 96;
 							if(bufr.x-extRect->x>-64)
-								SDL_BlitSurface((graphics->*flg)[themp->getOwner()]->ourImages[ getHeroFrameNum(themp->moveDir, !themp->isStanding) *8+(heroAnim/4)%imgVal].bitmap, NULL, extSurf, &bufr);
+								SDL_BlitSurface((graphics->*flg)[color]->ourImages[getHeroFrameNum(dir, false) *8+(heroAnim/4)%IMGVAL].bitmap, NULL, extSurf, &bufr);
 						}
 					}
 				}
-				else //blit object
+				else //blit normal object
 				{
-					const CGObjectInstance *obj = objects[h].first;
 					const std::vector<Cimage> &ourImages = obj->defInfo->handler->ourImages;
 					SDL_Surface *bitmap = ourImages[(anim+obj->animPhaseShift)%ourImages.size()].bitmap;
 
 					//setting appropriate flag color
-					if(obj->tempOwner<8 || obj->tempOwner==255)
-						CSDL_Ext::setPlayerColor(bitmap, obj->tempOwner);
+					if(color < 8 || color==255)
+						CSDL_Ext::setPlayerColor(bitmap, color);
 					
 					CSDL_Ext::blit8bppAlphaTo24bpp(bitmap,&pp,extSurf,&sr);
 				}
diff --git a/server/CGameHandler.cpp b/server/CGameHandler.cpp
index 5fa2f669d..c783d8a8e 100644
--- a/server/CGameHandler.cpp
+++ b/server/CGameHandler.cpp
@@ -662,7 +662,7 @@ void CGameHandler::newTurn()
 		{
 			NewTurn::Hero hth;
 			hth.id = h->id;
-			hth.move = h->maxMovePoints(true); //TODO: check if hero is really on the land
+			hth.move = h->maxMovePoints(gs->map->getTile(h->getPosition(false)).tertype != TerrainTile::water);
 
 			if(h->visitedTown && vstd::contains(h->visitedTown->builtBuildings,0)) //if hero starts turn in town with mage guild
 				hth.mana = h->manaLimit(); //restore all mana
@@ -2872,3 +2872,49 @@ void CGameHandler::objectVisited( const CGObjectInstance * obj, const CGHeroInst
 {
 	obj->onHeroVisit(h);
 }
+
+bool CGameHandler::buildBoat( ui32 objid )
+{
+	const IShipyard *obj = IShipyard::castFrom(getObj(objid));
+
+	if(obj->state())
+	{
+		complain("Cannot build boat in this shipyard!");
+		return false;
+	}
+	else if(obj->o->ID == TOWNI_TYPE
+		&& !vstd::contains((static_cast<const CGTownInstance*>(obj))->builtBuildings,6))
+	{
+		complain("Cannot build boat in the town - no shipyard!");
+		return false;
+	}
+
+	//TODO use "real" cost via obj->getBoatCost
+	if(getResource(obj->o->tempOwner, 6) < 1000  ||  getResource(obj->o->tempOwner, 0) < 10)
+	{
+		complain("Not enough resources to build a boat!");
+		return false;
+	}
+
+	int3 tile = obj->bestLocation();
+	if(!gs->map->isInTheMap(tile))
+	{
+		complain("Cannot find appropriate tile for a boat!");
+		return false;
+	}
+
+	//take boat cost
+	SetResources sr;
+	sr.player = obj->o->tempOwner;
+	sr.res = gs->getPlayer(obj->o->tempOwner)->resources;
+	sr.res[0] -= 10;
+	sr.res[6] -= 1000;
+	sendAndApply(&sr);
+
+	//create boat
+	NewObject no;
+	no.ID = 8;
+	no.subID = 1;
+	no.pos = tile + int3(1,0,0);
+	sendAndApply(&no);
+}
\ No newline at end of file
diff --git a/server/CGameHandler.h b/server/CGameHandler.h
index d5a1e74f2..9bc2fec68 100644
--- a/server/CGameHandler.h
+++ b/server/CGameHandler.h
@@ -144,6 +144,7 @@ public:
 	bool makeCustomAction(BattleAction &ba);
 	bool queryReply( ui32 qid, ui32 answer );
 	bool hireHero( ui32 tid, ui8 hid );
+	bool buildBoat( ui32 objid );
 	bool setFormation( si32 hid, ui8 formation );
 	bool tradeResources( ui32 val, ui8 player, ui32 id1, ui32 id2 );
 	bool buyArtifact( ui32 hid, si32 aid );
diff --git a/server/NetPacksServer.cpp b/server/NetPacksServer.cpp
index 1f8f02192..6d39fbc99 100644
--- a/server/NetPacksServer.cpp
+++ b/server/NetPacksServer.cpp
@@ -122,6 +122,12 @@ bool HireHero::applyGh( CGameHandler *gh )
 	return gh->hireHero(tid,hid);
 }
 
+bool BuildBoat::applyGh( CGameHandler *gh )
+{
+	ERROR_IF_NOT_OWNS(objid);
+	return gh->buildBoat(objid);
+}
+
 bool QueryReply::applyGh( CGameHandler *gh )
 {
 	//TODO - check if player matches the query