diff --git a/src/buildno.h b/src/buildno.h
index 3a7947aaa..1b97adf8b 100644
--- a/src/buildno.h
+++ b/src/buildno.h
@@ -1,3 +1,3 @@
 #define VERSION_MAJOR 3
 #define VERSION_MINOR 8
-#define VERSION_BUILD 7
+#define VERSION_BUILD 8
diff --git a/src/kernel/faction.c b/src/kernel/faction.c
index edb8a9e2f..2699e1b09 100755
--- a/src/kernel/faction.c
+++ b/src/kernel/faction.c
@@ -74,9 +74,6 @@ faction *factions;
 static void free_faction(faction * f)
 {
     funhash(f);
-    if (f->alliance && f->alliance->_leader == f) {
-        setalliance(f, 0);
-    }
     if (f->msgs) {
         free_messagelist(f->msgs->begin);
         free(f->msgs);
@@ -454,7 +451,7 @@ void destroyfaction(faction ** fp)
     }
 #endif
 
-    if (f->alliance && f->alliance->_leader == f) {
+    if (f->alliance) {
         setalliance(f, 0);
     }
 
@@ -681,8 +678,6 @@ void remove_empty_factions(void)
         if (!(f->_alive && f->units!=NULL) && !fval(f, FFL_NOIDLEOUT)) {
             log_debug("dead: %s", factionname(f));
             destroyfaction(fp);
-            free_faction(f);
-            free(f);
         }
         else {
             fp = &(*fp)->next;
diff --git a/src/kernel/faction.test.c b/src/kernel/faction.test.c
index 19b4da883..10bc0683b 100644
--- a/src/kernel/faction.test.c
+++ b/src/kernel/faction.test.c
@@ -13,6 +13,7 @@
 #include "monster.h"
 #include <CuTest.h>
 #include <tests.h>
+#include <quicklist.h>
 
 #include <assert.h>
 #include <stdio.h>
@@ -46,8 +47,10 @@ static void test_remove_empty_factions_alliance(CuTest *tc) {
     al = makealliance(0, "Hodor");
     setalliance(f, al);
     CuAssertPtrEquals(tc, f, alliance_get_leader(al));
+    CuAssertIntEquals(tc, 1, ql_length(al->members));
     remove_empty_factions();
     CuAssertPtrEquals(tc, 0, al->_leader);
+    CuAssertIntEquals(tc, 0, ql_length(al->members));
     test_cleanup();
 }
 
@@ -61,6 +64,9 @@ static void test_remove_empty_factions(CuTest *tc) {
     f = test_create_faction(0);
     fno = f->no;
     remove_empty_factions();
+    CuAssertIntEquals(tc, false, f->_alive);
+    CuAssertPtrEquals(tc, fm, factions);
+    CuAssertPtrEquals(tc, NULL, fm->next);
     CuAssertPtrEquals(tc, 0, findfaction(fno));
     CuAssertPtrEquals(tc, fm, get_monsters());
     test_cleanup();