diff --git a/scripts/tests/e2/ships.lua b/scripts/tests/e2/ships.lua
index b038553b8..f8020f3d7 100644
--- a/scripts/tests/e2/ships.lua
+++ b/scripts/tests/e2/ships.lua
@@ -193,6 +193,49 @@ function test_give_ship_only_to_captain()
     assert_equal(1, u2.ship.number)
 end
 
+function test_give_ship_compatible_coasts()
+    local r = region.create(1, 0, 'plain')
+    local f = faction.create("human")
+    local u1 = unit.create(f, r, 1)
+    local u2 = unit.create(f, r, 1)
+    u1.ship = ship.create(r, 'boat')
+    u1.ship.number = 4
+    u1:add_order("GIB " .. itoa36(u2.id) .. " 1 SCHIFF")
+    u2.ship = ship.create(r, 'boat')
+
+    -- cannot give a ship with different coast:
+    u1.ship.coast = 1
+    u2.ship.coast = 2
+    process_orders()
+    assert_equal(4, u1.ship.number)
+    assert_equal(1, u2.ship.number)
+
+    -- can give a ship with no coast:
+    u1.ship.coast = -1
+    u2.ship.coast = 2
+    process_orders()
+    assert_equal(3, u1.ship.number)
+    assert_equal(2, u2.ship.number)
+    assert_equal(2, u2.ship.coast)
+
+    -- can give a ship with same coast:
+    u1.ship.coast = 2
+    u2.ship.coast = 2
+    process_orders()
+    assert_equal(2, u1.ship.number)
+    assert_equal(3, u2.ship.number)
+    assert_equal(2, u2.ship.coast)
+
+    -- giving to a ship with no coast:
+    u1.ship.coast = 2
+    u2.ship.coast = -1
+    process_orders()
+    assert_equal(1, u1.ship.number)
+    assert_equal(4, u2.ship.number)
+    assert_equal(2, u2.ship.coast)
+
+end
+
 function test_give_ship_only_from_captain()
     local r = region.create(1, 0, 'ocean')
     local f = faction.create("human")
diff --git a/src/give.c b/src/give.c
index cc9f54987..716bab933 100644
--- a/src/give.c
+++ b/src/give.c
@@ -331,26 +331,36 @@ message * give_ship(unit *u1, unit *u2, int n, order *ord)
     if (u1 != ship_owner(u1->ship)) {
         return msg_error(u1, ord, 146);
     }
-    if (u2->ship) {
-        if (u2 != ship_owner(u2->ship)) {
-            return msg_error(u1, ord, 146);
-        }
-        if (ship_cursed(u2->ship)) {
-            return msg_error(u1, ord, 323);
-        }
-        if (n < u1->ship->number) {
+    if (fval(u_race(u2), RCF_CANSAIL)) {
+        if (u2->ship) {
+            if (u2 != ship_owner(u2->ship)) {
+                return msg_error(u1, ord, 146);
+            }
             if (u2->ship->type != u1->ship->type) {
                 return msg_error(u1, ord, 322);
             }
-            transfer_ships(u1->ship, u2->ship, n);
+            if (ship_cursed(u2->ship)) {
+                return msg_error(u1, ord, 323);
+            }
+            if (u1->ship->coast != u2->ship->coast) {
+                if (u1->ship->coast != NODIRECTION) {
+                    if (u2->ship->coast == NODIRECTION) {
+                        u2->ship->coast = u1->ship->coast;
+                    }
+                    else {
+                        return msg_error(u1, ord, 182);
+                    }
+                }
+            }
+            if (n < u1->ship->number) {
+                transfer_ships(u1->ship, u2->ship, n);
+            }
+            else {
+                transfer_ships(u1->ship, u2->ship, n);
+                transfer_units(u1->ship, u2->ship);
+            }
         }
         else {
-            transfer_ships(u1->ship, u2->ship, n);
-            transfer_units(u1->ship, u2->ship);
-        }
-    }
-    else {
-        if (fval(u_race(u2), RCF_CANSAIL)) {
             if (n < u1->ship->number) {
                 ship * sh = new_ship(u1->ship->type, u1->region, u1->faction->locale);
                 scale_ship(sh, 0);
@@ -362,9 +372,9 @@ message * give_ship(unit *u1, unit *u2, int n, order *ord)
                 ship_set_owner(u2);
             }
         }
-        else {
-            return msg_error(u1, ord, 233);
-        }
+    }
+    else {
+        return msg_error(u1, ord, 233);
     }
     return NULL;
 }