diff --git a/Source/control.cpp b/Source/control.cpp
index ca4b473d8..f8429003a 100644
--- a/Source/control.cpp
+++ b/Source/control.cpp
@@ -658,7 +658,7 @@ void OpenCharPanel()
 {
 	QuestLogIsOpen = false;
 	CloseGoldWithdraw();
-	IsStashOpen = false;
+	CloseStash();
 	chrflag = true;
 }
 
@@ -1032,7 +1032,7 @@ void CheckBtnUp()
 		case PanelButtonQlog:
 			CloseCharPanel();
 			CloseGoldWithdraw();
-			IsStashOpen = false;
+			CloseStash();
 			if (!QuestLogIsOpen)
 				StartQuestlog();
 			else
@@ -1049,7 +1049,7 @@ void CheckBtnUp()
 		case PanelButtonInventory:
 			sbookflag = false;
 			CloseGoldWithdraw();
-			IsStashOpen = false;
+			CloseStash();
 			invflag = !invflag;
 			if (dropGoldFlag) {
 				CloseGoldDrop();
diff --git a/Source/controls/plrctrls.cpp b/Source/controls/plrctrls.cpp
index 947dc1308..6256980f2 100644
--- a/Source/controls/plrctrls.cpp
+++ b/Source/controls/plrctrls.cpp
@@ -1627,7 +1627,7 @@ void ProcessGameAction(const GameAction &action)
 			QuestLogIsOpen = false;
 			sbookflag = false;
 			CloseGoldWithdraw();
-			IsStashOpen = false;
+			CloseStash();
 		}
 		break;
 	case GameActionType_TOGGLE_CHARACTER_INFO:
@@ -1644,7 +1644,7 @@ void ProcessGameAction(const GameAction &action)
 			StartQuestlog();
 			CloseCharPanel();
 			CloseGoldWithdraw();
-			IsStashOpen = false;
+			CloseStash();
 			spselflag = false;
 		} else {
 			QuestLogIsOpen = false;
diff --git a/Source/diablo.cpp b/Source/diablo.cpp
index 40ac6c149..92d31932e 100644
--- a/Source/diablo.cpp
+++ b/Source/diablo.cpp
@@ -227,7 +227,7 @@ void LeftMouseCmd(bool bShift)
 
 	if (leveltype == DTYPE_TOWN) {
 		CloseGoldWithdraw();
-		IsStashOpen = false;
+		CloseStash();
 		if (pcursitem != -1 && pcurs == CURSOR_HAND)
 			NetSendCmdLocParam1(true, invflag ? CMD_GOTOGETITEM : CMD_GOTOAGETITEM, cursPosition, pcursitem);
 		if (pcursmonst != -1)
@@ -1482,7 +1482,7 @@ void InventoryKeyPressed()
 	}
 	sbookflag = false;
 	CloseGoldWithdraw();
-	IsStashOpen = false;
+	CloseStash();
 }
 
 void CharacterSheetKeyPressed()
@@ -1525,7 +1525,7 @@ void QuestLogKeyPressed()
 	}
 	CloseCharPanel();
 	CloseGoldWithdraw();
-	IsStashOpen = false;
+	CloseStash();
 }
 
 void DisplaySpellsKeyPressed()
diff --git a/Source/inv.cpp b/Source/inv.cpp
index 26770c7c1..87907739a 100644
--- a/Source/inv.cpp
+++ b/Source/inv.cpp
@@ -2081,10 +2081,37 @@ bool UseInvItem(int cii)
 void CloseInventory()
 {
 	CloseGoldWithdraw();
-	IsStashOpen = false;
+	CloseStash();
 	invflag = false;
 }
 
+void CloseStash()
+{
+	if (!IsStashOpen)
+		return;
+
+	Player &myPlayer = *MyPlayer;
+	if (!myPlayer.HoldItem.isEmpty()) {
+		std::optional<Point> itemTile = FindAdjacentPositionForItem(myPlayer.position.future, myPlayer._pdir);
+		if (itemTile) {
+			NetSendCmdPItem(true, CMD_PUTITEM, *itemTile, myPlayer.HoldItem);
+		} else {
+			if (!AutoPlaceItemInBelt(myPlayer, myPlayer.HoldItem, true)
+			    && !AutoPlaceItemInInventory(myPlayer, myPlayer.HoldItem, true)
+			    && !AutoPlaceItemInStash(myPlayer, myPlayer.HoldItem, true)) {
+				// This can fail for max gold, arena potions and a stash that has been arranged
+				// to not have room for the item all 3 cases are extremely unlikely
+				app_fatal(_("No room for item"));
+			}
+			PlaySFX(ItemInvSnds[ItemCAnimTbl[myPlayer.HoldItem._iCurs]]);
+		}
+		myPlayer.HoldItem.clear();
+		NewCursor(CURSOR_HAND);
+	}
+
+	IsStashOpen = false;
+}
+
 void DoTelekinesis()
 {
 	if (ObjectUnderCursor != nullptr && !ObjectUnderCursor->IsDisabled())
diff --git a/Source/inv.h b/Source/inv.h
index 4915e9059..122175fb6 100644
--- a/Source/inv.h
+++ b/Source/inv.h
@@ -96,6 +96,7 @@ bool CanBePlacedOnBelt(const Item &item);
 using ItemFunc = void (*)(Item &);
 
 void CloseInventory();
+void CloseStash();
 void FreeInvGFX();
 void InitInv();