diff --git a/src/lang/english.txt b/src/lang/english.txt
index 63b87e0b72..14b58a4639 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -1261,6 +1261,8 @@ STR_CONFIG_SETTING_STOP_ON_COMPETITOR_ROAD_HELPTEXT             :Allow construct
 STR_CONFIG_SETTING_DYNAMIC_ENGINES_EXISTING_VEHICLES            :{WHITE}Changing this setting is not possible when there are vehicles
 STR_CONFIG_SETTING_INFRASTRUCTURE_MAINTENANCE                   :Infrastructure maintenance: {STRING2}
 STR_CONFIG_SETTING_INFRASTRUCTURE_MAINTENANCE_HELPTEXT          :When enabled, infrastructure causes maintenance costs. The cost grows over-proportional with the network size, thus affecting bigger companies more than smaller ones
+STR_CONFIG_SETTING_SHIP_COLLISION_AVOIDANCE                     :Ships avoid collisions: {STRING2}
+STR_CONFIG_SETTING_SHIP_COLLISION_AVOIDANCE_HELPTEXT            :When enabled, ships try to avoid passing through each other. Requires 90° turns to be forbidden.
 
 STR_CONFIG_SETTING_NEVER_EXPIRE_AIRPORTS                        :Airports never expire: {STRING2}
 STR_CONFIG_SETTING_NEVER_EXPIRE_AIRPORTS_HELPTEXT               :Enabling this setting makes each airport type stay available forever after its introduction
diff --git a/src/settings_gui.cpp b/src/settings_gui.cpp
index 27d8f6b851..3e59bacc98 100644
--- a/src/settings_gui.cpp
+++ b/src/settings_gui.cpp
@@ -1668,6 +1668,7 @@ static SettingsContainer &GetSettingsTree()
 				physics->Add(new SettingEntry("vehicle.roadveh_slope_steepness"));
 				physics->Add(new SettingEntry("vehicle.smoke_amount"));
 				physics->Add(new SettingEntry("vehicle.plane_speed"));
+				physics->Add(new SettingEntry("vehicle.ship_collision_avoidance"));
 			}
 
 			SettingsPage *routing = vehicles->Add(new SettingsPage(STR_CONFIG_SETTING_VEHICLES_ROUTING));
diff --git a/src/settings_type.h b/src/settings_type.h
index f703e95da4..ec121b6298 100644
--- a/src/settings_type.h
+++ b/src/settings_type.h
@@ -512,6 +512,7 @@ struct VehicleSettings {
 	bool   improved_breakdowns;              ///< different types, chances and severities of breakdowns
 	bool   pay_for_repair;                   ///< pay for repairing vehicle
 	uint8  repair_cost;                      ///< cost of repairing vehicle
+	bool   ship_collision_avoidance;         ///< ships try to avoid colliding with each other
 };
 
 /** Settings related to the economy. */
diff --git a/src/ship_cmd.cpp b/src/ship_cmd.cpp
index bdbea98572..4ccf1a3539 100644
--- a/src/ship_cmd.cpp
+++ b/src/ship_cmd.cpp
@@ -529,6 +529,24 @@ static const byte _ship_subcoord[4][6][3] = {
 	}
 };
 
+/* Used to find DiagDirection from tile to next tile if track is followed */
+static const DiagDirection _diagdir_to_next_tile[6][4] = {
+	{ DIAGDIR_NE, DIAGDIR_SE, DIAGDIR_SW, DIAGDIR_NW },
+	{ DIAGDIR_NE, DIAGDIR_SE, DIAGDIR_SW, DIAGDIR_NW },
+	{ DIAGDIR_SE, DIAGDIR_NE, DIAGDIR_NW, DIAGDIR_SW },
+	{ DIAGDIR_SE, DIAGDIR_NW, DIAGDIR_NE, DIAGDIR_SW },
+	{ DIAGDIR_NW, DIAGDIR_SW, DIAGDIR_SE, DIAGDIR_NE },
+	{ DIAGDIR_SW, DIAGDIR_NW, DIAGDIR_SE, DIAGDIR_NE }
+};
+
+/** Helper function for collision avoidance. */
+static Vehicle *FindShipOnTile(Vehicle *v, void *data)
+{
+	if (v->type != VEH_SHIP || v->vehstatus & VS_STOPPED) return NULL;
+
+	return v;
+}
+
 static void ShipController(Ship *v)
 {
 	uint32 r;
@@ -621,6 +639,25 @@ static void ShipController(Ship *v)
 			track = ChooseShipTrack(v, gp.new_tile, diagdir, tracks);
 			if (track == INVALID_TRACK) goto reverse_direction;
 
+			/* Try to avoid collision and keep distance between each other. */
+			if (_settings_game.pf.forbid_90_deg && _settings_game.vehicle.ship_collision_avoidance && DistanceManhattan(v->dest_tile, gp.new_tile) > 3) {
+				if (HasVehicleOnPos(gp.new_tile, NULL, &FindShipOnTile) ||
+						HasVehicleOnPos(TileAddByDiagDir(gp.new_tile, _diagdir_to_next_tile[track][diagdir]), NULL, &FindShipOnTile)) {
+
+					v->cur_speed /= 4; // Go quarter speed.
+
+					Track old = track;
+					switch (tracks) {
+						default: break;
+						case TRACK_BIT_3WAY_NE: track == TRACK_RIGHT ? track = TRACK_X : track = TRACK_UPPER; break;
+						case TRACK_BIT_3WAY_SE: track == TRACK_LOWER ? track = TRACK_Y : track = TRACK_RIGHT; break;
+						case TRACK_BIT_3WAY_SW: track == TRACK_LEFT  ? track = TRACK_X : track = TRACK_LOWER; break;
+						case TRACK_BIT_3WAY_NW: track == TRACK_UPPER ? track = TRACK_Y : track = TRACK_LEFT;  break;
+					}
+					if (!IsWaterTile(gp.new_tile) || !IsWaterTile(TileAddByDiagDir(gp.new_tile, _diagdir_to_next_tile[track][diagdir]))) track = old; // Don't bump in coast, don't get stuck.
+				}
+			}
+
 			b = _ship_subcoord[diagdir][track];
 
 			gp.x = (gp.x & ~0xF) | b[0];
diff --git a/src/table/settings.ini b/src/table/settings.ini
index 6aade64647..b87123d728 100644
--- a/src/table/settings.ini
+++ b/src/table/settings.ini
@@ -1269,6 +1269,15 @@ def      = false
 str      = STR_CONFIG_SETTING_IMPROVED_BREAKDOWNS
 patxname = ""improved_breakdowns.vehicle.improved_breakdowns""
 
+[SDT_BOOL]
+base     = GameSettings
+var      = vehicle.ship_collision_avoidance
+def      = true
+str      = STR_CONFIG_SETTING_SHIP_COLLISION_AVOIDANCE
+strhelp  = STR_CONFIG_SETTING_SHIP_COLLISION_AVOIDANCE_HELPTEXT
+patxname = ""ship_collision_avoidance.vehicle.ship_collision_avoidance""
+cat      = SC_BASIC
+
 ; station.join_stations
 [SDT_NULL]
 length   = 1