diff --git a/src/lang/english.txt b/src/lang/english.txt
index 3a4de4156c..04181e382c 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -1400,6 +1400,8 @@ STR_CONFIG_SETTING_TIMETABLE_IN_TICKS                           :Show timetable
 STR_CONFIG_SETTING_TIMETABLE_IN_TICKS_HELPTEXT                  :Show travel times in time tables in game ticks instead of days
 STR_CONFIG_SETTING_TIMETABLE_SEPARATION                         :Use timetable to ensure vehicle separation: {STRING2}
 STR_CONFIG_SETTING_TIMETABLE_SEPARATION_HELPTEXT                :Select whether to ensure separation of vehicles when using automatic timetables
+STR_CONFIG_SETTING_TIMETABLE_SEPARATION_RATE                    :Vehicle separation factor: {STRING2}
+STR_CONFIG_SETTING_TIMETABLE_SEPARATION_RATE_HELPTEXT           :How much of the vehicle separation timetable change to apply at each step
 STR_CONFIG_SETTING_TIMETABLE_SHOW_ARRIVAL_DEPARTURE             :Show arrival and departure in timetables: {STRING2}
 STR_CONFIG_SETTING_TIMETABLE_SHOW_ARRIVAL_DEPARTURE_HELPTEXT    :Display anticipated arrival and departure times in timetables
 STR_CONFIG_SETTING_QUICKGOTO                                    :Quick creation of vehicle orders: {STRING2}
diff --git a/src/settings_gui.cpp b/src/settings_gui.cpp
index 452f6b6fd2..1c3da570a7 100644
--- a/src/settings_gui.cpp
+++ b/src/settings_gui.cpp
@@ -1628,6 +1628,7 @@ static SettingsContainer &GetSettingsTree()
 			vehicles->Add(new SettingEntry("order.serviceathelipad"));
 			vehicles->Add(new SettingEntry("order.timetable_automated"));
 			vehicles->Add(new SettingEntry("order.timetable_separation"));
+			vehicles->Add(new SettingEntry("order.timetable_separation_rate"));
 		}
 
 		SettingsPage *limitations = main->Add(new SettingsPage(STR_CONFIG_SETTING_LIMITATIONS));
diff --git a/src/settings_type.h b/src/settings_type.h
index b3eeae407f..7c3b34478d 100644
--- a/src/settings_type.h
+++ b/src/settings_type.h
@@ -440,6 +440,7 @@ struct OrderSettings {
 	bool   no_servicing_if_no_breakdowns;    ///< don't send vehicles to depot when breakdowns are disabled
 	bool   timetable_automated;              ///< whether to automatically manage timetables
 	bool   timetable_separation;             ///< whether to perform automatic separation based on timetable
+	uint8  timetable_separation_rate;        ///< percentage of timetable separation change to apply
 	bool   serviceathelipad;                 ///< service helicopters at helipads automatically (no need to send to depot)
 };
 
diff --git a/src/table/settings.ini b/src/table/settings.ini
index fd3e10eadd..345c575a31 100644
--- a/src/table/settings.ini
+++ b/src/table/settings.ini
@@ -351,6 +351,20 @@ cat      = SC_EXPERT
 extver   = SlXvFeatureTest(XSLFTO_AND, XSLFI_AUTO_TIMETABLE)
 patxname = ""auto_timetables.order.timetable_separation""
 
+[SDT_VAR]
+base     = GameSettings
+var      = order.timetable_separation_rate
+type     = SLE_UINT8
+from     = TIMESEP_SV
+def      = 100
+min      = 0
+max      = 100
+interval = 10
+str      = STR_CONFIG_SETTING_TIMETABLE_SEPARATION_RATE
+strhelp  = STR_CONFIG_SETTING_TIMETABLE_SEPARATION_RATE_HELPTEXT
+strval   = STR_CONFIG_SETTING_PERCENTAGE
+cat      = SC_EXPERT
+
 ; There are only 21 predefined town_name values (0-20), but you can have more with newgrf action F so allow
 ; these bigger values (21-255). Invalid values will fallback to english on use and (undefined string) in GUI.
 [SDT_OMANY]
diff --git a/src/timetable_cmd.cpp b/src/timetable_cmd.cpp
index c26b4e73b2..3fddfbe6ac 100644
--- a/src/timetable_cmd.cpp
+++ b/src/timetable_cmd.cpp
@@ -548,8 +548,11 @@ void UpdateSeparationOrder(Vehicle *v_start)
 			}
 			int separation_ahead = SeparationBetween(v, v->AheadSeparation());
 			int separation_behind = SeparationBetween(v->BehindSeparation(), v);
-			v->lateness_counter = (separation_ahead - separation_behind) / 2;
-			if (separation_ahead == -1 || separation_behind == -1) v->lateness_counter = 0;
+			if (separation_ahead != -1 && separation_behind != -1) {
+				int new_lateness = (separation_ahead - separation_behind) / 2;
+				v->lateness_counter = (new_lateness * _settings_game.order.timetable_separation_rate +
+						v->lateness_counter * (100 - _settings_game.order.timetable_separation_rate)) / 100;
+			}
 			v = v->AheadSeparation();
 		} while (v != v_start);
 	}
@@ -668,15 +671,7 @@ void UpdateVehicleTimetable(Vehicle *v, bool travelling)
 			new_time = time_loading;
 		}
 
-		/* Check for too large a difference from expected time, and if so don't average. */
-		if (!(new_time > (int32)timetabled * 2 || new_time < (int32)timetabled / 2)) {
-			int arrival_error = timetabled - new_time;
-			/* Compute running average, with sign conversion to avoid negative overflow. */
-			new_time = ((int32)timetabled * 4 + new_time + 2) / 5;
-			/* Use arrival_error to finetune order ticks. */
-			if (arrival_error < 0) new_time++;
-			if (arrival_error > 0) new_time--;
-		} else if (new_time > (int32)timetabled * 10 && travelling) {
+		if (new_time > (int32)timetabled * 4 && travelling) {
 			/* Possible jam, clear time and restart timetable for all vehicles.
 			 * Otherwise we risk trains blocking 1-lane stations for long times. */
 			ChangeTimetable(v, v->cur_real_order_index, 0, travelling ? MTF_TRAVEL_TIME : MTF_WAIT_TIME, true);
@@ -686,6 +681,15 @@ void UpdateVehicleTimetable(Vehicle *v, bool travelling)
 				SetWindowDirty(WC_VEHICLE_TIMETABLE, v2->index);
 			}
 			return;
+		} else if (new_time >= (int32)timetabled / 2) {
+			/* Compute running average, with sign conversion to avoid negative overflow. */
+			if (new_time < (int32)timetabled) {
+				new_time = ((int32)timetabled * 3 + new_time * 2 + 2) / 5;
+			} else {
+				new_time = ((int32)timetabled * 9 + new_time + 5) / 10;
+			}
+		} else {
+			/* new time is less than hald old time, set value directly */
 		}
 
 		if (new_time < 1) new_time = 1;