diff --git a/Src/Graphics/New3D/New3D.cpp b/Src/Graphics/New3D/New3D.cpp
index 55cba60..45ae512 100644
--- a/Src/Graphics/New3D/New3D.cpp
+++ b/Src/Graphics/New3D/New3D.cpp
@@ -330,8 +330,6 @@ void CNew3D::SetRenderStates()
 	glDisable		(GL_CULL_FACE);					// we'll emulate this in the shader		
 
 	glEnable		(GL_STENCIL_TEST);
-	glStencilOp		(GL_KEEP, GL_KEEP, GL_REPLACE);
-	glStencilMask	(0xFF);
 
 	glBlendFunc		(GL_SRC_ALPHA, GL_ONE_MINUS_SRC_ALPHA);
 	glDisable		(GL_BLEND);
@@ -1876,6 +1874,9 @@ bool CNew3D::ProcessLos(int priority)
 				GLubyte stencilVal;
 				glReadPixels(losX, losY, 1, 1, GL_STENCIL_INDEX, GL_UNSIGNED_BYTE, &stencilVal);
 
+				// apply our mask to stencil, because layered poly attributes use the lower bits
+				stencilVal &= 0x80;
+
 				// if the stencil val is zero that means we've hit sky or whatever, if it hits a 1 we've hit geometry
 				// the real3d returns 1 in the top bit of the float if the line of sight test passes (ie doesn't hit geometry)
 
diff --git a/Src/Graphics/New3D/R3DShader.cpp b/Src/Graphics/New3D/R3DShader.cpp
index ead8ef5..fb7a6bd 100644
--- a/Src/Graphics/New3D/R3DShader.cpp
+++ b/Src/Graphics/New3D/R3DShader.cpp
@@ -298,14 +298,26 @@ void R3DShader::SetMeshUniforms(const Mesh* m)
 		glUniform2iv(m_locTexWrapMode, 1, m_texWrapMode);
 	}
 
+	if (m_dirtyMesh || m->noLosReturn != m_noLosReturn) {
+		m_noLosReturn = m->noLosReturn;
+		glStencilFunc(GL_ALWAYS, m_noLosReturn << 7, 0b10000000);
+		glStencilOp(GL_KEEP, GL_KEEP, GL_REPLACE);
+		glStencilMask(0b10000000);
+	}
+
 	if (m_dirtyMesh || m->layered != m_layered) {
 		m_layered = m->layered;
 		// i think it should just disable z write, but the polys I think must be written first
-	}
-
-	if (m_dirtyMesh || m->noLosReturn != m_noLosReturn) {
-		m_noLosReturn = m->noLosReturn;
-		glStencilFunc(GL_ALWAYS, m_noLosReturn, -1);		// we'll write either a 0 or 1 to the stencil buffer
+		if (m_layered) {
+			glStencilFunc(GL_EQUAL, 0, 0b01111111);			// basically stencil test passes if the value is zero
+			glStencilOp(GL_KEEP, GL_INCR, GL_INCR);			// if the stencil test passes, we increment the value
+			glStencilMask(0b01111111);
+		}
+		else {
+			glStencilFunc(GL_ALWAYS, m_noLosReturn << 7, 0b10000000);
+			glStencilOp(GL_KEEP, GL_KEEP, GL_REPLACE);
+			glStencilMask(0b10000000);
+		}
 	}
 
 	m_dirtyMesh = false;