diff --git a/src/core/execution/FakeHumanExecution.ts b/src/core/execution/FakeHumanExecution.ts
index b43114062..4051339fc 100644
--- a/src/core/execution/FakeHumanExecution.ts
+++ b/src/core/execution/FakeHumanExecution.ts
@@ -1,5 +1,6 @@
 import {
   Cell,
+  Difficulty,
   Execution,
   Game,
   Gold,
@@ -46,6 +47,11 @@ export class FakeHumanExecution implements Execution {
   private readonly lastMIRVSent: [Tick, TileRef][] = [];
   private readonly embargoMalusApplied = new Set<PlayerID>();
 
+  // Track our transport ships we currently own
+  private trackedTransportShips: Set<Unit> = new Set();
+  // Track our trade ships we currently own
+  private trackedTradeShips: Set<Unit> = new Set();
+
   /** MIRV Strategy Constants */
 
   /** Ticks until MIRV can be attempted again */
@@ -133,6 +139,16 @@ export class FakeHumanExecution implements Execution {
   }
 
   tick(ticks: number) {
+    // Ship tracking
+    if (
+      this.player !== null &&
+      this.player.isAlive() &&
+      this.mg.config().gameConfig().difficulty !== Difficulty.Easy
+    ) {
+      this.trackTransportShipsAndRetaliate();
+      this.trackTradeShipsAndRetaliate();
+    }
+
     if (ticks % this.attackRate !== this.attackTick) {
       return;
     }
@@ -901,6 +917,70 @@ export class FakeHumanExecution implements Execution {
     }
   }
 
+  // Send out a warship if our transport ship got captured
+  private trackTransportShipsAndRetaliate(): void {
+    if (this.player === null) return;
+
+    // Add any currently owned transport ships to our tracking set
+    this.player
+      .units(UnitType.TransportShip)
+      .forEach((u) => this.trackedTransportShips.add(u));
+
+    // Iterate tracked transport ships; if it got destroyed by an enemy: retaliate
+    for (const ship of Array.from(this.trackedTransportShips)) {
+      if (!ship.isActive()) {
+        // Distinguish between arrival/retreat and enemy destruction
+        if (ship.wasDestroyedByEnemy()) {
+          this.maybeRetaliateWithWarship(ship.tile());
+        }
+        this.trackedTransportShips.delete(ship);
+      }
+    }
+  }
+
+  // Send out a warship if our trade ship got captured
+  private trackTradeShipsAndRetaliate(): void {
+    if (this.player === null) return;
+
+    // Add any currently owned trade ships to our tracking map
+    this.player
+      .units(UnitType.TradeShip)
+      .forEach((u) => this.trackedTradeShips.add(u));
+
+    // Iterate tracked trade ships; if we no longer own it, it was captured: retaliate
+    for (const ship of Array.from(this.trackedTradeShips)) {
+      if (!ship.isActive()) {
+        this.trackedTradeShips.delete(ship);
+        continue;
+      }
+      if (ship.owner().id() !== this.player.id()) {
+        // Ship was ours and is now owned by someone else -> captured
+        this.maybeRetaliateWithWarship(ship.tile());
+        this.trackedTradeShips.delete(ship);
+      }
+    }
+  }
+
+  private maybeRetaliateWithWarship(tile: TileRef): void {
+    if (this.player === null) return;
+
+    const { difficulty } = this.mg.config().gameConfig();
+    // In Easy never retaliate. In Medium retaliate with 15% chance. Hard with 50%, Impossible with 80%.
+    if (
+      (difficulty === Difficulty.Medium && this.random.nextInt(0, 100) < 15) ||
+      (difficulty === Difficulty.Hard && this.random.nextInt(0, 100) < 50) ||
+      (difficulty === Difficulty.Impossible && this.random.nextInt(0, 100) < 80)
+    ) {
+      const canBuild = this.player.canBuild(UnitType.Warship, tile);
+      if (canBuild === false) {
+        return;
+      }
+      this.mg.addExecution(
+        new ConstructionExecution(this.player, UnitType.Warship, tile),
+      );
+    }
+  }
+
   isActive(): boolean {
     return this.active;
   }
diff --git a/src/core/game/Game.ts b/src/core/game/Game.ts
index 8ce4822b3..3203b29a9 100644
--- a/src/core/game/Game.ts
+++ b/src/core/game/Game.ts
@@ -451,6 +451,7 @@ export interface Unit {
   toUpdate(): UnitUpdate;
   hasTrainStation(): boolean;
   setTrainStation(trainStation: boolean): void;
+  wasDestroyedByEnemy(): boolean;
 
   // Train
   trainType(): TrainType | undefined;
diff --git a/src/core/game/UnitImpl.ts b/src/core/game/UnitImpl.ts
index 917d0af67..c4f3c00e0 100644
--- a/src/core/game/UnitImpl.ts
+++ b/src/core/game/UnitImpl.ts
@@ -24,6 +24,7 @@ export class UnitImpl implements Unit {
   private _retreating: boolean = false;
   private _targetedBySAM = false;
   private _reachedTarget = false;
+  private _wasDestroyedByEnemy: boolean = false;
   private _lastSetSafeFromPirates: number; // Only for trade ships
   private _constructionType: UnitType | undefined;
   private _lastOwner: PlayerImpl | null = null;
@@ -252,6 +253,10 @@ export class UnitImpl implements Unit {
     if (!this.isActive()) {
       throw new Error(`cannot delete ${this} not active`);
     }
+
+    // Record whether this unit was destroyed by an enemy (vs. arrived / retreated)
+    this._wasDestroyedByEnemy = destroyer !== undefined;
+
     this._owner._units = this._owner._units.filter((b) => b !== this);
     this._active = false;
     this.mg.addUpdate(this.toUpdate());
@@ -291,6 +296,10 @@ export class UnitImpl implements Unit {
     return this._active;
   }
 
+  wasDestroyedByEnemy(): boolean {
+    return this._wasDestroyedByEnemy;
+  }
+
   retreating(): boolean {
     return this._retreating;
   }