diff --git a/interface/src/avatar/MyAvatar.cpp b/interface/src/avatar/MyAvatar.cpp
index 92d9270d20..3f32f96795 100755
--- a/interface/src/avatar/MyAvatar.cpp
+++ b/interface/src/avatar/MyAvatar.cpp
@@ -5300,6 +5300,21 @@ void MyAvatar::releaseGrab(const QUuid& grabID) {
     bool tellHandler { false };
 
     _avatarGrabsLock.withWriteLock([&] {
+
+        std::map<QUuid, GrabPointer>::iterator itr;
+        itr = _avatarGrabs.find(grabID);
+        if (itr != _avatarGrabs.end()) {
+            GrabPointer grab = itr->second;
+            if (grab) {
+                grab->setReleased(true);
+                bool success;
+                SpatiallyNestablePointer target = SpatiallyNestable::findByID(grab->getTargetID(), success);
+                if (target && success) {
+                    target->disableGrab(grab);
+                }
+            }
+        }
+
         if (_avatarGrabData.remove(grabID)) {
             _grabsToDelete.push_back(grabID);
             tellHandler = true;
diff --git a/libraries/avatars-renderer/src/avatars-renderer/Avatar.cpp b/libraries/avatars-renderer/src/avatars-renderer/Avatar.cpp
index 07c1ca9a32..b8626c813e 100644
--- a/libraries/avatars-renderer/src/avatars-renderer/Avatar.cpp
+++ b/libraries/avatars-renderer/src/avatars-renderer/Avatar.cpp
@@ -412,6 +412,9 @@ void Avatar::accumulateGrabPositions(std::map<QUuid, GrabLocationAccumulator>& g
             if (!grab || !grab->getActionID().isNull()) {
                 continue; // the accumulated value isn't used, in this case.
             }
+            if (grab->getReleased()) {
+                continue;
+            }
 
             glm::vec3 jointTranslation = getAbsoluteJointTranslationInObjectFrame(grab->getParentJointIndex());
             glm::quat jointRotation = getAbsoluteJointRotationInObjectFrame(grab->getParentJointIndex());
diff --git a/libraries/entities/src/EntityDynamicInterface.h b/libraries/entities/src/EntityDynamicInterface.h
index 836dae2057..c911eda471 100644
--- a/libraries/entities/src/EntityDynamicInterface.h
+++ b/libraries/entities/src/EntityDynamicInterface.h
@@ -59,6 +59,7 @@ public:
     virtual bool isReadyForAdd() const { return true; }
 
     bool isActive() { return _active; }
+    void deactivate() { _active = false; }
 
     virtual void removeFromSimulation(EntitySimulationPointer simulation) const = 0;
     virtual EntityItemWeakPointer getOwnerEntity() const = 0;
diff --git a/libraries/entities/src/EntityItem.cpp b/libraries/entities/src/EntityItem.cpp
index 41e4f43a5d..1640e97ff4 100644
--- a/libraries/entities/src/EntityItem.cpp
+++ b/libraries/entities/src/EntityItem.cpp
@@ -3506,3 +3506,13 @@ void EntityItem::removeGrab(GrabPointer grab) {
     }
     disableNoBootstrap();
 }
+
+void EntityItem::disableGrab(GrabPointer grab) {
+    QUuid actionID = grab->getActionID();
+    if (!actionID.isNull()) {
+        EntityDynamicPointer action = _grabActions.value(actionID);
+        if (action) {
+            action->deactivate();
+        }
+    }
+}
diff --git a/libraries/entities/src/EntityItem.h b/libraries/entities/src/EntityItem.h
index ec7ad78313..27b207b6f3 100644
--- a/libraries/entities/src/EntityItem.h
+++ b/libraries/entities/src/EntityItem.h
@@ -561,6 +561,7 @@ public:
 
     virtual void addGrab(GrabPointer grab) override;
     virtual void removeGrab(GrabPointer grab) override;
+    virtual void disableGrab(GrabPointer grab) override;
 
 signals:
     void requestRenderUpdate();
diff --git a/libraries/physics/src/EntityMotionState.cpp b/libraries/physics/src/EntityMotionState.cpp
index a82931064a..ce9cb20c21 100644
--- a/libraries/physics/src/EntityMotionState.cpp
+++ b/libraries/physics/src/EntityMotionState.cpp
@@ -115,17 +115,30 @@ void EntityMotionState::updateServerPhysicsVariables() {
 }
 
 void EntityMotionState::handleDeactivation() {
-    // copy _server data to entity
-    Transform localTransform = _entity->getLocalTransform();
-    localTransform.setTranslation(_serverPosition);
-    localTransform.setRotation(_serverRotation);
-    _entity->setLocalTransformAndVelocities(localTransform, ENTITY_ITEM_ZERO_VEC3, ENTITY_ITEM_ZERO_VEC3);
-    // and also to RigidBody
-    btTransform worldTrans;
-    worldTrans.setOrigin(glmToBullet(_entity->getWorldPosition()));
-    worldTrans.setRotation(glmToBullet(_entity->getWorldOrientation()));
-    _body->setWorldTransform(worldTrans);
-    // no need to update velocities... should already be zero
+   if (_entity->getDirtyFlags() & (Simulation::DIRTY_TRANSFORM | Simulation::DIRTY_VELOCITIES)) {
+       // Some non-physical event (script-call or network-packet) has modified the entity's transform and/or velocities
+       // at the last minute before deactivation --> the values stored in _server* and _body are stale.
+       // We assume the EntityMotionState is the last to know, so we copy from EntityItem and let things sort themselves out.
+       Transform localTransform;
+       _entity->getLocalTransformAndVelocities(localTransform, _serverVelocity, _serverAngularVelocity);
+       _serverPosition = localTransform.getTranslation();
+       _serverRotation = localTransform.getRotation();
+       _serverAcceleration = _entity->getAcceleration();
+       _serverActionData = _entity->getDynamicData();
+       _lastStep = ObjectMotionState::getWorldSimulationStep();
+   } else {
+       // copy _server data to entity
+       Transform localTransform = _entity->getLocalTransform();
+       localTransform.setTranslation(_serverPosition);
+       localTransform.setRotation(_serverRotation);
+       _entity->setLocalTransformAndVelocities(localTransform, ENTITY_ITEM_ZERO_VEC3, ENTITY_ITEM_ZERO_VEC3);
+       // and also to RigidBody
+       btTransform worldTrans;
+       worldTrans.setOrigin(glmToBullet(_entity->getWorldPosition()));
+       worldTrans.setRotation(glmToBullet(_entity->getWorldOrientation()));
+       _body->setWorldTransform(worldTrans);
+       // no need to update velocities... should already be zero
+   }
 }
 
 // virtual
diff --git a/libraries/shared/src/Grab.h b/libraries/shared/src/Grab.h
index 5765d6fd0e..f16a80befa 100644
--- a/libraries/shared/src/Grab.h
+++ b/libraries/shared/src/Grab.h
@@ -26,16 +26,16 @@ public:
     void accumulate(glm::vec3 position, glm::quat orientation) {
         _position += position;
         _orientation = orientation; // XXX
-        count++;
+        _count++;
     }
 
-    glm::vec3 finalizePosition() { return count > 0 ? _position * (1.0f / count) : glm::vec3(0.0f); }
+    glm::vec3 finalizePosition() { return _count > 0 ? _position * (1.0f / _count) : glm::vec3(0.0f); }
     glm::quat finalizeOrientation() { return _orientation; } // XXX
 
 protected:
     glm::vec3 _position;
     glm::quat _orientation;
-    int count { 0 };
+    int _count { 0 };
 };
 
 class Grab {
@@ -48,7 +48,8 @@ public:
         _parentJointIndex(newParentJointIndex),
         _hand(newHand),
         _positionalOffset(newPositionalOffset),
-        _rotationalOffset(newRotationalOffset) {}
+        _rotationalOffset(newRotationalOffset),
+        _released(false) {}
 
     QByteArray toByteArray();
     bool fromByteArray(const QByteArray& grabData);
@@ -61,6 +62,7 @@ public:
         _positionalOffset = other->_positionalOffset;
         _rotationalOffset = other->_rotationalOffset;
         _actionID = other->_actionID;
+        _released = other->_released;
         return *this;
     }
 
@@ -85,6 +87,9 @@ public:
     glm::quat getRotationalOffset() const { return _rotationalOffset; }
     void setRotationalOffset(glm::quat rotationalOffset) { _rotationalOffset = rotationalOffset; }
 
+    bool getReleased() const { return _released; }
+    void setReleased(bool value) { _released = value; }
+
 protected:
     QUuid _actionID; // if an action is created in bullet for this grab, this is the ID
     QUuid _ownerID; // avatar ID of grabber
@@ -93,6 +98,7 @@ protected:
     QString _hand; // "left" or "right"
     glm::vec3 _positionalOffset; // relative to joint
     glm::quat _rotationalOffset; // relative to joint
+    bool _released { false }; // released and scheduled for deletion
 };
 
 
diff --git a/libraries/shared/src/SpatiallyNestable.cpp b/libraries/shared/src/SpatiallyNestable.cpp
index c524e3183b..d3ed79faf4 100644
--- a/libraries/shared/src/SpatiallyNestable.cpp
+++ b/libraries/shared/src/SpatiallyNestable.cpp
@@ -1390,7 +1390,12 @@ void SpatiallyNestable::removeGrab(GrabPointer grab) {
 bool SpatiallyNestable::hasGrabs() {
     bool result { false };
     _grabsLock.withReadLock([&] {
-        result = !_grabs.isEmpty();
+        foreach (const GrabPointer &grab, _grabs) {
+            if (grab && !grab->getReleased()) {
+                result = true;
+                break;
+            }
+        }
     });
     return result;
 }
diff --git a/libraries/shared/src/SpatiallyNestable.h b/libraries/shared/src/SpatiallyNestable.h
index 319f07236b..e7a449f73f 100644
--- a/libraries/shared/src/SpatiallyNestable.h
+++ b/libraries/shared/src/SpatiallyNestable.h
@@ -218,6 +218,7 @@ public:
 
     virtual void addGrab(GrabPointer grab);
     virtual void removeGrab(GrabPointer grab);
+    virtual void disableGrab(GrabPointer grab) {};
     bool hasGrabs();
     virtual QUuid getEditSenderID();
 
@@ -241,7 +242,7 @@ protected:
     quint64 _rotationChanged { 0 };
 
     mutable ReadWriteLockable _grabsLock;
-    QSet<GrabPointer> _grabs;
+    QSet<GrabPointer> _grabs; // upon this thing
 
 private:
     SpatiallyNestable() = delete;