diff --git a/code/modules/customitems/item_spawning.dm b/code/modules/customitems/item_spawning.dm
index 25c6061cd18..500d121da56 100644
--- a/code/modules/customitems/item_spawning.dm
+++ b/code/modules/customitems/item_spawning.dm
@@ -341,6 +341,9 @@ GLOBAL_LIST_EMPTY(character_id_to_custom_items_mapping)
 		if(target_mob.equip_to_storage(newitem))
 			return TRUE
 
+		if(target_mob.put_in_any_hand_if_possible(newitem))
+			return TRUE
+
 		newitem.forceMove(get_turf(target_mob.loc))
-		to_chat(target_mob, "A custom item has been placed on the floor as there was no space for it on your mob.")
+		to_chat(target_mob, SPAN_ALERT("A custom item has been placed on the floor as there was no space for it on your mob."))
 		return TRUE
diff --git a/html/changelogs/CustomItemFix.yml b/html/changelogs/CustomItemFix.yml
new file mode 100644
index 00000000000..06926bc3d5e
--- /dev/null
+++ b/html/changelogs/CustomItemFix.yml
@@ -0,0 +1,7 @@
+author: TheGreyWolf
+
+delete-after: True
+
+changes:
+  - bugfix: "Custom items will now attempt to spawn in a character's hands, before dropping to the floor. This should prevent items being lost to the lifts or cryo."
+  - rscadd: "The alert for a custom item being dropped on the ground is now red, to make it easier to spot."