diff --git a/TGS.Interface/Enumerations.cs b/TGS.Interface/Enumerations.cs
index b1d9586769..caca32e31b 100644
--- a/TGS.Interface/Enumerations.cs
+++ b/TGS.Interface/Enumerations.cs
@@ -55,6 +55,10 @@ namespace TGS.Interface
 		/// Revision is being applied
 		/// </summary>
 		Updating,
+		/// <summary>
+		/// Running game code is being recompiled under staged update
+		/// </summary>
+		CompilingStaged,
 	}
 	/// <summary>
 	/// Type of byond version
diff --git a/TGS.Server/Instance/Byond.cs b/TGS.Server/Instance/Byond.cs
index 643a896292..04790bca9d 100644
--- a/TGS.Server/Instance/Byond.cs
+++ b/TGS.Server/Instance/Byond.cs
@@ -118,6 +118,7 @@ namespace TGS.Server
 					case ByondStatus.Downloading:
 					case ByondStatus.Staging:
 					case ByondStatus.Updating:
+					case ByondStatus.CompilingStaged:
 						return true;
 					case ByondStatus.Idle:
 					case ByondStatus.Staged:
@@ -204,7 +205,7 @@ namespace TGS.Server
 					return;
 				updateStat = ByondStatus.Downloading;
 			}
-
+			bool staged = false;
 			try
 			{
 				CleanByondStaging();
@@ -266,10 +267,11 @@ namespace TGS.Server
 							lastError = "Failed to apply update!";
 						break;
 					default:
-						RequestRestart();
+						//Compile() will call RequestRestart()
 						lastError = "Update staged. Awaiting server restart...";
 						SendMessage(String.Format("BYOND: Staging complete. Awaiting server restart...", major, minor), MessageType.DeveloperInfo);
 						WriteInfo(String.Format("BYOND update {0}.{1} staged", major, minor), EventID.BYONDUpdateStaged);
+						staged = true;
 						break;
 				}
 			}
@@ -287,6 +289,8 @@ namespace TGS.Server
 					RevisionStaging = null;
 				}
 			}
+			if(staged)
+				Compile();
 		}
 		/// <inheritdoc />
 		public bool UpdateToVersion(int major, int minor)
diff --git a/TGS.Server/Instance/Compiler.cs b/TGS.Server/Instance/Compiler.cs
index 9e8d87814d..87e933ea33 100644
--- a/TGS.Server/Instance/Compiler.cs
+++ b/TGS.Server/Instance/Compiler.cs
@@ -421,7 +421,14 @@ namespace TGS.Server
 
 				using (var DM = new Process())  //will kill the process if the thread is terminated
 				{
-					DM.StartInfo.FileName = RelativePath(ByondDirectory + "/bin/dm.exe");
+					bool stagedBuild;
+					lock (ByondLock)
+					{
+						stagedBuild = updateStat == ByondStatus.Staged;
+						if (stagedBuild)
+							updateStat = ByondStatus.CompilingStaged;
+					}
+					DM.StartInfo.FileName = RelativePath(Path.Combine(stagedBuild ? StagingDirectoryInner : ByondDirectory, "bin/dm.exe"));
 					DM.StartInfo.Arguments = String.Format("-clean {0}", dmePath);
 					DM.StartInfo.RedirectStandardOutput = true;
 					DM.StartInfo.UseShellExecute = false;
@@ -469,6 +476,12 @@ namespace TGS.Server
 						{
 							canCancelCompilation = false;
 						}
+						if (stagedBuild)
+						{
+							lock (ByondLock)
+								updateStat = ByondStatus.Staged;
+							RequestRestart();
+						}
 					}
 
 					if (DM.ExitCode == 0)
@@ -525,7 +538,6 @@ namespace TGS.Server
 						}
 					}
 				}
-
 			}
 			catch (ThreadAbortException)
 			{
@@ -564,6 +576,9 @@ namespace TGS.Server
 			{
 				if (compilerCurrentStatus != CompilerStatus.Initialized)
 					return false;
+				lock (ByondLock)
+					if (updateStat == ByondStatus.Staged)
+						return false;
 				silentCompile = silent;
 				lastCompilerError = null;
 				compilerCurrentStatus = CompilerStatus.Compiling;