diff --git a/apps/openmw/mwrender/actors.cpp b/apps/openmw/mwrender/actors.cpp
index 1bdec6e19..639045bbe 100644
--- a/apps/openmw/mwrender/actors.cpp
+++ b/apps/openmw/mwrender/actors.cpp
@@ -150,9 +150,12 @@ void Actors::removeCell(MWWorld::Ptr::CellStore* store)
     }
 }
 
-void Actors::update (float duration)
+void Actors::update (Ogre::Camera* camera)
 {
-    // Nothing to do
+    for(PtrAnimationMap::iterator iter = mAllActors.begin();iter != mAllActors.end(); ++iter)
+    {
+        iter->second->preRender(camera);
+    }
 }
 
 Animation* Actors::getAnimation(const MWWorld::Ptr &ptr)
diff --git a/apps/openmw/mwrender/actors.hpp b/apps/openmw/mwrender/actors.hpp
index 61a0808f5..d91321843 100644
--- a/apps/openmw/mwrender/actors.hpp
+++ b/apps/openmw/mwrender/actors.hpp
@@ -47,7 +47,7 @@ namespace MWRender
 
         void removeCell(MWWorld::CellStore* store);
 
-        void update (float duration);
+        void update (Ogre::Camera* camera);
 
         /// Updates containing cell for object rendering data
         void updateObjectCell(const MWWorld::Ptr &old, const MWWorld::Ptr &cur);
diff --git a/apps/openmw/mwrender/animation.cpp b/apps/openmw/mwrender/animation.cpp
index 3b04457b6..d03e91ab3 100644
--- a/apps/openmw/mwrender/animation.cpp
+++ b/apps/openmw/mwrender/animation.cpp
@@ -1117,6 +1117,16 @@ void Animation::updateEffects(float duration)
     }
 }
 
+void Animation::preRender(Ogre::Camera *camera)
+{
+    for (std::vector<EffectParams>::iterator it = mEffects.begin(); it != mEffects.end(); ++it)
+    {
+        NifOgre::ObjectScenePtr objects = it->mObjects;
+        objects->rotateBillboardNodes(camera);
+    }
+    mObjectRoot->rotateBillboardNodes(camera);
+}
+
 // TODO: Should not be here
 Ogre::Vector3 Animation::getEnchantmentColor(MWWorld::Ptr item)
 {
@@ -1180,6 +1190,8 @@ bool ObjectAnimation::canBatch() const
 {
     if(!mObjectRoot->mParticles.empty() || !mObjectRoot->mLights.empty() || !mObjectRoot->mControllers.empty())
         return false;
+    if (!mObjectRoot->mBillboardNodes.empty())
+        return false;
     return std::find_if(mObjectRoot->mEntities.begin(), mObjectRoot->mEntities.end(),
                         FindEntityTransparency()) == mObjectRoot->mEntities.end();
 }
diff --git a/apps/openmw/mwrender/animation.hpp b/apps/openmw/mwrender/animation.hpp
index aa04e39e2..c33328ab2 100644
--- a/apps/openmw/mwrender/animation.hpp
+++ b/apps/openmw/mwrender/animation.hpp
@@ -216,6 +216,9 @@ public:
     void removeEffect (int effectId);
     void getLoopingEffects (std::vector<int>& out);
 
+    /// Prepare this animation for being rendered with \a camera (rotates billboard nodes)
+    virtual void preRender (Ogre::Camera* camera);
+
     virtual void setAlpha(float alpha) {}
 private:
     void updateEffects(float duration);
diff --git a/apps/openmw/mwrender/npcanimation.cpp b/apps/openmw/mwrender/npcanimation.cpp
index eb0c5dfbc..8d2f1c7da 100644
--- a/apps/openmw/mwrender/npcanimation.cpp
+++ b/apps/openmw/mwrender/npcanimation.cpp
@@ -730,6 +730,17 @@ void NpcAnimation::setAlpha(float alpha)
     }
 }
 
+void NpcAnimation::preRender(Ogre::Camera *camera)
+{
+    Animation::preRender(camera);
+    for (int i=0; i<ESM::PRT_Count; ++i)
+    {
+        if (mObjectParts[i].isNull())
+            continue;
+        mObjectParts[i]->rotateBillboardNodes(camera);
+    }
+}
+
 void NpcAnimation::applyAlpha(float alpha, Ogre::Entity *ent, NifOgre::ObjectScenePtr scene)
 {
     ent->getSubEntity(0)->setRenderQueueGroup(alpha != 1.f || ent->getSubEntity(0)->getMaterial()->isTransparent()
diff --git a/apps/openmw/mwrender/npcanimation.hpp b/apps/openmw/mwrender/npcanimation.hpp
index 04dde87c7..b6ed3f857 100644
--- a/apps/openmw/mwrender/npcanimation.hpp
+++ b/apps/openmw/mwrender/npcanimation.hpp
@@ -116,6 +116,9 @@ public:
 
     /// Make the NPC only partially visible
     virtual void setAlpha(float alpha);
+
+    /// Prepare this animation for being rendered with \a camera (rotates billboard nodes)
+    virtual void preRender (Ogre::Camera* camera);
 };
 
 }
diff --git a/apps/openmw/mwrender/objects.cpp b/apps/openmw/mwrender/objects.cpp
index 827b9b52a..267320713 100644
--- a/apps/openmw/mwrender/objects.cpp
+++ b/apps/openmw/mwrender/objects.cpp
@@ -245,11 +245,16 @@ void Objects::disableLights()
         it->second->enableLights(false);
 }
 
-void Objects::update(const float dt)
+void Objects::update(float dt, Ogre::Camera* camera)
 {
     PtrAnimationMap::const_iterator it = mObjects.begin();
     for(;it != mObjects.end();it++)
         it->second->runAnimation(dt);
+
+    it = mObjects.begin();
+    for(;it != mObjects.end();it++)
+        it->second->preRender(camera);
+
 }
 
 void Objects::rebuildStaticGeometry()
diff --git a/apps/openmw/mwrender/objects.hpp b/apps/openmw/mwrender/objects.hpp
index 022752fae..8a5074503 100644
--- a/apps/openmw/mwrender/objects.hpp
+++ b/apps/openmw/mwrender/objects.hpp
@@ -48,7 +48,7 @@ public:
     void enableLights();
     void disableLights();
 
-    void update (const float dt);
+    void update (float dt, Ogre::Camera* camera);
     ///< per-frame update
 
     Ogre::AxisAlignedBox getDimensions(MWWorld::CellStore*);
diff --git a/apps/openmw/mwrender/renderingmanager.cpp b/apps/openmw/mwrender/renderingmanager.cpp
index 0b10791b8..8ee292de1 100644
--- a/apps/openmw/mwrender/renderingmanager.cpp
+++ b/apps/openmw/mwrender/renderingmanager.cpp
@@ -372,9 +372,9 @@ void RenderingManager::update (float duration, bool paused)
     if(paused)
         return;
 
-    mActors->update (duration);
-    mObjects->update (duration);
-
+    mActors->update (mRendering.getCamera());
+    mPlayerAnimation->preRender(mRendering.getCamera());
+    mObjects->update (duration, mRendering.getCamera());
 
     mSkyManager->update(duration);
 
diff --git a/components/nif/niffile.cpp b/components/nif/niffile.cpp
index 402eadefb..0f7e658fb 100644
--- a/components/nif/niffile.cpp
+++ b/components/nif/niffile.cpp
@@ -210,7 +210,7 @@ static const RecordFactoryEntry recordFactories [] = {
     { "AvoidNode",                  &construct <NiNode                      >, RC_AvoidNode                     },
     { "NiBSParticleNode",           &construct <NiNode                      >, RC_NiBSParticleNode              },
     { "NiBSAnimationNode",          &construct <NiNode                      >, RC_NiBSAnimationNode             },
-    { "NiBillboardNode",            &construct <NiNode                      >, RC_NiNode                        },
+    { "NiBillboardNode",            &construct <NiNode                      >, RC_NiBillboardNode               },
     { "NiTriShape",                 &construct <NiTriShape                  >, RC_NiTriShape                    },
     { "NiRotatingParticles",        &construct <NiRotatingParticles         >, RC_NiRotatingParticles           },
     { "NiAutoNormalParticles",      &construct <NiAutoNormalParticles       >, RC_NiAutoNormalParticles         },
diff --git a/components/nif/record.hpp b/components/nif/record.hpp
index 87e342dca..079b335f0 100644
--- a/components/nif/record.hpp
+++ b/components/nif/record.hpp
@@ -36,6 +36,7 @@ enum RecordType
 {
   RC_MISSING = 0,
   RC_NiNode,
+  RC_NiBillboardNode,
   RC_AvoidNode,
   RC_NiTriShape,
   RC_NiRotatingParticles,
diff --git a/components/nifogre/ogrenifloader.cpp b/components/nifogre/ogrenifloader.cpp
index acf8ac13a..ddf42393f 100644
--- a/components/nifogre/ogrenifloader.cpp
+++ b/components/nifogre/ogrenifloader.cpp
@@ -110,6 +110,17 @@ ObjectScene::~ObjectScene()
     mSkelBase = NULL;
 }
 
+void ObjectScene::rotateBillboardNodes(Ogre::Camera *camera)
+{
+    for (std::vector<Ogre::Node*>::iterator it = mBillboardNodes.begin(); it != mBillboardNodes.end(); ++it)
+    {
+        assert(mSkelBase);
+        Ogre::Node* node = *it;
+        node->_setDerivedOrientation(mSkelBase->getParentNode()->_getDerivedOrientation().Inverse() *
+                                     camera->getRealOrientation());
+    }
+}
+
 // Animates a texture
 class FlipController
 {
@@ -1007,6 +1018,17 @@ class NIFObjectLoader
         else
             flags |= node->flags;
 
+        if (node->recType == Nif::RC_NiBillboardNode)
+        {
+            // TODO: figure out what the flags mean.
+            // NifSkope has names for them, but doesn't implement them.
+            // Change mBillboardNodes to map <Bone, billboard type>
+            int trgtid = NIFSkeletonLoader::lookupOgreBoneHandle(name, node->recIndex);
+            Ogre::Bone* bone = scene->mSkelBase->getSkeleton()->getBone(trgtid);
+            bone->setManuallyControlled(true);
+            scene->mBillboardNodes.push_back(bone);
+        }
+
         Nif::ExtraPtr e = node->extra;
         while(!e.empty())
         {
diff --git a/components/nifogre/ogrenifloader.hpp b/components/nifogre/ogrenifloader.hpp
index 5858aef39..badb6ccd3 100644
--- a/components/nifogre/ogrenifloader.hpp
+++ b/components/nifogre/ogrenifloader.hpp
@@ -61,6 +61,9 @@ struct ObjectScene {
     std::vector<Ogre::ParticleSystem*> mParticles;
     std::vector<Ogre::Light*> mLights;
 
+    // Nodes that should always face the camera when rendering
+    std::vector<Ogre::Node*> mBillboardNodes;
+
     Ogre::SceneManager* mSceneMgr;
 
     // The maximum length on any of the controllers. For animations with controllers, but no text keys, consider this the animation length.
@@ -76,6 +79,9 @@ struct ObjectScene {
     { }
 
     ~ObjectScene();
+
+    // Rotate nodes in mBillboardNodes so they face the given camera
+    void rotateBillboardNodes(Ogre::Camera* camera);
 };
 
 typedef Ogre::SharedPtr<ObjectScene> ObjectScenePtr;
diff --git a/components/nifogre/skeleton.cpp b/components/nifogre/skeleton.cpp
index 04bffdeab..9ec6f15b0 100644
--- a/components/nifogre/skeleton.cpp
+++ b/components/nifogre/skeleton.cpp
@@ -30,6 +30,7 @@ void NIFSkeletonLoader::buildBones(Ogre::Skeleton *skel, const Nif::Node *node,
          node->recType == Nif::RC_RootCollisionNode || /* handled in nifbullet (hopefully) */
          node->recType == Nif::RC_NiTriShape || /* Handled in the mesh loader */
          node->recType == Nif::RC_NiBSAnimationNode || /* Handled in the object loader */
+         node->recType == Nif::RC_NiBillboardNode || /* Handled in the object loader */
          node->recType == Nif::RC_NiBSParticleNode ||
          node->recType == Nif::RC_NiCamera ||
          node->recType == Nif::RC_NiAutoNormalParticles ||