diff --git a/CHANGELOG.md b/CHANGELOG.md
index f407a156e..3b0f68c85 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,7 @@
 0.45.0
 ------
 
+    Bug #2326: After a bound item expires the last equipped item of that type is not automatically re-equipped
     Bug #2835: Player able to slowly move when overencumbered
     Bug #3374: Touch spells not hitting kwama foragers
     Bug #3591: Angled hit distance too low
diff --git a/apps/openmw/mwmechanics/actors.cpp b/apps/openmw/mwmechanics/actors.cpp
index 7990373a7..de394c446 100644
--- a/apps/openmw/mwmechanics/actors.cpp
+++ b/apps/openmw/mwmechanics/actors.cpp
@@ -50,27 +50,36 @@ bool isConscious(const MWWorld::Ptr& ptr)
     return !stats.isDead() && !stats.getKnockedDown();
 }
 
-void adjustBoundItem (const std::string& item, bool bound, const MWWorld::Ptr& actor)
+int getBoundItemSlot (const std::string& itemId)
 {
-    if (bound)
+    static std::map<std::string, int> boundItemsMap;
+    if (boundItemsMap.empty())
     {
-        if (actor.getClass().getContainerStore(actor).count(item) == 0)
-        {
-            MWWorld::InventoryStore& store = actor.getClass().getInventoryStore(actor);
-            MWWorld::Ptr newPtr = *store.MWWorld::ContainerStore::add(item, 1, actor);
-            MWWorld::ActionEquip action(newPtr);
-            action.execute(actor);
-            MWWorld::ConstContainerStoreIterator rightHand = store.getSlot(MWWorld::InventoryStore::Slot_CarriedRight);
-            // change draw state only if the item is in player's right hand
-            if (actor == MWMechanics::getPlayer()
-                    && rightHand != store.end() && newPtr == *rightHand)
-            {
-                MWBase::Environment::get().getWorld()->getPlayer().setDrawState(MWMechanics::DrawState_Weapon);
-            }
-        }
+        std::string boundId = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("sMagicBoundBootsID")->getString();
+        boundItemsMap[boundId] = MWWorld::InventoryStore::Slot_Boots;
+
+        boundId = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("sMagicBoundCuirassID")->getString();
+        boundItemsMap[boundId] = MWWorld::InventoryStore::Slot_Cuirass;
+
+        boundId = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("sMagicBoundLeftGauntletID")->getString();
+        boundItemsMap[boundId] = MWWorld::InventoryStore::Slot_LeftGauntlet;
+
+        boundId = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("sMagicBoundRightGauntletID")->getString();
+        boundItemsMap[boundId] = MWWorld::InventoryStore::Slot_RightGauntlet;
+
+        boundId = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("sMagicBoundHelmID")->getString();
+        boundItemsMap[boundId] = MWWorld::InventoryStore::Slot_Helmet;
+
+        boundId = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("sMagicBoundShieldID")->getString();
+        boundItemsMap[boundId] = MWWorld::InventoryStore::Slot_CarriedLeft;
     }
-    else
-        actor.getClass().getInventoryStore(actor).remove(item, 1, actor, true);
+
+    int slot = MWWorld::InventoryStore::Slot_CarriedRight;
+    std::map<std::string, int>::iterator it = boundItemsMap.find(itemId);
+    if (it != boundItemsMap.end())
+        slot = it->second;
+
+    return slot;
 }
 
 class CheckActorCommanded : public MWMechanics::EffectSourceVisitor
@@ -139,7 +148,6 @@ void getRestorationPerHourOfSleep (const MWWorld::Ptr& ptr, float& health, float
 
 namespace MWMechanics
 {
-
     const float aiProcessingDistance = 7168;
     const float sqrAiProcessingDistance = aiProcessingDistance*aiProcessingDistance;
 
@@ -227,6 +235,83 @@ namespace MWMechanics
         }
     };
 
+    void Actors::addBoundItem (const std::string& itemId, const MWWorld::Ptr& actor)
+    {
+        MWWorld::InventoryStore& store = actor.getClass().getInventoryStore(actor);
+        int slot = getBoundItemSlot(itemId);
+
+        if (actor.getClass().getContainerStore(actor).count(itemId) != 0)
+            return;
+
+        MWWorld::ContainerStoreIterator prevItem = store.getSlot(slot);
+
+        MWWorld::Ptr boundPtr = *store.MWWorld::ContainerStore::add(itemId, 1, actor);
+        MWWorld::ActionEquip action(boundPtr);
+        action.execute(actor);
+
+        if (actor != MWMechanics::getPlayer())
+            return;
+
+        MWWorld::Ptr newItem = *store.getSlot(slot);
+
+        if (newItem.isEmpty() || boundPtr != newItem)
+            return;
+
+        MWWorld::Player& player = MWBase::Environment::get().getWorld()->getPlayer();
+
+        // change draw state only if the item is in player's right hand
+        if (slot == MWWorld::InventoryStore::Slot_CarriedRight)
+            player.setDrawState(MWMechanics::DrawState_Weapon);
+
+        if (prevItem != store.end())
+            player.setPreviousItem(itemId, prevItem->getCellRef().getRefId());
+    }
+
+    void Actors::removeBoundItem (const std::string& itemId, const MWWorld::Ptr& actor)
+    {
+        MWWorld::InventoryStore& store = actor.getClass().getInventoryStore(actor);
+        int slot = getBoundItemSlot(itemId);
+
+        MWWorld::ContainerStoreIterator currentItem = store.getSlot(slot);
+
+        bool wasEquipped = currentItem != store.end() && Misc::StringUtils::ciEqual(currentItem->getCellRef().getRefId(), itemId);
+
+        store.remove(itemId, 1, actor, true);
+
+        if (actor != MWMechanics::getPlayer())
+            return;
+
+        MWWorld::Player& player = MWBase::Environment::get().getWorld()->getPlayer();
+        std::string prevItemId = player.getPreviousItem(itemId);
+        player.erasePreviousItem(itemId);
+
+        if (prevItemId.empty())
+            return;
+
+        // Find the item by id
+        MWWorld::Ptr item;
+        for (MWWorld::ContainerStoreIterator iter = store.begin(); iter != store.end(); ++iter)
+        {
+            if (Misc::StringUtils::ciEqual(iter->getCellRef().getRefId(), prevItemId))
+            {
+                if (item.isEmpty() ||
+                    // Prefer the stack with the lowest remaining uses
+                        !item.getClass().hasItemHealth(*iter) ||
+                        iter->getClass().getItemHealth(*iter) < item.getClass().getItemHealth(item))
+                {
+                    item = *iter;
+                }
+            }
+        }
+
+        // we should equip previous item only if expired bound item was equipped.
+        if (item.isEmpty() || !wasEquipped)
+            return;
+
+        MWWorld::ActionEquip action(item);
+        action.execute(actor);
+    }
+
     void Actors::updateActor (const MWWorld::Ptr& ptr, float duration)
     {
         // magic effects
@@ -756,25 +841,23 @@ namespace MWMechanics
             float magnitude = effects.get(it->first).getMagnitude();
             if (found != (magnitude > 0))
             {
+                if (magnitude > 0)
+                    creatureStats.mBoundItems.insert(it->first);
+                else
+                    creatureStats.mBoundItems.erase(it->first);
+
                 std::string itemGmst = it->second;
                 std::string item = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find(
                             itemGmst)->getString();
+
+                magnitude > 0 ? addBoundItem(item, ptr) : removeBoundItem(item, ptr);
+
                 if (it->first == ESM::MagicEffect::BoundGloves)
                 {
-                    item = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find(
-                                "sMagicBoundLeftGauntletID")->getString();
-                    adjustBoundItem(item, magnitude > 0, ptr);
                     item = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find(
                                 "sMagicBoundRightGauntletID")->getString();
-                    adjustBoundItem(item, magnitude > 0, ptr);
+                    magnitude > 0 ? addBoundItem(item, ptr) : removeBoundItem(item, ptr);
                 }
-                else
-                    adjustBoundItem(item, magnitude > 0, ptr);
-
-                if (magnitude > 0)
-                    creatureStats.mBoundItems.insert(it->first);
-                else
-                    creatureStats.mBoundItems.erase(it->first);
             }
         }
 
diff --git a/apps/openmw/mwmechanics/actors.hpp b/apps/openmw/mwmechanics/actors.hpp
index 15f2d3dc8..0de1f4d6c 100644
--- a/apps/openmw/mwmechanics/actors.hpp
+++ b/apps/openmw/mwmechanics/actors.hpp
@@ -4,7 +4,6 @@
 #include <set>
 #include <vector>
 #include <string>
-#include <map>
 #include <list>
 
 #include "../mwbase/world.hpp"
@@ -26,6 +25,9 @@ namespace MWMechanics
     {
             std::map<std::string, int> mDeathCount;
 
+            void addBoundItem (const std::string& itemId, const MWWorld::Ptr& actor);
+            void removeBoundItem (const std::string& itemId, const MWWorld::Ptr& actor);
+
             void updateNpc(const MWWorld::Ptr &ptr, float duration);
 
             void adjustMagicEffects (const MWWorld::Ptr& creature);
diff --git a/apps/openmw/mwworld/player.cpp b/apps/openmw/mwworld/player.cpp
index 34c5f713d..5439447fd 100644
--- a/apps/openmw/mwworld/player.cpp
+++ b/apps/openmw/mwworld/player.cpp
@@ -287,6 +287,7 @@ namespace MWWorld
         mAttackingOrSpell = false;
         mCurrentCrimeId = -1;
         mPaidCrimeId = -1;
+        mPreviousItems.clear();
         mLastKnownExteriorPosition = osg::Vec3f(0,0,0);
 
         for (int i=0; i<ESM::Skill::Length; ++i)
@@ -341,6 +342,8 @@ namespace MWWorld
         for (int i=0; i<ESM::Skill::Length; ++i)
             mSaveSkills[i].writeState(player.mSaveSkills[i]);
 
+        player.mPreviousItems = mPreviousItems;
+
         writer.startRecord (ESM::REC_PLAY);
         player.save (writer);
         writer.endRecord (ESM::REC_PLAY);
@@ -441,6 +444,8 @@ namespace MWWorld
             mForwardBackward = 0;
             mTeleported = false;
 
+            mPreviousItems = player.mPreviousItems;
+
             return true;
         }
 
@@ -461,4 +466,19 @@ namespace MWWorld
     {
         return mPaidCrimeId;
     }
+
+    void Player::setPreviousItem(const std::string& boundItemId, const std::string& previousItemId)
+    {
+        mPreviousItems[boundItemId] = previousItemId;
+    }
+
+    std::string Player::getPreviousItem(const std::string& boundItemId)
+    {
+        return mPreviousItems[boundItemId];
+    }
+
+    void Player::erasePreviousItem(const std::string& boundItemId)
+    {
+        mPreviousItems.erase(boundItemId);
+    }
 }
diff --git a/apps/openmw/mwworld/player.hpp b/apps/openmw/mwworld/player.hpp
index aabbe7015..d4a9f6050 100644
--- a/apps/openmw/mwworld/player.hpp
+++ b/apps/openmw/mwworld/player.hpp
@@ -1,6 +1,8 @@
 #ifndef GAME_MWWORLD_PLAYER_H
 #define GAME_MWWORLD_PLAYER_H
 
+#include <map>
+
 #include "../mwworld/refdata.hpp"
 #include "../mwworld/livecellref.hpp"
 
@@ -46,6 +48,9 @@ namespace MWWorld
         int                     mCurrentCrimeId;    // the id assigned witnesses
         int                     mPaidCrimeId;      // the last id paid off (0 bounty)
 
+        typedef std::map<std::string, std::string> PreviousItems; // previous equipped items, needed for bound spells
+        PreviousItems mPreviousItems;
+
         // Saved stats prior to becoming a werewolf
         MWMechanics::SkillValue mSaveSkills[ESM::Skill::Length];
         MWMechanics::AttributeValue mSaveAttributes[ESM::Attribute::Length];
@@ -120,6 +125,10 @@ namespace MWWorld
         int getNewCrimeId();  // get new id for witnesses
         void recordCrimeId(); // record the paid crime id when bounty is 0
         int getCrimeId() const;     // get the last paid crime id
+
+        void setPreviousItem(const std::string& boundItemId, const std::string& previousItemId);
+        std::string getPreviousItem(const std::string& boundItemId);
+        void erasePreviousItem(const std::string& boundItemId);
     };
 }
 #endif
diff --git a/components/esm/player.cpp b/components/esm/player.cpp
index 9ec53240a..7dad34dfb 100644
--- a/components/esm/player.cpp
+++ b/components/esm/player.cpp
@@ -31,6 +31,18 @@ void ESM::Player::load (ESMReader &esm)
     mPaidCrimeId = -1;
     esm.getHNOT (mPaidCrimeId, "PAYD");
 
+    bool checkPrevItems = true;
+    while (checkPrevItems)
+    {
+        std::string boundItemId = esm.getHNOString("BOUN");
+        std::string prevItemId = esm.getHNOString("PREV");
+
+        if (!boundItemId.empty())
+            mPreviousItems[boundItemId] = prevItemId;
+        else
+            checkPrevItems = false;
+    }
+
     if (esm.hasMoreSubs())
     {
         for (int i=0; i<ESM::Attribute::Length; ++i)
@@ -62,6 +74,12 @@ void ESM::Player::save (ESMWriter &esm) const
     esm.writeHNT ("CURD", mCurrentCrimeId);
     esm.writeHNT ("PAYD", mPaidCrimeId);
 
+    for (PreviousItems::const_iterator it=mPreviousItems.begin(); it != mPreviousItems.end(); ++it)
+    {
+        esm.writeHNString ("BOUN", it->first);
+        esm.writeHNString ("PREV", it->second);
+    }
+
     for (int i=0; i<ESM::Attribute::Length; ++i)
         mSaveAttributes[i].save(esm);
     for (int i=0; i<ESM::Skill::Length; ++i)
diff --git a/components/esm/player.hpp b/components/esm/player.hpp
index 9beda8510..14201fff5 100644
--- a/components/esm/player.hpp
+++ b/components/esm/player.hpp
@@ -34,6 +34,9 @@ namespace ESM
         StatState<int> mSaveAttributes[ESM::Attribute::Length];
         StatState<int> mSaveSkills[ESM::Skill::Length];
 
+        typedef std::map<std::string, std::string> PreviousItems; // previous equipped items, needed for bound spells
+        PreviousItems mPreviousItems;
+
         void load (ESMReader &esm);
         void save (ESMWriter &esm) const;
     };
diff --git a/components/esm/savedgame.cpp b/components/esm/savedgame.cpp
index c96261c64..ea9fef4fb 100644
--- a/components/esm/savedgame.cpp
+++ b/components/esm/savedgame.cpp
@@ -5,7 +5,7 @@
 #include "defs.hpp"
 
 unsigned int ESM::SavedGame::sRecordId = ESM::REC_SAVE;
-int ESM::SavedGame::sCurrentFormat = 4;
+int ESM::SavedGame::sCurrentFormat = 5;
 
 void ESM::SavedGame::load (ESMReader &esm)
 {