diff --git a/OpenRA.Game/Game.cs b/OpenRA.Game/Game.cs
index d570f0e5ed..ba34fa99e2 100755
--- a/OpenRA.Game/Game.cs
+++ b/OpenRA.Game/Game.cs
@@ -227,7 +227,7 @@ namespace OpenRA
 
 		public static bool IsHost
 		{
-			get 
+			get
 			{
 				var client= orderManager.LobbyInfo.ClientWithIndex (
 					orderManager.Connection.LocalClientId);
diff --git a/OpenRA.Game/Graphics/CursorProvider.cs b/OpenRA.Game/Graphics/CursorProvider.cs
index 0896b21be9..4ea40508e0 100644
--- a/OpenRA.Game/Graphics/CursorProvider.cs
+++ b/OpenRA.Game/Graphics/CursorProvider.cs
@@ -1,6 +1,6 @@
 #region Copyright & License Information
 /*
- * Copyright 2007-2012 The OpenRA Developers (see AUTHORS)
+ * Copyright 2007-2013 The OpenRA Developers (see AUTHORS)
  * This file is part of OpenRA, which is free software. It is made
  * available to you under the terms of the GNU General Public License
  * as published by the Free Software Foundation. For more information,
@@ -20,7 +20,7 @@ namespace OpenRA.Graphics
 {
 	public static class CursorProvider
 	{
-		public static HardwarePalette Palette;
+		static HardwarePalette Palette;
 		static Dictionary<string, CursorSequence> cursors;
 
 		public static void Initialize(string[] sequenceFiles)
@@ -32,22 +32,17 @@ namespace OpenRA.Graphics
 			if (sequences.NodesDict.ContainsKey("ShadowIndex"))
 			{
 				Array.Resize(ref ShadowIndex, ShadowIndex.Length + 1);
-				ShadowIndex[ShadowIndex.Length - 1] = Convert.ToInt32(sequences.NodesDict["ShadowIndex"].Value);
+				int.TryParse(sequences.NodesDict["ShadowIndex"].Value, out ShadowIndex[ShadowIndex.Length - 1]);
 			}
 
-			var palettes = new Dictionary<string, Palette>();
-			foreach (var s in sequences.NodesDict["Palettes"].Nodes)
-				palettes.Add(s.Key, new Palette(FileSystem.Open(s.Value.Value), ShadowIndex));
-
 			Palette = new HardwarePalette();
-			foreach (var p in palettes)
-				Palette.AddPalette(p.Key, p.Value, false);
-
-			// Generate initial palette texture
-			Palette.Update(new IPaletteModifier[] {});
+			foreach (var p in sequences.NodesDict["Palettes"].Nodes)
+				Palette.AddPalette(p.Key, new Palette(FileSystem.Open(p.Value.Value), ShadowIndex), false);
 
 			foreach (var s in sequences.NodesDict["Cursors"].Nodes)
 				LoadSequencesForCursor(s.Key, s.Value);
+
+			Palette.Initialize();
 		}
 
 		static void LoadSequencesForCursor(string cursorSrc, MiniYaml cursor)
@@ -65,9 +60,10 @@ namespace OpenRA.Graphics
 
 		public static void DrawCursor(Renderer renderer, string cursorName, int2 lastMousePos, int cursorFrame)
 		{
-			var cursorSequence = CursorProvider.GetCursorSequence(cursorName);
+			var cursorSequence = GetCursorSequence(cursorName);
 			var cursorSprite = cursorSequence.GetSprite(cursorFrame);
-						
+
+			renderer.SetPalette(Palette);
 			renderer.SpriteRenderer.DrawSprite(cursorSprite,
 			                                   lastMousePos - cursorSequence.Hotspot,
 			                                   Palette.GetPaletteIndex(cursorSequence.Palette),
diff --git a/OpenRA.Game/Graphics/HardwarePalette.cs b/OpenRA.Game/Graphics/HardwarePalette.cs
index f3acab51d0..429735c149 100644
--- a/OpenRA.Game/Graphics/HardwarePalette.cs
+++ b/OpenRA.Game/Graphics/HardwarePalette.cs
@@ -22,7 +22,7 @@ namespace OpenRA.Graphics
 		public const int MaxPalettes = 256;
 		int allocated = 0;
 
-		ITexture texture;
+		public ITexture Texture { get; private set; }
 		Dictionary<string, Palette> palettes;
 		Dictionary<string, int> indices;
 		Dictionary<string, bool> allowsMods;
@@ -32,7 +32,7 @@ namespace OpenRA.Graphics
 			palettes = new Dictionary<string, Palette>();
 			indices = new Dictionary<string, int>();
 			allowsMods = new Dictionary<string, bool>();
-			texture = Game.Renderer.Device.CreateTexture();
+			Texture = Game.Renderer.Device.CreateTexture();
 		}
 
 		public Palette GetPalette(string name)
@@ -62,7 +62,7 @@ namespace OpenRA.Graphics
 		}
 
 		uint[,] data = new uint[MaxPalettes, 256];
-		public void Update(IEnumerable<IPaletteModifier> paletteMods)
+		public void ApplyModifiers(IEnumerable<IPaletteModifier> paletteMods)
 		{
 			var copy = palettes.ToDictionary(p => p.Key, p => new Palette(p.Value));
 			var modifiable = copy.Where(p => allowsMods[p.Key]).ToDictionary(p => p.Key, p => p.Value);
@@ -78,9 +78,12 @@ namespace OpenRA.Graphics
 					data[j,i] = c[i];
 			}
 
-			// TODO: Doesn't work (why?)
-			texture.SetData(data);
-			Game.Renderer.SetPalette(texture);
+			Texture.SetData(data);
+		}
+
+		public void Initialize()
+		{
+			ApplyModifiers(new IPaletteModifier[] {});
 		}
 	}
 }
diff --git a/OpenRA.Game/Graphics/Renderer.cs b/OpenRA.Game/Graphics/Renderer.cs
index 8c1bbd0ea0..6509778669 100644
--- a/OpenRA.Game/Graphics/Renderer.cs
+++ b/OpenRA.Game/Graphics/Renderer.cs
@@ -73,11 +73,18 @@ namespace OpenRA.Graphics
 			LineRenderer.SetViewportParams(Resolution, 1f, float2.Zero);
 		}
 
-		public void SetPalette(ITexture paletteTexture)
+		ITexture currentPaletteTexture;
+		public void SetPalette(HardwarePalette palette)
 		{
-			RgbaSpriteRenderer.SetPalette(paletteTexture);
-			SpriteRenderer.SetPalette(paletteTexture);
-			WorldSpriteRenderer.SetPalette(paletteTexture);
+			if (palette.Texture == currentPaletteTexture)
+				return;
+
+			Flush();
+			currentPaletteTexture = palette.Texture;
+
+			RgbaSpriteRenderer.SetPalette(currentPaletteTexture);
+			SpriteRenderer.SetPalette(currentPaletteTexture);
+			WorldSpriteRenderer.SetPalette(currentPaletteTexture);
 		}
 
 		public void EndFrame(IInputHandler inputHandler)
diff --git a/OpenRA.Game/Graphics/Viewport.cs b/OpenRA.Game/Graphics/Viewport.cs
index 885060c2ce..b3add5a4d4 100755
--- a/OpenRA.Game/Graphics/Viewport.cs
+++ b/OpenRA.Game/Graphics/Viewport.cs
@@ -127,7 +127,6 @@ namespace OpenRA.Graphics
 			using( new PerfSample("render_widgets") )
 			{
 				Ui.Draw();
-
 				var cursorName = Ui.Root.GetCursorOuter(Viewport.LastMousePos) ?? "default";
 				CursorProvider.DrawCursor(renderer, cursorName, Viewport.LastMousePos, (int)cursorFrame);
 			}
diff --git a/OpenRA.Game/Graphics/WorldRenderer.cs b/OpenRA.Game/Graphics/WorldRenderer.cs
index aee543cc52..c0f19ef77a 100644
--- a/OpenRA.Game/Graphics/WorldRenderer.cs
+++ b/OpenRA.Game/Graphics/WorldRenderer.cs
@@ -45,10 +45,9 @@ namespace OpenRA.Graphics
 
 			palettes = new Cache<string, PaletteReference>(CreatePaletteReference);
 			foreach (var pal in world.traitDict.ActorsWithTraitMultiple<IPalette>(world))
-				pal.Trait.InitPalette( this );
+				pal.Trait.InitPalette(this);
 
-			// Generate initial palette texture
-			palette.Update(new IPaletteModifier[] {});
+			palette.Initialize();
 
 			terrainRenderer = new TerrainRenderer(world, this);
 			shroudRenderer = new ShroudRenderer(world);
@@ -209,7 +208,8 @@ namespace OpenRA.Graphics
 
 		public void RefreshPalette()
 		{
-			palette.Update( world.WorldActor.TraitsImplementing<IPaletteModifier>() );
+			palette.ApplyModifiers(world.WorldActor.TraitsImplementing<IPaletteModifier>());
+			Game.Renderer.SetPalette(palette);
 		}
 
 		// Conversion between world and screen coordinates