diff --git a/OpenRA.Mods.Common/OpenRA.Mods.Common.csproj b/OpenRA.Mods.Common/OpenRA.Mods.Common.csproj
index 242b6af3e0..c1d5b9637b 100644
--- a/OpenRA.Mods.Common/OpenRA.Mods.Common.csproj
+++ b/OpenRA.Mods.Common/OpenRA.Mods.Common.csproj
@@ -507,7 +507,7 @@
     <Compile Include="Traits\Upgrades\DisableOnUpgrade.cs" />
     <Compile Include="Traits\Upgrades\UpgradableTrait.cs" />
     <Compile Include="Traits\Upgrades\UpgradeActorsNear.cs" />
-    <Compile Include="Traits\Upgrades\UpgradeOnDamage.cs" />
+    <Compile Include="Traits\Upgrades\UpgradeOnDamageState.cs" />
     <Compile Include="Traits\Upgrades\UpgradeOnTerrain.cs" />
     <Compile Include="Traits\Upgrades\UpgradeManager.cs" />
     <Compile Include="Traits\Valued.cs" />
diff --git a/OpenRA.Mods.Common/Traits/Upgrades/UpgradeOnDamage.cs b/OpenRA.Mods.Common/Traits/Upgrades/UpgradeOnDamageState.cs
similarity index 64%
rename from OpenRA.Mods.Common/Traits/Upgrades/UpgradeOnDamage.cs
rename to OpenRA.Mods.Common/Traits/Upgrades/UpgradeOnDamageState.cs
index c171a49af8..0fd2711631 100644
--- a/OpenRA.Mods.Common/Traits/Upgrades/UpgradeOnDamage.cs
+++ b/OpenRA.Mods.Common/Traits/Upgrades/UpgradeOnDamageState.cs
@@ -14,7 +14,7 @@ using OpenRA.Traits;
 namespace OpenRA.Mods.Common.Traits
 {
 	[Desc("Applies an upgrade to the actor at specified damage states.")]
-	public class UpgradeOnDamageInfo : ITraitInfo, Requires<UpgradeManagerInfo>
+	public class UpgradeOnDamageStateInfo : ITraitInfo, Requires<UpgradeManagerInfo>, Requires<HealthInfo>
 	{
 		[UpgradeGrantedReference, FieldLoader.Require]
 		[Desc("The upgrades to grant.")]
@@ -32,41 +32,52 @@ namespace OpenRA.Mods.Common.Traits
 		[Desc("Are upgrades irrevocable once the conditions have been met?")]
 		public readonly bool GrantPermanently = false;
 
-		public object Create(ActorInitializer init) { return new UpgradeOnDamage(init.Self, this); }
+		public object Create(ActorInitializer init) { return new UpgradeOnDamageState(init.Self, this); }
 	}
 
-	public class UpgradeOnDamage : INotifyDamageStateChanged
+	public class UpgradeOnDamageState : INotifyDamageStateChanged, INotifyCreated
 	{
-		readonly UpgradeOnDamageInfo info;
+		readonly UpgradeOnDamageStateInfo info;
 		readonly UpgradeManager um;
+		readonly Health health;
 		bool granted;
 
-		public UpgradeOnDamage(Actor self, UpgradeOnDamageInfo info)
+		public UpgradeOnDamageState(Actor self, UpgradeOnDamageStateInfo info)
 		{
 			this.info = info;
-			um = self.TraitOrDefault<UpgradeManager>();
+			um = self.Trait<UpgradeManager>();
+			health = self.Trait<Health>();
+		}
+
+		void INotifyCreated.Created(Actor self)
+		{
+			GrantUpgradeOnValidDamageState(self, health.DamageState);
+		}
+
+		void GrantUpgradeOnValidDamageState(Actor self, DamageState state)
+		{
+			if (!info.ValidDamageStates.HasFlag(state))
+				return;
+
+			granted = true;
+			var rand = Game.CosmeticRandom;
+			var sound = info.EnabledSounds.RandomOrDefault(rand);
+			Game.Sound.Play(sound, self.CenterPosition);
+			foreach (var u in info.Upgrades)
+				um.GrantUpgrade(self, u, this);
 		}
 
 		void INotifyDamageStateChanged.DamageStateChanged(Actor self, AttackInfo e)
 		{
-			if (um == null)
-				return;
-
 			if (granted && info.GrantPermanently)
 				return;
 
-			var rand = Game.CosmeticRandom;
-			if (!granted && info.ValidDamageStates.HasFlag(e.DamageState) && !info.ValidDamageStates.HasFlag(e.PreviousDamageState))
-			{
-				granted = true;
-				var sound = info.EnabledSounds.RandomOrDefault(rand);
-				Game.Sound.Play(sound, self.CenterPosition);
-				foreach (var u in info.Upgrades)
-					um.GrantUpgrade(self, u, this);
-			}
+			if (!granted && !info.ValidDamageStates.HasFlag(e.PreviousDamageState))
+				GrantUpgradeOnValidDamageState(self, health.DamageState);
 			else if (granted && !info.ValidDamageStates.HasFlag(e.DamageState) && info.ValidDamageStates.HasFlag(e.PreviousDamageState))
 			{
 				granted = false;
+				var rand = Game.CosmeticRandom;
 				var sound = info.DisabledSounds.RandomOrDefault(rand);
 				Game.Sound.Play(sound, self.CenterPosition);
 				foreach (var u in info.Upgrades)
diff --git a/OpenRA.Mods.Common/UtilityCommands/UpgradeRules.cs b/OpenRA.Mods.Common/UtilityCommands/UpgradeRules.cs
index ecc4c7973f..7a1c039647 100644
--- a/OpenRA.Mods.Common/UtilityCommands/UpgradeRules.cs
+++ b/OpenRA.Mods.Common/UtilityCommands/UpgradeRules.cs
@@ -280,6 +280,17 @@ namespace OpenRA.Mods.Common.UtilityCommands
 					}
 				}
 
+				if (engineVersion < 20160818)
+				{
+					if (depth == 1 && node.Key.StartsWith("UpgradeOnDamage"))
+					{
+						var parts = node.Key.Split('@');
+						node.Key = "UpgradeOnDamageState";
+						if (parts.Length > 1)
+							node.Key += "@" + parts[1];
+					}
+				}
+
 				UpgradeActorRules(modData, engineVersion, ref node.Value.Nodes, node, depth + 1);
 			}
 
diff --git a/mods/ts/rules/defaults.yaml b/mods/ts/rules/defaults.yaml
index 7cb6c4bc73..eaceb33810 100644
--- a/mods/ts/rules/defaults.yaml
+++ b/mods/ts/rules/defaults.yaml
@@ -397,7 +397,7 @@
 	WithInfantryBody:
 		AttackSequence: attack
 		IdleSequences: idle1,idle2
-	UpgradeOnDamage@CRITICAL:
+	UpgradeOnDamageState@CRITICAL:
 		Upgrades: criticalspeed
 		ValidDamageStates: Critical
 		GrantPermanently: true
@@ -476,10 +476,10 @@
 		Weapons: SmallDebris
 		Pieces: 3, 7
 		Range: 2c0, 5c0
-	UpgradeOnDamage@DAMAGED:
+	UpgradeOnDamageState@DAMAGED:
 		Upgrades: damagedspeed
 		ValidDamageStates: Heavy
-	UpgradeOnDamage@CRITICAL:
+	UpgradeOnDamageState@CRITICAL:
 		Upgrades: criticalspeed
 		ValidDamageStates: Critical
 	SpeedMultiplier@DAMAGED: