diff --git a/lang/en.json b/lang/en.json
index c971e084..f1785185 100755
--- a/lang/en.json
+++ b/lang/en.json
@@ -821,6 +821,10 @@
                     "name": "Dead",
                     "description": "The character is dead"
                 },
+                "defeated": {
+                    "name": "Defeated",
+                    "description": "This adversary is defeated."
+                },
                 "hidden": {
                     "name": "Hidden",
                     "description": "While Hidden, attacks cannot be made directly targeting them nd any rolls against them are at disadvantage.\nWhen a Hidden creature moves or attacks, they are no longer Hidden. However, if a creature is Hidden when they begin making an attack, the roll has advantage; the Hidden condition isn’t cleared until after the attack is resolved."
@@ -1870,7 +1874,8 @@
                 "tier3": "Tier 3",
                 "tier4": "tier 4",
                 "domains": "Domains",
-                "downtime": "Downtime"
+                "downtime": "Downtime",
+                "rules": "Rules"
             },
             "Tiers": {
                 "singular": "Tier",
@@ -2110,6 +2115,13 @@
                         "label": "Damage Reduction Rules Default",
                         "hint": "Wether using armor and reductions has rules on by default"
                     },
+                    "defeated": {
+                        "enabled": { "label": "Enabled" },
+                        "overlay": { "label": "Overlay Effect" },
+                        "characterDefault": { "label": "Character Default Defeated Status" },
+                        "adversaryDefault": { "label": "Adversary Default Defeated Status" },
+                        "companionDefault": { "label": "Companion Default Defeated Status" }
+                    },
                     "hopeFear": {
                         "label": "Hope & Fear",
                         "gm": { "label": "GM" },
@@ -2141,6 +2153,9 @@
                         "label": "Players Can Manually Edit Character Settings",
                         "hint": "Players are allowed to access the manual Character Settings and change their statistics beyond the rules."
                     }
+                },
+                "defeated": {
+                    "title": "Defeated Handling"
                 }
             },
             "Homebrew": {
diff --git a/module/applications/settings/automationSettings.mjs b/module/applications/settings/automationSettings.mjs
index 489bae02..0157e016 100644
--- a/module/applications/settings/automationSettings.mjs
+++ b/module/applications/settings/automationSettings.mjs
@@ -31,8 +31,19 @@ export default class DhAutomationSettings extends HandlebarsApplicationMixin(App
     };
 
     static PARTS = {
+        tabs: { template: 'systems/daggerheart/templates/sheets/global/tabs/tab-navigation.hbs' },
+        header: { template: 'systems/daggerheart/templates/settings/automation-settings/header.hbs' },
+        general: { template: 'systems/daggerheart/templates/settings/automation-settings/general.hbs' },
+        rules: { template: 'systems/daggerheart/templates/settings/automation-settings/rules.hbs' },
+        footer: { template: 'systems/daggerheart/templates/settings/automation-settings/footer.hbs' }
+    };
+
+    /** @inheritdoc */
+    static TABS = {
         main: {
-            template: 'systems/daggerheart/templates/settings/automation-settings.hbs'
+            tabs: [{ id: 'general' }, { id: 'rules' }],
+            initial: 'general',
+            labelPrefix: 'DAGGERHEART.GENERAL.Tabs'
         }
     };
 
diff --git a/module/config/generalConfig.mjs b/module/config/generalConfig.mjs
index ee0b6671..5abf2868 100644
--- a/module/config/generalConfig.mjs
+++ b/module/config/generalConfig.mjs
@@ -164,6 +164,27 @@ export const healingTypes = {
     }
 };
 
+export const defeatedConditions = {
+    defeated: {
+        id: 'defeated',
+        name: 'DAGGERHEART.CONFIG.Condition.defeated.name',
+        icon: 'icons/magic/control/fear-fright-mask-orange.webp',
+        description: 'DAGGERHEART.CONFIG.Condition.defeated.description'
+    },
+    unconscious: {
+        id: 'unconscious',
+        name: 'DAGGERHEART.CONFIG.Condition.unconscious.name',
+        icon: 'icons/magic/control/sleep-bubble-purple.webp',
+        description: 'DAGGERHEART.CONFIG.Condition.unconscious.description'
+    },
+    dead: {
+        id: 'dead',
+        name: 'DAGGERHEART.CONFIG.Condition.dead.name',
+        icon: 'icons/magic/death/grave-tombstone-glow-teal.webp',
+        description: 'DAGGERHEART.CONFIG.Condition.dead.description'
+    }
+};
+
 export const conditions = {
     vulnerable: {
         id: 'vulnerable',
@@ -183,18 +204,7 @@ export const conditions = {
         icon: 'icons/magic/control/debuff-chains-shackle-movement-red.webp',
         description: 'DAGGERHEART.CONFIG.Condition.restrained.description'
     },
-    unconscious: {
-        id: 'unconscious',
-        name: 'DAGGERHEART.CONFIG.Condition.unconscious.name',
-        icon: 'icons/magic/control/sleep-bubble-purple.webp',
-        description: 'DAGGERHEART.CONFIG.Condition.unconscious.description'
-    },
-    dead: {
-        id: 'dead',
-        name: 'DAGGERHEART.CONFIG.Condition.dead.name',
-        icon: 'icons/magic/death/grave-tombstone-glow-teal.webp',
-        description: 'DAGGERHEART.CONFIG.Condition.dead.description'
-    }
+    ...defeatedConditions
 };
 
 export const defaultRestOptions = {
diff --git a/module/data/actor/base.mjs b/module/data/actor/base.mjs
index a32ac9dd..5b225228 100644
--- a/module/data/actor/base.mjs
+++ b/module/data/actor/base.mjs
@@ -106,6 +106,28 @@ export default class BaseDataActor extends foundry.abstract.TypeDataModel {
             }, []);
             options.scrollingTextData = textData;
         }
+
+        if (changes.system?.resources) {
+            const defeatedSettings = game.settings.get(
+                CONFIG.DH.id,
+                CONFIG.DH.SETTINGS.gameSettings.Automation
+            ).defeated;
+            const typeForDefeated = ['character', 'adversary', 'companion'].find(x => x === this.parent.type);
+            if (defeatedSettings.enabled && typeForDefeated) {
+                const resource = typeForDefeated === 'companion' ? 'stress' : 'hitPoints';
+                if (changes.system.resources[resource]) {
+                    const becameMax = changes.system.resources[resource].value === this.resources[resource].max;
+                    const wasMax =
+                        this.resources[resource].value === this.resources[resource].max &&
+                        this.resources[resource].value !== changes.system.resources[resource].value;
+                    if (becameMax) {
+                        this.parent.toggleDefeated(true);
+                    } else if (wasMax) {
+                        this.parent.toggleDefeated(false);
+                    }
+                }
+            }
+        }
     }
 
     _onUpdate(changes, options, userId) {
diff --git a/module/data/combatant.mjs b/module/data/combatant.mjs
index cae5d08f..bb54c798 100644
--- a/module/data/combatant.mjs
+++ b/module/data/combatant.mjs
@@ -8,4 +8,10 @@ export default class DhCombatant extends foundry.abstract.TypeDataModel {
             actionTokens: new fields.NumberField({ required: true, integer: true, initial: 3 })
         };
     }
+
+    get isDefeated() {
+        const { unconscious, defeated, dead } = CONFIG.DH.GENERAL.conditions;
+        const defeatedConditions = new Set([unconscious.id, defeated.id, dead.id]);
+        return this.defeated || this.actor?.statuses.intersection(defeatedConditions)?.size;
+    }
 }
diff --git a/module/data/settings/Automation.mjs b/module/data/settings/Automation.mjs
index facaec17..e1d63669 100644
--- a/module/data/settings/Automation.mjs
+++ b/module/data/settings/Automation.mjs
@@ -50,6 +50,36 @@ export default class DhAutomation extends foundry.abstract.DataModel {
                 required: true,
                 initial: false,
                 label: 'DAGGERHEART.SETTINGS.Automation.FIELDS.playerCanEditSheet.label'
+            }),
+            defeated: new fields.SchemaField({
+                enabled: new fields.BooleanField({
+                    required: true,
+                    initial: false,
+                    label: 'DAGGERHEART.SETTINGS.Automation.FIELDS.defeated.enabled.label'
+                }),
+                overlay: new fields.BooleanField({
+                    required: true,
+                    initial: true,
+                    label: 'DAGGERHEART.SETTINGS.Automation.FIELDS.defeated.overlay.label'
+                }),
+                characterDefault: new fields.StringField({
+                    required: true,
+                    choices: CONFIG.DH.GENERAL.defeatedConditions,
+                    initial: CONFIG.DH.GENERAL.defeatedConditions.unconscious.id,
+                    label: 'DAGGERHEART.SETTINGS.Automation.FIELDS.defeated.characterDefault.label'
+                }),
+                adversaryDefault: new fields.StringField({
+                    required: true,
+                    choices: CONFIG.DH.GENERAL.defeatedConditions,
+                    initial: CONFIG.DH.GENERAL.defeatedConditions.defeated.id,
+                    label: 'DAGGERHEART.SETTINGS.Automation.FIELDS.defeated.adversaryDefault.label'
+                }),
+                companionDefault: new fields.StringField({
+                    required: true,
+                    choices: CONFIG.DH.GENERAL.defeatedConditions,
+                    initial: CONFIG.DH.GENERAL.defeatedConditions.defeated.id,
+                    label: 'DAGGERHEART.SETTINGS.Automation.FIELDS.defeated.companionDefault.label'
+                })
             })
         };
     }
diff --git a/module/dice/dhRoll.mjs b/module/dice/dhRoll.mjs
index 695c94a4..88d40c32 100644
--- a/module/dice/dhRoll.mjs
+++ b/module/dice/dhRoll.mjs
@@ -225,7 +225,8 @@ export const registerRollDiceHooks = () => {
         const actor = await fromUuid(config.source.actor);
         let updates = [];
         if (!actor) return;
-        if (config.roll.isCritical || config.roll.result.duality === 1) updates.push({ key: 'hope', value: 1, total: -1, enabled: true });
+        if (config.roll.isCritical || config.roll.result.duality === 1)
+            updates.push({ key: 'hope', value: 1, total: -1, enabled: true });
         if (config.roll.isCritical) updates.push({ key: 'stress', value: -1, total: 1, enabled: true });
         if (config.roll.result.duality === -1) updates.push({ key: 'fear', value: 1, total: -1, enabled: true });
 
@@ -233,16 +234,15 @@ export const registerRollDiceHooks = () => {
             if (config.rerolledRoll.isCritical || config.rerolledRoll.result.duality === 1)
                 updates.push({ key: 'hope', value: -1, total: 1, enabled: true });
             if (config.rerolledRoll.isCritical) updates.push({ key: 'stress', value: 1, total: -1, enabled: true });
-            if (config.rerolledRoll.result.duality === -1) updates.push({ key: 'fear', value: -1, total: 1, enabled: true });
+            if (config.rerolledRoll.result.duality === -1)
+                updates.push({ key: 'fear', value: -1, total: 1, enabled: true });
         }
 
         if (updates.length) {
             const target = actor.system.partner ?? actor;
-            if (!['dead', 'unconscious'].some(x => actor.statuses.has(x))) {
-                if(config.rerolledRoll)
-                    target.modifyResource(updates);
-                else
-                    config.costs = [...(config.costs ?? []), ...updates];
+            if (!['dead', 'defeated', 'unconscious'].some(x => actor.statuses.has(x))) {
+                if (config.rerolledRoll) target.modifyResource(updates);
+                else config.costs = [...(config.costs ?? []), ...updates];
             }
         }
 
diff --git a/module/documents/actor.mjs b/module/documents/actor.mjs
index 68c12b6f..6b01c058 100644
--- a/module/documents/actor.mjs
+++ b/module/documents/actor.mjs
@@ -718,4 +718,21 @@ export default class DhpActor extends Actor {
                 value: 1
             });
     }
+
+    async toggleDefeated(defeatedState) {
+        const settings = game.settings.get(CONFIG.DH.id, CONFIG.DH.SETTINGS.gameSettings.Automation).defeated;
+        const { unconscious, defeated, dead } = CONFIG.DH.GENERAL.conditions;
+        const defeatedConditions = new Set([unconscious.id, defeated.id, dead.id]);
+        if (!defeatedState) {
+            for (let defeatedId of defeatedConditions) {
+                await this.toggleStatusEffect(defeatedId, { overlay: settings.overlay, active: defeatedState });
+            }
+        } else {
+            const noDefeatedConditions = this.statuses.intersection(defeatedConditions).size === 0;
+            if (noDefeatedConditions) {
+                const condition = settings[`${this.type}Default`];
+                await this.toggleStatusEffect(condition, { overlay: settings.overlay, active: defeatedState });
+            }
+        }
+    }
 }
diff --git a/templates/settings/automation-settings/footer.hbs b/templates/settings/automation-settings/footer.hbs
new file mode 100644
index 00000000..54939c17
--- /dev/null
+++ b/templates/settings/automation-settings/footer.hbs
@@ -0,0 +1,10 @@
+<footer class="form-footer">
+    <button data-action="reset">
+        <i class="fa-solid fa-arrow-rotate-left"></i>
+        <span>{{localize "Reset"}}</span>
+    </button>
+    <button data-action="save" >
+        <i class="fa-solid fa-floppy-disk"></i>
+        <span>{{localize "Save Changes"}}</span>
+    </button>
+</footer>
\ No newline at end of file
diff --git a/templates/settings/automation-settings.hbs b/templates/settings/automation-settings/general.hbs
similarity index 71%
rename from templates/settings/automation-settings.hbs
rename to templates/settings/automation-settings/general.hbs
index 9e9da6bb..04d08a9f 100644
--- a/templates/settings/automation-settings.hbs
+++ b/templates/settings/automation-settings/general.hbs
@@ -1,7 +1,8 @@
-<div>
-    <header class="dialog-header">
-        <h1>{{localize 'DAGGERHEART.SETTINGS.Menu.automation.name'}}</h1>
-    </header>
+<section
+    class="tab {{tabs.general.cssClass}} {{tabs.general.id}}"
+    data-tab="{{tabs.general.id}}"
+    data-group="{{tabs.general.group}}"
+>
     <div class="form-group">
         <label>{{localize "DAGGERHEART.SETTINGS.Automation.FIELDS.hopeFear.label"}}</label>
         {{formGroup settingFields.schema.fields.hopeFear.fields.gm value=settingFields._source.hopeFear.gm localize=true}}
@@ -15,16 +16,5 @@
     {{formGroup settingFields.schema.fields.playerCanEditSheet value=settingFields._source.playerCanEditSheet localize=true}}
     {{formGroup settingFields.schema.fields.damageReductionRulesDefault value=settingFields._source.damageReductionRulesDefault localize=true}}
     {{formGroup settingFields.schema.fields.resourceScrollTexts value=settingFields._source.resourceScrollTexts localize=true}}
-    
-    <footer class="form-footer">
-        <button data-action="reset">
-            <i class="fa-solid fa-arrow-rotate-left"></i>
-            <span>{{localize "Reset"}}</span>
-        </button>
-        <button data-action="save" >
-            <i class="fa-solid fa-floppy-disk"></i>
-            <span>{{localize "Save Changes"}}</span>
-        </button>
-    </footer>
-</div>
+</section>
   
\ No newline at end of file
diff --git a/templates/settings/automation-settings/header.hbs b/templates/settings/automation-settings/header.hbs
new file mode 100644
index 00000000..261fe6c4
--- /dev/null
+++ b/templates/settings/automation-settings/header.hbs
@@ -0,0 +1,3 @@
+<header class="dialog-header">
+    <h1>{{localize 'DAGGERHEART.SETTINGS.Menu.automation.name'}}</h1>
+</header>
\ No newline at end of file
diff --git a/templates/settings/automation-settings/rules.hbs b/templates/settings/automation-settings/rules.hbs
new file mode 100644
index 00000000..8bbf4d93
--- /dev/null
+++ b/templates/settings/automation-settings/rules.hbs
@@ -0,0 +1,17 @@
+<section
+    class="tab {{tabs.rules.cssClass}} {{tabs.rules.id}}"
+    data-tab="{{tabs.rules.id}}"
+    data-group="{{tabs.rules.group}}"
+>
+    <fieldset>
+        <legend>
+            {{localize "DAGGERHEART.SETTINGS.Automation.defeated.title"}} 
+        </legend>
+        
+        {{formGroup settingFields.schema.fields.defeated.fields.enabled value=settingFields._source.defeated.enabled localize=true}}
+        {{formGroup settingFields.schema.fields.defeated.fields.overlay value=settingFields._source.defeated.overlay localize=true}}
+        {{formGroup settingFields.schema.fields.defeated.fields.characterDefault value=settingFields._source.defeated.characterDefault labelAttr="name" localize=true}}  
+        {{formGroup settingFields.schema.fields.defeated.fields.adversaryDefault value=settingFields._source.defeated.adversaryDefault labelAttr="name" localize=true}}  
+        {{formGroup settingFields.schema.fields.defeated.fields.companionDefault value=settingFields._source.defeated.companionDefault labelAttr="name" localize=true}}  
+    </fieldset>
+</section>
\ No newline at end of file