Index: binaries/data/mods/public/gui/session/selection_panels.js
===================================================================
--- binaries/data/mods/public/gui/session/selection_panels.js
+++ binaries/data/mods/public/gui/session/selection_panels.js
@@ -291,16 +291,13 @@
 		if (unitEntStates.some(state => !hasClass(state, "Unit")))
 			return [];
 
+		if(!canAllEntsUseAnyFormation())
+			return [];
+
 		if (!g_AvailableFormations.has(unitEntStates[0].player))
 			g_AvailableFormations.set(unitEntStates[0].player, Engine.GuiInterfaceCall("GetAvailableFormations", unitEntStates[0].player));
 
-		let availableFormations = g_AvailableFormations.get(unitEntStates[0].player);
-
-		// Hide the panel if all formations are disabled
-		if (availableFormations.some(formation => canMoveSelectionIntoFormation(formation)))
-			return availableFormations;
-
-		return [];
+		return g_AvailableFormations.get(unitEntStates[0].player);
 	},
 	"setupButton": function(data)
 	{
Index: binaries/data/mods/public/gui/session/selection_panels_helpers.js
===================================================================
--- binaries/data/mods/public/gui/session/selection_panels_helpers.js
+++ binaries/data/mods/public/gui/session/selection_panels_helpers.js
@@ -17,6 +17,13 @@
 	return g_canMoveIntoFormation[formationTemplate];
 }
 
+function canAllEntsUseAnyFormation()
+{
+	return Engine.GuiInterfaceCall("CanAllEntsUseAnyFormation", {
+		"ents": g_Selection.toList()
+		});
+}
+
 function hasSameRestrictionCategory(templateName1, templateName2)
 {
 	let template1 = GetTemplateData(templateName1);
Index: binaries/data/mods/public/simulation/components/Formation.js
===================================================================
--- binaries/data/mods/public/simulation/components/Formation.js
+++ binaries/data/mods/public/simulation/components/Formation.js
@@ -7,8 +7,12 @@
 	"<element name='Icon'>" +
 		"<text/>" +
 	"</element>" +
-	"<element name='RequiredMemberCount' a:help='Minimum number of entities the formation should contain'>" +
-		"<data type='nonNegativeInteger'/>" +
+	"<element name='RequiredMemberCount' a:help='Minimum number of entities the formation should contain (at least 2)'>"+
+		"<data type='integer'>"+
+			"<param name='minInclusive'>"+
+			"2"+
+			"</param>"+
+		"</data>"+
 	"</element>" +
 	"<element name='DisabledTooltip' a:help='Tooltip shown when the formation is disabled'>" +
 		"<text/>" +
@@ -75,6 +79,7 @@
 
 Formation.prototype.Init = function()
 {
+	this.requiredMemberCount = this.template.RequiredMemberCount;
 	this.formationShape = this.template.FormationShape;
 	this.sortingClasses = this.template.SortingClasses.split(/\s+/g);
 	this.sortingOrder = this.template.SortingOrder;
@@ -325,16 +330,16 @@
 	this.members = this.members.filter(function(e) { return ents.indexOf(e) == -1; });
 	this.inPosition = this.inPosition.filter(function(e) { return ents.indexOf(e) == -1; });
 
-	for (var ent of ents)
+	for (let ent of ents)
 	{
-		var cmpUnitAI = Engine.QueryInterface(ent, IID_UnitAI);
+		let cmpUnitAI = Engine.QueryInterface(ent, IID_UnitAI);
 		cmpUnitAI.UpdateWorkOrders();
 		cmpUnitAI.SetFormationController(INVALID_ENTITY);
 	}
 
-	for (var ent of this.formationMembersWithAura)
+	for (let ent of this.formationMembersWithAura)
 	{
-		var cmpAuras = Engine.QueryInterface(ent, IID_Auras);
+		let cmpAuras = Engine.QueryInterface(ent, IID_Auras);
 		cmpAuras.RemoveFormationBonus(ents);
 
 		// the unit with the aura is also removed from the formation
@@ -344,10 +349,9 @@
 
 	this.formationMembersWithAura = this.formationMembersWithAura.filter(function(e) { return ents.indexOf(e) == -1; });
 
-	// If there's nobody left, destroy the formation
-	if (this.members.length == 0)
+	if (this.members.length < this.requiredMemberCount)
 	{
-		Engine.DestroyEntity(this.entity);
+		this.Disband();
 		return;
 	}
 
Index: binaries/data/mods/public/simulation/components/GuiInterface.js
===================================================================
--- binaries/data/mods/public/simulation/components/GuiInterface.js
+++ binaries/data/mods/public/simulation/components/GuiInterface.js
@@ -714,6 +714,11 @@
 	return CanMoveEntsIntoFormation(data.ents, data.formationTemplate);
 };
 
+GuiInterface.prototype.CanAllEntsUseAnyFormation = function(player, data)
+{
+	return CanAllEntsUseAnyFormation(data.ents);
+};
+
 GuiInterface.prototype.GetFormationInfoFromTemplate = function(player, data)
 {
 	let cmpTemplateManager = Engine.QueryInterface(SYSTEM_ENTITY, IID_TemplateManager);
@@ -1926,6 +1931,7 @@
 	"GetAvailableFormations": 1,
 	"GetFormationRequirements": 1,
 	"CanMoveEntsIntoFormation": 1,
+	"CanAllEntsUseAnyFormation": 1,
 	"IsFormationSelected": 1,
 	"GetFormationInfoFromTemplate": 1,
 	"IsStanceSelected": 1,
Index: binaries/data/mods/public/simulation/helpers/Commands.js
===================================================================
--- binaries/data/mods/public/simulation/helpers/Commands.js
+++ binaries/data/mods/public/simulation/helpers/Commands.js
@@ -1659,6 +1659,17 @@
 	return count >= requirements.minCount;
 }
 
+function CanAllEntsUseAnyFormation(ents)
+{
+	for(let ent of ents)
+	{
+		let cmpIdentity = Engine.QueryInterface(ent, IID_Identity);
+		if(!cmpIdentity || cmpIdentity.GetFormationsList().length == 0)
+			return false;
+	}
+	return true;
+}
+
 /**
  * Check if player can control this entity
  * returns: true if the entity is valid and owned by the player
@@ -1721,6 +1732,7 @@
 
 Engine.RegisterGlobal("GetFormationRequirements", GetFormationRequirements);
 Engine.RegisterGlobal("CanMoveEntsIntoFormation", CanMoveEntsIntoFormation);
+Engine.RegisterGlobal("CanAllEntsUseAnyFormation", CanAllEntsUseAnyFormation);
 Engine.RegisterGlobal("GetDockAngle", GetDockAngle);
 Engine.RegisterGlobal("ProcessCommand", ProcessCommand);
 Engine.RegisterGlobal("g_Commands", g_Commands);
Index: binaries/data/mods/public/simulation/templates/special/formations/null.xml
===================================================================
--- binaries/data/mods/public/simulation/templates/special/formations/null.xml
+++ binaries/data/mods/public/simulation/templates/special/formations/null.xml
@@ -3,5 +3,6 @@
   <Formation>
     <Icon>formations/null.png</Icon>
     <FormationName>None</FormationName>
+    <DisabledTooltip/>
   </Formation>
 </Entity>
Index: binaries/data/mods/public/simulation/templates/template_formation.xml
===================================================================
--- binaries/data/mods/public/simulation/templates/template_formation.xml
+++ binaries/data/mods/public/simulation/templates/template_formation.xml
@@ -22,8 +22,8 @@
   </VisualActor>
   -->
   <Formation>
-    <RequiredMemberCount>1</RequiredMemberCount>
-    <DisabledTooltip/>
+    <RequiredMemberCount>2</RequiredMemberCount>
+    <DisabledTooltip>At least 2 units required</DisabledTooltip>
     <SpeedMultiplier>1</SpeedMultiplier>
     <FormationShape>square</FormationShape>
     <SortingClasses>Hero Champion Cavalry Melee Ranged</SortingClasses>