Index: binaries/data/mods/public/simulation/components/Damage.js
===================================================================
--- binaries/data/mods/public/simulation/components/Damage.js
+++ binaries/data/mods/public/simulation/components/Damage.js
@@ -232,6 +232,65 @@
 };
 
 /**
+ * Damages units around a given entity.
+ * @param {Object}   data - the data sent by the caller.
+ * @param {number}   data.attacker - the entity id of the attacker.
+ * @param {Vector2D} data.origin - the origin of the attacker.
+ * @param {number}   data.radius - the radius of the proximity damage.
+ * @param {string}   data.shape - the shape of the radius.
+ * @param {Object}   data.strengths - data of the form { 'hack': number, 'pierce': number, 'crush': number }.
+ * @param {string}   data.type - the type of damage.
+ * @param {number}   data.attackerOwner - the player id of the attacker.
+ * @param {Object}   data.proximityBonus - the attack bonus template from the attacker.
+ * @param {number[]} data.playersToDamage - the array of player id's to damage.
+ */
+Damage.prototype.CauseProximityDamage = function(data)
+{
+	// Get nearby entities and define variables
+	let cmpRangeManager = Engine.QueryInterface(SYSTEM_ENTITY, IID_RangeManager);
+	let nearEnts;
+	if (cmpRangeManager)
+		nearEnts = cmpRangeManager.ExecuteQuery(data.attacker, 0, data.radius, data.playersToDamage, IID_DamageReceiver);
+	let cmpProximityDamage = Engine.QueryInterface(data.attacker, IID_ProximityDamage);
+	let restrictedClasses = cmpProximityDamage.GetRestrictedClasses();
+	let damageMultiplier = 1;
+
+	// Cycle through all the nearby entities and damage it appropriately based on its distance from the origin.
+	for (let ent of nearEnts)
+	{
+		// Do not damage restricted classes
+		let cmpIdentity = QueryMiragedInterface(ent, IID_Identity);
+		let targetClasses = cmpIdentity.GetClassesList();
+		if (restrictedClasses.length && MatchesClassList(targetClasses, restrictedClasses))
+			continue;
+
+		// Calculate distance effects
+		let cmpPosition = Engine.QueryInterface(ent, IID_Position);
+		if (!cmpPosition || !cmpPosition.IsInWorld())
+			continue;
+		let entityPosition = cmpPosition.GetPosition2D();
+		if (data.shape == 'Circular')
+			damageMultiplier = 1 - data.origin.distanceToSquared(entityPosition) / (data.radius * data.radius);
+		else
+			warn("The " + data.shape + " proximity damage shape is not implemented!");
+
+		// Apply bonusses
+		if (data.proximityBonus)
+			damageMultiplier *= GetDamageBonus(ent, data.proximityBonus);
+
+		// Call CauseDamage which reduces the hitpoints, posts network command, plays sounds....
+		this.CauseDamage({
+			"strengths": data.strengths,
+			"target": ent,
+			"attacker": data.attacker,
+			"multiplier": damageMultiplier,
+			"type": data.type,
+			"attackerOwner": data.attackerOwner
+		});
+	}
+};
+
+/**
  * Causes damage on a given unit.
  * @param {Object} data - the data passed by the caller.
  * @param {Object} data.strengths - data in the form of { 'hack': number, 'pierce': number, 'crush': number }.
Index: binaries/data/mods/public/simulation/components/ProximityDamage.js
===================================================================
--- /dev/null
+++ binaries/data/mods/public/simulation/components/ProximityDamage.js
@@ -0,0 +1,180 @@
+function ProximityDamage() {}
+
+ProximityDamage.prototype.bonusesSchema =
+	"<optional>" +
+		"<element name='Bonuses'>" +
+			"<zeroOrMore>" +
+				"<element>" +
+					"<anyName/>" +
+					"<interleave>" +
+						"<optional>" +
+							"<element name='Civ' a:help='If an entity has this civ then the bonus is applied'><text/></element>" +
+						"</optional>" +
+						"<element name='Classes' a:help='If an entity has all these classes then the bonus is applied'><text/></element>" +
+						"<element name='Multiplier' a:help='The attackers attack strength is multiplied by this'><ref name='nonNegativeDecimal'/></element>" +
+					"</interleave>" +
+				"</element>" +
+			"</zeroOrMore>" +
+		"</element>" +
+	"</optional>";
+
+ProximityDamage.prototype.restrictedClassesSchema =
+	"<optional>" +
+		"<element name='RestrictedClasses' a:help='Space delimited list of classes that cannot be damaged by this entity. If target entity has any of these classes, it cannot be damaged'>" +
+			"<attribute name='datatype'>" +
+				"<value>tokens</value>" +
+			"</attribute>" +
+			"<text/>" +
+		"</element>" +
+	"</optional>";
+
+ProximityDamage.prototype.Schema =
+	"<a:help>Whether a unit or building inflicts damage to nearby units.</a:help>" +
+	"<a:example>" +
+		"<Shape>Circular</Shape>" +
+		"<Range>10</Range>" +
+		"<FriendlyFire>true</FriendlyFire>" +
+		"<OnlyWhenMoving>true</OnlyWhenMoving>" +
+		"<Hack>0.0</Hack>" +
+		"<Pierce>10.0</Pierce>" +
+		"<Crush>50.0</Crush>" +
+	"</a:example>" +
+	"<element name='Shape' a:help='Shape of the proximity damage, can be circular'><text/></element>" +
+	"<element name='Range' a:help='Size of the area affected by the proximity damage'><ref name='nonNegativeDecimal'/></element>" +
+	"<element name='FriendlyFire' a:help='Whether the proximity damage can hurt non enemy units'><data type='boolean'/></element>" +
+	"<element name='OnlyWhenMoving' a:help='Whether the proximity damage is only applied when moving'><data type='boolean'/></element>" +
+	DamageTypes.BuildSchema("damage strength") +
+	ProximityDamage.prototype.restrictedClassesSchema +
+	ProximityDamage.prototype.bonusesSchema;
+
+ProximityDamage.prototype.Init = function()
+{
+};
+
+/**
+ * Find the entities not to be damaged by this proximity damage
+ * @return {Array} classes not to be damaged by this proximity damage
+ */
+ProximityDamage.prototype.GetRestrictedClasses = function()
+{
+	if (this.template.RestrictedClasses &&
+	    this.template.RestrictedClasses._string)
+		return this.template.RestrictedClasses._string.split(/\s+/);
+
+	return [];
+};
+
+ProximityDamage.prototype.Serialize = null; // We have no dynamic state to save
+
+/**
+ * Work out the damage values with technology effects
+ * @return {Array} modifications to the damage types
+ */
+ProximityDamage.prototype.GetProximityDamageStrengths = function()
+{
+	let applyMods = damageType =>
+		ApplyValueModificationsToEntity("ProximityDamage/" + damageType, +(this.template[damageType] || 0), this.entity);
+
+	let ret = {};
+	for (let damageType of DamageTypes.GetTypes())
+		ret[damageType] = applyMods(damageType);
+
+	return ret;
+};
+
+/**
+ * Handle any bonuses with this damage type
+ * @return {Array} bonuses to apply
+ */
+ProximityDamage.prototype.GetBonusTemplate = function()
+{
+	return this.template.Bonuses || null;
+};
+
+ProximityDamage.prototype.CauseProximityDamage = function()
+{
+	// Return when this entity is otherworldly or garrisoned
+	let cmpPosition = Engine.QueryInterface(this.entity, IID_Position);
+	if (!cmpPosition || !cmpPosition.IsInWorld())
+		return;
+
+	let owner;
+	let cmpOwnership = Engine.QueryInterface(this.entity, IID_Ownership);
+	if (cmpOwnership)
+		owner = cmpOwnership.GetOwner();
+	if (owner == INVALID_PLAYER)
+		warn("Unit causing proximity damage does not have any owner.");
+
+	// Get an array of the players which ought to be damaged
+	let playersToDamage;
+	let cmpDamage = Engine.QueryInterface(SYSTEM_ENTITY, IID_Damage);
+	if (cmpDamage)
+		playersToDamage = cmpDamage.GetPlayersToDamage(owner, this.template.FriendlyFire != "false");
+
+	let radius = ApplyValueModificationsToEntity("ProximityDamage/Range", +this.template.Range, this.entity);
+
+	// Call the Damage-component to find out which entities to damage and damage them
+	if (cmpDamage)
+		cmpDamage.CauseProximityDamage({
+			"attacker": this.entity,
+			"origin": cmpPosition.GetPosition2D(),
+			"radius": radius,
+			"shape": this.template.Shape,
+			"strengths": this.GetProximityDamageStrengths(),
+			"proximityBonus": this.GetBonusTemplate(),
+			"playersToDamage": playersToDamage,
+			"type": "Proximity",
+			"attackerOwner": owner
+		});
+};
+
+// Start the damage timer when no timer exists.
+ProximityDamage.prototype.CheckTimer = function()
+{
+	// If the unit only causes proximity damage whilst moving, disable timer when not moving
+	if (this.template.OnlyWhenMoving == "true")
+	{
+		let cmpUnitMotion = Engine.QueryInterface(this.entity, IID_UnitMotion);
+		if (cmpUnitMotion && !cmpUnitMotion.IsMoving())
+		{
+			// We don't need a timer, disable if one exists
+			if (this.proximityDamageTimer)
+			{
+				let cmpTimer = Engine.QueryInterface(SYSTEM_ENTITY, IID_Timer);
+				cmpTimer.CancelTimer(this.proximityDamageTimer);
+				delete this.proximityDamageTimer;
+			}
+			return;
+		}
+	}
+
+	// We need a timer, enable if one doesn't exist
+	if (this.proximityDamageTimer)
+		return;
+
+	let cmpTimer = Engine.QueryInterface(SYSTEM_ENTITY, IID_Timer);
+	this.proximityDamageTimer = cmpTimer.SetInterval(this.entity, IID_ProximityDamage, "CauseProximityDamage", 100, 100, undefined);
+};
+
+/**
+ * Check timer when a unit changes motion
+ * @param {{"msg.starting": boolean, "msg.error": boolean}} - Whether a move is started and whether an error is thrown.
+ */
+ProximityDamage.prototype.OnMotionChanged = function(msg)
+{
+	this.CheckTimer();
+};
+
+/**
+ * Check timer when a unit changes ownership
+ * @param {{"msg.from": number, "msg.to": number}} - From which player to which player the ownership is changed.
+ */
+ProximityDamage.prototype.OnOwnershipChanged = function(msg)
+{
+	if (msg.to == INVALID_PLAYER)
+		return;
+
+	this.CheckTimer();
+};
+
+Engine.RegisterComponentType(IID_ProximityDamage, "ProximityDamage", ProximityDamage);
Index: binaries/data/mods/public/simulation/components/interfaces/ProximityDamage.js
===================================================================
--- /dev/null
+++ binaries/data/mods/public/simulation/components/interfaces/ProximityDamage.js
@@ -0,0 +1 @@
+Engine.RegisterInterface("ProximityDamage");
Index: binaries/data/mods/public/simulation/components/tests/test_ProximityDamage.js
===================================================================
--- /dev/null
+++ binaries/data/mods/public/simulation/components/tests/test_ProximityDamage.js
@@ -0,0 +1,100 @@
+Engine.LoadHelperScript("DamageBonus.js");
+Engine.LoadHelperScript("DamageTypes.js");
+Engine.LoadHelperScript("ValueModification.js");
+Engine.LoadComponentScript("interfaces/AuraManager.js");
+Engine.LoadComponentScript("interfaces/Damage.js");
+Engine.LoadComponentScript("interfaces/ProximityDamage.js");
+Engine.LoadComponentScript("interfaces/TechnologyManager.js");
+Engine.LoadComponentScript("interfaces/Timer.js");
+Engine.LoadComponentScript("ProximityDamage.js");
+Engine.LoadComponentScript("Timer.js");
+
+let cmpTimer = ConstructComponent(SYSTEM_ENTITY, "Timer");
+cmpTimer.OnUpdate({ turnLength: 1 });
+
+let damagingEnt = 42;
+let player = 1;
+let playersToDamage = [1, 2, 3, 7];
+let pos = new Vector2D(3, 4.2);
+
+AddMock(damagingEnt, IID_Position, {
+	"GetPosition2D": () => pos,
+	"IsInWorld": () => true
+});
+
+AddMock(damagingEnt, IID_Ownership, {
+	"GetOwner": () => player
+});
+
+ApplyValueModificationsToEntity = function(value, stat, ent)
+{
+	if (value == "ProximityDamage/Pierce" && ent == damagingEnt)
+		return stat + 200;
+	return stat;
+};
+
+let cmpProximityDamage = ConstructComponent(damagingEnt, "ProximityDamage", {
+	"Shape": "Circular",
+	"Range": 10,
+	"FriendlyFire": true,
+	"OnlyWhenMoving": false,
+	"Hack": 0.0,
+	"Pierce": 10.0,
+	"Crush": 50.0
+});
+
+let modifiedDamage = {
+	"Hack": 0.0,
+	"Pierce": 210.0,
+	"Crush": 50.0
+};
+
+let result = {
+	"attacker": damagingEnt,
+	"origin": pos,
+	"radius": cmpProximityDamage.Range,
+	"shape": cmpProximityDamage.Shape,
+	"strengths": modifiedDamage,
+	"splashBonus": null,
+	"playersToDamage": playersToDamage,
+	"type": "Proximity",
+	"attackerOwner": player
+};
+
+TS_ASSERT(cmpProximityDamage.GetBonusTemplate() == null);
+
+AddMock(SYSTEM_ENTITY, IID_ProximityDamage, {
+	"CauseProximityDamage": data => TS_ASSERT_UNEVAL_EQUALS(data, result),
+	"GetPlayersToDamage": (owner, friendlyFire) => playersToDamage
+});
+
+TS_ASSERT_UNEVAL_EQUALS(cmpProximityDamage.GetProximityDamageStrengths(), modifiedDamage);
+cmpProximityDamage.CauseProximityDamage();
+
+// Test proximity damage with bonus
+
+cmpProximityDamage = ConstructComponent(6, "ProximityDamage", {
+	"Shape": "Circular",
+	"Range": 10,
+	"FriendlyFire": true,
+	"OnlyWhenMoving": false,
+	"Hack": 0.0,
+	"Pierce": 10.0,
+	"Crush": 50.0,
+	"RestrictedClasses":{
+		"_string": "Javelin"
+	},
+	"Bonuses": {
+		"Bonus1":{
+			"Civ": "iber"
+		},
+		"Bonus2":{
+			"Classes": "Javelin"
+		},
+		"Bonus3":{
+			"Civ": "athen",
+			"Multiplier": 2
+		}
+	}
+});
+TS_ASSERT(cmpProximityDamage.GetBonusTemplate() != null);