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
@@ -308,8 +308,7 @@
 };
 
 /**
- * Set whether we should rearrange formation members if
- * units are removed from the formation.
+ * Set whether we are allowed to rearrange formation members.
  */
 Formation.prototype.SetRearrange = function(rearrange)
 {
@@ -911,29 +910,33 @@
 
 Formation.prototype.ShapeUpdate = function()
 {
+	if (!this.rearrange)
+		return;
+
 	// Check the distance to twin formations, and merge if when
 	// the formations could collide
-	for (var i = this.twinFormations.length - 1; i >= 0; --i)
+	for (let i = this.twinFormations.length - 1; i >= 0; --i)
 	{
 		// only do the check on one side
 		if (this.twinFormations[i] <= this.entity)
 			continue;
-
-		var cmpPosition = Engine.QueryInterface(this.entity, IID_Position);
-		var cmpOtherPosition = Engine.QueryInterface(this.twinFormations[i], IID_Position);
-		var cmpOtherFormation = Engine.QueryInterface(this.twinFormations[i], IID_Formation);
-		if (!cmpPosition || !cmpOtherPosition || !cmpOtherFormation)
+		let cmpPosition = Engine.QueryInterface(this.entity, IID_Position);
+		let cmpOtherPosition = Engine.QueryInterface(this.twinFormations[i], IID_Position);
+		let cmpOtherFormation = Engine.QueryInterface(this.twinFormations[i], IID_Formation);
+		if (!cmpPosition || !cmpOtherPosition || !cmpOtherFormation ||
+		     !cmpPosition.IsInWorld() || !cmpOtherPosition.IsInWorld())
 			continue;
 
-		var thisPosition = cmpPosition.GetPosition2D();
-		var otherPosition = cmpOtherPosition.GetPosition2D();
-		var dx = thisPosition.x - otherPosition.x;
-		var dy = thisPosition.y - otherPosition.y;
-		var dist = Math.sqrt(dx * dx + dy * dy);
+		let thisPosition = cmpPosition.GetPosition2D();
+		let otherPosition = cmpOtherPosition.GetPosition2D();
 
-		var thisSize = this.GetSize();
-		var otherSize = cmpOtherFormation.GetSize();
-		var minDist = Math.max(thisSize.width / 2, thisSize.depth / 2) +
+		let dx = thisPosition.x - otherPosition.x;
+		let dy = thisPosition.y - otherPosition.y;
+		let dist = Math.sqrt(dx * dx + dy * dy);
+
+		let thisSize = this.GetSize();
+		let otherSize = cmpOtherFormation.GetSize();
+		let minDist = Math.max(thisSize.width / 2, thisSize.depth / 2) +
 			Math.max(otherSize.width / 2, otherSize.depth / 2) +
 			this.formationSeparation;
 
@@ -946,12 +949,12 @@
 		cmpOtherFormation.RemoveMembers(otherMembers);
 		this.AddMembers(otherMembers);
 		Engine.DestroyEntity(this.twinFormations[i]);
-		this.twinFormations.splice(i,1);
+		this.twinFormations.splice(i, 1);
 	}
 	// Switch between column and box if necessary
-	var cmpUnitAI = Engine.QueryInterface(this.entity, IID_UnitAI);
-	var walkingDistance = cmpUnitAI.ComputeWalkingDistance();
-	var columnar = walkingDistance > g_ColumnDistanceThreshold;
+	let cmpUnitAI = Engine.QueryInterface(this.entity, IID_UnitAI);
+	let walkingDistance = cmpUnitAI.ComputeWalkingDistance();
+	let columnar = walkingDistance > g_ColumnDistanceThreshold;
 	if (columnar != this.columnar)
 	{
 		this.offsets = undefined;
Index: binaries/data/mods/public/simulation/components/UnitAI.js
===================================================================
--- binaries/data/mods/public/simulation/components/UnitAI.js
+++ binaries/data/mods/public/simulation/components/UnitAI.js
@@ -742,6 +742,9 @@
 				this.CallMemberFunction("Stop", [false]);
 			this.StopMoving();
 			this.FinishOrder();
+			// Don't move the members back into formation,
+			// as the formation then resets and it looks odd when walk-stopping.
+			// TODO: this should be improved in the formation reshaping code.
 		},
 
 		"Order.Attack": function(msg) {
@@ -930,8 +933,6 @@
 
 		"IDLE": {
 			"enter": function(msg) {
-				var cmpFormation = Engine.QueryInterface(this.entity, IID_Formation);
-				cmpFormation.SetRearrange(false);
 				return false;
 			},
 		},
@@ -1223,9 +1224,16 @@
 		"MEMBER": {
 			// Wait for individual members to finish
 			"enter": function(msg) {
-				var cmpFormation = Engine.QueryInterface(this.entity, IID_Formation);
+				// Don't rearrange the formation, as that forces all units to stop
+				// what they're doing.
+				let cmpFormation = Engine.QueryInterface(this.entity, IID_Formation);
 				cmpFormation.SetRearrange(false);
-				this.StopMoving();
+				// While waiting on members, the formation is more like
+				// a group of unit and does not have a well-defined position,
+				// so move the controller out of the world to enforce that.
+				let cmpPosition = Engine.QueryInterface(this.entity, IID_Position);
+				cmpPosition.MoveOutOfWorld();
+
 				this.StartTimer(1000, 1000);
 				return false;
 			},
@@ -1245,13 +1253,15 @@
 						this.FindWalkAndFightTargets();
 					return;
 				}
-				return false;
+				return;
 			},
 
 			"leave": function(msg) {
 				this.StopTimer();
+				// Reform entirely as members might be all over the place now.
 				let cmpFormation = Engine.QueryInterface(this.entity, IID_Formation);
-				cmpFormation.MoveToMembersCenter();
+				if (cmpFormation)
+					cmpFormation.MoveMembersIntoFormation(true);
 			},
 		},
 	},
@@ -1328,10 +1338,7 @@
 
 		"WALKING": {
 			"enter": function() {
-				this.formationOffset = { "x": this.order.data.x, "z": this.order.data.z };
 				let cmpUnitMotion = Engine.QueryInterface(this.entity, IID_UnitMotion);
-				// Prevent unit to turn when stopmoving is called.
-				cmpUnitMotion.SetFacePointAfterMove(false);
 				cmpUnitMotion.MoveToFormationOffset(this.order.data.target, this.order.data.x, this.order.data.z);
 				if (this.order.data.offsetsChanged)
 				{
@@ -1349,32 +1356,31 @@
 			},
 
 			"leave": function() {
+				// Don't use the logic from unitMotion, as SetInPosition
+				// has already given us a custom rotation
+				// (or we failed to move and thus don't care.)
+				this.SetFacePointAfterMove(false);
 				this.StopMoving();
+				// Reset default behaviour (TODO: actually get the previuos behaviour).
 				this.SetFacePointAfterMove(true);
 			},
 
-			// Occurs when the unit has reached its destination and the controller
-			// is done moving. The controller is notified.
 			"MovementUpdate": function(msg) {
-				// We can only finish this order if the move was really completed.
-				let cmpPosition = Engine.QueryInterface(this.formationController, IID_Position);
-				let atDestination = cmpPosition && cmpPosition.IsInWorld();
-				if (!atDestination && cmpPosition)
+				// We're supposed to be walking in formation,
+				// but the controller has no position -> abort.
+				let cmpControllerPosition = Engine.QueryInterface(this.formationController, IID_Position);
+				if (!cmpControllerPosition || !cmpControllerPosition.IsInWorld())
 				{
-					let pos = cmpPosition.GetPosition2D();
-					atDestination = this.CheckPointRangeExplicit(pos.X + this.order.data.x, pos.Y + this.order.data.z, 0, 1);
-				}
-				if (!atDestination && !msg.likelyFailure)
+					this.FinishOrder();
 					return;
-
-				if (this.FinishOrder())
+				}
+				if (!msg.likelyFailure && !msg.likelySuccess)
 					return;
 
 				let cmpFormation = Engine.QueryInterface(this.formationController, IID_Formation);
 				if (cmpFormation)
 					cmpFormation.SetInPosition(this.entity);
-
-				delete this.formationOffset;
+				this.FinishOrder();
 			},
 		},
 
@@ -1544,16 +1550,6 @@
 				if (this.FindNewTargets())
 					return;
 
-				if (this.formationOffset && this.formationController)
-				{
-					this.PushOrder("FormationWalk", {
-						"target": this.formationController,
-						"x": this.formationOffset.x,
-						"z": this.formationOffset.z
-					});
-					return;
-				}
-
 				if (!this.isIdle)
 				{
 					this.isIdle = true;
@@ -3730,7 +3726,8 @@
 	this.order = this.orderQueue[0];
 
 	let cmpPosition = Engine.QueryInterface(this.entity, IID_Position);
-	if (this.orderQueue.length && (this.IsGarrisoned() || cmpPosition && cmpPosition.IsInWorld()))
+	if (this.orderQueue.length && (this.IsGarrisoned() || this.IsFormationController() ||
+	        cmpPosition && cmpPosition.IsInWorld()))
 	{
 		let ret = this.UnitFsm.ProcessMessage(this,
 			{ "type": "Order."+this.order.type, "data": this.order.data }
Index: binaries/data/mods/public/simulation/components/tests/test_UnitAI.js
===================================================================
--- binaries/data/mods/public/simulation/components/tests/test_UnitAI.js
+++ binaries/data/mods/public/simulation/components/tests/test_UnitAI.js
@@ -289,6 +289,7 @@
 		GetPosition2D: function() { return new Vector2D(this.x, this.z); },
 		GetRotation: function() { return { "y": 0 }; },
 		IsInWorld: function() { return true; },
+		MoveOutOfWorld: () => {}
 	});
 
 	AddMock(controller, IID_UnitMotion, {