Index: binaries/data/mods/public/simulation/components/Health.js
===================================================================
--- binaries/data/mods/public/simulation/components/Health.js
+++ binaries/data/mods/public/simulation/components/Health.js
@@ -47,6 +47,11 @@
 			"<text/>" +
 		"</element>" +
 	"</optional>" +
+	"<optional>" +
+		"<element name='TransformToEntityOnDeath' a:help='Entity template to spawn/transform to when this entity dies. Note: contrary to SpawnEntityOnDeath this is interactable'>" +
+			"<text/>" +
+		"</element>" +
+	"</optional>" +
 	"<element name='Unhealable' a:help='Indicates that the entity can not be healed by healer units'>" +
 		"<data type='boolean'/>" +
 	"</element>";
@@ -283,9 +288,6 @@
 		cmpDeathDamage.CauseDeathDamage();
 	PlaySound("death", this.entity);
 
-	if (this.template.SpawnEntityOnDeath)
-		this.CreateDeathSpawnedEntity();
-
 	switch (this.template.DeathType)
 	{
 	case "corpse":
@@ -343,6 +345,17 @@
 	if (!cmpPosition || !cmpPosition.IsInWorld())
 		return;
 
+	if (this.template.SpawnEntityOnDeath)
+		this.CreateDeathSpawnedEntity(this.template.SpawnEntityOnDeath, true);
+	if (this.template.TransformToEntityOnDeath)
+	{
+		let spawnedEntity = this.CreateDeathSpawnedEntity(this.template.TransformToEntityOnDeath, false);
+		Engine.PostMessage(this.entity, MT_EntityRenamed, {
+			"entity": this.entity,
+			"newentity": spawnedEntity
+		});
+	}
+
 	// Either creates a static local version of the current entity, or a
 	// persistent corpse retaining the ResourceSupply element of the parent.
 	let templateName = Engine.QueryInterface(SYSTEM_ENTITY, IID_TemplateManager).GetCurrentTemplateName(this.entity);
@@ -350,7 +363,7 @@
 	let entCorpse;
 	let cmpResourceSupply = Engine.QueryInterface(this.entity, IID_ResourceSupply);
 	let resource = cmpResourceSupply && cmpResourceSupply.GetKillBeforeGather();
-	if (resource)
+	if (resource && !this.template.TransformToEntityOnDeath)
 		entCorpse = Engine.AddEntity("resource|" + templateName);
 	else
 		entCorpse = Engine.AddLocalEntity("corpse|" + templateName);
@@ -401,18 +414,17 @@
 		});
 };
 
-Health.prototype.CreateDeathSpawnedEntity = function()
+Health.prototype.CreateDeathSpawnedEntity = function(EntityToSpawn, local = true)
 {
-	// If the unit died while not in the world, don't spawn a death entity for it
-	// since there's nowhere for it to be placed
-	let cmpPosition = Engine.QueryInterface(this.entity, IID_Position);
-	if (!cmpPosition.IsInWorld())
-		return INVALID_ENTITY;
-
 	// Create SpawnEntityOnDeath entity
-	let spawnedEntity = Engine.AddLocalEntity(this.template.SpawnEntityOnDeath);
+	let spawnedEntity;
+	if (local)
+		spawnedEntity = Engine.AddLocalEntity(EntityToSpawn);
+	else
+		spawnedEntity = Engine.AddEntity(EntityToSpawn);
 
 	// Move to same position
+	let cmpPosition = Engine.QueryInterface(this.entity, IID_Position);
 	let cmpSpawnedPosition = Engine.QueryInterface(spawnedEntity, IID_Position);
 	let pos = cmpPosition.GetPosition();
 	cmpSpawnedPosition.JumpTo(pos.x, pos.z);
Index: binaries/data/mods/public/simulation/templates/gaia/tree/wood_chopped.xml
===================================================================
--- binaries/data/mods/public/simulation/templates/gaia/tree/wood_chopped.xml
+++ binaries/data/mods/public/simulation/templates/gaia/tree/wood_chopped.xml
@@ -0,0 +1,12 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Entity parent="template_gaia_tree_chopped">
+  <Identity>
+    <SpecificName>Wood</SpecificName>
+  </Identity>
+  <ResourceSupply>
+    <Max>200</Max>
+  </ResourceSupply>
+  <VisualActor>
+    <Actor>props/flora/water_log.xml</Actor>
+  </VisualActor>
+</Entity>
Index: binaries/data/mods/public/simulation/templates/template_gaia_tree.xml
===================================================================
--- binaries/data/mods/public/simulation/templates/template_gaia_tree.xml
+++ binaries/data/mods/public/simulation/templates/template_gaia_tree.xml
@@ -1,5 +1,20 @@
 <?xml version="1.0" encoding="utf-8"?>
 <Entity parent="template_gaia">
+  <Decay>
+    <Active>false</Active>
+    <SinkingAnim>true</SinkingAnim>
+    <DelayTime>0.0</DelayTime>
+    <SinkRate>3.0</SinkRate>
+    <SinkAccel>9.8</SinkAccel>
+  </Decay>
+  <Health>
+    <DeathType>corpse</DeathType>
+    <Max>10</Max>
+    <RegenRate>0</RegenRate>
+    <IdleRegenRate>0</IdleRegenRate>
+    <Unhealable>false</Unhealable>
+    <TransformToEntityOnDeath>gaia/tree/wood_chopped</TransformToEntityOnDeath>
+  </Health>
   <Footprint>
     <Circle radius="2.5"/>
     <Height>15.0</Height>
@@ -18,8 +33,17 @@
     <!-- Trees are deleted as a workaround for gates until random maps are smart enough to not place trees inside walls. -->
     <DeleteUponConstruction>true</DeleteUponConstruction>
   </Obstruction>
+  <Resistance>
+    <Entity>
+      <Damage>
+        <Hack>1</Hack>
+        <Pierce>1</Pierce>
+        <Crush>1</Crush>
+      </Damage>
+    </Entity>
+  </Resistance>
   <ResourceSupply>
-    <KillBeforeGather>false</KillBeforeGather>
+    <KillBeforeGather>true</KillBeforeGather>
     <Max>1</Max>
     <Type>wood.tree</Type>
     <MaxGatherers>8</MaxGatherers>
Index: binaries/data/mods/public/simulation/templates/template_gaia_tree_chopped.xml
===================================================================
--- binaries/data/mods/public/simulation/templates/template_gaia_tree_chopped.xml
+++ binaries/data/mods/public/simulation/templates/template_gaia_tree_chopped.xml
@@ -0,0 +1,51 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Entity parent="template_gaia">
+  <Footprint>
+    <Circle radius="2.5"/>
+    <Height>15.0</Height>
+  </Footprint>
+  <Identity>
+    <GenericName>Tree</GenericName>
+    <Tooltip>Chop trees for wood.</Tooltip>
+    <Icon>gaia/flora_tree_generic.png</Icon>
+  </Identity>
+  <Minimap>
+    <Type>wood</Type>
+    <Color r="69" g="107" b="68"/>
+  </Minimap>
+  <Obstruction>
+    <Static width="1.6" depth="1.6"/>
+    <!-- Trees are deleted as a workaround for gates until random maps are smart enough to not place trees inside walls. -->
+    <DeleteUponConstruction>true</DeleteUponConstruction>
+  </Obstruction>
+  <ResourceSupply>
+    <KillBeforeGather>false</KillBeforeGather>
+    <Max>1</Max>
+    <Type>wood.tree</Type>
+    <MaxGatherers>8</MaxGatherers>
+  </ResourceSupply>
+  <Selectable>
+    <Overlay>
+      <Outline disable=""/>
+      <Texture>
+        <MainTexture>128x128/ellipse.png</MainTexture>
+        <MainTextureMask>128x128/ellipse_mask.png</MainTextureMask>
+      </Texture>
+    </Overlay>
+  </Selectable>
+  <Sound>
+    <SoundGroups>
+      <select>interface/select/resource/sel_tree.xml</select>
+    </SoundGroups>
+  </Sound>
+  <StatusBars>
+    <BarWidth>3.0</BarWidth>
+    <BarHeight>0.5</BarHeight>
+    <HeightOffset>10.0</HeightOffset>
+  </StatusBars>
+  <VisualActor>
+    <SelectionShape>
+      <Footprint/>
+    </SelectionShape>
+  </VisualActor>
+</Entity>