diff --git a/doc/fixes3-7-0.txt b/doc/fixes3-7-0.txt
index c29efb795..465608193 100644
--- a/doc/fixes3-7-0.txt
+++ b/doc/fixes3-7-0.txt
@@ -1266,6 +1266,9 @@ if a temple was entered while blind, #overview could show a line of just "."
 rolling boulders ignored walls and trees
 shopkeepers consider the monster type when charging for tins, eggs and corpses
 separate level flags premapped and sokoban
+hero had worn amulet of magical breathing become unworn during theft by nymph,
+	dropped it to be able to crawl out of water, so it wasn't there when
+	game tried to transfer it to thief, triggering an "object lost" panic
 
 
 Fixes to 3.7.0-x General Problems Exposed Via git Repository
diff --git a/src/steal.c b/src/steal.c
index 2f4476566..f2fa36efb 100644
--- a/src/steal.c
+++ b/src/steal.c
@@ -220,6 +220,23 @@ remove_worn_item(
     if (!obj->owornmask)
         return;
 
+    /*
+     * Losing worn gear might drop hero into water or lava or onto a
+     * location-changing trap or take away the ability to breathe in water.
+     * Marking it 'in_use' prevents emergency_disrobe() from dropping it.
+     * in_lava() appears to be ok; other cases impacting object location
+     * (or destruction) might still have issues.
+     *
+     * Note:  if a hangup save occurs when 'in_use' is set, the item will
+     * be destroyed via useup() during restore.  Maybe remove_worn_item()
+     * and emergency_disrobe() should switch to using obj->bypass instead
+     * but that would need a lot more cooperation by callers.  It's a
+     * tradeoff between protecting the player against unintentional hangup
+     * and defending the game against deliberate hangup when player sees a
+     * message about something undesireable followed by --More--.
+     */
+    obj->in_use = 1;
+
     if (obj->owornmask & W_ARMOR) {
         if (obj == uskin) {
             impossible("Removing embedded scales?");
@@ -264,6 +281,21 @@ remove_worn_item(
         /* catchall */
         setnotworn(obj);
     }
+
+    /*
+     * Fingers crossed; hope unwearing obj didn't destroy it.  Loss of
+     * levitation, flight, water walking, magical breathing or perhaps
+     * some other property can subject hero to hardship.  drown() won't
+     * drop an 'in_use' item during emergency_disrobe() to crawl out
+     * of water.  Surviving in_lava() only burns up items which aren't
+     * able to confer such properties but dying to it will destroy all
+     * in-use items, keeping them out of subsequent bones.  Triggering
+     * traps might pose a risk of item destruction (fire, explosion)
+     * but usually that will be like the surviving lava case--the items
+     * that are affected aren't ones that will be unworn and trigger
+     * the whole mess.
+     */
+    obj->in_use = 0;
 }
 
 /* Returns 1 when something was stolen (or at least, when N should flee now),
@@ -470,8 +502,9 @@ steal(struct monst* mtmp, char* objnambuf)
             impossible("Tried to steal a strange worn thing. [%d]",
                        otmp->oclass);
         }
-    } else if (otmp->owornmask) /* weapon or ball&chain */
+    } else if (otmp->owornmask) { /* weapon or ball&chain */
         remove_worn_item(otmp, TRUE);
+    }
 
     /* do this before removing it from inventory */
     if (objnambuf)
diff --git a/src/trap.c b/src/trap.c
index 6fd5d0028..a9d7ac0c8 100644
--- a/src/trap.c
+++ b/src/trap.c
@@ -4634,14 +4634,16 @@ emergency_disrobe(boolean *lostsome)
                  * Undroppables are: body armor, boots, gloves,
                  * amulets, and rings because of the time and effort
                  * in removing them + loadstone and other cursed stuff
-                 * for obvious reasons.
+                 * for obvious reasons.  Also, any item in the midst
+                 * of being taken off or stolen.
                  */
                 if (!((obj->otyp == LOADSTONE && obj->cursed) || obj == uamul
                       || obj == uleft || obj == uright || obj == ublindf
                       || obj == uarm || obj == uarmc || obj == uarmg
                       || obj == uarmf || obj == uarmu
                       || (obj->cursed && (obj == uarmh || obj == uarms))
-                      || welded(obj)))
+                      || welded(obj)
+                      || obj->o_id == gs.stealoid || obj->in_use))
                     otmp = obj;
                 /* reached the mark and found some stuff to drop? */
                 if (--i < 0 && otmp)