diff --git a/Strategic/Strategic Town Loyalty.cpp b/Strategic/Strategic Town Loyalty.cpp
index 691e7bd07..625be01f8 100644
--- a/Strategic/Strategic Town Loyalty.cpp	
+++ b/Strategic/Strategic Town Loyalty.cpp	
@@ -2067,7 +2067,11 @@ void HandleLoyaltyImplicationsOfMercRetreat( INT8 bRetreatCode, INT16 sSectorX,
 	}
 
 	// Flugente: dynamic opinion: mercs retreated. Someone has to be blamed for this shameful defeat!
-	HandleDynamicOpinionRetreat();
+	// only do this if the enemy actually noticed us - no need to punish the player for a successful stealth operation
+	if ( gTacticalStatus.Team[ENEMY_TEAM].bAwareOfOpposition )
+	{
+		HandleDynamicOpinionRetreat();
+	}
 }