diff --git a/OpenSim/Region/Physics/BulletSPlugin/BSActorAvatarMove.cs b/OpenSim/Region/Physics/BulletSPlugin/BSActorAvatarMove.cs
index 42381ef061..14518e9044 100755
--- a/OpenSim/Region/Physics/BulletSPlugin/BSActorAvatarMove.cs
+++ b/OpenSim/Region/Physics/BulletSPlugin/BSActorAvatarMove.cs
@@ -205,6 +205,17 @@ public class BSActorAvatarMove : BSActor
                     // Flying and not colliding and velocity nearly zero.
                     m_controllingPrim.ZeroMotion(true /* inTaintTime */);
                 }
+                else
+                {
+                    //We are falling but are not touching any keys make sure not falling too fast
+                    if (m_controllingPrim.RawVelocity.Z < BSParam.AvatarTerminalVelocity)
+                    {
+
+                        OMV.Vector3 slowingForce = new OMV.Vector3(0f, 0f, BSParam.AvatarTerminalVelocity - m_controllingPrim.RawVelocity.Z) * m_controllingPrim.Mass;
+                        m_physicsScene.PE.ApplyCentralImpulse(m_controllingPrim.PhysBody, slowingForce);
+                    }
+
+                }
             }
 
             m_physicsScene.DetailLog("{0},BSCharacter.MoveMotor,taint,stopping,target={1},colliding={2}",
@@ -252,8 +263,17 @@ public class BSActorAvatarMove : BSActor
                 }
                 else
                 {
-                    // Since we're not affected by anything, whatever vertical motion the avatar has, continue that.
-                    stepVelocity.Z = m_controllingPrim.RawVelocity.Z;
+                    
+                    // Since we're not affected by anything, the avatar must be falling and we do not want that to be too fast.
+                    if (m_controllingPrim.RawVelocity.Z < BSParam.AvatarTerminalVelocity)
+                    {
+                        
+                        stepVelocity.Z = BSParam.AvatarTerminalVelocity;
+                    }
+                    else
+                    {
+                        stepVelocity.Z = m_controllingPrim.RawVelocity.Z;
+                    }
                 }
                 // DetailLog("{0},BSCharacter.MoveMotor,taint,overrideStepZWithWorldZ,stepVel={1}", LocalID, stepVelocity);
             }
diff --git a/OpenSim/Region/Physics/BulletSPlugin/BSParam.cs b/OpenSim/Region/Physics/BulletSPlugin/BSParam.cs
index 042e8a4adf..8b4df05f3e 100755
--- a/OpenSim/Region/Physics/BulletSPlugin/BSParam.cs
+++ b/OpenSim/Region/Physics/BulletSPlugin/BSParam.cs
@@ -138,6 +138,7 @@ public static class BSParam
     public static float AvatarHeightHighFudge { get; private set; }
     public static float AvatarFlyingGroundMargin { get; private set; }
     public static float AvatarFlyingGroundUpForce { get; private set; }
+    public static float AvatarTerminalVelocity { get; private set; }
 	public static float AvatarContactProcessingThreshold { get; private set; }
     public static float AvatarStopZeroThreshold { get; private set; }
 	public static int AvatarJumpFrames { get; private set; }
@@ -589,6 +590,8 @@ public static class BSParam
             5f ),
         new ParameterDefn<float>("AvatarFlyingGroundUpForce", "Upward force applied to the avatar to keep it at flying ground margin",
             2.0f ),
+        new ParameterDefn<float>("AvatarTerminalVelocity", "Terminal Velocity of falling avatar",
+            -54.0f ),
 	    new ParameterDefn<float>("AvatarContactProcessingThreshold", "Distance from capsule to check for collisions",
             0.1f ),
 	    new ParameterDefn<float>("AvatarStopZeroThreshold", "Movement velocity below which avatar is assumed to be stopped",
diff --git a/bin/OpenSimDefaults.ini b/bin/OpenSimDefaults.ini
index 8b8364cf8c..3f373ce933 100644
--- a/bin/OpenSimDefaults.ini
+++ b/bin/OpenSimDefaults.ini
@@ -1038,6 +1038,11 @@
     AvatarHeightMidFudge = 0      ; Adjustment at mid point of avatar height range
     AvatarHeightHighFudge = 0     ; Adjustment at high end of height range
 
+    ; Terminal velocity of a falling avatar
+    ; This is the same http://en.wikipedia.org/wiki/Terminal_velocity#Examples
+    ; negative for a downward speed.
+    AvatarTerminalVelocity = -54
+
     ; Default linkset implmentation
     ; 'Constraint' uses physics constraints to hold linkset together. 'Compound'
     ;    builds a compound shape from the children shapes to create a single physical