diff --git a/binaries/data/mods/public/simulation/components/Identity.js b/binaries/data/mods/public/simulation/components/Identity.js
index 179acb7f0e..246088396b 100644
--- a/binaries/data/mods/public/simulation/components/Identity.js
+++ b/binaries/data/mods/public/simulation/components/Identity.js
@@ -98,6 +98,32 @@ Identity.prototype.Schema =
 			"</list>" +
 		"</element>" +
 	"</optional>" +
+	"<optional>" +
+		"<element name='Formations'>" +
+			"<attribute name='datatype'>" +
+				"<value>tokens</value>" +
+			"</attribute>" +
+			"<list>" +
+				"<zeroOrMore>" +
+					"<choice>" +
+						"<value>Loose</value>" +
+						"<value>Box</value>" +
+						"<value>ColumnClosed</value>" +
+						"<value>LineClosed</value>" +
+						"<value>ColumnOpen</value>" +
+						"<value>LineOpen</value>" +
+						"<value>Flank</value>" +
+						"<value>Skirmish</value>" +
+						"<value>Wedge</value>" +
+						"<value>Testudo</value>" +
+						"<value>Phalanx</value>" +
+						"<value>Syntagma</value>" +
+						"<value>Formation12</value>" +
+					"</choice>" +
+				"</zeroOrMore>" +
+			"</list>" +
+		"</element>" +
+	"</optional>" +
 	"<optional>" +
 		"<element name='Icon'>" +
 			"<text/>" +
@@ -123,7 +149,7 @@ Identity.prototype.GetRank = function()
 
 Identity.prototype.GetClassesList = function()
 {
-	if (this.template.Classes)
+	if (this.template.Classes && "_string" in this.template.Classes)
 	{
 		var string = this.template.Classes._string;
 		return string.split(/\s+/);
@@ -139,6 +165,24 @@ Identity.prototype.HasClass = function(name)
 	return this.GetClassesList().indexOf(name) != -1;
 };
 
+Identity.prototype.GetFormationsList = function()
+{
+	if (this.template.Formations && "_string" in this.template.Formations)
+	{
+		var string = this.template.Formations._string;
+		return string.split(/\s+/);
+	}
+	else
+	{
+		return [];
+	}
+};
+
+Identity.prototype.CanUseFormation = function(name)
+{
+	return this.GetFormationsList().indexOf(name) != -1;
+};
+
 Identity.prototype.GetSelectionGroupName = function()
 {
 	return (this.template.SelectionGroupName || "");
diff --git a/binaries/data/mods/public/simulation/helpers/Commands.js b/binaries/data/mods/public/simulation/helpers/Commands.js
index cf6c7d7524..2b50d3efc3 100644
--- a/binaries/data/mods/public/simulation/helpers/Commands.js
+++ b/binaries/data/mods/public/simulation/helpers/Commands.js
@@ -37,9 +37,9 @@ function ProcessCommand(player, cmd)
 
 	case "walk":
 		var entities = FilterEntityList(cmd.entities, player, controlAllUnits);
-		var cmpUnitAI = GetFormationUnitAI(entities);
-		if (cmpUnitAI)
+		GetFormationUnitAIs(entities).forEach(function(cmpUnitAI) {
 			cmpUnitAI.Walk(cmd.x, cmd.z, cmd.queued);
+		});
 		break;
 
 	case "attack":
@@ -47,9 +47,9 @@ function ProcessCommand(player, cmd)
 		if (IsOwnedByEnemyOfPlayer(player, cmd.target))
 		{
 			var entities = FilterEntityList(cmd.entities, player, controlAllUnits);
-			var cmpUnitAI = GetFormationUnitAI(entities);
-			if (cmpUnitAI)
+			GetFormationUnitAIs(entities).forEach(function(cmpUnitAI) {
 				cmpUnitAI.Attack(cmd.target, cmd.queued);
+			});
 		}
 		break;
 
@@ -59,17 +59,17 @@ function ProcessCommand(player, cmd)
 		if (IsOwnedByAllyOfPlayer(player, cmd.target))
 		{
 			var entities = FilterEntityList(cmd.entities, player, controlAllUnits);
-			var cmpUnitAI = GetFormationUnitAI(entities);
-			if (cmpUnitAI)
+			GetFormationUnitAIs(entities).forEach(function(cmpUnitAI) {
 				cmpUnitAI.Repair(cmd.target, cmd.autocontinue, cmd.queued);
+			});
 		}
 		break;
 
 	case "gather":
 		var entities = FilterEntityList(cmd.entities, player, controlAllUnits);
-		var cmpUnitAI = GetFormationUnitAI(entities);
-		if (cmpUnitAI)
+		GetFormationUnitAIs(entities).forEach(function(cmpUnitAI) {
 			cmpUnitAI.Gather(cmd.target, cmd.queued);
+		});
 		break;
 
 	case "returnresource":
@@ -77,9 +77,9 @@ function ProcessCommand(player, cmd)
 		if (IsOwnedByPlayer(cmd.target, player))
 		{
 			var entities = FilterEntityList(cmd.entities, player, controlAllUnits);
-			var cmpUnitAI = GetFormationUnitAI(entities);
-			if (cmpUnitAI)
+			GetFormationUnitAIs(entities).forEach(function(cmpUnitAI) {
 				cmpUnitAI.ReturnResource(cmd.target, cmd.queued);
+			});
 		}
 		break;
 
@@ -247,9 +247,9 @@ function ProcessCommand(player, cmd)
 		if (CanControlUnit(cmd.target, player, controlAllUnits))
 		{
 			var entities = FilterEntityList(cmd.entities, player, controlAllUnits);
-			var cmpUnitAI = GetFormationUnitAI(entities);
-			if (cmpUnitAI)
+			GetFormationUnitAIs(entities).forEach(function(cmpUnitAI) {
 				cmpUnitAI.Garrison(cmd.target);
+			});
 		}
 		break;
 		
@@ -272,14 +272,13 @@ function ProcessCommand(player, cmd)
 
 	case "formation":
 		var entities = FilterEntityList(cmd.entities, player, controlAllUnits);
-		var cmpUnitAI = GetFormationUnitAI(entities);
-		if (!cmpUnitAI)
-			break;
-		var cmpFormation = Engine.QueryInterface(cmpUnitAI.entity, IID_Formation);
-		if (!cmpFormation)
-			break;
-		cmpFormation.LoadFormation(cmd.name);
-		cmpFormation.MoveMembersIntoFormation(true);
+		GetFormationUnitAIs(entities).forEach(function(cmpUnitAI) {
+			var cmpFormation = Engine.QueryInterface(cmpUnitAI.entity, IID_Formation);
+			if (!cmpFormation)
+				return;
+			cmpFormation.LoadFormation(cmd.name);
+			cmpFormation.MoveMembersIntoFormation(true);
+		});
 		break;
 
 	case "promote":
@@ -311,6 +310,7 @@ function ProcessCommand(player, cmd)
 
 /**
  * Get some information about the formations used by entities.
+ * The entities must have a UnitAI component.
  */
 function ExtractFormations(ents)
 {
@@ -319,17 +319,14 @@ function ExtractFormations(ents)
 	for each (var ent in ents)
 	{
 		var cmpUnitAI = Engine.QueryInterface(ent, IID_UnitAI);
-		if (cmpUnitAI)
+		var fid = cmpUnitAI.GetFormationController();
+		if (fid != INVALID_ENTITY)
 		{
-			var fid = cmpUnitAI.GetFormationController();
-			if (fid != INVALID_ENTITY)
-			{
-				if (!members[fid])
-					members[fid] = [];
-				members[fid].push(ent);
-			}
-			entities.push(ent);
+			if (!members[fid])
+				members[fid] = [];
+			members[fid].push(ent);
 		}
+		entities.push(ent);
 	}
 
 	var ids = [ id for (id in members) ];
@@ -352,29 +349,57 @@ function RemoveFromFormation(ents)
 }
 
 /**
- * Return null or a UnitAI belonging either to the selected unit
- * or to a formation entity for the selected group of units.
+ * Returns a list of UnitAI components, each belonging either to a
+ * selected unit or to a formation entity for groups of the selected units.
  */
-function GetFormationUnitAI(ents)
+function GetFormationUnitAIs(ents)
 {
 	// If an individual was selected, remove it from any formation
 	// and command it individually
 	if (ents.length == 1)
 	{
+		// Skip unit if it has no UnitAI
+		var cmpUnitAI = Engine.QueryInterface(ents[0], IID_UnitAI);
+		if (!cmpUnitAI)
+			return [];
+
 		RemoveFromFormation(ents);
 
-		return Engine.QueryInterface(ents[0], IID_UnitAI);
+		return [ cmpUnitAI ];
 	}
-	
-	// Find what formations the selected entities are currently in
-	var formation = ExtractFormations(ents);
 
-	if (formation.entities.length == 0)
+	// Separate out the units that don't support the chosen formation
+	var formedEnts = [];
+	var nonformedUnitAIs = [];
+	for each (var ent in ents)
 	{
-		// No units with AI - nothing to do here
-		return null;
+		// Skip units with no UnitAI
+		var cmpUnitAI = Engine.QueryInterface(ent, IID_UnitAI);
+		if (!cmpUnitAI)
+			continue;
+
+		var cmpIdentity = Engine.QueryInterface(ent, IID_Identity);
+		// TODO: Currently we use LineClosed as effectively a boolean flag
+		// to determine whether formations are allowed at all. Instead we
+		// should check specific formation names and do something sensible
+		// (like what?) when some units don't support them.
+		// TODO: We'll also need to fix other formation code to use
+		// "LineClosed" instead of "Line Closed" etc consistently.
+		if (cmpIdentity && cmpIdentity.CanUseFormation("LineClosed"))
+			formedEnts.push(ent);
+		else
+			nonformedUnitAIs.push(cmpUnitAI);
 	}
 
+	if (formedEnts.length == 0)
+	{
+		// No units support the foundation - return all the others
+		return nonformedUnitAIs;
+	}
+
+	// Find what formations the formationable selected entities are currently in
+	var formation = ExtractFormations(formedEnts);
+
 	var formationEnt = undefined;
 	if (formation.ids.length == 1)
 	{
@@ -442,7 +467,7 @@ function GetFormationUnitAI(ents)
 		}
 	}
 
-	return Engine.QueryInterface(formationEnt, IID_UnitAI);
+	return nonformedUnitAIs.concat(Engine.QueryInterface(formationEnt, IID_UnitAI));
 }
 
 function CanMoveEntsIntoFormation(ents, formationName)
diff --git a/binaries/data/mods/public/simulation/templates/other/plane.xml b/binaries/data/mods/public/simulation/templates/other/plane.xml
index 5aa67e3659..2548adb820 100644
--- a/binaries/data/mods/public/simulation/templates/other/plane.xml
+++ b/binaries/data/mods/public/simulation/templates/other/plane.xml
@@ -4,11 +4,12 @@
     <Civ>hele</Civ>
     <SpecificName>P-51 Mustang</SpecificName>
     <History>This may be anachronistic.</History>
-	<Tooltip>A World War 2 American fighter plane.</Tooltip>
+    <Tooltip>A World War 2 American fighter plane.</Tooltip>
     <Icon>units/global_mustang.png</Icon>
+    <Formations datatype="tokens" replace=""></Formations>
   </Identity>
   <VisualActor>
-    <Actor>units/global/plane.xml</Actor> <!-- only using this because its flaming projectiles look nice -->
+    <Actor>units/global/plane.xml</Actor>
   </VisualActor>
     <Vision>
     <Range>100</Range>
diff --git a/binaries/data/mods/public/simulation/templates/template_unit.xml b/binaries/data/mods/public/simulation/templates/template_unit.xml
index 911474fa83..dcffa04995 100644
--- a/binaries/data/mods/public/simulation/templates/template_unit.xml
+++ b/binaries/data/mods/public/simulation/templates/template_unit.xml
@@ -3,6 +3,21 @@
   <Identity>
     <GenericName>Unit</GenericName>
     <Classes datatype="tokens">Unit ConquestCritical</Classes>
+    <Formations datatype="tokens">
+      Loose
+      Box
+      ColumnClosed
+      LineClosed
+      ColumnOpen
+      LineOpen
+      Flank
+      Skirmish
+      Wedge
+      Testudo
+      Phalanx
+      Syntagma
+      Formation12
+    </Formations>
   </Identity>
   <Minimap>
     <Type>unit</Type>
diff --git a/source/simulation2/system/ParamNode.cpp b/source/simulation2/system/ParamNode.cpp
index 037428ea74..9c1cde3224 100644
--- a/source/simulation2/system/ParamNode.cpp
+++ b/source/simulation2/system/ParamNode.cpp
@@ -83,6 +83,7 @@ void CParamNode::ApplyLayer(const XMBFile& xmb, const XMBElement& element)
 	int at_disable = xmb.GetAttributeID("disable");
 	int at_replace = xmb.GetAttributeID("replace");
 	int at_datatype = xmb.GetAttributeID("datatype");
+	bool replacing = false;
 	{
 		XERO_ITER_ATTR(element, attr)
 		{
@@ -94,16 +95,22 @@ void CParamNode::ApplyLayer(const XMBFile& xmb, const XMBElement& element)
 			else if (attr.Name == at_replace)
 			{
 				m_Childs.erase(name);
-				break;
+				replacing = true;
 			}
-			else if (attr.Name == at_datatype && std::wstring(attr.Value.begin(), attr.Value.end()) == L"tokens")
+		}
+	}
+	{
+		XERO_ITER_ATTR(element, attr)
+		{
+			if (attr.Name == at_datatype && std::wstring(attr.Value.begin(), attr.Value.end()) == L"tokens")
 			{
 				CParamNode& node = m_Childs[name];
 
 				// Split into tokens
 				std::vector<std::wstring> oldTokens;
 				std::vector<std::wstring> newTokens;
-				boost::algorithm::split(oldTokens, node.m_Value, boost::algorithm::is_space());
+				if (!replacing) // ignore the old tokens if replace="" was given
+					boost::algorithm::split(oldTokens, node.m_Value, boost::algorithm::is_space());
 				boost::algorithm::split(newTokens, value, boost::algorithm::is_space());
 
 				// Delete empty tokens
diff --git a/source/simulation2/tests/test_ParamNode.h b/source/simulation2/tests/test_ParamNode.h
index 223da2b24d..2cb33caa0e 100644
--- a/source/simulation2/tests/test_ParamNode.h
+++ b/source/simulation2/tests/test_ParamNode.h
@@ -112,9 +112,9 @@ public:
 	void test_overlay_tokens()
 	{
 		CParamNode node;
-		TS_ASSERT_EQUALS(CParamNode::LoadXMLString(node, "<test> <a datatype='tokens'>x y</a><b datatype='tokens'>a  b\nc\td</b></test>"), PSRETURN_OK);
-		TS_ASSERT_EQUALS(CParamNode::LoadXMLString(node, "<test> <a datatype='tokens'>-y z w</a></test>"), PSRETURN_OK);
-		TS_ASSERT_WSTR_EQUALS(node.ToXML(), L"<test><a datatype=\"tokens\">x z w</a><b datatype=\"tokens\">a b c d</b></test>");
+		TS_ASSERT_EQUALS(CParamNode::LoadXMLString(node, "<test> <a datatype='tokens'>x y</a><b datatype='tokens'>a  b\nc\td</b><c datatype='tokens'>m n</c></test>"), PSRETURN_OK);
+		TS_ASSERT_EQUALS(CParamNode::LoadXMLString(node, "<test> <a datatype='tokens'>-y z w</a><c datatype='tokens' replace=''>n   o</c></test>"), PSRETURN_OK);
+		TS_ASSERT_WSTR_EQUALS(node.ToXML(), L"<test><a datatype=\"tokens\">x z w</a><b datatype=\"tokens\">a b c d</b><c datatype=\"tokens\">n o</c></test>");
 	}
 
 	void test_types()