diff --git a/src/s_sound.cpp b/src/s_sound.cpp
index 6c548f400..9749d635c 100644
--- a/src/s_sound.cpp
+++ b/src/s_sound.cpp
@@ -1764,7 +1764,7 @@ void S_SetSoundPaused (int state)
 			S_ResumeSound(true);
 			if (GSnd != NULL)
 			{
-				GSnd->SetInactive(false);
+				GSnd->SetInactive(SoundRenderer::INACTIVE_Active);
 			}
 			if (!netgame
 #ifdef _DEBUG
@@ -1783,7 +1783,9 @@ void S_SetSoundPaused (int state)
 			S_PauseSound(false, true);
 			if (GSnd !=  NULL)
 			{
-				GSnd->SetInactive(true);
+				GSnd->SetInactive(gamestate == GS_LEVEL ?
+					SoundRenderer::INACTIVE_Complete :
+					SoundRenderer::INACTIVE_Mute);
 			}
 			if (!netgame
 #ifdef _DEBUG
diff --git a/src/sound/fmodsound.cpp b/src/sound/fmodsound.cpp
index b01754324..5abb67e76 100644
--- a/src/sound/fmodsound.cpp
+++ b/src/sound/fmodsound.cpp
@@ -672,6 +672,7 @@ bool FMODSoundRenderer::Init()
 	PrevEnvironment = DefaultEnvironments[0];
 	DSPClock.AsOne = 0;
 	ChannelGroupTargetUnit = NULL;
+	ChannelGroupTargetUnitOutput = NULL;
 	SfxReverbHooked = false;
 	SfxReverbPlaceholder = NULL;
 	OutputPlugin = 0;
@@ -1155,6 +1156,15 @@ bool FMODSoundRenderer::Init()
 			{
 				ChannelGroupTargetUnit = NULL;
 			}
+			else
+			{
+				FMOD::DSP *dontcare;
+				result = ChannelGroupTargetUnit->getOutput(0, &dontcare, &ChannelGroupTargetUnitOutput);
+				if (result != FMOD_OK)
+				{
+					ChannelGroupTargetUnitOutput = NULL;
+				}
+			}
 		}
 	}
 
@@ -2123,11 +2133,33 @@ void FMODSoundRenderer::SetSfxPaused(bool paused, int slot)
 //
 //==========================================================================
 
-void FMODSoundRenderer::SetInactive(bool inactive)
+void FMODSoundRenderer::SetInactive(SoundRenderer::EInactiveState inactive)
 {
+	float mix;
+	bool active;
+
+	if (inactive == INACTIVE_Active)
+	{
+		mix = 1;
+		active = true;
+	}
+	else if (inactive == INACTIVE_Complete)
+	{
+		mix = 1;
+		active = false;
+	}
+	else // inactive == INACTIVE_Mute
+	{
+		mix = 0;
+		active = true;
+	}
+	if (ChannelGroupTargetUnitOutput != NULL)
+	{
+		ChannelGroupTargetUnitOutput->setMix(mix);
+	}
 	if (ChannelGroupTargetUnit != NULL)
 	{
-		ChannelGroupTargetUnit->setActive(!inactive);
+		ChannelGroupTargetUnit->setActive(active);
 	}
 }
 
diff --git a/src/sound/fmodsound.h b/src/sound/fmodsound.h
index e00b2ed27..99d627e5f 100644
--- a/src/sound/fmodsound.h
+++ b/src/sound/fmodsound.h
@@ -49,7 +49,7 @@ public:
 	void SetSfxPaused (bool paused, int slot);
 
 	// Pauses or resumes *every* channel, including environmental reverb.
-	void SetInactive (bool inactive);
+	void SetInactive (EInactiveState inactive);
 
 	// Updates the position of a sound channel.
 	void UpdateSoundParams3D (SoundListener *listener, FISoundChannel *chan, bool areasound, const FVector3 &pos, const FVector3 &vel);
@@ -107,6 +107,7 @@ private:
 	FMOD::ChannelGroup *MusicGroup;
 	FMOD::DSP *WaterLP, *WaterReverb;
 	FMOD::DSPConnection *SfxConnection;
+	FMOD::DSPConnection *ChannelGroupTargetUnitOutput;
 	FMOD::DSP *ChannelGroupTargetUnit;
 	FMOD::DSP *SfxReverbPlaceholder;
 	bool SfxReverbHooked;
diff --git a/src/sound/i_sound.cpp b/src/sound/i_sound.cpp
index 27c00e93f..0fe68a25c 100644
--- a/src/sound/i_sound.cpp
+++ b/src/sound/i_sound.cpp
@@ -199,7 +199,7 @@ public:
 	}
 
 	// Pauses or resumes *every* channel, including environmental reverb.
-	void SetInactive(bool inactive)
+	void SetInactive(SoundRenderer::EInactiveState inactive)
 	{
 	}
 
diff --git a/src/sound/i_sound.h b/src/sound/i_sound.h
index 660e47166..c905678ad 100644
--- a/src/sound/i_sound.h
+++ b/src/sound/i_sound.h
@@ -126,7 +126,13 @@ public:
 	virtual void SetSfxPaused (bool paused, int slot) = 0;
 
 	// Pauses or resumes *every* channel, including environmental reverb.
-	virtual void SetInactive(bool inactive) = 0;
+	enum EInactiveState
+	{
+		INACTIVE_Active,		// sound is active
+		INACTIVE_Complete,		// sound is completely paused
+		INACTIVE_Mute			// sound is only muted
+	};
+	virtual void SetInactive(EInactiveState inactive) = 0;
 
 	// Updates the volume, separation, and pitch of a sound channel.
 	virtual void UpdateSoundParams3D (SoundListener *listener, FISoundChannel *chan, bool areasound, const FVector3 &pos, const FVector3 &vel) = 0;