diff --git a/src/rendering/hwrenderer/scene/hw_sprites.cpp b/src/rendering/hwrenderer/scene/hw_sprites.cpp
index c11878c11..b98b9b03c 100644
--- a/src/rendering/hwrenderer/scene/hw_sprites.cpp
+++ b/src/rendering/hwrenderer/scene/hw_sprites.cpp
@@ -67,7 +67,8 @@ const float LARGE_VALUE = 1e19f;
 
 EXTERN_CVAR(Bool, r_debug_disable_vis_filter)
 EXTERN_CVAR(Float, transsouls)
-
+EXTERN_CVAR(Float, r_actorspriteshadowalpha)
+EXTERN_CVAR(Float, r_actorspriteshadowfadeheight)
 
 //==========================================================================
 //
@@ -1174,7 +1175,12 @@ void HWSprite::Process(HWDrawInfo *di, AActor* thing, sector_t * sector, area_t
 	{
 		RenderStyle = STYLE_Stencil;
 		ThingColor = MAKEARGB(255, 0, 0, 0);
-		trans *= 0.5f;
+		// fade shadow progressively as the thing moves higher away from the floor
+		if (r_actorspriteshadowfadeheight > 0.0) {
+			trans *= clamp(0.0f, float(r_actorspriteshadowalpha - (thingpos.Z - thing->floorz) * (1.0 / r_actorspriteshadowfadeheight)), float(r_actorspriteshadowalpha));
+		} else {
+			trans *= r_actorspriteshadowalpha;
+		}
 		hw_styleflags = STYLEHW_NoAlphaTest;
 	}
 
diff --git a/src/rendering/r_utility.cpp b/src/rendering/r_utility.cpp
index 1fe4aa1da..1ce0df498 100644
--- a/src/rendering/r_utility.cpp
+++ b/src/rendering/r_utility.cpp
@@ -121,6 +121,20 @@ CUSTOM_CVARD(Float, r_actorspriteshadowdist, 1500.0, CVAR_ARCHIVE | CVAR_GLOBALC
 	else if (self > 8192.f)
 		self = 8192.f;
 }
+CUSTOM_CVARD(Float, r_actorspriteshadowalpha, 0.5, CVAR_ARCHIVE | CVAR_GLOBALCONFIG, "maximum sprite shadow opacity, only effective with hardware renderers (0.0 = fully transparent, 1.0 = opaque)")
+{
+	if (self < 0.f)
+		self = 0.f;
+	else if (self > 1.f)
+		self = 1.f;
+}
+CUSTOM_CVARD(Float, r_actorspriteshadowfadeheight, 0.0, CVAR_ARCHIVE | CVAR_GLOBALCONFIG, "distance over which sprite shadows should fade, only effective with hardware renderers (0 = infinite)")
+{
+	if (self < 0.f)
+		self = 0.f;
+	else if (self > 8192.f)
+		self = 8192.f;
+}
 
 int 			viewwindowx;
 int 			viewwindowy;