diff --git a/games/peasant/graphics_peasantry/ned.png b/games/peasant/graphics_peasantry/ned.png
index c2e579a8..15f86c14 100644
Binary files a/games/peasant/graphics_peasantry/ned.png and b/games/peasant/graphics_peasantry/ned.png differ
diff --git a/games/peasant/graphics_peasantry/ned_tree.png b/games/peasant/graphics_peasantry/ned_tree.png
new file mode 100644
index 00000000..c2e579a8
Binary files /dev/null and b/games/peasant/graphics_peasantry/ned_tree.png differ
diff --git a/games/peasant/peasant4.s b/games/peasant/peasant4.s
index ae51210a..a38b422b 100644
--- a/games/peasant/peasant4.s
+++ b/games/peasant/peasant4.s
@@ -197,6 +197,12 @@ not_kerrek:
 
 	jsr	check_haystack_exit
 
+	;======================
+	; init ned
+	; FIXME: make random
+
+	lda	#64
+	sta	NED_STATUS
 
 
 	;===============================
@@ -224,6 +230,18 @@ game_loop:
 
 	inc	FRAME
 
+	;====================
+	; update ned
+
+	lda	NED_STATUS
+	beq	leave_ned_alone
+	cmp	#129
+	bcs	leave_ned_alone
+
+	inc	NED_STATUS
+
+leave_ned_alone:
+
 	;=====================
 	; check keyboard
 
@@ -237,10 +255,37 @@ game_loop:
 
 	jsr	kerrek_move_and_check_collision
 
+
 	;==========================
-	; check if lighting on fire
+	; draw ned if necessary
 	;==========================
 
+	lda	MAP_LOCATION
+	cmp	#LOCATION_WAVY_TREE
+	bne	not_at_wavy_tree
+
+	lda	NED_STATUS
+	bpl	ned_not_out
+
+	lda	#25
+	sta	CURSOR_X
+	lda	#88
+	sta	CURSOR_Y
+
+	lda	#<ned3_sprite
+	sta	INL
+	lda	#>ned3_sprite
+	sta	INH
+
+	jsr	hgr_draw_sprite
+
+ned_not_out:
+not_at_wavy_tree:
+
+	;==========================================
+	; check if lighting on fire at crooked tree
+	;==========================================
+
 	lda	MAP_LOCATION
 	cmp	#LOCATION_BURN_TREES
 	bne	not_burn_trees
@@ -348,9 +393,9 @@ oops_new_location:
 	jmp	new_location
 
 
-	;************************
+	;========================
 	; exit level
-	;************************
+	;========================
 level_over:
 
 	; note: check for load from savegame if change state
diff --git a/games/peasant/sprites/Makefile b/games/peasant/sprites/Makefile
index a9b81124..e3714a11 100644
--- a/games/peasant/sprites/Makefile
+++ b/games/peasant/sprites/Makefile
@@ -61,6 +61,10 @@ boat_sprites_fish.inc:	boat_sprites.png
 
 ned_sprites.inc:	ned_sprites.png
 	$(HGR_SPRITE) -s -l rock_moved_sprite ned_sprites.png  7   1 27   12 > ned_sprites.inc
+	$(HGR_SPRITE) -s -l ned1_sprite ned_sprites.png  28  110 41 121 >> ned_sprites.inc
+	$(HGR_SPRITE) -s -l ned2_sprite ned_sprites.png  28  128 41 154 >> ned_sprites.inc
+	$(HGR_SPRITE) -s -l ned3_sprite ned_sprites.png  7   157 41 184 >> ned_sprites.inc
+
 
 gary_sprites.inc:	gary_sprites.png
 	$(HGR_SPRITE) -s -l gary_base_sprite gary_sprites.png   21  98 55   124 > gary_sprites.inc
diff --git a/games/peasant/sprites/ned_sprites.png b/games/peasant/sprites/ned_sprites.png
index 5c6fd9c3..030d66e5 100644
Binary files a/games/peasant/sprites/ned_sprites.png and b/games/peasant/sprites/ned_sprites.png differ
diff --git a/games/peasant/zp.inc b/games/peasant/zp.inc
index 5eec55e2..b41f1541 100644
--- a/games/peasant/zp.inc
+++ b/games/peasant/zp.inc
@@ -165,7 +165,9 @@ GAME_STATE_2 = $99
 NED_STATUS	= $9A
 	; 0 = hiding
 	; 1..127 = countdown to appearing
-	; negative = out
+	; 128 = hands on tree
+	; 129 = half out
+	; 130+/negative = out
 
 BUSH_STATUS	= $9B	; status of bush search
 	BUSH_1_SEARCHED = $01