diff --git a/code/lab/renderer/lab_renderer.cpp b/code/lab/renderer/lab_renderer.cpp
index eec2c2d1813..df95ad37889 100644
--- a/code/lab/renderer/lab_renderer.cpp
+++ b/code/lab/renderer/lab_renderer.cpp
@@ -387,6 +387,7 @@ void LabRenderer::useBackground(const SCP_string& mission_name) {
 	currentMissionBackground = mission_name;
 
 	stars_pre_level_init(true);
+	Nebula_over_skybox = false;
 	vm_set_identity(&skybox_orientation);
 
 	// (DahBlount) - Remember to load the debris anims
@@ -584,6 +585,10 @@ void LabRenderer::useBackground(const SCP_string& mission_name) {
 				stuff_string(envmap_name, F_NAME, MAX_FILENAME_LEN);
 			}
 
+			if (optional_string("$FS1 Nebula Over Skybox:")) {
+				stuff_boolean(&Nebula_over_skybox);
+			}
+
 			const int size = 512;
 			int gen_flags = (BMP_FLAG_RENDER_TARGET_STATIC | BMP_FLAG_CUBEMAP | BMP_FLAG_RENDER_TARGET_MIPMAP);
 
diff --git a/code/mission/missionparse.cpp b/code/mission/missionparse.cpp
index cccd93941ea..b883c87f553 100644
--- a/code/mission/missionparse.cpp
+++ b/code/mission/missionparse.cpp
@@ -6468,6 +6468,10 @@ void parse_bitmaps(mission *pm)
 		stuff_string(pm->envmap_name, F_NAME, MAX_FILENAME_LEN);
 	}
 
+	if (optional_string("$FS1 Nebula Over Skybox:")) {
+		stuff_boolean(&Nebula_over_skybox);
+	}
+
 	// bypass spurious stuff from e.g. FS1 missions
 	skip_to_start_of_string("#");
 }
@@ -7501,6 +7505,7 @@ void mission_init(mission *pm, bool quick_init)
 	Nebula_bank = (int)((float)(Random::next() & 0x0fff) * 360.0f / 4096.0f);
 	Nebula_heading = (int)((float)(Random::next() & 0x0fff) * 360.0f / 4096.0f);
 	Nebula_index = -1;
+	Nebula_over_skybox = false;
 	Mission_palette = 1;
 }
 
diff --git a/code/missioneditor/missionsave.cpp b/code/missioneditor/missionsave.cpp
index 6f57eba347f..68ef82518de 100644
--- a/code/missioneditor/missionsave.cpp
+++ b/code/missioneditor/missionsave.cpp
@@ -1089,6 +1089,17 @@ int Fred_mission_save::save_bitmaps()
 		bypass_comment(";;FSO 3.6.9;; $Environment Map:");
 	}
 
+	if (Nebula_over_skybox && Nebula_index >= 0 && !The_mission.flags[Mission::Mission_Flags::Fullneb]) {
+		fso_comment_push(";;FSO 26.1.0;;");
+		if (optional_string_fred("$FS1 Nebula Over Skybox:")) {
+			parse_comments(2);
+			fout(" YES");
+		} else {
+			fout_version("\n\n$FS1 Nebula Over Skybox: YES");
+		}
+		fso_comment_pop();
+	}
+
 	fso_comment_pop(true);
 
 	return err;
diff --git a/code/mod_table/mod_table.cpp b/code/mod_table/mod_table.cpp
index 2ca750af08c..73ed0b83a7c 100644
--- a/code/mod_table/mod_table.cpp
+++ b/code/mod_table/mod_table.cpp
@@ -29,6 +29,7 @@
 int Directive_wait_time;
 bool True_loop_argument_sexps;
 bool Skybox_internal_depth_consistency;
+bool Fs1_nebula_backgrounds;
 bool Fixed_turret_collisions;
 bool Fixed_missile_detonation;
 bool Damage_impacted_subsystem_first;
@@ -979,6 +980,10 @@ void parse_mod_table(const char *filename)
 				stuff_boolean(&Render_insignias_as_decals);
 			}
 
+			if (optional_string("$FS1 nebula backgrounds:")) {
+				stuff_boolean(&Fs1_nebula_backgrounds);
+			}
+
 			optional_string("#NETWORK SETTINGS");
 
 			if (optional_string("$FS2NetD port:")) {
@@ -1677,6 +1682,9 @@ static void mod_table_log_settings()
 	else
 		mprintf(("Game Settings Table: Skybox submodels will not use internal depth consistency (retail behavior)\n"));
 
+	if (Fs1_nebula_backgrounds)
+		mprintf(("Game Settings Table: FS1 nebula backgrounds will be drawn for missions that name one\n"));
+
 	if (Fixed_turret_collisions)
 		mprintf(("Game Settings Table: Using fixed turret collisions (shooting a turret barrel will always register)\n"));
 	else
@@ -1865,6 +1873,7 @@ void mod_table_reset()
 	Directive_wait_time = 3000;
 	True_loop_argument_sexps = false;
 	Skybox_internal_depth_consistency = false;
+	Fs1_nebula_backgrounds = false;
 	Fixed_turret_collisions = false;
 	Fixed_missile_detonation = false;
 	Damage_impacted_subsystem_first = false;
diff --git a/code/mod_table/mod_table.h b/code/mod_table/mod_table.h
index d502f96098b..2bcc8b3f47b 100644
--- a/code/mod_table/mod_table.h
+++ b/code/mod_table/mod_table.h
@@ -49,6 +49,7 @@ struct splash_screen {
 extern int Directive_wait_time;
 extern bool True_loop_argument_sexps;
 extern bool Skybox_internal_depth_consistency;
+extern bool Fs1_nebula_backgrounds;
 extern bool Fixed_turret_collisions;
 extern bool Fixed_missile_detonation;
 extern bool Damage_impacted_subsystem_first;
diff --git a/code/starfield/nebula.cpp b/code/starfield/nebula.cpp
index c2718799fd8..b4611dda11d 100644
--- a/code/starfield/nebula.cpp
+++ b/code/starfield/nebula.cpp
@@ -9,12 +9,16 @@
 
 
 
+#include "bmpman/bmpman.h"
 #include "cfile/cfile.h"
 #include "debugconsole/console.h"
 #include "math/vecmat.h"
 #include "mission/missionparse.h"
+#include "mod_table/mod_table.h"
 #include "nebula/neb.h"
 #include "graphics/material.h"
+#include "graphics/matrix.h"
+#include "pcxutils/pcxutils.h"
 #include "render/3d.h"
 #include "starfield/nebula.h"
 
@@ -32,15 +36,28 @@ static int num_tris = 0;
 static int tri[MAX_TRIS][3];
 
 static int Nebula_loaded = 0;
+
+constexpr int NEBULA_RAMP_SIZE = 20;
+
+static int Nebula_ramp_bitmap = -1;
+static ubyte Nebula_ramp_pixels[NEBULA_RAMP_SIZE * 4];
+// too large for the stack; the immediate primitive path copies it at call time
+static vertex Nebula_tri_verts[MAX_TRIS * 3];
 static angles Nebula_pbh;
 static matrix Nebula_orient;
 
 int Nebula_pitch;
 int Nebula_bank;
 int Nebula_heading;
+bool Nebula_over_skybox = false;
 
 void nebula_close()
 {
+	if (Nebula_ramp_bitmap >= 0) {
+		bm_release(Nebula_ramp_bitmap);
+		Nebula_ramp_bitmap = -1;
+	}
+
 	if (!Nebula_loaded) return;
 
 	Nebula_loaded = 0;
@@ -82,6 +99,7 @@ int load_nebula_sub(const char *filename)
 	fp = cfopen(filename, "rb");
 
 	if ( !fp )	{
+		mprintf(( "Nebula file %s could not be opened.\n", filename ));
 		return 0;
 	}
 
@@ -89,6 +107,7 @@ int load_nebula_sub(const char *filename)
 	cfread( id, 4, 1, fp );	
 	if ( strncmp( id, NEBULA_FILE_ID, 4) != 0)	{
 		mprintf(( "Not a valid nebula file.\n" ));
+		cfclose(fp);
 		return 0;
 	} 
 	cfread( &version, sizeof(int), 1, fp );
@@ -96,6 +115,7 @@ int load_nebula_sub(const char *filename)
 
 	if ( major != NEBULA_MAJOR_VERSION )	{
 		mprintf(( "An out of date nebula file.\n" ));
+		cfclose(fp);
 		return 0;
 	}	
 
@@ -105,8 +125,10 @@ int load_nebula_sub(const char *filename)
 	Assert( num_tris < MAX_TRIS );
 
 	// Cyborg - can't load nonsense.
-	if (num_pts <= 0 || num_pts >= MAX_POINTS || num_tris <= 0 || num_tris >= MAX_TRIS)
+	if (num_pts <= 0 || num_pts >= MAX_POINTS || num_tris <= 0 || num_tris >= MAX_TRIS) {
+		cfclose(fp);
 		return 0;
+	}
 
 	int i;
 	for (i=0; i<num_pts; i++ )	{
@@ -117,7 +139,8 @@ int load_nebula_sub(const char *filename)
 		cfread( &yf, sizeof(float), 1, fp );
 		cfread( &l, sizeof(int), 1, fp );
 		project_2d_onto_sphere( &nebula_vecs[i], 1.0f - xf, yf );
-		vm_vec_scale( &nebula_vecs[i], 10.0f );
+		// same radius as the background bitmap sphere, so a mod's $Min draw distance: cannot clip it
+		vm_vec_scale( &nebula_vecs[i], 1000.0f );
 		nebula_verts[i].b = ubyte((l*255)/31);
 
 		// throw in some randomness to the nebula vertices depth
@@ -127,6 +150,13 @@ int load_nebula_sub(const char *filename)
 		cfread( &tri[i][0], sizeof(int), 1, fp );
 		cfread( &tri[i][1], sizeof(int), 1, fp );
 		cfread( &tri[i][2], sizeof(int), 1, fp );
+		for (int k = 0; k < 3; k++) {
+			if (tri[i][k] < 0 || tri[i][k] >= num_pts) {
+				mprintf(( "Nebula file %s has a triangle index out of range.\n", filename ));
+				cfclose(fp);
+				return 0;
+			}
+		}
 	}
 
 	cfclose(fp);
@@ -134,6 +164,34 @@ int load_nebula_sub(const char *filename)
 	return 1;
 }
 
+// one-row texture of the FS1 palette's first NEBULA_RAMP_SIZE entries, so the GPU interpolates in ramp
+// space rather than in RGB between vertex colours
+static void nebula_load_ramp(int nebula_index, int palette_index)
+{
+	if (Nebula_ramp_bitmap >= 0) {
+		bm_release(Nebula_ramp_bitmap);
+		Nebula_ramp_bitmap = -1;
+	}
+
+	char filename[MAX_FILENAME_LEN];
+	sprintf_safe(filename, "gamepalette%d-%02d", nebula_index + 1, palette_index + 1);
+
+	ubyte palette[768] = {};
+	if (pcx_read_header(filename, nullptr, nullptr, nullptr, nullptr, palette) != PCX_ERROR_NONE) {
+		mprintf(( "FS1 nebula palette %s.pcx could not be read; the nebula will not be drawn.\n", filename ));
+		return;
+	}
+
+	for (int i = 0; i < NEBULA_RAMP_SIZE; i++) {
+		Nebula_ramp_pixels[i * 4 + 0] = palette[i * 3 + 2];
+		Nebula_ramp_pixels[i * 4 + 1] = palette[i * 3 + 1];
+		Nebula_ramp_pixels[i * 4 + 2] = palette[i * 3 + 0];
+		Nebula_ramp_pixels[i * 4 + 3] = 255;
+	}
+
+	Nebula_ramp_bitmap = bm_create(32, NEBULA_RAMP_SIZE, 1, Nebula_ramp_pixels, 0);
+}
+
 void nebula_init( int index, int pitch, int bank, int heading )
 {
 	angles a;
@@ -143,6 +201,10 @@ void nebula_init( int index, int pitch, int bank, int heading )
 	a.h = fl_radians(heading);
 
 	nebula_init(index < 0 ? nullptr : Nebula_filenames[index], &a);
+
+	if (index >= 0 && Nebula_loaded && Fs1_nebula_backgrounds) {
+		nebula_load_ramp(index, Mission_palette);
+	}
 }
 
 void nebula_init( const char *filename, angles * pbh )
@@ -167,6 +229,43 @@ void nebula_init( const char *filename, angles * pbh )
 	}
 }
 
+void nebula_render(bool over_skybox)
+{
+	if (!Fs1_nebula_backgrounds || !Nebula_loaded || Nebula_ramp_bitmap < 0) {
+		return;
+	}
+	if (!Detail.planets_suns) {
+		return;
+	}
+
+	// g3_rotate_faraway_vertex would give eye-space points, which this primitive path would transform again
+	gr_start_instance_matrix(&Eye_position, &Nebula_orient);
+
+	for (int i = 0; i < num_pts; i++) {
+		nebula_verts[i].world = nebula_vecs[i];
+		// map the brightness onto texel centres so the extremes land on the first and last ramp colours
+		nebula_verts[i].texture_position.u =
+			(0.5f + (NEBULA_RAMP_SIZE - 1) * (nebula_verts[i].b / 255.0f)) / NEBULA_RAMP_SIZE;
+		nebula_verts[i].texture_position.v = 0.5f;
+	}
+
+	for (int i = 0; i < num_tris; i++) {
+		Nebula_tri_verts[i * 3 + 0] = nebula_verts[tri[i][0]];
+		Nebula_tri_verts[i * 3 + 1] = nebula_verts[tri[i][1]];
+		Nebula_tri_verts[i * 3 + 2] = nebula_verts[tri[i][2]];
+	}
+
+	material mat;
+	material_set_unlit(&mat, Nebula_ramp_bitmap, 1.0f, true, false);
+	if (over_skybox) {
+		// the ramp's dark end is black, so adding leaves the skybox and its stars where the nebula is faint
+		mat.set_blend_mode(ALPHA_BLEND_ADDITIVE);
+	}
+	g3_render_primitives_textured(&mat, Nebula_tri_verts, num_tris * 3, PRIM_TYPE_TRIS, false);
+
+	gr_end_instance_matrix();
+}
+
 DCF(nebula,"Loads a different nebula")
 {
 	SCP_string filename;
diff --git a/code/starfield/nebula.h b/code/starfield/nebula.h
index 2d6f86add9d..31daa360398 100644
--- a/code/starfield/nebula.h
+++ b/code/starfield/nebula.h
@@ -24,5 +24,8 @@ struct angles;
 void nebula_init( int index, int pitch, int bank, int heading );
 void nebula_init( const char *filename, angles *pbh = /*NULL*/ 0 );
 void nebula_close();
+void nebula_render(bool over_skybox);
+
+extern bool Nebula_over_skybox;
 
 #endif	//_NEBULA_H
diff --git a/code/starfield/starfield.cpp b/code/starfield/starfield.cpp
index a90ede83880..e110bdc835d 100644
--- a/code/starfield/starfield.cpp
+++ b/code/starfield/starfield.cpp
@@ -1928,7 +1928,7 @@ void stars_draw_motion_debris()
 		refresh_motion_debris = false;
 }
 
-void stars_draw(int show_stars, int show_suns, int  /*show_nebulas*/, int show_subspace, int env, bool in_mission)
+void stars_draw(int show_stars, int show_suns, int show_nebulas, int show_subspace, int env, bool in_mission)
 {
 	GR_DEBUG_SCOPE("Draw Stars");
 	TRACE_SCOPE(tracing::DrawStars);
@@ -1966,6 +1966,10 @@ void stars_draw(int show_stars, int show_suns, int  /*show_nebulas*/, int show_s
 		stars_draw_background();
 	}
 
+	if ( show_nebulas && (Nmodel_num < 0 || Nebula_over_skybox) && (Game_detail_flags & DETAIL_FLAG_NEBULAS) && !(The_mission.flags[Mission::Mission_Flags::Fullneb]) ) {
+		nebula_render(Nmodel_num >= 0);
+	}
+
 	if ( !env && show_stars && (Nmodel_num < 0) && (Game_detail_flags & DETAIL_FLAG_STARS) && !(The_mission.flags[Mission::Mission_Flags::Fullneb]) && (supernova_stage() < SUPERNOVA_STAGE::TOOLTIME) ) {
 		stars_draw_stars();
 	}
diff --git a/fred2/bgbitmapdlg.cpp b/fred2/bgbitmapdlg.cpp
index 74e34e88bb1..a7b68f6d13b 100644
--- a/fred2/bgbitmapdlg.cpp
+++ b/fred2/bgbitmapdlg.cpp
@@ -50,6 +50,7 @@ bg_bitmap_dlg::bg_bitmap_dlg(CWnd* pParent) : CDialog(bg_bitmap_dlg::IDD, pParen
 	m_pitch = 0;
 	m_neb2_texture = 0;
 	m_subspace = FALSE;
+	m_nebula_over_skybox = FALSE;
 	m_fullneb = FALSE;
 	m_fog_color_override = FALSE;
 	m_fullneb_background_bitmaps = FALSE;
@@ -101,6 +102,7 @@ void bg_bitmap_dlg::DoDataExchange(CDataExchange* pDX)
 	DDX_Control(pDX, IDC_SLIDER1, m_slider);
 	DDX_CBIndex(pDX, IDC_NEB2_TEXTURE, m_neb2_texture);
 	DDX_Check(pDX, IDC_SUBSPACE, m_subspace);
+	DDX_Check(pDX, IDC_NEB_OVER_SKYBOX, m_nebula_over_skybox);
 	DDX_Check(pDX, IDC_FULLNEB, m_fullneb);
 	DDX_Check(pDX, IDC_NEB2_PALETTE_OVERRIDE, m_fog_color_override);
 	DDX_Check(pDX, IDC_NEB2_BACKGROUND_BITMAPS, m_fullneb_background_bitmaps);
@@ -339,8 +341,10 @@ void bg_bitmap_dlg::create()
 		m_nebula_index = Nebula_index + 1;		
 	
 		m_nebula_color = Mission_palette;
+		m_nebula_over_skybox = Nebula_over_skybox ? 1 : 0;
 		if (Nebula_index < 0){
 			GetDlgItem(IDC_NEBCOLOR)->EnableWindow(FALSE);
+			GetDlgItem(IDC_NEB_OVER_SKYBOX)->EnableWindow(FALSE);
 		}
 
 		m_pitch = Nebula_pitch;
@@ -506,6 +510,7 @@ void bg_bitmap_dlg::OnClose()
 	Nebula_pitch = m_pitch;
 	Nebula_bank = m_bank;
 	Nebula_heading = m_heading;
+	Nebula_over_skybox = m_nebula_over_skybox != 0;
 	nebula_init(Nebula_index, m_pitch, m_bank, m_heading);
 
     The_mission.flags.set(Mission::Mission_Flags::Subspace, m_subspace != 0);
@@ -601,6 +606,7 @@ void bg_bitmap_dlg::OnSelchangeNebcolor()
 
 	UpdateData(TRUE);
 	Mission_palette = m_nebula_color;
+	nebula_init(Nebula_index, m_pitch, m_bank, m_heading);
 	
 	Update_window = 1;
 }
@@ -615,6 +621,7 @@ void bg_bitmap_dlg::OnSelchangeNebpattern()
 	Nebula_index = m_nebula_index - 1;			
 
 	GetDlgItem(IDC_NEBCOLOR)->EnableWindow(m_nebula_index ? TRUE : FALSE);
+	GetDlgItem(IDC_NEB_OVER_SKYBOX)->EnableWindow(m_nebula_index ? TRUE : FALSE);
 	nebula_init(Nebula_index, m_pitch, m_bank, m_heading);
 
 	Update_window = 1;
@@ -678,6 +685,7 @@ void bg_bitmap_dlg::OnFullNeb()
 		// disable non-fullneb controls
 		GetDlgItem(IDC_NEBPATTERN)->EnableWindow(FALSE);
 		GetDlgItem(IDC_NEBCOLOR)->EnableWindow(FALSE);
+		GetDlgItem(IDC_NEB_OVER_SKYBOX)->EnableWindow(FALSE);
 		GetDlgItem(IDC_PITCH)->EnableWindow(FALSE);
 		GetDlgItem(IDC_BANK)->EnableWindow(FALSE);
 		GetDlgItem(IDC_HEADING)->EnableWindow(FALSE);
@@ -685,6 +693,7 @@ void bg_bitmap_dlg::OnFullNeb()
 		// enable all non-fullneb controls
 		GetDlgItem(IDC_NEBPATTERN)->EnableWindow(TRUE);
 		GetDlgItem(IDC_NEBCOLOR)->EnableWindow(TRUE);
+		GetDlgItem(IDC_NEB_OVER_SKYBOX)->EnableWindow(TRUE);
 		GetDlgItem(IDC_PITCH)->EnableWindow(TRUE);
 		GetDlgItem(IDC_BANK)->EnableWindow(TRUE);
 		GetDlgItem(IDC_HEADING)->EnableWindow(TRUE);		
diff --git a/fred2/bgbitmapdlg.h b/fred2/bgbitmapdlg.h
index 96c8d61b8f7..72d0a55ed24 100644
--- a/fred2/bgbitmapdlg.h
+++ b/fred2/bgbitmapdlg.h
@@ -56,6 +56,7 @@ class bg_bitmap_dlg : public CDialog
 	CSliderCtrl			m_slider;
 	int		m_neb2_texture;
 	BOOL		m_subspace;
+	BOOL		m_nebula_over_skybox;
 	BOOL		m_fullneb;
 	BOOL		m_fog_color_override;
 	BOOL		m_fullneb_background_bitmaps;
diff --git a/fred2/fred.rc b/fred2/fred.rc
index d69261b8939..f6e66a88629 100644
--- a/fred2/fred.rc
+++ b/fred2/fred.rc
@@ -1813,6 +1813,7 @@ BEGIN
     CONTROL         "Toggle ship trails",IDC_NEB2_TOGGLE_TRAILS,"Button",BS_AUTOCHECKBOX | WS_TABSTOP,13,250,65,10
     COMBOBOX        IDC_NEBPATTERN,42,405,61,108,CBS_DROPDOWNLIST | WS_VSCROLL | WS_TABSTOP
     COMBOBOX        IDC_NEBCOLOR,42,421,61,108,CBS_DROPDOWNLIST | WS_VSCROLL | WS_TABSTOP
+    CONTROL         "Draw over skybox",IDC_NEB_OVER_SKYBOX,"Button",BS_AUTOCHECKBOX | WS_TABSTOP,14,437,90,10
     EDITTEXT        IDC_PITCH,166,388,40,14,ES_AUTOHSCROLL | ES_NUMBER
     EDITTEXT        IDC_BANK,166,405,40,14,ES_AUTOHSCROLL | ES_NUMBER
     EDITTEXT        IDC_HEADING,166,422,40,14,ES_AUTOHSCROLL | ES_NUMBER
diff --git a/fred2/resource.h b/fred2/resource.h
index f03b894bf21..ff8aa446e5a 100644
--- a/fred2/resource.h
+++ b/fred2/resource.h
@@ -563,6 +563,7 @@
 #define IDC_SET_FROM_SHIP_CLASS         1203
 #define IDC_CURRENT_CONTAINER_NAME      1203
 #define IDC_NEBCOLOR                    1204
+#define IDC_NEB_OVER_SKYBOX             1747
 #define IDC_SUBSTITUTE_EVENT_MUSIC      1205
 #define IDC_OPEN_CUSTOM_DATA            1206
 #define IDC_AI_PROFILE                  1207
@@ -1638,7 +1639,7 @@
 #ifndef APSTUDIO_READONLY_SYMBOLS
 #define _APS_3D_CONTROLS                     1
 #define _APS_NEXT_RESOURCE_VALUE        340
-#define _APS_NEXT_CONTROL_VALUE         1747
+#define _APS_NEXT_CONTROL_VALUE         1748
 #define _APS_NEXT_COMMAND_VALUE         33124
 #define _APS_NEXT_SYMED_VALUE           105
 #endif
diff --git a/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.cpp b/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.cpp
index 5c1e47c175f..783e1c8f309 100644
--- a/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.cpp
+++ b/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.cpp
@@ -1028,6 +1028,7 @@ void BackgroundEditorDialogModel::setOldNebulaPattern(const SCP_string& name)
 	}
 
 	modify(Nebula_index, newIndex);
+	nebula_init(Nebula_index, Nebula_pitch, Nebula_bank, Nebula_heading);
 }
 
 SCP_string BackgroundEditorDialogModel::getOldNebulaColorName()
@@ -1045,12 +1046,23 @@ void BackgroundEditorDialogModel::setOldNebulaColorName(const SCP_string& name)
 	for (int i = 0; i < NUM_NEBULA_COLORS; ++i) {
 		if (!stricmp(Nebula_colors[i], name.c_str())) {
 			modify(Mission_palette, i);
+			nebula_init(Nebula_index, Nebula_pitch, Nebula_bank, Nebula_heading);
 			return;
 		}
 	}
 	// name not found: ignore
 }
 
+bool BackgroundEditorDialogModel::getOldNebulaOverSkybox()
+{
+	return Nebula_over_skybox;
+}
+
+void BackgroundEditorDialogModel::setOldNebulaOverSkybox(bool over)
+{
+	modify(Nebula_over_skybox, over);
+}
+
 int BackgroundEditorDialogModel::getOldNebulaPitch()
 {
 	return Nebula_pitch;
@@ -1062,6 +1074,7 @@ void BackgroundEditorDialogModel::setOldNebulaPitch(int deg)
 	if (Nebula_pitch != deg) {
 		Nebula_pitch = deg;
 		modify(Nebula_pitch, deg);
+		nebula_init(Nebula_index, Nebula_pitch, Nebula_bank, Nebula_heading);
 	}
 }
 
@@ -1076,6 +1089,7 @@ void BackgroundEditorDialogModel::setOldNebulaBank(int deg)
 	if (Nebula_bank != deg) {
 		Nebula_bank = deg;
 		modify(Nebula_bank, deg);
+		nebula_init(Nebula_index, Nebula_pitch, Nebula_bank, Nebula_heading);
 	}
 }
 
@@ -1090,6 +1104,7 @@ void BackgroundEditorDialogModel::setOldNebulaHeading(int deg)
 	if (Nebula_heading != deg) {
 		Nebula_heading = deg;
 		modify(Nebula_heading, deg);
+		nebula_init(Nebula_index, Nebula_pitch, Nebula_bank, Nebula_heading);
 	}
 }
 
diff --git a/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.h b/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.h
index 36118b3aa8d..d7a6f595d13 100644
--- a/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.h
+++ b/qtfred/src/mission/dialogs/BackgroundEditorDialogModel.h
@@ -125,6 +125,8 @@ class BackgroundEditorDialogModel : public AbstractDialogModel {
 	static SCP_vector<SCP_string> getOldNebulaColorOptions();
 	static SCP_string getOldNebulaColorName();
 	void setOldNebulaColorName(const SCP_string& name);
+	static bool getOldNebulaOverSkybox();
+	void setOldNebulaOverSkybox(bool over);
 	static SCP_string getOldNebulaPattern();
 	void setOldNebulaPattern(const SCP_string& name);
 	static int getOldNebulaPitch();
diff --git a/qtfred/src/ui/dialogs/BackgroundEditorDialog.cpp b/qtfred/src/ui/dialogs/BackgroundEditorDialog.cpp
index 075274477ed..59e0aabc431 100644
--- a/qtfred/src/ui/dialogs/BackgroundEditorDialog.cpp
+++ b/qtfred/src/ui/dialogs/BackgroundEditorDialog.cpp
@@ -334,12 +334,14 @@ void BackgroundEditorDialog::updateOldNebulaControls()
 
 	ui->oldNebulaPatternCombo->setEnabled(enabled);
 	ui->oldNebulaColorCombo->setEnabled(enabled && old_enabled);
+	ui->oldNebulaOverSkyboxCheck->setEnabled(enabled && old_enabled);
 	ui->oldNebulaPitchSpinBox->setEnabled(enabled && old_enabled);
 	ui->oldNebulaBankSpinBox->setEnabled(enabled && old_enabled);
 	ui->oldNebulaHeadingSpinBox->setEnabled(enabled && old_enabled);
 
 	ui->oldNebulaPatternCombo->setCurrentIndex(ui->oldNebulaPatternCombo->findText(QString::fromStdString(_model->getOldNebulaPattern())));
 	ui->oldNebulaColorCombo->setCurrentIndex(ui->oldNebulaColorCombo->findText(QString::fromStdString(_model->getOldNebulaColorName())));
+	ui->oldNebulaOverSkyboxCheck->setChecked(_model->getOldNebulaOverSkybox());
 	ui->oldNebulaPitchSpinBox->setValue(_model->getOldNebulaPitch());
 	ui->oldNebulaBankSpinBox->setValue(_model->getOldNebulaBank());
 	ui->oldNebulaHeadingSpinBox->setValue(_model->getOldNebulaHeading());
@@ -813,6 +815,11 @@ void BackgroundEditorDialog::on_oldNebulaColorCombo_currentIndexChanged(int inde
 	_model->setOldNebulaColorName(text.toUtf8().constData());
 }
 
+void BackgroundEditorDialog::on_oldNebulaOverSkyboxCheck_toggled(bool checked)
+{
+	_model->setOldNebulaOverSkybox(checked);
+}
+
 void BackgroundEditorDialog::on_oldNebulaPitchSpinBox_valueChanged(int arg1)
 {
 	_model->setOldNebulaPitch(arg1);
diff --git a/qtfred/src/ui/dialogs/BackgroundEditorDialog.h b/qtfred/src/ui/dialogs/BackgroundEditorDialog.h
index 42ea46fb77f..8b44fb9f5ec 100644
--- a/qtfred/src/ui/dialogs/BackgroundEditorDialog.h
+++ b/qtfred/src/ui/dialogs/BackgroundEditorDialog.h
@@ -73,6 +73,7 @@ private slots:
 	// Old Nebula
 	void on_oldNebulaPatternCombo_currentIndexChanged(int index);
 	void on_oldNebulaColorCombo_currentIndexChanged(int index);
+	void on_oldNebulaOverSkyboxCheck_toggled(bool checked);
 	void on_oldNebulaPitchSpinBox_valueChanged(int arg1);
 	void on_oldNebulaBankSpinBox_valueChanged(int arg1);
 	void on_oldNebulaHeadingSpinBox_valueChanged(int arg1);
diff --git a/qtfred/ui/BackgroundEditor.ui b/qtfred/ui/BackgroundEditor.ui
index 779d8ab0311..24d3e842344 100644
--- a/qtfred/ui/BackgroundEditor.ui
+++ b/qtfred/ui/BackgroundEditor.ui
@@ -731,6 +731,16 @@
             <item row="1" column="1">
              <widget class="QComboBox" name="oldNebulaColorCombo"/>
             </item>
+            <item row="2" column="1">
+             <widget class="QCheckBox" name="oldNebulaOverSkyboxCheck">
+              <property name="toolTip">
+               <string>Draw the FS1 nebula over the skybox model with additive blending; without this a skybox hides it</string>
+              </property>
+              <property name="text">
+               <string>Draw over skybox</string>
+              </property>
+             </widget>
+            </item>
            </layout>
           </item>
           <item>
@@ -1190,6 +1200,7 @@
   <tabstop>lightingProfileCombo</tabstop>
   <tabstop>oldNebulaPatternCombo</tabstop>
   <tabstop>oldNebulaColorCombo</tabstop>
+  <tabstop>oldNebulaOverSkyboxCheck</tabstop>
   <tabstop>oldNebulaPitchSpinBox</tabstop>
   <tabstop>oldNebulaBankSpinBox</tabstop>
   <tabstop>oldNebulaHeadingSpinBox</tabstop>