diff --git a/ArduCopter/config.h b/ArduCopter/config.h
index 1805d316c8..76c50c0a53 100644
--- a/ArduCopter/config.h
+++ b/ArduCopter/config.h
@@ -445,6 +445,10 @@
  # define FS_THR_VALUE_DEFAULT             975
 #endif
 
+#ifndef FS_THR_RTL_MIN_DISTANCE
+ # define FS_THR_RTL_MIN_DISTANCE          1500     // the minimum distance from home in which
+#endif
+
 
 #ifndef MINIMUM_THROTTLE
  # define MINIMUM_THROTTLE       130
@@ -453,10 +457,6 @@
  # define MAXIMUM_THROTTLE       1000
 #endif
 
-#ifndef RTL_LOITER_TIME
- # define RTL_LOITER_TIME 5000       // Time (in milliseconds) to loiter above home before begining final descent
-#endif
-
 #ifndef LAND_SPEED
  # define LAND_SPEED    50          // the descent speed for the final stage of landing in cm/s
 #endif
@@ -652,7 +652,11 @@
 #endif
 
 #ifndef RTL_ALT_MAX
- # define RTL_ALT_MAX               8000    // Max height to return to home in cm
+ # define RTL_ALT_MAX               8000    // Max height to return to home in cm (i.e 80m)
+#endif
+
+#ifndef RTL_LOITER_TIME
+ # define RTL_LOITER_TIME           5000    // Time (in milliseconds) to loiter above home before begining final descent
 #endif
 
 
diff --git a/ArduCopter/events.pde b/ArduCopter/events.pde
index 86f0c6bfd2..99226a9513 100644
--- a/ArduCopter/events.pde
+++ b/ArduCopter/events.pde
@@ -18,33 +18,31 @@ static void failsafe_on_event()
             // if throttle is zero disarm motors
             if (g.rc_3.control_in == 0) {
                 init_disarm_motors();
-            }else if(ap.home_is_set == true) {
+            }else if(ap.home_is_set == true && home_distance >= FS_THR_RTL_MIN_DISTANCE) {
                 set_mode(RTL);
             }else{
-                // We have no GPS so we will land
+                // We have no GPS or are very close to home so we will land
                 set_mode(LAND);
             }
             break;
         case AUTO:
             // failsafe_throttle is 1 do RTL, 2 means continue with the mission
             if (g.failsafe_throttle == FS_THR_ENABLED_ALWAYS_RTL) {
-                // To-Do: check distance from home before initiating RTL
-                set_mode(RTL);
+                if(home_distance >= FS_THR_RTL_MIN_DISTANCE) {
+                    set_mode(RTL);
+                }else{
+                    // We are very close to home so we will land
+                    set_mode(LAND);
+                }
             }
             // if failsafe_throttle is 2 (i.e. FS_THR_ENABLED_CONTINUE_MISSION) no need to do anything
             break;
         default:
-            if(ap.home_is_set == true) {
-                // same as above ^
-                // do_rtl sets the altitude to the current altitude by default
-                // To-Do: check distance from home before initiating RTL
+            if(ap.home_is_set == true && home_distance >= FS_THR_RTL_MIN_DISTANCE) {
                 set_mode(RTL);
             }else{
-                // We have no GPS so we will crash land in alt hold mode
-                // the low throttle will bring us down at the maximum descent speed
-                // To-Do: make LAND a throttle mode so it can operate without GPS
-                set_mode(ALT_HOLD);
-                set_new_altitude(0);
+                // We have no GPS or are very close to home so we will land
+                set_mode(LAND);
             }
             break;
     }