diff --git a/ArduSub/GCS_Mavlink.cpp b/ArduSub/GCS_Mavlink.cpp
index 51f146ad45..c0bc3177bd 100644
--- a/ArduSub/GCS_Mavlink.cpp
+++ b/ArduSub/GCS_Mavlink.cpp
@@ -1398,11 +1398,18 @@ void GCS_MAVLINK_Sub::handleMessage(mavlink_message_t* msg)
 
         // send request
         if (!pos_ignore && !vel_ignore && acc_ignore) {
-            sub.guided_set_destination_posvel(pos_vector, vel_vector);
+            if (sub.guided_set_destination_posvel(pos_vector, vel_vector)) {
+                result = MAV_RESULT_ACCEPTED;
+            } else {
+                result = MAV_RESULT_FAILED;
+            }
         } else if (pos_ignore && !vel_ignore && acc_ignore) {
             sub.guided_set_velocity(vel_vector);
+            result = MAV_RESULT_ACCEPTED;
         } else if (!pos_ignore && vel_ignore && acc_ignore) {
-            if (!sub.guided_set_destination(pos_vector)) {
+            if (sub.guided_set_destination(pos_vector)) {
+                result = MAV_RESULT_ACCEPTED;
+            } else {
                 result = MAV_RESULT_FAILED;
             }
         } else {
@@ -1443,7 +1450,7 @@ void GCS_MAVLINK_Sub::handleMessage(mavlink_message_t* msg)
          * bool yaw_rate_ignore = packet.type_mask & MAVLINK_SET_POS_TYPE_MASK_YAW_RATE_IGNORE;
          */
 
-        Vector3f pos_ned;
+        Vector3f pos_neu_cm;  // position (North, East, Up coordinates) in centimeters
 
         if (!pos_ignore) {
             // sanity check location
@@ -1473,15 +1480,22 @@ void GCS_MAVLINK_Sub::handleMessage(mavlink_message_t* msg)
                 loc.flags.terrain_alt = false;
                 break;
             }
-            pos_ned = sub.pv_location_to_vector(loc);
+            pos_neu_cm = sub.pv_location_to_vector(loc);
         }
 
         if (!pos_ignore && !vel_ignore && acc_ignore) {
-            sub.guided_set_destination_posvel(pos_ned, Vector3f(packet.vx * 100.0f, packet.vy * 100.0f, -packet.vz * 100.0f));
+            if (sub.guided_set_destination_posvel(pos_neu_cm, Vector3f(packet.vx * 100.0f, packet.vy * 100.0f, -packet.vz * 100.0f))) {
+                result = MAV_RESULT_ACCEPTED;
+            } else {
+                result = MAV_RESULT_FAILED;
+            }
         } else if (pos_ignore && !vel_ignore && acc_ignore) {
             sub.guided_set_velocity(Vector3f(packet.vx * 100.0f, packet.vy * 100.0f, -packet.vz * 100.0f));
+            result = MAV_RESULT_ACCEPTED;
         } else if (!pos_ignore && vel_ignore && acc_ignore) {
-            if (!sub.guided_set_destination(pos_ned)) {
+            if (sub.guided_set_destination(pos_neu_cm)) {
+                result = MAV_RESULT_ACCEPTED;
+            } else {
                 result = MAV_RESULT_FAILED;
             }
         } else {
diff --git a/ArduSub/Sub.h b/ArduSub/Sub.h
index 5fdce87df7..984da56adb 100644
--- a/ArduSub/Sub.h
+++ b/ArduSub/Sub.h
@@ -578,7 +578,7 @@ private:
     bool guided_set_destination(const Vector3f& destination);
     bool guided_set_destination(const Location_Class& dest_loc);
     void guided_set_velocity(const Vector3f& velocity);
-    void guided_set_destination_posvel(const Vector3f& destination, const Vector3f& velocity);
+    bool guided_set_destination_posvel(const Vector3f& destination, const Vector3f& velocity);
     void guided_set_angle(const Quaternion &q, float climb_rate_cms);
     void guided_run();
     void guided_pos_control_run();
diff --git a/ArduSub/control_guided.cpp b/ArduSub/control_guided.cpp
index 922bc8a783..ad960bed90 100644
--- a/ArduSub/control_guided.cpp
+++ b/ArduSub/control_guided.cpp
@@ -1,7 +1,7 @@
 #include "Sub.h"
 
 /*
- * control_guided.pde - init and run calls for guided flight mode
+ * Init and run calls for guided flight mode
  */
 
 #ifndef GUIDED_LOOK_AT_TARGET_MIN_DISTANCE_CM
@@ -212,18 +212,32 @@ void Sub::guided_set_velocity(const Vector3f& velocity)
 }
 
 // set guided mode posvel target
-void Sub::guided_set_destination_posvel(const Vector3f& destination, const Vector3f& velocity)
+bool Sub::guided_set_destination_posvel(const Vector3f& destination, const Vector3f& velocity)
 {
     // check we are in velocity control mode
     if (guided_mode != Guided_PosVel) {
         guided_posvel_control_start();
     }
 
+#if AC_FENCE == ENABLED
+    // reject destination if outside the fence
+    Location_Class dest_loc(destination);
+    if (!fence.check_destination_within_fence(dest_loc)) {
+        Log_Write_Error(ERROR_SUBSYSTEM_NAVIGATION, ERROR_CODE_DEST_OUTSIDE_FENCE);
+        // failure is propagated to GCS with NAK
+        return false;
+    }
+#endif
+
     posvel_update_time_ms = millis();
     posvel_pos_target_cm = destination;
     posvel_vel_target_cms = velocity;
 
     pos_control.set_pos_target(posvel_pos_target_cm);
+
+    // log target
+    Log_Write_GuidedTarget(guided_mode, destination, velocity);
+    return true;
 }
 
 // set guided mode angle target