diff --git a/common/script/index.js b/common/script/index.js
index 2246bc259a..8c388e8d02 100644
--- a/common/script/index.js
+++ b/common/script/index.js
@@ -2271,41 +2271,56 @@ api.wrap = function(user, main) {
         }
       })()]++;
     },
-    updateStats: function(stats, req, analytics) {
+    updateStats (stats, req, analytics) {
+      let allocatedStatPoints;
+      let totalStatPoints;
+      let experienceToNextLevel;
+
       if (stats.hp <= 0) {
-        return user.stats.hp = 0;
+        user.stats.hp = 0;
+        return user.stats.hp;
       }
+
       user.stats.hp = stats.hp;
       user.stats.gp = stats.gp >= 0 ? stats.gp : 0;
 
-      var experienceToNextLevel = api.tnl(user.stats.lvl);
+      experienceToNextLevel = api.tnl(user.stats.lvl);
 
       if (stats.exp >= experienceToNextLevel) {
         user.stats.exp = stats.exp;
+
         while (stats.exp >= experienceToNextLevel) {
           stats.exp -= experienceToNextLevel;
           user.stats.lvl++;
-          experienceToNextLevel = api.tnl(user.stats.lvl);
-          user.stats.hp = 50;
-          var userTotalStatPoints = user.stats.str + user.stats.int + user.stats.con + user.stats.per;
 
-          if (userTotalStatPoints >= MAX_STAT_POINTS) {
-            continue;
+          experienceToNextLevel = api.tnl(user.stats.lvl);
+          user.stats.hp = MAX_HEALTH;
+          allocatedStatPoints = user.stats.str + user.stats.int + user.stats.con + user.stats.per;
+          totalStatPoints = allocatedStatPoints + user.stats.points;
+
+          if (totalStatPoints >= MAX_STAT_POINTS) {
+            continue; // eslint-disable-line no-continue
           }
           if (user.preferences.automaticAllocation) {
             user.fns.autoAllocate();
           } else {
-            user.stats.points = user.stats.lvl - userTotalStatPoints;
+            user.stats.points = user.stats.lvl - allocatedStatPoints;
+            totalStatPoints = user.stats.points + allocatedStatPoints;
+
+            if (totalStatPoints > MAX_STAT_POINTS) {
+              user.stats.points = MAX_STAT_POINTS - allocatedStatPoints;
+            }
+
             if (user.stats.points < 0) {
               user.stats.points = 0;
             }
           }
         }
       }
+
       user.stats.exp = stats.exp;
-      if (user.flags == null) {
-        user.flags = {};
-      }
+      user.flags = user.flags || {};
+
       if (!user.flags.customizationsNotification && (user.stats.exp > 5 || user.stats.lvl > 1)) {
         user.flags.customizationsNotification = true;
       }
diff --git a/test/common/user.fns.updateStats.test.js b/test/common/user.fns.updateStats.test.js
index 0e41812cb3..fbad57e531 100644
--- a/test/common/user.fns.updateStats.test.js
+++ b/test/common/user.fns.updateStats.test.js
@@ -9,7 +9,7 @@ describe('user.fns.updateStats', () => {
     user = generateUser({});
   });
 
-  context('no hp', () => {
+  context('No Hp', () => {
     it('returns 0 if user\'s hp is 0', () => {
       let stats = {
         hp: 0,
@@ -38,7 +38,19 @@ describe('user.fns.updateStats', () => {
   });
 
   context('Stat Allocation', () => {
-    it('Adds an attibute point when user\'s stat points are less than max level', () => {
+    it('adds only attribute points up to user\'s level', () => {
+      let stats = {
+        exp: 261,
+      };
+
+      user.stats.lvl = 10;
+
+      user.fns.updateStats(stats);
+
+      expect(user.stats.points).to.eql(11);
+    });
+
+    it('adds an attibute point when user\'s stat points are less than max level', () => {
       let stats = {
         exp: 3581,
       };
@@ -54,7 +66,7 @@ describe('user.fns.updateStats', () => {
       expect(user.stats.points).to.eql(1);
     });
 
-    it('Does not add an attibute point when user\'s stat points are equal to max level', () => {
+    it('does not add an attibute point when user\'s stat points are equal to max level', () => {
       let stats = {
         exp: 3581,
       };
@@ -69,5 +81,54 @@ describe('user.fns.updateStats', () => {
 
       expect(user.stats.points).to.eql(0);
     });
+
+    it('does not add an attibute point when user\'s stat points + unallocated points are equal to max level', () => {
+      let stats = {
+        exp: 3581,
+      };
+
+      user.stats.lvl = 99;
+      user.stats.str = 25;
+      user.stats.int = 25;
+      user.stats.con = 25;
+      user.stats.per = 15;
+      user.stats.points = 10;
+
+      user.fns.updateStats(stats);
+
+      expect(user.stats.points).to.eql(10);
+    });
+
+    it('only awards stat points up to level 100 if user is missing unallocated stat points and is over level 100', () => {
+      let stats = {
+        exp: 5581,
+      };
+
+      user.stats.lvl = 104;
+      user.stats.str = 25;
+      user.stats.int = 25;
+      user.stats.con = 25;
+      user.stats.per = 15;
+      user.stats.points = 0;
+
+      user.fns.updateStats(stats);
+
+      expect(user.stats.points).to.eql(10);
+    });
+
+    // @TODO: Set up sinon sandbox
+    xit('auto allocates stats if automaticAllocation is turned on', () => {
+      sandbox.stub(user.fns, 'autoAllocate');
+
+      let stats = {
+        exp: 261,
+      };
+
+      user.stats.lvl = 10;
+
+      user.fns.updateStats(stats);
+
+      expect(user.fns.autoAllocate).to.be.calledOnce;
+    });
   });
 });