diff --git a/README.md b/README.md
index 803b775..9444577 100644
--- a/README.md
+++ b/README.md
@@ -36,14 +36,6 @@ The module supports going back and forth in the combat rounds, as well as going
 - An image to use for the default/idle border
 - An image to use for the took turn/played/inactive border
 
-### Limitations
-
-There are currently one minor issue that might be fixed :
-1. The token borders will be incorrect when switching between different encounters in the same scene
-   - Producing a combat event or switching away and back to the scene will fix it.
-   - It doesn't appear that there is an event on combat switch that could be hooked into, which makes fixing the
-     issue uncertain.
-
 ## Token UI adjustments
 
 Given that we add a border *on* the tokens, it conflicts with the base attribute bars which are drawn over the token's
diff --git a/scripts/token_combat_border.mjs b/scripts/token_combat_border.mjs
index 9ee4a07..22235a3 100644
--- a/scripts/token_combat_border.mjs
+++ b/scripts/token_combat_border.mjs
@@ -199,7 +199,7 @@ function token_combat_visibility_remote_update(scene_id, token_id, round) {
 /**
  * Called by turn and round hooks, so the borders can be updated when going backwards as well as forwards.
  * @param {Combat} combat The combat in which the token is active
- * @param {{round: number, turn: number}} data The turn data for this update
+ * @param {{round: number}} data The turn data for this update
   */
 function combat_hook_update_token_borders(combat, data) {
     // Turns is the array of *tokens having turns in this encounter*.
@@ -239,6 +239,31 @@ function combat_border_main() {
         Hooks.on("combatTurn", combat_hook_update_token_borders);
         Hooks.on("combatRound", combat_hook_update_token_borders);
 
+        // Hook on the combat document update directly to handle active combat switches.
+        Hooks.on("updateCombat", (combat, changed) => {
+            // We only care about switching active combats
+            if (!("active" in changed)) {
+                return;
+            }
+
+            /*
+             * The *previous* active combat is switched to inactive *first*, so we can
+             * just revert all borders to the default state.
+             * When the new combat becomes active, we can just check as if it were a
+             * regular combat update.
+             * This makes sure to handle tokens which were in the previous combat, but not
+             * in the new one.
+             */
+            if (!changed.active) {
+                for (let combatant of combat.combatants) {
+                    socket.executeForEveryone(SocketMessages.SetBorder,
+                        combatant.sceneId, combatant.tokenId, false).then();
+                }
+            } else {
+                combat_hook_update_token_borders(combat, {round: combat.round})
+            }
+        })
+
         // No Foundry hook on end of combat, so use Fabula Ultima's.
         Hooks.on(FUHooks.COMBAT_EVENT, (combat_event) => {
             if (combat_event.type === FU.combatEvent.endOfCombat) {