diff --git a/src/MissionManager/MissionController.cc b/src/MissionManager/MissionController.cc
index 3920dfe8853a2a6efbf04b73646f87a87aaa8ae7..c43e86ffe9ef2e56fb65173cc6025c6a1ac222e0 100644
--- a/src/MissionManager/MissionController.cc
+++ b/src/MissionManager/MissionController.cc
@@ -327,7 +327,10 @@ VisualMissionItem* MissionController::_insertSimpleMissionItemWorker(QGeoCoordin
 
             if (_findPreviousAltitude(visualItemIndex, &prevAltitude, &prevAltitudeMode)) {
                 newItem->altitude()->setRawValue(prevAltitude);
-                newItem->setAltitudeMode(static_cast<QGroundControlQmlGlobal::AltitudeMode>(prevAltitudeMode));
+                if (globalAltitudeMode() == QGroundControlQmlGlobal::AltitudeModeNone) {
+                    // We are in mixed altitude modes, so copy from previous. Otherwise alt mode will be set from global setting.
+                    newItem->setAltitudeMode(static_cast<QGroundControlQmlGlobal::AltitudeMode>(prevAltitudeMode));
+                }
             }
         }
     }
diff --git a/src/MissionManager/MissionControllerTest.cc b/src/MissionManager/MissionControllerTest.cc
index 857017f60624a77b7a453146920744a5654767af..b0de3e1e4cbf809e18070489ef47b938c3d06905 100644
--- a/src/MissionManager/MissionControllerTest.cc
+++ b/src/MissionManager/MissionControllerTest.cc
@@ -203,3 +203,39 @@ void MissionControllerTest::_testLoadJsonSectionAvailable(void)
 
     }
 }
+
+void MissionControllerTest::_testGlobalAltMode(void)
+{
+    _initForFirmwareType(MAV_AUTOPILOT_PX4);
+
+    struct  _globalAltMode_s {
+        QGroundControlQmlGlobal::AltitudeMode   altMode;
+        MAV_FRAME                               expectedMavFrame;
+    } altModeTestCases[] = {
+        { QGroundControlQmlGlobal::AltitudeModeRelative,        MAV_FRAME_GLOBAL_RELATIVE_ALT },
+        { QGroundControlQmlGlobal::AltitudeModeAbsolute,        MAV_FRAME_GLOBAL },
+        { QGroundControlQmlGlobal::AltitudeModeAboveTerrain,    MAV_FRAME_GLOBAL },
+        { QGroundControlQmlGlobal::AltitudeModeTerrainFrame,    MAV_FRAME_GLOBAL_TERRAIN_ALT },
+    };
+
+    for (const _globalAltMode_s& testCase: altModeTestCases) {
+        _missionController->removeAll();
+        _missionController->setGlobalAltitudeMode(testCase.altMode);
+
+        _missionController->insertTakeoffItem(QGeoCoordinate(0, 0), 1);
+        _missionController->insertSimpleMissionItem(QGeoCoordinate(0, 0), 2);
+        _missionController->insertSimpleMissionItem(QGeoCoordinate(0, 0), 3);
+        _missionController->insertSimpleMissionItem(QGeoCoordinate(0, 0), 4);
+
+        SimpleMissionItem* si = qobject_cast<SimpleMissionItem*>(_missionController->visualItems()->value<VisualMissionItem*>(1));
+        QCOMPARE(si->altitudeMode(), QGroundControlQmlGlobal::AltitudeModeRelative);
+        QCOMPARE(si->missionItem().frame(), MAV_FRAME_GLOBAL_RELATIVE_ALT);
+
+        for (int i=2; i<_missionController->visualItems()->count(); i++) {
+            qDebug() << i;
+            SimpleMissionItem* si = qobject_cast<SimpleMissionItem*>(_missionController->visualItems()->value<VisualMissionItem*>(i));
+            QCOMPARE(si->altitudeMode(), testCase.altMode);
+            QCOMPARE(si->missionItem().frame(), testCase.expectedMavFrame);
+        }
+    }
+}
diff --git a/src/MissionManager/MissionControllerTest.h b/src/MissionManager/MissionControllerTest.h
index c01764bd76f4a415601794776c9332f5477fb795..902f77523537ea65425647fb4707107f3985714f 100644
--- a/src/MissionManager/MissionControllerTest.h
+++ b/src/MissionManager/MissionControllerTest.h
@@ -32,10 +32,11 @@ public:
 private slots:
     void cleanup(void);
 
-    void _testGimbalRecalc(void);
-    void _testLoadJsonSectionAvailable(void);
-    void _testEmptyVehicleAPM(void);
-    void _testEmptyVehiclePX4(void);
+    void _testGimbalRecalc              (void);
+    void _testLoadJsonSectionAvailable  (void);
+    void _testEmptyVehicleAPM           (void);
+    void _testEmptyVehiclePX4           (void);
+    void _testGlobalAltMode             (void);
 
 private:
 #if 0
diff --git a/src/MissionManager/SimpleMissionItem.cc b/src/MissionManager/SimpleMissionItem.cc
index 922109161eb2ef40d9d19045c5032f65cf0267a8..3034dfda9fbdb860a669ee5cb4baf61a993c8f68 100644
--- a/src/MissionManager/SimpleMissionItem.cc
+++ b/src/MissionManager/SimpleMissionItem.cc
@@ -726,14 +726,17 @@ void SimpleMissionItem::_setDefaultsForCommand(void)
     _altitudeMode = QGroundControlQmlGlobal::AltitudeModeRelative;
     emit altitudeModeChanged();
     _amslAltAboveTerrainFact.setRawValue(qQNaN());
-    if (specifiesAltitude() || isStandaloneCoordinate()) {
+    if (specifiesAltitude()) {
         double defaultAlt = qgcApp()->toolbox()->settingsManager()->appSettings()->defaultMissionItemAltitude()->rawValue().toDouble();
         _altitudeFact.setRawValue(defaultAlt);
         _missionItem._param7Fact.setRawValue(defaultAlt);
-        setAltitudeMode(_missionController->globalAltitudeModeDefault());
+        // Note that setAltitudeMode will also set MAV_FRAME correctly through signalling
+        // Takeoff items always use relative alt since that is the highest quality data to base altitude from
+        setAltitudeMode(isTakeoffItem() ? QGroundControlQmlGlobal::AltitudeModeRelative : _missionController->globalAltitudeModeDefault());
     } else {
         _altitudeFact.setRawValue(0);
         _missionItem._param7Fact.setRawValue(0);
+        _missionItem.setFrame(MAV_FRAME_MISSION);
     }
 
     MAV_CMD command = static_cast<MAV_CMD>(this->command());
@@ -759,7 +762,6 @@ void SimpleMissionItem::_setDefaultsForCommand(void)
     }
 
     _missionItem.setAutoContinue(true);
-    _missionItem.setFrame(specifiesAltitude() ? MAV_FRAME_GLOBAL_RELATIVE_ALT : MAV_FRAME_MISSION);
     setRawEdit(false);
 }